Libertarian National Committee, Inc. v. Federal Election Commission

228 F. Supp. 3d 19, 2017 WL 27927, 2017 U.S. Dist. LEXIS 9
CourtDistrict Court, District of Columbia
DecidedJanuary 3, 2017
DocketCivil Action No. 2016-0121
StatusPublished
Cited by8 cases

This text of 228 F. Supp. 3d 19 (Libertarian National Committee, Inc. v. Federal Election Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Libertarian National Committee, Inc. v. Federal Election Commission, 228 F. Supp. 3d 19, 2017 WL 27927, 2017 U.S. Dist. LEXIS 9 (D.D.C. 2017).

Opinion

*21 MEMORANDUM OPINION

BERYL A. HOWELL, Chief Judge

The plaintiff, the Libertarian National Committee (“LNC”), was left a testamentary bequest by Joseph Shaber in 2015 in the amount of $235,575.20 but was allegedly unable to accept the bequest in full due to restrictions imposed by the Federal Election Commission Act (“FECA”), see 52 U.S.C. §§ 30116 and 30125. The LNC challenges certain aspects of the statutory scheme as unconstitutional and seeks certification of the constitutional issues it raises to the D.C. Circuit en banc, pursuant to 52 U.S.C. § 30110. 1 The defendant, the Federal Election Commission (“FEC”), has.moved to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) on the ground that LNC lacks standing to bring this suit. This potential Article III issue must be addressed before certifying any question to the D.C. Circuit under § 30110. See Holmes, 823 F.3d at 70 (“If the requirements of Article III of the Constitution are satisfied, the district court must ‘immediately’ ‘certify all questions of constitutionality of this Act to the United States court of appeals for the circuit involved ... sitting en banc.’ ”); see also Republican Party of La. v. FEC, 146 F.Supp.3d 1, 8 (D.D.C. 2015) (“This Court may properly dismiss [the plaintiffs’] claims [under analogous Bipartisan Campaign Reform Act] -without convening a three-judge panel if [the plaintiffs] lack standing to bring those claims.”); Holistic Candlers & Consumers Ass’n v. FDA, 664 F.3d 940, 943 (D.C. Cir. 2012) (describing standing as a “threshold jurisdictional question” (quoting Byrd v. EPA, 174 F.3d 239, 243 (D.C. Cir. 1999))). For the reasons set out below, the FEC’s motion will be denied.

I. BACKGROUND

The challenged statutory framework is summarized before discussing the particular facts underlying this suit and the LNC’s claims.

A. FECA’s Limits on Contributions to Political Committees

Under FECA, “no person,” including, inter alia, a testamentary estate, 2 “shall make contributions ... to the political committees established and maintained by a national political party, which are not the authorized political committees of any candidate, in any calendar year which, in the aggregate, exceed $25,000.” 52 U.S.C. § 30116(a)(1). FECA was amended in 2014 to allow individuals to make additional donations of up to three hundred percent of the annual contribution limit set out. in *22 § 30116(a)(1) for each of three specified purposes: (1) “expenses incurred with respect to a presidential nominating convention;” (2) “expenses incurred with respect to the construction, purchase, renovation, operation, and furnishing of one or more headquarters buildings of the party;” and (3) “expenses incurred with respect to the preparation for and the conduct of election recounts and contests and other legal proceedings.” Id. § 30116(a)(9)(A)-(C). Donations accepted for the three enumerated purposes under § 30116(a)(9) must be tunneled into a “separate, segregated account” and not comingled with other funds. Id.

The contribution limits set forth in § 30116(a)(1) are adjusted for inflation in odd-numbered years such that, at the time this Complaint was filed, the annual limit on a general account contribution was $33,400, and the annual limit on a segregated account contribution for each of the three segregated accounts was $100,200. See id. § 30116(c). Accordingly, in 2015, the total amount that a party’s political committee could accept from any person, including a testamentary estate, was $334,000.

B. Bequest to the LNC by Joseph Shaber

The LNC is “the national committee of the Libertarian Party of the United States.” Compl. ¶ 1. Its mission is “to field national [presidential tickets, to support its state party affiliates in running candidates for public office, and to conduct other political activities in furtherance of a libertarian public policy agenda in the United States.” Id. From 1988 to 2011, Mr. Shaber made small, periodic donations to the LNC. Id. ¶ 15. “Unbeknown to the LNC, it was made a beneficiary of the Joseph Shaber Revocable Living Trust U/T/D February 11, 2010.” Id. ¶ 16. Upon his death on August 23, 2014, Mr. Shaber’s trust became irrevocable, with the LNC’s share amounting to $235,575.20. Id. ¶ 17. No restrictions were placed on how the LNC could utilize the bequest, and the trustee maintains that it is “entirely up to the LNC how it wishes to apply the distribution.” See Def.’s Mot. Dismiss at 6-7, ECF No. 9 (quoting Letter, from Trustee’s Counsel to FEC (dated June 15, 2015), available online at http://saos.fec.gov/ aodocs/1317218.pdf (last visited Dec. 27, 2016)).

On February 23, 2015, the trustee distributed $33,400 of the bequest to the LNC’s general account. Id. ¶ 19. LNC asserts that it “would [have] accepted] and spen[t] the entire amount of the Shaber bequest for its general expressive purposes” but for FECA’s contribution limits. Id. ¶¶ 18-19. On May 6, 2015, the trustee requested an advisory opinion from the FEC as to whether the remainder of the bequest could be placed in a third-party escrow account for annual' disbursements pursuant to § 30116(a)(1). The FEC approved the trustee’s request on August 11, 2015. See generally FEC Advisory Op. 2015-05. In January 2016, the LNC accepted another $33,400 of the Shaber bequest from escrow for deposit into the party’s general purpose account. Compl. ¶ 20. Thus, as of the filing of the complaint, approximately $168,775.20 of the bequest remained in escrow. See Def.’s Mot. Dismiss at 7; Pl.’s Opp’n Def.’s Mot. Dismiss (“Pl.’s Opp’n”) at 20, ECF No. 12 (referencing $168,000 in escrow).

C. The LNC’s Claims ,

The LNC’s complaint alleges in three counts that application of the § 30116 contribution limits to the Shaber bequest “violates the First Amendment speech and associational rights of the LNC and its supporters,” id. ¶ 27 (Count I), and that the segregated accounts scheme, which allows parties to accept larger donations for *23 three specified purposes only, amounts to a content-based restriction on speech, both on its face and as applied to the Shaber bequest id. ¶¶ 31, 34 (Counts II and III); see also

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228 F. Supp. 3d 19, 2017 WL 27927, 2017 U.S. Dist. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/libertarian-national-committee-inc-v-federal-election-commission-dcd-2017.