Lair v. Motl

189 F. Supp. 3d 1024, 2016 U.S. Dist. LEXIS 64753, 2016 WL 2894861
CourtDistrict Court, D. Montana
DecidedMay 17, 2016
DocketCV 12-12-H-CCL
StatusPublished
Cited by4 cases

This text of 189 F. Supp. 3d 1024 (Lair v. Motl) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lair v. Motl, 189 F. Supp. 3d 1024, 2016 U.S. Dist. LEXIS 64753, 2016 WL 2894861 (D. Mont. 2016).

Opinion

ORDER

Charles C. Lovell, Senior United States District Judge

Before the Court are cross-motions for summary judgment in this case involving Montana’s 2011 political campaign contribution limits, codified at Montana Code Annotated § 13-37-216(1), (3), and (5).1 For the reasons explained below, the Court grants Plaintiffs’ motion for summary judgment, denies Defendants’ motion for summary judgment, and again declares unconstitutional these three statutory subsections.

Background

Plaintiffs filed this lawsuit in the Billings Division for the District of Montana on September 6, 2011, alleging that the following Montana state statutes violate the First Amendment and are facially unconstitutional:

Montana Code Annotated § 13-35-225(3)(a), which requires authors of political election materials to disclose another candidate’s voting record;
Montana Code Annotated § 13-37-131, which makes it unlawful for a person to misrepresent a candidate’s public voting record or any other matter relevant to the issues of the campaign with knowledge that the assertion is false or with a reckless disregard of whether it is false;
Montana Code Annotated § 13-37-216(1), (5), which limits contributions that individuals and political committees may make to candidates;
Montana Code Annotated § 13-37-216(3), (5), which imposes an aggregate contribution limit on all political parties; and
[1027]*1027Montana Code Annotated § 13-35-227, which prevents corporations from making either direct contributions to candidates or independent expenditures on behalf of a candidate.

Plaintiffs moved for a preliminary injunction on September 7, 2011, seeking to enjoin enforcement of these statutes. However, before any action was taken on the motion, Defendants moved to change venue and the ease was transferred to the undersigned.

On February 16, 2012, the Court held a hearing on the motion for a preliminary injunction and enjoined enforcement of Montana’s vote-reporting requirement and political-civil libel statute, Montana Code Annotated §§ 13-35-225(3)(a), 13-37-131. The Court denied the motion as to the remaining statutes.

The Court issued its first scheduling order on March 9, 2012. The parties agreed that all of the issues regarding the contribution limits in Montana Code Annotated § 13-37-216(1), (3), and (5) would be resolved through a bench trial and that all other matters would be adjudicated by summary judgment.

The parties then cross-moved for summary judgment, and the Court held a hearing on May 12, 2012. The Court granted both motions in part and denied them in part. The Court permanently enjoined Montana’s vote-reporting requirement, political-civil libel statute, and ban on corporate contributions to political committees used by those committees for independent expenditures. See Mont. Code Ann. §§ 13-35-225(3)(a), 13-37-131, 13-35-227. However, the Court concluded that Montana’s ban on direct and indirect corporate contributions to candidates and political parties was constitutional. Id, at § 13-35-227. The parties cross-appealed that order but then voluntarily dismissed the appeals on July 23, 2012.

The Court held a bench trial from September 12, 2012, to September 14, 2012, in order to resolve Plaintiffs’ claims related to Montana’s campaign contribution limits in Montana Code Annotated § 13-37-216(1),. (3), and (5). On October 3, 2012, less than three weeks after the close of evidence, the Court issued .an order declaring the contribution limits unconstitutional and permanently enjoining their enforcement. The order indicated that complete findings of fact and conclusions of law would follow, but that the Court wished to make its ultimate ruling known as far in advance of the pending November election as possible. That same day, Defendants filed a motion to stay the Court’s ruling pending appeal to the Ninth Circuit Court of Appeals. The Court did not rule on the motion immediately, instead giving Plaintiffs five days to respond. The Court ultimately denied Defendants’ motion to stay.

On October 4, 2012, Defendants filed a notice of appeal of the Court’s October 3rd order arid judgment. On October 10, 2012, the Ninth Circuit motions panel assigned to the case temporarily stayed the Court’s order and judgment pending appeal, citing the fact that the Court had yet to issue its findings of fact and conclusions of law. That same afternoon, this Court issued its findings and conclusions, relying primarily on the United States Supreme Court’s plurality opinion in Randall v. Sorrell, 548 U.S. 230, 126 S.Ct. 2479, 165 L.Ed.2d 482 (2006), to find that Montana’s campaign contribution limits do not pass constitutional muster.

On October 16, 2012, the Ninth Circuit motions panel issued its full opinion granting Defendants’ motion to stay for the duration of the appeal. In essence, the motions panel concluded that Defendants were likely to succeed on appeal because the Ninth Circuit’s decision in Montana Right to Life Association v. Eddleman, 343 F.3d 1085 (9th Cir.2003) [hereinafter, [1028]*1028Eddleman], likely remained good law despite Randall. See Lair v. Bullock, 697 F.3d 1200, 1202 (9th Cir.2012) [hereinafter, Lair 7],

On May 26, 2015, the Ninth Circuit merits panel assigned to the case issued its opinion, which was subsequently amended and re-issued on September 1, 2015. See Lair v. Bullock, 798 F.3d 736 (9th Cir.2015) [hereinafter, Lair II]. The Lair II court reversed and remanded, directing this Court to apply the following test from Eddleman to the case at bar: “state campaign contribution limits will be upheld if (1) there is adequate evidence that the limitation furthers a sufficiently important state interest, and (2) if the limits are ‘closely drawn’ — i.e., if they (a) focus narrowly on the state’s interest, (b) leave the contributor free to affiliate with a candidate, and (c) allow the candidate to amass sufficient resources to wage an effective campaign.” 798 F.3d at 748. The Lair II court expressly held that Randall did not overrule the Eddleman closely-drawn analysis “because there simply was no binding ... decision on that point.” Id. at 747. However, the Lair II court did hold that the Supreme Court’s decision in Citizens United v. Federal Election Commission, 558 U.S. 310, 130 S.Ct. 876, 175 L.Ed.2d 753. (2010), abrogated Eddleman to the extent the latter relied upon an impermissible notion of what constitutes an “important state interest” vis-á-vis contribution limits. Id. at 745-746. Thus, the litmus test for state campaign contribution limits in the Ninth Circuit — which is to be applied here on .remand — is that articulated in Eddleman, except that the only state interest which contribution limits may permissibly combat is quid pro quo corruption or its appearance.

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Bluebook (online)
189 F. Supp. 3d 1024, 2016 U.S. Dist. LEXIS 64753, 2016 WL 2894861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lair-v-motl-mtd-2016.