Citizens for Responsibility & Ethics in Washington v. Trump

276 F. Supp. 3d 174
CourtDistrict Court, S.D. New York
DecidedDecember 21, 2017
Docket17 Civ. 458 (GBD)
StatusPublished
Cited by16 cases

This text of 276 F. Supp. 3d 174 (Citizens for Responsibility & Ethics in Washington v. Trump) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens for Responsibility & Ethics in Washington v. Trump, 276 F. Supp. 3d 174 (S.D.N.Y. 2017).

Opinion

MEMORANDUM DECISION ' AND ORDER

GEORGE B. DANIELS, United States District Judge:

Plaintiffs Citizens for Responsibility and Ethics in Washington (“CREW”), Restaurant Opportunities Centers United, Inc. (“ROC United”), Jill Phaneuf, and Eric Goode (collectively, “Plaintiffs”), bring this suit against Defendant Donald J. Trump, in his official capacity as President of the United States. (Second Amended Complaint (“SAC”), ECF No. 28, at 1.) Plaintiffs principally allege that Defendant’s “vast, complicated, and secret” business interests are creating conflicts of .interest and have resulted in unprecedented government influence in, violation of the Domestic and Foreign Emoluments Clauses of the United States Constitution. (SAC ¶ 1 (citing U.S. Const, art. I, § 9, cl. 8 & art. II, § 1, cl. 7, respectively).) Plaintiffs seek (i) a declaratory judgment declaring that Defendant has violated and will continue to violate the Domestic and Foreign Emoluments Clauses; (ii) an injunction enjoining Defendant from ' violating the Emoluments Clauses; and (iii) an injunction requiring Defendant to release financial records in order to confirm that he is not engaging in further transactions that would violate the Emoluments Clauses. (Id. ¶ 20.)

' Defendant argues that Plaintiffs lack standing to sue and moves to dismiss this lawsuit for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure Rule 12(b)(1). (Def.’s Mot. to Dismiss, ECF No. 34; Def.’s Mem. of Law in S'upp. of Mot. to Dismiss (“Mot.”), ECF No. 35, at 7.) Defendant also moves to dismiss this case for failure to state a claim under the Emoluments Clauses pursuant to Federal Rule of Civil Procedure Rule 12(b)(6). (See Mot. at 26.)

Defendant’s motion to dismiss for lack of standing under Rule 12(b)(1) is GRANTED.1

I. FACTUAL BACKGROUND

A. The Parties

Plaintiff CREW is a nonprofit, nonpartisan government ethics watchdog organized under the laws of the State of Delaware. (SAC ¶ 21.) CREW’s self-proclaimed mission is to “protect[ ] the rights of citizens to be informed about the activities of government officials, ensur[e] the integrity of government officials, protect[ ] [the] political system against corruption, and reduc[e] the influence of money in politics.” (Id.) It seeks to advance that mission through a combination of research, advocacy, litigation, and education, all aimed at raising public awareness about the influence of outside special interests on public officials. (Id. ¶22.) For instance, CREW, is involved in a project relating to campaign finance and ethics at the state-level, ,as well as researching and filing comments with government agencies related to rulemakings and other regulatory actions, .and preparing reports on “money-in-politics issues.” (Id. ¶¶ 166-67, 171.) CREW also analyzes tax returns of nonprofit groups engaged in political activities and publishes blog posts and reports to educate the public. (Id. ¶ 173.) In addition, during the last several election cycles, CREW has filed numerous administrative complaints with the Federal Election Commission and the Department of Justice alleging violations of, campaign finance laws. (Id. ¶ 164.)

Plaintiff ROC United is a nonprofit, nonpartisan member-based organization organized under the laws of the State of New York. (Id. ¶28.) ROC United’s members include nearly 25,000 restaurant employees, over 200 restaurants, and about 3,000 other dining establishments. (Id. If11.) ROC United provides “job training, placement, leadership development, civic engagement, legal support, and policy advocacy” to help improve working conditions in the food service industry. (Id.) Through its RAISE project, ROC United works with restaurant owners to implement sustainable business models that support “high road” employer practices such as paying living wages, providing basic benefits, being environmentally sustainable, and providing safe and healthy workplaces. (Id. ¶ 181.) ROC United also owns and operates a restaurant in New York City and another in Detroit, with a forthcoming location in Washington, D.C. (Id. ¶ 28.)

Plaintiff Jill Phaneuf, a resident of Washington D.C., works with a hospitality company to book embassy functions and other events tied tó foreign governments, as well as other events “in the Washington, D.C. market.” (Id, ¶ 15.) In particular, Phaneuf books events for two Washington D.C. hotels—the Carlyle Hotel, located just north of Dupont Circle, and the Glover Park Hotel, located near the area that is colloquially referred to “Embassy Row.” (Id. ¶ 15.) Phaneuf alleges that her compensation consists of a percentage of the gross receipts of the events she books. (Id.) '

Plaintiff Eric Goode is a New York resident and the owner of several hotels, restaurants, bars, and event spaces in New York City. (Id. ¶ 18.) He owns the Maritime Hotel located in the Chelsea neighborhood, the Bowery Hotel and Ludlow Hotel, both of wh'ich are located’ in the Lower East Side, and the Jane Hotel in the Meatpacking District. (Id.) Goode also owns several restaurants located in the Bowery Hotel. (Id.) Goode alleges that his hotels and restaurants have typically attracted business from foreign governments, as well as from federal and state government officials traveling on official business. {Id.) • •

Defendant Donald J. Trump is the President of the United States of America. Before he was elected President, Defendant amassed ownership and controlling interests in businesses throughout the country and around the world. Defendant is the sole owner of the Trump Organization LLC and The Trump Organization, Inc. (collectively, the “Trump Organization”). (Id. ¶ 42.) Defendant’s corporations, limited-liability companies, limited partnerships, and other entities are loosely organized under the Trump Organization. (Id.)

On January 11, 2017, Defendant, then-President-elect, announced that he would turn over the “leadership and management” of the Trump Organization to his sons, Donald Trump, Jr. and Eric Trump. (Id. ¶43.) Defendant also announced that he would donate all profits from foreign governments’ patronage of his businesses to the U.S. Treasury. (Id.-, see also Donald Tramp’s News Conferenee: Full Transcript and Video,' N.Y. Times (Jan. 11, 2017), http://nyti.ms/2jG86w8.) Although Defendant had established a trust to hold his business assets,’ Plaintiffs allege that Defendant continues to own and is permitted to take distributions from the trust at any time. (SAC ¶ 44.) Plaintiffs allege that Defendant continues to be informed of the Trump Organization’s business activities and that Eric Trump provides business updates to Defendant on a quarterly basis. (Id.)

Through his various business entities, Defendant owns and receives payments from a number of properties and restaurant establishments in the United States. Of particular relevance herb, Defendant owns the Trump International Hotel in Washington, D.C., and the BLT Prime, a restaurant located inside the hotel. (Id. ¶¶.58-59.) He also owns Trump .World Tower, a condominium high-rise building in.New York City located.near the United Nations. (Id. ¶ 90.) Trump Tower, a mixed-use skyscraper in New York.

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Bluebook (online)
276 F. Supp. 3d 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-for-responsibility-ethics-in-washington-v-trump-nysd-2017.