Lavin v. Husted

803 F. Supp. 2d 756, 2011 U.S. Dist. LEXIS 80254, 2011 WL 3021831
CourtDistrict Court, N.D. Ohio
DecidedJuly 22, 2011
DocketCase No. 1:10 CV 1986
StatusPublished
Cited by1 cases

This text of 803 F. Supp. 2d 756 (Lavin v. Husted) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lavin v. Husted, 803 F. Supp. 2d 756, 2011 U.S. Dist. LEXIS 80254, 2011 WL 3021831 (N.D. Ohio 2011).

Opinion

MEMORANDUM OPINION

DONALD C. NUGENT, District Judge.

This matter is before the Court on the Parties’ Cross Motions for Summary Judgment. (ECF # 51 — Defendant’s Motion; ECF # 52 — Plaintiffs’ Motion). The motions are now fully briefed and the Court has heard oral argument from counsel on the pending motions. For the reasons that follow, Plaintiffs’ Motion for Summary Judgment (ECF # 52) is denied and Defendant’s Motion for Summary Judgment (ECF # 51) is granted.

Factual and Procedural Background1

Plaintiffs, who are Ohio physicians and Medicaid providers2, filed this action on September 3, 2010, seeking a declaratory judgment that Ohio Rev.Code § 3599.45 violates the First and Fourteenth Amendments to the United States Constitution and an injunction barring Defendant3, the Secretary of State, from enforcing § 3599.45 against candidates for attorney general or county prosecutor to whom Plaintiffs wish to make campaign contributions.

The Ohio General Assembly adopted Senate Bill 159 in 1978 which barred Medicaid providers from fraudulently claiming payments for ostensible services and provided for the investigation and prosecution of Medicaid fraud. Included in Senate Bill 159 was the provision at issue here which provides in relevant part:

(A) No candidate for the office of attorney general or county prosecutor or [758]*758such a candidate’s campaign committee shall knowingly accept any contribution from a provider of services or goods under contract with the department of job and family services pursuant to the medicaid program of Title XIX of the “Social Security Act,” 49 Stat. 620 (1935), 42 U.S.C. 301, as amended, or from any person having an ownership interest in the provider....
(B) Whoever violates this section is guilty of a misdemeanor of the first degree.

Ohio Rev.Code § 3599.45.

Plaintiffs allege that they contacted the campaign office of Ohio Attorney General Richard Cordray in July 2010 to ask how Plaintiffs might make a donation to his campaign for re-election. The campaign office told Plaintiffs that it could not accept campaign contributions from Plaintiffs because they provided services to patients insured by Medicaid. Plaintiffs also discovered that Cordray’s campaign website also warns potential donors that it is not permitted to accept campaign contributions from Medicaid providers or from any person having an ownership interest in the provider. Plaintiffs filed this action two months later, asserting that their First Amendment rights have been violated and that they will suffer irreparable harm if Defendant is not enjoined from enforcing § 3599.45 so that they will be permitted donate to Mr. Cordray’s campaign (or any other candidate running for attorney general or county prosecutor) before election day in November, 2010.

This Court denied Plaintiffs’ Motion for a Preliminary Injunction finding that Plaintiffs failed to demonstrate a strong likelihood of success on the merits of their claim, and, without a finding of likelihood of success on the merits, irreparable injury could not be presumed. (See ECF # 24) Specifically, the Court found that under the standard applicable in this instance announced in Buckley v. Valeo, 424 U.S. 1, 25, 96 S.Ct. 612, 46 L.Ed.2d 659 (1976) and its progeny, § 3599.45 is Constitutional so long as it is closely drawn to match a sufficiently important governmental interest. Based upon the evidence before the Court at that time, it was determined that the Secretary set forth a sufficiently important state interest behind § 3599.45, the prevention of corruption or the appearance of corruption arising from Medicaid providers contributing to the campaigns of candidates for Attorney General or County prosecutor — the offices charged with enforcing the Medicaid fraud provisions against Medicaid providers. Further, the Court found that § 3599.45 was closely drawn to match the state’s interest in preventing corruption or the appearance of corruption.

In making these findings, the Court noted:

A contribution restriction, such as the one at issue here, is closely drawn if it “do[es] not undermine to any material degree the potential for robust and effective discussion of candidates and campaign issues by individual citizens, associations, the institutional press, candidates or political parties.” Buckley, 424 U.S. at 29, 96 S.Ct. 612. In applying this standard, the Supreme Court instructed that “we have ‘no scalpel to probe’ each possible contribution level. We cannot determine with any degree of exactitude the precise restriction necessary to carry out the statute’s legitimate objectives. In practice, the legislature is better equipped to make such empirical judgments, as legislators have ‘particular expertise’ in matters related to the costs and nature of running for office.” Randall v. Sorrell, 548 U.S. 230, 248, 126 S.Ct. 2479, 165 L.Ed.2d 482 (2006) (citations omitted). As such, courts should ordinarily defer to the leg[759]*759islature’s determination of such matters. Id.
The statute at issue here applies only to Medicaid providers, and their owners, as contributors and the enforcers of the Medicaid statute, as the recipients. It only prohibits direct contributions from Medicaid providers to candidates for offices that prosecute Medicaid fraud. It does not prevent Medicaid providers, or their owners, from contributing to any other candidate for any other state or county office. In addition, the statute does not limit contributions by employees or families of Medicaid providers. While candidates for attorney general or county prosecutor are prohibited by the statute from accepting direct financial donations from Medicaid providers and their owners, the Medicaid providers and owners may exercise their rights of free association and speech under the First Amendment by volunteering their time to such candidates and may certainly “enter into robust and effective discussion of candidates and campaign issues.” Thus, the statute does not prohibit Plaintiffs from supporting a candidate for attorney general or county prosecutor. Accordingly, the contribution ban of § 3599.45 is more properly described as a “merely marginal speech restriction,” which does not materially limit the robust and effective discussion of candidates. FEC v. Beaumont, 539 U.S. 146, 161, 123 S.Ct. 2200, 156 L.Ed.2d 179 (2003) (“restrictions on political contributions have been treated as merely ‘marginal’ speech restrictions ... because contributions lie closer to the edges than to the core of political expression”).
As the First Amendment has not been burdened beyond marginal speech restrictions related to contributions, this Court will not second guess the legislature as to the precise restrictions necessary to carry out the state’s sufficiently important government interest

ECF # 24.

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Related

Kilroy v. Husted
868 F. Supp. 2d 652 (S.D. Ohio, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
803 F. Supp. 2d 756, 2011 U.S. Dist. LEXIS 80254, 2011 WL 3021831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lavin-v-husted-ohnd-2011.