Lucas v. Curran

• Decision Date: 28 June 1994
• Docket Number: Civ. No. S 93-1660.
• Citation: 856 F. Supp. 260
• Parties: Robert LUCAS, Rev. Craig Ransom, Plaintiffs, v. J. Joseph CURRAN, Jr., Defendant.
• Court: U.S. District Court — District of Maryland

856 F. Supp. 260

Robert LUCAS, Rev. Craig Ransom, Plaintiffs, v. J. Joseph CURRAN, Jr., Defendant.

Civ. No. S 93-1660.

United States District Court, D. Maryland.

June 28, 1994.

COPYRIGHT MATERIAL OMITTED

Noland MacKenzie Canter, III, Canter & Diskin, Washington, DC, Errol Copilevitz, John P. Jennings, Jr., Copilevitz, Bryant, Gray & Jennings, P.C., Kansas City, MO, John P. Flannery, II, Leesburg, VA, for plaintiff.

J. Joseph Curran, Jr., Atty. Gen., MD., Diane Krejsa, Asst. Atty. Gen., Baltimore, MD, Kathryn M. Rowe, Asst. Atty. Gen., Annapolis, MD, for defendant.

MEMORANDUM OPINION

SMALKIN, District Judge.

This case involves a challenge to Maryland's "Door-to-Door Solicitation Act," which imposes certain disclosure requirements on those persons or organizations that solicit amounts, door-to-door, in excess of two hundred dollars within the State of Maryland. See Md. Com. Law II Code Ann. § 14-2601 et seq. (1993). The plaintiffs claim that the statute violates the First and Fourteenth Amendments to the United States Constitution.¹ The defendant disputes the plaintiffs' standing to challenge the statute and the ripeness of their claim. In addition, the defendant counters that the statute regulates door-to-door solicitations, within constitutional limits, to minimize the ability of unscrupulous solicitors to obtain property from Maryland residents through the use of fraud, coercion, undue influence or intimidation. This case is currently before the Court on the parties' cross-motions for summary judgment. The motions have been fully briefed and no hearing is required. See Local Rule 105.6 (D.Md.). As discussed in detail below, the Court finds that the plaintiffs lack standing to challenge the Act. Even if the Court assumes for analytical purposes only that the plaintiffs have adequately established their standing, the statute comports with all constitutional requirements. Accordingly, the defendant's motion for summary judgment will be granted, and the plaintiffs' motion for summary judgment will be denied.

I. FACTUAL BACKGROUND

In 1992, the Maryland General Assembly enacted the Maryland "Door-to-Door Solicitation Act." The Act applies to all direct or indirect requests for money or other valuable consideration and to all pledges for subsequent contributions of money or other valuable consideration that are made by a solicitor in person at a consumer's home or residence that promotes the programs or goals of the organization on whose behalf the solicitation is being made. Md. Com. Law II Code Ann. § 14-2601(c)(1). The statute expressly excludes from its requirements several types of solicitations that are subject to other provisions of state law. For example, the statute excludes solicitations that are subject to the State's consumer debt collection law, Door-to-Door Sales Act, Telephone Solicitation Act, and Insurance Code. See § 14-2601(c)(2)(i)-(iv).

For any solicitation that results in the acceptance or receipt by the solicitor of more than two hundred dollars, the solicitor may not accept or receive any money, check, other negotiable instrument, or other consideration at the time when the solicitation is made. § 14-2603(a)(1), (a)(2). Instead, the solicitor must give the consumer a "pledge form." § 14-2603(c). The pledge form must contain: (1) the name of the solicitor; (2) the name of the charity on whose behalf the solicitation is being made; (3) the general purposes for which the contribution will be used; (4) a disclosure statement as defined in § 14-2601(f); (5) the date and amount of the solicitation; (6) the name and address of the consumer; (7) a statement that the consumer has the right to rescind at any time after the date of the solicitation and that the pledge is not an enforceable contract; and (8) a statement that the consumer has the right to a refund or return of any contribution if made within 30 days after the contribution is made. § 14-2603(c)(1)-(8).

The disclosure statement required in the pledge form must state where a current financial statement of the organization on whose behalf the solicitation is being made is available upon request, the name of the organization on whose behalf the solicitation is being made, and the address and telephone number to which requests for financial statements should be directed. § 14-2601(f). The financial statement must contain the name, address, and telephone number of the organization on whose behalf the solicitation is being made. § 14-2603(d)(1). It must also state the amount of gross revenue that the organization receives from contributions and the percentage of gross revenue used by the organization for its "management and general expenses, fund-raising expenses, and program service expenses during the preceding fiscal year." § 14-2603(d)(2)(i). These percentages may be estimated for newly formed organizations. § 14-2603(d)(2)(ii).

In 1993, the statute was amended to exclude solicitations by or on behalf of "charitable organizations," as defined in Maryland's Business Regulation Article § 6-101, that are either exempt from federal income taxation or "a fraternal organization of fire fighters, rescue or ambulance personnel, or police or other law enforcement organization soliciting for charitable purposes." See Md.Com. Law II Code Ann. § 14-2601(c)(2)(iv). A charitable organization is defined by § 6-101 of the State's Business Regulation Code as a person or organization that holds itself out to be a "benevolent, educational, eleemosynary, humane, patriotic, philanthropic, or religious organization" that solicits or receives contributions from the public. § 6-101(d)(1)(i). Fraternal, rescue, fire fighting, ambulance or law enforcement organizations are expressly included as charitable organizations under this portion of the Code when they are soliciting for "charitable purposes." § 6-101(d)(1)(ii).

The plaintiffs in this case, Reverend Robert Lucas and Craig Ransom, are Maryland residents who claim that the statute unconstitutionally infringes on their First Amendment right to receive information and solicitations in their homes. They claim that the statute is substantially overbroad, arguing that it includes within its reach sufficient constitutionally protected speech to render it invalid on its face. Compl. ¶ 46. In the alternative, the plaintiffs claim that even if the statute is not invalid on its face, it is unconstitutional as applied to them. The plaintiffs next claim that the statute constitutes an unconstitutional prior restraint of their freedom of speech as guaranteed by the First Amendment. Compl. ¶ 40. Finally, the plaintiffs argue that the exclusion of charitable organizations from the requirements of the statute violates the Equal Protection Clause of the Fourteenth Amendment.

The defendant, in addition to challenging the plaintiffs' standing and the ripeness of their claims, argues that the statute is a reasonable regulation promoting the State's substantial interest in protecting its citizens from fraudulent solicitations. The State contends that the statute is narrowly tailored to serve that purpose and, thus, does not violate the plaintiffs' First Amendment rights. Finally, the State asserts that because the statute does not "directly and substantially interfere with the plaintiffs' fundamental First Amendment rights," the exclusion of charitable organizations from the statute's requirements should be subjected to, and withstands, rational basis review under the Equal Protection Clause.

II. SUMMARY JUDGMENT STANDARD

In a motion for summary judgment, the burden is on the moving party to demonstrate by a properly supported motion that there is no genuine dispute as to any material fact and that the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). Because under Rule 56(a) and (b), both plaintiffs and defendants may move for summary judgment, courts are often confronted with cross-motions. In such situations, the court must consider each party's motion individually to determine if that party has satisfied the summary judgment standard. See 10A Charles A. Wright et al., Federal Practice and Procedure, § 2720 (1983).

The moving party has the initial responsibility of informing the court of the basis for the belief that summary judgment is warranted. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); Pulliam Inv. Co., Inc. v. Cameo Properties, 810 F.2d 1282, 1286 (4th Cir. 1987). If the moving party does not bear the ultimate burden of persuasion, it must show that there is an absence of evidence to support the non-moving party's claim. See Celotex, 477 U.S. at 325, 106 S.Ct. at 2554. Once a motion for summary judgment is made and supported, the non-moving party "may not rest upon the mere allegations or denials of that party's pleading, but ... must set forth specific facts showing that there is a genuine issue for trial." Fed.R.Civ.P. 56(e). See also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The non-movant "must do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986). It must show that there is sufficient evidence from which a reasonable factfinder could find in its favor. Id. at 322-23, 106 S.Ct. at 2552-53. This standard "mirrors the standard for a directed verdict under Federal Rule of Civil Procedure 50(a), which is that the trial judge must direct a verdict if, under governing law, there can be but one reasonable conclusion." See Anderson, 477 U.S. at 250, 106 S.Ct. at 2511. In determining the sufficiency of the nonmoving party's evidence, all inferences to be drawn from underlying facts should be resolved in the favor of the nonmoving party, Matsushita, 475 U.S. at 587, 106 S.Ct. at 1356, but only such evidence as would be admissible at...