1 00:00:02,759 --> 00:00:07,240 Speaker 1: This is Bloomberg Law with June Grossel from Bloomberg Radio. 2 00:00:12,920 --> 00:00:21,920 Speaker 2: Days. 3 00:00:27,480 --> 00:00:32,360 Speaker 1: Whether you're buying tickets for the upcoming concerts of VTS, Bruno, 4 00:00:32,520 --> 00:00:37,440 Speaker 1: Mars or Shakira, you probably purchased them on Ticketmaster and 5 00:00:37,560 --> 00:00:41,800 Speaker 1: may have experienced sticker shock, especially when looking at the 6 00:00:42,000 --> 00:00:46,880 Speaker 1: added service fees. Music lovers who've been complaining for years 7 00:00:46,920 --> 00:00:51,640 Speaker 1: about Ticketmaster's fees are surely reveling in a jury verdict 8 00:00:51,720 --> 00:00:56,120 Speaker 1: that found that its parent company, Live Nation illegally monopolized 9 00:00:56,160 --> 00:01:00,200 Speaker 1: the live events industry and overcharged fans for tickets to 10 00:01:00,320 --> 00:01:04,040 Speaker 1: music performances. The verdict is a major win for a 11 00:01:04,080 --> 00:01:08,280 Speaker 1: coalition of thirty four states in DC that pursued the 12 00:01:08,319 --> 00:01:12,280 Speaker 1: case after the Justice Department walked away from it. Here's 13 00:01:12,319 --> 00:01:14,160 Speaker 1: their attorney, Jeffrey Kessler. 14 00:01:14,640 --> 00:01:17,800 Speaker 3: It's a great day for consumers and fans, and it's. 15 00:01:17,600 --> 00:01:21,280 Speaker 1: A great day for the thirty four States District of Columbia, 16 00:01:21,560 --> 00:01:24,280 Speaker 1: wife and honored to work for on this matter. But 17 00:01:24,319 --> 00:01:27,920 Speaker 1: it will take quite a while, perhaps through years of appeals, 18 00:01:28,240 --> 00:01:31,560 Speaker 1: for those fans to see if the verdict really leads 19 00:01:31,600 --> 00:01:35,480 Speaker 1: to changes that make concerts more affordable. Even though the 20 00:01:35,560 --> 00:01:39,399 Speaker 1: stage is set for a possible breakup of Live Nation 21 00:01:39,640 --> 00:01:44,240 Speaker 1: and Ticketmaster. Live Nation continues to insist it's not a 22 00:01:44,319 --> 00:01:48,480 Speaker 1: monopoly and says the jury verdict is not the last word. 23 00:01:49,000 --> 00:01:52,520 Speaker 1: My guest is an expert in anti trust law, Harry First, 24 00:01:52,640 --> 00:01:55,800 Speaker 1: a professor at NYU Law School. Harry, would you call 25 00:01:55,880 --> 00:01:58,840 Speaker 1: this a landmark verdict? How would you characterize it? 26 00:01:59,240 --> 00:02:02,320 Speaker 3: Yes, I think it is. It's landmarky in a number 27 00:02:02,320 --> 00:02:08,600 Speaker 3: of ways. So monopolization cases historically are pretty infrequent. I 28 00:02:08,639 --> 00:02:11,560 Speaker 3: say historically because you know recently there have been a 29 00:02:11,600 --> 00:02:15,600 Speaker 3: couple of high profile monopoly cases. But you know, these 30 00:02:15,680 --> 00:02:18,880 Speaker 3: kinds of cases, not a tech case in a direct sense, 31 00:02:19,160 --> 00:02:24,160 Speaker 3: pretty unusual. So that's first landmark part. Second, a jury 32 00:02:24,200 --> 00:02:29,000 Speaker 3: trial in a government case really unusual. The federal government 33 00:02:29,040 --> 00:02:32,960 Speaker 3: hasn't paid attention to juries in any trust cases particularly, 34 00:02:33,440 --> 00:02:37,160 Speaker 3: and I think during the Biden administration some good lawyers 35 00:02:37,200 --> 00:02:39,960 Speaker 3: there said, you know, juries can be on our side. 36 00:02:40,160 --> 00:02:44,240 Speaker 3: They understand when consumers are abused, So you have to 37 00:02:44,280 --> 00:02:48,600 Speaker 3: be asking for money. Normally the Justice Department asks for 38 00:02:48,680 --> 00:02:51,360 Speaker 3: an injunction, don't do this, or do this, so you 39 00:02:51,400 --> 00:02:53,440 Speaker 3: have to ask for money to get a jury, and 40 00:02:53,520 --> 00:02:55,799 Speaker 3: that's what they did. So they joined with the states 41 00:02:55,840 --> 00:02:58,600 Speaker 3: who can ask for money on behalf of their citizens. 42 00:02:59,040 --> 00:03:02,160 Speaker 3: So that's the second thing. It's a jury trial for money. 43 00:03:02,760 --> 00:03:07,440 Speaker 3: Third thing is the government often settles cases saying, you know, 44 00:03:07,880 --> 00:03:10,560 Speaker 3: it's really risky to go to trial. We can get 45 00:03:10,560 --> 00:03:14,880 Speaker 3: a darn good, even better settlement. Makes no sense, of course, 46 00:03:14,880 --> 00:03:17,600 Speaker 3: if you settle, you get less, but they often say this, 47 00:03:17,840 --> 00:03:21,080 Speaker 3: and this has been true historically. So what happened here 48 00:03:21,200 --> 00:03:24,000 Speaker 3: They got a worse settlement, They didn't go to trial, 49 00:03:24,400 --> 00:03:27,560 Speaker 3: and there were the States sitting there, you know, messy 50 00:03:28,320 --> 00:03:32,320 Speaker 3: plaintiffs saying no, you can settle for you, but you 51 00:03:32,360 --> 00:03:35,760 Speaker 3: can't settle our claims, and so they didn't. So third 52 00:03:35,840 --> 00:03:39,800 Speaker 3: landmark aspect. And usually when the States litigate and the 53 00:03:39,920 --> 00:03:44,200 Speaker 3: Justice Department doesn't necessarily go so well for the States. 54 00:03:44,680 --> 00:03:46,840 Speaker 3: So fourth landmark aspect. 55 00:03:47,440 --> 00:03:50,200 Speaker 1: So let me backtrack a little and explain what happened. 56 00:03:50,440 --> 00:03:53,680 Speaker 1: Days into the trial. The Justice Department dropped out and 57 00:03:53,720 --> 00:03:57,000 Speaker 1: reached this eleventh hour deal which was reached in DC 58 00:03:57,440 --> 00:03:59,760 Speaker 1: and was so secretive it even caught the government's own 59 00:03:59,760 --> 00:04:02,960 Speaker 1: trial team by surprise, and the judge called the way 60 00:04:03,000 --> 00:04:05,920 Speaker 1: he was informed about it mind boggling. But then more 61 00:04:05,960 --> 00:04:08,720 Speaker 1: than thirty States said no, as you explain, we're not 62 00:04:08,760 --> 00:04:11,440 Speaker 1: going to take that settlement and pressed ahead with the trial. 63 00:04:11,920 --> 00:04:14,520 Speaker 1: Is this a black guy for the Justice Department? Should 64 00:04:14,560 --> 00:04:15,400 Speaker 1: they be embarrassed? 65 00:04:16,040 --> 00:04:20,839 Speaker 3: This Justice Department doesn't embarrass easily, so you know, in 66 00:04:20,920 --> 00:04:24,760 Speaker 3: normal times, yes, but this was clearly something I had 67 00:04:24,839 --> 00:04:27,880 Speaker 3: normal going on, which we still don't really know the 68 00:04:27,920 --> 00:04:33,280 Speaker 3: backstory on. Frankly, and yes, they should be embarrassed is 69 00:04:33,320 --> 00:04:35,000 Speaker 3: a nice word for saying it. 70 00:04:35,120 --> 00:04:37,280 Speaker 1: Yes, you have to give it to the States. They 71 00:04:37,279 --> 00:04:40,960 Speaker 1: had to scramble to take over the case because the 72 00:04:41,080 --> 00:04:44,320 Speaker 1: Justice Department had been leading it. They had like thirty 73 00:04:44,520 --> 00:04:47,039 Speaker 1: people on the trial team, and then the States come 74 00:04:47,080 --> 00:04:49,920 Speaker 1: in and have to pick up just a week later 75 00:04:50,120 --> 00:04:54,200 Speaker 1: where the Justice Department left off. It's amazing to me 76 00:04:54,320 --> 00:04:56,480 Speaker 1: that they were able to do it as well as 77 00:04:56,520 --> 00:04:57,479 Speaker 1: they apparently did. 78 00:04:58,040 --> 00:05:00,760 Speaker 3: So I agree with that. I know this they you know, 79 00:05:00,839 --> 00:05:04,120 Speaker 3: they weren't just sitting around, and I'm sure that they 80 00:05:04,160 --> 00:05:08,080 Speaker 3: were familiar with the economist testimony and who was going 81 00:05:08,120 --> 00:05:11,919 Speaker 3: to testify. But but yes, the leading war had been 82 00:05:12,320 --> 00:05:15,760 Speaker 3: taken by the Justice Department, and it was a challenge. 83 00:05:15,760 --> 00:05:17,920 Speaker 3: I mean, at first, they wanted to delay, they wanted 84 00:05:17,960 --> 00:05:21,360 Speaker 3: to put it off by a month to prepare. So yeah, 85 00:05:21,400 --> 00:05:25,520 Speaker 3: it's quite a challenge to step into the shoes, particularly 86 00:05:25,560 --> 00:05:28,480 Speaker 3: when you're worried that the jury is looking and saying 87 00:05:29,520 --> 00:05:30,680 Speaker 3: where are those other guys? 88 00:05:30,720 --> 00:05:30,919 Speaker 4: You know? 89 00:05:32,120 --> 00:05:35,320 Speaker 1: The jury four person said the verdict was influenced by 90 00:05:35,360 --> 00:05:39,839 Speaker 1: those Live Nation internal documents. And we've talked before about 91 00:05:39,880 --> 00:05:44,760 Speaker 1: those emails where Live Nations ticketing directors bragged about the 92 00:05:44,839 --> 00:05:50,280 Speaker 1: outrageous prices, called customers so stupid, and boasted that the 93 00:05:50,320 --> 00:05:54,800 Speaker 1: company was quote robbing them blind baby. And there was 94 00:05:54,880 --> 00:05:59,120 Speaker 1: also a recording of an expletive filled phone call where 95 00:05:59,160 --> 00:06:02,479 Speaker 1: Michael Rapina, the CEO of Live Nation, threatened the head 96 00:06:02,480 --> 00:06:06,480 Speaker 1: of Barkley Center that he would withhold concerts after Barkley 97 00:06:06,600 --> 00:06:11,320 Speaker 1: switched to a rival Ticketer, and followed through on those threats, 98 00:06:11,360 --> 00:06:14,719 Speaker 1: according to testimony, And that's the kind of evidence that's 99 00:06:15,040 --> 00:06:16,680 Speaker 1: made for jury trials. 100 00:06:17,000 --> 00:06:19,719 Speaker 3: It sure is. Yeah, here you sort of have to 101 00:06:19,760 --> 00:06:22,520 Speaker 3: pity counsel for Live Nation. They said, you know, please 102 00:06:22,560 --> 00:06:25,120 Speaker 3: don't look over there at the car wreck. Really are 103 00:06:25,360 --> 00:06:29,279 Speaker 3: we condemn bad driving? We really don't like it, and 104 00:06:29,360 --> 00:06:32,080 Speaker 3: we're gonna deal with those bad drivers. Look over here, 105 00:06:32,120 --> 00:06:36,680 Speaker 3: look at how much people like ticket Master they think 106 00:06:36,720 --> 00:06:39,520 Speaker 3: our prices are great. I mean, maybe they had the 107 00:06:39,600 --> 00:06:42,520 Speaker 3: real challenge and that's what makes the case a jury 108 00:06:42,600 --> 00:06:46,400 Speaker 3: triable case. You know, Jeffrey Kessler said, who talks like this? 109 00:06:46,960 --> 00:06:49,360 Speaker 3: I mean, really, it sounds like the mafia. 110 00:06:50,120 --> 00:06:53,720 Speaker 1: The jury found that Ticketmaster had overcharged customers a dollar 111 00:06:53,920 --> 00:06:57,440 Speaker 1: seventy two per ticket in twenty two states. That may 112 00:06:57,480 --> 00:07:00,640 Speaker 1: sound like not much, but it adds up. The judge 113 00:07:00,680 --> 00:07:04,600 Speaker 1: will calculate the damages, but that could amount to hundreds 114 00:07:04,600 --> 00:07:05,680 Speaker 1: of millions of dollars. 115 00:07:06,120 --> 00:07:08,159 Speaker 3: Well, I don't know the number of tickets sold, so 116 00:07:08,760 --> 00:07:10,560 Speaker 3: it could be a lot of money. Yes, I mean 117 00:07:10,640 --> 00:07:13,640 Speaker 3: how much each person will get is you know, it's 118 00:07:13,680 --> 00:07:16,200 Speaker 3: not going to be huge for each person, but they're 119 00:07:16,200 --> 00:07:18,440 Speaker 3: going to have to give back a fair amount of money. 120 00:07:18,840 --> 00:07:23,120 Speaker 1: So the original goal of this complain from the Justice 121 00:07:23,160 --> 00:07:26,280 Speaker 1: Department in twenty twenty four was to separate ticket Master 122 00:07:26,360 --> 00:07:29,960 Speaker 1: from Live Nation. In your opinion, is that the only 123 00:07:30,000 --> 00:07:31,800 Speaker 1: way to fix this market? 124 00:07:32,120 --> 00:07:35,480 Speaker 3: That that is the remedy and that is the only way. 125 00:07:35,920 --> 00:07:39,920 Speaker 3: I mean, this has been going on since twenty ten, 126 00:07:40,760 --> 00:07:45,080 Speaker 3: so we're now in twenty twenty six and they've gone 127 00:07:45,120 --> 00:07:49,120 Speaker 3: through two consent decrees where they say, oh, we promised 128 00:07:49,120 --> 00:07:52,000 Speaker 3: we'll never do this again, and then they do it again, 129 00:07:52,120 --> 00:07:55,400 Speaker 3: and you know why not. They make money out of it. 130 00:07:55,480 --> 00:07:59,480 Speaker 3: And in truth, the only thing surprising to me is 131 00:07:59,520 --> 00:08:02,760 Speaker 3: that we're Pino has to actually say what he said, 132 00:08:03,000 --> 00:08:06,000 Speaker 3: and the guy from Barclays was too stupid to understand 133 00:08:06,200 --> 00:08:08,760 Speaker 3: what he had to do, which was to use Live 134 00:08:08,880 --> 00:08:12,160 Speaker 3: Nation and Ticketmaster. He thought he could do this scott free, 135 00:08:12,440 --> 00:08:16,040 Speaker 3: when you know, there was testimony and Senate hearings that, well, 136 00:08:16,080 --> 00:08:18,280 Speaker 3: we don't pressure them, but of course we do what's 137 00:08:18,280 --> 00:08:20,840 Speaker 3: best for our business. What's best for our businesses. If 138 00:08:20,880 --> 00:08:24,160 Speaker 3: a venue uses Ticketmaster and if they don't, well we've 139 00:08:24,200 --> 00:08:27,160 Speaker 3: got the talent. Maybe we'll move them someplace else. Everybody 140 00:08:27,240 --> 00:08:31,440 Speaker 3: knows that you can't unring that bell. So there really 141 00:08:31,520 --> 00:08:35,520 Speaker 3: is no to my mind, effective way of ending this 142 00:08:35,600 --> 00:08:39,079 Speaker 3: and getting some competition in ticketing. I mean, in the end, 143 00:08:39,120 --> 00:08:42,319 Speaker 3: that's what you want. He won competition with Ticketmaster. 144 00:08:42,640 --> 00:08:45,439 Speaker 1: Breaking up a company is a big ask. Do you 145 00:08:45,480 --> 00:08:48,640 Speaker 1: think the judge will have enough nerve that's the only 146 00:08:48,640 --> 00:08:51,520 Speaker 1: word I can think of to order Live Nation to 147 00:08:51,559 --> 00:08:52,280 Speaker 1: be split up. 148 00:08:52,600 --> 00:08:56,240 Speaker 3: I don't know. It's funny. The Justice Department had said 149 00:08:56,320 --> 00:08:59,600 Speaker 3: before the trial this is the only effective remedy. And 150 00:08:59,600 --> 00:09:02,720 Speaker 3: then when they settled, oh, the judge will never order it. Great, 151 00:09:03,160 --> 00:09:05,400 Speaker 3: thank you very much. I don't know. I think it 152 00:09:05,520 --> 00:09:09,120 Speaker 3: depends in part on how forcefully the case is argued. 153 00:09:09,360 --> 00:09:12,320 Speaker 3: This is a very unusual case in the sense that 154 00:09:12,720 --> 00:09:17,720 Speaker 3: you have an experiment. They tried a lesser remedy than 155 00:09:17,840 --> 00:09:21,760 Speaker 3: keeping the two companies apart. We've tried this, We've seen 156 00:09:21,760 --> 00:09:24,679 Speaker 3: how it works. It doesn't. The world is not going 157 00:09:24,760 --> 00:09:28,200 Speaker 3: to look different. There's an old Supreme Court case that 158 00:09:28,280 --> 00:09:31,080 Speaker 3: had the same sort of fact pattern. Government wanted to 159 00:09:31,080 --> 00:09:34,880 Speaker 3: break up a company. The judge said, no, no, I 160 00:09:34,880 --> 00:09:39,280 Speaker 3: don't want to do that. We'll issue some specific requirements 161 00:09:39,320 --> 00:09:41,959 Speaker 3: they've got to go through. Ten years later, Justice Department 162 00:09:42,000 --> 00:09:45,079 Speaker 3: comes back and says, we still enough competition. Supreme Court 163 00:09:45,160 --> 00:09:49,520 Speaker 3: said ten years is enough break them up, And. 164 00:09:49,440 --> 00:09:53,520 Speaker 1: With Live Nation it's sixteen years. So we'll see. There 165 00:09:53,600 --> 00:09:57,640 Speaker 1: are other sanctions the judge could impose, right For example, 166 00:09:58,040 --> 00:10:00,000 Speaker 1: he could force them to sell off some venue. 167 00:10:00,600 --> 00:10:02,680 Speaker 3: I mean there is the venue side. I mean, over 168 00:10:02,720 --> 00:10:06,560 Speaker 3: the time, Live Nation, which was not a monopoly originally, 169 00:10:06,760 --> 00:10:11,760 Speaker 3: but because of the interconnection with Ticketmaster and controlling tickets 170 00:10:11,800 --> 00:10:15,440 Speaker 3: and then controlling a lot of talent and then buying 171 00:10:15,480 --> 00:10:18,320 Speaker 3: up venues. Yes, he could do that, but the heart 172 00:10:18,360 --> 00:10:22,600 Speaker 3: of this thing is controlling the tickets, the ticketing. You know, 173 00:10:23,080 --> 00:10:26,320 Speaker 3: the venues have to have a ticketing service. The system 174 00:10:26,360 --> 00:10:29,120 Speaker 3: doesn't work if you can't sell a ticket to a 175 00:10:29,200 --> 00:10:30,480 Speaker 3: concert live. 176 00:10:30,600 --> 00:10:33,440 Speaker 1: Nation of course denies it an illegal monopoly and says 177 00:10:33,480 --> 00:10:36,880 Speaker 1: the jury verdict is not the last word. It also 178 00:10:36,960 --> 00:10:40,199 Speaker 1: predicted that once the remedies phase of the case plays 179 00:10:40,200 --> 00:10:43,360 Speaker 1: out and appeals are resolved, the outcome likely won't be 180 00:10:43,480 --> 00:10:47,200 Speaker 1: much different from the deal it reached with the federal government. 181 00:10:48,000 --> 00:10:50,439 Speaker 3: Well, so there is a good question of how this 182 00:10:50,480 --> 00:10:53,920 Speaker 3: is going to work. Now you have an effect dueling remedies. 183 00:10:54,240 --> 00:10:58,840 Speaker 3: This is another unusual part where the federal government says 184 00:10:59,520 --> 00:11:02,679 Speaker 3: xx is and the states may or may not. I mean, 185 00:11:02,720 --> 00:11:05,400 Speaker 3: the States might join that, I doubt it, but the 186 00:11:05,440 --> 00:11:08,640 Speaker 3: States could ask for more, and then the judge is 187 00:11:08,640 --> 00:11:11,720 Speaker 3: going to have to try to see if he can 188 00:11:11,800 --> 00:11:15,720 Speaker 3: mesh those two remedies, or maybe he'll, you know, grant 189 00:11:15,760 --> 00:11:18,800 Speaker 3: the remedies in a Justice Department case and then grant 190 00:11:18,800 --> 00:11:21,240 Speaker 3: what the States asked for. I don't know. This will 191 00:11:21,280 --> 00:11:25,120 Speaker 3: be interesting to watch. It's not unprecedented, but it's pretty rare, 192 00:11:25,679 --> 00:11:27,679 Speaker 3: so that'll be interesting to see. 193 00:11:28,320 --> 00:11:31,000 Speaker 1: The judge has to approve the settlement that the federal 194 00:11:31,040 --> 00:11:34,520 Speaker 1: government and some states made with Live Nation. Group of 195 00:11:34,559 --> 00:11:39,280 Speaker 1: Democratic Senaters wrote to the judge after the verdict Wednesday, 196 00:11:39,920 --> 00:11:44,600 Speaker 1: urging him to closely scrutinize the proposed settlement before he 197 00:11:44,640 --> 00:11:49,559 Speaker 1: considers granting approval, saying the deal was negotiated under suspicious circumstances, 198 00:11:49,600 --> 00:11:53,079 Speaker 1: which we've discussed, and doesn't go far enough in restoring 199 00:11:53,120 --> 00:11:58,760 Speaker 1: competition or protecting customers, artists and independent venues. How unusual 200 00:11:59,000 --> 00:12:02,280 Speaker 1: is it for a judge to reject a settlement that 201 00:12:02,360 --> 00:12:04,400 Speaker 1: the Justice Department has reached. 202 00:12:05,120 --> 00:12:09,800 Speaker 3: It's pretty unusual. A judge has to approve any trust settlements. 203 00:12:09,880 --> 00:12:13,440 Speaker 3: There's a specific statute has to be approved as in 204 00:12:13,480 --> 00:12:17,040 Speaker 3: the public interest. Courts of appeals have sort of kept 205 00:12:17,520 --> 00:12:21,640 Speaker 3: the discretion of trial judges pretty narrow in this area. 206 00:12:22,240 --> 00:12:25,440 Speaker 3: They can create, you know, a lot of smoke. It's 207 00:12:25,480 --> 00:12:28,200 Speaker 3: hard for them to make really big changes in it. 208 00:12:28,440 --> 00:12:31,280 Speaker 3: This is not the only case now being litigated like this. 209 00:12:31,400 --> 00:12:37,480 Speaker 3: There's another merger case that was settled under well, suspicious 210 00:12:37,520 --> 00:12:40,520 Speaker 3: would be even too polite a word, I mean the 211 00:12:40,600 --> 00:12:44,400 Speaker 3: people involved have said there, you know, was just outright 212 00:12:44,640 --> 00:12:48,720 Speaker 3: lobbying and no relation to the public interests. So this 213 00:12:48,760 --> 00:12:52,160 Speaker 3: is a theme and it's unusual. You know, we've had 214 00:12:52,240 --> 00:12:57,040 Speaker 3: concerns about settlements historically, but this is just a little different. 215 00:12:57,080 --> 00:13:01,360 Speaker 3: It's not political value, it's just lobb issues. I think 216 00:13:01,400 --> 00:13:04,760 Speaker 3: that's what this letter meant. It meant something smells in this, 217 00:13:05,559 --> 00:13:07,319 Speaker 3: and judge you find. 218 00:13:07,080 --> 00:13:10,800 Speaker 1: Out, Harry. I think most concert goers look at this 219 00:13:10,960 --> 00:13:13,560 Speaker 1: verdict and ask, does this mean I'm going to be 220 00:13:13,600 --> 00:13:17,680 Speaker 1: paying less for concert tickets? Is that happening anytime soon? 221 00:13:18,200 --> 00:13:19,240 Speaker 1: Or is it ever happening. 222 00:13:19,760 --> 00:13:22,240 Speaker 3: Here's my guess. Taylor Swift is going to look at 223 00:13:22,240 --> 00:13:25,920 Speaker 3: this and say, great, I'll drop my ticket price in half, 224 00:13:26,120 --> 00:13:28,560 Speaker 3: you know, and all the other big talents say, you know, 225 00:13:29,400 --> 00:13:30,720 Speaker 3: enough of that high prices. 226 00:13:31,080 --> 00:13:31,160 Speaker 4: No. 227 00:13:31,320 --> 00:13:35,160 Speaker 3: So I think there may be a little disappointment in 228 00:13:35,280 --> 00:13:39,880 Speaker 3: what the result will be immediately. If we're lucky, there'll 229 00:13:39,920 --> 00:13:43,840 Speaker 3: be more competition and we'll have different kinds of ticketing 230 00:13:43,920 --> 00:13:49,400 Speaker 3: services with different options, and maybe lower prices for the 231 00:13:49,440 --> 00:13:54,440 Speaker 3: ticketing service itself, and maybe if there's some divestiture of 232 00:13:54,640 --> 00:13:59,120 Speaker 3: the arenas, maybe lower prices on the talent. I don't know. 233 00:13:59,480 --> 00:14:01,679 Speaker 3: Hard to see say how that'll all come out. But 234 00:14:01,840 --> 00:14:06,520 Speaker 3: my guess is, you know, tomorrow the tickets for these 235 00:14:06,559 --> 00:14:10,320 Speaker 3: big ticket concerts are not going to change, at least 236 00:14:10,320 --> 00:14:11,000 Speaker 3: not very much. 237 00:14:11,600 --> 00:14:15,520 Speaker 1: The Trump administration appears to be a lax enforcer of 238 00:14:15,559 --> 00:14:18,280 Speaker 1: the anti trust laws. Do you think this verdict gives 239 00:14:18,280 --> 00:14:21,840 Speaker 1: an impetus to the states and private parties to bring 240 00:14:21,880 --> 00:14:23,280 Speaker 1: more anti trust actions. 241 00:14:23,720 --> 00:14:25,840 Speaker 3: I mean, I think that that impetus has been there. 242 00:14:26,200 --> 00:14:29,760 Speaker 3: The problems are there as well. Anti trust litigation is expensive, 243 00:14:30,040 --> 00:14:34,200 Speaker 3: has to be highly resourced. Private parties have to have 244 00:14:34,360 --> 00:14:37,640 Speaker 3: some confidence that they can collect because they usually bring 245 00:14:37,680 --> 00:14:40,800 Speaker 3: these class actions where they get awarded a part of 246 00:14:40,840 --> 00:14:43,680 Speaker 3: the recovery. So I don't know whether it gives them 247 00:14:43,680 --> 00:14:47,160 Speaker 3: more incentive or it just makes it more important that 248 00:14:47,440 --> 00:14:50,360 Speaker 3: they stay in the game. And this has been the 249 00:14:50,400 --> 00:14:53,600 Speaker 3: game for a while, and it often heats up when 250 00:14:53,960 --> 00:15:00,120 Speaker 3: the federal government's efforts seem misdirected, lack a daisical and so, 251 00:15:00,760 --> 00:15:04,000 Speaker 3: but it's also something the federal governments to keep in mind. 252 00:15:04,080 --> 00:15:07,080 Speaker 3: They don't have a monopoly on enforcement. You know, they 253 00:15:07,120 --> 00:15:10,200 Speaker 3: may prefer all this stuff to go away, but the 254 00:15:10,280 --> 00:15:13,000 Speaker 3: states may have other ideas. 255 00:15:12,440 --> 00:15:16,200 Speaker 1: And perhaps winning ideas like continuing this trial. So he's 256 00:15:16,240 --> 00:15:19,280 Speaker 1: great to get your insights, Harry, thanks so much. That's 257 00:15:19,280 --> 00:15:23,160 Speaker 1: Professor Harry First of NYU Law School. Coming up next 258 00:15:23,200 --> 00:15:27,080 Speaker 1: on Bloomberg Law. A rare apology from a justice. I'm 259 00:15:27,160 --> 00:15:31,640 Speaker 1: June Grosso and you're listening to Bloomberg. Justice Sonya so 260 00:15:31,800 --> 00:15:34,360 Speaker 1: to Mayor was on the road about a week ago 261 00:15:34,600 --> 00:15:38,560 Speaker 1: speaking about her latest children's book and her experiences as 262 00:15:38,600 --> 00:15:41,400 Speaker 1: a Supreme Court justice during a Q and A at 263 00:15:41,440 --> 00:15:45,040 Speaker 1: the University of Alabama Law School on April ninth, when 264 00:15:45,080 --> 00:15:50,120 Speaker 1: Sotomayor was asked how she builds bridges across ideological lines 265 00:15:50,160 --> 00:15:52,800 Speaker 1: with her colleagues, her answer was blunt. 266 00:15:53,160 --> 00:15:58,520 Speaker 2: If you mean bridges by bridges, convince them that they're wrong. 267 00:16:04,400 --> 00:16:06,600 Speaker 2: I just sent so much. I'm not very successful. 268 00:16:07,040 --> 00:16:10,400 Speaker 1: Two days earlier, during an appearance at the University of 269 00:16:10,520 --> 00:16:14,800 Speaker 1: Kansas Law School, the liberal justice had taken a personal 270 00:16:14,920 --> 00:16:19,320 Speaker 1: swipe at one of those colleagues from across the ideological divide. 271 00:16:19,680 --> 00:16:24,440 Speaker 1: She criticized Conservative Justice Brett Kavanaugh for a concurrence where 272 00:16:24,440 --> 00:16:28,800 Speaker 1: he wrote that legal residence detained in ice immigration stops 273 00:16:29,280 --> 00:16:34,160 Speaker 1: promptly go free after a typically brief encounter so Tomyor said, 274 00:16:34,680 --> 00:16:38,080 Speaker 1: this is from a man whose parents were professionals and 275 00:16:38,240 --> 00:16:42,000 Speaker 1: probably doesn't really know any person who works by the hour. 276 00:16:42,480 --> 00:16:45,800 Speaker 1: That rare personal criticism of a colleague led to an 277 00:16:45,880 --> 00:16:50,240 Speaker 1: equally rare apology from Soda Mayor. Joining me is David Super, 278 00:16:50,400 --> 00:16:54,800 Speaker 1: a professor at Georgetown Law. David on Wednesday, so eight 279 00:16:54,880 --> 00:16:58,720 Speaker 1: days after those remarks, Soda Mayor said in a statement 280 00:16:58,760 --> 00:17:01,560 Speaker 1: that her remarks were in a appropriate I regret my 281 00:17:01,640 --> 00:17:05,720 Speaker 1: hurtful comments. I have apologized to my colleague. Do you 282 00:17:05,720 --> 00:17:10,600 Speaker 1: think a public apology was really necessary morally necessary? 283 00:17:10,880 --> 00:17:15,080 Speaker 4: No, because what she said was true, both in its 284 00:17:15,160 --> 00:17:20,399 Speaker 4: specifics and in its generality. But practically, I'm very glad 285 00:17:20,480 --> 00:17:25,119 Speaker 4: she did it because she has an unusual role that 286 00:17:25,200 --> 00:17:27,920 Speaker 4: you and I don't. She has to work with six 287 00:17:27,960 --> 00:17:32,640 Speaker 4: people who don't agree with her much, and letting personalized 288 00:17:32,760 --> 00:17:35,480 Speaker 4: comments get into that is going to make it harder 289 00:17:35,520 --> 00:17:39,240 Speaker 4: for her to put together the votes for a majority opinion, 290 00:17:39,640 --> 00:17:42,520 Speaker 4: or when she does put together the vote's going to 291 00:17:42,560 --> 00:17:46,480 Speaker 4: make it harder for her to negotiate a good majority opinion. 292 00:17:46,680 --> 00:17:51,520 Speaker 4: So the kind of comments she made are appealing to 293 00:17:51,640 --> 00:17:54,040 Speaker 4: many of us that are frustrated with the court. In 294 00:17:54,119 --> 00:17:57,680 Speaker 4: general and that justice in particular. But I don't think 295 00:17:57,720 --> 00:18:00,160 Speaker 4: it was wise, and I think she made the right choice. 296 00:18:00,480 --> 00:18:05,840 Speaker 1: And you rarely hear justices criticizing each other, especially personal criticism. 297 00:18:06,040 --> 00:18:07,639 Speaker 1: Actually I can't think of another time. 298 00:18:08,080 --> 00:18:11,199 Speaker 4: You don't usually hear that, and I think the reason 299 00:18:11,240 --> 00:18:15,960 Speaker 4: you don't is because they're afraid that it will interfere 300 00:18:16,000 --> 00:18:18,520 Speaker 4: with their ability to work with one another in the future. 301 00:18:18,800 --> 00:18:24,520 Speaker 4: But when justices believe that there already is no ability 302 00:18:24,600 --> 00:18:29,119 Speaker 4: to work together, frustration can boil over. There are not 303 00:18:29,320 --> 00:18:33,040 Speaker 4: a lot of controversial cases on with Justice Soto my 304 00:18:33,200 --> 00:18:36,520 Speaker 4: Orange Justice Kavanaugh have been on the same side, and 305 00:18:36,880 --> 00:18:39,600 Speaker 4: there have been quite a few where it's been otherwise. 306 00:18:39,880 --> 00:18:43,120 Speaker 4: But I think that the point that she's making, perhaps 307 00:18:43,160 --> 00:18:47,399 Speaker 4: more bluntly than some would, is an important point. And 308 00:18:47,520 --> 00:18:53,680 Speaker 4: about the shadow docket, Justice Kavanaugh asserted as a indisputable 309 00:18:53,760 --> 00:18:58,119 Speaker 4: fact that US citizens and legal permanent residence are immediately 310 00:18:58,240 --> 00:19:02,119 Speaker 4: let go. There's overwhelmed. Evan is that's not true? And 311 00:19:02,400 --> 00:19:05,560 Speaker 4: if the Supreme Court was taking cases that were properly 312 00:19:05,640 --> 00:19:08,840 Speaker 4: developed in the lower courts on the facts, it would 313 00:19:08,840 --> 00:19:12,760 Speaker 4: know that's not true, and it could say we don't care, 314 00:19:13,560 --> 00:19:16,919 Speaker 4: or it could say we will allow orders designed to 315 00:19:17,000 --> 00:19:20,760 Speaker 4: make that so or it could say this means these 316 00:19:20,760 --> 00:19:24,840 Speaker 4: stops are inappropriate, but it wouldn't be able to make 317 00:19:25,240 --> 00:19:29,640 Speaker 4: absolute assertions of fact that are simply false. And if 318 00:19:29,680 --> 00:19:32,840 Speaker 4: you want to decide cases on the law, maybe there's 319 00:19:32,880 --> 00:19:37,480 Speaker 4: an argument for an emergency docket, although I don't agree 320 00:19:37,520 --> 00:19:40,159 Speaker 4: with it. But if you want to decide cases on 321 00:19:40,240 --> 00:19:42,840 Speaker 4: the fact, which he's doing there, then you have to 322 00:19:42,920 --> 00:19:44,680 Speaker 4: let the lower courts develop the facts. 323 00:19:45,000 --> 00:19:47,240 Speaker 1: And by the way, those are now referred to as 324 00:19:47,400 --> 00:19:52,040 Speaker 1: Kavanaugh stops. And at an appearance two days after those remarks, 325 00:19:52,440 --> 00:19:55,119 Speaker 1: so Tomayor seemed to be going out of her way 326 00:19:55,240 --> 00:19:58,320 Speaker 1: to describe the collegiality on the court. 327 00:19:58,800 --> 00:20:01,919 Speaker 2: I look to them as people to have a relationship 328 00:20:01,960 --> 00:20:07,120 Speaker 2: with them, and I dare say that with virtually all 329 00:20:07,200 --> 00:20:12,040 Speaker 2: of them, I certainly have a civil relationship, and with 330 00:20:12,240 --> 00:20:14,560 Speaker 2: many of them, I think I dare say that I 331 00:20:14,600 --> 00:20:15,480 Speaker 2: have a friendship. 332 00:20:15,960 --> 00:20:20,320 Speaker 4: I mean, these are professionals, and I'm always a little 333 00:20:20,359 --> 00:20:24,640 Speaker 4: skeptical about the claims that these people are big friends 334 00:20:24,680 --> 00:20:28,920 Speaker 4: of one another. I know Justice Ginsberg and Justice Clia 335 00:20:29,000 --> 00:20:33,160 Speaker 4: went to the opera together, but I think that in 336 00:20:33,240 --> 00:20:38,199 Speaker 4: many ways, these are nine independent offices, each in the 337 00:20:38,280 --> 00:20:44,040 Speaker 4: same building, that interact mostly through paper and occasionally in 338 00:20:44,080 --> 00:20:48,080 Speaker 4: fairly formal ways, like oral arguments in conference. So I'm 339 00:20:48,119 --> 00:20:51,440 Speaker 4: not sure that this changes a great deal. I don't 340 00:20:51,480 --> 00:20:55,240 Speaker 4: see a lot of outward evidence of much comedy. The 341 00:20:55,280 --> 00:21:00,240 Speaker 4: Court is working very, very fast. I'm sure it is 342 00:21:00,560 --> 00:21:04,400 Speaker 4: jamming that the descending justices to work to all hours 343 00:21:04,440 --> 00:21:07,439 Speaker 4: to get their descents out, rather than holding up and 344 00:21:07,480 --> 00:21:09,560 Speaker 4: giving them a little bit of time, which has been 345 00:21:09,600 --> 00:21:12,320 Speaker 4: done on very very big cases in the past. 346 00:21:12,560 --> 00:21:16,639 Speaker 1: Another liberal justice made some critical remarks this week, but 347 00:21:16,680 --> 00:21:20,760 Speaker 1: about the Court's emergency docket, not about any justice in particular. 348 00:21:21,080 --> 00:21:24,520 Speaker 1: In a lecture at Yale Law School on Wednesday, Justice 349 00:21:24,600 --> 00:21:29,919 Speaker 1: Katanji Brown Jackson expressed concerns that the Court's handling of 350 00:21:29,920 --> 00:21:35,240 Speaker 1: its emergency docket is having an enormously disruptive and potentially 351 00:21:35,480 --> 00:21:38,280 Speaker 1: corrosive effect on the federal judiciary. 352 00:21:39,200 --> 00:21:43,080 Speaker 5: So the Court has left confusion in its wake, and 353 00:21:43,119 --> 00:21:46,560 Speaker 5: it offers little guidance because it ordinarily does not spell 354 00:21:46,600 --> 00:21:51,520 Speaker 5: out the circumstances giving rise to its own equities evaluation, 355 00:21:51,960 --> 00:21:56,240 Speaker 5: making it incredibly difficult for lower courts to understand which 356 00:21:56,400 --> 00:22:00,119 Speaker 5: facts were important to the state determination and thus es 357 00:22:00,560 --> 00:22:02,720 Speaker 5: identify like cases. 358 00:22:03,280 --> 00:22:07,000 Speaker 1: David, will you explain the confusion in the lower courts 359 00:22:07,040 --> 00:22:11,560 Speaker 1: about orders from the emergency docket that Jackson is referring to. 360 00:22:12,200 --> 00:22:16,600 Speaker 4: The lower courts are bound by the Supreme Court's holding. 361 00:22:17,200 --> 00:22:21,720 Speaker 4: But if it's only holding is that an injunction in 362 00:22:21,840 --> 00:22:25,200 Speaker 4: this case or that is stayed, and they don't give 363 00:22:25,280 --> 00:22:30,120 Speaker 4: us any reasoning, then the lower courts are not bound 364 00:22:30,440 --> 00:22:34,159 Speaker 4: by reasoning that they are speculating. They're bound by what 365 00:22:34,200 --> 00:22:36,520 Speaker 4: the Court tells us to decide cases. 366 00:22:37,320 --> 00:22:41,680 Speaker 1: We've seen pushback from federal district court judges, especially after 367 00:22:41,880 --> 00:22:46,639 Speaker 1: Justice Neil Gorsuch scolded them for not following shadow docket 368 00:22:46,720 --> 00:22:50,560 Speaker 1: rulings and accuse him of defying the Supreme Court. And 369 00:22:50,600 --> 00:22:54,160 Speaker 1: now that's billed over into the appellate courts. Last week, 370 00:22:54,320 --> 00:22:58,000 Speaker 1: judges on the Fourth Circuit, we're trading insults about how 371 00:22:58,080 --> 00:23:00,960 Speaker 1: much weight to give the Supreme Court. It's rulings from 372 00:23:00,960 --> 00:23:03,919 Speaker 1: the shadow docket. And this was an on bank panel. 373 00:23:04,000 --> 00:23:06,920 Speaker 1: So all the judges on the Fourth Circuit, so tell 374 00:23:07,000 --> 00:23:09,359 Speaker 1: us what the majority decided in that case. 375 00:23:09,720 --> 00:23:16,160 Speaker 4: Yeah, the case was about an injunction limiting Doz's access 376 00:23:16,320 --> 00:23:21,480 Speaker 4: to extremely sensitive social security information on you and me 377 00:23:21,560 --> 00:23:25,120 Speaker 4: and hundreds of millions of other people. And the Supreme 378 00:23:25,200 --> 00:23:30,560 Speaker 4: Court had previously held that an earlier lower court injunction 379 00:23:30,680 --> 00:23:35,240 Speaker 4: in that case could not be enforced until appeables were 380 00:23:35,280 --> 00:23:38,960 Speaker 4: fully exhausted up to the Supreme Court. And so what 381 00:23:39,119 --> 00:23:44,320 Speaker 4: the majority in the Fourth Circuit decided was that it 382 00:23:44,440 --> 00:23:46,879 Speaker 4: was going to send the case back down to the 383 00:23:46,920 --> 00:23:52,000 Speaker 4: district court. It was not going to purport to reinstate 384 00:23:52,160 --> 00:23:55,040 Speaker 4: an injunction because the Supreme Court had pretty clearly said 385 00:23:55,040 --> 00:23:55,920 Speaker 4: it couldn't do that. 386 00:23:56,520 --> 00:24:00,280 Speaker 1: And that prompted a rebuke from Judge James Win, joined 387 00:24:00,280 --> 00:24:03,239 Speaker 1: by four other judges and descent. He wrote that to 388 00:24:03,280 --> 00:24:07,600 Speaker 1: treat interim orders as binding precedent abandons our long held 389 00:24:07,680 --> 00:24:13,280 Speaker 1: jurisprudence of deciding constitutional law through reasoned opinions, not emergency 390 00:24:13,359 --> 00:24:17,160 Speaker 1: motions made under intense time pressure. So basically we don't 391 00:24:17,200 --> 00:24:19,800 Speaker 1: have to follow those Supreme Court orders. Is that just 392 00:24:19,960 --> 00:24:21,560 Speaker 1: utter defiance of the court. 393 00:24:22,400 --> 00:24:26,480 Speaker 4: It's absolutely not defiance. It's actually a very traditionalist and 394 00:24:26,640 --> 00:24:30,359 Speaker 4: the Supreme Court has lectured us often on the importance 395 00:24:30,440 --> 00:24:33,600 Speaker 4: of following the rules that were in place when the 396 00:24:33,640 --> 00:24:36,920 Speaker 4: Constitution was adopted. And this is although it doesn't call 397 00:24:36,960 --> 00:24:41,680 Speaker 4: itself originalists. This is originalist in that courts have two 398 00:24:42,000 --> 00:24:45,480 Speaker 4: entirely different functions that they often perform in the same case. 399 00:24:45,840 --> 00:24:48,399 Speaker 4: They decide the rights of the parties before them, and 400 00:24:48,440 --> 00:24:51,399 Speaker 4: they make precedent for the future. Those are different functions. 401 00:24:52,080 --> 00:24:57,960 Speaker 4: And nobody, not the concurring justices, not Justices Jackson, and 402 00:24:58,000 --> 00:25:02,120 Speaker 4: so to nobody questions that the Supreme Court can decide 403 00:25:02,160 --> 00:25:05,040 Speaker 4: the rights of the parties before it on the shadow docket. 404 00:25:05,359 --> 00:25:08,199 Speaker 4: The question is whether when it issues an order for 405 00:25:08,280 --> 00:25:11,359 Speaker 4: the parties in front of it without an opinion or 406 00:25:11,359 --> 00:25:15,240 Speaker 4: without a meaningful opinion, if that should be also treated 407 00:25:15,280 --> 00:25:22,720 Speaker 4: as president and the history is that court's issue opinions 408 00:25:23,119 --> 00:25:27,520 Speaker 4: to tell us why they're deciding things. Often the parties 409 00:25:27,520 --> 00:25:31,680 Speaker 4: are making half a dozen different arguments and knowing that 410 00:25:31,680 --> 00:25:34,520 Speaker 4: that party one doesn't tell you which of those six 411 00:25:34,680 --> 00:25:38,000 Speaker 4: arguments was persuasive with the court. And if we just 412 00:25:38,240 --> 00:25:40,960 Speaker 4: guess as to why the Court did what it did, 413 00:25:41,400 --> 00:25:44,600 Speaker 4: will often be creating a law out of thin air, 414 00:25:45,040 --> 00:25:48,440 Speaker 4: playing ventriloquist, which is not the lower court's job. It's 415 00:25:48,480 --> 00:25:49,520 Speaker 4: not any of our jobs. 416 00:25:50,040 --> 00:25:52,560 Speaker 1: In a case on the emergency docket where the Supreme 417 00:25:52,600 --> 00:25:56,960 Speaker 1: Court allowed President Trump to remove three democratic members of 418 00:25:57,000 --> 00:26:01,440 Speaker 1: the Consumer Products Safety Commission, so that its interim order 419 00:26:01,560 --> 00:26:05,720 Speaker 1: informs how a lower court should exercise its equitable discretion 420 00:26:06,320 --> 00:26:11,440 Speaker 1: in like cases. In her speech, Jackson criticized that guidance, 421 00:26:11,680 --> 00:26:14,280 Speaker 1: if we can call it guidance, will you explain what 422 00:26:14,320 --> 00:26:16,160 Speaker 1: the court was trying to get across there? 423 00:26:16,680 --> 00:26:20,400 Speaker 4: The question is what kind of precedent is it? And 424 00:26:20,920 --> 00:26:26,280 Speaker 4: the Justice there says that it informs what the lower 425 00:26:26,320 --> 00:26:29,679 Speaker 4: courts can do, but only in like cases. When you 426 00:26:29,760 --> 00:26:33,080 Speaker 4: don't have much of an opinion from the Supreme Court, 427 00:26:33,440 --> 00:26:37,960 Speaker 4: it's very hard to know what like cases are, and 428 00:26:38,720 --> 00:26:42,440 Speaker 4: it can inform only to the extent that it provides information. 429 00:26:43,200 --> 00:26:47,080 Speaker 4: And if they don't tell us what's important, then it's 430 00:26:47,280 --> 00:26:52,000 Speaker 4: very hard for lawyers or judges or voters to know 431 00:26:52,440 --> 00:26:56,640 Speaker 4: how they are to change what they're doing. Also critical 432 00:26:56,720 --> 00:27:01,720 Speaker 4: here that the Justice mentions equitable question. Equity is not 433 00:27:01,920 --> 00:27:05,560 Speaker 4: a system of rigid rules. Equity is a system of 434 00:27:06,040 --> 00:27:11,600 Speaker 4: judges applying judgment, and that judgment should be consistent with 435 00:27:11,760 --> 00:27:14,960 Speaker 4: the general principles of our system. But it's never a 436 00:27:15,080 --> 00:27:19,920 Speaker 4: rigid process, and so asking lower court judges to act 437 00:27:20,160 --> 00:27:24,919 Speaker 4: rigidly in an equitable case is like asking for a 438 00:27:25,400 --> 00:27:28,040 Speaker 4: ocean without any water, it doesn't work that way. 439 00:27:28,359 --> 00:27:33,080 Speaker 1: And continuing that analogy, there's been a stream of criticism 440 00:27:33,320 --> 00:27:36,879 Speaker 1: of the emergency docket, known as the shadow docket, for 441 00:27:36,920 --> 00:27:40,480 Speaker 1: its lack of transparency, and the Court perhaps recognize the 442 00:27:40,520 --> 00:27:45,600 Speaker 1: criticism by taking some of the shadow docket cases and 443 00:27:45,640 --> 00:27:48,159 Speaker 1: putting them on the regular docket so there could be 444 00:27:48,200 --> 00:27:51,400 Speaker 1: full briefings in oral arguments. That was done, for example, 445 00:27:51,440 --> 00:27:55,280 Speaker 1: in the birthright citizenship case. As always, thanks for joining me, David. 446 00:27:55,520 --> 00:27:59,320 Speaker 1: That's Professor David Super of Georgetown Law coming up next 447 00:27:59,359 --> 00:28:03,320 Speaker 1: on Bloomberg Law. The errors being made by Justice Department 448 00:28:03,520 --> 00:28:07,920 Speaker 1: lawyers are testing the patience of judges and the credibility 449 00:28:07,920 --> 00:28:11,240 Speaker 1: of the Justice Department. I'm June Grosso and you're listening 450 00:28:11,320 --> 00:28:17,879 Speaker 1: to Bloomberg. Todd Blanche, now the acting Attorney General and 451 00:28:17,960 --> 00:28:22,400 Speaker 1: once President Trump's defense lawyer, recently cheered the fact that 452 00:28:22,560 --> 00:28:25,840 Speaker 1: all the Justice Department lawyers who were involved in the 453 00:28:25,920 --> 00:28:30,520 Speaker 1: past investigations of Trump have either been fired or resigned. 454 00:28:31,000 --> 00:28:34,919 Speaker 6: There is not a single man or woman at the 455 00:28:34,960 --> 00:28:40,360 Speaker 6: Department of Justice who had anything to do with those prosecutions. 456 00:28:41,000 --> 00:28:44,360 Speaker 1: So two hundred experienced lawyers are no longer at the 457 00:28:44,400 --> 00:28:48,680 Speaker 1: Department of Justice. Add that to more than three thousand attorneys, 458 00:28:49,000 --> 00:28:52,920 Speaker 1: many veteran career lawyers in leadership positions, who left the 459 00:28:52,960 --> 00:28:57,840 Speaker 1: department last year. The result is a smaller, less experienced 460 00:28:57,840 --> 00:29:02,400 Speaker 1: group of lawyers handling an eva expanding universe of litigation. 461 00:29:03,000 --> 00:29:06,080 Speaker 1: Could that be connected to the hundreds of instances of 462 00:29:06,400 --> 00:29:11,520 Speaker 1: Justice Department lawyers being scolded by judges for making false, misleading, 463 00:29:11,680 --> 00:29:16,080 Speaker 1: or inaccurate representations in court in defense of Trump policies. 464 00:29:16,720 --> 00:29:20,600 Speaker 1: Last week, a federal judge in Manhattan ordered Justice Department 465 00:29:20,680 --> 00:29:26,000 Speaker 1: lawyers to preserve all internal communications after they disclosed they'd 466 00:29:26,000 --> 00:29:30,200 Speaker 1: been relying on incorrect information in their arguments for months 467 00:29:30,600 --> 00:29:34,960 Speaker 1: in a fight over the administration's migrant arrest tactics. Could 468 00:29:35,080 --> 00:29:38,520 Speaker 1: sanctions be in their future? My guest is former federal 469 00:29:38,560 --> 00:29:43,200 Speaker 1: prosecutor Robert Mintz Apartment macarter in English. So Justice Department 470 00:29:43,320 --> 00:29:47,240 Speaker 1: lawyers are representing government agencies? What are their duties when 471 00:29:47,280 --> 00:29:49,160 Speaker 1: appearing in court for those agencies? 472 00:29:49,640 --> 00:29:53,120 Speaker 6: When you go into court as an assistant US attorney 473 00:29:53,520 --> 00:29:57,080 Speaker 6: or any attorney representing the Department of Justice, you always 474 00:29:57,280 --> 00:30:01,160 Speaker 6: bring with you the credibility of us years and years 475 00:30:01,280 --> 00:30:04,440 Speaker 6: of attorneys who have stood in your shoes before you 476 00:30:04,840 --> 00:30:08,160 Speaker 6: addressing the court, and there's a tremendous responsibility to make 477 00:30:08,200 --> 00:30:10,920 Speaker 6: sure that anything you say to a judge is one 478 00:30:11,040 --> 00:30:13,680 Speaker 6: hundred percent accurate. And if you don't know the answer, 479 00:30:13,880 --> 00:30:15,600 Speaker 6: you tell the judge you don't know the answer, and 480 00:30:15,640 --> 00:30:18,360 Speaker 6: you'll get the correct information back to the judge at 481 00:30:18,360 --> 00:30:21,520 Speaker 6: some point. Because in order for the Department of Justice 482 00:30:21,880 --> 00:30:24,680 Speaker 6: to be able to advocate effectively on behalf of the 483 00:30:24,680 --> 00:30:28,080 Speaker 6: federal government, it's critical that judges can rely on the 484 00:30:28,120 --> 00:30:32,920 Speaker 6: representations of government lawyers. And so it's incumbent on DOJ 485 00:30:33,320 --> 00:30:37,120 Speaker 6: prosecutors and other lawyers representing the government to make sure 486 00:30:37,240 --> 00:30:41,000 Speaker 6: that whatever information they're conveying on behalf of their agency 487 00:30:41,080 --> 00:30:44,800 Speaker 6: clients or on behalf of the Department of Justice is accurate. 488 00:30:45,240 --> 00:30:48,240 Speaker 6: And what we've seen here is a slow but steady 489 00:30:48,320 --> 00:30:53,080 Speaker 6: erosion of that confidence of the federal courts that Department 490 00:30:53,080 --> 00:30:56,920 Speaker 6: of Justice lawyers are giving them information that is accurate. 491 00:30:57,080 --> 00:30:59,320 Speaker 6: And it's come about as a result of a series 492 00:30:59,360 --> 00:31:02,560 Speaker 6: of cases in which Department of Justice lawyers have been 493 00:31:02,640 --> 00:31:06,680 Speaker 6: forced to make embarrassing corrections about information that they frankly 494 00:31:06,920 --> 00:31:08,040 Speaker 6: should have known about. 495 00:31:08,600 --> 00:31:12,040 Speaker 1: The Justice Department lost about a quarter of its attorneys 496 00:31:12,120 --> 00:31:15,200 Speaker 1: last year about thirty four hundred. A lot of them 497 00:31:15,200 --> 00:31:20,200 Speaker 1: were experienced career prosecutors. So can these errors in court 498 00:31:20,320 --> 00:31:24,960 Speaker 1: be explained by the inexperience of the attorneys or are 499 00:31:24,960 --> 00:31:27,600 Speaker 1: they not doing enough preparation or something else. 500 00:31:28,000 --> 00:31:31,680 Speaker 6: I think it's a combination of inexperience and understaffing. The 501 00:31:31,720 --> 00:31:34,720 Speaker 6: experience of the lawyers going into court representing the United 502 00:31:34,760 --> 00:31:39,840 Speaker 6: States government is absolutely critical. US attorney's offices are generally 503 00:31:39,960 --> 00:31:44,640 Speaker 6: around the country considered training grounds for exceptional attorneys. 504 00:31:45,160 --> 00:31:46,040 Speaker 1: The job of a. 505 00:31:45,960 --> 00:31:51,600 Speaker 6: Federal prosecutor has historically been something that is an extremely 506 00:31:51,840 --> 00:31:55,000 Speaker 6: sought after position, and so the Department of Justice really 507 00:31:55,040 --> 00:31:59,360 Speaker 6: has its pick of attorneys in selecting assistant US attorneys 508 00:31:59,400 --> 00:32:01,479 Speaker 6: and offices around on the country. And what they do 509 00:32:01,600 --> 00:32:03,560 Speaker 6: is they try to train those attorneys. 510 00:32:03,720 --> 00:32:04,360 Speaker 1: They do not. 511 00:32:04,520 --> 00:32:08,320 Speaker 6: Select attorneys who necessarily have any criminal experience when they 512 00:32:08,360 --> 00:32:11,200 Speaker 6: pick people who will be representing the Department of Justice 513 00:32:11,240 --> 00:32:14,520 Speaker 6: in criminal cases. Instead, they bring in attorneys that they 514 00:32:14,560 --> 00:32:17,000 Speaker 6: believe are among the best and the brightest, and they 515 00:32:17,080 --> 00:32:22,040 Speaker 6: train those lawyers using the more experienced attorneys in the office. So, 516 00:32:22,160 --> 00:32:24,880 Speaker 6: as an example, when a new attorney comes into the 517 00:32:24,920 --> 00:32:28,240 Speaker 6: office and tries his or her case for the first time, 518 00:32:28,520 --> 00:32:30,520 Speaker 6: they will have a second chair with them. They will 519 00:32:30,560 --> 00:32:33,960 Speaker 6: have a more experienced attorney sitting next to them and 520 00:32:34,040 --> 00:32:37,000 Speaker 6: assisting them throughout that trial. And that's the way these 521 00:32:37,040 --> 00:32:40,360 Speaker 6: attorneys learn. The problem right now is that there has 522 00:32:40,400 --> 00:32:43,880 Speaker 6: been a mass exodus of experienced attorneys from the Department 523 00:32:43,960 --> 00:32:47,120 Speaker 6: of Justice, from US Attorney's offices around the country, and 524 00:32:47,200 --> 00:32:50,720 Speaker 6: so that level of experience and oversight is simply not 525 00:32:50,920 --> 00:32:51,760 Speaker 6: there right now. 526 00:32:51,920 --> 00:32:53,240 Speaker 4: And we've seen case. 527 00:32:53,000 --> 00:32:57,200 Speaker 6: After case where inexperienced attorneys who have not been given 528 00:32:57,480 --> 00:33:00,320 Speaker 6: the guidance that is necessary to make sure that they 529 00:33:00,360 --> 00:33:02,680 Speaker 6: are doing the job they're supposed to be doing, are 530 00:33:02,720 --> 00:33:06,600 Speaker 6: placed in positions in front of judges and can't really 531 00:33:06,640 --> 00:33:09,520 Speaker 6: effectively advocate on behalf of the government. And in the 532 00:33:09,600 --> 00:33:12,360 Speaker 6: course of all of this, they are losing the confidence 533 00:33:12,440 --> 00:33:16,240 Speaker 6: and the trust of the judiciary in the representations that 534 00:33:16,280 --> 00:33:19,560 Speaker 6: they often make to the court during these matters. 535 00:33:20,160 --> 00:33:23,000 Speaker 1: And Bob, you are a federal prosecutor. It used to 536 00:33:23,000 --> 00:33:25,600 Speaker 1: be hard to get into the Justice Department, right, but 537 00:33:25,760 --> 00:33:28,720 Speaker 1: now they're deciding that they're going to take people right 538 00:33:28,760 --> 00:33:29,760 Speaker 1: out of law school. 539 00:33:30,120 --> 00:33:32,560 Speaker 6: Yeah, when I applied to the US Attorney's office, there 540 00:33:32,560 --> 00:33:35,640 Speaker 6: was something like fifty to seventy five applications for every 541 00:33:35,720 --> 00:33:39,080 Speaker 6: single position, and that was generally true around the country, 542 00:33:39,200 --> 00:33:41,520 Speaker 6: whether you're in the Southern District of New York, the 543 00:33:41,560 --> 00:33:45,240 Speaker 6: District of New Jersey, Chicago, Los Angeles, or other offices 544 00:33:45,280 --> 00:33:49,360 Speaker 6: around the country. These jobs are extremely highly sought after 545 00:33:49,640 --> 00:33:53,360 Speaker 6: because it gives a young attorney the opportunity to practice 546 00:33:53,560 --> 00:33:56,320 Speaker 6: at the highest level, to be able to litigate in 547 00:33:56,440 --> 00:33:59,520 Speaker 6: federal court on behalf of the United States government, and 548 00:33:59,600 --> 00:34:02,840 Speaker 6: some of them most complex and interesting cases that you'll 549 00:34:02,840 --> 00:34:06,000 Speaker 6: ever handle as an attorney. And so these are positions 550 00:34:06,360 --> 00:34:10,120 Speaker 6: that typically you find the best and the brightest, coming 551 00:34:10,160 --> 00:34:12,600 Speaker 6: out of the best law schools, coming out of the 552 00:34:12,640 --> 00:34:16,000 Speaker 6: best clerkships. And it's from this pool of applicants that 553 00:34:16,080 --> 00:34:20,480 Speaker 6: they have over many, many years drawn assistant US attorneys 554 00:34:20,560 --> 00:34:23,239 Speaker 6: from around the country, many of whom go on to 555 00:34:23,280 --> 00:34:26,440 Speaker 6: the federal banks or other prestigious jobs in the law. 556 00:34:26,680 --> 00:34:30,359 Speaker 6: And right now they're facing a real exodus of that 557 00:34:30,480 --> 00:34:33,040 Speaker 6: type of talent, and that has created the crisis that 558 00:34:33,080 --> 00:34:35,920 Speaker 6: we're facing right now with the judiciary and with the 559 00:34:35,960 --> 00:34:37,040 Speaker 6: Department of Justice. 560 00:34:37,360 --> 00:34:40,719 Speaker 1: During the past year, many judges have issued opinions with 561 00:34:40,920 --> 00:34:46,920 Speaker 1: strong language calling out violations of court orders. Minnesota's chief 562 00:34:47,160 --> 00:34:50,560 Speaker 1: US district judge threatened to hold Ice in contempt for 563 00:34:50,719 --> 00:34:54,600 Speaker 1: violating orders more than one hundred times in cases brought 564 00:34:54,640 --> 00:34:58,439 Speaker 1: by immigrants in his court. If Ice or any other 565 00:34:58,480 --> 00:35:02,880 Speaker 1: agency doesn't follow a judge's order, is the Justice Department 566 00:35:02,920 --> 00:35:05,160 Speaker 1: attorney responsible for that in any way? 567 00:35:05,560 --> 00:35:08,520 Speaker 6: Well, that's exactly the argument that the Department of Justice 568 00:35:08,560 --> 00:35:12,600 Speaker 6: has made in these cases. Essentially, the DOJ has argued 569 00:35:13,000 --> 00:35:17,160 Speaker 6: that the attorney representing the agency in federal court doesn't 570 00:35:17,200 --> 00:35:19,120 Speaker 6: control the agency, and the. 571 00:35:19,120 --> 00:35:20,560 Speaker 4: Government lawyers do not. 572 00:35:20,760 --> 00:35:24,880 Speaker 6: By representing an agency in a district court personally guaranteed 573 00:35:24,920 --> 00:35:28,000 Speaker 6: the agency's compliance with court orders. So we have these 574 00:35:28,040 --> 00:35:33,120 Speaker 6: circumstances where federal prosecutors and other Department of Justice attorneys 575 00:35:33,440 --> 00:35:37,160 Speaker 6: are being asked to convey messages back to the agency 576 00:35:37,239 --> 00:35:40,160 Speaker 6: to make sure that an agency carries out a judge's order, 577 00:35:40,320 --> 00:35:43,399 Speaker 6: and if the agency fails to do that, the prosecutor 578 00:35:43,480 --> 00:35:46,799 Speaker 6: or attorney is getting essentially caught in the crossfire where 579 00:35:46,840 --> 00:35:51,400 Speaker 6: some judges have entered contempt orders personally against the attorneys 580 00:35:51,719 --> 00:35:54,760 Speaker 6: for the failings of the agencies. The Department of Justice 581 00:35:54,800 --> 00:35:58,279 Speaker 6: has argued that that's unfair because they can't control the agencies, 582 00:35:58,560 --> 00:36:01,480 Speaker 6: But it really is in large measure and failure of 583 00:36:01,480 --> 00:36:05,800 Speaker 6: the entire system, because the agencies should be following the judges' 584 00:36:05,880 --> 00:36:09,720 Speaker 6: orders and the agency's failure to do that really reflect 585 00:36:09,760 --> 00:36:14,160 Speaker 6: a breakdown in the communications between the judiciary and the 586 00:36:14,200 --> 00:36:17,399 Speaker 6: executive branch and is something that is going to take 587 00:36:17,400 --> 00:36:20,399 Speaker 6: a long time to repair given all the damage that's 588 00:36:20,440 --> 00:36:22,040 Speaker 6: been done over the past several years. 589 00:36:22,400 --> 00:36:26,160 Speaker 1: Also, there is an additional factor here, and that's that 590 00:36:26,760 --> 00:36:29,760 Speaker 1: some former employees say that new policies at the Justice 591 00:36:29,800 --> 00:36:34,319 Speaker 1: Department have discouraged attorneys from challenging the accuracy of the 592 00:36:34,360 --> 00:36:38,640 Speaker 1: information they're getting from agencies. And we've seen instances where 593 00:36:38,640 --> 00:36:41,600 Speaker 1: an attorney will admit something in court and then they're 594 00:36:41,640 --> 00:36:45,960 Speaker 1: fired the next day. So there's a different mindset at 595 00:36:45,960 --> 00:36:47,240 Speaker 1: this Justice Department. 596 00:36:47,560 --> 00:36:49,560 Speaker 6: What you're touching on here is really at the heart 597 00:36:49,600 --> 00:36:52,600 Speaker 6: of this issue because it really goes down to something 598 00:36:52,880 --> 00:36:54,719 Speaker 6: that is known in the law as the. 599 00:36:54,640 --> 00:36:56,239 Speaker 4: Presumption of regularity. 600 00:36:56,320 --> 00:37:00,239 Speaker 6: It's a concept where judges rely on this principle that 601 00:37:00,360 --> 00:37:04,400 Speaker 6: essentially means they trust the government to share accurate information 602 00:37:04,520 --> 00:37:07,600 Speaker 6: and they trust that the government is acting in good faith, 603 00:37:07,880 --> 00:37:10,920 Speaker 6: and in order to ensure that that baseline level of 604 00:37:11,000 --> 00:37:16,440 Speaker 6: confidence remains, there has to be this understanding that prosecutors 605 00:37:16,760 --> 00:37:20,960 Speaker 6: will make efforts to fairly inform the court of information, 606 00:37:21,560 --> 00:37:25,800 Speaker 6: information that may not necessarily be helpful to the government's case, 607 00:37:26,040 --> 00:37:29,920 Speaker 6: but information that is nonetheless accurate. And it's more important 608 00:37:30,040 --> 00:37:32,960 Speaker 6: that prosecutors give accurate information to the court than that 609 00:37:33,000 --> 00:37:36,840 Speaker 6: they give information that is necessarily going to further advocate 610 00:37:37,160 --> 00:37:40,560 Speaker 6: on behalf of the government's interests. And so this concept 611 00:37:40,560 --> 00:37:43,560 Speaker 6: of candor to the court is something that all lawyers 612 00:37:43,640 --> 00:37:47,759 Speaker 6: are responsible for. Ethically speaking, all lawyers have an obligation 613 00:37:48,000 --> 00:37:50,160 Speaker 6: to make sure that whatever information is provided to the 614 00:37:50,200 --> 00:37:54,400 Speaker 6: court that it is not knowingly false. But federal prosecutors 615 00:37:54,560 --> 00:37:57,920 Speaker 6: and Department of Justice lawyers have an even higher standard 616 00:37:58,160 --> 00:38:01,360 Speaker 6: because although they're advocating on behalf of a client, in 617 00:38:01,400 --> 00:38:04,680 Speaker 6: this case, the United States government, they also have a 618 00:38:04,800 --> 00:38:08,560 Speaker 6: duty to fairness and justice, and that means that there 619 00:38:08,600 --> 00:38:12,360 Speaker 6: are certain times where federal prosecutors have to provide information 620 00:38:12,560 --> 00:38:15,160 Speaker 6: to a court that may not be helpful to the 621 00:38:15,200 --> 00:38:19,400 Speaker 6: government's case. Prosecutors in criminal cases, as an example, have 622 00:38:19,440 --> 00:38:23,000 Speaker 6: a duty to provide exculpatory evidence to the defense. They 623 00:38:23,000 --> 00:38:26,399 Speaker 6: have to give the defense information that may hurt their 624 00:38:26,480 --> 00:38:27,640 Speaker 6: case and help. 625 00:38:27,480 --> 00:38:28,520 Speaker 4: The defendant's case. 626 00:38:28,800 --> 00:38:31,880 Speaker 6: But that's a duty that's placed upon federal prosecutors, and 627 00:38:31,920 --> 00:38:33,960 Speaker 6: it's an obligation that other lawyers. 628 00:38:33,760 --> 00:38:35,239 Speaker 4: Do not have to comply with. 629 00:38:35,480 --> 00:38:39,239 Speaker 6: But it underscores this point that federal prosecutors have to 630 00:38:39,280 --> 00:38:41,960 Speaker 6: make sure that whatever information they're providing to the court 631 00:38:42,239 --> 00:38:45,480 Speaker 6: is not only advocating on behalf of their client, but 632 00:38:45,600 --> 00:38:48,880 Speaker 6: is also fair and accurate. And I think what's happened 633 00:38:48,880 --> 00:38:52,920 Speaker 6: here is we've seen instances where zealous advocacy on behalf 634 00:38:52,920 --> 00:38:58,160 Speaker 6: of the administration has in some instances overridden the candor 635 00:38:58,239 --> 00:39:02,000 Speaker 6: to the court that all lawyers, and particularly federal lawyers, 636 00:39:02,160 --> 00:39:05,839 Speaker 6: are obligated to provide. And that's why we're seeing instances 637 00:39:05,840 --> 00:39:09,840 Speaker 6: where judges have become skeptical of representations made by government 638 00:39:09,920 --> 00:39:14,400 Speaker 6: lawyers during the course of certain cases, particularly immigration cases. 639 00:39:14,160 --> 00:39:18,000 Speaker 1: And recently in a Fourth Circuit case involving Doge, where 640 00:39:18,000 --> 00:39:22,160 Speaker 1: the government lawyers had made a correction admitting after the 641 00:39:22,200 --> 00:39:26,480 Speaker 1: court issued an injunction that they'd given the court incorrect information, 642 00:39:26,960 --> 00:39:31,400 Speaker 1: and the appellate judges disagreed about how to handle that admission. 643 00:39:31,640 --> 00:39:35,920 Speaker 1: And one judge wrote that this shows that quote, going forward, 644 00:39:36,040 --> 00:39:39,560 Speaker 1: we should not accord the defendants the government any benefit 645 00:39:39,600 --> 00:39:42,880 Speaker 1: of the doubt or readily trust in anything they say. 646 00:39:43,400 --> 00:39:47,239 Speaker 7: That's pretty astonishing, absolutely, I mean, you don't typically see 647 00:39:47,320 --> 00:39:50,319 Speaker 7: those kinds of statements coming from the court, and you're 648 00:39:50,320 --> 00:39:54,440 Speaker 7: absolutely correct that you're seeing judges grappling with this issue 649 00:39:54,480 --> 00:39:55,440 Speaker 7: in different ways. 650 00:39:55,520 --> 00:39:59,040 Speaker 6: Where some judges are being quite direct and quite pointed 651 00:39:59,080 --> 00:40:02,920 Speaker 6: in their criticism of the government's lawyers, others are giving 652 00:40:02,920 --> 00:40:06,120 Speaker 6: the government lawyers the benefit of the doubt somewhat more 653 00:40:06,239 --> 00:40:09,319 Speaker 6: now understanding that some of these mistakes may be the 654 00:40:09,400 --> 00:40:14,319 Speaker 6: result of being understaffed and simply an experience, but nonetheless 655 00:40:14,600 --> 00:40:17,799 Speaker 6: you can tell that the patience of the federal judiciary 656 00:40:18,320 --> 00:40:21,320 Speaker 6: is being frayed as they have to deal with these 657 00:40:21,400 --> 00:40:26,040 Speaker 6: inaccuracies and misrepresentations, whether or not they're done intentionally, but 658 00:40:26,200 --> 00:40:29,200 Speaker 6: it is something that is creating havoc in the federal courts, 659 00:40:29,400 --> 00:40:32,560 Speaker 6: and some judges are simply more fed up with the 660 00:40:32,600 --> 00:40:36,000 Speaker 6: situation than others and are expressing that directly on the 661 00:40:36,080 --> 00:40:39,120 Speaker 6: record during court proceedings, which is something that we've really 662 00:40:39,160 --> 00:40:40,040 Speaker 6: never seen before. 663 00:40:40,200 --> 00:40:43,759 Speaker 1: Well, federal judges are usually dealing with heavy dockets and 664 00:40:43,960 --> 00:40:47,440 Speaker 1: mistakes mean that cases take longer. Thanks so much for 665 00:40:47,560 --> 00:40:51,440 Speaker 1: joining me again, Bob. That's Robert Mints of McCarter and English. 666 00:40:51,800 --> 00:40:54,120 Speaker 1: And that's it for this edition of The Bloomberg Law Show. 667 00:40:54,480 --> 00:40:56,839 Speaker 1: Remember you can always get the latest legal news on 668 00:40:56,880 --> 00:40:59,760 Speaker 1: our Bloomberg Law Podcast. You can find them on Apple 669 00:40:59,760 --> 00:41:04,400 Speaker 1: pod podcast, Spotify, and at www dot bloomberg dot com 670 00:41:04,440 --> 00:41:07,800 Speaker 1: slash podcast slash Law, and remember to tune into The 671 00:41:07,800 --> 00:41:11,799 Speaker 1: Bloomberg Law Show every weeknight at ten pm Wall Street Time. 672 00:41:12,360 --> 00:41:15,080 Speaker 1: I'm June Grosso and you're listening to Bloomberg