September 9, 2009

Court Denies Plaintiffs' Injunction Request in Federal Contractor E-Verify Litigation

On September 4, 2009, the U.S. District Court that recently dismissed Plaintiffs’ law suit in Chamber of Commerce of the U.S. vs. Napolitano, denied the Plaintiffs’ emergency motion for an injunction seeking to stop the rule that would require federal contractors to use E-Verify beginning September 8th from going into effect pending Plaintiff’s appeal of the case to the Fourth Circuit. The rule thus became effective as scheduled. For details on what the rule means for federal contractors, please see our August 2009 GT Alert and our Federal Contractor Alert.

The Defendants had filed an opposition to the Plaintiffs’ emergency motion on September 3rd in which they argued that Plaintiffs were not entitled to what courts have termed the “extraordinary and drastic remedy” of an injunction, that Plaintiffs did not have a likelihood of success on the merits of the appeal, that they had not established that they were likely to suffer irreparable harm due to the rule, and that it was in the public interest to enforce the rule because it would improve economy and efficiency in the field of government contracts.

The Court agreed with the Defendants’ main arguments and acknowledged that the Plaintiffs had “presented a serious question, and arguably a factually novel case,” but that such a presentation did not warrant an injunction given that they were unable to establish both that they were likely to succeed on the merits of the appeal, and -- while recognizing that “some harm and inconvenience always accompanies changes”-- that they were likely to suffer irreparable harm in the absence of injunctive relief.

The Plaintiffs will continue to pursue their appeal of the case in the Fourth Circuit.