Space Age Products v. Gilliam

Does the ex parte issuance of a cease and desist order violate the civil rights of an MLM company.


The District court held that while there was no civil rights violation in issuing an ex parte cease and desist order, the First Amendment did require procedural safe guards which were not followed in this case. Space Age was served with a cease and desist order preventing it from marketing its products in violation of the Delaware state pyramid statute. The order did not allow for a prompt hearing on the merits of the state's claim, and when a hearing was eventually granted, it took longer than 90 days for a final decision to be rendered. A cease and desist order is a prior restraint on speech, and due process requires that the company be given a prompt opportunity to challenge the merits of the order. Because the state procedures failed to guarantee a prompt opportunity for the company to challenge the order, they were facially unlawful, precluding summary judgment against the company.

Full case and case summary also available at:

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Federal, 3rd Circuit, Delaware | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Written by:


Babener & Associates on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.