Judge Denies Stay in Lawsuit Challenging ATF’s Rule on Gun Sales

One of the last attacks Joe Biden’s ATF launched against gun owners was perhaps the most egregious of his administration; a redefining of who is “engaged in the business” of dealing firearms so broad and sweeping that merely offering a single gun for sale from a private collection could turn a gun owner into an “unlicensed gun dealer”, even if no sale actually took place. 

The rule is still in effect for now, though a U.S. District Court judge issued a temporary injunction last May that precludes the federal government from enforcing the rule against the plaintiffs in a lawsuit challenging the regulation. After Donald Trump issued his executive order calling on Attorney General Pam Bondi to (among other things) review the rules promulgated by the Department of Justice and the ATF during Biden’s term in office, the DOJ requested a stay in the litigation; essentially halting the case until the review has been completed and recommendations have been made. 

In a brief order on Wednesday, U.S. District Judge Matthew J. Kacsmaryk denied the government’s request, citing two reasons:

First, the Executive Order relevant to the instant case requires only that the Attorney General review rules promulgated by the ATF and propose a plan — these actions fail to present any substantial or imminent threat to the instant litigation. Defendants have failed to meet their burden of showing how mere consideration of the final rule at issue justifies an exercise of the Court’s judicial discretion. 

Second, a motion to stay filed during the later stages of litigation is not viewed favorably. Here, the case is not in its early stages; there are nearly130 entries in the ECF docket including cross-motions for summary judgment, numerous pro hac vice admissions, intervention motions, and other extensive briefing. The late stage of the proceedings in this case disfavors a stay.

The results of Bondi’s review are due in about two weeks, and if she decides that it’s not in the government’s interest to continue to defend the ATF rule and/or the Trump administration moves to formally rescind the rule the DOJ can let the government know its intentions. In the meantime the case will continue in Kacsmaryk’s court, and the next deadilne is fast approaching. On Monday the plaintiffs are due to file their briefs opposing a motion by a group of Democrat attorneys general led by New Jersey AG Matthew Platkin, who are seeking to defend the rule if the DOJ decides to drop its opposition to the lawsuit. 

It would be highly unusual for the court to grant that request, especially since the Trump administration has the authority to rescind the rule, and I’d be shocked if Kacsmaryk gives the anti-gun AGs what they’re asking for. Thanks to Wednesday’s ruling, we shouldn’t have long to wait to see if the judge denies the request, and we’ll also likely know within the next few weeks if the Trump administration plans on formally repealing the rule treating almost every gun owner who wants to sell a firearm from their personal collection as a gun dealer subject to a host of other rules and regulations.