Cause of Action statement concerning LabMD and denial of preliminary injunction in North District of Georgia

Reed Rubinstein, Senior VP of litigation for Cause of Action:

“The fact remains, as Judge William Duffey said on the record, that this case is ‘a sad comment on [the FTC].’   We continue to believe that the FTC is exercising authority it does not have and using its power to punish a company that objected to agency overreach.  We are studying Judge Duffey’s order and considering next steps.”

Cause of Action statement concerning Craig Zucker and the Consumer Product Safety Commission

With the help of Cause of Action, Craig Zucker fought back against the government, and this settlement is evidence that the government caved under pressure. The CPSC’s actions regarding Craig Zucker are not about consumer safety, they’re about punishing an entrepreneur who dared to speak out against the federal government. The years spent by the CPSC targeting a product that has never been declared unsafe and pursuing overzealous litigation against Craig Zucker are yet another example of a federal agency gambling with taxpayer dollars to test its own power.

If the CPSC’s goal was consumer safety, why is it settling for an amount that covers less than one percent of its original $57 million recall estimate? To get the answer, Cause of Action is continuing to pursue our FOIA litigation against the CPSC to expose an agency that values retaliation against its critics above its own mission to protect consumers.  The CPSC’s choice to settle proves that the government’s conduct was worthy of criticism.

Cause of Action statement on Supreme Court taking up Yates v. U.S.

Cause of Action, a government accountability group which filed an amicus brief in John L. Yates v. United States, released a statement today on the Supreme Court’s decision to hear the case:

Yates v. U.S. is an opportunity for the Supreme Court to check government over-reach and over-criminalization.  A fisherman who allegedly threw overboard some undersized fish should not be prosecuted and imprisoned under a law written to prevent big corporate executives from shredding documents to cover financial fraud.

Cause of Action looks forward to supporting Mr. Yates.

HARDI Settlement with DOE Approved by Court

Heating, Air-Conditioning and Refrigeration Distributors International (HARDI) announced today that the U.S. District Court of Appeals has approved a settlement in the long-running lawsuit regarding Regional Efficiency Standards for residential gas furnaces and central air-conditioners which were finalized by the Department of Energy (DOE) in October 2011.

The court stated, “The direct final rule, 76 Fed. Reg. 37408 (June 27, 2011), and notice of effective date, 76 Fed. Reg. 67037 (Oct. 31, 2011), as they relate to energy conservation standards for non-weatherized gas furnaces, including but not limited to the Department of Energy’s determination that such furnaces constitute a single class of products for purposes of 42 U.S.C. §§ 6295(q)(1)(B), 6295(o)(4), are hereby vacated and remanded to the Department of Energy for notice and comment rulemaking in accordance with the Energy Policy and Conservation Act.”

You can find the settlement agreement here and the court’s order here.

Charles Edwards Under Investigation by CIGIE for Misconduct

Cause of Action, a government accountability group which has investigated former Department of Homeland Security acting Inspector General Charles Edwards, issued the following response to the report released today by the Senate Committee on Homeland Security and Governmental Affairs (HSGAC), Subcommittee on Financial and Contracting Oversight:

In addition to being the subject of Thursday’s report released by the Senate Committee on Homeland Security and Governmental Affairs, Charles Edwards is still under investigation today for allegations of misconduct by the Council of the Inspectors General on Integrity and Efficiency (CIGIE).

Cause of Action’s own two-year investigation into Charles Edwards prompted us to raise concerns to President Obama about the destruction of records and complaints filed about his misconduct that would warrant Edwards’ removal from office and potential criminal liability. We know that the Office of Special Counsel forwarded at least one complaint about Edwards to CIGIE. Additionally, we sued the Department of Homeland Security Office of Inspector General (DHS OIG) for failing to produce documents related to these misconduct complaints under the Freedom of Information Act (FOIA).  This lawsuit could have been avoided, as DHS OIG voluntarily provided such information to HSGAC. This transparency failure is now costing time and resources in court for what could have been a simple compliance with FOIA.

Under federal law, knowingly destroying records with the intent to obstruct an investigation or the proper administration of any department or agency of the United States is punishable by a fine, imprisonment, or both. Accordingly, CIGIE should complete its investigation as expeditiously as possible and refer evidence of criminal conduct to the Department of Justice, especially since Edwards remains employed at DHS in a managerial position.

Court Holds That Challenge Brought in Fuel Cell Energy, et al v. Markell, et al Can Continue

FOR IMMEDIATE RELEASE                                                                                                 CONTACT:      

April 23, 2014                                                Mary Beth Hutchins, 202-400-2721

Court Holds That Challenge Brought in Fuel Cell Energy, et al v. Markell, et al Can Continue

WASHINGTON – On April 17, 2014, Magistrate Judge Christopher J. Burke held in Fuel Cell Energy, et al v. Markell, et al that a competitor disadvantaged by the Delaware Public Service Commission’s tariff to Bloom Energy can continue its challenge under the U.S. Constitution, which prohibits state laws that discriminate against out-of-state competition.  The decision affirms that the plaintiff does have standing to claim that Delaware’s 2011 amendments to its Renewable Energy Portfolio Standards Act (REPSA) are unconstitutional. As Judge Burke stated, “Plaintiffs have sufficiently demonstrated the causal connection between the tariff and the competitive disadvantage that FuelCell alleges it will suffer.”   FuelCell is represented by Cause of Action, a nonprofit government accountability group based in Washington, D.C.

The decision can be found here.

Some highlights from the decision include:

  • Page 32: “FuelCell makes sufficient allegations of injury in fact as to another relevant market.  Pursuant to this argument, FuelCell asserts that the 2011 Amendments will cause it significant competitive injury in the “mid-Atlantic area” or on the “East Coast[.]”  That is, when FuelCell complains that, via the 2011 Amendments, Bloom will be “protect[ed]” by “subsidies” affecting future fuel cell transactions, FuelCell is referencing the harm caused by these alleged “subsidies” not only to its future ability to compete with Bloom in Delaware, but also as to energy sales in other mid-Atlantic or East Coast states such as New Jersey, New York and Connecticut.  As noted below, there is record evidence supporting this latter type of claimed future injury.” (internal citations omitted).
  • Page 33: “it is easier to conceive of a business opportunity gained by Bloom in a market as one that comes at the expense of FuelCell (and not one whose outcome is also subject to the action or inaction of numerous other third parties)-so long as there is some indication that the two companies are actually both likely to target that particular relevant market.”
  • Pages 34-35: “FuelCell has, therefore, sufficiently demonstrated injury in fact in this type of East Coast market.”
  • Page 38: “[A] challenged government action (here, the tariff) is said to be subsidizing the future energy production capability of Bloom, FuelCell’s “direct competitor” in a given market.  Similarly, FuelCell alleges that the funds from this tariff will allow a Bloom to increase the amount of that future production (or that absent those funds, it would have generated no such production at all).  The challenged tariff thus is said to “ease” a “competitive  burden” on Bloom, but not FuelCell, in a way that “plainly disadvantages [FuelCell’s] competitive position in the relevant marketplace.” . . . Plaintiffs have sufficiently demonstrated the causal connection between the tariff and the competitive disadvantage that FuelCell alleges it will suffer.”
  • Page 39: “FuelCell argues that “this Court has the authority to void the … tariff[, and Bloom] would thereby lose the unfair infrastructure-related  competitive advantages it enjoys in Delaware[,]” and that “enjoining [the] collection and disbursement of the tariff-subsidy will level the economic playing field vis-a-vis [Bloom] and [FuelCell].”  (D.I. 22 at 12-13)  The Court agrees that FuelCell has sufficiently met its burden as to the “redressability” prong of the analysis.”
  • Page 39, Footnote 21: “FuelCell seeks declaratory and injunctive relief barring future use of (1) the provisions requiring that a QFCP have in-state manufacturing capabilities and (2) the provisions providing for a tariff for a QFCPP.  And it argues, citing to evidence of record, that the “in-state manufacturing requirement and the tariff … [are] inextricably int[er]twined.”  The Court has articulated above how the challenged tariff is sufficiently likely to cause future competitive injury to FuelCell; FuelCell is required to show no more at this stage.“ (internal citations omitted).
  • Page 40: “Having concluded earlier that a sufficient causal connection exists between the tariff and FuelCell’s alleged competitive harm, it follows that this harm is capable of being redressed by the tariff­ related relief that Plaintiffs seek.”

About Cause of Action:

Cause of Action is a non-profit, nonpartisan government accountability organization that fights to protect economic opportunity when federal regulations, spending and cronyism threaten it. For more information, visit www.causeofaction.org.

To schedule an interview with Cause of Action’s Executive Director Dan Epstein, contact Mary Beth Hutchins,  202-400-2721.

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Supreme Court cites Cause of Action Amicus Brief in McCutcheon Decision

In McCutcheon v. Federal Election Commission, the majority cited Cause of Action’s amicus brief (page 36):

With modern technology, disclosure now offers a particularly effective means of arming the voting public with information. In 1976, the Court observed that Congress could regard disclosure as “only a partial measure.” Buckley, 424 U.S., at 28. That perception was understandable in a world in which information about campaign contributions was filed at FEC offices and was therefore virtually inaccessible to the average member of the public. See Brief for Cause of Action Institute as Amicus Curiae 15-16.

Read the opinion here.

Read our full brief:

Cause of Action’s McCutcheon v. FEC Amicus Brief by CauseOfAction