Opinion ID: 6105292
Heading Depth: 2
Heading Rank: 2

Heading: first amendment arguments

Text: GMA raises a number of First Amendment challenges to the penalty imposed here. We find none of them persuasive. First, GMA asserts that the penalty here is the product of viewpoint discrimination because the State did not seek to prove Food Democracy Action! (Food Democracy) intentionally violated FCPA, which would have made it potentially subject to treble damages. GMA does not, however, show that the State could have shown that Food Democracy intentionally violated the act or offer any evidence that the State was motived by viewpoint discrimination. Accordingly, the factual predicate for its argument is not established. 22 State v. Grocery Mfrs. Ass’n, No. 99407-2 Briefly, Food Democracy solicited and received almost $300,000 in donations from 7,000 people to support Initiative 522. State ex rel. Pub. Disclosure Comm’n v. Food Democracy Action!, 5 Wn. App. 2d 542, 544, 427 P.3d 699 (2018). It donated $200,000 to the “Yes on Initiative 522” campaign under its own name. Id. at 545. Food Democracy did not register with the PDC until the PDC opened an investigation. Id. at 544. It did not appear for trial. Id. at 547. The trial proceeded without it, and the State presented its case that Food Democracy had violated the act, but the State did not seek to prove the violation was intentional. Id. The trial court found that Food Democracy had violated the FCPA and penalized Food Democracy the amount it had failed to disclose plus $1,000 for each of the 18 reports it had filed late for about $320,000. Id. The Court of Appeals affirmed. Id. at 544. Nothing in the Food Democracy opinion, briefing, or record called to our attention suggests the State could have established Food Democracy designed a campaign strategy that intentionally violated the FCPA. The briefing describes the Food Democracy as “a two-employee, Iowa-based organization with no prior experience in Washington politics.” Opening Br. of Appellant Food Democracy Action at 1 (Wash. Ct. App. No. 49932-1-II (2017)). Food Democracy admitted the violation but consistently denied it was intentional. There is nothing in the record that suggests Food Democracy intentionally designed its campaign strategy 23 State v. Grocery Mfrs. Ass’n, No. 99407-2 around shielding its 7,000 small donors. At most, the Food Democracy opinion shows that by two weeks before the election, Food Democracy knew it would have to disclose information about campaign contributors and asked contributors to include that information with their donations. 5 Wn. App. 2d at 545 (quoting from a copy of a fundraising e-mail sent by Food Democracy). This is simply not comparable to the misconduct in the case before us. There is also nothing in the State’s penalty arguments in the two cases that suggests viewpoint discrimination. The State proposed the same statutory formula for damages in both cases. See CP at 3453-54; Br. of Resp’t State of Wash. at 14 (Wash. Ct. App. No. 49932-1-II (2017)). The result was different because the base amount concealed was different and because the State proved GMA intentionally violated the FCPA. 8 8 Relatedly, GMA argues that “[t]he trial court did not consider penalties in other cases.” Suppl. Br. of Pet’r GMA at 5. This assertion overlooks unchallenged finding of fact 106, which says the trial court did consider “GMA’s briefing and arguments regarding penalties imposed in other cases. The court has considered all of that in making its determination regarding a penalty.” CP at 4069. GMA did not assign error to this finding of fact. Opening Br. of Appellant at 1-2 (Wash. Ct. App. No. 49768-9-II (2017)). Accordingly, the fact the trial judge did consider penalties levied in the other cases brought to its attention is a verity on appeal. MSR, 174 Wn.2d at 9 (citing Rankin, 151 Wn.2d at 709. Similarly, GMA challenges the fact that the trial court did not consider the factors that guide the PDC in assessing penalties for violations of the FCPA. Suppl. Br. of Pet’r GMA at 5; see WAC 390-37-182 (listing factors the PDC has promulgated for itself to consider in imposing a penalty). But the trial court found in an unchallenged finding of fact that “the court should and did review . . . administrative code provisions . . . [and] considered all of that in making its determination regarding a penalty.” CP at 4069. This unchallenged fact is a verity on appeal. MSR, 174 Wn.2d at 9 (citing Rankin, 151 Wn.2d at 709). GMA is not entitled to challenge that finding of fact here. 24 State v. Grocery Mfrs. Ass’n, No. 99407-2 Second, GMA argues that “[t]he fine imposed in this case violates freedom of speech and freedom of association” because “[p]unishing speakers more severely for speaking more and for opting to speak collectively through a trade association is antithetical to First Amendment values.” Suppl. Br. of Pet’r GMA at 18. It has not established the factual predicates for its argument. It has not attempted to show that had each of its members who individually donated to the Defense of Brands strategic account intentionally attempted to conceal its contribution, they each would not have received a similar penalty. Nor has it shown it is being punished for “speaking more.” Instead, it is being punished for intentionally violating Washington’s fair campaign act. It was free to speak as much as it wished, so long as it complied with the registration and reporting requirements of the act so that Washington voters knew the source of the speech. Third, GMA contends it cannot be subject to punitive damages under Gertz v. Robert Welch, Inc., 418 U.S. 323, 349, 94 S. Ct. 2997, 41 L. Ed. 2d 789 (1974). Suppl. Br. of Pet’r GMA at 20. We do not find this case helpful. Briefly, after Chicago police shot and killed a young man, his family hired an attorney, Gertz, to represent them in a civil suit. Gertz, 418 U.S. at 325. After a magazine falsely claimed that Gertz was part of a communist “‘War On Police,’” among many other things, Gertz sued for defamation. Id. at 326-27 (quoting record). The magazine argued that it was entitled to the “actual malice” standard of New York Times Co. v. 25 State v. Grocery Mfrs. Ass’n, No. 99407-2 Sullivan, 376 U.S. 254, 84 S. Ct. 710, 11 L. Ed. 2d 686 (1964), which would have required Gertz to prove the magazine published defamatory falsehoods either knowing they were false or with reckless disregard of the truth. Id. at 327-28 (citing N.Y. Times, 376 U.S. at 279-80). The United States Supreme Court declined to extend New York Times to publishers or broadcasters who defame private citizens. Id. at 345-46. It did, however, limit damages to actual damages “at least when liability is not based on a showing of knowledge of falsity or reckless disregard for the truth.” Id. at 349. The factual predicate for GMA’s reliance on Gertz is absent since the trial court not only found GMA intentionally violated the law, it found that “it is not credible that GMA executives believed that shielding GMA’s members as the true source of contributions to GMA’s Defense of Brands Account was legal.” CP at 4068.9 That is analogous to a “showing of knowledge of falsity or reckless 9 We note that the trial court rejected GMA’s “advice of counsel” defense and entered a conclusion of law that GMA either intentionally failed to provide full and accurate information to counsel when asking for advice on the legality of the Defense of Brands Account under Washington law or, alternatively, created the Account without receiving any advice that such an account was legal under Washington law. In either case, GMA does not make the required showing that it is entitled to this defense, if it even is available at all under Washington law. CP at 4071. This is the one conclusion of law GMA did not challenge on appeal. Opening Br. of Appellant at 2 (Wash. Ct. App. No. 49768-9-II (2017)). This further illustrates that GMA is not substantially similar to the publisher in Gertz. 26 State v. Grocery Mfrs. Ass’n, No. 99407-2 disregard for the truth.” Gertz, 418 U.S. at 349. Gertz does not suggest a punitive sanction is inappropriate under these facts. We find none of these challenges availing.