Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA CHRIS RUFER, et al.,
Plaintiffs,
v. Case No. 1:14-cv-00837 (CRC) FEDERAL ELECTION COMMISSION,
Defendant.
REPUBLICAN NATIONAL
COMMITTEE, et al.,
Plaintiffs,
v. Case No. 1:14-cv-00853 (CRC) FEDERAL ELECTION COMMISSION,
Defendant. MEMORANDUM OPINION
To curb the risk and appearance of corruption, Congress has, for almost 40 years, placed dollar limits on individual contributions to federal candidates and their parties. The Supreme Court has upheld these limits repeatedly. At the same time, recent Supreme Court cases instruct that Congress may not limit contributions to political action committees and other entities that do not coordinate their expenditures with candidates or parties. In the Court’s view, non-coordinated expenditures by these groups, even if used to expressly advocate for the election or defeat of a particular candidate, pose too low a corruption risk to justify limiting contributions to the groups consistent with the First Amendment. Drawing on this reasoning, Plaintiffs in these related cases— committees of the Republican and Libertarian parties and a Libertarian contributor—seek to invalidate Congress’s longstanding party contribution limits as applied to their non-coordinated expenditures. What’s good for the PAC geese, they argue, should be good for the party ganders.
The merits of Plaintiffs’ challenge will be decided in due course. For now, the Court must decide how and by whom the case will be adjudicated. Before the Court are applications by both the Republican and Libertarian Plaintiffs to convene a three-judge district court, the decisions of which could be appealed directly to the Supreme Court, under the judicial review mechanism of the Bipartisan Campaign Reform Act (“BCRA”), Pub. L. No. 107-155, § 403. As an alternative to convening a three-judge court under BCRA, the Libertarian Plaintiffs request that the Court certify the constitutional questions raised in the case to the D.C. Circuit sitting en banc under the judicial review procedures of the Federal Election Campaign Act (“FECA”). See 2 U.S.C. § 437h.
To proceed along either of these special jurisdictional avenues, Plaintiffs must raise
substantial, non-frivolous constitutional claims that are not clearly foreclosed by Supreme Court
precedent. The Court finds they have done so. As between the two routes of judicial review,
Plaintiffs’ alleged injury—being prohibited from accepting or giving unlimited amounts to fund
independent campaign expenditures—can only be redressed by invalidating FECA’s longstanding
base contribution limits. Constitutional challenges to FECA provisions “are subject to direct review
before an appropriate en banc court of appeals, as provided in 2 U.S.C. § 437h, not in the three-
judge District Court convened pursuant to BCRA § 307.” McConnell v. FEC,
The Libertarian Plaintiffs also seek a preliminary injunction prohibiting the Federal Election Commission from enforcing the current base party contribution limits as applied to their non- coordinated expenditures. While the Libertarian Plaintiffs’ challenge is sufficiently substantial to require en banc certification, it is nonetheless in direct tension with longstanding Supreme Court precedent upholding base contribution limits to political parties. A finding that the challenge would *3 likely succeed on its merits would require the Court to overlook this precedent, which it declines to do. The Court will, accordingly, deny the Libertarian Plaintiffs’ motion for a preliminary injunction.
I. Background
A. Statutory Scheme
In 1976, Congress amended FECA to establish monetary ceilings on contributions to
political party committees intended to influence federal elections. Federal Election Campaign Act
Amendments of 1976, Pub. L. No. 94-283, § 112, 90 Stat. 487, codified at 2 U.S.C. § 441a. These
amendments prohibited contributions to “political committees established and maintained by a
national political party . . . which, in the aggregate, exceed $20,000; or . . . to any other political
committee . . . which, in the aggregate, exceed $5,000.” Id. In ensuing campaign cycles, certain
corporations, labor unions, and wealthy individuals sought to bypass these contribution limits by
making so-called “soft money” contributions to political parties—contributions ostensibly
earmarked for state and local elections or “issue advertising” and thus not subject to the same
FECA requirements as contributions explicitly intended to influence federal elections. McConnell,
Rather than specifically defining and prohibiting soft money contributions, BCRA imposed a general ban on collecting funds in excess of FECA’s base contribution ceilings for certain entities involved in federal elections. BCRA § 101, codified at 2 U.S.C §§ 441i(a), (b)(1), (c), added a new section to FECA (section 323) prohibiting national, state, and local party committees from soliciting, receiving, spending, or disbursing money not raised in compliance with the base contribution limits found at subsections 441a(a)(1)(B) and (D). BCRA also amended the overall *4 base limits by adding a new subsection of 2 U.S.C. § 441a, limiting individual contributions to state party committees to $10,000, and by increasing FECA’s contribution limit for national parties to $25,000 and pegging that limit to inflation. BCRA §§ 102(3), 307(a)(2), codified at 2 U.S.C § 441a(1)(B), (D).
FECA contains a special judicial review mechanism that requires a district court to “certify all questions of constitutionality of the Act to the United States court of appeals for the circuit involved, which shall hear the matter sitting en banc” if the challenge is brought by “the national committee of any political party, or any individual eligible to vote in any election for the office of President[.]” 2 U.S.C. § 437h. Rather than incorporating FECA’s preexisting judicial review procedure into BCRA, Congress required that constitutional challenges to any “provision of” or “amendment made by” BCRA be heard by a three-judge district court. See BCRA § 403(a)(3). To expedite Supreme Court review of the constitutionality of the new statute, Congress provided that decisions of the three-judge court may be appealed directly to the Supreme Court. Id. [1] B. Plaintiffs
Plaintiffs in the first action before the Court are the Libertarian National Congressional Committee Inc., the Libertarian Party of Indiana, and Chris Rufer, a Libertarian contributor (“Libertarian Plaintiffs”). Plaintiffs in the second action are the Republican National Committee (“RNC”) and its chairman, Reince Priebus; the Republican Party of Louisiana and its chairman, Roger Villere, Jr.; and two local Louisiana Republican Executive Committees (“Republican Plaintiffs”). Each set of plaintiffs challenges the constitutionality of BCRA to the extent that it (1) limits national, state, and local political party committees from accepting unlimited contributions into segregated funds to be used for non-coordinated federal campaign expenditures and (2) *5 prevents individuals from donating unlimited amounts to those segregated funds. Libertarian Pls.’ Verified Compl. ¶ 3; Republican Pls.’ Verified Compl. ¶¶ 35–54. [2] Plaintiffs contend that the absence of “prearrangement and coordination” between a candidate and a contributor to a segregated, independent expenditure fund ameliorates any threat of actual or apparent quid pro quo corruption, “the only constitutionally permissible grounds on which Congress may seek to limit political contributions.” Libertarian Pls.’ Verified Compl. ¶¶ 20–22; accord Republican Pls.’ Verified Compl. ¶¶ 1–5.
All Plaintiffs request that the Court convene a three-judge court to adjudicate their challenges pursuant to BCRA § 403. Alternatively, the Libertarian Plaintiffs ask the Court to certify relevant constitutional questions to the D.C. Circuit for en banc review under 2 U.S.C. § 437h. Libertarian Pls.’ Application for Three-Judge Court at 1. The Libertarian Plaintiffs also seek a preliminary injunction barring the FEC from enforcing the challenged provisions, arguing that the ongoing injury caused by prohibiting these large donations requires immediate relief. Libertarian Pls.’ Mot. for Prelim. Inj. The Republican Plaintiffs have filed a motion to expedite this action and a motion for summary judgment, and the FEC has moved for discovery. The Court held a hearing on Plaintiffs’ three-judge court application and the motion to expedite on July 16, 2014.
C. Relevant Caselaw This case sits at the confluence of two currents of First Amendment jurisprudence concerning federal campaign finance: the constitutional permissibility of limiting contributions to federal candidates and political parties, and the constitutional impermissibility of limiting contributions to independent entities whose campaign expenditures are not coordinated with *6 candidates or parties. Plaintiffs rest their challenge on the latter current; the FEC resists it on the former. A brief summary of relevant precedent on both sides follows.
The Supreme Court’s application of the First Amendment to federal campaign contribution
limits begins with Buckley v. Valeo,
By contrast, the independent expenditure cases on which Plaintiffs rely establish that
“Congress may not limit non-connected entities . . . from spending or raising money to support the
election or defeat of candidates.” RNC,
II. Analysis
A. Jurisdiction As noted above, the Court’s role at this stage of the proceedings is to determine how and by whom this case will be adjudicated. Both sets of Plaintiffs have applied for the appointment of a *8 three-judge district court to adjudicate the constitutionality of the challenged BCRA provisions. See BCRA § 403. Alternatively, the Libertarian Plaintiffs have requested that the Court certify questions regarding the constitutionality of any challenged FECA provisions to the en banc DC Circuit under 2 U.S.C. § 437h.
At first glance, BCRA § 403(a) appears straightforward. It states simply, in mandatory
language, that a single district court “shall” convene a three-judge court to hear constitutional
challenges to BCRA. Looks are deceiving, however, as D.C. Circuit caselaw requires the district
court to make a sometimes “vexing initial determination of whether an action is required to be
heard and determined by a three-judge court.” Feinberg v. Fed. Deposit Ins. Corp.,
i. Substantiality
The FEC argues that Plaintiffs’ challenge is not sufficiently substantial to meet the threshold
requirement for adjudication by a three-judge court, or for
en banc
certification, because their
claims are clearly foreclosed by the line of Supreme Court cases upholding the constitutionality of
party contribution limits. This argument has some force. As previously noted, the Supreme Court
in McConnell upheld the portions of BCRA that cabined contributions to political parties in
connection with federal elections, “regardless of how th[e] funds are ultimately used.” 540 U.S. at
155 (upholding 2 U.S.C. §§ 441i(a) & (b)). This portion of McConnell was untouched by the
Court’s later ruling in Citizens United, which overturned the ban on unlimited expenditures by
private and public corporate entities.
Although Plaintiffs’ challenge runs contrary to this unbroken line of precedent, their
arguments are not so clearly foreclosed as to be insubstantial for purposes of three-judge court
jurisdiction or circuit certification. That is so because the Supreme Court has not “expressly
considered,” RNC,
ii. Standing Having determined that Plaintiffs’ constitutional challenges are substantial, the Court must decide who will resolve them. Plaintiffs wish to accept unlimited contributions to fund so-called independent expenditures that expressly advocate the election or defeat of federal candidates and office holders. They cannot do so under current law, however, because BCRA § 307 limits the amounts that individuals may contribute to party committees. Thus, regardless of what other statutory provisions Plaintiffs challenge, no court can give them what they seek—redress their alleged injury in standing terms—without invalidating BCRA § 307’s base contribution limits. The pivotal question, then, is whether a three-judge district convened under BCRA § 403 would have that power. If the answer is “no,” then Plaintiffs lack standing to present their challenges to a three- judge court.
The Supreme Court confronted the same question in McConnell. Among the many other challenges to BCRA in McConnell, a group of plaintiffs—the “Paul plaintiffs”—argued that BCRA § 307’s contribution limits, in conjunction with a FECA provision exempting media companies from the limits, imposed undue editorial controls in violation of the First Amendment. 540 U.S. at 228. The Court found that the Paul plaintiffs lacked standing. Id. It explained:
The relief the Paul plaintiffs seek is for this Court to strike down the contribution limits, removing the alleged disparate editorial controls and economic burdens imposed on them. But § 307 merely increased and indexed for inflation certain FECA contribution limits. This Court has no power to adjudicate a challenge to the FECA limits in this litigation because challenges to the constitutionality of FECA provisions are subject to direct review before an appropriate en banc court of appeals, as provided in 2 U.S.C. § 437h, not in the three-judge District Court convened pursuant to BCRA § 403(a). Although the Court has jurisdiction to hear a challenge to § 307, if the Court were to strike down the increases and indexes established by BCRA § 307, it would not remedy the Paul plaintiffs’ alleged injury because both the limitations imposed by FECA and the exemption for news media would remain unchanged. A ruling in the Paul plaintiffs’ favor, therefore, would not redress their alleged injury, and they accordingly lack standing.
Id. at 229.
Like the Paul plaintiffs in McConnell, Plaintiffs here challenge the constitutionality of the
base contribution limits. As in McConnell, this challenge cannot properly be heard by a three-judge
district court because the base contribution limits are not new BCRA provisions. McConnell makes
clear that the jurisdiction of a three-judge BCRA court—and thus the Supreme Court’s jurisdiction
to hear direct appeals from a three-judge court—extends only “to the increases and indexes
established by BCRA § 307[.]” A three-judge BCRA court “has no power to adjudicate a challenge
to the FECA limits” that were targeted by the Paul plaintiffs in McConnell and by Plaintiffs in these
cases.
In sum, the lynchpin of Plaintiffs’ challenge is the base limits: they cannot accept unlimited funds for non-coordinated expenditures without a court finding that 2 U.S.C. § 441a(a) is unconstitutional as applied to their contemplated expenditures. Because the FECA base limits pre- date and were not substantially changed by BCRA, Plaintiffs lack standing to challenge them through a three-judge court. Instead, the constitutional questions raised by Plaintiffs’ challenges must be certified to the D.C. Circuit sitting en banc pursuant to 2 U.S.C. § 437h.
B. Expedition and Discovery
Before certifying the constitutional questions raised by this case to the D.C. Circuit, the
Court must “develop a record for appellate review by making findings of fact.” Wagner, 717 F.3d
at 1009; accord Speechnow,
Faced with analogous certification requests under 2 U.S.C. § 437h, other courts in this
district have eschewed making findings on the types of “legislative” facts the FEC seeks to develop
through discovery. Rather, these courts have limited their findings to “adjudicative” facts
*13
concerning the plaintiffs’ particular circumstances and basic background information. See
Certification Order, Wagner, No. 11-1841 (JEB), Dkt. 51 at 3 (D.D.C. June 5, 2013) (“the ‘facts’
needed for appellate review . . . are the adjudicative facts particular to this case, not the legislative
facts relevant to the parties’ legal positions.”); Speechnow.org v. FEC, 08-248,
C. Libertarian Plaintiffs’ Preliminary Injunction Motion
Granting a preliminary injunction is “an extraordinary remedy that may only be awarded
upon a clear showing that the plaintiff is entitled to such relief.” Winter v. Natural Res. Def.
Council, Inc.,
Furthermore, the balance of equities does not tip in Plaintiffs favor, nor would an injunction
be in the public interest. Granting preliminary relief would upset the entire federal campaign
finance framework only months prior to the next federal election based on an as yet untested legal
theory. Permitting that to happen would be imprudent, to say the least, and certainly not in the
public interest. The Supreme Court has made clear that “[t]he purpose of a preliminary injunction
is merely to preserve the relative positions of the parties until a trial on the merits can be held.”
Univ. of Tex. v. Camenisch,
III. Conclusion
For the reasons stated above, the Court will deny the Republican Plaintiffs’ motions to appoint a three-judge court, grant in part and deny in part the Libertarian Plaintiffs’ motion to appoint a three-judge court, deny the Libertarian Plaintiffs’ motion for a preliminary injunction, deny the Republican Plaintiffs’ motion to expedite, deny without prejudice the Republican Plaintiffs’ motion for summary judgment, and deny the FEC’s motion for discovery. The Court will issue an order consistent with this opinion.
CHRISTOPHER R. COOPER United States District Judge Date: August 19, 2014
Notes
[1] FECA’s jurisdictional review mechanism originally included a right of direct appeal to the Supreme Court as well, but Congress repealed that aspect of the law in 1988. Pub. L. 100–352, § 6, June 27, 1988, 102 Stat 662.
[2] Plaintiffs specifically challenge 2 U.S.C. § 441a(a)(1)(B), which limits the dollar amount individuals can contribute to national parties, 2 U.S.C. § 441a(a)(1)(D), which limits the dollar amount individuals can contribute to state and local parties, and 2 U.S.C. § 441i(a)–(c), which prohibits national, state, and local parties and their officers and agents from soliciting, receiving, or spending funds raised outside of section 441a’s contribution limits.
