Date: December 19, 2024
WASHINGTON, D.C. — The Hamilton Lincoln Law Institute (HLLI) filed an amicus brief with the U.S. Court of Appeals for the Fifth Circuit in the case Texas Top Cop Shop, Inc. v. Merrick Garland, opposing the Department of Justice’s emergency motion to stay a district court’s nationwide injunction against the enforcement of the Corporate Transparency Act (CTA).
HLLI argues that the CTA is unconstitutional and that the district court’s injunction is critical to protecting the Fourth Amendment rights of business owners. The Fourth Amendment protects individuals from unreasonable searches and seizures by the government and is intended to protect Americans’ privacy rights. The CTA requires many businesses, including corporations and limited liability companies (LLCs), to submit personal ownership information to a federal database accessible by law enforcement without a warrant or suspicion of a crime.
“Congress cannot trample constitutional rights under the guise of fighting crime,” said Ned Hedley, Attorney at HLLI. “The Corporate Transparency Act disregards both the limits of congressional power and the privacy protections guaranteed by the Fourth Amendment.”
The CTA was enacted to combat crimes such as money laundering and tax evasion. However, the law faces growing legal challenges due to its sweeping reporting and surveillance requirements. Judge Amos Mazzant of the Eastern District of Texas and Judge Liles Burke in the Northern District of Alabama ruled that the CTA exceeds Congress’s powers. In Texas, Judge Mazzant issued a nationwide injunction barring enforcement of the CTA’s reporting requirements, which were set to take effect on January 1, 2025.
The DOJ appealed this decision to the Fifth Circuit and has filed an emergency motion to stay the injunction while the appeal proceeds. HLLI’s amicus brief opposes this motion, asserting that the district court correctly determined the CTA to be unconstitutional and that implementing its provisions would infringe on Fourth Amendment protections against unreasonable searches and seizures.
HLLI’s brief emphasizes that the CTA’s reporting requirements parallel the invasive practices that led to the adoption of the Fourth Amendment in the Bill of Rights. The law’s unrestricted database access by law enforcement without judicial oversight sets a dangerous precedent that undermines privacy and constitutional protections.
“This case raises fundamental questions about individual privacy and the preservation of individual rights,” added Ned Hedley. “HLLI’s involvement in this case reflects our commitment to defending constitutional governance and the rights of individuals and businesses.”
The name of the case is Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al., 24-40792 (5th Cir.).
For more information about this case, please see our brief, our case page or contact the attorney(s) below:
Ned Hedley, Attorney 312-342-6008, ned.hedley@hlli.org.
* * *
The Hamilton Lincoln Law Institute is a public interest law firm dedicated to battling the progressive left’s agenda by defending civil liberties, countering government overreach, and fighting class action abuse.
As a nonprofit, tax-exempt organization as defined by section 501(c)(3) of the Internal Revenue Code, HLLI relies on support from individuals and foundations that share a commitment to individual liberty, free enterprise, and limited government. To learn more, visit http://www.hlli.org.