Oct. 26, 2010 − The U.S. Court of Appeals for the Seventh Circuit has denied a petition for rehearing filed on Sept. 22 by three State Bar of Wisconsin members who objected to the use of mandatory State Bar dues to fund an attorney public image campaign in 2007.

The objectors – attorneys Jon Kingstad, Steven Levine, and James Thiel – challenged the State Bar’s use of mandatory dues to fund the image campaign as a violation of their rights under the First Amendment. The three-judge panel ruled against the objectors in September. They quickly petitioned for a rehearing, but all three judges agreed to deny the petition.

Background

A state arbitrator first heard the objectors’ case in December of 2008, and the arbitrator ruled in favor of the State Bar. On March 11, 2009, the objectors filed an action for review of the arbitration decision in Dane County Circuit Court pending a January 2009 petition seeking original review by the Wisconsin Supreme Court, which was later rejected.

The State Bar removed the state case to the U.S. District Court for the Western District of Wisconsin. In November 2009, that court also ruled in favor of the State Bar. The parties consented to having their case heard by Magistrate Judge Stephen Crocker, who upheld the arbitrator’s determination. The petitioners then appealed to the Seventh Circuit.

In 1990, the U.S. Supreme Court held in Keller v. State Bar of California, 496 U.S. 1 (1990), that a mandatory state bar may not use compulsory dues of any member who objects to political or ideological activities which are not reasonably germane to the purpose of regulating the legal profession or improving the quality of legal services.

The Wisconsin Supreme Court revised Wisconsin Supreme Court Rule (SCR) 10.03 in 1993 to adhere to the Keller ruling. Thus, State Bar members receive a dues reduction option on their yearly dues and assessments statement. For instance, the fiscal year 2011 Keller reduction was set at $10.25 by the Board of Governors at its February 2010 meeting.

A Keller determination arbitration process was also established by SCR 10.03, which provides, in part, that “[a] member of the state bar who contends that the state bar incorrectly set the amount of dues that can be withheld may deliver to the state bar a written demand for arbitration.”

In this case, the objectors argued that expenditures of mandatory dues on a public image campaign for lawyers should have been included by the State Bar in the Keller dues reduction.

Pending rule petition

The objectors and other attorneys have also filed a rule petition (09-08) with the Wisconsin Supreme Court to amend SCR 10.03 to limit the use of State Bar funds. That petition has been held in abeyance pending the Seventh Circuit’s ruling. 

Related articles:

Seventh Circuit Court of Appeals rejects challenge to State Bar’s public image campaign – Sept. 9, 2010

Seventh Circuit Court of Appeals hears oral argument in case challenging State Bar’s public image campaign – April 16, 2010  

Keller petition denied by Supreme Court – June 19, 2009

Arbitrator determines that Public Image Campaign funding was properly treated by the Bar for dues purposes – Dec. 16, 2008