Matthew J. Platkin v. Smith & Wesson Sales Co., Inc.
CourtNew Jersey Superior Court Appellate Division
Date FiledJanuary 26, 2023
DocketA-3292-20
StatusPublished
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Full Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-3292-20
MATTHEW J. PLATKIN,
Attorney General of the
STATE OF NEW JERSEY,
APPROVED FOR PUBLICATION
and CARI FAIS,
January 26, 2023
Acting Director of the
NEW JERSEY DIVISION OF APPELLATE DIVISION
CONSUMER AFFAIRS,
Plaintiffs-Respondents,
v.
SMITH & WESSON SALES CO.,
INC., a/k/a AMERICAN
OUTDOOR BRANDS SALES CO.,
a/k/a SMITH & WESSON CORP.,
Defendant-Appellant.
_______________________________
Argued October 31, 2022 β Decided January 26, 2023
Before Judges Whipple, Smith, and Marczyk.
On appeal from the Superior Court of New Jersey,
Chancery Division, Essex County, Docket No.
C-000025-21.
Courtney G. Saleski argued the cause for appellant
(DLA Piper LLP (US), attorneys; Courtney G. Saleski,
Christopher M. Strongosky, and Edward S.
Scheideman (DLA Piper LLP (US) of the District of
Columbia bar, admitted pro hac vice, on the briefs).
Melissa Medoway, Deputy Attorney General, argued
the cause for respondent (Matthew J. Platkin, Attorney
General, attorney; Jeremy M. Feigenbaum, State
Solicitor, Angela Cai, Deputy State Solicitor, of
counsel; Mayur Saxena, Assistant Attorney General,
of counsel and on the brief; Monica Finke, Melissa
Medoway, John T. Passante, Tim Sheehan, and Chanel
Van Dyke, Deputy Attorneys General, on the brief).
The opinion of the court was delivered by
SMITH, J.A.D.
Defendant Smith & Wesson Co., Inc., 1 appeals from a June 30, 2021
Chancery Division order directing it to comply with a subpoena issued by
plaintiffs Gurbir S. Grewal, 2 Attorney General of the State of New Jersey, and
Kaitlin A. Caruso, 3 Acting Director of the New Jersey Division of Consumer
Affairs (collectively, plaintiffs). Defendant also appeals a second June 30,
2021 Chancery Division order denying its cross-motion to dismiss, stay, or
quash the subpoena.
1
Smith & Wesson Co., Inc., will be referred to as defendant throughout this
opinion.
2
Mr. Grewal is no longer the attorney general. Andrew J. Bruck, then Acting
Attorney General of New Jersey, responded to this appeal. Mr. Bruck was
succeeded on February 14, 2022, by Matthew Platkin as Attorney General of
the State of New Jersey.
3
Ms. Caruso is no longer the acting director. Cari Fais is the current Acting
Director of New Jersey Division of Consumer Affairs.
A-3292-20
2
On appeal, defendant argues the trial court erred when it: rejected its
NAACP v. Alabama 4 arguments; failed to consider defendant's claims under
the First, Second, Fourth, and Fourteenth Amendments; and abused its
discretion by failing to dismiss, stay, or quash plaintiffs' subpoena under the
first-filed doctrine.
We affirm for the reasons that follow.
I.
On October 13, 2020, plaintiffs issued an Administrative Action
Subpoena Duces Tecum pursuant to the New Jersey Consumer Fraud Act
(CFA), N.J.S.A. 56:8-1 to -226, and the State's Hazardous Products
Regulations, N.J.A.C. 13:45A-4.1 to -4.3, requesting the production of certain
documents by defendant. Subpoena responses were due on or before
November 13, 2020. However, the Attorney General granted defendant a
thirty-day extension to submit its responses, objections, and produce
documents. The subpoena requested several categories of documents,
summarized in relevant part below:
1. [A]ll advertisements for defendant's
merchandise available in New Jersey concerning
home safety, concealed carry, personal
protection, personal defense, personal safety, or
home defense benefits of firearms;
4
NAACP v. Alabama, 357 U.S. 449 (1958).
A-3292-20
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2. all documents concerning any test, study,
analysis, or evaluation considered or undertaken
by defendant or its agents regarding the claims
made by defendant in those advertisements or
the performance of any defendant's merchandise
identified in those advertisements;
4. all documents concerning:
a. whether defendant's firearms can be
legally carried and concealed while in
New Jersey;
b. whether the concealed carry of a firearm
enhances one's lifestyle;
c. whether it is safer to confront a perceived
threat by drawing a firearm rather than
seeking to move away;
d. whether having a firearm makes a home
safer;
e. whether defendant's firearms are designed
to be more safe, reliable, accurate, or
effective than firearms made by other
manufacturers for use in personal or home
defense or other activities; and
f. whether untrained consumers could
successfully and effectively use
defendant's firearm for personal or home
defense.
5. all documents concerning any efforts by
defendant to: determine whether its
advertisements comply with New Jersey law; as
well as assess the personal, health or safety risks
possessing a firearm or drawing a firearm in
response to a perceived threat;
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6. a myriad of documents relating to defendant's
corporate organizational structure,
communications and marketing strategies, and
training materials.
On December 14, 2020, the subpoena's return date, defendant did not
produce the sought-after documents, but rather sent written objections to
plaintiffs. The next day, defendant filed suit in federal court against the
Attorney General and the Acting Director of the New Jersey Division of
Consumer Affairs, alleging that plaintiffs' subpoena violated various
constitutionally protected rights. 5
On February 21, 2021, plaintiffs filed this action to enforce the
subpoena. The one-count verified complaint alleged defendant failed to
comply with the October 13, 2020 subpoena.
5
Smith & Wesson Brands, Inc. v. Att'y Gen. of N.J., 27 F.4th 886, 889 (3d
Cir. 2022). After the district court dismissed this federal complaint, the Third
Circuit reinstated it on March 10, 2022. The Third Circuit held that the
Younger doctrine, which "requires federal courts to abstain from deciding
cases that would interfere with certain ongoing state proceedings," does not
apply. Id. at 890 (quoting Malhan v. Sec'y of U.S. Dep't of State, 938 F.3d
453, 461 (3d Cir. 2019); Younger v. Harris, 410 U.S. 37, 53-54 (1971)). It
reasoned that "'Younger extends . . . no further' than three 'exceptional
circumstances': (1) 'state criminal prosecutions'; (2) 'civil enforcement
proceedings'; and (3) 'civil proceedings involving certain orders uniquely in
furtherance of the state courts' ability to perform their judicial functions.'" Id.
at 891 (quoting Sprint Commc'ns, Inc. v. Jacobs, 571 U.S. 69, 78 (2013)). It
found the Attorney General's subpoena enforcement action does not fall within
the Sprint exceptions, and as such, "abstention was not warranted." Id. at 895.
On remand, the district court dismissed the federal complaint again, finding
the complaint barred by res judicata. Smith & Wesson Brands, Inc. v. Grewal,
No. 20cv19047, 2022 WL 17959579, at *5 (D.N.J. Dec. 27, 2022).
A-3292-20
5
On March 11, 2021, defendant moved to dismiss, stay, or quash the
subpoena, positing three arguments. First, defendant contended that its
objections, when combined with the federal lawsuit, constituted a proper
response to the subpoena. Next, it argued plaintiffs failed to demonstrate the
subpoena was related to a legitimate purpose. Finally, defendant contended
the first-filed rule compelled the trial court to dismiss or stay the action.
Defendant also appended to its motion the federal complaint describing
plaintiffs' alleged constitutional violations.
In opposition, plaintiffs submitted signed orders to show cause from
other New Jersey trial courts which had been entered in other subpoena
enforcement actions.
On May 27, 2021, Judge Jodi Lee Alper, heard arguments and issued an
order enforcing the subpoena on June 30, 2021. The judge provided a written
statement of reasons addressing the first-filed rule, the validity of the subpoena
issued pursuant to the CFA, the Hazardous Product Regulations, and
defendant's constitutional arguments.
First, the court cited settled principles associated with the first -filed
doctrine, noting that we "ordinarily stay or dismiss a civil action in deference
to an already pending substantially similar lawsuit in 'another state' unless
compelling reasons dictate that [we] retain jurisdiction." The court explained
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the doctrine is flexible where "special equities exist, such as forum shopping to
deny benefit of the natural forum to the other party, or when a party acting in
bad faith filed first where the opposing party was anticipated to file in a less
favorable forum . . . ." The court explained "[a] stay or dismissal of a secon d
filed action should be denied if an 'injustice would be perpetrated' on a party in
the first[-]filed action and 'no hardship, prejudice, or inconvenience' would be
inflicted on the other by proceeding in the second filed action."
Next, the court examined the special equities. Highlighting defendant's
non-compliance, the court found the "expected action" was the parties'
engagement in state court, whether it be plaintiffs' motion to enforce or
defendant's motion to quash the subpoena. The court considered defendant's
request for a thirty-day extension of the subpoena deadline, and found that
upon expiration of the extension, defendant immediately filed a federal
declaratory judgment action, rather than submit documents. The court found
defendant's conduct in filing the federal action to be conduct which would
"create confusion and unnecessary lawsuits." Finding defendant's state claims
"substantially similar on the 'first-filed' federal action," it concluded "special
equities exist for [the state] enforcement action to continue."
The court made additional findings. It found defendant had withdrawn
its federal application seeking emergent relief and was "pursuing the [federal]
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lawsuit through the normal course." The court also found plaintiffs'
investigation of defendant's potential CFA violations would be stalled because
"the issues in the federal case will take months and likely years to be
litigated." Taking these findings into account, the court concluded the "case
involve[d] state interests that overcome . . . considerations of comity raised by
the first-filed rule. . . ."
Turning to defendant's constitutional arguments, the court found
defendant's interpretation of NAACP "overly broad," because unlike NAACP
and similar cases where enforcement of the subpoena would have interfered
with individual members' constitutional right to freely associate under the First
Amendment, freedom of association was not implicated by subpoena
enforcement here. The court further distinguished NAACP, noting plaintiffs
did "not seek information regarding [defendant's] association with other
individuals or corporations, only information [about] representations
[defendant] made about [its] products to the public."
The court found the subpoena was tailored to obtain documents relating
to defendant's advertising claims regarding "product safety, benefits, and
effectiveness," and relating to whether defendant disclosed to New Jersey
consumers that the firearms it markets to them are "unlawful to possess or use
in the State without permit."
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The court next found the "documents, if any exist, would establish
whether [defendant] made any promises or representations to consumers and
whether its documents supported or belied those claims," and that plaintiffs
"demonstrated the relevance of the documents to its CFA investigation." The
court also found the subpoena to be limited in scope, relevant in purpose, and
specific in directive, given the "very early stage of [the] investigation."
"Thus," the court concluded, "the document requests go to the very core of
whether [defendant] may have violated the CFA."
The trial court rejected defendant's argument that "the subpoena itself
violates constitutional rights," or that it must be quashed because plaintiffs had
an improper motive in issuing it. The court found instead that the subpoena
"neither bans nor does it 'directly regulate the content, time, place, or manner
of expression.'" The trial court noted that the subpoena was issued pursuant to
an investigation in which plaintiffs had made no determinations regarding CFA
violations by defendant. Further, the court found defendant failed to
demonstrate that plaintiffs "lack[ed] a valid basis to believe that [defendant]
may have committed fraud."
The court also rejected as speculation defendant's argument that the
Attorney General's "personal views are the same as those of anti-Second
Amendment activists" and that the Attorney General had a "singular focus . . .
A-3292-20
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limited to reducing gun ownership," stating that "[p]ublic officials, including
the [Attorney General], frequently make statements of public concern." The
court continued, finding the Attorney General "[had] not impugned [defendant]
nor suggested that he has concluded that [defendant] should be charged with
violations of the [CFA]."
Judge Alper concluded the subpoena was valid on its face, and "should
not be stayed, dismissed, nor should the subpoena be quashed." She ordered
defendant to respond to the subpoena within thirty days, refrain from
destroying the requested documents, and denied defendant's cross-motion.
In a subsequent order, the judge denied defendant's motion to stay the
thirty-day deadline for production of documents.
Defendant raises the following issues on appeal:
I. NAACP Requires Resolution of All
Constitutional Objections Before Production
May Be Compelled.
A. NAACP Requires Resolution of All
Constitutional Objections Before
Production Is Ordered, and Its Holding
Was Not Limited to Freedom of
Association Cases
B. The CFA Cannot Justify Ignoring
[Defendant's] Constitutional Objections
II. The Trial Court Erred in Holding That
[Defendant's] First Amendment Rights Were
Not Violated.
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A. The First Amendment Applies to
[Defendant's] Protected Speech
B. The Attorney General's Actions Constitute
Viewpoint Discrimination against
[Defendant]
C. The Actions of the Attorney General Are
Chilling [Defendant's] Speech
III. The Constitutional Arguments That the Trial
Court Ignored Also Require Quashing the
Subpoena.
A. The Trial Court Failed to Address How
the Attorney General's Actions Violate
[Defendant's] Second Amendment Rights
B. The Trial Court Failed to Address How
the Attorney General's Conduct Violated
the Equal Protection Clause
C. The Trial Court Erred by Failing to
Address [Defendant's] Due Process
Claims
IV. The Subpoena Is Not Reasonably Related to a
Legitimate Government Inquiry Under the
Fourth Amendment.
A. The Attorney General Has Not Identified
Any Statements That Justify the Subpoena
B. The Attorney General's Sole Support for
the Subpoena Is a Regulation That
Unconstitutionally Compels Speech
C. The Trial Court Erred by Accepting The
Attorney General's Assertions Regarding
the Investigation and Ignoring The
Attorney General's Public Statements
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V. This Case Should Have Been Stayed or
Dismissed Under the First-to-File Rule.
II.
A.
THE FIRST-FILED DOCTRINE
We commence our analysis by examining the first-filed doctrine.
Defendant argues the trial court erred by not staying the subpoena under New
Jersey's 'first-filed' rule because it filed its federal suit nearly sixty days before
plaintiffs' filed their subpoena enforcement action. It also contends the trial
court abused its discretion when it found defendant had engaged in "tactical
maneuver[s]." Finally, defendant contends the trial court erred when it found a
compelling state interest in rooting out consumer fraud sufficient to make an
exception to the first-filed rule.
"New Jersey has long adhered to 'the general rule that the court which
first acquires jurisdiction has precedence in the absence of special equities.'"
Sensient Colors Inc. v. Allstate Ins. Co., 193 N.J. 373, 386 (2008) (quoting
Yancoskie v. Del. River Port Auth., 78 N.J. 321, 324 (1978)). "Under the
first-filed rule, a New Jersey state court ordinarily will stay or dismiss a civil
action in deference to an already pending, substantially similar lawsuit in
another state, unless compelling reasons dictate that it retain jurisdiction."
Ibid. (citing O'Loughlin v. O'Loughlin, 6 N.J. 170, 179 (1951)).
A-3292-20
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Special equities have been found under a variety of circumstances,
including when:
[1] one party has engaged in jurisdiction shopping to
deny the other party the benefit of its natural forum
. . . . [2] a party acting in bad faith has filed-first 'in
anticipation of the opposing party's imminent suit in
another, less favorable, forum' . . . [3] significant state
interests . . . are implicated, and when deferring to a
proceeding in another jurisdiction 'would contravene
the public or judicial policy' of the forum state. . . [4]
it would cause 'great hardship and inconvenience' to
one party by proceeding in the first-filed action and no
unfairness to the opposing party by proceeding in the
second-filed action.
[Sensient, 193 N.J. at 387-89 (internal citations
omitted).]
A "comity analysis should begin with a presumption in favor of the
earlier-filed action." Id. at 387. The analysis should be "a fact-specific
inquiry that weighs considerations of fairness and comity" to determine
whether "special equities exempt a court from deferring to a first-filed action
. . . ." Id. at 389-90. Thus, "[t]he question is not whether a state court has the
power to exercise jurisdiction over a case filed within its jurisdiction, but
whether the court should restrain itself and not exercise that power." Id. at
386-87 (citing O'Loughlin, 6 N.J. at 179).
The trial court found compelling reasons in the record to exercise its
jurisdiction: plaintiffs' investigation into defendant's potential CFA violations;
A-3292-20
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defendant's race to the federal courthouse to file its action; and the strong
potential for prejudicial delay to the fraud investigation. The court concluded
defendant's actions and corresponding forum selection were part of a strategy
designed to "create confusion and unnecessary lawsuits."
The existence of a tolling agreement between the parties does not change
the calculus. While it may prevent discovery deadlines from expiring, or
statutes of limitation from running, a tolling agreement cannot account for the
spoliation of evidence, or the fading memories of witnesses.
We are unpersuaded by defendant's first-filed arguments. To accept
defendant's position, any time the Attorney General's office issued a civil
subpoena, the target of the investigation could sprint to the federal courthouse
to quash it, effectively stopping a valid investigation in its tracks. See EEOC
v. Univ. of Pa., 850 F.2d 969, 977 (3d Cir. 1988) (compiling cases and noting
that the target's "conduct following the issuance of the EEOC's subpoena . . .
created 'a lamentable spectacle,' which was 'tantamount to the blowing of a
starter's whistle in a foot race'"); Tempco Elec. Heater Corp. v. Omega Eng'g,
819 F.2d 746, 750 (7th Cir.1987) (rigid first-filed rule "will encourage an
unseemly race to the courthouse and, quite likely, numerous unnecessary suits
. . . .").
A-3292-20
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Our application of the first to file rule here would halt future civil
investigations in their formative stages, before issues of regulatory concern
could be addressed on the merits. We decline to take such an approach, and
we find no abuse of discretion in Judge Alper's order retaining jurisdiction.
B.
STANDARD OF REVIEW
We "review [a] trial court's decision to quash [a] subpoena pursuant to
an indulgent standard of review." In re Subpoena Duces Tecum on Custodian
of Recs., 214 N.J. 147, 162 (2013). Decisions regarding "discovery matters
are upheld unless they constitute an abuse of discretion." Ibid. (citing
Pomerantz Paper Corp. v. New Cmty. Corp., 207 N.J. 344, 371 (2011)). Thus,
a reviewing court "generally defer[s] to a trial court's disposition of discovery
matters unless the court has abused its discretion or its determination is based
on a mistaken understanding of the applicable law." Ibid. (alteration in
original) (quoting Pomerantz, 207 N.J. at 371)). The court's legal
interpretation, however, is subject to de novo review. Manalapan Realty, L.P.
v. Twp. Comm. of Manalapan, 140 N.J. 366, 378 (1995). Therefore, "[a] trial
court's interpretation of the law and the legal consequences that flow from
established facts are not entitled to any special deference." Ibid.
C.
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THE CONSUMER FRAUD ACT AND THE ATTORNEY GENERAL'S
POWER TO ISSUE SUBPOENAS PURSUANT TO IT
The Legislature enacted the CFA in 1960. Sun Chem. Corp. v. Fike
Corp., 243 N.J. 319, 329 (2020). The purpose of the "CFA and attendant
regulations are '. . . designed to promote the disclosure of relevant information
to enable the consumer to make intelligent decisions in the selection of
products and services.'" Suarez v. E. Int'l Coll., 428 N.J. Super. 10, 32 (App.
Div. 2012) (quoting Div. of Consumer Aff. v. Gen. Elec. Co., 244 N.J. Super.
349, 353 (App. Div. 1990)). Specifically, the CFA provides that:
The act, use or employment by any person of any
commercial practice that is unconscionable or abusive,
deception, fraud, false pretense, false promise,
misrepresentation, or the knowing, concealment,
suppression, or omission of any material fact with
intent that others rely upon such concealment,
suppression or omission, in connection with the sale
or advertisement of any merchandise . . . is declared to
be an unlawful practice.
[N.J.S.A. 56:8-2.]
In short, the CFA is intended to "prevent deception, fraud or falsity,
whether by acts of commission or omission . . . ." Fenwick v. Kay Am. Jeep,
Inc., 72 N.J. 372, 376-77 (1977). The CFA's history "is one of constant
expansion of consumer protection[,]" Gennari v. Weichert Co. Realtors, 148
N.J. 582, 604 (1997), and its "language . . . evinces a clear legislative intent
A-3292-20
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that its provisions be applied broadly." Lemelledo v. Beneficial Mgmt. Corp.
of Am., 150 N.J. 255, 264 (1997).
The act empowers "the Attorney General to combat the increasingly
widespread practice of defrauding the consumer." Cox v. Sears Roebuck &
Co., 138 N.J. 2, 14 (1994) (quoting S. Comm. Statement to S. 199 (1960)). "In
so doing, the Legislature 'intended to confer on the Attorney General the
broadest kind of power to act in the interest of the consumer public.'" Sun
Chem., 243 N.J. at 329 (quoting Kugler v. Romain, 58 N.J. 522, 537 (1971)).
Thus,
[the CFA] authorizes the [Attorney General] to issue
subpoenas, "which shall have the force of law,"
[N.J.S.A.] 56:8-4, when [they] believe[]someone has
violated the [a]ct or "when he believes it to be in the
public interest that an investigation should be made to
ascertain whether a person in fact has engaged in, is
engaging in[,] or is about to engage in, any such
practice," [N.J.S.A.] 56:8-3. The Attorney General
may request orders from New Jersey courts: "(a)
Adjudging [a subpoena violator] in contempt of court;
(b) Granting injunctive relief without notice
restraining the sale or advertisement of any
merchandise by [a subpoena violator]; or (c) Vacating,
annulling, or suspending the corporate charter of a
corporation." [N.J.S.A.] 56:8-6.
[Smith & Wesson, 27 F.4th at 889 (fifth, sixth, and
seventh alterations in original).]
Under the CFA, "the Legislature [also] conferred upon the Attorney
General . . . the authority to 'promulgate such rules and regulations, and
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prescribe such forms as may be necessary, which shall have the force of law.'"
Perez v. Pro. Green, LLC, 215 N.J. 388, 400 (2013). Hence, "[t]he violation of
such regulations gives rise to a discrete category of CFA violations." Ibid; see
also Cox, 138 N.J. at 17 (explaining that "[u]nlawful practices fall into three
general categories: affirmative acts, knowing omissions, and regulation
violations[;]" the latter of which "is based on regulations enacted under
N.J.S.A. 56:8-4").
A subpoena issued by the Attorney General under the CFA is subject to
our court rules. Rule 1:9-2 confers the authority on the trial courts to quash or
modify any subpoena it finds to be "unreasonable or oppressive." The
standard for testing the validity of a subpoena is reasonableness. State v.
Cooper, 2 N.J. 540, 556 (1949). More specifically, whether the subject matter
in the subpoena is specified "with reasonable certainty." Ibid. "[T]here must
be a substantial showing that [the records] contain evidence relevant and
material to the issue." Ibid. Thus, "[i]f the specification is so broad and
indefinite as to be oppressive and in excess of the demandant's necessities, the
subpoena is not sustainable." Ibid.
III.
A.
THE DOCTRINE OF STRICT NECESSITY
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We next consider defendant's wide-ranging constitutional arguments,
which posit that plaintiffs' civil subpoena is invalid on its face. "Generally,
[New Jersey] courts will adjudicate the constitutionality of legislation only if a
constitutional determination is absolutely necessary to resolve a controversy
between parties." Bell v. Twp. of Stafford, 110 N.J. 384, 389 (1988). "This
doctrine of 'strict necessity,' articulated by the United States Supreme Court in
Rescue Army v. Municipal Court of Los Angeles, 331 U.S. 549 (1947), is
well-recognized." Ibid. Thus, "we do not address constitutional questions
when a narrower, non-constitutional result is available[.]" United States v.
Scurry, 193 N.J. 492, 500 n.4 (2008) (citing Randolph Town Ctr., L.P. v. Cnty.
of Morris, 186 N.J. 78, 80 (2006)); see also Donadio v. Cunningham, 58 N.J.
309, 325-26 (1971) (holding that "a court should not reach and determine a
constitutional issue unless absolutely imperative in the disposition of
litigation").
Similarly, our Court has warned that:
even if we entertained a doubt of constitutionality . . .
we would be equally bound, by judicial precedents
since the earliest days of our nation, to eschew judicial
interference with the legislative will. Chief Justice
John Marshall indeed counseled the courts to avoid,
where at all possible, confrontation with constitutional
issues. Sitting at circuit in Ex parte Randolph, 20 F.
Cas. 242, 254 (C.C.D. Va. 1833) (No. 11,558), he
stated:
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No questions can be brought before a
judicial tribunal of greater delicacy than
those which involve the constitutionality
of a legislative act. If they become
indispensably necessary to the case, the
court must meet and decide them; but if
the case may be determined on other
points, a just respect for the legislature
requires, that the obligation of its laws
should not be unnecessarily and wantonly
assailed.
[N.J. Ass'n on Correction v. Lan, 80 N.J. 199, 218,
(1979).]
It follows that when we consider defendant's constitutional arguments,
we do so through the lens of strict necessity.
B.
NAACP V. ALABAMA
Defendant first argues that NAACP v. Alabama stands for the
proposition "that the 'indispensable liberties' of the First Amendment, 'whether
of speech, press, or association,' cannot be abridged by the government unless
the state articulates compelling interests." According to defendant, NAACP
protects not only freedom of association, but also governmental trespass of
"fundamental freedoms" and "indispensable liberties." We are not persuaded.
In NAACP, the U.S. Supreme Court was confronted with a challenge to
an order requiring the production of the NAACP's membership list in response
to a subpoena issued by the Alabama state Attorney General in 1955. 357 U.S.
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at 451. The state's asserted interest in the membership information was to
"determine whether [the NAACP] was conducting intrastate business in
violation of the [state's] foreign corporation registration statute." Id. at 464.
The Court, however, rejected the state's purported interest after finding that it
was "unable to perceive that the disclosure of the names of [NAACP's] rank-
and-file members has a substantial bearing on" determining whether the
defendant had violated the state's statute. Ibid. Indeed, the Court noted:
[The NAACP] has made an uncontroverted showing
that on past occasions revelation of the identity of its
rank-and-file members has exposed these members to
economic reprisal, loss of employment, threat of
physical coercion, and other manifestations of public
hostility. Under these circumstances, we think it
apparent that compelled disclosure of [its] Alabama
membership is likely to affect adversely the ability of
petitioner and its members to pursue their collective
effort to foster beliefs which they admittedly have the
right to advocate, in that it may induce members to
withdraw [their membership] and dissuade others from
joining it because of fear of exposure of their beliefs
shown through their associations and of the
consequences of this exposure.
[Id. at 462-63.]
The Court also noted it was of no moment that the state did not take any
"direct action . . . to restrict the right of [NAACP's] members to associate
freely." Id. at 461. It observed "[i]n the domain of these indispensable
liberties, whether of speech, press, or association, the decisions of this Court
A-3292-20
21
recognize that abridgement of such rights, even though unintended, may
inevitably follow from varied forms of governmental action." Ibid. The Court
stated it was:
important to bear in mind that [NAACP] asserts no
right to absolute immunity from state investigation,
and no right to disregard [the state's] laws. As shown
by its substantial compliance with the production
order, [it] does not deny [the state's] right to obtain
from it such information as the [s]tate desires
concerning the purposes of [NAACP] and its activities
within the State.
[Id. at 463-64.]
The Court distinguished its holding in New York ex rel. Bryant v.
Zimmerman, 278 U.S. 63 (1928), where it upheld a New York statute requiring
a local chapter of the Ku Klux Klan to disclose, among other things, a roster of
its membership. NAACP, 357 U.S. at 465. In Bryant, the Court reasoned that
the state met the burden of demonstrating a compelling subordinating interest
"based on the particular character of the Klan's activities, involving acts of
unlawful intimidation and violence. . . ." Ibid. However in NAACP, the Court
held that the state did not demonstrate a compelling subordinating interest "for
the deterrent effect on the free enjoyment of the right to associate . . . ." Id. at
466.
One year prior to its holding in NAACP, the Court confronted the
"constitutional limits of legislative inquiry" in Sweezy v. New Hampshire, 354
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U.S. 234, 235-36 (1957). In that case, the state legislature empowered the
New Hampshire Attorney General to investigate on its behalf "violations of the
subversive activities act of 1951" within the state. Id. at 236. "The legislature
[also] conferred upon the Attorney General the further authority to subpoena
witnesses or documents." Id. at 238. The Attorney General, armed with his
broad investigative powers, summoned Sweezy, a college professor and self-
described Marxist-socialist, to testify under oath regarding a number of topics,
including the Progressive Party and its members. Id. at 243-44, 248. He
refused to answer questions about other members, even though he answered
many other questions concerning other topics. Id. at 243. Sweezy was later
found in contempt of court and incarcerated after raising his First Amendment
privilege and refusing to answer some of the New Hampshire Attorney
General's questions. Id. at 244-45.
The United States Supreme Court reversed the contempt order after
finding the state legislature empowered the Attorney General with a "sweeping
and uncertain mandate[,]" which left the Court uncertain as to whether "the
legislature asked the Attorney General to gather the kind of facts comprised in
the subjects upon which [Sweezy] was interrogated." Id. at 253. Indeed, it
found that "neither [the Court] nor the state courts ha[d] any assurance that the
questions [Sweezy] refused to answer [fell] into a category of matters upon
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which the legislature wanted to be informed when it initiated this inquiry." Id.
at 254. Consequently, the questions posed to Sweezy served no valid
legislative purpose, which as a result, infringed upon constitutional rights. Id.
at 254-55.
We find Judge Alper did not err in her narrow reading of NAACP, and
our analysis leads us to same outcome.
C.
DEFENDANT'S CONSTITUTIONAL CLAIMS
Defendant raises multiple constitutional objections in support of its
motion to quash, contending the trial court erred by not addressing each
constitutional argument on its merits. Taking the position that NAACP
requires all of defendant's constitutional objections to be resolved before
production of the sought-after documents can be compelled, defendant
contends: its commercial speech is protected under the First Amendment; the
Attorney General's public statements and actions prior to issuance of the
subpoena constitute viewpoint discrimination and have a chilling effect on
defendant's speech; defendant's rights under the Second Amendment 6 bars
production because its commercial speech is protected; defendant's rights
6
At oral argument, defendant contended that it had standing to assert the
Second Amendment rights of its individual customers. Defendant cited no
precedent for the argument. Because we do not reach the Second Amendment
issue, we express no opinion on defendant's standing to raise the Second
Amendment as a