::::: : the wood : davidrobins.com

Cases in Constitutional Law #3: taxpayer rights further trampled

Law ·Thursday November 12, 2009 @ 00:48 EST (link)

[] Flast v. Cohen (1968): A federal taxpayer challenged the Education Act of 1965, under which Congress had spent about $1 billion, $60 million of which eventually went to religious schools. This would have been an excellent chance for the court to be consistent with Frotheringham, and rule against the taxpayer, or to use its power of judicial review to strike down any federal education legislation as unconstitutional, not being within the enumerated powers. Instead they found a way to wriggle around Frotheringham (which Harlan called out in his dissent), possibly due to anti-religious bias, passing the case back to the lower court to examine it on merit, but at least they reopened the door for taxpayer suits against unconstitutional spending.

[] Valley Forge Christian College v. Americans United [for Separation of Church and State, Inc.] (1982): The Department of the Army had closed the Valley Forge General Hospital, and declared it surplus, to be sold by the Department of Health, Education, and Welfare (HEW). The property was appraised for $577,500 but the Secretary of HEW computed a 100% public benefit allowance, permitting Valley Forge Christian College to acquire the property "without making any financial payment for it", but requiring it to "use the property for 30 years solely for the educational purposes described in [their] application." The respondent is challenging the transaction ("conveyance") "on the ground that it violated the Establishment Clause of the First Amendment." Oh what a tangled web we weave, when first we start showing favoritism to special interest groups!

To be consistent with Flast the court would clearly have to rule in favor of the respondent; and this would make sense: the government should not have been in the business of either acquiring (or managing) property not used for strict legislative function or for subsidizing private ownership of same. But they reversed the lower court's ruling in favor of Americans United, on the basis that Americans United did not have standing:
At an irreducible minimum, Art. III requires the party who invokes the court's authority to "show that the personally has suffered some actual or threatened injury as a result of the putatively illegal conduct of the defendant," Gladstone, Realtors v. Village of Bellwood (1979), and that the injury "is likely to be redressed by a favorable decision," Simon v. Eastern Kentucky Welfare Rights Org. (1976). … But the "cases and controversies" language of Art. III forecloses the conversion of courts of the United States into judicial versions of college debating forums…. The exercise of judicial power, which can so profoundly affect the lives, liberty, and property of those to whom it extends, is therefore restricted to litigants who can show "injury in fact" resulting from the action which they seek to have the Court adjudicate.
The court claimed that this case was different from Flast because:
Unlike the plaintiffs in Flast, the respondents fail the first prong of the test for taxpayer standing. Their claim is deficient in two respects. First, the source of their complaint is not a congressional action, but a decision by HEW to transfer a parcel of federal property. Flast limited taxpayer standing to challenges directed "only [at] exercises of congressional power." See Schlesinger v. Reservists Committee to Stop the War [1974] (denying standing because the taxpayer plaintiffs "did not challenge an enactment under Art. I, § 8, but rather the action of the Executive Branch").

Second, and perhaps redundantly, the property transfer about which respondents complain was not an exercise of the authority conferred by the Taxing and Spending Clause of Art. I, § 8. The authorizing legislation, the Federal Property and Administrative Services Act of 1949, was an evident exercise of Congress' power under the Property Clause, Art. IV, § 3, cl. 2. Respondents do not dispute this conclusion, and it is decisive of any claim of taxpayer standing under the Flast precedent.

Some precedents are perhaps better observed in the breach than in the observance, including this "test for taxpayer standing." The fact that the originating act was executive in nature does make the court any less able to rule on it if it violates the Constitution. Any taxpayer should have standing in any case involving the smallest amount of their money (despite the inconvenience to the court), and the presumption should be that spending less will redress the wrong by lowering taxes by the amount saved (even though in practice government tends to spend anything "saved.") While there are more egregious violations, stopping this gift of taxpayer money and requiring the government to sell the property for fair market value (and better still, remit the increase as at least a token tax reduction) would have set valuable positive precedent.

Three justices dissented and wrote dissenting opinions, holding that the Establishment Clause was written for cases of precisely this kind.

Since this concludes the first chapter (The Supreme Court and the Nature of the Constitution) and since I've been a long time finishing this entry, and the last case is somewhat long, I'll resume with chapter 2, The Legislative Branch in the next installment.

Books finished: The Knight.