On January 10, 2025, Couch White, LLP filed an amicus curiae (friend of the court) brief in the Supreme Court of the United States, case number 24A653, Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al., on behalf of Associated General Contractors of America, Inc., Associated General Contractors of New York State, LLC, The Business Council of New York State, Inc., The National Roofing Contractors Association, Sheet Metal and Air Conditioning Contractors’ National Association, and National Electrical Contractors Association in connection with an application for a stay of the nationwide preliminary injunction issued by the U.S. District Court for the Eastern District of Texas enjoining enforcement of the Corporate Transparency Act (“CTA”). Please see the full amicus curiae brief here.
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Merrick Garland, Attorney General of the United States, et al., blocking enforcement of the CTA. This injunction relieved businesses of the requirement to file beneficial ownership reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) by January 1, 2025. In response, the U.S. Attorney General sought an emergency stay from the Fifth Circuit Court of Appeals. On December 18, 2024, Couch White submitted an amicus curiae brief in opposition to the U.S. Attorney General’s emergency stay application with the Fifth Circuit Court of Appeals. Read more here.
On December 23, 2024, the Fifth Circuit granted the stay, reinstating the CTA’s enforcement. However, in a surprising reversal on December 26, 2024, the Fifth Circuit vacated its earlier order, effectively restoring the District Court’s injunction. In response once again, on December 31, 2024, the U.S. Attorney General sought another emergency stay application, this time with the Supreme Court of the United States.
The amicus curiae brief submitted by Couch White on January 10, 2025 opposes the government’s emergency stay application, which, if granted, would reinstate the reporting requirements of the CTA and require businesses to file a beneficial ownership information report by an uncertain date. The brief argues that the CTA is unconstitutional because it attempts to regulate noneconomic activities that fall outside Congress’s Commerce Clause powers and also emphasizes the significant financial burden the CTA places on small businesses and the irreparable harm and administrative chaos that would be created if a stay were granted.
It is anticipated that the Supreme Court will issue an Opinion on the government’s application for a stay in the very near future. If you have any questions regarding the amicus curiae brief, please contact Charles Carluccio, Esq. (ccarluccio@couchwhite.com).