952 F.3d 352
D.C. Cir.2020Background
- Campaign Legal Center and Democracy 21 filed five FEC administrative complaints (2011–2015) alleging that individuals used closely held corporations and LLCs as "straw donors" to fund Super PACs (violating 52 U.S.C. § 30122) and that some entities failed to register/file as political committees.
- FEC General Counsel recommended "reason to believe" on straw-donor allegations in four matters; commissioners split 3–3 on opening investigations and then unanimously dismissed all five complaints.
- The three controlling commissioners issued a Statement of Reasons invoking prosecutorial discretion and explaining that post-Citizens United/SpeechNow uncertainty about applying § 30122 to closely held corporations/LLCs meant enforcement could be unfair given notice/due-process concerns.
- Plaintiffs sued under FECA’s review provision (52 U.S.C. § 30109(a)(8)), challenging the dismissals as "contrary to law." The district court dismissed two matters for lack of standing and granted summary judgment to the FEC on the remaining three.
- The D.C. Circuit affirmed: plaintiffs have informational standing; the Commission’s Statement of Reasons supplied a sufficiently reasonable basis to dismiss the straw-donor and political-committee allegations. Senior Judge Edwards concurred, agreeing with the result but strongly rejecting the FEC’s position that Heckler v. Chaney bars FECA-based judicial review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge FEC dismissals | Plaintiffs (nonprofit organizations) have informational injury from being denied disclosure required by FECA. | FEC: nonprofits that don’t vote/engage in partisan activity lack particularized informational injury. | Plaintiffs have Article III informational standing. |
| Reviewability of dismissal invoking prosecutorial discretion | Dismissals under FECA are reviewable under §30109(a)(8); Akins forecloses Heckler-based nonreviewability. | FEC contended such prosecutorial-discretion dismissals are unreviewable (relying on Heckler/CREW). | Court did not reach Heckler issue; Edwards concurred that FECA permits review and Heckler does not bar it. |
| Whether dismissal of §30122 (straw-donor) allegations was contrary to law | Plaintiffs: dismissals were erroneous; §30122 applies and the Commission should have investigated. | FEC: ambiguity in precedent/regulations post-Citizens United made enforcement unfair; prosecutorial discretion justified dismissal. | Dismissal was not contrary to law — commissioners gave a sufficiently reasonable basis (fair notice/precedent uncertainty). |
| Political-committee allegations (§§30102–30104) | Plaintiffs: entities should have been treated as political committees and required to file. | FEC/General Counsel: record better supports conduit/straw-donor theory, not political-committee designation. | Dismissal reasonable: General Counsel’s analysis supported treating entities as conduits rather than political committees. |
Key Cases Cited
- Buckley v. Valeo, 424 U.S. 1 (1976) (importance of disclosure in campaign finance law)
- McCutcheon v. FEC, 572 U.S. 185 (2014) (discusses independent expenditures and disclosure context)
- Citizens United v. FEC, 558 U.S. 310 (2010) (changed legal landscape for corporate political spending)
- SpeechNow.org v. FEC, 599 F.3d 686 (D.C. Cir. 2010) (post-Citizens United developments on independent expenditures)
- Heckler v. Chaney, 470 U.S. 821 (1985) (agency nonenforcement and prosecutorial discretion doctrine)
- FEC v. Akins, 524 U.S. 11 (1998) (FECA authorizes review of FEC dismissals; Heckler nonreviewability does not apply to FECA dismissals)
- Orloski v. FEC, 795 F.2d 156 (D.C. Cir. 1986) (standard for when an FEC dismissal is “contrary to law”)
- FEC v. Democratic Senatorial Campaign Comm., 454 U.S. 27 (1981) (deference to agency decisions unless unreasonable)
- Citizens for Responsibility & Ethics in Washington v. FEC (CREW), 892 F.3d 434 (D.C. Cir. 2018) (recent panel addressing reviewability/prosecutorial-discretion issues)