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Court: Hobby Lobby Doesn’t Have to Pay Fines While it Challenges HHS Mandate

by Steven Ertelt | Washington, DC | LifeNews.com | 6/27/13 2:13 PM

National

A court ruling today says Christian-run business Hobby Lobby does not have to pay fines under the HHS mandate while its legal challenges continue.

From a report on the decision: http://newsok.com/article/3856764

A federal appeals court in Denver has reversed a lower court’s decision to deny Hobby Lobby Stores Inc.’s quest for an injunction against part of the Affordable Care Act that requires it to cover the cost of emergency contraceptives for some of its employees.

In a 168-page ruling issued Thursday, the appellate court sent Hobby Lobby case back to a lower court for further review. The panel of nine appellate court judges who heard arguments in the case in May ruled unanimously that Hobby Lobby and its affiliated Christian bookstore chain Mardel have the right to sue over the Affordable Care Act. The ruling is a blow to the federal government’s argument that as for-profit corporations, the companies cannot claim that the health care law is a violation of constitutionally protected religious freedoms. Five of the nine judges found that Hobby Lobby meets at least part of the legal standard to receive a temporary injunction against the health care law while its lawsuit is ongoing. The other four judges said the company fully meets the legal standard and that the appellate court should order the lower court to grant the company an injunction.

Hobby Lobby could have paid as much as $1.3 million each day in fines for refusing to pay for birth control or abortion-causing drugs under the mandate.

In December, a two-judge panel of the 10th Circuit denied Hobby Lobby’s request to temporarily stop enforcement of the abortion pill mandate. Now, nine 10th Circuit judges will hear Hobby Lobby’s case. Arguments are expected to take place this Spring.

The mandate would force the Christian-owned-and-operated company to provide the “morning-after pill” and “week-after pill” in its health insurance plan, or face crippling fines up to $1.3 million per day.

“The Green family is disappointed with this ruling,” said Duncan. “They simply asked for a temporary halt to the mandate while their appeal goes forward, and now they must seek relief from the United States Supreme Court. The Greens will continue to make their case on appeal that this unconstitutional mandate infringes their right to earn a living while remaining true to their faith.”

Previously, the 10th Circuit judges denied the motion calling the religious burden to the Green family “indirect and attenuated.”

The lawsuit was filed in the US District Court for the Western District of Oklahoma and U.S. District Judge Joe Heaton issued a ruling rejecting Hobby Lobby’s request to block the mandate. Judge Heaton said that the company doesn’t qualify for an exemption because it is not a church or religious group.

“Plaintiffs have not cited, and the court has not found, any case concluding that secular, for-profit corporations such as Hobby Lobby and Mardel have a constitutional right to the free exercise of religion,” the ruling said.

Heaton wrote that “the court is not unsympathetic” to the company’s desire to not pay for abortion-causing drugs but he said the Obamacare law “results in concerns and issues not previously confronted by companies or their owners.”

The appeals brief reads in part: “[I]n less than six weeks, [the Green family] must either violate their faith by covering abortion-causing drugs, or be exposed to severe penalties—including fines of up to $1.3 million per day, annual penalties of about $26 million and exposure to private suits.”

“The district court accepted that the Green family engages in a religious exercise by refusing to cover abortion-causing drugs in their self-funded health plan. There was thus no question that the Green family engages in ‘religious exercise,’” it adds. “[T]he Supreme Court has long rejected any distinction between “direct” and “indirect” burdens in evaluating whether regulations infringe religious exercise.”

Duncan said the judge’s decision did not question that the Green family has sincere religious beliefs forbidding them from providing abortion-causing drugs. The court ruled, however, that those beliefs were only “indirectly” burdened by the mandate’s requirement that [Hobby Lobby] provide free coverage for specific, abortion-inducing drugs in [the company’s] self-funded insurance plan.

The Beckett Fund says there are 52 separate lawsuits challenging the HHS mandate, which is a regulation under the Affordable Care Act (aka “Obamacare”). The pro-life legal group, along with Hobby Lobby represents: Wheaton College, East Texas Baptist University, Houston Baptist University, Belmont Abbey College, Colorado Christian University, the Eternal Word Television Network and Ave Maria University.

The mandate has engendered strong opposition from pro-life groups and Catholic and evangelical Christian companies that do not want to be compelled to pay for drugs for employees that may cause abortions.

The most recent polling data from December 2012 shows Americans support a religious exemption to the mandate.