Legal Document

507 U.S. 761 113 S.Ct. 1792 123 L.Ed.2d 543 Fred H. EDENFIELD, et al., Petitionersv.Scott FANE. No. 91-1594. Argued Dec. 7, 1992. Decided April 26, 1993. Syllabus * Respondent Fane, a Certified Public Accountant (CPA) licensed to practice by the Florida Board of Accountancy, sued for declaratory and injunctive relief on ground that its rule prohibiting CPAs from engaging in "direct, in-person, uninvited solicitation" obtain new clients violated First Fourteenth Amendments. He alleged but prohibition he would seek through personal solicitation, as had done while practicing New Jersey, where such solicitation is permitted. The Federal District Court enjoined rule's enforcement, Appeals affirmed. Held: As applied CPA business context, Florida's inconsistent with free speech guarantees Pp. ____. (a) type prohibited here clearly commercial expression which Amendment protections apply. E.g., Virginia State Bd. Pharmacy v. Citizens Consumer Council, Inc., 425 748, 762, 96 1817, 1825, 48 346. Ohralik Ohio Bar Assn., 436 447, 98 1912, 56 444, upheld ban in-person lawyers, did not hold all without protection. In denying their considerable advantages law threatens societal interests broad access complete accurate information designed safeguard. However, "linked inextricably" arrangement it proposes, so State's interest regulating underlying transaction may give concomitant itself. Thus, need only be tailored reasonable manner serve substantial state order survive scrutiny. See, e.g., Central Hudson Gas & Electric Corp. Service Comm'n York, 447 557, 564, 100 2343, 2350, 65 341. (b) Even under intermediate standard review, cannot sustained Fane's proposed speech. Board's asserted interests—protecting consumers fraud or overreaching maintaining independence ensuring against conflicts interest—are substantial. has failed demonstrate advances those any direct material way. A governmental body seeking sustain restriction must harms recites are real will fact alleviate them degree. Here, suppositions about dangers context validated studies, anecdotal evidence, own conduct; claims contradicted report American Institute Accountants other literature. Nor can justified time, place, assuming flat could regarded restriction, still (c) prophylactic because circumstances "inherently conducive forms misconduct." Ohralik, supra, at 464, S.Ct., 1922-1923. Unlike lawyer, who trained art persuasion, way emphasizes objectivity rather than advocacy. Moreover, lawyer soliciting an unsophisticated, injured, distressed lay person, CPA's typical prospective client sophisticated experienced executive existing professional relation CPA, selects time place meeting, whom there no expectation pressure retain spot. addition, relieves obligation restrictions address serious problem contribute solving problem. 945 F.2d 1514 (CA11 1991), KENNEDY, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, STEVENS, SCALIA, SOUTER, THOMAS, JJ., joined. filed concurring opinion. O'CONNOR, dissenting Parker D. Thomson, Miami, FL, petitioners. David C. Vladeck, Washington, DC, respondent. Justice KENNEDY Court. 1 previous cases we have considered constitutionality laws lawyers direct, clients. See 444 (1978); re Primus, 412, 1893, 417 (1978). case now before us, consider applicable (CPAs) enacted Florida. We that, 2 Scott Fane Accountancy. Before moving 1985, his accounting specializing providing tax advice small medium-sized businesses. often obtained making unsolicited telephone calls executives arranging meetings explain services expertise. This personal, was permitted Jersey law. 3 When moved Florida, wished build similar solo unable do Accountancy comprehensive found most effective past. rules provide "shall solicit engagement perform public . person entity already [the CPA], unless invited communication." Fla.Admin.Code § 21A-24.002(2)(c) (1992). "[D]irect, means "any communication directly implicitly requests immediate oral response recipient," which, rules, includes "[u]ninvited visits conversations specific potential client." 21A-24.002(3). 4 rule, according uncontradicted submissions, presented obstacle, businesses willing rely accountants serving them. experience, persuading sever relations alter include particular assignments requires contact change. entails detailed discussion client's needs expertise, fees. Affidavit &Par; 11 (App. 11, 15). 5 United States Northern anti-solicitation offer fees below prevailing rates. Complaint 9-11 3-4). 6 relied affidavit Louis Dooner, one former Chairmen. Dooner concluded necessary preserve performing attest function, involves rendering opinions firm's financial statements. His premise solicits "is obviously bend rules." App. 23. Dooner's view, "[i]f [a CPA] solicited beholden him." Id., 19. also suggested needed prevent "overreaching vexatious conduct CPA." 7 gave summary judgment enforcement "as context." Civ.Case 88-40264-MNP (ND Fla., Sept. 13, 1990) 88). divided panel Eleventh Circuit (1991). 8 granted certiorari, 504 ----, 112 2272, 119 199 (1992), affirm. II 9 clients, seeks communicate more truthful, non-deceptive proposing lawful transaction. parse communications see if some parts entitled greater protection comes us testing nothing more. That what prohibits proposes. 10 Whatever ambiguities exist margins category speech, see, Pittsburgh Press Co. Human Relations, 413 376, 384-388, 93 2553, 2558-2560, 37 669 (1973), clear this 346 (1976). While uphold (1978), does id., 457, 1919. There are, doubt, detrimental aspects certain circumstances, n. 23, 1923, these detriments inherent ubiquitous sort removed ambit Cf. Kokinda, 497 720, 725, 110 3115, 3118, 111 571 (1990) (plurality opinion) ("Solicitation recognized form protected Amendment"); International Society Krishna Consciousness Lee, 505 2701, 2705, 120 541 value. many expression, allows spontaneous between buyer seller. seller strong incentive educate market stimulate demand product service, produces interchange occur buyers were initiate contact. Personal enables meet evaluate offering both parties discuss negotiate desired relation. Solicitation proposals toward reason believe interested sell. For buyer, provides opportunity explore detail service compares alternatives market. particular, respect nonstandard products like offered CPAs, benefits significant. 12 advantages, coverage Pharmacy, U.S., 762-765, 1825-1827; Bates Arizona, 433 350, 377-378, 97 2691, 2705-2706, 53 810 (1977); 561-562, 2348-2349, 341 (1980). marketplace, spheres our social cultural life, forum ideas flourish. Some vital, slight worth. But general speaker audience, government, assess value presented. even propose Amendment. 1825. 13 Commercial however, Friedman Rogers, 440 1, 10, 9, 99 887, 894, 59 (1979), reason, restricting unlike burdening Trustees Univ. York Fox, 492 469, 480, 109 3028, 3034, 106 388 (1989); Corp., 2689. blanket III 14 To determine whether proscribed test set forth ask proscribing substantial; challenged regulation way; extent proportion served. ibid. Though conclude substantial, interests. A. 15 undertaking first inquiry, identify care itself asserts. rational basis permit supplant precise put forward suppositions. 3034. Neither turn away appears stated actual served restriction. Mississippi Women Hogan, 458 718, 730, 102 3331, 3339, 73 1090 (1982). 16 justify proffers two First, asserts protecting CPAs. Second, maintain appearance auditing attesting 17 encompasses distinct purposes: deception, protect privacy. purpose, said "[t]he prohibit insuring stream flow[s] cleanly well freely," 771-772, 1830-1831, make fraudulent deceptive further justification. 563-564, 2350; R.M.J., 455 191, 203, 929, 937, 71 64 (1982); Metromedia, Inc. San Diego, 453 490, 507, 101 2882, 2892, 69 800 (1981) opinion). Indeed, 25 Columbia take various approach, forbidding render fraudulent, deceptive, coercive. Code Colo.Regs. 7.12 (1991); N.D.Admin.Code 3-04-06-02 N.H.Code Admin.Rules 507.02(c) (1990); D.C.Mun.Reg., Tit. 17, 2513.4 (1990). where, involved here, truthful nonmisleading snared along satisfy remainder demonstrating serves accomplish end. 937. purposes test, question accuracy marketplace 1830-1831; Francisco Arts Athletics, Olympic Committee, 483 522, 539, 107 2971, 2982, 427 (1987); 896. 18 Likewise, clients' privacy interest. neither nor pressed frequency vehemence intimidate, vex, harass recipient. made explicit "protection legitimate important interest." 462, 1921. 19 second justification ban—the guard interest—is related audit functions CPA. course services, reviews statements attests they been prepared accordance generally accepted principles present fair picture condition. generally, R. Gormley, Law Auditors ¶ 1.07[4] (1981); Accountants, Professional Standards AU 110.01 (1991) (hereinafter AICPA Standards). compromises functions, enough prone ethical lapses. misconduct occur, perception undermined behave ordinary actors. 20 given consistent recognition standards professions. 460, 1920; 766, 1828; National Engineers States, 435 679, 696, 1355, 1367, 55 637 With regard observed "maintain total independence" act "complete fidelity trust" when independent auditors. Arthur Young Co., 465 805, 818, 104 1495, 1503, 79 826 (1984). Although obscuring nature open Arizona 369-371, 2701-2703, not. acknowledge 460-461, 1920-1921. B 21 abstract mean, penultimate prong impinging upon "directly advance involved; ineffective remote support government's purpose." 2350. agree fails requirement. 22 It established party carries burden justifying it." Bolger Youngs Drug Products 463 60, 71, 20, 103 2875, 2883, 77 469 (1983); 3035. satisfied mere speculation conjecture; rather, Zauderer Office Disciplinary Counsel Supreme Ohio, 471 626, 648-649, 105 2265, 2281, 85 652 (1985); Bolger, 73, 2284; 205-206, 939; 569, 2353; 13-15, 896-897; Linmark Associates, Willingboro, 431 85, 95, 1614, 1619, 52 155 (1977). Without requirement, ease restrict objectives themselves expression. 23 demonstrated presents studies suggest creates fraud, overreaching, compromised fear. record disclose either another State, validates though kind three besides categorical ban. La.Admin.Code 46:XIX.507(D)(1)(c) (Supp.1988); Minn.Admin.Code 1100.6100 Tex.Admin.Code 501.44 (Supp.1992). Not suggests concerns justified. 467-468, 1924-1925. suggestion might help contains series conclusory add little anything original statement justifications. 24 directs Court's attention 1981. AICPA, Report Special Committee 29). contradicts strengthens submissions. "unaware existence empirical data supporting theories mental attitude subjected 38). accounts signals work invites improper approach ignores firms desire discloses suspect engage desperate work, inclined compromise standards, solicit, mail advertisement. prospect harassment again acknowledges "absence persuasive evidence likely lead false misleading oppressive conduct." 35). Other concerning belies concerns. contrast anxiety over literature profession main firm too dependent long-standing client. P. Cottell T. Perlin, Accounting Ethics 39-40 G. Previts, Scope Services: Study Development Concept Independence Profession's Role 142 S.Rep. 95-34, pp. 50-52 General Office, Audit Quality: Status Actions Taken Improve Auditing Financial Reporting Companies 36 (Mar.1989) (GAO/AFMD-89-38). wishes favorable unjustified less stranger him ongoing, leverage. 34 ("A company using threat changing accountants—opinion shopping —to accept desirable treatment threatened"); (noting eroded single auditor great length time). 26 reasons, reject alternative argument Assuming content-neutral proposition 771, 1830, "a way." Ward Rock Against Racism, 491 781, 800, 2746, 2748, 661 (1989). identified within power, prohibitions manner. Where lacks close asserted, be, definition, C 27 Relying rule. solicitations involve argues banned, occurs private offices difficult regulate monitor. 28 stand bans types professionals constitutional circumstances. Because "the distinctions, historical functional, professions, require consideration quite different factors," 773, 25, 1831, depend identity solicitation. Later clear, explaining Ohralik' holding narrow depended "unique features lawyers" case. 641, 2277; Shapero Kentucky 486 466, 472, 108 1916, 1921, 475 (1988). 29 challenge application Ohio's attorney held "constitutionally discipline pecuniary gain, pose right prevent." 449, 1915 (emphasis added). discusses generic hazards 464-466, 1923-1924, preventative situations 1923; cf. 937 (advertising banned outright actually inherently misleading). explained why met standard: 30 "[T]he significantly personally person. Such individual trust regardless latter's qualifications individual's legal representation, simply persuasion uninformed acquiescence. argued valuable apprise victim misfortune rights, very plight makes vulnerable influence intrusive. adverse conditions overtures distress obtrusiveness invasion privacy, harm materializes. Under unreasonable presume injurious solicited." 465-466, 1923-1924 (footnotes omitted). 31 poses none same dangers. persuasion." training objectivity, 220; ET 55; Magill Responsibilities: An Introduction 105-108 far susceptible manipulation young accident Ohralik. understand offers. 5-7, 10(A) 10-11, 13). general, accountant evaluating work. 10-11). 32 decisionmaking client, sharp "uninformed acquiescence" victims prone. 465, 1923. approached moment high stress vulnerability, choosing. If unreceptive initial terminate call. Invasion significant concern. 33 decide spot; instead, she exercises caution, checking references deliberating deciding hire 10(C) 13-14). sensitive records internal documents, retaining casual decision. Ibid. engagements long-term nature; engages unpleasant, sales tactics, impair improve chances obtaining establishing satisfactory importance repeat referrals gives responsible decorous business. "more 1924. reliance misplaced yet reason: misunderstands meant approved use sense outset, punishing after occurred. measure proposes (describing fear "well founded"). 35 Were read afforded reduced almost nothing; categories matter course. results reached number prior cases. context. "Broad area suspect. Precision touchstone closely touching precious freedoms." NAACP Button, 371 415, 438, 83 328, 340, 405 (1963) (citations Amendment's somewhat forgiving curb advancing ends sought advanced suppressed. infringes speak, guaranteed Constitution. Affirmed. concurring. 38 I join opinion, just joined STEVENS' recent Cincinnati Discovery Network, --- 1505, (1993), observation disengage myself part thereof, inference therefrom, duress advocacy unlawful activity "intermediate level," ante, ____, proscription abridging freedom djQ dissenting. 39 continue took wrong (1977), compounded error finding increasingly unprofessional advertising (1988); Peel Attorney Registration Ill., 496 91, These consistently focus advertisement listener: misleading, amounts "overreaching, [or] exercise undue influence," Shapero, 475, 1922. narrow. my broader authority albeit harmful listener, speaker's membership learned therefore damaging society large. Zauderer, 676-677, 2295 (O'CONNOR, part, part); 488-491, 1929-1931 dissenting); Peel, 119, 2297 dissenting). "forms competition usual world," Goldfarb Bar, 421 792, 95 2004, 2016, 44 572 (1975) (internal quotation marks omitted), grounds pure profit degrades public-spirited culture profit-seeking inadequately terms consumer welfare benefits. Commercialization incremental, indirect, profound effect culture, know well. 40 agreed target dissent sanctioned particularly risk attorney's harmful, simple enforce 464-468, 1923-1925. result majority today squared 41 preceded (1980), understood mean attorneys test. advanc[e] [and be] extensive Hudson, 566, 2351. fraction otherwise potentially singled out (or legislator believe). 42 difference attorneys, certified (CPA's). rhetorical power derives status expert complex subject matter—the —empowers overawe inexpert analogous power. drafters (1992) reasonably envisioned expertise mislead coerce naive 43 scrupulously declines validity never analyzes Posadas de Puerto Rico Associates Tourism Rico, 478 340-344, 2968, 2976-2978, 92 266 (1986) (analyzing "facial" employing test), instead avoid analysis characterizing suit "as-applied" challenge. am surprised taken articulating assumption: claim instances prohibitory satisfies Hudson. N.Y. (1989), say opposite, 476-486, 3032-3038, recently certiorari precisely issue, Edge Broadcasting 506 809, 121 683 event, instant challenge, points special constitutionally valid 644, 2278. obscures point stating "cannot speech," paraphrasing show relevance remedy goes beyond 45 "Florida Administrative Code, §§ 21A-24.002(2) (3), places unconstitutional violation amendmen[t]. hereby enforcing 88. 46 correct satisfying 47 harmless indeed harmless, premises injunction antisolicitation relies petitioners "business Yet narrowing focus, more, salvage remedy. fail should overall, "in Small comprise vast establishments Dept. Commerce, Statistical Abstract 526 believed average businessman wealthy affairs. 49 short, how 21A-24.002(2)(c). failing otherwise, implies agree, reverse Appeals.

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