Wal-Mart Wins Legal Round Against Church Over Firearm Sales

A proposal from shareholders affiliated with Trinity Wall Street in New York could affect what products Walmart can stock in its stores.

Wal-Mart Stores Inc. of Bentonville won’t have to let shareholders vote on a proposal from a Manhattan Episcopal church concerned about firearm sales, a federal appeals court ruled Tuesday.

In its two-page order (PDF), the 3rd U.S. Circuit Court of Appeals in Philadelphia reversed a ruling imposed last year by U.S. District Judge Leonard Stark, who said Trinity Wall Street’s proposal would be “appropriate for a shareholder vote.”

The Philadelphia court said it would issue an opinion on the matter “at a later time.”

“The Third Circuit reached the right decision in reversing the district court’s ruling,” Randy Hargrove, a Wal-Mart spokesman, said. “We appreciate the court’s quick consideration of the issues.”

The church told Arkansas Business in February that, with the proposal, it wanted Wal-Mart’s board to articulate the company’s policy on selling products that are “especially dangerous to the public.”

One example that the church offered was firearms with high-capacity magazines.

“It’s taking a hard look at the question from the point of view of, ‘What is your rationale?'” Trinity Chancellor Evan Davis said. “Maybe you conclude that you don’t sell the product. Maybe you conclude that you do in certain circumstances.”

Wal-Mart had argued that Stark’s decision to include the proposal would have “far-reaching implications for the entire retail industry because it could force public companies to have a shareholder vote to make decisions on ordinary business matters like what products a retailer sells.”

The case attracted amicus briefs in support of both sides. Wal-Mart’s position has gained support from business groups, while Trinity’s backers include parents of children killed in the Sandy Hook school massacre in Newtown, Connecticut.