Federal judge hears arguments in Hobby Lobby contraception case

Green, his family and his retail companies have asked the court to block a federal mandate that requires the company to provide its employees with insurance coverage for certain contraception drugs and devices. They filed suit in September in federal court in Oklahoma City.

The mandate takes effect Jan. 1 for self-insured Hobby Lobby, which could be subject to fines of up to $1.3 million per day for failing to comply with the mandate. The requirement is part of the Affordable Care Act, also called Obamacare.

Heaton said the case “obviously does raise some new issues.” He promised to “move promptly” on the matter.

In legal filings, the company claims the morning-after pill, week-after pill and some intrauterine devices are “abortion-causing drugs and devices.”

Green earlier said the mandate puts his family in the position of “being forced to choose between following the laws of the country that we love or maintaining the religious beliefs that have made our business successful and have supported our family and thousands of our employees and their families.”

Heaton said he was not aware of any case law granting corporations the right to free exercise of religion.

“Isn't a religious exercise almost uniquely personal?” Heaton asked.

Kyle Duncan, general counsel for the Beckett Fund for Religious Liberty that represents Hobby Lobby, said a 1964 decision granted The New York Times Co. the right to exercise the First Amendment right of free speech. The Greens' companies, Hobby Lobby and Mardel, exercise religion regularly and openly, Duncan said.

The companies close on Sunday, buy full-page Christian-themed newspaper ads on Christmas and Easter and refuse to use their trucks to haul beer, all of which reduce profits, Duncan said. The firms' stated primary purpose is “honoring the Lord in all we do by operating the company in a manner consistent with Biblical principles.”

Justice Department Attorney Michelle Bennett said the government doesn't question the sincerity of those religious beliefs, but said that a for-profit corporation is a secular entity. The challenged drugs and devices were included in the health care act because medical experts deemed them necessary for women's health and well-being, Bennett said.