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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.
2023
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Background

  • 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)
Read the full case

Case Details

Case Name: The Cartesian Company, Inc. and Greg Gachassin v. the Division of Administrative Law Ethics Adjudicatory Board Panel a and the Louisiana Board of Ethics
Court Name: Supreme Court of Louisiana
Date Published: Oct 20, 2023
Citation: 371 So.3d 1041
Docket Number: 2023-CA-00398
Court Abbreviation: La.