Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

Articles Posted in Election Law
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KalshiEx LLC, a regulated commodities exchange, sought to offer "Congressional Control Contracts" allowing individuals to bet on the outcome of the November 2024 congressional elections. The Commodity Futures Trading Commission (CFTC) prohibited these contracts, arguing they constituted gaming or election gambling, which is illegal in many states. Kalshi challenged this decision under the Administrative Procedure Act, claiming the CFTC's determination was arbitrary and capricious.The U.S. District Court for the District of Columbia ruled in favor of Kalshi, finding that the CFTC erred in categorizing the contracts as gaming or gambling. The court vacated the CFTC's decision, reasoning that the term "gaming" did not apply to election contracts and that the contracts did not involve illegal activity under state law. The CFTC then sought a stay of the district court's judgment while it pursued an appeal.The United States Court of Appeals for the District of Columbia Circuit reviewed the CFTC's emergency motion for a stay pending appeal. The court denied the motion, concluding that the CFTC failed to demonstrate that it or the public would suffer irreparable harm without a stay. The court noted that the CFTC's concerns about potential harms, such as market manipulation and threats to election integrity, were speculative and not substantiated by concrete evidence. The court left open the possibility for the CFTC to renew its stay request if more concrete evidence of irreparable harm emerged during the appeal. The administrative stay was dissolved. View "KalshiEX LLC v. CFTC" on Justia Law

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The case involves the Federal Election Commission (FEC), the Campaign Legal Center, and the political action committee Correct the Record. The Campaign Legal Center alleged that Correct the Record coordinated with Hillary Clinton's 2016 presidential campaign and spent close to $6 million without disclosing these expenditures as contributions. Correct the Record argued that these expenditures were exempt from disclosure due to the FEC's "internet exemption," which exempts unpaid internet communications from contribution limitations and disclosure requirements.The FEC dismissed the complaint, leading to a lawsuit by the Campaign Legal Center. The district court ruled in favor of the Campaign Legal Center, finding that the FEC's dismissal was contrary to law. The FEC appealed this decision.The United States Court of Appeals for the District of Columbia Circuit affirmed the district court's decision. The court held that the FEC's interpretation of the "internet exemption" was contrary to the Federal Election Campaign Act's regulation of coordinated expenditures. The court also found that the FEC acted arbitrarily and capriciously in dismissing allegations of coordination between Correct the Record and the Clinton campaign. The case was remanded back to the FEC for further action consistent with the court's decision. View "Campaign Legal Center v. Federal Election Commission" on Justia Law

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In 2016, Jesse Benton, a political operative, received funds from Roman Vasilenko, a foreign national, and contributed those funds to a fundraiser supporting then-Presidential candidate Donald Trump. Benton was subsequently convicted of six felonies related to the unlawful contribution and related campaign finance filings. Benton appealed his conviction on several grounds, including challenges to the government’s decision to prosecute campaign finance crimes under the Sarbanes-Oxley Act, the admissibility of an earlier pardoned conviction, the sufficiency of the evidence, and the jury charge.The District Court denied Benton's motion to dismiss the charges, ruling that the Sarbanes-Oxley Act could be applied to false campaign finance filings. The court also allowed the admission of Benton's earlier pardoned conviction under Federal Rule of Evidence 404(b) and its use at sentencing. After a three-day jury trial, Benton was found guilty on all counts. He was sentenced to eighteen months' incarceration and twenty-four months' supervised release.On appeal, the United States Court of Appeals for the District of Columbia Circuit affirmed the district court's decision. The court held that the government had discretion to prosecute under either the Sarbanes-Oxley Act or the Federal Election Campaign Act (FECA). The court also found no error in the district court's admission of Benton's pardoned conviction under Rule 404(b) and declined to review Benton's challenge to the use of the pardoned conviction at sentencing. Finally, the court rejected Benton's challenges to the jury instructions, finding that any error was invited by Benton himself. View "United States v. Benton" on Justia Law

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In a case concerning allegations that New Republican PAC and Senator Rick Scott violated several election laws, the United States Court of Appeals for the District of Columbia Circuit affirmed the dismissal of two administrative complaints made by End Citizens United PAC. The first complaint alleged that Scott became a "candidate" the same month he became chairman of New Republican, failed to register his campaign until nearly a year later, and failed to make the necessary filings and reports to the Federal Election Commission. The Commission dismissed this complaint based on prosecutorial discretion. The second complaint alleged unlawful coordination between Scott and New Republican, asserting that New Republican had improperly contributed to Scott's campaign by coordinating with Scott to purchase commercials. The Commission dismissed this complaint for lack of evidence supporting the coordination claim. The Court of Appeals held that the dismissal of the first complaint was unreviewable due to it being based on prosecutorial discretion, and that the dismissal of the second complaint was not contrary to law. View "End Citizens United PAC v. FEC" on Justia Law

Posted in: Election Law
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The United States Court of Appeals for the District of Columbia Circuit reviewed the Federal Election Commission's (FEC) dismissal of an administrative complaint by the Campaign Legal Center (CLC). The CLC alleged campaign finance violations by two presidential campaign committees, claiming that they concealed over $750 million in expenditures by routing them through sham payments to two LLCs. The FEC dismissed the complaint, invoking prosecutorial discretion. The CLC argued that the FEC's invocation of discretion was dependent on legal analysis and was thus subject to judicial review under the Federal Election Campaign Act. The district court concluded that the FEC's reliance on considerations of prosecutorial discretion was separate from its legal analysis and precluded judicial review.On appeal, the Court of Appeals affirmed the district court's decision. The court held that the FEC's reasons for dismissal, which included resource allocation concerns, potential litigation risks, and a shifting regulatory landscape, were distinct considerations of prosecutorial discretion that did not solely rest on legal interpretation, and therefore were not reviewable by the court. The court rejected the CLC's argument that the FEC's invocation of discretion was intertwined with its legal analysis, stating that the agency's estimation of the resource demands of the proposed investigation and its potential size and scope bore no discernable relationship to any legal inquiry. View "Campaign Legal Center v. FEC" on Justia Law

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In a case involving former U.S. President Donald J. Trump, the U.S. Court of Appeals for the District of Columbia Circuit has partially upheld and partially vacated a lower court's order restricting Trump's public statements about the trial. The case stems from Trump being indicted for conspiring to overturn the 2020 presidential election through unlawful means and for obstructing the election’s certification. Trump had posted numerous statements on social media attacking potential witnesses in the case, the judge, and the prosecution team. The lower court issued an order restraining the parties and their counsel from making public statements that "target" the parties, counsel and their staffs, court personnel, and "any reasonably foreseeable witness or the substance of their testimony." On appeal, the District of Columbia Circuit affirmed the order insofar as it prohibited all parties and their counsel from making public statements about known or reasonably foreseeable witnesses concerning their potential participation in the investigation or in the criminal proceeding. The court also upheld the order to the extent it prohibited parties and their counsel from making public statements about counsel in the case other than the Special Counsel, members of the court’s staff and counsel’s staffs, or the family members of any counsel or staff member, if those statements were made with the intent to materially interfere with the trial or with the knowledge that such interference was highly likely to result. However, the court vacated the order to the extent it covered speech beyond these categories. The court found that the order was justified by a sufficiently serious risk of prejudice to an ongoing judicial proceeding, that no less restrictive alternatives would adequately address that risk, and that the order was narrowly tailored to ensure the fair administration of justice while also respecting Trump's First Amendment rights. View "USA v. Donald Trump" on Justia Law

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The federal government funds certain expenses incurred by presidential candidates at specific times during their primary campaigns. Jill Stein, who ran for President in 2016, contends that a temporal limit on this funding unconstitutionally discriminates against minor-party candidates. Stein also contests an administrative ruling that she forfeited the right to document certain costs of winding down her campaign, which could have offset a repayment obligation that she owed the government.   The DC Circuit denied her petition. The court explained that FEC regulations required her to reassert the issue in her written submission for administrative review. Further, Stein argued that the Commission should be estopped from claiming forfeiture because its audit report stated that the winding down costs “estimated” for the period between September 2018 and July 2019 “will be compared to actual winding down costs and will be adjusted accordingly.” The court wrote that it does not read this statement to relieve Stein of her duty to address winding down costs in her request for administrative review, which was filed near the end of that period. The court explained that it recognizes that Stein could not predict the exact amount of future winding down costs. But she could have done much more to alert the FEC that she expected those costs to exceed the estimates in the audit report—and to do so by a substantial amount. View "Jill Stein v. FEC" on Justia Law

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This appeal arises from the denial of a motion for a default judgment. End Citizens United (“ECU”) sued the Federal Election Commission alleging the Commission unlawfully dismissed its administrative complaint. Although the Commission failed to enter an appearance or otherwise defend the lawsuit, the district court denied ECU’s motion based on the Commission’s after-the-fact explanation for its dismissal. The issue on appeal is whether the district court erred by relying on the non-contemporaneous explanation in light of well-established circuit precedent requiring the Commission to provide a timely explanation of its reason for dismissing an administrative complaint.   The DC Circuit reversed the district court’s judgment and remanded the case to it with instructions to return the case to the Commission. The court explained that here the Commission has not defended its decision in court, much less the reasoning in the Dickerson/Cooksey statement. Moreover, the Commission’s composition has apparently changed since its dismissal of ECU’s administrative complaint so that different “agency personnel” would consider the matter on remand. In any event, the Supreme Court has contemplated that “a reviewing court . . . will set aside” Commission action taken contrary to law and “remand the case,” even though the Commission might later “reach the same result exercising its discretionary powers lawfully.” View "End Citizens United PAC v. FEC" on Justia Law

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Heritage Action for America appeals the denial of its post-judgment motion to intervene as of right, in Campaign Legal Center’s challenge to the Federal Election Commission’s failure to act on its administrative complaint. The district court found the motion was untimely because prior to judgment, it became clear Heritage Action’s interests would not be protected and delay in considering the complaint would prejudice Campaign Legal to the detriment of Congress’ enforcement scheme.   The DC Circuit affirmed the denial of intervention and dismissed the merits appeal for lack of appellate jurisdiction. The court explained that Heritage Action had not yet received the Commission’s response to a Freedom of Information Act request filed 41 months after the administrative complaint, but the record supports the district court’s findings upon applying the test in Cameron v. EMW Women’s Surgical Center, 142 S. Ct. 1002, 1012 (2022). Further, Heritage Action was not a party to the default judgment in Campaign Legal’s lawsuit against the Commission and would not be prevented from arguing that Section 30109(a)(8)(C)’s prerequisites have not been met. View "Campaign Legal Center v. FEC" on Justia Law

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Arthur Gary, General Counsel of the Justice Management Division at the Department of Justice, sent a letter to the Census Bureau requesting the addition of a citizenship question to the 2020 Census. Then-Secretary of Commerce relied on the Gary Letter to direct the Census Bureau to include a citizenship question on the Census questionnaire.Shortly after the Department of Justice sent the Gary Letter, the Campaign Legal Center filed a Freedom of Information Act (“FOIA”) request with the Justice Department seeking documents that would explain how and why the agency came to request the citizenship question. The Department withheld more than 100 pages of responsive documents under FOIA Exemptions 5 and 6. The district court held that some of the Justice Department’s withholdings based on the deliberative process privilege were improper, and ordered the Department to produce those documents.   The D.C. Circuit reversed the district court’s judgment as to all drafts of the Gary Letter and most of the associated emails. The court remanded the withholding decision regarding the five emails identified above for further consideration. The court held that the Justice Department properly withheld non-final drafts of the letter and that most of the Department’s redactions of associated emails were lawful. The court reasoned that the process of drafting the Gary Letter to request the addition of a citizenship question in a way that protected the Department’s litigation and policy interests involved the exercise of policymaking discretion, and so the letter’s content itself was a relevant final decision for purposes of FOIA’s deliberative process privilege. View "Campaign Legal Center v. DOJ" on Justia Law