The Modern Sportsman, LLC v. United States

CourtUnited States Court of Federal Claims
DecidedOctober 23, 2019
Docket19-449
StatusPublished

This text of The Modern Sportsman, LLC v. United States (The Modern Sportsman, LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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The Modern Sportsman, LLC v. United States, (uscfc 2019).

Opinion

In the United States Court of Federal Claims No. 19-449 Filed: October 23, 2019

) THE MODERN SPORTSMAN, LLC, et ) al., ) ) Fifth Amendment Takings Claim; Plaintiff, ) Informal Rulemaking; Police Power; ) Bureau of Alcohol, Tobacco, Firearms v. ) and Explosives; Bump Stock; ) Machinegun; Motion to Dismiss; RCFC THE UNITED STATES, ) 12(b)(6). ) Defendant. ) )

Ethan Albert Flint, Flint Law Firm, LLC, Edwardsville, IL, for plaintiffs.

Nathanael Brown Yale, U.S. Department of Justice, Civil Division, Washington, DC, for defendant.

OPINION AND ORDER

SMITH, Senior Judge

In reviewing this case, the Court is sympathetic to the plaintiffs who have lost the rights to the bump stocks they purchased while they and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) seemingly thought bump stocks were not machineguns and were therefore legal. In a private context, what occurred would be remedied by the concept of justifiable reliance and plaintiffs would be compensated. However, the law is different in this case because the government, as the sovereign, has the power to take property that is dangerous, diseased, or used in criminal activities without compensation. Here, ATF acted properly within the confines of the limited federal police power. In nearly all cases, if the government confiscated a gun legally possessed by a person not committing a crime, the government would have to pay just compensation or return the gun. Importantly, however, guns are protected by the Second Amendment of the Constitution, but machineguns are not, as the crime waves of the 1920s and 1930s convinced Congress that machineguns do not fall within the scope of protections offered by the Second Amendment. The courts have not overturned this measure and this Court will not endeavor to do so now.

This case is before the Court on defendant’s Motion to Dismiss. On December 26, 2018, the Department of Justice’s (“DOJ”) Bureau of Alcohol, Tobacco, Firearms and Explosives issued a Final Rule clarifying that the term “machinegun” encompasses “bump-stock-type device[s]” (hereinafter “bump stocks”), and consequently requiring the timely surrender or destruction of bump stocks.1 Plaintiffs allege that the Final Rule’s requirement to surrender or destroy their bump stocks effected a Fifth Amendment taking of their property.

The impetus for ATF modifying its regulations arose when, after the deadly mass shooting in Las Vegas on October 1, 2017, President Trump issued a memorandum to the Attorney General. Application of the Definition of Machinegun to “Bump Fire” Stocks and Other Similar Devices, 83 Fed. Reg. 7,949, at 7,949–50 (Feb. 20, 2018) (hereinafter “Bump Stock Memorandum”). In that memorandum, the President urged the DOJ to “fully review” how ATF regulates bump stocks and similar devices, and, “as expeditiously as possible, to propose for notice and comment a rule banning all devices that turn legal weapons into machineguns.” Id.; see Bump-Stock-Type Devices, 83 Fed. Reg. 66,514, 66,516–17 (Dec. 26, 2018) (to be codified at 27 C.F.R. pts. 447, 478, 479) (hereinafter “Final Rule”). In response to the President’s Bump Stock Memorandum, ATF published a Notice of Proposed Rulemaking in the Federal Register on March 29, 2018, in which it proposed changes to its regulations concerning machineguns listed at 27 C.F.R. §§ 447.11, 478.11, and 479.11. Bump-Stock-Type Devices, 83 Fed. Reg. 13,442 (proposed Mar. 29, 2018) (hereinafter “NOPR”). After an opportunity for notice and comment, which closed on June 27, 2018, ATF published a Notice of the Final Rule on December 26, 2018. See generally Final Rule. The Final Rule had an effective date of March 26, 2019, affording owners of bump stocks a period of ninety days to either destroy or surrender their devices at a local ATF office. Id. at 66,530, 66,554. Accordingly, plaintiffs collectively destroyed and discarded the resulting scrap from 74,995 bump stocks.2 See Amended Complaint (hereinafter “Am. Compl.”) at 7.

Plaintiffs filed their Complaint with this Court on March 26, 2019, and an amended complaint on March 28, 2019. See generally Complaint; see generally Am. Compl. On May 28, 2019, defendant filed its Motion to Dismiss pursuant to Rule 12(b)(6) of the Rules of the Court of Federal Claims (“RCFC”), arguing that a taking did not occur because the requirement to surrender or destroy bump stocks served to protect the public health and safety, and was therefore a valid exercise of the police power. Defendant’s Motion to Dismiss (hereinafter “Def.’s MTD”) at 1. Defendant further alleged that “a compensable taking does not occur when

1 Pursuant to the transfer of functions from the Department of the Treasury to the Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) under the Homeland Security Act of 2002, the Attorney General is responsible for prescribing rules and regulations necessary to carry out the provisions of 18 U.S.C. §§ 921 et seq. (2018), which concern crimes and criminal procedure related to firearms. Homeland Security Act of 2002, Public Law 107-296, 116 Stat. 2135 (2002); 26 U.S.C. §§ 7801, 7805 (2018) (authorizing the Secretary of the Department of Treasury to administer and enforce this title, and to “prescribe all needful rules and regulations for the enforcement of this title.”); 18 U.S.C. § 926 (providing the Attorney General with the authority to prescribe rules and regulations to carry out the provisions of 18 U.S.C. §§ 921 et seq.). 2 Plaintiff, The Modern Sportsman, LLC, destroyed and discarded the resulting scrap from 1,479 bump stocks; plaintiff RW Arms, Ltd. destroyed and discarded the resulting scrap from 73,462 bump stocks; plaintiff Mark Maxwell destroyed and discarded the resulting scrap from 29 bump stocks; and plaintiff Michael Stewart destroyed and discarded the resulting scrap from 25 bump stocks pursuant to the Final Rule. Plaintiffs’ Amended Complaint at 7. 2 the Government takes property that is, or may be, subject to a statutory prohibition.” Id. Plaintiffs filed their Response to defendant’s Motion to Dismiss on June 23, 2019, reiterating their takings arguments. See generally Plaintiffs’ Opposition to Defendant’s Motion to Dismiss (hereinafter “Pls.’ Resp.”). On July 22, 2019, defendant filed its Reply in support of its Motion to Dismiss. See generally Defendant’s Reply in Support of Its Motion to Dismiss (hereinafter “Def.’s Reply”). The Court held oral argument on August 28, 2019, and defendant’s Motion to Dismiss is fully briefed and ripe for review. For the reasons set forth below, the Court grants defendant’s Motion to Dismiss.

I. Background

Over the past century, Congress has passed a series of laws to regulate the interstate firearms industry with the underlying goal of increasing public safety. When enacting the first of these major statutes, the National Firearms Act of 1934 (“NFA”), Congress wanted to ensure firearm regulations would not be too liberally construed. See H.R. REP. NO. 73-9741, at 1–2 (1934). Accordingly, the NFA regulated the manufacture, importation, and dealing of a narrowly-tailored set of firearms.3 26 U.S.C.

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