Former state Rep. Van Braxton does not have to set up a legal expense fund in an effort to raise money to defray costs associated with a lawsuit filed by his 2010 opponent, the state elections director has ruled.
Braxton, a Democrat from Lenoir County, lost a bitter election to former Rep. Stephen LaRoque, a Republican from Lenoir County, two years ago. During the campaign, Braxton and the N.C. Democratic Party sent out mailers in which a former customer of LaRoque’s economic development company claimed that LaRoque, through foreclosure, had stolen his business and home.
LaRoque filed a defamation lawsuit against Braxton, his campaign and the party. LaRoque eventually dropped the suit, but not before piling up $17,250 in contempt of court fines for refusing to provide certain documents related to the lawsuit.
LaRoque lost his bid for re-election this year in the May primary. He resigned his House seat earlier this summer after being indicted on federal fraud charges stemming from his economic development business, which administered federal loans to rural businesses.
Braxton, in a letter to Gary Bartlett, executive director of the State Board of Elections, said that he personally was in debt for legal fees resulting from his lawsuit with LaRoque and said he was sending out a letter asking donors to help defray some of his legal costs. He asked Bartlett for an opinion as to whether he would be required to set up a legal defense fund to report any contributions he might receive.
“Since I am not a legislator and have not been for two years and am not seeking re-election, I wanted to make sure that I did not have to set up a legal defense fund for reporting any donations I might receive,” Braxton wrote.
Bartlett responded that he would not.
“Individuals serving in or seeking elective office are required to organize a legal expense fund committee if they are going to be raising donations to fund an existing legal action or a potential legal action,” Bartlett wrote in an Aug. 8 letter to Braxton. “Since you are not by definition an ‘elected officer,’ you are not required to establish a legal expense fund committee and therefore those donations raised are not subject to disclosure or limitation.”
Bartlett went on to say that if in the future Braxton did seek elective office again and continued to raise donations for a legal expense fund, he would be required to organize such a committee.
Efforts to reach Braxton forcomment were unsuccessful.
Barry Smith is an associate editor of Carolina Journal.