If that’s the explanation, then [...] ended the lawsuit right there.
It looks as if the city very quickly (1) stated explicitly that the Knapps were not in danger of being forced to perform same-sex marriages or punished for not doing so, and (2) attempted to settle. However, on further investigation it seems that the case is still going on. I have no inside knowledge as to what the obstacles to settlement are. Unless the city’s attorney is lying outright, they have explicitly said to the Knapps “We’re not going to pursue you, you’re good to go and you’re a religious corporation exempt under our ordinance”. (I assume that’s a paraphrase, but it’s a paraphrase by someone officially representing the city.)
So I think the city did do exactly what you say; but it’s not their lawsuit, they can’t dismiss it unilaterally, and for whatever reason the Knapps and/or the ADF aren’t satisfied and want more.
(Here is my guess at what more they want. The lawsuit requests not only an injunction telling the city not to take action against the Knapps for not marrying same-sex couples, but a declaratory judgement that the city’s ordinance as applied to the Knapps violates the First and Fourteenth Amendments. Given that the city hasn’t actually taken any action against the Knapps, that seems to be the same thing as a demand for a declaratory judgement that the city’s ordinance itself is unconstitutional. I can see why they might be unwilling to accept that.)
the argument remains valid
The fact that an ideological advocacy group can file a frivolous lawsuit simply isn’t much evidence that there’s an actual danger of the kind of coercion they claim to be worried about.
It looks as if the city very quickly (1) stated explicitly that the Knapps were not in danger of being forced to perform same-sex marriages or punished for not doing so, and (2) attempted to settle. However, on further investigation it seems that the case is still going on. I have no inside knowledge as to what the obstacles to settlement are. Unless the city’s attorney is lying outright, they have explicitly said to the Knapps “We’re not going to pursue you, you’re good to go and you’re a religious corporation exempt under our ordinance”. (I assume that’s a paraphrase, but it’s a paraphrase by someone officially representing the city.)
So I think the city did do exactly what you say; but it’s not their lawsuit, they can’t dismiss it unilaterally, and for whatever reason the Knapps and/or the ADF aren’t satisfied and want more.
(Here is my guess at what more they want. The lawsuit requests not only an injunction telling the city not to take action against the Knapps for not marrying same-sex couples, but a declaratory judgement that the city’s ordinance as applied to the Knapps violates the First and Fourteenth Amendments. Given that the city hasn’t actually taken any action against the Knapps, that seems to be the same thing as a demand for a declaratory judgement that the city’s ordinance itself is unconstitutional. I can see why they might be unwilling to accept that.)
The fact that an ideological advocacy group can file a frivolous lawsuit simply isn’t much evidence that there’s an actual danger of the kind of coercion they claim to be worried about.