Hobby Lobby Wins Preliminary Injunction
After hearing brief arguments, U.S. District Judge Joe Heaton issued the preliminary injunction for the Oklahoma arts and crafts chain. The temporary injunction, until October 1, will protect Hobby Lobby from $1.3 million per day in federal fines ($100 per day per employee). Hobby Lobby will not face that astronomical fine until the court finally decides whether its owners will be required to supply free abortifacient drugs to their employees in compliance with ObamaCare.
"The tide has turned against the HHS mandate," said Kyle Duncan, General Counsel with the Becket Fund for Religious Liberty, and lead attorney for Hobby Lobby. In an opinion read from the bench, the court said, "There is a substantial public interest in ensuring that no individual or corporation has their legs cut out from under them while these difficult issues are resolved."
The victory came less than a month after a landmark decision by the full 10th Circuit Court of Appeals in Denver which ruled 5-3 that Hobby Lobby can exercise religion under the First Amendment and is likely to win its case against the mandate. The appellate court overturned Judge Heaton's November 19 denial of Hobby Lobby's request for an injunction for the popular craft chain, sending the matter back to Heaton.
Oklahoma Congressman James Lankford praised the decision. "I am pleased Judge Heaton decided to shield Oklahoma's Hobby Lobby from the exorbitant costs the President's healthcare law would levy on their family-owned business. I am grateful that Hobby Lobby will not be unfairly penalized while their original case awaits a decision. I pray the court will provide final clarity and rule on this case before the October 1 injunction deadline."
The decision is a major victory for not only Hobby Lobby, but the religious liberty of all for-profit businesses. There are now 63 separate lawsuits challenging the Department of Health and Human Services mandate. The Becket Fund led the charge against the unconstitutional HHS mandate. The Becket Fund for Religious Liberty is a non-profit, public-interest law firm dedicated to protecting the free expression of all religious traditions -- from Anglicans to Zoroastrians. For 18 years its attorneys have been recognized as experts in the field of church-state law, and they recently won a 9-0 victory in Hosanna-Tabor v. EEOC, which The Wall Street Journal called one of "the most important religious liberty cases in a half century." The Becket Fund led the charge against the unconstitutional HHS mandate, and in addition to Hobby Lobby represents: Wheaton College, Belmont Abbey College, East Texas Baptist University, Houston Baptist University, Colorado Christian University, the Eternal Word Television Network (EWTN), and Ave Maria University.
Washington politicians cannot force families to abandon their faith just to earn a living, said Lori Windham, Senior Counsel for the Becket Fund for Religious Liberty. "Every American, including family business owners like the Greens, should be free to live and do business according to their religious beliefs." The Hobby Lobby case has been closely watched by religious groups because it is likely to dictate how ObamaCare regulations will be applied to non-religious businesses with religious owners who claim that the law violates their conscience. With over 13,000 full-time employees, Hobby Lobby is by far the largest of the private companies protesting the law. Along with several other plaintiffs, it is represented by the Beckett Fund for Religious Liberty, a nonprofit organization that provides legal assistance in religious-liberty cases. In early January, the company announced it was delaying updates to its employee health plans in an effort to temporarily avoid the fines. According to the regulations, the mandates do not go into effect until the health plans are updated in 2013.
The company filed the federal lawsuit on September 12, 2012, against the Obama administration over the regulations issued for implementation of the Patient Protection and Affordable Care Act.The lawsuit seeks a permanent injunction prohibiting the mandate's enforcement against the Green family and its businesses, "and other individuals and organizations that object on religious grounds to providing insurance coverage for abortion-causing drugs and devices, and related education and counseling." The rules require religious employers to pay for or refer women for abortion-causing drugs, violating their conscience or religious beliefs.
The company says the mandates forces the Christian-owned business to provide, without co-pay, the "morning after pill" and "week after pill" in their health benefits. "These abortion-causing drugs go against our faith, and our family is now being forced to choose between following the laws of the land that we love or maintaining the religious beliefs that have made our business successful and have supported our family and thousands of our employees and their families," said David Green, Hobby Lobby CEO and founder. "We simply cannot abandon our religious beliefs to comply with this mandate." Hobby Lobby is the only non-Catholic-owned business to file a lawsuit against the mandate.
The arts and crafts retailer operates from a mile-long distribution and manufacturing complex in Oklahoma City. It began as Greco Products, a miniature picture frame company founded in a garage by David Green in 1970. Hobby Lobby officially began operation in 1972 with a single store and has been growing ever since. Today, Hobby Lobby has 514 stores in 41 states offering more than 65,000 crafting and home decor products. The company also includes 35 Mardel stores which sell Christian books and education supplies in seven states.
Green says, "the foundation of our business has been, and will continue to be strong values, and honoring the Lord in a manner consistent with Biblical principles." The Greens, who close of all of their stores on Sunday, have long been public about their religious beliefs. "We believe wholeheartedly that it is by God's grace and provision that Hobby Lobby has been successful," says Green.
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