NRA Prevails in Dissolution Case

 

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Brewer, Attorneys & Counselors achieved a major legal victory on behalf of the National Rifle Association of America (“NRA”) – as a New York court struck down an unlawful attempt by New York Attorney General (“NYAG”) Letitia James to dissolve the historic gun rights organization. The NYAG filed a dissolution lawsuit against the NRA in August 2020.

On March 2, 2022, the Hon. Joel M. Cohen of the New York State Supreme Court issued an opinion that vindicated the NRA’s position. The judge found that the NYAG’s efforts ran afoul of New York law and the First Amendment.

The judge described the NRA as “a prominent advocacy organization that represents the interests of millions of members,” and added that the NYAG failed to meet the “rigorous” standard for state-sponsored dissolution of such a group – and her attempt raised free speech concerns.

Justice Cohen wrote, “The Attorney General’s claims to dissolve the NRA are dismissed.” Importantly, his opinion added, “The Complaint does not allege that any financial misconduct benefited the NRA, or that the NRA exists primarily to carry out such activity, or that the NRA is incapable of continuing its legitimate activities on behalf of its millions of members.”

The opinion also stated, “…dissolving the NRA could impinge, at least indirectly, on the free speech and assembly rights of its millions of members. While that alone would not preclude statutory dissolution if circumstances otherwise clearly warranted it, the Court believes it is a relevant factor that counsels against State-imposed dissolution, which should be the last option, not the first.”

Speaking of the decision, famed law industry observer Walter Olson writes, “…[this] decision is a victory for liberty and the rule of law and a reproach to politically minded enforcement.”

This decision comes approximately one year after a May 2021 decision in federal court that recognized the NRA’s commitment to good governance.

During a 12-day hearing that occurred over approximately four weeks in early 2021, the NRA established that it had adopted new policies and accounting controls, displaced many “insiders” who had allegedly abused the Association, and accepted reparations for costs voluntarily determined to be excess benefits. The hearing proceedings focused on the NRA’s compliance efforts, and the organization’s renewed commitment to good governance.

In an opinion, dated May 11, 2021, Judge Harlin D. Hale wrote, “In short, the testimony…suggests that the NRA now understands the importance of compliance…the NRA can pay its creditors, continue to fulfill its mission, continue to improve its governance and internal controls, contest dissolution in the NYAG Enforcement Action, and pursue the legal steps necessary to leave New York.”

The firm continues to defend the NRA against remaining claims in the NYAG lawsuit, but the judge’s ruling confirmed that the NYAG could not shut down the NRA or seize its assets.

“We applaud the court’s recognition that dissolution is neither appropriate nor justified,” said William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel to the NRA. “We look forward to continuing the defense of the NRA – and proving that it acts in the best interests of its members and the Second Amendment freedoms in which they believe.”

The ruling made national headlines, as one of the most closely-followed cases of its kind.

The Wall Street Journal reported that the ruling by Judge Cohen “represented a big win for the NRA.” The Daily Caller reported that the court handed the NRA a victory in a legal battle over its existence.

The Associated Press reported that the judge “rejected” the NYAG’s effort to put the NRA out of business. The AP noted that in a previous court filing, attorneys called the lawsuit filed by the NYAG “a blatant and malicious retaliation campaign against the NRA and its constituents based on her disagreement with the content of their speech.”

The NRA celebrated the significant legal victory.

“This is a resounding win for the NRA, its 5 million members, and all who believe in this organization,” said NRA President Charles Cotton. “The message is loud and clear: the NRA is strong and secure in its mission to protect constitutional freedom.”

Brewer added that the “developments underscore the simple truth that since taking office in 2019, the Attorney General has pushed a contrived narrative about the NRA in her attempt to support a dissolution claim that is improper. This is a victory for not only the NRA, but all who believe in the right to free speech and association.”

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