A state judge dismissed NRA motions to dismiss, pause or transfer the case to dissolve it to another court. | Michael Conroy / AP Photo
NEW YORK – State Attorney General Tish James’s lawsuit aimed at dissolving the National Rifle Association could go ahead, a state judge ruled on Thursday.
Judge Joel Cohen denied NRA motions to dismiss the case, suspend it or transfer it to a different court.
The attorney general filed a lawsuit in the state court in August, seeking to put the NRA out of business, accusing its leaders of misusing funds and engaging in personal negotiations.
The NRA argued that the case should be dismissed because it belongs to a federal court, not a state court, and that it should be heard in Albany instead of Manhattan.
The judge rejected all of these requests.
“The attorney general is primarily responsible for law enforcement in the state of New York. It is enforcing a New York state statute, ”Cohen said in a virtual hearing. “It would be inappropriate, in these circumstances, to find that the attorney general cannot pursue his claims in the state court just because one of the defendants prefers to proceed in federal court.”
The suit accuses Wayne LaPierre, the NRA’s longtime CEO, of taking a luxury family vacation at the expense of the NRA – flying his family to the Bahamas on private jets eight times in five years – using NRA money to buy gifts from Christmas for an associate, and using a secret contract to guarantee yourself a lifetime income from the gun group.
State law gives the attorney general supervision over New York-registered nonprofits, including the ability to file a lawsuit to dissolve a nonprofit corporation. The suit argues that the NRA must be dissolved because it showed a pattern of conducting its business in a persistently fraudulent or illegal manner, violating its tax-exempt status. He says the NRA has diverted millions of dollars from its charitable mission, in violation of the laws governing nonprofit organizations.
The financially troubled arms rights group announced last week that it was “leaving New York” to reincorporate in Texas and declaring bankruptcy. “The NRA abandons a state where elected officials have put as a weapon the legal and regulatory powers they exercise to penalize the Association and its members for purely political purposes,” said the organization in its announcement.
But the attorney general said the move should not prevent his case from proceeding.
The NRA filed its own counter suit in the federal court in Albany, shortly after James filed the lawsuit, accusing his constitutional rights of being violated and calling James’ actions retaliation for exercising his rights under the first amendment. The NRA argued that it would be inconvenient for the two cases to be heard in different courts in different locations.
“It’s a unique case,” NRA attorney Sarah Rogers said in court on Thursday. “We have real constitutional claims here.”
She also argued on technical grounds that Albany, not New York City, was the appropriate location for the case, based on where the organization’s office was incorporated.
“The NRA is fighting for its very existence,” she said. “As long as there is some ambiguity, why don’t we fight for our existence in the place we choose?”
But Jonathan Conley, a lawyer in the AG’s office, said the court should be allowed to proceed to the Manhattan state court, and the judge agreed.
“The state of New York and this court have a vital interest in maintaining this state enforcement action,” said Conley. “The complaint is based entirely on New York law. … This action involved public interests and issues of state law that are of critical importance to this state and this court. “
“Today’s order reaffirms what we have always known: the NRA cannot dictate whether and where they will account for their actions,” said James in a statement. “We thank the court for allowing our case to proceed and we hope to hold the NRA accountable.”