Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 1 of 9 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF IOWA CENTRAL DIVISION PAUL GERLICH and ERIN FURLEIGH, Plaintiff(s), No. 4:14-CV-264 PLAINTIFFS’ RESISTANCE TO MOTION TO STAY vs. STEVEN LEATH, WARREN MADDEN, THOMAS HILL, and LEESHA ZIMMERMAN, Defendant(s). The Defendants’ Motion to Stay this Court’s Order on the parties’ motions for summary judgment is procedurally confused and conflates issues in a manner that attempts to mask what Defendants actually seek. They move to stay “all proceedings to enforce the partial judgment,” “all proceedings on damages and attorney fees” and – most tellingly – “enforcement of the injunctive relief granted” on summary judgment. Stripped to its core, Defendants’ motion asks that the Court stay an injunction that bars them from applying trademark policies in ways that discriminate based on viewpoint and/or speaker. As the injunction rests on settled First Amendment principles – and the motion seeks to allow continued violations of rights protected thereby – Defendants cannot satisfy the “heavy burden” that seeking a stay pending appeal imposes. 1 ARGUMENT Defendants offer one unified argument for all aspects of their motion, but it is useful and important to identify, in practical terms, what they have asked. As a threshold matter, Defendants 1 See B.K. ex rel. Kroupa v. 4-H, 877 F.Supp.2d 804, 824 (D.S.D. 2012) (“Because the burden of meeting this standard is a heavy one, more commonly stay requests will not meet this standard and will be denied.”) (quoting Brady v. NFL, 779 F.Supp.2d 1043, 1046 (D. Minn. 2011) (quoting 11 Charles Alan Wright et al., Federal Practice & Procedure, § 2904 at 503-05 (2d ed. 1995)), stay granted on other grounds, 640 F.3d 785, 789 (8th Cir. 2011)). Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 2 of 9 seek a stay of proceedings on damages and fees. But Defendants have filed a notice of appeal and a supplemental notice of appeal, both seeking judicial review as of right of the summary judgment order’s denial of qualified immunity. Dkts. 64, 70. Doing so divests this Court of jurisdiction to conduct further proceedings on the merits until the appeal is decided, e.g., Ahlberg v. Chrysler Corp, 481 F.3d 630, 638 (8th Cir. 2007); accord Mot. 4 (“Jurisdiction has then been vested in the court of appeals ….”), and a damages trial in any event makes little sense while a qualified immunity appeal is pending, where the sole issue is whether Defendants are shielded from damages. And any proceedings on attorney fees were already suspended in view of the appeal. See Dkt. 69. Thus, on these points, Defendants’ motion is a nullity, 2 which requires neither a grant nor a denial in this regard. Properly paring that from Defendants’ motion boils it down to a request that the Court “stay all proceedings to enforce the partial judgment … and … the injunctive relief granted” thereby. Mot. 1. Thus reducing the motion to its essence, it is clear the criteria for granting a stay are not met. This Court’s summary judgment order “permanently enjoined [Defendants] from enforcing trademark licensing policies against Plaintiffs in a viewpoint discriminatory manner and from further prohibiting Plaintiffs from producing licensed apparel on the basis that their designs include … a [] cannabis leaf.” Gerlich v. Leath, __ F.Supp.3d ___, 2016 WL 360673, at *20 (S.D. Iowa Jan. 22, 2016). With a trial on damages still to come (presuming no reversal on qualified immunity), this is the only relief Plaintiffs have been granted thus far that they might seek to “enforce,” and the only “injunctive relief granted.” Mot. 1. Thus properly viewed, the 2 There is no reason for Plaintiffs to either oppose or consent to a stay on these points. Plaintiffs had already indicated that a damages trial would have to await resolution of any qualified immunity appeal, and that any pursuit of fees, costs and expenses is most efficiently addressed after the damages claim is fully resolved. See Dkt. 69. 2 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 3 of 9 Defendants’ motion, in practical effect, is solely about ensuring they can continue enforcing their trademarking policies in a viewpoint- or content-based manner. Defendants simply cannot show they are entitled to such relief on the asserted grounds that they are likely to succeed on the merits, that they will be irreparably harmed absent a stay, that a stay will not substantially injure Plaintiffs, and that the public interest favors a stay. See Mot. 2 (citing Brady v. NFL, 640 F.3d at 789). Indeed, Defendants’ motion founders on the very first prong of this standard, in that they cannot demonstrate either likelihood of success on the merits, or even a substantial ground for difference of opinion on the merits. Id. 3. This is so for several reasons – some of which this Court has already cited in prior rulings following on its summary judgment order. Indeed, two days before Defendants’ latest motion, this Court denied their motion for certification, finding “no substantial ground for difference of opinion” and that “review of established First Amendment doctrine and the recent Walker decision demonstrates that a public university’s trademarks are not government speech.” Dkt. 68 at 3-4. At the outset, given the scope of judicial review open to Defendants, they cannot show a likelihood of prevailing on the merits of their appeal on any aspect of the injunctive relief the Court granted. The only issue Defendants may appeal as of right, and thus have appealed, is the denial of qualified immunity, see, e.g., Percefull v. Claybaker, 211 F. App’x 521 (8th Cir. 2006), and the Court has denied Defendants’ request to certify any other issues for appeal. Dkt. 68. Defendants recite the pat government-defendant maxim that “qualified immunity is immunity from suit,” Mot. 4 (citing Peters v. Woodbury Cnty., 979 F.Supp.2d 901, 927 (N.D. Iowa 2013)), aff’d sub nom, 786 F.3d 1095 (8th Cir. 2015), but as a matter of settled law, qualified immunity does not preclude injunctive or declaratory relief. E.g., Mead v. Palmer, 794 F.3d 932, 937 (8th Cir. 2015). As the only thing the stay motion seeks to avoid is the enforcement of injunctive relief, there is no way Defendants can prevail in having that relief vacated or reversed on judicial 3 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 4 of 9 review of a denial of qualified immunity, which at most concerns whether they are liable for damages. Therefore, given the present procedural posture and the black letter law on qualified immunity, Defendants cannot show a likelihood of success on the merits of appeal vis-à-vis the injunctive relief they seek to have stayed. This alone dooms their stay motion. E.g., McLeod v. General Mills, Inc., 2015 WL 7428548, at *2 (D. Minn. Nov. 20, 2015) (“The most important factor in the stay analysis is the appellant’s likelihood of success on the merits.”) (quoting Brady v. NFL, 640 F.3d at 789) (internal quotation marks omitted). Even were that not a bar to satisfying the standard for a stay pending appeal, Defendants are not likely to succeed on the merits for substantive reasons as well. Defendants stake their entire success-on-the-merits showing on “whether … [ISU] trademarks … constitute government speech that is not subject to First Amendment analysis[.]” Mot. 3 (citing Walker v. Texas Div. of Sons of Conf. Vets., Inc., 135 S. Ct. 2239 (2015); Mech v. School Bd. of Palm Beach Cnty., 806 F.3d 1070 (11th Cir. 2015)). See also generally id. 3-4. As such, there can be no likelihood of success on this argument, for at least two reasons. First, as this Court has already held, the issue in this case is not whether student-group use of ISU trademarks constitutes government speech (it does not – see infra 5-6; see also Gerlich, at *13-15). Rather, the issue is whether the manner in which the University goes about allowing use of the trademarks, based on agreement or disagreement with the accompanying message, and other steps taken to interfere with speech, violate the First Amendment. Gerlich, at *11-13. See also id. at *16 (“[T]his case does not present a novel issue of trademark law, but rather [] a familiar issue of whether a university may discriminate among student groups on the basis of viewpoint.”). Proscriptions against such viewpoint-based regulation by public university officials 4 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 5 of 9 date back nearly half a century. 3 Succeeding on the merits on this, in particular, is especially unlikely given this Circuit’s precedent in Gohn. See Gerlich, at *12-13 (citing same). Further, even if government speech were involved, viewpoint discrimination still would not stand. For example, if instead of implicating ISU trademarks, this case involved monuments the University placed around campus, compare Pleasant Grove City v. Summum, 555 U.S. 460 (2009), and instead of discriminatory trademark licensing the Defendants allowed only certain student groups to hold events near those monuments, while denying access to others, all based on viewpoint, their actions would no more comport with the First Amendment than those held unconstitutional in this case. In short, it cannot be said that the (qualified immunity) appeal based on whether Defendants engaged in government speech is likely to prevail on the merits of overturning an injunction that was granted because Defendants engaged in viewpoint discrimination. Second, Defendants’ argument on the merits regarding government speech is neither likely to prevail, nor does it present a “substantial ground for difference of opinion.” Mot. 3. As on summary judgment, Defendants’ entire position is that the jurisprudence is “[a]bsent cases holding a university’s federally registered trademarks are not government speech[.]” Id. It almost need not be said, of course, that if there are no cases establishing this point, Defendants are not “likely” to prevail on it. And as this Court already recently held on another of Defendants’ postsummary judgment motions, “substantial ground for difference of opinion does not exist merely because there is a dearth of cases” or, as here, no cases. Dkt. 68 at 3 (quoting White v. Nix, 43 F.3d 374, 378 (8th Cir. 1994)) (internal edit omitted). As the Court also held, echoing its summary judgment ruling, “review of established First Amendment doctrine and the recent decision 3 See id. (citing Police Dep’t of Chicago v. Mosley, 408 U.S. 92 (1972); Healy v. James, 408 U.S. 169 (1972); Tinker v. Des Moines Indep. Cmty. Sch. Dist., 393 U.S. 503 (1969); Rosenberger v. Rector & Visitors of Univ. of Va., 515 U.S. 819 (1995); Gay & Lesbian Students Ass’n v. Gohn, 850 F.2d 361 (8th Cir. 1988)). 5 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 6 of 9 in Walker demonstrates that a public university’s trademarks are not government speech,” id., a point also recently reinforced by the Federal Circuit’s decision in In re Tam, 808 F.3d 1321 (Fed. Cir. 2015). As this Court thus correctly held: “There is no substantial ground for difference of opinion” when it comes to Defendants’ sole argument here. Dkt. 68 at 4. Once Defendants’ motion is placed in its proper context, and their success-on-the-merits argument is laid bare, it necessarily follows that they cannot satisfy the remaining elements for a stay pending appeal. 4 Defendants claim irreparable harm to ISU’s trademarks absent a stay (without citation to precedent), Mot. 5, but nothing in the case law holds that being unable to continue engaging in viewpoint discrimination constitutes irreparable harm. Cf. Gerlich, at *14 (“ISU does not license its trademarks to student groups to announce its political views, because the office has approved designs for an inchoate set of interest groups”). Quite to the contrary, enabling Defendants to continue infringing Plaintiffs’ First Amendment rights in that manner irreparably harms the Plaintiffs. Johnson v. Minneapolis Park & Rec. Bd., 729 F.3d 1094, 1101-02 (8th Cir. 2013) (“a loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury”) (quoting Elrod v. Burns, 427 U.S. 347, 373 (1976)) (internal quotation marks omitted); accord Gerlich, at *19 (citing Elrod). Contra Mot. 6. The fact that it “has now been more than three years” since ISU engaged in viewpoint discrimination against Plaintiffs, Mot. 6 – mostly because the futility of seeking approval for T-shirt designs that would be withheld for viewpoint-based reasons led Plaintiffs to stop applying – does not change that fact. And Defendants’ public interest showing 4 And this cannot be avoided through any “balancing” of the factors, given that Defendants’ showing on one of them – the first and most important – is not only not “strong,” but wholly inadequate. See Mot. 2. Compare also id. at 3 n.1 (arguing that it is enough to raise a “serious legal question”) (citing cases), with supra at 5-6 (Defendants’ government speech argument does not present a substantial ground for different of opinion) (citing Dkt. 68). 6 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 7 of 9 based on government speech fails for the same reasons their government speech-based successon-the-merits arguments fail. See supra 4-6. Conversely, “the public interest favors protecting core First Amendment freedoms,” Iowa Right to Life Comm., Inc. v. Williams, 187 F.3d 963, 970 (8th Cir. 1999); Gerlich, at *19 (“it is axiomatic that protection of First Amendment rights serves the public interest”), which is exactly what this Court accomplished in granting the injunctive relief that Defendants now seek to avoid through a stay pending appeal. CONCLUSION Defendants are correct that “the power to stay proceedings is … inherent in every court” and calls for “an exercise of judgment,” Mot. 8 (quoting Landis v. North Am. Co., 299 U.S. 248, 254-55 (1936)), but they are not just asking the Court to stay “proceedings.” Rather, they ask the Court to stay “an[] injunction [that] would [] compel Defendants to license ISU trademarks to be co-branded with other non-university trademarks,” id. 5, in a non-viewpoint-discriminatory manner. Put differently, Defendants ask the Court to stay an injunction designed to ensure that ISU cannot continue to violate Plaintiffs’ First Amendment rights. See Gerlich, at *19. The injunction embodies the “straightforward principle that a public university may not discriminate among student groups on the basis of their espoused views.” Id. at *12. Insofar as Defendants assertedly seek to “preserve the status quo,” Mot. 1, that status quo had Defendants violating the Constitution. The instant stay motion thus does not just “place[] [Defendants] in the uncomfortable position of asking a district court to determine whether its decision is likely to be overturned,” id. 3 n.1, but rather assigns them the unenviable burden of claiming they are likely to prevail despite decades of settled law that speaker- and viewpoint-based regulation of speech violates the First Amendment. This the Defendants cannot do, and for that reason, their motion to stay must be denied. 7 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 8 of 9 Respectfully submitted, By MICHAEL A. GIUDICESSI michael.giudicessi@faegrebd.com FAEGRE BAKER DANIELS LLP 801 Grand Avenue, 33rd Floor Des Moines, IA 50309-8011 Telephone: (515) 447-4701 Facsimile: (515) 248-9010 /s/ Robert Corn-Revere ROBERT CORN-REVERE (admitted pro hac vice) bobcornrevere@dwt.com RONALD G. LONDON (admitted pro hac vice) ronnielondon@dwt.com LISA B. ZYCHERMAN (admitted pro hac vice) lisazycherman@dwt.com DAVIS WRIGHT TREMAINE LLP 1919 Pennsylvania Avenue, NW, Suite 800 Washington, DC 20006 Telephone: (202) 973-4200 Facsimile: (202) 973-4499 Attorneys for Plaintiffs Paul Gerlich and Erin Furleigh 8 Case 4:14-cv-00264-JEG-HCA Document 73 Filed 02/22/16 Page 9 of 9 Certificate of Service The undersigned hereby certifies that a true copy of the Plaintiffs’ Opposition to Motion to Stay was served upon the Defendants through the Court’s CM/ECF filing system on the 22nd day of February 2016. /s/ Robert Corn-Revere Robert Corn-Revere Copy to: Thomas J. Miller Tyler M. Smith tyler.smith@iowa.gov George A. Carroll george.carroll@iowa.gov Attorneys for Defendants