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THE NATIONAL RIFLE ASSOCIATION’S (NRA’S) FIRST AMENDMENT RETALIATION AND SELECTIVE ENFORCEMENT COUNTERCLAIMS AGAINST THE NEW YORK ATTORNEY GENERAL (NYAD) WERE PROPERLY DISMISSED; WITH RESPECT TO THE RETALIATION COUNTERCLAIM, THE NYAD DEMONSTRATED PROBABLE CAUSE TO SUE THE NRA (FIRST DEPT).

The First Department, in a full-fledged opinion by Justice Scarpulla, determined the National Rifle Association’s (NRA’s) First Amendment retaliation and selective enforcement counterclaims against the New York Attorney General (NYAG) were properly dismissed. The First Amendment retaliation claim was properly analyzed under the “no probable cause” standard. The underlying action by the NYAD alleged improper use of NRA funds by the defendants, among other allegations:

… [T]he NRA asserted counterclaims against the NYAG for First Amendment retaliation and selective enforcement. Specifically, the NRA alleged that while the NYAG was campaigning for her current position, she displayed animus towards the NRA by promising to “take down the NRA” using her power as attorney general to regulate charities. James allegedly called the NRA a “terrorist organization” and “criminal enterprise.” The NRA further alleged that the NYAG, rather than working with the NRA to fix issues, as it has done in other cases involving not-for-profit corporations, instead sought dissolution, an extreme remedy not frequently pursued by the NYAG. * * *

On this issue of first impression, we hold that the proper legal standard applicable to First Amendment retaliation claims in civil enforcement proceedings such as this one is the no probable cause standard articulated in Hartman and Nieves (see generally DeMartini v Town of Gulf Stream, 942 F3d 1277, 1304-1306 [11th Cir 2019] …, McBeth v Himes, 598 F3d 708, 717-720 [10th Cir 2010]). …

Applying the no probable cause standard here, the NRA’s First Amendment retaliation counterclaims were properly dismissed for lack of causation … . That is, the NYAG showed as a matter of law that it had probable cause to investigate and sue the NRA … . People v National Rifle Assn. of Am., 2023 NY Slip Op 06819, Second Dept 12-27-23

Practice Point: The correct standard for analyzing a First Amendment retaliation claim is whether there was “no probable cause” to commence the underlying lawsuit. Here the First Department determined the NYAG had probable cause to sue the NRA, which defeated the NRA’ First Amendment retaliation counterclaim.

 

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