Citizens United v. FEC

  • April 15, 2013
    Guest Post

    by Alicia Plerhoples, Associate Professor of Law, Georgetown University Law Center

    I recently had the privilege of participating in a meeting of some leading and well-respected labor attorneys and scholars. Many questions were posed. With the decline of participation in labor unions, gutting of workers’ rights through “Right to Work” state legislation, and attempts to dismantle the National Labor Relations Board, what other legal mechanisms can be employed for the benefit of workers? Specifically, how can corporate laws facilitate workers’ rights? We also deliberated many possible advocacy avenues under corporate law including the following:  

    Reframe the argument against Citizens United and align workers with shareholders against unchecked corporate boards and management. Citizens United v. FEC recognized free speech rights under the First Amendment for corporations, including labor unions. While some advocate that labor unions take advantage of Citizens United through increased campaign activity and spending, labor unions face an uphill battle against anti-worker groups financed by better-funded corporate interests and wealthy individuals. Rolling back Citizens United is currently part of a larger worker rights’ plan, and one way to execute that plan (and garner a broader base of support) is to align workers’ interests with shareholder interests.

    The Supreme Court got Citizens United wrong by brushing aside an important corporate constituency -- shareholders. Retired Justice John Paul Stevens’ dissenting opinion was correct to argue that the majority opinion ignored the rights of shareholders. When corporations are allowed to spend unlimited treasury funds on “electioneering communications,” the corporate board chooses all aspects of the political donations -- which political groups to donate to, the timing of such donations, and whether to donate at all. Shareholders are effectively forced to contribute their money to political issues, even those that they oppose. When a shareholder invests in a corporation -- and realize that anyone in the United States whoever wants to retire must invest in corporations, whether directly or through mutual funds -- the shareholder is doing so for one purpose: to make money.

  • February 19, 2013

    by Jeremy Leaming

    If you thought the U.S. Supreme Court’s right-wing justices were finished tackling the scope and reach of campaign finance law with its 2010 Citizens United v. FEC, you were wrong.

    The high court, with its announcement today to review limits on contributions to candidates during two-year election cycles, could be ready to extend even more leeway to the nation’s most powerful to influence elections.

    The justices, as The Huffington Post’s Paul Blumenthal reports, agreed to review a case called McCutcheon v. Federal Election Commission, which will provide the opportunity to overturn the limits. As Blumenthal notes the limits on contributions were upheld in the Court’s Buckley v. Valeo case, but campaign finance regulations took a major hit with the Court’s Citizens United opinion, which gave corporations greater power to spend freely to influence elections.

    SCOTUSblog’s Lyle Denniston reports that a more pressing concern than tinkering with limits on campaign donations may be lurking in the background. “Since the Supreme Court’s landmark opinion in 1976 in Buckley v. Valeo, it has always given government more leeway to control contributions to candidates or political organizations than over spending by candidates or by independent political activists.  That differing constitutional treatment potentially is at stake in the new case ….”

    Denniston continues, “What is at stake directly is the constitutionality of the two-year ceilings that federal law sets on what an individual can give during a campaign for the presidency or Congress, in donations to candidates, to political parties, or to other political committees.

    Democracy 21, a nonpartisan group working to “eliminate undue influence of big money in American politics,” said the outcome of the case could have “enormous consequences for the country."

    The group’s president, Fred Wertheimer, in a press statement, said the “aggregate limit on contributions by individuals is necessary to prevent circumvention of the limits on contributions to candidates and political parties and the prohibition on federal officeholders soliciting huge corrupting contributions.”

    Wertheimer and the group's counsel, Don Simon, also exmaine in a new ACS Issue Brief the extensive problems with the Federal Election Commission, the agency charged with enforcing the nation's campaign finance laws. The two write that the president has failed to appoint commissioners to the six-member entity and that the FEC is now controlled by members who are "ideologically opposed to the campaign finance laws."

    If the high court were to gut or weaken the limit on contributions it would “open the door to $1 million and $2 million dollar contributions from an individual buying corrupting influence with a powerful officeholder soliciting these contributions, and with the political party and federal candidates benefiting from these seven figure contributions.”

  • December 11, 2012
    Guest Post

    by Dan Mayer, Legal Fellow at Public Citizen’s Democracy Is For People Campaign, which is working towards a constitutional amendment overturning Citizens United v. FEC and limiting the influence of corporations and money in elections.

    Six billion dollars. That’s just the reported amount spent to elect or defeat the entire slate of federal candidates in the 2012 cycle.

    To be sure, some of the biggest players in the super PAC game weren’t very efficient about how they used the unlimited contributions they took from their ultra-wealthy individual and corporate patrons. Court rulings in Florida, Ohio and Pennsylvania put some of the most egregious voter suppression efforts on hold while invigorated civil rights groups worked to turn out every eligible voter they could find. Several prominent candidates suffered “legitimate” humiliation and defeat. And apparently, 47 percent of America wasn’t going to vote for Mitt Romney anyway (or so we hear). 

    Does any of that mean that money doesn’t matter, that the Citizens United vs. Federal Election Commission era is over as quickly as it began? Don’t bet your democracy on it.

    The Obama campaign outspent the Romney campaign, $549 million to $336 million. The national party committees were close in fundraising (a mere $50 million GOP advantage), but Democrats actually outspent Republicans $814 to $776 million. Outside groups, some disclosing their donors, some not, favored conservatives by $855 million to $406 million in “independent” spending. For all that, in the first full-scale conflagration since Citizen United, the great powers basically fought to a draw, barely moving the lines in Congress.

  • November 19, 2012

    by Jeremy Leaming

    It’s not where he said it; it’s what Supreme Court Justice Samuel Alito had to say about the ruling in Citizens United and the role of the federal government that warrants any kind of notice.

    Alito has long been defensive of the high court’s handiwork in a decision that gave more power to corporate interests to spend their expenditures on politicking. That 2010 high court opinion in Citizens United v. FEC overturned longstanding court precedent allowing for some regulation of campaign financing by corporations. During the 2010 State of the Union address, President Obama blasted the Court for trampling that precedent and added that it would become a boon for special interests, including foreign ones, and Alito was caught on camera uttering, “Not true.”

    Recently the severely conservative judge (he was far right as a judge on the U.S. Court of Appeals for the Third Circuit) again sounded a defensive note on Citizens United before the Federalist Society’s 2012 National Lawyers Convention. Alito, as reported by the Associated Press, said all kinds of newspapers and television news and opinion broadcasts, many owned by vast corporate interests, sound off on and provide endorsements of candidates.

    “The question is whether speech that goes to the very heart of government should be limited to certain preferred corporations; namely media corporations,” Alito said during a keynote address at the group’s 30th Anniversary Gala Dinner on Nov. 15. “Surely the idea that the First Amendment protects only certain privileged voices should be disturbing to anybody who believes in free speech.”

    Beyond defending the opinion, and shooting a few asides at critics of the opinion, Alito sounded what is a frequent Tea Party or rightwing talking point about ever-expanding powers of the federal government, saying that the views advanced by the administration in several cases before the high court revealed a vision of a society dominated by towering federal government.

  • October 3, 2012

    by Jeremy Leaming

    The Roberts Court is a tool of corporate America. At least that’s the gist of a new film from Alliance for Justice, called “Unequal Justice: The Relentless Rise of the 1% Court.”

    This of course is not news to those who pay attention to what the Supreme Court does, nor is it agreed upon. For instance the American Enterprise Institute, the Heritage Foundation, and the Chamber of Commerce likely see the Roberts Court as a protector of American capitalism – the place where almost anyone can lift themselves up by their bootstraps to become superrich.

    “The Roberts Court is basically a pro-business court,” Stanford Law School Professor and ACS Board member Pamela Karlan, says in the AFJ film. “They don’t have a desire to really open the federal courts up to suits by average Americans, either workers or consumers, or people who are injured by various products; it’s a pro-business court.” (Watch the film here or view below.)

    The film reminds us of the Court’s opinions that shut down a class action gender discrimination lawsuit against the retail giant Wal-Mart, overturned a woman’s lower court verdict against a company for years of gender discrimination, and found that corporate America has even more power to spend boatloads of money to sway elections.

    “The Citizens United’s impact has been dramatic,” says former U.S. Senator Russ Feingold and founder of Progressives United. “And since then our system is in the worst free-fall it’s been in since the Gilded Age, probably worse.”

    Even former Sen. John McCain (R-Ariz.), a rightwing policymaker, weighed in on blasting Citizens United as one of the most “misguided, naïve, uniformed, egregious decisions of the United States Supreme Court, I think in the 21st Century.”

    Katrina vanden Heuvel, editor and publisher of The Nation and narrator of the 20-minute film, said individuals have been shut out of the justice system by today’s Supreme Court, which “has decided that when everyday people run up against powerful corporate interests, the big corporations almost always win.”

    Some of the women behind the class action lawsuit against Wal-Mart explain their efforts to advance equality and deal with a stinging defeat.

    “The women of Wal-Mart brought the case to stand up for their right to be treated equally, but they never got that far,” Heuvel said. “The decision turned on whether their claims had enough in common. The conservative majority raised the hurdle for class actions, and made it harder to prove discrimination.”