Gresham v. Picker

214 F. Supp. 3d 922, 2016 WL 5870809
CourtDistrict Court, E.D. California
DecidedOctober 7, 2016
DocketNo. 2:16-cv-01848-JAM-CKD
StatusPublished
Cited by2 cases

This text of 214 F. Supp. 3d 922 (Gresham v. Picker) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gresham v. Picker, 214 F. Supp. 3d 922, 2016 WL 5870809 (E.D. Cal. 2016).

Opinion

ORDER DENYING DEFENDANTS’ MOTION FOR PRELIMINARY INJUNCTION

JOHN A. MENDEZ, UNITED STATES DISTRICT JUDGE

This matter is before the Court on Plaintiffs’ Motion for Preliminary Injunction to prohibit Defendants from enforcing California’s automatic dialing-announcing device prohibition against Plaintiffs on the grounds that the statute violates the First Amendment. For the following reasons, Plaintiffs’ motion is denied.

I. FACTUAL ALLEGATIONS AND PROCEDURAL BACKGROUND

Plaintiff Victor Gresham is a political consultant who engages in political communications through Plaintiff Conquest Communications Group, LLC, a Virginia based company of which he is a principal. Declaration of Victor Gresham in Support of Plaintiffs’ Motion for Preliminary Injunction (“Gresham Deck”) ¶ 2. Gresham and his company want to conduct politically related, automated telephone calls in California during the 2016 election cycle. Id. ¶ 3.

Plaintiffs have refrained from conducting politically related automated telephone calls in California, at least since late Spring 2016, due to California Public Utility Code §§ 2872, 2874(a), and 2876 (“ADAD Statute”). Gresham Deck ¶ 3. Plaintiffs have declined to place automated telephone communications for clients and have lost potential business opportunities and revenue as a result. Id. ¶ 4. Without the ban, Plaintiffs would make calls such as automated surveys and messages relat[927]*927ed to political campaigns, automated scripted calls on behalf of political clients, and telephone town hall calls that allow the answerer to join a live, town hall style forum conducted with a politician or officeholder. Id. ¶ 3.

Defendants admit that they, as Commissioners of the California Public Utilities Commission, have the authority to enforce California’s ADAD Statute when there is no express or implied consent to the call. Ans. ¶ 3. Under the statute, they may enforce penalties against violators, including a fine not to exceed five hundred dollars for each violation and/or disconnection of telephone service to the automatic dialing-announcing device for a period of time specified by the commission. Cal. Pub. Util. Code § 2876.

Plaintiffs filed their complaint at the beginning of August 2016. ECF No. 1. The complaint contains two causes of action under 42 U.S.C. § 1983. The first cause of action alleges that Cal. Pub. Util. Code §§ 2872 and 2874 violate Plaintiffs’ free speech rights guaranteed by the First and Fourteenth Amendments both on their face and as applied. Compl. ¶ 22. The sec-. ond cause of action alleges that those sections impose impermissible prior restraints on constitutionally-protected speech and that they are unconstitutional for failing to contain adequate standards or guidelines to control the discretion of the decision-maker. Compl. ¶¶ 35, 36.

Plaintiffs filed their Motion for Preliminary Injunction and Request for Advance Hearing on the Motion on August 17, 2016. ECF Nos. 7, 9. Defendants timely filed their opposition and the Court denied Plaintiffs’ request to advance the hearing. ECF Nos. 17, 18. The Court heard arguments on October 4, 2016, and took this motion under submission with an order to follow.

II. OPINION

A. Legal Standard

A preliminary injunction is “an extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Winter v. Natural Res. Def. Council, Inc., 555 U.S. 7, 22, 129 S.Ct. 365, 172 L.Ed.2d 249 (2008). To obtain a preliminary injunction, a plaintiff must demonstrate that: (1) she is likely to succeed on the merits, (2) she is likely to suffer irreparable harm in the absence of preliminary relief, (3) the balance of equities tips in her favor, and (4) an injunction is in the public interest. Boardman v. Pac. Seafood Grp., 822 F.3d 1011, 1020 (9th Cir. 2016) (quoting Winter, 555 U.S. at 20, 129 S.Ct. 365). The last two factors merge when the government is a party. Drakes Bay Oyster Co. v. Jewell, 747 F.3d 1073, 1092 (9th Cir. 2014). In the Ninth Circuit, a preliminary injunction may be appropriate “when a plaintiff demonstrates that serious questions going to the merits were raised and the balance of hardships tips sharply in the plaintiffs favor,” as long as the other two Winter factors are also satisfied. Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131-35 (2011).

A preliminary injunction can be prohibitory or mandatory. See Marlyn Nutraceuticals, Inc, v. Mucos Pharma GmbH & Co., 571 F.3d 873, 878 (9th Cir. 2009). “A prohibitory injunction prohibits a party from taking action and ‘preserves the status quo pending a determination of the action on the merits.’ ” Id. (quoting Chalk v. U.S. Dist. Court, 840 F.2d 701, 704 (9th Cir. 1988)). The “status quo” is “the last, uncontested status which preceded the pending controversy.” Id. (quoting Regents of the Univ. of Cal. v. Am. Broad. Cos., 747 F.2d 511, 514 (9th Cir. 1984)). A mandatory injunction, on the other hand, “orders a responsible party to take ac[928]*928tion.” Id. (quoting Meghrig v. KFC W., Inc., 516 U.S. 479, 484, 116 S.Ct. 1251, 134 L.Ed.2d 121 (1996)) (internal quotation marks omitted). Mandatory injunctions are particularly disfavored and generally “are not granted unless extreme or various serious damage will result[;] they are not issued in doubtful cases or where the injury complained of is capable of compensation in damages.” Id. (quoting Anderson v. United States, 612 F.2d 1112, 1115 (9th Cir. 1980)).

Plaintiffs seek to change the status quo and thus seek a disfavored, mandatory injunction. As the Ninth Circuit explained in Doe v. Harris, this standard can be difficult to apply in the First Amendment context:

[Ajpplication of this standard in First Amendment cases involves an inherent tension: the moving party bears the burden of showing likely success on the merits — a high burden if the injunction changes the status quo before trial' — -and yet within that merits determination the government bears the burden of justifying its speech-restrictive law. Accordingly, in the First Amendment context, the moving party bears the initial burden of making a colorable claim that its First Amendment rights have been infringed, or are threatened with infringement, at which point the burden shifts to the government to justify the restriction.

772 F.3d 563, 570 (9th Cir. 2014) (quoting Thalheimer v. City of San Diego, 645 F.3d 1109, 1115-16 (9th Cir. 2011)) (internal quotation marks and citations omitted).

B. Analysis

1. Likelihood Of Success On The Merits

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Cite This Page — Counsel Stack

Bluebook (online)
214 F. Supp. 3d 922, 2016 WL 5870809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gresham-v-picker-caed-2016.