10 Ring Precision, Inc., et al. v. Jones, No. 12-50742 (5th Cir. 2013)Annotate this Case
Appellants claimed that ATF lacked statutory authority to issue a demand letter to firearms licensees classified as a "dealer" or "pawnbroker" in certain states, and even if it possessed statutory authority, that its decision to issue the demand letter to the chosen licensees was arbitrary and capricious. The court concluded that 18 U.S.C. 923(g)(5)(A) "unambiguously authorized the demand letter," and the court's "inquiry ends at Chevron step one." The court rejected appellants' claim that section 923(g)(1)(A), 923(g)(1)(B), 923(g)(3)(A), and 923(g)(7) must be read to limit ATF's demand letter authority; the demand letter did not run afoul of section 926(a)'s prohibition; and the appropriation rider at issue did not prohibit ATF from issuing the demand letter because it fell short of consolidating or centralizing records. The court addressed the remaining claims, concluding that ATF's decision was not arbitrary and capricious. Accordingly, the court affirmed the judgment of the district court.