January 2, 2026 – On Monday, the Court of Appeals of Indiana, in Smith & Wesson v. City of Gary, Indiana (No. 24A-CT-2381), issued a unanimous decision dismissing the City of Gary’s complaint against numerous firearms industry members. The City of Gary commenced this action against many members of the firearms industry in August 1999, raising causes of action for public nuisance, negligent distribution and marketing, and negligent design, all based on the criminal acts of third parties. The complaint sought monetary and punitive damages to compensate the City for the costs it had incurred due to the defendants’ alleged negligent design, manufacture, marketing, promotion, advertising and sale of handguns. The City also sought injunctive relief asking the court to require defendants to implement standards and training regarding the distribution of handguns and to cease selling handguns without certain safety devices and warnings. The case has been subject to three prior appeals during the decades it has been pending; as well as motions to dismiss based on the Protection of Lawful Commerce in Arms Act (PLCAA), a similar Indiana firearms industry-based immunity statute, and most recently an Indiana law providing that the Indiana Attorney General is the only one who can bring or maintain lawsuits against the firearms industry on behalf of municipalities.
In its decision, the Court of Appeals held that HB 1235 – legislation enacted to prohibit local municipalities from bringing or prosecuting this type of case – is constitutional and does not violate separation of powers protections. The decision also held that the City does not have any vested rights in this lawsuit that would prevent the legislature from changing the applicable law because it does not have a final, unappealable judgment. The City’s argument that changing the law is unfair because of the length of time for which this case has been pending was of no consequence. The court’s decision also specifically stated that the City had made misleading claims in its brief regarding the “merits” of its claims, explaining that the prior appeals did not address the substantive merits beyond the pleadings. The decision remanded the case to the trial court for entry of judgment finally dismissing the case.
The City of Gary litigation was the last remaining municipal case brought against the industry prior to the enactment of the PLCAA by Congress in 2005. While it took an inordinate amount of time to have the case dismissed, ultimately, the use of federal and state statutes designed to prohibit claims against the industry based on the criminal misuse of their products finally prevailed.
Renzulli Law Firm, LLP will continue to monitor new and developing firearm related laws and litigation around the country. If you have any questions concerning firearms-related legislation or regulation, please contact Christopher Renzulli.