The case is Tanzin v. Tanvir, issued on December 10. Plaintiffs claim the federal government violated the Religious Freedom Restoration Act by placing them on the no-fly list solely because they are practicing Muslims who would not act as informants against against their religious communities. The Second Circuit interpreted RFRA to allow plaintiffs to sue individual defendants, and the Supreme Court agrees.
RFRA was enacted by Congress in the 1990s after the Supreme Court, in Employment Division v. Smith (1990), made it more difficult for plaintiffs to sue the government under the Free Exercise Clause. The Smith court said that neutral governmental policies or rules that incidentally disadvantage people on the basis of their religious practices do not violate the Establishment Clause. This controversial ruling deviated from prior Supreme Court cases, so Congress (back in the days when Congress still worked together) made passing RFRA a priority. The questions is how do we interpret RFRA and does it allows plaintiffs to sue individuals or only the government.
Statutory analysis is not the most exciting topic in the legal world, but it's actually pretty important, because if the court views the statute in a particular way, that is how the statute will be applied in the future unless Congress deals with the misinterpretation. Here, the Court finds that since the statute says plaintiffs can sue "the government," defined as "a branch, department, agency, instrumentality, and official (or other person acting under color of law) of the United States." That language seems clear, that you can sue an individual in his personal capacity. The federal government had its own interpretation, though, which the Court rejected: that you can only sue governmental officials in their official capacities. The feds said this interpretation makes sense because the statute references "official[s]" as among the appropriate defendants. Writing for the Court, Justice Thomas says this argument may be "plausible," but it does not work here in part because the statute also says you can sue an official "or other person." This language "clarifies that 'a government' includes both individuals who are officials acting under color or law and other, additional individuals who are nonofficial acting under color of law." In Section 1983 litigation, suing people acting under color of law means suing them in their individual capacities. Congress presumably had that principle in mind when it enacted RFRA.
The final question in this case is what can plaintiffs under RFRA sue for? The statute says you can recover "appropriate relief." What does that even mean? The Court says that phrase encompasses damages claims. The Court notes that such relief has always been available under Section 1983, and it seems that Congress wanted plaintiffs under RFRA to recover the relief that had been available to them under the Smith ruling that RFRA was intended to correct.
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