PAUL BARBADORO, District Judge.
The National Firearms Act ("NFA") imposes strict registration requirements and a special tax on anyone who makes, sells, or possesses certain dangerous weapons such as machine guns, short-barreled rifles and silencers. 26 U.S.C. §§ 5801-72. Sig Sauer, Inc. plans to produce and sell a rifle with a silencer component known as a "monolithic baffle core" that is permanently affixed to the barrel of the rifle. It contends that the baffle core is exempt from registration under the NFA because it does not meet the statutory definition of a silencer. The Bureau of Alcohol, Tobacco, and Firearms ("ATF") rejected Sig Sauer's argument in an informal adjudicatory proceeding and instead concluded that the baffle core should be treated as a silencer under the NFA. 18 U.S.C. § 921(a)(24). The issue this case presents is whether the ATF's determination was "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance of law" under the Administrative Procedure Act ("APA"), 5 U.S.C. § 706(2)(A).
The NFA applies to "particularly dangerous weapons," United States v. Posnjak, 457 F.2d 1110, 1113 (2d Cir.1972), including shotguns with barrels less than 18 inches in length, rifles with barrels less than 16 inches in length, machineguns, silencers, and destructive devices. 26 U.S.C. § 5845(a) (defining "firearm" for purposes of the NFA). The NFA sets "rigorous registration and taxation requirements for the dealers and transferors of those weapons." Posnjak, 457 F.2d at 1113. For example, each NFA firearm must be registered in a central federal registry and bear a serial number. 26 U.S.C. §§ 5841, 5842. The NFA also imposes a $200 tax on the making of an NFA firearm and on each subsequent transfer of the firearm. 26 U.S.C. §§ 5811, 5821; see Posnjak, 457 F.2d at 1114. Violations of the NFA are punishable by substantial fines and imprisonment for up to ten years. 26 U.S.C. § 5871.
The NFA adopts the definition of the term "firearm silencer" used in the Gun Control Act ("GCA").
18 U.S.C. § 921(a)(24). This definition broadly encompasses both completed silencers and parts that can be used to produce silencers. Any combination of parts that is intended to be used to produce a silencer will be deemed to be a silencer under both the NFA and the
On April 4, 2013, Sig Sauer submitted a prototype firearm to the ATF and sought confirmation that the prototype would not be subject to registration under the NFA.
The ATF responded to Sig Sauer's request by noting that the baffle core was a silencer component and concluding, without further explanation, that it qualified as a silencer under the NFA because it was a part intended only for use in a silencer. See A.R. 791-93.
Sig Sauer followed up several months later with a request for reconsideration. See A.R. 796-808. In pressing its request, Sig Sauer reiterated its statement that it intended the baffle core to serve as a muzzle brake rather than a silencer. See A.R. 796. It also submitted sound testing data for the prototype that showed that the baffle core did not reduce the sound of a firearm discharge when used without an outer tube. See A.R. 797. Finally, Sig Sauer produced evidence supporting its claim that the baffle core functioned as a muzzle brake, and it identified several other devices that are manufactured and sold as muzzle brakes which, it argued, were similar to the baffle core. See A.R. 798.
The ATF responded with a one-page letter again stating without explanation that the baffle core was a "silencer" because it was "a part intended only for use in the assembly or fabrication of a silencer." A.R. 809.
Sig Sauer filed its complaint in this court on April 7, 2014. On June 9, 2014, the parties filed a joint motion to stay the litigation to permit the ATF to reassess its determination that the baffle core qualified as a silencer under the NFA. Doc. No.9. Shortly thereafter, Sig Sauer submitted a second version of the prototype that was substantially similar to the original prototype except that the hand guard on the barrel of the rifle was in a different position.
Sig Sauer received a letter from the ATF on August 13, 2014 reaffirming its initial determination. A.R. 810-29. In explaining its position, the ATF dismissed Sig Sauer's sound testing evidence by explaining that a silencer part can qualify as a silencer regardless of whether, by itself, it reduces the sound of a firearm discharge. A.R. 813. The ATF addressed Sig Sauer's contention that it intended the baffle core to serve as a muzzle brake rather than a silencer by noting that although a manufacturer's statement of intention is relevant in determining whether a part is intended only for use in a silencer, it is not dispositive. A.R. 813-14. It then went on to consider other evidence that led it to conclude that the baffle core was intended only for use in a silencer. In particular, it noted that the design features of the baffle core were indicative of its use as a silencer component rather than as a muzzle brake. For example, it concluded that the baffle core more closely resembled a silencer part in size and dimension than a muzzle brake. A.R. 818-21. Finally, the ATF responded to Sig Sauer's contention that the baffle core must be treated as a muzzle brake because it actually functioned as a muzzle brake by noting that the mere fact that a part could incidentally serve a particular function does not establish that it is intended to serve that function. A.R. 824-25.
Sig Sauer responded to the ATF on September 18, 2014. See A.R. 858. With that response, it submitted a declaration from one of its design engineers explaining that Sig Sauer chose a device that was longer than other muzzle brakes because the longer muzzle brake was needed to bring the combined length of the rifle barrel and the muzzle brake to 16 inches, which prevented the rifle from being subject to registration under the NFA as a short-barreled rifle. A.R. 859. The design engineer also discussed testing that showed that the baffle core is an effective muzzle brake. A.R. 866.
On October 2, 2014, the ATF reaffirmed its decision in a one-page letter. A.R. 885. It stated that it "considered numerous factors in classifying [Sig Sauer's] submission, including [Sig Sauer's] purported intended use of the item." Id. Nonetheless, it concluded that the part was a silencer component and Sig Sauer's "alleged alternate use... does not remove it from regulation under Federal law." Id.
Sig Sauer filed an amended complaint on October 6, 2014. Doc. No. 11. The parties subsequently filed cross motions for summary judgment. See Doc. Nos. 18, 19.
Summary judgment is warranted when the record reveals "no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). This standard was developed to provide parties with a way to avoid the delay, expense, and uncertainty of a trial when material facts are not in dispute. Because a court may not engage in fact finding when it decides a summary judgment motion, ambiguous evidence, even if it is undisputed, ordinarily must be construed in favor of the nonmoving party. See Estrada v. Rhode Island, 594 F.3d 56, 62 (1st Cir.2010).
In administrative law cases, however, "[t]his rubric has a special twist." Associated Fisheries of Me., Inc. v. Daley, 127 F.3d 104, 109 (1st Cir.1997). If the decision will be based on the administrative record, the issue before the court will ordinarily be the legal question as to whether the agency's action was "arbitrary, capricious, or otherwise contrary to
Sig Sauer claims that the ATF made an egregious error when it concluded that the baffle core is subject to the NFA as a silencer. Although Sig Sauer's arguments are somewhat difficult to disentangle, it appears to claim both that the ATF used an incorrect legal standard in making its decision and that it acted arbitrarily even if it used the correct standard. Because the standards of review that govern these two arguments differ, I deal with them separately.
Sig Sauer first argues that the ATF incorrectly used a purely objective test to determine whether the baffle core was intended only for use in a silencer, rather than the subjective test mandated by the First Circuit's decision in United States v. Crooker, 608 F.3d 94, 97 (1st Cir.2010).
In Crooker, the First Circuit considered whether a silencer designed for an air gun was a firearm silencer under the GCA because it was a "device for silencing" a firearm. Id. at 96-97. As I have explained, the applicable definition includes "any device for silencing" a firearm, any combination of parts "intended for use" in assembling a silencer, and any part "intended only for use" in a silencer. 18 U.S.C. § 921(a)(24). Although "a device for silencing" does not use the word "intended" — as the other two parts of the definition do — the First Circuit nonetheless held that the government was required to show that the defendant, who had directed the creation of the home-made device, "had a purpose to have the device function as a firearm silencer." Id. at 99. In reaching this determination, the court commented on the tripartite structure of the silencer definition and suggested that "it is as easy (perhaps easier) to view all three tests as gradations of purpose made more rigorous as the statute extends from a self-sufficient device to a collection of parts to a single part." Id. at
Sig Sauer argues that the ATF's classification decision is incompatible with Crooker because the agency allegedly used a purely objective test to determine whether the baffle core was intended only for use in a silencer. Because I conclude that the ATF applied the proper subjective intent test, I disagree. In reaching its decision, the ATF stated that "[w]hen classifying a part as a firearm silencer, the statute imposes an intent requirement. Therefore, the manufacturer's stated intent for the part is clearly relevant." A.R. 814. Although it also noted that "the objective design features of the part must support the stated intent," id., ATF did so merely to explain why it was not obligated to defer to a manufacturer's statement of intention when that statement is contradicted by objective evidence. If, as Sig Sauer argues, the ATF had used a purely objective test to classify the baffle core, it would have had no reason to consider Sig Sauer's subjective intentions because the agency's classification decision would necessarily turn on purely objective factors. In contrast, the fact that the ATF looked to objective evidence when evaluating Sig Sauer's statement of intention does not mean that it was using an objective test because objective evidence is always relevant in determining whether to accept a statement of subjective intention.
Sig Sauer also argues that the ATF's classification ruling, that Sig Sauer intended the baffle core only as a silencer part, was arbitrary and capricious even if it was based on a permissible construction of the NFA.
Agency actions are entitled to substantial deference under the arbitrary and capricious standard.
In the present case, the ATF acted rationally in concluding that Sig Sauer intended the baffle core to be used only as a silencer part because the agency pointed to substantial evidence in the record to support its determination. First, it is undisputed that the baffle core is an essential silencer component. Tr. at 55-56 (Doc. No. 31). It is, in fact, identical in design and dimension to the baffle core contained inside a removable Sig Sauer silencer. A.R. 824; see also Tr. at 55-56 (Sig Sauer's counsel conceding that Sig Sauer has "basically taken the cap off [its] silencer... welded it into the gun, and [marketed the baffle core] as a muzzle brake"). Second, Sig Sauer proposed to attach the baffle core to a pistol caliber rifle, which the ATF determined did not need a muzzle brake to function effectively. A.R. 818. Third, the ATF examined other muzzle brakes on the market and concluded that the baffle core was unlike other conventional muzzle brakes because it included expansion chambers and was considerably larger than the muzzle brakes that are already available for sale. A.R. 818-21. Finally, it noted that muzzle brakes are designed to be no larger than two to three inches, which is considerably shorter than the baffle core, because a muzzle blast discharges after two to three inches, making longer muzzle brakes impractical.
Sig Sauer also argues that the ATF arbitrarily failed to credit its test data, which shows that the baffle core will actually function as a muzzle brake. This argument misses the mark because the ATF is not obligated to conclude that a silencer part is intended to serve every function to which it could conceivably be put. As the ATF noted, the baffle core is a heavy part that probably could function as a doorstop, but that does not mean that it is intended to serve that purpose. A.R. 814.
Finally, Sig Sauer faults the ATF for inferring that Sig Sauer did not intend the baffle core to serve as a muzzle brake in part because its first prototype had a handguard placed in such a way that would make the muzzle core unusable as a muzzle brake because it would have "redirect[ed]
In summary, the ATF was presented with conflicting evidence as to whether Sig Sauer intended the baffle core to be used only as a silencer. It considered the relevant evidence using the correct legal standard and came to a rational conclusion based upon its expertise. No more is required to sustain its decision.
The ATF's classification of Sig Sauer's device as a firearm silencer was not "arbitrary, capricious, ... or otherwise not in accordance with law." 5 U.S.C. § 706(2)(A). Accordingly, I grant ATF's motion for summary judgment (doc. no. 18), and I deny Sig Sauer's motion for summary judgment (doc. no. 19). The clerk shall enter judgment accordingly and close the case.
SO ORDERED.