Campaign Legal Center v. Federal Election Commission

District Court, District of Columbia·Decided June 26, 2025·No. Civil Action No. 2024-2585·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

CAMPAIGN LEGAL CENTER,

Plaintiff, Civil Action No. 24 - 2585 (SLS) v. Judge Sparkle L. Sooknanan

FEDERAL ELECTION COMMISSION,

Defendant.

MEMORANDUM OPINION

This case involves an advertisement related to the 2024 U.S. Senate race in Montana.

Starting in September 2023, about nine months before the primary election, a political action

committee (PAC), Last Best Place PAC, began running this advertisement attacking Tim Sheehy,

then a Republican primary candidate. In February 2024, Campaign Legal Center filed an

administrative complaint with the Federal Election Commission (FEC) claiming that the PAC had

violated the Federal Election Campaign Act (FECA) by failing to report various independent

expenditures connected with the advertisement. Although the FEC’s Office of General Counsel

recommended that the FEC find reason to believe that the PAC had violated FECA, the FEC

ultimately dismissed the administrative complaint. The FEC concluded that the advertisement did

not expressly advocate for the election or defeat of a clearly identified candidate. Campaign Legal

Center now challenges that dismissal, claiming that it was contrary to law in violation of FECA.

While the FEC’s dismissal was based on a permissible interpretation of the statute, the reasons it

provided for its dismissal were too conclusory, rendering the dismissal arbitrary or capricious. The

Court therefore grants summary judgment to Campaign Legal Center. BACKGROUND

A. Statutory and Regulatory Background

“Congress enacted the Federal Election Campaign Act to remedy actual and perceived

corruption in the electoral process.” Campaign Legal Ctr. v. FEC, 106 F.4th 1175, 1178 (D.C. Cir.

2024). With that goal in mind, FECA establishes certain disclosure requirements for individuals

and organizations spending money in connection with federal elections. Id. It requires “[e]ach

treasurer of a political committee” to periodically “file reports of receipts and disbursements” with

the FEC. 52 U.S.C. § 30104(a)(1). These reports sometimes must include reference to what are

called “independent expenditures.” See, e.g., id. § 30104(b)(4)(H)(iii). For example, “any political

committee other than an authorized committee” must disclose all “independent expenditures.” Id.

And these non-authorized committees must also provide the name and address of each person who

receives any disbursement aggregating over two hundred dollars within a certain time frame “in

connection with an independent expenditure by the reporting committee[.]” Id.

§ 30104(b)(6)(B)(iii).

FECA also requires more immediate reporting of large independent expenditures. See id.

§ 30104(g). “A person (including a political committee) that makes or contracts to make

independent expenditures aggregating $10,000 or more at any time up to and including the 20th

day before the date of an election shall file a report describing the expenditures within 48 hours.”

Id. § 30104(g)(2). And after the twentieth day preceding the election up until twenty-four hours

before the election, those who make independent expenditures “aggregating $1,000 or more”

“shall file a report describing the expenditures within 24 hours.” Id. § 30104(g)(1).

FECA defines “independent expenditure” to mean “an expenditure by a person . . .

(A) expressly advocating the election or defeat of a clearly identified candidate; and (B) that is not

made in concert or cooperation with or at the request or suggestion of such candidate, the

2 candidate’s authorized political committee, or their agents, or a political party committee or its

agents.” Id. § 30101(17). And the FEC has promulgated regulations providing two standards by

which a communication might qualify as express advocacy. See 11 C.F.R. § 100.22. First,

a communication expressly advocates if it uses particular phrases, “such as ‘vote for the President,’

‘re-elect your Congressman,’ ‘support the Democratic nominee,’” or the like. Id. § 100.22(a).

Second, a communication expressly advocates if, “[w]hen taken as a whole and with limited

reference to external events, such as proximity to the election,” it “could only be interpreted by a

reasonable person as containing advocacy of the election or defeat of one or more clearly identified

candidate(s) because . . . (1) [t]he electoral portion of the communication is unmistakable,

unambiguous, and suggestive of only one meaning; and (2) [r]easonable minds could not differ as

to whether it encourages actions to elect or defeat one or more clearly identified candidate(s) or

encourages some other kind of action.” Id. § 100.22(b).

“Any person who believes a violation of [FECA] has occurred . . . may file a complaint

with the [FEC].” 52 U.S.C. § 30109(a)(1). If the FEC determines “by an affirmative vote of 4 of

its members” that “it has reason to believe that a person has committed, or is about to commit, a

violation of [FECA], the [FEC] shall, through its chairman or vice chairman, notify the person of

the alleged violation.” Id. § 30109(a)(2). The FEC will find “reason to believe” where a complaint

“credibly alleges” that a significant FECA violation “may have occurred[.]” FEC, Statement of

Policy Regarding Commission Action in Matters at the Initial Stage in the Enforcement Process,

72 Fed. Reg. 12,545, 12,545 (Mar. 16, 2007). And any “party aggrieved” by the FEC’s dismissal

of a complaint may seek judicial review in the U.S. District Court for the District of Columbia.

52 U.S.C. § 30109(a)(8)(A).

3 B. Factual Background

On February 14, 2024, Campaign Legal Center and an individual filed an administrative

complaint with the FEC against Last Best Place PAC. Admin. R. (AR) at 1–14, ECF No. 20.

The administrative complaint was designated MUR 8216. Id. at 1. And it alleged that Last Best

Place PAC violated 52 U.S.C. § 30104 and FEC regulations by paying millions of dollars for

advertisements attacking U.S. Senate candidate Tim Sheehy without “accurately and timely

report[ing] its independent expenditures[.]” Id. at 8–11. More specifically, the complaint alleged

that the PAC began running the advertisements against Sheehy, then “a Republican primary

candidate for the U.S. Senate in Montana,” shortly after forming in September 2023. Id. at 1–3.

And according to the complaint, the PAC “violated its reporting obligations by failing to file a

48-hour report for each of its independent expenditures, and by failing to disclose and itemize its

independent expenditures on its 2023 year-end report.” Id. at 8.

The administrative complaint alleged that from September 5, 2023, to December 31, 2023,

Last Best Place PAC “disbursed $2,029,549.32—nearly all of its reported disbursements—to

‘Mountain Media,’ a vendor that reportedly purchased airtime for [Last Best Place] PAC’s ads and

shares the same address as . . . an Alexandria, Virginia-based media buyer that ‘works with many

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