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Philip Kaplan, Dennis Coleman, Hyman Cohen, Marjorie Matthews, Francie Goldman, Ralph Giordano, "Jane Doe", on Behalf of Themselves and All Others Similarly Situated, Elsie Mott, and the New York City School Boards Association v. The Board of Education of the City School District of the City of New York James F. Regan, Individually and as President of the Board of Education of the City School District of the City of New York Miguel O. Martinez, Individually and as Vice President of the Board of Education of the City School District of the City of New York Amelia Ashe, Joseph G. Barkan, Stephen R. Franse, Irene Impellizzeri, and Margorie A. Lewis, Individually and as Members of the Board of Education of the City School District of the City of New York Nathan Quinones, Chancellor of the City School District of the City of New York John R. Nolan, Secretary, Board of Education of the City School District of the City of New York Michael P. Sofarelli, Inspector General of the Board of Education of the City School D

Citations: 759 F.2d 256; 1985 U.S. App. LEXIS 29081Docket: 637

Court: Court of Appeals for the Second Circuit; April 7, 1985; Federal Appellate Court

Narrative Opinion Summary

In this case, appellants, including community school board members and the New York City School Boards Association, challenged the denial of a preliminary injunction against Regulation C-120, which mandates comprehensive financial disclosures. They argued it infringes on privacy rights and lacks justification for deterring corruption. The District Court rejected their motion, finding no probable success on the merits or irreparable harm. Regulation C-120 was enacted following amendments to New York Education Law, empowering the Board of Education to institute disclosure requirements to enhance government transparency and integrity. The appellants had previously complied with less detailed disclosures since 1976, but the 1984 regulation intensified requirements after a corruption investigation. Despite concerns about privacy and professional impacts, the court found the Board's privacy measures sufficient and the public interest in preventing corruption compelling. The court also referenced the precedent set in Barry v. City of New York, affirming that financial disclosures serve a critical role in deterring corruption. It concluded that the legislative mandate for transparency in public service, especially for those wielding significant authority, justified the regulation. Consequently, the court upheld the lower court's decision, denying the preliminary injunction and emphasizing the law's role in maintaining public trust.

Legal Issues Addressed

Judicial Review of Legislative Mandates

Application: The court reaffirmed the legislature's authority to impose disclosure requirements, emphasizing that such requirements are justified by the roles and powers of community board members.

Reasoning: The court maintains that it is the legislature’s role to determine disclosure requirements, regardless of the impact on public service participation.

Preliminary Injunction Standards

Application: The court evaluated whether the appellants demonstrated irreparable harm and either probable success on the merits or serious questions regarding the merits with a favorable balance of hardships.

Reasoning: To obtain a preliminary injunction, the moving party must demonstrate irreparable harm and either probable success on the merits or serious questions regarding the merits with a favorable balance of hardships.

Procedures for Protecting Privacy

Application: The Board implemented procedures to protect sensitive information, allowing board members to challenge disclosures and seek confidentiality, which the court found adequate.

Reasoning: Privacy procedures established by the Board of Education dictate that only the Secretary and the Inspector General have access to disclosure forms.

Regulation of Financial Disclosures

Application: Regulation C-120, requiring financial disclosures from community school board members, was upheld as a necessary measure to deter corruption and maintain public trust.

Reasoning: Regulation C-120 requires detailed financial disclosures, including income over $1,000, gifts over $500, capital gains over $1,000, significant investments, and any substantial indebtedness.

Right to Privacy vs. Public Interest

Application: The court balanced the privacy interests of board members against the state's compelling interest in preventing corruption, ultimately siding with the public interest.

Reasoning: Employees possess a protectable interest in keeping personal matters private...this interest is outweighed by the significant public interest in deterring corruption and conflicts of interest.