The Cartesian Company, Inc. and Greg Gachassin v. the Division of Administrative Law Ethics Adjudicatory Board Panel a and the Louisiana Board of Ethics
371 So.3d 1041
La.2023Background
- Greg Gachassin was chairman/trustee of the Lafayette Public Trust Financing Authority (LPTFA) and is sole owner/president of Cartesian, a real-estate development company.
- In 2009 Cartesian entered into $500,000 project consultant agreements for two affordable-housing projects (Cypress Trails and Villa Gardens) that were under LPTFA/LHA supervision; Gachassin signed/authorized related actions while on the LPTFA board and later resigned.
- The Louisiana Board of Ethics (BOE) and the Ethics Adjudicatory Board (EAB) found Gachassin and Cartesian violated La. R.S. 42:1113(B) (prohibiting an appointed member or his entity from bidding on, entering into, or "be[ing] in any way interested in" contracts under the agency’s supervision) and imposed fines/penalties; portions of that decision were affirmed on appeal.
- Plaintiffs then filed a declaratory-judgment action challenging the phrase "in any way interested in" as unconstitutionally vague and overbroad; cross-motions for summary judgment followed.
- The trial court struck the phrase as unconstitutionally vague and overbroad; BOE appealed directly to the Louisiana Supreme Court.
- The Supreme Court held the phrase was not facially overbroad (overbreadth doctrine inapplicable) but was unconstitutionally vague as applied to Plaintiffs and facially vague in all applications; it struck the phrase from La. R.S. 42:1113(B) and severed the remainder of the statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1) Facial overbreadth of "in any way interested in" | Phrase is unconstitutionally overbroad and could reach protected conduct | No First Amendment interest here; overbreadth doctrine does not apply | Reversed: phrase is not facially overbroad (overbreadth challenge fails) |
| 2) Vagueness as applied to Plaintiffs | Phrase is vague; Murtes controls; Plaintiffs lacked notice what conduct was proscribed | Phrase reasonably read to forbid financial/pecuniary interests; Plaintiffs entered proscribed contract | Affirmed: phrase unconstitutionally vague as applied to Plaintiffs |
| 3) Facial vagueness (all applications) | Phrase lacks any definable standard and thus is void in all applications | Phrase can be reasonably construed to mean a financial interest and harmonized with Ethics Code | Affirmed: phrase unconstitutionally vague on its face; struck from statute |
| 4) Remedy / severability | Strike the offending words and invalidate EAB enforcement | Preserve statute or interpret to save constitutionality | Court struck "or be in any way interested in" and severed remainder; rest of §1113(B) remains valid |
Key Cases Cited
- Village of Hoffman Estates v. Flipside, Hoffman Estates, Inc., 455 U.S. 489 (1982) (standards for overbreadth and vagueness challenges to regulatory statutes)
- Grayned v. City of Rockford, 408 U.S. 104 (1972) (void-for-vagueness due process principles)
- State v. Murtes, 94 So.2d 446 (La. 1957) (holding the phrase "in any way interested" unconstitutionally vague in a statutory context)
- Carver v. Louisiana Dep’t of Public Safety, 239 So.3d 226 (La. 2018) (presumption of constitutionality and construction to preserve statute)
- Sessions v. Dimaya, 584 U.S. _ (2018) (void-for-vagueness doctrine emphasized in the criminal/penal context)
- State v. Boyd, 710 So.2d 1074 (La. 1998) (vagueness analysis to be examined in light of facts where First Amendment not implicated)
