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USA Constitutional Law
Table of Contents: Primary

United States Constitutional Law
United States Supreme
Court Case Summaries
May 05, 2003

United States constitutional Law
United States Supreme Court Case Summaries
[USSC-CASELAW]May 05, 2003
Daily Opinion Summaries for 05/05/03
Date: Tue, 6 May 2003 01:17:56 -0700

U.S. Supreme Court Opinions
Case Summaries -May 05, 2003
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TABLE OF CONTENTS

CONSTITUTIONAL LAW, CONSUMER PROTECTION LAW, INJURY AND TORT LAW, TAX-EXEMPT
ORGANIZATIONS
* ILLINOIS EX REL MADIGAN v. TELEMARKETING ASSOCS., INC.

CRIMINAL LAW & PROCEDURE
* KAUPP v. TEXAS
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CONSTITUTIONAL LAW, CONSUMER PROTECTION LAW, INJURY AND TORT LAW, TAX-EXEMPT
ORGANIZATIONS

ILLINOIS EX REL MADIGAN v. TELEMARKETING ASSOCS., INC., No. 01-1806
(U.S.S.C. May 05, 2003)

Respondents, Illinois for-profit fundraising corporations and their owner (collectively Telemarketers), were
retained by VietNow National Headquarters, a charitable nonprofit corporation, to solicit donations to aid
Vietnam veterans. The contracts between those parties provided, among other things, that Telemarketers
would retain 85 percent of the gross receipts from Illinois donors, leaving 15 percent for VietNow. The
Illinois Attorney General filed a complaint in state court, alleging, inter alia, that Telemarketers represented
to donors that a significant amount of each dollar donated would be paid over to VietNow for specifically
identified charitable endeavors, and that such representations were knowingly deceptive and materially false, constituted a fraud, and were made for Telemarketers' private pecuniary benefit. The trial court granted Telemarketers' motion to dismiss the fraud claims on First Amendment grounds. In affirming, the Illinois
Appellate and Supreme Courts placed heavy weight on Schaumburg v. Citizens for a Better Environment,
444 U. S. 620, Secretary of State of Md. v. Joseph H. Munson Co., 467 U. S. 947, and Riley v. National Federation of Blind of N. C., Inc., 487 U. S. 781. Those decisions held that certain regulations of charitable solicitation barring fees in excess of a prescribed level effectively imposed prior restraints on fundraising, and
were therefore incompatible with the First Amendment. The state high court acknowledged that this case
involved no such prophylactic proscription of high-fee charitable solicitation. Instead, the court noted, the
Attorney General sought to enforce the State's generally applicable antifraud laws against Telemarketers
for specific instances of deliberate deception. However, the Illinois Supreme Court said, Telemarketers'
solicitation statements were alleged to be false only because Telemarketers contracted for 85% of the gross receipts and failed to disclose this information to donors. The court concluded that the Attorney General's complaint was, in essence, an attempt to regulate Telemarketers' ability to engage in a protected activity based upon a percentage-rate limitation--the same regulatory principle rejected in Schaumburg, Munson, and Riley.

Held: Consistent with this Court's precedent and the First Amendment, States may maintain fraud actions when fundraisers make false or misleading representations designed to deceive donors about how their donations will
be used. The Illinois Attorney General's allegations against Telemarketers therefore state a claim for relief that
can survive a motion to dismiss. Pp. 8-21.

States may maintain fraud actions when fundraisers make false or
misleading representations designed to deceive donors about how
their donations will be used, consistent with Supreme Court
precedent and the First Amendment.
To read the full text of this opinion, go to:
http://laws.lp.findlaw.com/us/000/011806.html
ILLINOIS EX REL MADIGAN v. TELEMARKETING ASSOCS., INC., No. 01-1806(U.S.S.C. May 05, 2003)

CRIMINAL LAW & PROCEDURE

KAUPP v. TEXAS, No. 02-5636 (U.S.S.C. May 05, 2003)
Where a criminal defendant was arrested without probable cause prior
to his being questioned by police, his subsequent confession must be
suppressed where the state failed to allege any meaningful
intervening event between the illegal arrest and the confession.

To read the full text of this opinion, go to: [PDF File]
http://www.supremecourtus.gov/opinions/02pdf/02-5636.pdf
KAUPP v. TEXAS, No. 02-5636 (U.S.S.C. May 05, 2003)

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Opinion Summaries Archive September 2000 to the Present
Click here to browse or search the archive for specific opinions:
http://caselaw.lp.findlaw.com/casesummary/index.html
FINDLAW DAILY OPINION SUMMARIES - May 05, 2003
U.S. SUPREME COURT
http://www.findlaw.com/casecode/supreme.html
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