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On Aug 6, 2013, at 12:39 AM, "Volokh, Eugene" <vol...@law.ucla.edu> wrote:

>                 Why would doctrines of corporate law bar a closely held 
> corporation’s owners from asserting that a regulation of the corporation 
> substantially burden their religions?  I would think that federal courts’ 
> application of corporate law is as subject to RFRA as its application of 
> other laws.
>  
>                 Let’s take a simple example:  Say that a state has a RFRA, 
> but also has a law requiring all gas stations to be open seven days a week.  
> John Smith and his brother Peter Smith co-own a gas station, through a 
> closely held corporation (Smithcorp).  They have a religious objection to 
> having any business they own operating on their Sabbath (say, Saturday), and 
> they sincerely believe that this also applies to businesses that they own 
> through a corporation.  (Lots of people, of course, sincerely believe that if 
> it’s wrong for them to do something, it would be wrong for them to do it 
> through the corporate form.  Indeed, I think we’d look askance at someone who 
> says, for instance, “Yes, I think it’s wrong for me to sell meat products, or 
> for me to let meat products be sold on my property, but it’s just fine for 
> meat products to be sold on the property of a corporation of which I am a 
> sole owner”; the corporate form is a useful legal concept that may have great 
> legal effects, but few people see it as morally significant in distancing a 
> person from what his business does.)
>  
>                 I would think that the state law substantially burdens the 
> Smiths’ religious exercise.  It puts them to the choice of (1) doing 
> something that they believe is religiously forbidden (have a corporation that 
> they own operate on a Saturday) or (2) giving up the corporate form, a device 
> of very substantial value to a business (cf. Sherbert v. Verner).  Perhaps 
> the state can overcome the RFRA claim under strict scrutiny, but I don’t see 
> how the business’s being a corporation weakens the Smiths’ RFRA claim.
>  
>                 Now of course if the Smiths did not sincerely believe that it 
> was religiously wrong for them to have their corporate-owned gas station to 
> be open Saturdays (maybe they viewed the corporation as a legal Shabbes 
> goy?), then their RFRA claim would be a loser.  But so long as they believe 
> that it’s a sin for them to operate their corporation in such a way that the 
> station is open Saturdays, I would think that the substantial burden 
> requirement is satisfied.  Or am I missing something?
>  
>                 Eugene
>  
> From: religionlaw-boun...@lists.ucla.edu 
> [mailto:religionlaw-boun...@lists.ucla.edu] On Behalf Of Marty Lederman
> Sent: Monday, August 05, 2013 8:49 PM
> To: Law & Religion issues for Law Academics
> Subject: Re: Contraception mandate - Lee
>  
> Chip and I are not that far apart.
> 
> I agree that both Braunfeld and Lee asserted that regulation of their 
> business affairs burdened their own, personal religious liberty.  The Greens 
> make the same claim in Hobby Lobby.  And thus they would surely have standing 
> to sue on their own behalf . . . if they had not incorporated.  As I said, 
> there are doctrines in corporate law, discussing in some of the Hobby Lobby 
> and Conestoga briefs and opinions, that limit the sorts of personal claims 
> that can be brought by the owners of corporations for injuries alleged to 
> themselves by virtue of legal regulation of the corporations.  I don't know 
> enough about that law to say whether it precludes the Greens's claim.
> 
> Whether Hobby Lobby has its own religious liberty claim is a very different 
> question.  The claim here involves an allegation of being forced to violate a 
> religious obligation, which I don't quite understand in the context of a 
> for-profit corporation, which presumably does not have any religious duties.  
> Bob Jones University raised a very different sort of claim, if I recall 
> correctly.
> 
> On Mon, Aug 5, 2013 at 10:25 PM, Ira Lupu <icl...@law.gwu.edu> wrote:
> Braunfeld and Lee were men engaged in business, and both were asserting that 
> regulation of their business affairs (Sunday Closing law in Braunfeld; FICA 
> contributions in Lee) burdened their religious exercise.  Those are business 
> claims of free exercise infringement. I don't see any way around that 
> characterization.
>  
> Neither case seems to have involved the corporate form, however, and I agree 
> that the contraceptive mandate cases present that novel issue.  But neither 
> the legislative history nor the pre-RFRA law will resolve it; whether 
> corporate identity precludes a religious liberty claim is a question of first 
> impression.  But we all can see that corporate identity did not preclude the 
> claim in Bob Jones University v. U.S., and I don't understand the logic of 
> allowing universities to make religious liberty claims but not business 
> corporations.
>  
> On the merits, I think the interests of female employees may be getting short 
> changed in this discussion.  Cutter says that RLUIPA should be construed, in 
> light of the Establishment Clause, to avoid shifting substantial costs to 
> third parties (see TWA v. Hardison; Caldor), and that principle of 
> construction must apply with equal force to RFRA.  If Hobby Lobby (and others 
> like it) are exempt from the mandate, the firm's female employees will be 
> made worse off; they will have to pay for their own pregnancy prevention 
> services.  (Yes, I know the scheme is under-inclusive, but that does not make 
> the cost-shifting problem go away with respect to those who are covered). Of 
> course, the question is who should pay for these services -- the employer, 
> the employees, or the government.  Anyone who thinks RFRA dictates a 
> straightforward answer to that problem is just seeing in RFRA what he or she 
> hopes to see. 
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