Streicher's, Inc. v. Hummel
- Paul Magnuson
- 0:23-cv-00995
- U.S. District Court · District of Minnesota
- 15
In Streicher’s v. Hummel, Judge Magnuson granted a preliminary injunction preventing firearms-license revocation pending proceedings on the merits.
Streicher’s, Inc. may continue operating under its federal firearms licenses temporarily; Hans C. Hummel and ATF may not enforce the revocation during the injunction period. Streicher’s must post a $100 bond.
What happened
In Streicher’s, Inc. v. Hummel, the Bureau of Alcohol, Tobacco, Firearms and Explosives sought to revoke Streicher’s two federal firearms licenses based on alleged violations involving firearm transfers and background checks. Streicher’s asked the court to stop the revocation while its challenge proceeded.
The court found that Streicher’s had a fair chance of succeeding, especially because the agency hearing officer was married to the agency’s attorney and because the alleged violations arose largely from one transaction. The court also found that losing the licenses would likely cause severe, nonfinancial harm to Streicher’s business, while keeping the licenses in place would not significantly harm the agency or the public.
Judge Magnuson granted Streicher’s preliminary injunction. Hans C. Hummel was barred from enforcing the license revocation until 60 days after the merits proceedings ended, Streicher’s had to post a $100 bond, and the case was set for a bench trial during the court’s October 2023 trial term.
The detailed version
- Streicher's, Inc. v. Hummel · No. 0:23-cv-00995
- Paul Magnuson
- Apr. 20, 2023
Background
Streicher’s is a law-enforcement supply store and federal firearms dealer. It held a type 01 license to sell firearms and a type 09 license to sell destructive devices. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated Streicher’s after a dispute about the transfer of two pistols involving Big Lake Police Chief Matthew J. Hayen and former Chief Joel Scharf.
ATF ultimately determined that Streicher’s had willfully violated the Gun Control Act in three ways: by making false statements about who received one pistol, by selling a firearm to a person who did not reside in the state where Streicher’s did business, and by transferring firearms without contacting the National Instant Criminal Background Check System. The agency issued a final notice revoking both licenses, effective April 25, 2023.
Hans C. Hummel served as the hearing officer for Streicher’s administrative revocation hearing. Theresa Hummel represented ATF at that hearing, and Streicher’s alleged that she and Hans C. Hummel did not disclose that they were married.
Legal standard and analysis
The court considered Streicher’s request for a preliminary injunction, which is an order preserving the existing situation while a case proceeds. The court evaluated four factors: Streicher’s likelihood of success, the threat of irreparable harm, the balance of harms, and the public interest.
The court stated that the relationship between the hearing officer and ATF’s attorney appeared to create evident partiality and that a hearing on license revocation must be conducted before a neutral decision-maker. On the preliminary record, the court said the conflict appeared to violate due-process principles and could render the hearing outcome void. However, the court reserved a specific ruling on that issue pending further development of the record because an injunction was appropriate even without finally deciding the conflict question.
The court also concluded that Streicher’s had a fair chance of prevailing on its challenge to the revocation. Although one willful violation can support revocation, the court noted that ATF identified no other case revoking a federal firearms license for conduct involving a small number of violations arising from essentially one transaction. The court found that losing the licenses would likely eliminate most of Streicher’s firearms business, cause customers to go elsewhere, and threaten the continued operation of the business. It further found that maintaining the licenses temporarily would not harm ATF and that the public interest favored allowing Minnesota law-enforcement agencies to continue obtaining firearms and destructive devices in the state while the challenge proceeded.
Order
The court granted Streicher’s Motion for Preliminary Injunction. It enjoined Hans C. Hummel from enforcing the revocation of Streicher’s federal firearms licenses until 60 days after the merits proceedings concluded. Streicher’s was required to post a $100 bond. The injunction was set to expire 60 days after entry of final judgment resolving Streicher’s claims, unless the court ordered otherwise, and the matter was set for a bench trial during the October 2023 trial term.
The order did not finally resolve the merits of Streicher’s challenge to the license revocation.
Read the full 15-page opinion on CourtListener, the free public archive maintained by the Free Law Project.