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The National Association of Manufacturers (NAM) is appealing a federal court order to dismiss the group’s lawsuit challenging a new ethics and lobbying law.
Judge Colleen Kollar-Kotelly of the U.S. District Court of the District of Columbia ruled Friday against the trade association’s suit, which took issue with a specific provision of the new law that would require “stealth coalitions” to disclose their member companies if they contributed at least $5,000 per quarter to the coalition or actively participated in a lobbying campaign.
The trade group argued that the measure hinders members’ constitutional rights to freely associate and can also lead to the harassment of their individual members. Judge Kollar-Kotelly disagreed, saying the provision was narrowly tailored to serve government interests.
“We remain convinced that many of the law’s burdensome and intrusive disclosure requirements will have a serious chilling effect on the constitutional rights of our members,” said former Michigan Gov. John Engler (R), the NAM’s president, in a statement. “We are committed to protecting the rights of everyone in this country, including those who work for manufacturers, to freely associate and to exercise their First Amendment rights without the government interfering with or chilling them.”
Specifically, the NAM will seek a temporary injunction that would delay the law’s enforcement during the appeal. Under the new lobbying law, entities are to disclose all lobbying activities, including coalitions’ membership, by April 21. The appeal will move to the U.S. Court of Appeals for the District of Columbia.
Those who opposed NAM’s suit are optimistic the judge’s decision will stand.
“We think Judge Kollar-Kotelly’s decision was solid and thorough,” said Tara Malloy, associate counsel for the Campaign Legal Center (CLC), a public interest group. “We are confident it will hold up in a court of law.”
Malloy was CLC’s lead attorney on an amicus brief filed along with Democracy 21 and Public Citizen asking for the NAM’s lawsuit to be dismissed. The watchdog groups also lobbied for the provision when the new law was passed last year.
By asking for the injunction, the NAM may postpone disclosure of coalitions’ members for all entities, said Quentin Riegel, the trade association’s vice president for litigation.
Nevertheless, the NAM is planning to file its lobbying report under the new law. It remains undecided on how best to meet the disclosure requirements for coalitions.
Malloy said if the court does grant an injunction to stay the provision’s enforcement, it would likely depend on who would be affected.
“It probably would depend on the nature of the injunction. If the injunction only applied to the NAM, they would only get a temporary stay,” Malloy said.
Riegel said the trade association might have its appeal filed as soon as today with the court.
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