NRA’s Attempt To Intervene Denied

The NRA sought to intervene in the Second Amendment Foundation’s case entitled Second Amendment Foundation et al v. BATFE. (corrected case title) This is a case challenging the Biden pistol-brace ban. As with Mock v. Garland, the plaintiffs including all members of the Second Amendment Foundation were covered by the injunction against the enforcement of the pistol-brace ban while the 5th Circuit Court of Appeals is taking up the issue. When the NRA sought to intervene, the Second Amendment Foundation did not oppose this motion but it was opposed by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

At this point, I think it is important to note that the brief and motion of the NRA seeking intervenor status in this case was signed by William Brewer III as the attorney of record. At the time the NRA filed to intervene, I found it more than surprising as Brewer has little to no expertise in Second Amendment law.

Today in a 12 page Memorandum Opinion and Order, US District Court Judge Jane Boyle denied the NRA’s motion for intervenor status. The net result is that NRA members are not covered by the injunction against enforcement of the pistol-brace ban.

The Federal Rules of Civil Procedure allow intervention by another party in two ways. One is by right and the second is by permission of the judge if he or she finds it warranted.

An intervention by right must be timely. That is a threshold requirement which must be met. Judge Boyle found the NRA’s motion was not timely. After reviewing some of the history of this case which began long before the pistol-brace ban was even finalized, she concluded:

On those facts alone, it is hard to conclude that the NRA’s Motion to Intervene is timely. But the unusual circumstances of this case further militate against such a finding. Specifically, despite knowing of the Rule and Plaintiffs’ limited injunction request, the NRA only sought to intervene once this Court granted Plaintiffs’ motion for preliminary injunction pending the Fifth Circuit appeal in Mock. To find intervention timely under these circumstances would seemingly incentivize “injunction shopping” among putative intervenors seeking to challenge agency actions.

Judge Boyle goes on to add that the NRA knew of the BATFE’s proposed rule for more than a year before it moved to intervene. She then goes on to say that the interests of the NRA members will be adequately represented by the plaintiffs in this case.

In terms of the case for a permissive intervention, Judge Boyle found the same considerations that prevented intervention by right also applied here. Namely that the NRA’s interests are adequately represented by the existing plaintiffs. She notes that any ruling to the contrary would create a “perverse” precedent for potential intervenors to go case shopping for cases where a preliminary injunction had already been granted. Accordingly, she denied the NRA’s motion to intervene on both by right and by permission.

Given this ruling, the NRA will need to hope for success in their case in North Dakota which they are backing. That case, Firearms Regulatory Accountability Coalition v. Garland, does not seem to have any injunctions issued as of now.

Chalk up this denial as another loss in court by Bill Brewer while representing the NRA and taking as much of the member’s money as possible.

Marshall Moves To Intervene In NRA Dissolution

In September, NY Supreme Court Judge Joel Cohen ruled that Frank Tait and Mario Aguirre did not have standing to bring a Motion to Intervene in the New York Attorney General’s case asking for dissolution of the NRA. Among the things he mentioned at the time in ruling against them was the timeliness issue and that 5% of the members were not part of the Motion. At the time of the hearing, it was mentioned in court that a director of the NRA would be joining the Motion to Intervene but Judge Cohen said he could only rule on what was in front of him

Today, Rocky Marshall, a NRA Director, filed a Motion to Intervene in the case as a defendant, claimant, and counter claimant. New York Not-for-Profit Corporation Law § 720 b (1) gives a director the statutory right to seek relief against a defendant for neglect, mismanagement, or “other violation of his duties in the management and disposition of corporate assets committed to his charge.” A director can also seek relief against a defendant for the loss or waste of corporate assets due to the defendant’s negligence, failure to perform, or other violations of his duties. New York CPLR § 1012 states that Mr. Marshall has an absolute right to intervene based upon NPCL § 720 b (1)

Remember that not only is the NRA a defendant in this case but so are Wayne LaPierre, Woody Phillips, Josh Powell, and John Frazer.

One of the grounds for seeking the Motion to Intervene is:

The Proposed Intervenor seeks to assure that the NRA as an entity has independent, conflict-free counsel. The law firm presently representing the NRA is irreconcilably conflicted and the NRA is alleged by the Attorney General to be controlled by one or more of the individual defendants. Thus no present party or law firm can adequately protect the NRA’s rights as an entity separate from the individual defendants.

The Memorandum of Law that accompanies the Motion to Intervene is quite interesting. It starts out by saying that Letitia James is wrong when she asserts that the NRA cannot be rehabilitated and dissolution is the only answer. It continues to say that the NRA and its leadership are wrong when they say it is nothing more than a political attack and everything is fine. It goes on to say that James cannot prove that dissolution of the NRA would be “beneficial to the NRA’s members”. It continues:

On the other hand, to rule for the Defendants merely requires that the Court hold its nose and swallow their claims that the NRA Board has investigated the Attorney General’s allegations and found nothing wrong, disregarding abundant evidence of the Individual Defendants’ serious breaches of duty and conflicts of interest, some of which is already before the Court.

Mr. Marshall goes on to say that the Board has failed in its fiduciary duties to the NRA and to its members. Problems have been presented to the Board and they have ignored them while also taking no action against the named individuals (LaPierre, Powell, Phillips, and Frazer).

Thus, the Memorandum states the Board should be dissolved because they are not independent of LaPierre and that a receiver be appointed. Mr. Marshall suggests he would be willing to serve as a temporary receiver to get a proper accounting and to elect a new independent board.

As to the old Board and leadership, it must go:

As his proposed Answer says, Mr. Marshall recognizes and appreciates that without this action no meaningful change in the NRA’s governance will likely occur due to Defendant LaPierre’s total control of the executive leadership and his dominance of the Board. To the extent possible Mr. Marshall will work with the Attorney General to reform the NRA’s
leadership for the benefit of all rank-and-file NRA members. Mr. Marshall will pursue recovery of all NRA funds wrongfully paid to the third parties implicated but not sued by the AG, while vigorously opposing the AG’s dissolution claim.

Accompanying the Motion and the Memorandum are 12 exhibits which consist of a proposed answer, numerous emails, NRA Board minutes, Marshall’s bio and resume (which is very impressive), and a compilation of Form 990 data. Rather than go through each of these, I am just going to put the links to them below.

Proposed Answer

Liptak Email

North-Childress Letter

Brewer legal bills

NRA Board Minutes 1/7/2021

Email to Board, 3/15/2021

Email to Board, 3/17/2021

Compilation of Form 990 data

NRA Board Minutes, 3/28/2021

Email to Board re Brewer, 3/18/2021

Email to Board, 7/1/2021

Email to Board, 8/27/2021

Bio and Resume

I would be remiss to not mention that Attorney General Letitia James released a statement today on Mr. Marshall’s Motion to Intervene. The only really relevant part was this:“While we continue to review this motion, we are glad to hear that Mr. Marshall agrees that Wayne LaPierre and his top lieutenants must be removed from the NRA. Our fight for transparency and accountability from the NRA and its leadership will continue because no organization is above the law.”

The Wall Street Journal reports that Willes Lee issued the official response from the NRA.

“It is unfortunate that Mr. Marshall aligns himself with those who continually attempt to intervene in the handling of NRA’s matters by its elected leadership. The NRA is a well-managed, actively engaged membership organization. We will continue on our current course of action—in the interests of our five million members and their Second Amendment freedoms.”

Any one who has read my blog for the last couple of years knows my opinion of Willes Lee. My biggest regret is that I endorsed him for the Board not once but twice. I was taken in by him like so many others. That someone of his ilk is in a leadership position at the NRA says everything you need to know about why Mr. Marshall’s Motion to Intervene must be granted.

Motion To Intervene Denied

As I said earlier today, there was the hearing on the Motion to Intervene this afternoon.

After hearing the arguments for and against, Judge Joel Cohen denied the Motion.

The basis for his decision as I can understand it is that having only two member representing the interests of the members was not enough. He kept referring to a 5% of the membership rule as the minimum needed to intervene. Even though the attorneys for the intervenors said they were representing a class of members, the judge disagreed. He kept coming back to the argument that if you let one group intervene then you have to let others intervene.

While it was assumed a sitting director would be joining the Motion to Intervene today, Judge Cohen said he could only rule on the motion in front of him. He did not rule out a revised Motion to Intervene with a sitting director as one of the intervenors.

It is a hell of thing when you have a group on one side that wants to do away with the NRA and a group on the other side that wants to keep looting it with no one allowed in the middle representing the millions of dues paying members.

Motion To Intervene Hearing Today

The hearing on the Motion to Intervene on behalf of the members of the NRA in the dissolution lawsuit will be held this afternoon. Judge Joel Cohen issued a notice on Tuesday that the hearing will proceed as scheduled. It is set for 2:30pm in Manhattan.

In his letter to the court on announcing a sitting director of the NRA would be joining the Motion to Intervene, attorney Taylor Bartlett gave the court the option of postponing it as he expected both the NRA and the NY Attorney General’s Office would ask for time. Bartlett did note that they were ready to go.

We will know the name of the director or directors who will be joining the suit later today. Given a sitting director has the absolute right to intervene and thus has standing, it will be interesting to hear the arguments against allowing it.

If I can find an audio link to the hearing, I will post it.

Stay tuned!

NRA Dissolution Lawsuit Promises To Get More Interesting

In June, Frank Tait and Mario Aguirre filed a motion seeking to intervene on behalf of NRA members in the NRA dissolution case brought by New York Attorney General Letitia James. Their contention, rightly in my opinion, was that no one was adequately representing the approximately five million NRA members.

As you might expect, both the Attorney General and the NRA have objected to this. A hearing is currently scheduled for September 9th to hear arguments relating to this motion.

Last year, I had some discussions with others who were interested in seeing an intervenor motion filed in the dissolution lawsuit. One of the major issues brought up was that there was some doubt that under New York that members themselves would have standing. It was thought that only a sitting director would have standing to intervene in the dissolution lawsuit.

We now know, thanks to a letter filed this afternoon with the court by Taylor Bartlett, attorney for Tait and Aguirre, that this issue will now be off the table. There will be one, if not two, sitting directors joining the motion to intervene on behalf of the members of the NRA.

William Brewer himself, the world’s most brilliant attorney according to some of the lesser minds on the NRA board, wasted no time filing a letter to the judge stating that he found the request for leave by the intervenors to file an amended motion “improper”. He then indicates in so many words that the NRA is prepared to fight this motion.

I have been told confidentially the name of one of the potential directors who will be joining in the motion to intervene. As such, I respect that trust and will hold off on announcing the name until it is announced in the court proceedings.

I would also point you to a post this afternoon by David Codrea concerning this letter to the court by Taylor Barlett for his take on it.