Federal District Judge Grants Stay in New York Donor Disclosure Dispute

LIBERTY JUSTICE CENTER,
Plaintiff,
v.
LETITIA JAMES, as attorney general of the State of New York,
Defendant.

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

Stipulation and [Proposed] Order
Staying Case

This Stipulation and [Proposed] Order Staying Case (“Stipulation”) is made by and between Plaintiff Liberty Justice Center and Defendant Letitia James, sued in her official capacity as Attorney General of the State of New York.

RECITALS

A. On July 16, 2021, Plaintiff filed a complaint in this Court (Case No. 1:21-CV-06024) against Defendant (“Complaint”), alleging that the then in-force regulations of the New York Attorney General's Charities Bureau requiring Plaintiff to submit with its annual registration statement its IRS Form 990 Schedule B violate Plaintiff's First Amendment rights (the “Action”), relying in part on the Supreme Court's decision issued on July 1, 2021 in Americans for Prosperity Found. v. Bonta, 594 U.S. ___ (2021) (“AFPF”).

B. On July 29, 2021, the Charities Bureau suspended its regulation requiring charities to submit IRS Form 990 Schedule B with their annual registration statements while it considers any necessary amendment to comply with AFPF, and announced with immediate effect that annual filings will no longer require disclosure of information that identifies donors and any notice previously sent to charities regarding any deficiency due to missing or incomplete Schedule Bs are no longer operative as to such deficiency.

C. To effectuate any necessary amendments, the Charities Bureau will need to provide for notice and public comment, which may take a number of months.

D. Between now and when any amendment takes effect, the Parties seek to avoid the need to incur the expense and effort of litigating this Action by agreeing to stay the Action pending the effective date of any amendment promulgated by the Charities Bureau to comply with AFPF, or 120 days from the date of this Stipulation, whichever is early.

NOW THEREFORE, in consideration of the mutual promises, covenants, representations, and other consideration contained in this Stipulation, Plaintiff and Defendant hereby agree as follows:

1. No Admission of Liability

This Stipulation and any actions taken pursuant to it are made solely to avoid the burdens and expenses of litigation and shall not constitute an admission of wrongdoing or liability.

2. Defense of Future Proceedings

This Stipulation shall not in any manner be construed as determinative of the issues raised in the Complaint or Action, and shall not be deemed a determination on the merits of claims raised in the Complaint or Action. Further, this Stipulation does not represent or reflect the legal position of Plaintiff or Defendant concerning the alleged violations of law. In addition, notwithstanding the provisions of any paragraph herein, this Stipulation shall not bind or collaterally estop the Defendant; the State of New York; or their present and former agencies, subdivisions, subsidiaries, administrators, principals, officers, employees, directors, members, agents, attorneys, whether in an individual or official capacity, or any of them, or all of them, in this Action if the case proceeds to be litigated, or in any pending or future actions or proceedings in which the same or similar issues are raised, from defending any and all issues raised, or from advancing any defenses.

3. Expiration of the Stay

The stay pursuant to this Stipulation will remain in effect for 120 days from the date that the Court “so orders” this Stipulation, or until any amendment to 13 N.Y.C.R.R. § 91.5(c) to comply with AFPF takes effect, whichever is earlier. Within 10 days of the expiration of the stay pursuant to the terms of this paragraph, Plaintiff shall advise the Court by letter filed on the electronic docket whether it will proceed with this Action or file a notice of voluntary dismissal pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(i). If the former, Plaintiff shall also advise the Court in the same letter if it will proceed on the basis of the Complaint or will file an amended complaint, which if it elects to do shall be filed within 14 days from the date of its letter. If Plaintiff elects to proceed with the Action, Defendant shall file its response within 14 days of Plaintiff's letter if the case proceeds on the Complaint, or within 14 days of the date Plaintiff files its amended complaint.

4. Stay Motion

Upon execution of this Stipulation, the Parties agree to submit this Stipulation to the Court by letter motion to be “so ordered.”

IN WITNESS WHEREOF, the Parties hereto acknowledge that they have read this Stipulation and accept and agree to the provisions contained herein, and have each executed this Stipulation to be effective on the day and date indicated below.

Dated: New York, New York
September 2, 2021

LETITIA JAMES
Attorney General
State of New York

Counsel for Defendant

By: Andrew Amer
Special Counsel

28 Liberty Street
New York, NY 10005
(212) 416-6127

THE GLENNON LAW FIRM, P.C.

Counsel for Plaintiff

By: Peter J. Glennon

160 Linden Oaks
Rochester, NY 14625
(585)210-2150

SO ORDERED, this 3rd day of September_, 2021.

THE HONORABLE JOHN G. KOELTL
UNITED STATES DISTRICT JUDGE