Champion Arms, LLC v. Van Haelst
2:11-cv-00804
W.D. Wash.Sep 30, 2012Background
- ATF revoked Champion Arms’ federal firearms license after a 2009 compliance inspection found numerous violations.
- Champion Arms had prior inspections (2002, 2005/6) with repeated violations and warning conferences.
- Mr. Wangsness (and later Ms. Sagisi–Geiss with him) operated Champion Arms continuously, spanning multiple licenses.
- The Final Notice of Denial of Application or Revocation of Firearms License relied on ten violations (plus two repeats) and deemed willful conduct.
- The court granted ATF summary judgment, holding ATF was authorized to revoke for willful violations under the Gun Control Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ATF was authorized to revoke for willful violations | Champion Arms argues no willfulness based on state of mind | ATF may revoke for willful violations based on plain indifference | Yes, ATF authorized to revoke for willful violations |
| Whether repeat violations can establish willfulness | Repeat violations should not prove willfulness if state of mind at violation is not shown | Prior violations support plain indifference and willfulness | Yes, repeat violations can establish willfulness |
| Whether corporate structure change bars consideration of prior violations | Ownership change to LLC precludes using past violations | History of noncompliance remains attributable to the responsible persons | No, prior violations may be considered for willfulness |
| Whether Form 4473 and NICS violations were willful | Violations were inadvertent/oversight | Violations show plain indifference given prior warnings | Yes, willful violations found regarding Form 4473/NICS |
| Whether evidence suffices without reviewing all counts | Court should analyze all alleged violations | Need only show ≥1 willful violation; not required to scour every count | Court may rely on multiple willful violations and revoke |
Key Cases Cited
- General Store, Inc. v. Van Loan, 560 F.3d 920 (9th Cir. 2009) (willfulness can be shown by plain indifference to known obligations)
- American Arms, Intl. v. Herbert, 563 F.3d 78 (4th Cir. 2009) (prior violations and warnings support willfulness)
- Borchardt Rifle Corp. v. Cook, 684 F.3d 1037 (10th Cir. 2012) (prior violations and warning conferences show plain indifference)
- Armalite, Inc. v. Lambert, 544 F.3d 644 (4th Cir. 2008) (willfulness shown by knowledge and repeated noncompliance)