Trade
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Art and Antique Dealers of Am., Inc. v. Seggos | The plaintiffs are trade organizations representing arts and antique dealers. Plaintiff’s members have an “economic and professional interest in. . .the purchase, sale, distribution or trading of antique elephant ivory.” The Defendant is the Commissioner of DEC which is a state agency tasked with protecting New York’s natural resources and environment. The Endangered Species Act (ESA) prohibits the import and export of endangered species and the sale, offering for sale, or movement of endangered species in interstate or foreign commerce. The prohibitions, however, had exceptions for “antique articles” that are 100 years of age or older. Those wishing to import such antique articles needed to first obtain a federal permit. Under the regulations promulgated by the Secretary of the Interior, trade of African elephant ivory is generally prohibited. Only certain items containing a de minimus quantity of ivory are exempt. The state of New York imposed a ban on elephant ivory with even narrower exceptions than the ESA. The DEC only issued licenses authorizing trade in ivory pursuant to the State Ivory Law’s exceptions. The licenses actually issued by the DEC restricted the advertisement and display of ivory products. Plaintiff’s filed this action challenging the constitutionality of the State Ivory Law on preemption and First Amendment grounds. The Plaintiffs filed a motion for summary judgment and the Defendants and Intervenors crossed-moved to dismiss. The Court examined the ESA and determined that section 1535(f) did not preempt the State Ivory Law because the ESA prohibitions only applied to interstate or foreign commerce while the State Ivory Law applied to intrastate commerce. As result, the exceptions contained in the State Ivory Law did not prohibit what was authorized by the ESA. The Court granted the Defendant’s motion to dismiss on Count I because it was not “the clear and manifest purpose of Congress to preempt state laws restricting purely intrastate commerce in ivory.” The Plaintiff’s second count alleged that the State Ivory Law’s permit requirement violated the First Amendment of the United States Constitution. The display restriction in the license prohibited the physical display for sale of any item not authorized for intrastate sale under the State Ivory Law even if the merchant was authorized under the ESA to sell the item in interstate commerce. The Court determined that the in-store display of ivory products constituted commercial speech because the display constituted lawful activity, New York had a substantial interest in regulating the sale of ivory within its borders and the display restriction directly advanced that interest. The Court was unable to determine whether the display restriction burdened substantially more speech than was necessary to further the government’s legitimate interests. Ultimately the Court granted the Defendant’s and Intervenor’s cross-motions to dismiss with respect to preemption and denied both the Defendant’s and Plaintiff’s motions for summary judgment with respect to the First Amendment Claim. |
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