Libertarian Nat'l Comm., Inc. v. Fed. Election Comm'n, Civil Action No. 16–cv–00121 (BAH)
| Decision Date | 29 June 2018 |
| Docket Number | Civil Action No. 16–cv–00121 (BAH) |
| Parties | LIBERTARIAN NATIONAL COMMITTEE, INC., Petitioner, v. FEDERAL ELECTION COMMISSION, Defendant. |
| Court | U.S. District Court — District of Columbia |
Alan Gura, Gura PLLC, Alexandria, VA, for Petitioner.
Harry Jacobs Summers, Jacob Stephen Siler, Kevin Deeley, Kevin Paul Hancock, Federal Election Commission, Washington, DC, for Defendant.
The petitioner, the Libertarian National Committee, Inc. ("LNC"), has challenged for over seven years the constitutionality of certain contribution limits, under the Federal Election Campaign Act of 1971 ("FECA"), Pub. L. No. 92–225, 86 Stat. 3, as amended (codified at 52 U.S.C. § 30101 et seq. ), that regulate how the LNC may accept and use testamentary bequests. In this latest round of litigation, the LNC raises one facial and two as-applied constitutional challenges to the statutory limits on the amount of money a person may contribute per year "to the political committees established and maintained by a national political party." 52 U.S.C. § 30116(a)(1)(B) ; see also id. § 30116(a)(9) ; Pet.'s Mot. Certify Facts & Questions ("Pet.'s Mot. Cert.") at 1, ECF No. 24. The role of a district court under FECA's statutory scheme is not to resolve constitutional challenges to the statute in the first instance, but merely to certify to the U.S. Court of Appeals those challenges that are meritorious. See 52 U.S.C. § 30110. Now pending before the Court is the LNC's motion to certify for resolution by the U.S. Court of Appeals for the District of Columbia Circuit three questions: whether LNC's First Amendment rights are violated by (1) applying the annual contribution limits to "the bequest of Joseph Shaber," (2) "restricting the purposes for which the [LNC] may spend its money," in general, and (3) "restricting the purposes for which the [LNC] may spend the bequest of Joseph Shaber," in particular. Pet.'s Mot. Cert. at 1.1 The defendant Federal Election Commission ("FEC"), in opposing certification, has moved to dismiss the case, pursuant Rule 12(b)(1) of the Federal Rules of Civil Procedure, for lack of subject matter jurisdiction. Def.'s Mot. Dismiss ("Def.'s Mot.") at 1, ECF No. 25. For the reasons that follow, the LNC's motion is granted in part and denied in part, and the FEC's motion is denied.
The LNC, a nonprofit organization incorporated under District of Columbia law, is the national committee of the Libertarian Party of the United States, which Party has 15,031 active paid sustaining donors, and 137,451 members, in all 50 states and the District of Columbia. App'x, Findings of Fact ¶¶ 1, 3. In addition, forty-eight partisan officeholders and 111 non-partisan officeholders are affiliated with the Libertarian Party nationwide, and over half a million registered voters identify with the Libertarian Party in the states in which voters can register as Libertarians. Id. ¶ 3. The LNC describes its purpose "to field national Presidential tickets, to support its state party affiliates in running candidates for public office, and to conduct other political activities in furtherance of a libertarian public policy agenda in the United States." Id. ¶ 5. This is the second round of litigation brought by the LNC against the FEC regarding the constitutionality of the FECA's limits on monetary contributions to political parties. The details of the prior litigation bear directly on the present dispute and are recounted below, followed by an overview of the underlying facts.
The FECA establishes limits on the amount of money a person may donate per year to national political party committees. See 52 U.S.C. § 30116(a)(1)(B). In Buckley v. Valeo , the Supreme Court rejected a facial challenge to the FECA's "limitation on total contributions by an individual during any calendar year," describing contribution limits as one of the FECA's "primary weapons against the reality or appearance of improper influence stemming from the dependence of candidates on large campaign contributions."
424 U.S. 1, 58, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976). "The contribution ceilings ... serve the basic governmental interest in safeguarding the integrity of the electoral process," Buckley held, "without directly impinging upon the rights of individual citizens and candidates to engage in political debate and discussion." Id. Buckley did not address an as-applied challenge to the contribution limits.
Ten years ago, Raymond Burrington died and left the LNC a residuary bequest of $217,734. See Libertarian Nat'l Comm., Inc. v. FEC ("LNC I "), 930 F.Supp.2d 154, 156 (D.D.C. 2013) (Wilkins, J.). The FEC, consistent with longstanding policy, determined that the FECA's limits on contributions to national political party committees applied to Mr. Burrington's bequest, and thus, that the Burrington estate could contribute to the LNC, in any year, no more than the contribution limit amount. Id. The Burrington estate contributed to the LNC the amount of the annual contribution limit and, in agreement with the LNC, deposited the balance of Mr. Burrington's bequest "into an escrow account, from which the escrow agent ... would distribute annual contributions from the Estate to the LNC in amounts equal to FECA's contribution limit." Id. at 176.
The LNC sued the FEC to "enjoin application of the Party Limit to the contribution, solicitation, acceptance, and spending of decedents' bequests, as said application violates the LNC's First Amendment speech and associational rights and those of its supporters." Id. at 156. The LNC moved to certify to the D.C. Circuit the following question: "Does imposing annual contribution limits against testamentary bequests directed at, or accepted or solicited by political party committees, violate First Amendment speech and associational rights?" Id. The Court declined to certify the LNC's question as overbroad, reasoning that the LNC's challenge "would not apply solely to [the LNC], but would extend to other entities not before this Court." Id. at 165. The Court further explained that under certain circumstances, "it is possible for a bequest to raise valid anti-corruption concerns." Id. at 166. For example, the Court reasoned, "making one's bequest known before death could be treated just as a contribution is." Id. Likewise, "[a] bequest may also help friends or family of the deceased have access to political officeholders and candidates." Id. These examples were supported by witness testimony and other factual evidence of how political "groups treat such bequests." Id. The Court thus recognized that even contributions by the dead may, in certain contexts, raise concerns about actual or apparent corruption justifying a contribution limit's application. Id. at 166–67.2 Furthermore, with the testators being dead and their estates having no First Amendment rights of association or expression, the Court concluded that the LNC could challenge the contribution limits only as to its own First Amendment rights, not as to testators' rights. Id. at 169–171.3 Given these legal conclusions, the Court then narrowed and certified the following question: "Does imposing annual contribution limits against the bequest of Raymond Groves Burrington violate the First Amendment rights of the Libertarian National Committee?" Id. at 171.
The FEC moved, pursuant to Federal Rule of Civil Procedure 59(e), to alter or amend the Court's order, arguing, among other things, that while "as-applied First Amendment challenges seeking categorical exceptions to FECA's contribution limits are proper under the statute," a petitioner may not, as a matter of law, raise "a First Amendment challenge to an individual contribution" without identifying a categorical basis to exempt an entire class of contributions from the contribution limits' application. Libertarian Nat'l Comm., Inc. v. FEC ("LNC II "), 950 F.Supp.2d 58, 60 (D.D.C. 2013) (Wilkins, J.) (emphasis added). In denying the FEC's motion, the Court rejected this argument, concluding that § 30110 requires a district court to certify "individualized as-applied challenges to contribution limits." Id. at 62.
The D.C. Circuit summarily affirmed LNC I 's reformulation and certification of the LNC's question, determining that "[t]he district court properly declined to certify the broad proposed question of law, as framed by appellant." Libertarian Nat'l Comm., Inc. v. FEC , No. 13-5094, 2014 WL 590973, at *1 (D.C. Cir. Feb 7, 2014). The escrow account fully distributed Mr. Burrington's bequest to the LNC before the D.C. Circuit could hear the certified question on the merits, however. See Pet.'s Mem. Supp. Pet.'s Mot. Certify Facts & Questions ("Pet.'s Mem.") at 2, ECF No. 24–1; Def.'s Mem. Supp. Mot. Dismiss & Opp'n Pet.'s Mot. Certify Facts & Questions ("Def.'s Opp'n") at 9, ECF No. 26. Consequently, the D.C. Circuit dismissed the certification as moot and vacated the district court's order. Order, Libertarian Nat'l Comm., Inc. v. FEC ("LNC Dismissal Order"), No. 13–5088, 2014 U.S. App. LEXIS 25108, at *1 (D.C. Cir. Mar. 26, 2014).
Joseph Shaber, a prior donor to the LNC, died in August 2014. Def.'s Opp'n at 9; Factual Findings ¶¶ 109–10, 117. Upon his death, Mr. Shaber bequeathed, with no restrictions, the LNC an amount determined to be $235,575.20 from a living trust. Id. ¶¶ 115, 117, 121. The LNC accepted an amount from the bequest equal to the annual contribution limits, and placed the remainder of the bequest in an escrow account, to distribute the maximum allowable contribution to the LNC on an annual basis. Id. ¶ 128.
The LNC sued to enjoin the FEC from enforcing the contribution limits "either generally or in relation to the Shaber Bequest," and to obtain declaratory relief, costs, attorney's fees, and other "just and appropriate" relief. Compl. at 10–11, ECF No. 1. The FEC moved to dismiss the LNC's...
To continue reading
Request your trial