Federal Election Commission v. Larry R. Williams

104 F.3d 237, 96 Daily Journal DAR 15496, 96 Cal. Daily Op. Serv. 9422, 1996 U.S. App. LEXIS 33537, 1996 WL 734772
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 26, 1996
Docket95-55320
StatusPublished
Cited by64 cases

This text of 104 F.3d 237 (Federal Election Commission v. Larry R. Williams) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Election Commission v. Larry R. Williams, 104 F.3d 237, 96 Daily Journal DAR 15496, 96 Cal. Daily Op. Serv. 9422, 1996 U.S. App. LEXIS 33537, 1996 WL 734772 (9th Cir. 1996).

Opinions

BEEZER, Circuit Judge:

Larry R. Williams appeals the district court’s denial of his motion to dismiss and grant of a motion for summary judgment in favor of the Federal Election Commission (FEC). Williams argues, inter alia, that the FEC action is time-barred under 28 U.S.C. § 2462, and that he is not liable for civil penalties under the Federal Election Campaign Act (FECA), 2 U.S.C. §§ 431^55.

The district court had jurisdiction under 28 U.S.C. § 1331. Williams timely filed a notice of appeal. We have jurisdiction under 28 U.S.C. §§ 1291. We hold that 28 U.S.C. § 2462 applies, and we reverse.

[239]*239I

Jack Kemp sought the 1988 Republican Presidential nomination. At the end of 1987, his campaign committee engaged in a fund-raising promotion involving tickets to the Superbowl. The Philadelphia Eagles made a number of tickets available to Kemp’s campaign for $100 each. Donors who contributed $1000 to the Kemp campaign were given the right to purchase one of these $100 tickets.

Williams purchased 40 of these tickets from the Philadelphia Eagles for $4000. He then gave those tickets to people whom he persuaded to contribute $1000 to Kemp’s campaign, including a number of Williams’ Mends and employees. In 22 cases, Williams “advanced” $1000 to the contributor as the resale price of the ticket. Williams later resold these tickets and recovered the sums advanced. The fate of the other 18 tickets is not relevant to this case. These events occurred between the autumn of 1987 and the end of January, 1988.

On September 12,1988, Richard Hooton, a former Williams employee, filed an administrative complaint with FEC. FEC notified Williams, provided a copy of the complaint and offered him an opportunity to respond. On September 13,1989, FEC found reason to believe that Williams violated 2 U.S.C. §§ 441f and 441a(a)(l)(A).

After an investigation and finding probable cause to believe that Williams had violated FECA FEC conducted a statutorily mandated attempt at conciliation from May 24, 1993 to July 20,1993. Conciliation failed.

FEC filed suit on October 19, 1993, seeking the imposition of civil penalties as well as declaratory and injunctive relief. The district court denied Williams’ motion to dismiss on limitations grounds and partially granted FEC’s motion for summary judgment on January 31, 1995. The district court fixed a $10,000 civil penalty and enjoined Williams from similar violations of FECA for 10 years. After a stipulated dismissal of the remaining count, the court entered final judgment on March 7,1995. Williams filed a timely notice of appeal.

II

We review de novo a grant of summary judgment. Warren v. City of Carlsbad, 58 F.3d 439, 441 (9th Cir.1995), cert. denied, — U.S. -, 116 S.Ct. 1261, 134 L.Ed.2d 209 (1996).

A

FECA does not contain an explicit statute of limitations for the bringing of actions for civil penalties. Williams argues that the default statute of limitations, 28 U.S.C. § 2462, applies. It provides:

Except as otherwise provided by Act of Congress, an action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise, shall not be entertained unless commenced within five years from the date when the claim first accrued if, within the same period, the offender or the property is found within the United States in order that proper service may be made thereon.

Williams argues that this provision applies on its face to FEC suits to impose civil penalties.

FEC argues that § 2462 is not applicable to suits to impose penalties; that by its terms it applies only to suits to enforce penalties that have previously been imposed. We disagree.

We have previously held that “enforcement” includes “assessment.” United States v. Walsh, 8 F.3d 659, 662-63 (9th Cir.1993), cert. denied, 511 U.S. 1081, 114 S.Ct. 1830, 128 L.Ed.2d 459 (1994). In Walsh, the government brought an action for civil penalties and injunctive relief under 42 U.S.C. § 7413, the Clean Air Act. The Clean Air Act gives the government the option of issuing administrative penalty orders or bringing a civil action. The government did the latter in Walsh. The relevant statutory provision states:

The Administrator [shall or may, depending on the violator] commence a civil action for a permanent or temporary injunction, or to assess and recover a civil penalty ...

42 U.S.C. § 7413(b) (emphasis added). We held in Walsh:

[240]*240Walsh contends that the action of the United States is an action for money damages brought by the United States and founded on a tort, so that the three-year tort statute of limitations applies, 28 U.S.C. § 2415(b). Walsh is in error. The government’s action does not sound in tort but is for the enforcement of a civil penalty. The appropriate statute is the five-year statute of limitations. 28 U.S.C. § 2462.

Walsh, 8 F.3d at 662 (emphasis added). It is the law of this circuit that, for the purposes of § 2462, “enforcement” comprises “assessment.” See also 3M Co. (Minnesota Mining and Mfg.) v. Browner, 17 F.3d 1453 (D.C.Cir.1994) (discussing ,the drafting history of § 2462 and concluding that “enforcement” comprises “imposition”).

Two recent cases from the District of the District of Columbia also hold that actions for civil penalties under FECA are subject to § 2462’s limitations period. FEC v. National Republican Senatorial Committee, 877 F.Supp. 15 (D.D.C.1995); FEC v. National Right to Work Committee, Inc., 916 F.Supp. 10 (D.D.C.1996). These eases specifically hold that § 2462 applies to FEC actions for the assessment of civil penalties, and that the limitations period begins to run at the time the alleged offense is committed.

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104 F.3d 237, 96 Daily Journal DAR 15496, 96 Cal. Daily Op. Serv. 9422, 1996 U.S. App. LEXIS 33537, 1996 WL 734772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-election-commission-v-larry-r-williams-ca9-1996.