A federal court imposed a $7.8 million judgment against a Florida company, Indie Guns, for failing to respond to a lawsuit brought by the New York Attorney General’s Office. The lawsuit, originally brought in 2022, seeks to recover damages from ten companies that sell gun parts that do not have serial numbers. The other nine defendants answered the suit and launched a vigorous defense, but Indie Guns simply “ghosted” the court.
This default judgment against Indie Guns reflects two disparate principles: the new trend of litigation over the manufacture and sale of firearm components that can be used to assemble “ghost guns” and the enduring axiom that simply ignoring legal problems does not make them go away.
The default judgment is not a ruling on the merits of the suit, but an award to the prevailing party issued because the opponent missed deadlines or simply ignored the suit.
New York's Litigation Takes Has Ghost Gun Manufacturers in Legal Crosshairs
The other nine defendants in the New York suit moved to dismiss the suit on several grounds, arguing that the civil claims were barred by federal law and that their conduct was protected by the Second Amendment. Specifically, these gun part manufacturers asserted immunity under the Protection of Lawful Commerce in Arms Act (PLCCA), which was passed by Congress in 2005 to shield firearms manufacturers and gun dealers from liability in most civil suits, and they moved for dismissal of New York’s claims.
These motions fell short, however, when the court found that exceptions to PLCCA applied to New York’s claims and allowed the lawsuit to proceed. PLCCA typically prevents successful suits against gun manufacturers from those seeking damages resulting from gun violence. However, the court was persuaded by the evidence that the defendants specifically marketed their gun components to people who would otherwise be prohibited from owning firearms because of court orders or disqualifying convictions. These types of claims were outside of the scope of PLCCA’s protections.
Similarly, the court brushed aside the defendants’ Second Amendment arguments, finding that regulation of the sale and trade of firearms was allowable and consistent with historical tradition, as required by the new standard set forth by the 2022 Supreme Court ruling in New York State Rifle & Pistol Association, Inc. v. Bruen.
The Bruen ruling has changed the analytical framework used by courts for evaluating regulations against the backdrop of the Second Amendment’s right to bear arms, and it has led to an explosion of litigation and appeals aimed at moving the needle on which gun laws can meet or fall short of the constitutional standard.
New Biden Administration Rules on Ghost Guns in Jeopardy
Against the backdrop of Bruen, the federal government has been embroiled in litigation regarding its attempts to control the proliferation of “ghost guns” – firearms that are difficult to trace because they lack serial numbers. The Bureau of Alcohol, Tobacco, and Firearms (ATF) announced a rule that would ban the sales of “build buy shoot” kits, which allow purchasers to assemble a complete working firearm (with no serial number or background check) in about half an hour.
The Biden Administration, like New York's Attorney General, highlighted statistics that have tracked a dramatic increase in the use of untraceable ghost guns by criminals to justify the change. This regulation prompted a swift legal challenge from gun advocacy groups, which wound up with the Fifth Circuit Court of Appeals striking down the regulation for being overly restrictive.
In California, a different federal court ruled that the same ATF rule was actually too lenient, as a result of a lawsuit brought by California’s Attorney General and gun control advocacy groups. That suit sought to invalidate part of the regulation to spur the ATF into closing loopholes in the regulation of ghost guns.
Supreme Court Likely to Have the Final Word on Gun Rules
The Supreme Court seems poised to hear a series of challenges to laws and regulations put forward by the federal government and by the states. The Supreme Court has already entered an order to reinstate the challenged ATF ghost gun regulation, pending an appeal of the Fifth Circuit’s ruling to stop its application.
The New York case will likely also eventually end up in the appellate courts. After the default judgment against it, Indie Guns will have 7.8 million reasons to file an appeal.
Related Resources:
- Supreme Court Considers Legality of Bump Stock Ban (FindLaw’s Federal Courts)
- Death Penalty Sought for Buffalo Mass Shooter (FindLaw's Courtside)
- Gun Laws and Liability (FindLaw's Learn About the Law)
