Imperial Sovereign Court of the State of Montana v. Knudsen

CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 13, 2026
Docket23-3581
StatusPublished

This text of Imperial Sovereign Court of the State of Montana v. Knudsen (Imperial Sovereign Court of the State of Montana v. Knudsen) 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
Imperial Sovereign Court of the State of Montana v. Knudsen, (9th Cir. 2026).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

IMPERIAL SOVEREIGN COURT No. 23-3581 OF THE STATE OF MONTANA; D.C. No. ADRIA JAWORT; RACHEL 2:23-cv-00050- CORCORAN; MONTANA BOOK BMM COMPANY; IMAGINE BREWING COMPANY, LLC; BUMBLEBEE AERIAL FITNESS; WESTERN MONTANA COMMUNITY OPINION CENTER; GREAT FALLS LGBTQ+ CENTER; THE MYRNA LOY; MONTANA PRIDE; ROXY THEATER,

Plaintiffs - Appellees,

v.

AUSTIN KNUDSEN; ELSIE ARNTZEN,

Defendants - Appellants,

and

J.P. GALLAGHER, CITY OF HELENA,

Defendants. 2 IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN

Appeal from the United States District Court for the District of Montana Brian M. Morris, Chief District Judge, Presiding

Argued and Submitted June 4, 2024 Portland, Oregon

Filed March 13, 2026

Before: Johnnie B. Rawlinson, Danielle J. Forrest, and Jennifer Sung, Circuit Judges.

Opinion by Judge Sung; Concurrence by Judge Rawlinson

SUMMARY *

Preliminary Injunction / Standing / First Amendment

The panel affirmed the district court’s preliminary injunction enjoining Defendants—the Montana Attorney General and the Montana Superintendent of Public Education—from instituting, maintaining, or prosecuting any enforcement proceedings under Montana House Bill 359 (H.B. 359), which restricts statutorily defined “drag story hours” and “sexually oriented performances.” Plaintiffs—a group of individuals, business, and nonprofits—allege that H.B. 359 violates their First

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN 3

Amendment right to freedom of speech and their Fifth Amendment right to due process. The panel held that Plaintiffs have standing to challenge H.B. 359 because (1) at least one Plaintiff has shown injury- in-fact for each statutory provision of H.B. 359 at issue, (2) Plaintiffs have demonstrated that their injuries are fairly traceable to H.B. 359, and (3) Plaintiffs have demonstrated that their injuries would likely be redressed by a favorable decision. Applying the preliminary injunction standard set forth in Winter v. Natural Resources Defense Council, 555 U.S. 7, 20 (2008), the panel held that Plaintiffs are likely to succeed on the merits of their facial First Amendment challenge to H.B. 359’s drag-story-hour provision—which provides that a school or library that receives any form of funding from the state may not allow a drag story hour on its premises during regular operating hours or at any school-sanctioned extracurricular activity—because (1) the drag-story-hour provision is a content-based restriction of purely expressive activity, and (2) the drag-story-hour restriction is not narrowly tailored to further a compelling governmental interest. The panel also held that Plaintiffs are likely to succeed on the merits of their facial First Amendment challenge to H.B. 359’s provisions restricting sexually oriented performances because (1) the sexually-oriented- performance provisions are content-based restrictions on purely expressive activity, and (2) the sexually-oriented- performance restrictions are not narrowly tailored to further a compelling governmental interest. 4 IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN

The panel held that the district court did not abuse its discretion in concluding that the remaining Winter factors weigh in favor of a preliminary injunction. Accordingly, the panel held that the district court did not abuse its discretion in granting Plaintiffs’ motion to preliminarily enjoin Defendants from instituting, maintaining, or prosecuting any enforcement proceedings under H.B. 359. Concurring in the result, Judge Rawlinson acknowledged the limited nature of review of a preliminary injunction issued by a district court, which is to preserve the status quo rather than to decide the merits of the case. Unrestrained by the limited review, she would have opted to delve more deeply into other considerations of the legislation. IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN 5

COUNSEL

Constance Van Kley (argued) and Rylee Sommers- Flanagan, Upper Seven Law, Helena, Montana; Niki Zupanic, Zupanic Law PLLC, Helena, Montana; for Plaintiffs-Appellees. Michael D. Russell (argued), Alwyn Lansing, Michael J. Noonan, and Thane Johnson, Assistant Attorneys General; Austin Knudsen, Montana Attorney General; Office of the Montana Attorney General, Helena, Montana; Emily Jones, Special Assistant Attorney General, Jones Law Firm PLLC, Billings, Montana; for Defendants-Appellants. Joshua A. Block and Emerson J. Sykes, American Civil Liberties Union Foundation, New York, New York; Alex Rate, ACLU of Montana Foundation Inc., Missoula, Montana; for Amici Curiae the American Civil Liberties Union and the ACLU of Montana Foundation Inc.. Megan S. Shaw, Cohen Weiss and Simon LLP, New York, New York, for Amicus Curiae Actors' Equity Association. 6 IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN

OPINION

SUNG, Circuit Judge:

Montana House Bill 359 (H.B. 359) restricts statutorily defined “drag story hours” and “sexually oriented performances.” Violations of H.B. 359 are subject to criminal and civil penalties. Plaintiffs are individuals, nonprofits, theaters, and other organizations. They bring a pre-enforcement challenge to H.B. 359, contending the statute violates their First Amendment right to freedom of speech and their Fifth Amendment due process right, both facially and as applied to their speech. Defendants are Montana Attorney General Austin Knudsen and Montana Superintendent of Public Instruction Elsie Arntzen. The district court granted Plaintiffs’ motion for a preliminary injunction, enjoining Defendants from instituting, maintaining, or prosecuting any enforcement proceedings under H.B. 359. Defendants timely appealed. We conclude that Plaintiffs have Article III standing to bring their claims, and the district court did not abuse its discretion by issuing the preliminary injunction. Accordingly, we affirm. I. FACTUAL AND PROCEDURAL BACKGROUND The Montana legislature passed H.B. 359 on May 11, 2023, and the governor signed it into law on May 22, 2023, with immediate effect. H.B. 359 prohibits any school or library that receives “any form of state funding” from allowing a “sexually oriented performance or drag story hour” on its premises. See H.B. 359, 2023 Gen. Assemb., 68th Sess. (Mont. 2023). Both “drag story hour” and “sexually oriented performance” are statutorily defined. Id. H.B. 359 also prohibits statutorily defined “sexually oriented businesses” from allowing minors to enter their premises IMPERIAL SOVEREIGN COURT OF MT V. KNUDSEN 7

during a sexually oriented performance. H.B. 359 § 2. And it prohibits sexually oriented performances (1) in a library that receives any form of state funding; (2) on public property when a minor is present; and (3) “in a location owned by an entity that receives any form of funding from the state.” H.B. 359 §§ 3(1), 3(3)(a), 3(3)(b). H.B. 359 prescribes significant criminal, civil, and professional penalties. The restriction on sexually oriented businesses, H.B. 359 § 2, is codified in the Montana Criminal Code and carries a minimum $1,000 criminal fine. 1 See H.B. 359 § 2(2); Mont. Code. Ann. § 45-8-118(2). A third offense carries a mandatory $10,000 fine and results in the revocation of an offender’s business license. See H.B. 359 § 2(2); Mont. Code. Ann. § 45-8-118(2). Section 3, which includes the restriction on drag story hours, is codified in Title 20, the Montana Education Code. See Mont. Code. Ann. § 20-7-135. A person who violates a provision under that title is guilty of a misdemeanor. Mont. Code. Ann. § 20- 1-207.

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