The New York Times Reports the NRA Intends to Reincorporate in Texas
On January 15, 2021, The New York Times reported that the National Rifle Association of America (NRA) plans to reincorporate in Texas and has filed for bankruptcy protection.
According to the report, the NRA is seeking to "circumvent New York's legal jurisdiction" after New York Attorney General Letitia James filed a lawsuit in August 2020 seeking to dissolve the Association.
“Under this plan, the Association wisely seeks protection from New York officials who it believes have illegally weaponized their powers against the NRA and its members,” William A. Brewer III, the NRA’s lead outside attorney, told the Times.
The article notes that NRA CEO and EVP Wayne LaPierre says the plan "represents a pathway to opportunity, growth and progress."
“Obviously, an important part of this plan is ‘dumping New York,’” LaPierre added. “The NRA is pursuing reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.”
Texas Governor Greg Abbott hailed the NRA news, tweeting: “Welcome to Texas – a state that safeguards the Second Amendment.”
Additional information about the NRA's plan to reincorporate in Texas can be found at www.nraforward.org.
Read more from The Times here.
Washington Post: Republican Attorneys General Back NRA in Fight Against New York Effort to Dissolve Gun Rights Group
On December 22, 2020, The Washington Post reported that 16 attorneys general filed an amicus brief in support of a lawsuit by the National Rifle Association of America (NRA) against New York Attorney General (NYAG) Letitia James.
“The New York Attorney General cannot be allowed to wield the power of her office to discriminate against the NRA simply because she does not like its members’ political views, advocacy or defense of a constitutional right,” the GOP attorneys general said in the brief, which was led by Arkansas Attorney General Leslie Rutledge.
In August, Brewer client, the NRA, filed a lawsuit that alleges that the NYAG weaponized her regulatory and legal powers to harm a political adversary. The lawsuit notes that James vowed to "target the NRA" and "investigate the legitimacy of the NRA as a charitable organization" while on the campaign trail in July 2018 – before taking office and without any evidence of compliance failures.
In November, NYAG James filed a motion to dismiss the lawsuit. On December 21, 2020, the NRA filed a memorandum of law in opposition to the motion to dismiss.
"In this filing, the NRA confronts the efforts of the New York Attorney General to avoid legal scrutiny for the obvious abuse of the powers of her office,” said William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel to the NRA. "The NRA believes James' open hostility toward the Association and its law-abiding members is unconscionable. Courts have repeatedly held that the underlying chilling effects of conduct like James’ require judicial scrutiny."
San Francisco Hotel Owner Scores Early Wins Against Virgin Hotels, Lawsuit Proceeds to Trial
November 25, 2020 – Brewer, Attorneys & Counselors today announced two positive developments for its client, 250 Fourth Development L.P. (“Hotel Owner”), in its dispute with Virgin Hotels San Francisco (“Virgin Hotels”). In sum, the court issued two important decisions. First, the court overruled Virgin Hotels’ attempts to avoid having to face Hotel Owner’s claims against Virgin Hotels for damages done to the project before Owner terminated the management agreement. Second, on November 20, 2020, the court denied Virgin Hotels’ efforts to freeze more than $2 million of Hotel Owner’s property. The case now proceeds toward trial.
The underlying legal dispute began on May 6, 2020, when Virgin Hotels filed a lawsuit alleging the Hotel Owner’s termination of the Hotel Management Agreement (“HMA”) on April 8, 2020, violated that agreement. On July 16, 2020, the Hotel Owner filed its Original Cross-Complaint in the Superior Court of the State of California, County of San Francisco. A month later, on August 19, 2020, the Hotel Owner filed its First Amended Cross-Complaint, alleging that Virgin Hotels made numerous misrepresentations to Hotel Owner by, among other things, knowingly overstating Hotel gross revenues to inflate its management fee and misrepresenting bonus amounts due to Hotel employees. As a result of the alleged fraud and mismanagement, the Hotel Owner claims the loss of tens of millions of dollars in unrealized hotel profits and the lost value of the property.
In total, the Hotel Owner asserts five causes of action against Virgin Hotels, including breach of contract and fraud. Virgin Hotels demurred, or moved to dismiss, the claims. On October 30, 2020, the court entered an order overruling the demurer in its entirety, vindicating each and every one of the Hotel Owner’s claims. In so doing, the court noted that the First Amended Cross-Complaint “adequately pleads constructive fraud.”
“Our client is grateful that this case is moving forward and is eager to proceed to trial,” said William A. Brewer III, partner at Brewer and counsel to 250 Fourth Development, L.P. “For years, our client put faith in Virgin and its assurances that it was creating a first-class brand. Our client believes that not only has Virgin failed to create the ‘promised brand,’ it grossly mismanaged the San Francisco property in an effort to boost Virgin Hotels’ own bottom line.”
After failing to obtain dismissal of Hotel Owner’s claims, Virgin Hotels filed an application for a writ of attachment on Hotel Owner’s property – to secure what Virgin Hotels claimed was over $2 million in expenses that Virgin Hotels had either paid or was owed to third parties. On November 20, 2020, the court denied this request in its entirety.
New York Law Journal: NRA Seeks to Move New York Attorney General's Lawsuit Out of New York
On November 13, 2020, the New York Law Journal reported that the NRA is "battling in court on two fronts to move a high-profile lawsuit brought by New York Attorney General Letitia James" out of New York City.
The report states that the NRA, which is represented by Brewer, has asked the U.S. Judicial Panel on Multidistrict Litigation (MDL) to "send four federal lawsuits focused on its financial troubles to a courtroom in North Texas."
The NYLJ reports that William A. Brewer III, counsel to the NRA, acknowledged that the request to move, among others, the lawsuit filed by James, is "a bit unusual." However, he contends that without an MDL, depositions in the various cases will be a "nightmare" for the NRA.
“This is not typical, but I don’t think it’s a stretch either,” Brewer said of his motion.
“We’re trying to make sure we get everything in the right forum,” he said. “We don’t have any concern with the venues for trial. It’s rather that the cases should be coordinated given the significant overlap in pretrial activities, so that the documents, the depositions and pretrial activities are available in all those cases.”
New York Post Reports on Lawsuit Filed Against Uber on Behalf of Assault Victim
On October 31, 2020, the New York Post reported that Brewer, Attorneys & Counselors filed a lawsuit against Uber on behalf of its client, identified in court papers as "Jane Doe."
As the Post reports, Brewer's client alleges she was attacked by her Uber driver in 2018, during what she assumed would be a safe ride home. She alleges that the incident left her with a fractured shoulder, post-traumatic stress disorder and years of anxiety and depression.
The lawsuit, filed in Manhattan Federal Court, alleges that even though Uber has acknowledged that thousands of its female passengers have been sexually assaulted during rides, the company still fails to monitor its drivers with in-vehicle video or by checking when a driver deviates from an assigned route.
“It infuriates me. I don’t think they’re doing enough to protect women. Here they are promoting being a safe ride home," the woman told the Post, noting that she'd been an Uber VIP for five years. “I had no clue you would basically be on your own if this happens."
William A. Brewer III, partner at Brewer and counsel to "Jane Doe" said, "Uber knew that this car picked this woman up, they knew where the intended location was and they knew that this Uber driver stopped off route for 15 minutes. They knew it.
“They also know that thousands and thousands of women have been sexually assaulted before that night by their drivers, yet they’re advertising themselves as the safe alternative to a yellow cab or some other type of transit after dark,” he continued.
The National Law Journal Reports NRA's Claims Against Winston & Strawn Can Proceed
On October 23, 2020, The National Law Journal reported that Brewer, Attorneys & Counselors’ client, the NRA, can move forward with part of its lawsuit against Winston & Strawn.
According to the report, "Judge Robert Rigsby, of the District of Columbia Superior Court, said the NRA had 'sufficiently stated' a claim against Winston & Strawn for unjust enrichment, after an email allegedly revealed a Winston partner’s undisclosed ties to a neutral in an arbitration."
The lawsuit, filed July 29, 2020, in the Superior Court of the District of Columbia, alleges that in a recent arbitration, the NRA discovered on the eve of the final hearing that the arbitrator, Judge Richard Neville, was conducting a secret email discussion group – participated in by a senior partner of opposing counsel, Winston – where lurid white nationalist propaganda was shared and promoted. The communications revealed that Judge Neville shared a close, undisclosed relationship with Winston Partner Terry Grimm, according to the NRA. The NRA brought the action to recover amounts expended during the corrupted arbitration proceeding, and to uncover facts about the extent of the bias that tainted the proceeding.
“We appreciate the prompt attention of the court—and look forward to bringing the facts regarding Winston & Strawn’s undisclosed relationship with Judge Neville into full public view,” William A. Brewer III, partner at Brewer and counsel to the NRA, said in a statement. “This is a disturbing record. There should be no place in the legal profession that tolerates such racist communications—or which turns a blind eye to the principles that govern the sanctity of the arbitration process.”
ACLU Backs Brewer Client NRA After New York AG's Action
August 26, 2020 – The American Civil Liberties Union (ACLU) is backing Brewer, Attorneys & Counselors client the National Rifle Association (NRA) as New York Attorney General (NYAG) Letitia James attempts to dissolve the organization.
ACLU National Legal Director David Cole wrote a commentary published in The Wall Street Journal titled, “The NRA Has a Right to Exist: New York Attorney General Letitia James’ attempt to dissolve the 150-year-old organization is unconstitutional government overreach."
Cole writes that, “Our democracy is premised on the right of association. The First Amendment protects not only the right to speak, but also to band together with others to advance one’s views. Making or resisting change in a democracy requires collective action, and a healthy democracy therefore demands a robust ‘civil society.’ The right to associate can’t survive if officials can shut down organizations with which they disagree.”
Cole points out that the NRA’s lengthy history includes “a range of lawful and properly tax-exempt pursuits” – including teaching gun safety, educating the public and lobbying for gun rights laws.
He also observed that two years ago, the ACLU supported the NRA’s lawsuit against New York Governor Andrew Cuomo charging that he had violated the group’s First Amendment rights. Read more.
Arkansas AG Condemns Attack on NRA, Praises NRA Legal Strategy
NBC News
Arkansas Attorney General Leslie Rutledge issued a commentary today condemning a lawsuit filed by New York Attorney General Letitia James against Brewer client, the National Rifle Association (NRA). The commentary, “Guns, The NRA and the Second Amendment are Under Assault from the Left,” dated August 21, 2020, exposes the political motivations behind the James complaint.
Rutledge writes, “Just three months before a presidential election, New York Attorney General Letitia James has filed suit against the NRA and several members of its leadership, seeking to have the gun rights organization dissolved. This lawsuit, filed in New York state court, is the apex of a longstanding feud between the NRA and the Democratic state attorney general. James attacked the NRA while she was a candidate for attorney general, calling it a 'terrorist organization' and a 'criminal enterprise.'”
The Arkansas AG credits the NRA – “a “good defender of freedom” – for confronting the James attack.
Rutledge writes, “…like any good defender of freedom, the NRA is fighting back. The same day New York filed its state suit, the NRA filed its own lawsuit in federal court, pointing to then-candidate James’ campaign promise to ‘take on the NRA’ if elected. The NRA claims that James’ lawsuit is nothing more than a politically motivated stunt to deliver on that promise — not a response to any real fraud.”
She continues, “The NRA’s lawsuit is based on the First Amendment and similar New York state law. The NRA argues that it is being targeted for its pro-Second Amendment advocacy and that James’ request to dissolve the NRA is nothing more than an attempt to silence political speech.”
Read the editorial [here.]