WEBVTT - New ICE Strategy at Courthouses

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<v Speaker 1>This is Bloomberg Law with June Grossel from Bloomberg Radio.

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<v Speaker 2>The Trump administration is once again appealing to the Supreme

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<v Speaker 2>Court as it tests the boundaries of the government's power

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<v Speaker 2>to deport migrants. The Department of Homeland Security is asking

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<v Speaker 2>the court to block a judge's order that requires the

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<v Speaker 2>government to give people ten days notice and an opportunity

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<v Speaker 2>to object before they're deported to places other than their

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<v Speaker 2>home countries. Joining me is immigration law expert Leon Fresco,

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<v Speaker 2>a partner at Holland and Knight and the former head

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<v Speaker 2>of the Office of Immigration Litigation in the Obama administration.

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<v Speaker 2>A Massachusetts federal judge ordered the government last month to

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<v Speaker 2>give people ten days notice and an opportunity to object

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<v Speaker 2>before they are sent to a country which is not

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<v Speaker 2>their home country, and he said last week that the

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<v Speaker 2>administration violated his earlier decisions.

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<v Speaker 1>Well, what happened was, this is a case where there

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<v Speaker 1>are a number of foreign nationals who did commit sometimes

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<v Speaker 1>very heinous crimes, and they're from Laos, Vietnam and some

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<v Speaker 1>other places that don't really accept people that the US

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<v Speaker 1>is trying to deport back to those countries. And so

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<v Speaker 1>the US tried to arrange a scenario whereby it could

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<v Speaker 1>deport those people to South Sudan as part of a

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<v Speaker 1>diplomatic arrangement it was having with South Sudan to free

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<v Speaker 1>up some issues because earlier in the year South Sudanese

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<v Speaker 1>people couldn't get visas to travel to the United States,

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<v Speaker 1>and so this was part of a global arrangement where

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<v Speaker 1>that would be thick and that also South Sudan would

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<v Speaker 1>agree to accept people that the United States was trying

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<v Speaker 1>to deport to other countries, not South Sudan. The people

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<v Speaker 1>who were going to be deported to South Sudan heard

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<v Speaker 1>about this and said, well, wait a second, I can't

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<v Speaker 1>be deported to South Sudan. I'm not from there. That's

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<v Speaker 1>very dangerous. It's a country in the middle of a

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<v Speaker 1>civil war. And so they tried to file convention against

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<v Speaker 1>torture claims. There was actually this case filed in the

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<v Speaker 1>District of Massachusetts, which was a habeas claim saying I

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<v Speaker 1>can't be deported without being given the opportunity to have

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<v Speaker 1>an adjudication as to whether the conditions in South Sudan

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<v Speaker 1>are tent amounts to torturing me, because if you just

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<v Speaker 1>drop me off there what am I supposed to do.

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<v Speaker 1>I'm going to start to that because you know, it's

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<v Speaker 1>not a place where you could just go and get

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<v Speaker 1>a job and start working. And so that was the claim.

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<v Speaker 1>And at that time the District Court, at the US government,

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<v Speaker 1>we're arguing about, well, how do you do these claims?

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<v Speaker 1>Can you do them where these people were, which is

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<v Speaker 1>at the moment, they're being detained in Djibouti, a different

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<v Speaker 1>African country where it's just sort of a military operation

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<v Speaker 1>and there's not really this ability to long term have

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<v Speaker 1>these folks there. There was this debate about where do

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<v Speaker 1>these conventions and against torture claims get decided, or do

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<v Speaker 1>you have to bring the people back to the United States.

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<v Speaker 1>The federal government didn't want to bring back the people

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<v Speaker 1>to the United States. It asked that they'd be allowed

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<v Speaker 1>to make these adjudications in Djibouti. The judge said, okay, fine,

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<v Speaker 1>I will let you do that. And then after that

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<v Speaker 1>the government said, no, wait a second, this is way

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<v Speaker 1>too complicated. We actually can't do it in Djibouti. And

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<v Speaker 1>so now the government has gone to the Supreme Court

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<v Speaker 1>and said, just let us do these deportations. The judge

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<v Speaker 1>shouldn't be allowed to prevent us from doing this.

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<v Speaker 2>The Supreme Court has said that the government has to

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<v Speaker 2>give people a reasonable amount of time in order to

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<v Speaker 2>challenge their deportations, but it hasn't spelled out exactly what

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<v Speaker 2>that means, how much time even. But is this situation

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<v Speaker 2>different from the cases that the Supreme Court has dealt

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<v Speaker 2>with because these migrants have already been through the immigration

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<v Speaker 2>system and there are orders of deep against them.

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<v Speaker 1>Correct. The problem is here, these individuals have an order

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<v Speaker 1>of deportation that can be executed at any point to

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<v Speaker 1>their home country, whether it's Llows or Vietnam or whatever,

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<v Speaker 1>and it can also be executed to any other country

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<v Speaker 1>so long as in any of those other countries, there's

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<v Speaker 1>not a likelihood that these individuals will be tortured. And

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<v Speaker 1>so the question is, well, can these individuals make that claim,

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<v Speaker 1>where can they make that claim, When can they make

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<v Speaker 1>that claim, how long do they have to make that claim?

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<v Speaker 1>And does the district court have the ability to interrupt

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<v Speaker 1>that when a person has already been moved outside of

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<v Speaker 1>the United States. And I think that's what the debate

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<v Speaker 1>is going to be, because I think where the federal

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<v Speaker 1>government is concerned is what are we supposed to do

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<v Speaker 1>now that these individuals are in Africa? How do we

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<v Speaker 1>deal with this? Are we going to be forced to

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<v Speaker 1>bring them back to the United States or will be

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<v Speaker 1>forced to actually adjudicate these cases inside of Djibouti, which

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<v Speaker 1>is where the people are now, or can we finalize

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<v Speaker 1>our intentions to deport them to South Sudan? And will

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<v Speaker 1>there just be prophylactic language in the future about what

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<v Speaker 1>is required in the future if they're going to do

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<v Speaker 1>one of these third country deportations. But really we're in

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<v Speaker 1>uncharted territory here, and the Supreme Court is going to

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<v Speaker 1>have to set some standards and some guidelines because if

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<v Speaker 1>the federal government really is focused on these third country deportations,

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<v Speaker 1>then they're going to need to be done in a

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<v Speaker 1>manner that everybody's comfortable with. And the complication with South

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<v Speaker 1>Sudan is just imagine any of us. I mean, if

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<v Speaker 1>any of us get dropped off in South Sudan, what

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<v Speaker 1>do we do next? If there's no food, there's no job.

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<v Speaker 1>You know, if you end up being deported to a

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<v Speaker 1>place where you know that the solution is just the starvation,

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<v Speaker 1>does that end up violating the Convention against torture.

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<v Speaker 2>So how do you think the Supreme Court will approach

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<v Speaker 2>this and how it's handled the other deportation cases.

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<v Speaker 1>The Supreme Court is going to have to decide where

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<v Speaker 1>can these individuals make these claims? Are they allowed to

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<v Speaker 1>make these claims at all? What district court jurisdiction exists here?

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<v Speaker 1>And I don't necessarily think that the Supreme Court, given

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<v Speaker 1>what we've seen so far, is going to be too

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<v Speaker 1>friendly toward this concept of not being able to give

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<v Speaker 1>people an opportunity to make a claim that a deportation

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<v Speaker 1>of sub Sudan is tent amount to torturing.

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<v Speaker 2>That this case is among a growing number of instances

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<v Speaker 2>where judges are finding that the government isn't fully complying

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<v Speaker 2>with court orders having to do with immigration. The Supreme

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<v Speaker 2>Court sort of addressed that peripherally in a case blocking

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<v Speaker 2>the administration from sending more Venezuelans to a Salvador in

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<v Speaker 2>prison by referring to the case of kilmar Arbrigo Garcia,

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<v Speaker 2>who was wrongfully deported as a cautionary tale. But it

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<v Speaker 2>hasn't addressed that issue of not following court orders directly yet.

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<v Speaker 1>Right what the Supreme Court has said is at the moment,

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<v Speaker 1>we're not going to let the Trump administration deport anyone

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<v Speaker 1>else in the future under this Alien Enemies Act, which

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<v Speaker 1>is the law that the Trump administration has wanted to

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<v Speaker 1>use to deport Venezuelan from the trend A Ragua gang

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<v Speaker 1>to El savad or into other places without due process,

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<v Speaker 1>saying they're just members of this gang and that means

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<v Speaker 1>they can be apprehended and deported without seeing a judge.

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<v Speaker 1>And so what the Supreme Court has said, we're putting

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<v Speaker 1>an end to that for the moment, until the lower

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<v Speaker 1>courts can percolate a series of decisions as to a

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<v Speaker 1>what kind of notice is required be, what kind of

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<v Speaker 1>factors can be reviewed by the courts, and see is

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<v Speaker 1>this even constitutional, this usage of the Alien Enemies Act

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<v Speaker 1>in this particular situation. And the Supreme Court will decide

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<v Speaker 1>all of those questions, presumably in one global case, or

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<v Speaker 1>maybe it will break them up unclear. But there's that

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<v Speaker 1>issue with the whole framework of the Alien Enemies Act.

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<v Speaker 1>But now there's this new issue of well, what about

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<v Speaker 1>if someone does have a deportation order already, so we've

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<v Speaker 1>cleared that first step, but now what the issue is

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<v Speaker 1>is you want to send them to a country where

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<v Speaker 1>the country is potentially very dangerous to send that person to.

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<v Speaker 1>You know, you are allowed to send people to a

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<v Speaker 1>third country, but if that third country is dangerous, what

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<v Speaker 1>thoice do we put in this context? And does it

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<v Speaker 1>end up being the exact same as in the context

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<v Speaker 1>of the Alien Enemies Act? Are we going to do

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<v Speaker 1>the same? Are we going to do differently? What are

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<v Speaker 1>we going to do? And so I think again, the

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<v Speaker 1>Supreme Court's going to have to grapple with those issues.

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<v Speaker 2>And I know I've asked you this question several times before,

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<v Speaker 2>but what happened to the case of Ki or Brigo Garcia.

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<v Speaker 1>Well, I mean that case is still pending and the

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<v Speaker 1>district judge is trying to work their way through content

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<v Speaker 1>proceeding to try to figure out again what the government

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<v Speaker 1>is able to do to facilitate mister Abrago Garcia's return

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<v Speaker 1>to the United States. You had a congressman try to

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<v Speaker 1>visit Abrago Garcia, and that Congressman, Glen Ivy, was not

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<v Speaker 1>permitted to see a Brago Garcia. And so now we're

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<v Speaker 1>in the do or die situation where basically the District

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<v Speaker 1>Court is going to have to make some decisions about

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<v Speaker 1>doesn't want to hold the Trump administration in contempt unless

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<v Speaker 1>and until it brings Flabrago Garcia back into the United States.

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<v Speaker 1>And then, of course will the Fourth Circuit agree with

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<v Speaker 1>whatever is decided, and then finally will the Supreme Court

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<v Speaker 1>agree with whatever is decided here. But we start from

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<v Speaker 1>the understanding that the deportation was a mistake, and so

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<v Speaker 1>the question is what happens then, because what the administration

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<v Speaker 1>is saying is, look, if we bring him back, what's

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<v Speaker 1>gonna end up happening is the reason he wasn't deported

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<v Speaker 1>in the first place was because he feared gangs that

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<v Speaker 1>no longer exist in Al Salvador. So we're going to

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<v Speaker 1>win this case anyway. So the question is will there

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<v Speaker 1>be some dispensation given to having a hearing like this

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<v Speaker 1>outside of the United States, or will there be a

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<v Speaker 1>requirement that this individual will be brought back and given

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<v Speaker 1>the same hearing and then presumably removed again outside of

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<v Speaker 1>the United States.

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<v Speaker 2>Okay, stay with me. Leon coming up next on the

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<v Speaker 2>Bloomberg Lawn Show. I'll continue this conversation with immigration law

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<v Speaker 2>expert Leon Fresco. Ice appears to be employing a new

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<v Speaker 2>strategy that it used in arresting a high school student

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<v Speaker 2>in New York City. I'm June Grosso, and you're listening

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<v Speaker 2>to Bloomberg. In immigration courts from New York to Seattle,

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<v Speaker 2>Homeland Security officials are ramping up enforcement actions in what

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<v Speaker 2>appears to be an effort to test out a new

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<v Speaker 2>strategy to speed up deportations. Government attorneys are asking judges

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<v Speaker 2>to dismiss cases against migrants who are there for scheduled

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<v Speaker 2>hearings and then waiting ICE agents arrest the migrants and

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<v Speaker 2>put them in expedited removal proceedings. That's what reportedly happened

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<v Speaker 2>to a New York City high school student from Venezuela

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<v Speaker 2>last week. New York City Mayor Eric Adams, who's allowed

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<v Speaker 2>ICE agents on Rikers Island, said he couldn't get involved

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<v Speaker 2>because New York is a sanctuary city.

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<v Speaker 3>Well, we have to be extremely careful because the New

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<v Speaker 3>York City Council laws. I'm limited on what coination I

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<v Speaker 3>can do, and so sometimes there's a blessing and it's

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<v Speaker 3>a curse.

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<v Speaker 2>I've been talking to immigration law expert Leon Fresco of

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<v Speaker 2>Holland and Knight. Leon, so this Venezuelan high school student

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<v Speaker 2>was in immigration court for a regularly scheduled hearing, and

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<v Speaker 2>after the case against him was dismissed, I say and

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<v Speaker 2>arrested him. His lawyer says, he's here legally seeking asylum,

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<v Speaker 2>but the Trump administration says he's here illegally. And apparently

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<v Speaker 2>this is not an isolated scenario.

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<v Speaker 1>What's happening is this, So the Biden administration had this

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<v Speaker 1>program called the CBP one app parole program, which what

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<v Speaker 1>it said was don't just cross the border illegally. That's

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<v Speaker 1>creating a lot of chaos on the southern border. We

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<v Speaker 1>can't have it. Go to a port of entry, get

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<v Speaker 1>an appointment to go to a port of entry under

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<v Speaker 1>the CBP one app and then if we think that

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<v Speaker 1>you're a legitimate asylum seeker, will parole you into the

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<v Speaker 1>country legally, so you have a legal status while you're

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<v Speaker 1>here trying to get asylum, and you'll go through the

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<v Speaker 1>asylum case. So what's happening now is that the Trump

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<v Speaker 1>administration is saying, for all those people who have been

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<v Speaker 1>led in legally to do an asylum case and immigration court,

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<v Speaker 1>we are going to cancel your legal admission. We're going

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<v Speaker 1>to close that case, and we're going to pretend like

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<v Speaker 1>none of that had happened, and we're going to put

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<v Speaker 1>you in expedited removal, which says that if you are

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<v Speaker 1>here for less than two years and you never had

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<v Speaker 1>a legal basis for coming, you can be removed on

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<v Speaker 1>an expedited basis. But what that requires is for the

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<v Speaker 1>person to be arrested and then they have to have

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<v Speaker 1>a new adjudication as to whether they have a credible

0:13:32.720 --> 0:13:36.640
<v Speaker 1>asylum case, and if they don't, they can immediately be removed.

0:13:36.679 --> 0:13:39.600
<v Speaker 1>But if they do, then they're basically back at square one,

0:13:40.000 --> 0:13:42.520
<v Speaker 1>which is the same immigration court hearing that they were

0:13:42.600 --> 0:13:48.319
<v Speaker 1>arrested at minutes ago. So this bronze student was exactly

0:13:48.440 --> 0:13:51.640
<v Speaker 1>this situation where they were let in legally under the

0:13:51.640 --> 0:13:57.719
<v Speaker 1>CBP one parole app but now they're arrested, placed in

0:13:57.800 --> 0:14:00.720
<v Speaker 1>expedited removal proceedings, and.

0:14:00.640 --> 0:14:03.880
<v Speaker 2>This type of scenario is being played out in immigration

0:14:04.120 --> 0:14:05.600
<v Speaker 2>courts across the country.

0:14:06.200 --> 0:14:09.360
<v Speaker 1>So there's basically three goals of this. Number one is

0:14:10.679 --> 0:14:14.160
<v Speaker 1>maybe twenty twenty five percent of the people that they're

0:14:14.160 --> 0:14:17.200
<v Speaker 1>going to do this too won't actually be able to

0:14:17.240 --> 0:14:20.440
<v Speaker 1>show that they have a credible asylum claim. And so

0:14:20.880 --> 0:14:23.520
<v Speaker 1>with that group, they can just remove them outside of

0:14:23.560 --> 0:14:27.560
<v Speaker 1>the United States, and so that increases the removal number.

0:14:27.680 --> 0:14:31.480
<v Speaker 1>So that's goal number one. Goal number two is to

0:14:31.560 --> 0:14:34.840
<v Speaker 1>the extent people are now scared to go to immigration court.

0:14:35.160 --> 0:14:37.680
<v Speaker 1>When you don't show up the immigration court, you get

0:14:37.680 --> 0:14:40.400
<v Speaker 1>what's called an in absentia of removal order, which is

0:14:40.600 --> 0:14:43.920
<v Speaker 1>you basically lose by default. You get ordered deported and

0:14:44.040 --> 0:14:45.760
<v Speaker 1>that's the end of it. And as long as the

0:14:45.760 --> 0:14:48.200
<v Speaker 1>government can show that you had notice of the hearing,

0:14:48.840 --> 0:14:51.720
<v Speaker 1>then that did you know, Unless there was some earthquake

0:14:51.880 --> 0:14:54.880
<v Speaker 1>or some bridge collapsed or something and that prevented you

0:14:54.880 --> 0:14:57.800
<v Speaker 1>from going to the hearing that day, you're pretty much

0:14:57.840 --> 0:15:00.200
<v Speaker 1>in a bad position there. But the government, and if

0:15:00.200 --> 0:15:03.480
<v Speaker 1>they get these in absent to removal orders, can also

0:15:03.760 --> 0:15:08.560
<v Speaker 1>try to execute those, and that also is easier than

0:15:08.600 --> 0:15:11.560
<v Speaker 1>trying to win a removal order in a hearing. So

0:15:11.800 --> 0:15:14.600
<v Speaker 1>that's the second reason to do this is people stop

0:15:14.680 --> 0:15:17.440
<v Speaker 1>going to court, they get in upsent to removal orders,

0:15:17.440 --> 0:15:20.000
<v Speaker 1>you can deport them more easily. And then the third

0:15:20.080 --> 0:15:23.680
<v Speaker 1>is people will be so afraid about finishing this process

0:15:23.720 --> 0:15:26.640
<v Speaker 1>they'll just take matters into their own hands and go home.

0:15:26.880 --> 0:15:29.160
<v Speaker 1>And so that's really the purpose of this is to

0:15:29.200 --> 0:15:33.720
<v Speaker 1>create this level of fear that people either don't show

0:15:33.800 --> 0:15:35.960
<v Speaker 1>up the court and they get ordered deported or they

0:15:36.000 --> 0:15:38.560
<v Speaker 1>go home. But if they do go to court, they're

0:15:38.560 --> 0:15:40.680
<v Speaker 1>going to get arrested. If you haven't been in this

0:15:40.800 --> 0:15:43.640
<v Speaker 1>country for more than two years, what will happen is

0:15:43.680 --> 0:15:48.200
<v Speaker 1>you will be arrested and put into these expedited removal proceedings.

0:15:48.800 --> 0:15:51.240
<v Speaker 1>And what that will do is for some segment of

0:15:51.280 --> 0:15:56.560
<v Speaker 1>the people, they will be deported immediately. For a larger segment,

0:15:56.640 --> 0:16:00.000
<v Speaker 1>let's say seventy to seventy five percent, they will be

0:16:00.160 --> 0:16:02.520
<v Speaker 1>placed back into the same proceeding they were supposed to

0:16:02.560 --> 0:16:05.880
<v Speaker 1>go to court for that day, but after having been

0:16:06.000 --> 0:16:09.600
<v Speaker 1>arrested and detained and having to pay out a bond,

0:16:10.160 --> 0:16:13.640
<v Speaker 1>and so all of this is very scary and unsettling,

0:16:14.160 --> 0:16:17.600
<v Speaker 1>and that's part of the strategy is to impose those

0:16:17.680 --> 0:16:20.800
<v Speaker 1>kinds of conditions to make it as onderous as possible

0:16:20.800 --> 0:16:23.120
<v Speaker 1>for the people here without status to remain here.

0:16:23.520 --> 0:16:26.080
<v Speaker 2>So then will this student definitely get a hearing.

0:16:26.920 --> 0:16:29.400
<v Speaker 1>Well, so they will first have to show that they

0:16:29.440 --> 0:16:32.720
<v Speaker 1>have a credible asylum playing and of course, because the

0:16:32.760 --> 0:16:35.840
<v Speaker 1>student is from Venezuela, probably will not be that difficult,

0:16:35.840 --> 0:16:39.440
<v Speaker 1>because Venezuela does crack down on political dissidents. If this

0:16:39.520 --> 0:16:44.080
<v Speaker 1>person can show that they had some political oppression in

0:16:44.120 --> 0:16:47.480
<v Speaker 1>the past or they have some political issue, they can

0:16:47.520 --> 0:16:51.600
<v Speaker 1>clear that threshold, and then they'll actually have an asylum hearing,

0:16:51.920 --> 0:16:53.880
<v Speaker 1>which was the whole purpose of why they went to

0:16:53.960 --> 0:16:54.960
<v Speaker 1>court in the first place.

0:16:55.320 --> 0:16:58.600
<v Speaker 2>So now let's turn from high school to college and

0:16:58.720 --> 0:17:01.920
<v Speaker 2>graduate school. There's going to be a hearing this week

0:17:02.240 --> 0:17:05.800
<v Speaker 2>to determine whether a judge should extend a temporary block

0:17:06.320 --> 0:17:10.200
<v Speaker 2>that's keeping the Trump administration from canceling the student visas

0:17:10.520 --> 0:17:15.280
<v Speaker 2>of nearly seven thousand international students at Harvard. This being

0:17:15.359 --> 0:17:18.919
<v Speaker 2>part of Trump's campaign against Harvard tell us about the

0:17:18.960 --> 0:17:19.680
<v Speaker 2>issues here.

0:17:20.080 --> 0:17:24.760
<v Speaker 1>So basically what happened is the Trump administration has been

0:17:24.880 --> 0:17:28.560
<v Speaker 1>trying to get information from Harvard with regard to a

0:17:28.560 --> 0:17:32.040
<v Speaker 1>lot of its practices, but including also the nature of

0:17:32.080 --> 0:17:35.359
<v Speaker 1>its students that are there as foreign students and the

0:17:35.440 --> 0:17:38.920
<v Speaker 1>nature of their conduct. But the issue is that there's

0:17:38.960 --> 0:17:41.560
<v Speaker 1>a normal process where that happens. That it's called the

0:17:41.720 --> 0:17:46.000
<v Speaker 1>every two years recertification, and then there's an application, and

0:17:46.040 --> 0:17:49.359
<v Speaker 1>then if you want to deny the ability for students

0:17:49.400 --> 0:17:51.760
<v Speaker 1>to come. You have to issue an order saying you

0:17:51.800 --> 0:17:56.000
<v Speaker 1>intend to deny re certification, and then there's an opportunity

0:17:56.040 --> 0:18:00.480
<v Speaker 1>to respond, and then there's an appeal and that essentially

0:18:00.520 --> 0:18:02.679
<v Speaker 1>a court case and all of that. And what the

0:18:02.680 --> 0:18:05.480
<v Speaker 1>Trump administration tried to do is to skip all of that.

0:18:06.320 --> 0:18:09.800
<v Speaker 1>And what the court immediately said was you can't do that,

0:18:09.920 --> 0:18:13.680
<v Speaker 1>and you'd a temporary restraining order saying you can't skip

0:18:14.080 --> 0:18:17.000
<v Speaker 1>all of those steps and just take a school out

0:18:17.040 --> 0:18:20.000
<v Speaker 1>of the student an exchange visitor program. And the reason

0:18:20.040 --> 0:18:23.280
<v Speaker 1>you can is because there's a lot of reliance interests involved.

0:18:23.280 --> 0:18:26.439
<v Speaker 1>There's thousands of students. They can't just all go to

0:18:26.560 --> 0:18:30.000
<v Speaker 1>Yale or Stanford or somewhere else because all those schools

0:18:30.000 --> 0:18:34.160
<v Speaker 1>have admissions processes and so you can't just transfer. It's

0:18:34.160 --> 0:18:37.199
<v Speaker 1>not that easy. And if you are one of the

0:18:37.200 --> 0:18:41.000
<v Speaker 1>students who's on a status called OPT, which is called

0:18:41.080 --> 0:18:44.680
<v Speaker 1>optional practical Training, which is something that allows you as

0:18:44.720 --> 0:18:48.159
<v Speaker 1>a student to work after you graduate in the field

0:18:48.200 --> 0:18:51.399
<v Speaker 1>that you graduated from. It allows you to get practical experience,

0:18:51.680 --> 0:18:55.280
<v Speaker 1>then there's nowhere you can transfer because you finished your degree.

0:18:55.640 --> 0:18:57.840
<v Speaker 1>So you could be working, for instance, right now at

0:18:57.880 --> 0:19:01.639
<v Speaker 1>Microsoft or at Google wherever it may be, or even

0:19:01.680 --> 0:19:05.280
<v Speaker 1>at a hospital or you know, doing something medical wherever

0:19:05.320 --> 0:19:08.640
<v Speaker 1>you may be, and if your status gets canceled, then

0:19:08.680 --> 0:19:11.320
<v Speaker 1>that's the end of it. Then you're here illegally. There's

0:19:11.320 --> 0:19:13.760
<v Speaker 1>nothing you can do. You have to go home. And

0:19:13.880 --> 0:19:18.439
<v Speaker 1>so this lawsuit actually, you know, for those people in

0:19:18.520 --> 0:19:23.359
<v Speaker 1>that status, that saves them from falling out of legal status.

0:19:23.400 --> 0:19:26.520
<v Speaker 1>But if that temporary restraining order is lifted, all of

0:19:26.560 --> 0:19:30.320
<v Speaker 1>those people who are in this optional practical training status

0:19:30.520 --> 0:19:33.040
<v Speaker 1>will immediately have to go home. There's going to be

0:19:33.080 --> 0:19:35.920
<v Speaker 1>no way for them to stay legally. They'll have ten

0:19:36.000 --> 0:19:38.520
<v Speaker 1>days to just leave the United States and then from

0:19:38.600 --> 0:19:40.840
<v Speaker 1>abroad to have to figure out if there's some other

0:19:40.920 --> 0:19:44.600
<v Speaker 1>visa program that can take advantage of. Similarly, for the

0:19:44.640 --> 0:19:47.480
<v Speaker 1>students who actually are at Harvard, they're going to have

0:19:47.520 --> 0:19:50.920
<v Speaker 1>to make some decisions regardless, which is do we keep

0:19:51.080 --> 0:19:56.600
<v Speaker 1>having to worry about injunction, go injunction? Yes, injunction lifting

0:19:56.640 --> 0:19:59.280
<v Speaker 1>it and do we want to live under that stress

0:19:59.520 --> 0:20:01.960
<v Speaker 1>or do we want to just transfer to some other

0:20:02.080 --> 0:20:04.679
<v Speaker 1>school or do we just want to leave the United

0:20:04.720 --> 0:20:08.639
<v Speaker 1>States period? Because this is way too stressful, and so

0:20:09.200 --> 0:20:13.000
<v Speaker 1>for a lot of those individuals, I don't imagine they're

0:20:13.000 --> 0:20:14.920
<v Speaker 1>going to want to stay at Harvard and see how

0:20:14.960 --> 0:20:18.720
<v Speaker 1>this ends. And so that creates a very difficult issue

0:20:18.720 --> 0:20:21.879
<v Speaker 1>for Harvard, which is that it's going to lose a

0:20:21.880 --> 0:20:25.000
<v Speaker 1>lot of these students even if it wins its litigation.

0:20:25.359 --> 0:20:30.000
<v Speaker 2>Also, Secretary of State Marco Rubio has ordered US embassies

0:20:30.320 --> 0:20:36.720
<v Speaker 2>worldwide to stop scheduling interviews for student visas because they're

0:20:37.000 --> 0:20:43.360
<v Speaker 2>weighing stricter vetting of applicants social media profiles correct.

0:20:43.400 --> 0:20:48.000
<v Speaker 1>So USCIS had already said this for domestic visa cases,

0:20:48.400 --> 0:20:51.240
<v Speaker 1>and now Secretary of State Rubio is trying to add

0:20:51.280 --> 0:20:56.080
<v Speaker 1>more meat on these bones for foreign student cases to

0:20:56.160 --> 0:20:59.560
<v Speaker 1>give people very specific guidance as to when a visa

0:20:59.600 --> 0:21:03.000
<v Speaker 1>should be denied and when a visa should be approved.

0:21:03.040 --> 0:21:06.760
<v Speaker 1>So at the moment, because that guidance doesn't exist, what

0:21:07.080 --> 0:21:10.240
<v Speaker 1>the Secretary of State said is stop scheduling new appointments

0:21:10.320 --> 0:21:13.600
<v Speaker 1>until we can get this guidance out. Everything I'm told

0:21:13.720 --> 0:21:16.040
<v Speaker 1>is that this will be shortly, so it should be

0:21:16.040 --> 0:21:18.320
<v Speaker 1>a week or two for this guidance to come out.

0:21:18.359 --> 0:21:20.120
<v Speaker 1>It's not going to be something that's going to ban

0:21:20.720 --> 0:21:24.199
<v Speaker 1>all students from coming in forever, but it definitely is

0:21:24.240 --> 0:21:27.359
<v Speaker 1>going to be yet one more very difficult obstacle because

0:21:27.400 --> 0:21:30.800
<v Speaker 1>in a lot of these embassies there's already a backlog

0:21:30.840 --> 0:21:33.679
<v Speaker 1>of appointments and some students never get in. So they

0:21:33.720 --> 0:21:36.800
<v Speaker 1>all need to get their visa appointment and their visa

0:21:36.880 --> 0:21:40.399
<v Speaker 1>by August. If they either can't get an appointment or

0:21:40.600 --> 0:21:43.119
<v Speaker 1>now they can get an appointment, but the problem is

0:21:43.160 --> 0:21:47.960
<v Speaker 1>their case is now taking longer to decide because everybody's

0:21:48.080 --> 0:21:51.400
<v Speaker 1>case now can't be decided at the window. It has

0:21:51.440 --> 0:21:55.320
<v Speaker 1>to be decided after somebody goes and looks through all

0:21:55.359 --> 0:21:59.680
<v Speaker 1>of their social media. Then that's going to be a

0:21:59.720 --> 0:22:02.520
<v Speaker 1>different process which will lead to many more students not

0:22:02.600 --> 0:22:05.080
<v Speaker 1>being able to enter the United States. So what that

0:22:05.240 --> 0:22:08.919
<v Speaker 1>leads to in practice is instead of the normal cycle

0:22:08.960 --> 0:22:11.680
<v Speaker 1>where you get admitted into school in April or May,

0:22:12.160 --> 0:22:14.359
<v Speaker 1>you apply for your visa and you are ready to

0:22:14.359 --> 0:22:17.040
<v Speaker 1>come in in September, it may now be that you

0:22:17.119 --> 0:22:20.360
<v Speaker 1>have to start school in January or maybe even one

0:22:20.480 --> 0:22:25.840
<v Speaker 1>year later in September of the following year, which obviously

0:22:25.920 --> 0:22:29.880
<v Speaker 1>then leads to making America less attractive for foreign students

0:22:29.920 --> 0:22:32.720
<v Speaker 1>to come study, which either is the intent or is

0:22:32.760 --> 0:22:35.240
<v Speaker 1>it I don't know what the intent is here. It

0:22:35.240 --> 0:22:39.440
<v Speaker 1>may also just be to really not have people who

0:22:39.480 --> 0:22:43.359
<v Speaker 1>are putting some very terrible things on their social media

0:22:43.680 --> 0:22:47.040
<v Speaker 1>study in the United States because they're dangerous to the country. So, well,

0:22:47.080 --> 0:22:50.359
<v Speaker 1>that's the way. And see how this is implemented in reality.

0:22:50.400 --> 0:22:53.200
<v Speaker 1>And if in reality what's happening is that the only

0:22:53.240 --> 0:22:56.720
<v Speaker 1>people excluded are people you really wouldn't want to come,

0:22:56.760 --> 0:22:59.920
<v Speaker 1>then you know, then it's a change that is defensible

0:23:00.119 --> 0:23:03.199
<v Speaker 1>and arguable. But if it's really a change that just

0:23:03.320 --> 0:23:07.120
<v Speaker 1>leads to a gridlock so that no one can come

0:23:07.160 --> 0:23:11.159
<v Speaker 1>in the country, even if you're a student from Sweden

0:23:11.640 --> 0:23:15.919
<v Speaker 1>who's here to study electrical engineering or medicine, then that

0:23:16.119 --> 0:23:17.840
<v Speaker 1>becomes a more difficult problem.

0:23:18.080 --> 0:23:21.600
<v Speaker 2>Are there other countries that are popular for students?

0:23:22.560 --> 0:23:26.040
<v Speaker 1>Absolutely so. Students from around the world study in all

0:23:26.119 --> 0:23:29.680
<v Speaker 1>of these countries that you might expect. Canada, they study

0:23:29.720 --> 0:23:33.240
<v Speaker 1>in Australia, they study in New Zealand, they study in

0:23:33.520 --> 0:23:37.320
<v Speaker 1>the United Kingdom, and so every one of these countries.

0:23:37.440 --> 0:23:39.560
<v Speaker 1>It is very interesting. They all go through ebbs and

0:23:39.640 --> 0:23:43.280
<v Speaker 1>flows where they take more students and they take less students.

0:23:43.320 --> 0:23:47.400
<v Speaker 1>They crack down, they loosen up. We've cracked down, We've

0:23:47.440 --> 0:23:50.359
<v Speaker 1>loosened up. Now we're in a sort of crackdown stage again,

0:23:50.840 --> 0:23:54.520
<v Speaker 1>so other countries might loosen up their statuses again. And

0:23:54.560 --> 0:23:57.560
<v Speaker 1>it's very interesting how sort of this happens. So no

0:23:57.680 --> 0:24:03.080
<v Speaker 1>country is linearly they're throw these student visas or against them.

0:24:03.440 --> 0:24:05.800
<v Speaker 1>It's always seems to be an ebb and flow amongst

0:24:05.800 --> 0:24:09.400
<v Speaker 1>all these countries that have universities that bring in foreign students,

0:24:09.440 --> 0:24:13.240
<v Speaker 1>where at some times they're really trying to attract foreign

0:24:13.280 --> 0:24:16.480
<v Speaker 1>students and they say, hey, this is a lot of

0:24:16.480 --> 0:24:18.320
<v Speaker 1>money for our schools and a lot of money for

0:24:18.359 --> 0:24:20.840
<v Speaker 1>our economy, and we're trying to bring in the best

0:24:20.880 --> 0:24:24.160
<v Speaker 1>and brightest, and then at other times they decide, no, no, no, no,

0:24:24.200 --> 0:24:27.760
<v Speaker 1>this is competition for our workers and competition for our

0:24:27.920 --> 0:24:30.680
<v Speaker 1>slots in our schools. So no, in fact, we don't

0:24:30.680 --> 0:24:34.080
<v Speaker 1>want these people. And it's really a back and forth

0:24:34.119 --> 0:24:37.320
<v Speaker 1>that no country has sort of reached the consensus on

0:24:37.359 --> 0:24:39.240
<v Speaker 1>what it thinks of these foreign students.

0:24:39.520 --> 0:24:44.280
<v Speaker 2>Finally found this very interesting. So Scadden Arps was one

0:24:44.320 --> 0:24:47.440
<v Speaker 2>of the law firms who cut a deal with Trump

0:24:47.800 --> 0:24:50.919
<v Speaker 2>to avoid being targeted by him, and they cut one

0:24:50.960 --> 0:24:55.159
<v Speaker 2>hundred million dollar deal to take on causes he supports,

0:24:55.240 --> 0:25:00.479
<v Speaker 2>and what was listed was fighting anti semitism, promoting justice,

0:25:00.560 --> 0:25:05.080
<v Speaker 2>and assisting veterans active military, law enforcement and government officials.

0:25:05.520 --> 0:25:10.160
<v Speaker 2>But now it appears that they're helping an immigrant try

0:25:10.200 --> 0:25:15.080
<v Speaker 2>to avoid removal from the United States, which seems to

0:25:15.119 --> 0:25:19.400
<v Speaker 2>be counter to what the deal was with Trump.

0:25:20.080 --> 0:25:25.359
<v Speaker 1>Well, so here's what's interesting. For many, many years, law

0:25:25.359 --> 0:25:29.280
<v Speaker 1>firms have done these immigration cases for several reasons. Number

0:25:29.320 --> 0:25:32.840
<v Speaker 1>one is that a lot of pro bono cases, big

0:25:32.920 --> 0:25:36.520
<v Speaker 1>law firms can't do them because many times what happens

0:25:36.560 --> 0:25:39.879
<v Speaker 1>is there's conflicts where if you're suing any sort of

0:25:39.920 --> 0:25:43.439
<v Speaker 1>private entity, you'd probably be suing a private entity that

0:25:43.560 --> 0:25:46.280
<v Speaker 1>is either a client or adjacent to a client, and

0:25:46.320 --> 0:25:48.399
<v Speaker 1>so that's very hard. So one of the things you

0:25:48.400 --> 0:25:50.480
<v Speaker 1>can do very easily in a law firm is through

0:25:50.720 --> 0:25:54.439
<v Speaker 1>the government, because the government has its own lawyers, and

0:25:54.520 --> 0:25:58.760
<v Speaker 1>so immigration cases have traditionally been viewed as an area

0:25:58.760 --> 0:26:02.280
<v Speaker 1>where law firms can do work because the other side

0:26:02.320 --> 0:26:04.520
<v Speaker 1>is the government, so they have their own set of lawyers,

0:26:04.520 --> 0:26:09.440
<v Speaker 1>there's no conflict, and also they're discreet enough cases that

0:26:10.040 --> 0:26:13.479
<v Speaker 1>the law firms can do then. But what happens is now,

0:26:13.520 --> 0:26:17.119
<v Speaker 1>if you're in one of these situations where you're theoretically

0:26:17.560 --> 0:26:20.760
<v Speaker 1>running a foul of what the Trump administration has already

0:26:21.080 --> 0:26:24.080
<v Speaker 1>reached the settlement with your law firm to do. Then,

0:26:24.160 --> 0:26:26.720
<v Speaker 1>if you have a pro bono department in your law firm,

0:26:26.960 --> 0:26:29.280
<v Speaker 1>you're going to have to figure out what it is

0:26:29.320 --> 0:26:31.800
<v Speaker 1>you're doing with this kind of work. And if the

0:26:31.800 --> 0:26:34.720
<v Speaker 1>Trump administration says we don't want you doing this work,

0:26:34.960 --> 0:26:37.160
<v Speaker 1>then you're going to have to decide whether you want

0:26:37.160 --> 0:26:39.760
<v Speaker 1>to go where the other law firms are going and

0:26:40.000 --> 0:26:42.320
<v Speaker 1>litigate or what you want to do there. But yes,

0:26:42.480 --> 0:26:46.200
<v Speaker 1>certainly that does create a very complicated issue there.

0:26:46.320 --> 0:26:50.359
<v Speaker 2>Thanks so much as always, Leon, that's Leon Fresco of Honda, Knight,

0:26:51.240 --> 0:26:55.639
<v Speaker 2>Johnson and Johnson's failure to resolve mass toward talent litigation

0:26:55.840 --> 0:26:59.159
<v Speaker 2>through the bankruptcy system was not only a setback for

0:26:59.200 --> 0:27:03.879
<v Speaker 2>the pharmaceutical giant, but also a costly blow for plaintiff's

0:27:03.960 --> 0:27:06.919
<v Speaker 2>lawyers who got behind the effort. Jay and J is

0:27:06.960 --> 0:27:10.600
<v Speaker 2>not appealing the dismissal of its third TALC unit bankruptcy

0:27:11.040 --> 0:27:14.439
<v Speaker 2>and is instead returning to civil court to face about

0:27:14.520 --> 0:27:18.879
<v Speaker 2>sixty thousand lawsuits alleging its baby powder and other consumer

0:27:19.040 --> 0:27:23.399
<v Speaker 2>tel products were tainted with cancer causing asbestos joining me

0:27:23.440 --> 0:27:27.280
<v Speaker 2>is Bloomberg Lawn correspondent Alex Woolf. Alex give us little

0:27:27.280 --> 0:27:31.440
<v Speaker 2>of the flavor of the history of this litigation, so as.

0:27:31.359 --> 0:27:35.560
<v Speaker 4>Jay and Jay tells that they have been the victors

0:27:35.680 --> 0:27:40.560
<v Speaker 4>in much of this calculated litigation over the past decade.

0:27:40.600 --> 0:27:45.639
<v Speaker 4>I believe they won sixteen out of seventeen cases that

0:27:45.680 --> 0:27:49.840
<v Speaker 4>have gone to trial. But in twenty twenty one they

0:27:49.880 --> 0:27:53.879
<v Speaker 4>were hit with a multi billion dollar verdict. The case

0:27:54.280 --> 0:27:59.360
<v Speaker 4>was appealed and the award was dropped slightly, but enough

0:27:59.400 --> 0:28:02.760
<v Speaker 4>to make a large dent in the company at that point.

0:28:02.760 --> 0:28:06.360
<v Speaker 4>In twenty twenty one, the company then began looking at

0:28:06.760 --> 0:28:11.080
<v Speaker 4>alternative ways to address just a mountain of litigations that

0:28:11.280 --> 0:28:15.240
<v Speaker 4>was continuing to grow more and more, sort of as

0:28:15.280 --> 0:28:18.240
<v Speaker 4>each month and year past. These are given with ovarian

0:28:18.280 --> 0:28:23.399
<v Speaker 4>cancer who alleged that the company's baby powder and shower

0:28:23.480 --> 0:28:28.359
<v Speaker 4>to shower products was the cause of their cancer, and

0:28:28.440 --> 0:28:29.240
<v Speaker 4>so Jay and.

0:28:29.320 --> 0:28:33.880
<v Speaker 2>J decided to use this strategy, a bankruptcy strategy that's

0:28:33.920 --> 0:28:36.240
<v Speaker 2>referred to as the Texas two Steps.

0:28:36.280 --> 0:28:39.920
<v Speaker 4>So, beginning of twenty twenty one, they hired a group

0:28:39.920 --> 0:28:42.560
<v Speaker 4>of attorneys from the law firm of Jones Day who

0:28:42.680 --> 0:28:47.840
<v Speaker 4>had sort of pioneered this strategy of taking a large

0:28:47.840 --> 0:28:50.720
<v Speaker 4>corporation that's facing sort of a mountain of mass tort

0:28:50.760 --> 0:28:56.440
<v Speaker 4>litigation and using a Texas state law to separate the

0:28:56.640 --> 0:29:00.920
<v Speaker 4>healthy operating business from its mass tort life abilities and

0:29:00.960 --> 0:29:05.200
<v Speaker 4>then put a new subsidiary housed with all of those

0:29:05.240 --> 0:29:10.480
<v Speaker 4>liabilities into bankruptcy. So Jy and J employed Jones Day

0:29:10.600 --> 0:29:14.800
<v Speaker 4>and did this exact thing in twenty twenty one, starting

0:29:15.480 --> 0:29:18.120
<v Speaker 4>a case first in the Western District of North Carolina

0:29:18.320 --> 0:29:21.200
<v Speaker 4>that then got bumped up to New Jersey where the

0:29:21.200 --> 0:29:24.240
<v Speaker 4>company is based. From there, there there were a number

0:29:24.320 --> 0:29:28.960
<v Speaker 4>of trial and error cases where the courts just sort

0:29:29.000 --> 0:29:31.880
<v Speaker 4>of kept saying, no, you cannot do this. The company

0:29:32.200 --> 0:29:36.240
<v Speaker 4>went back to the group of plaintiffs again and came

0:29:36.320 --> 0:29:39.880
<v Speaker 4>up with another deal. This time it was to bring

0:29:39.920 --> 0:29:42.600
<v Speaker 4>a case in the Southern District of Texas, where the

0:29:42.680 --> 0:29:44.880
<v Speaker 4>law is a little bit different. So this was the

0:29:45.360 --> 0:29:50.040
<v Speaker 4>third case was one in the Houston Bankruptcy Court last ball.

0:29:50.760 --> 0:29:53.320
<v Speaker 2>This was different because J and J approached it in

0:29:53.360 --> 0:29:54.080
<v Speaker 2>a different way.

0:29:55.000 --> 0:29:58.880
<v Speaker 4>In this case, so Jane J's subsidiary, which you know

0:29:59.160 --> 0:30:04.320
<v Speaker 4>is very much controlled by the parent corporation, it reached

0:30:04.360 --> 0:30:08.840
<v Speaker 4>a deal and it conducted a vote sort of before

0:30:08.920 --> 0:30:12.200
<v Speaker 4>the bankruptcy started and said, you know, we have eighty

0:30:12.240 --> 0:30:14.840
<v Speaker 4>three percent I believe of the claimants in this case

0:30:15.600 --> 0:30:20.120
<v Speaker 4>support a plan that we've already negotiated and put together

0:30:21.000 --> 0:30:24.080
<v Speaker 4>neatly for the purpose of filing for bankruptcy, and at

0:30:24.080 --> 0:30:26.320
<v Speaker 4>that point sort of asking the court just sort of

0:30:26.360 --> 0:30:29.560
<v Speaker 4>blessed the work that it had already done outside of

0:30:29.600 --> 0:30:31.720
<v Speaker 4>the bankruptcy.

0:30:31.120 --> 0:30:33.600
<v Speaker 2>Forum and tell us what the judge decided.

0:30:34.320 --> 0:30:35.200
<v Speaker 1>There was a two.

0:30:35.040 --> 0:30:39.880
<v Speaker 4>Week trial this year where there are lots of attorneys

0:30:39.880 --> 0:30:43.520
<v Speaker 4>and experts on caalcul litigation who spoke at the end

0:30:43.520 --> 0:30:47.000
<v Speaker 4>of it all. The judge there said that there were

0:30:47.080 --> 0:30:51.880
<v Speaker 4>problems with some of the voting procedures where you had

0:30:51.960 --> 0:30:55.960
<v Speaker 4>a lot of plaints attorneys who used the power of

0:30:55.960 --> 0:30:59.200
<v Speaker 4>attorneys to vote on behalf of several thousand people, and

0:30:59.200 --> 0:31:02.320
<v Speaker 4>that judge said that that that does not pass muster

0:31:02.400 --> 0:31:06.800
<v Speaker 4>or under the bankruptcy Code. And he also found some

0:31:06.880 --> 0:31:11.120
<v Speaker 4>issues with some of the additional relief that Johnson and

0:31:11.200 --> 0:31:14.800
<v Speaker 4>Johnson wanted through this case, which was providing releases from

0:31:14.840 --> 0:31:22.000
<v Speaker 4>litigation for dozens and dozens of third parties, including retailers

0:31:22.000 --> 0:31:23.160
<v Speaker 4>that sold baby powder.

0:31:24.160 --> 0:31:28.000
<v Speaker 2>So the judge dismisses the bankruptcy and Jay and Jay

0:31:28.200 --> 0:31:31.600
<v Speaker 2>is not going to appeal. It is that surprising, I

0:31:31.600 --> 0:31:33.719
<v Speaker 2>think some people would say, as they were surprised that

0:31:34.240 --> 0:31:36.320
<v Speaker 2>the company was very quick.

0:31:36.080 --> 0:31:40.600
<v Speaker 4>To react to the judges ruling at at the very

0:31:40.680 --> 0:31:43.520
<v Speaker 4>very end of March. They immediately came out and said,

0:31:44.120 --> 0:31:46.440
<v Speaker 4>we are going to return to the civil tourts system.

0:31:46.480 --> 0:31:50.160
<v Speaker 4>We won't pursue this bankruptcy strategy anymore, and we're going

0:31:50.200 --> 0:31:53.560
<v Speaker 4>to go back to the courtroom where we were doing

0:31:53.600 --> 0:31:57.400
<v Speaker 4>a good job and winning cases sort of before we

0:31:57.480 --> 0:31:59.320
<v Speaker 4>even launched the strategy to begin with.

0:32:00.120 --> 0:32:02.800
<v Speaker 2>How many cases are there that the plaintiff's firms now

0:32:02.800 --> 0:32:07.800
<v Speaker 2>have to decide whether to go forward and litigate them?

0:32:08.760 --> 0:32:08.960
<v Speaker 1>Right?

0:32:09.040 --> 0:32:13.160
<v Speaker 4>So what I found interesting was that you know, these

0:32:13.240 --> 0:32:17.800
<v Speaker 4>bankruptcies either and this third one in particular, when it started,

0:32:18.080 --> 0:32:21.880
<v Speaker 4>it put on pause about sixty thousand lawsuits. But when

0:32:21.920 --> 0:32:25.400
<v Speaker 4>it's all said and done, there were ninety three thousand

0:32:25.560 --> 0:32:30.760
<v Speaker 4>I believe bankruptcy claims so port litigation claims against the company.

0:32:30.800 --> 0:32:33.920
<v Speaker 4>So that means that there were another thirty thousand or

0:32:33.960 --> 0:32:36.960
<v Speaker 4>so people that said, you know, I have what would

0:32:37.000 --> 0:32:39.920
<v Speaker 4>be a viable lawsuit against the company. But I just

0:32:39.920 --> 0:32:42.240
<v Speaker 4>haven't filed it yet, but I can assert this claim

0:32:42.240 --> 0:32:45.120
<v Speaker 4>to bankruptcy. So when the bankruptcy is thrown out, you

0:32:45.200 --> 0:32:48.800
<v Speaker 4>then have this these thirty three thousand or so people

0:32:49.960 --> 0:32:52.440
<v Speaker 4>that now must make a choice. You know, do I

0:32:52.520 --> 0:32:54.400
<v Speaker 4>really have a lawsuit that I want to file and

0:32:55.640 --> 0:32:59.000
<v Speaker 4>litigate and pursue and potentially you know, go to trial,

0:32:59.400 --> 0:33:05.440
<v Speaker 4>or or just sort of let it go. In this case,

0:33:06.080 --> 0:33:12.120
<v Speaker 4>many of those claims are held or were represented by

0:33:12.240 --> 0:33:15.880
<v Speaker 4>just a couple of large plaintiffs firms that sort of

0:33:15.920 --> 0:33:20.760
<v Speaker 4>saw an opportunity to settle on mass in a bankruptcy

0:33:20.840 --> 0:33:24.000
<v Speaker 4>setting as opposed to litigating cases or trying to reach

0:33:24.040 --> 0:33:27.000
<v Speaker 4>some sort of settlement outside of the bankruptcy forum.

0:33:27.400 --> 0:33:30.560
<v Speaker 2>I assume most plaintiffs would want to go forward. Isn't

0:33:30.600 --> 0:33:32.600
<v Speaker 2>this on a contingency fee basis?

0:33:33.080 --> 0:33:35.560
<v Speaker 4>I think that it comes down to sort of what

0:33:35.760 --> 0:33:40.040
<v Speaker 4>the retainer agreement say for each law firm and then

0:33:40.080 --> 0:33:43.080
<v Speaker 4>their clients. In this case, I know that there was

0:33:43.160 --> 0:33:46.960
<v Speaker 4>some discussion during the trial over whether or not you know,

0:33:46.960 --> 0:33:50.800
<v Speaker 4>at least one of the firms was only representing clients

0:33:50.840 --> 0:33:55.160
<v Speaker 4>for the purpose of the bankruptcy case. But undoubtedly there

0:33:55.200 --> 0:33:59.640
<v Speaker 4>are several thousand of these claimants that indeed do want

0:33:59.680 --> 0:34:02.600
<v Speaker 4>to suicivil lawsuit, and yes, they are all on a

0:34:02.640 --> 0:34:04.520
<v Speaker 4>contingency basis with these.

0:34:04.360 --> 0:34:08.480
<v Speaker 2>Firms and tell us about the costs of bringing these

0:34:08.520 --> 0:34:09.839
<v Speaker 2>cases for the attorneys.

0:34:10.280 --> 0:34:13.640
<v Speaker 4>So you know, if you're just filing one individual suit,

0:34:15.239 --> 0:34:16.880
<v Speaker 4>it might not seem like all that much. You know,

0:34:16.880 --> 0:34:20.120
<v Speaker 4>a few hundred dollars for filing fees, maybe up to

0:34:20.160 --> 0:34:24.319
<v Speaker 4>one thousand dollars to get all the medical records, you know,

0:34:24.440 --> 0:34:28.799
<v Speaker 4>plus you know, just obviously standards, labor and expenses that

0:34:28.880 --> 0:34:32.719
<v Speaker 4>go with getting a case on file and sort of

0:34:32.719 --> 0:34:35.440
<v Speaker 4>getting getting it in motion to begin with. When you're

0:34:35.440 --> 0:34:37.520
<v Speaker 4>talking about just one case, but it doesn't seem like

0:34:37.560 --> 0:34:40.120
<v Speaker 4>all that much. But when you're talking about thousands of

0:34:40.160 --> 0:34:43.360
<v Speaker 4>cases that these plaintiffs firms didn't prepare to have to

0:34:43.440 --> 0:34:47.080
<v Speaker 4>file in a civil court, that adds up to potentially

0:34:47.080 --> 0:34:48.200
<v Speaker 4>millions of dollars.

0:34:48.640 --> 0:34:50.480
<v Speaker 2>Did the judge find any bad faith?

0:34:51.320 --> 0:34:57.120
<v Speaker 4>The judge did not find that these plaintiffs firms either

0:34:57.320 --> 0:35:01.719
<v Speaker 4>filed claims or pursued on their clients behal in bad faith.

0:35:01.960 --> 0:35:04.680
<v Speaker 4>He just said that they just went about the voting

0:35:04.719 --> 0:35:06.000
<v Speaker 4>process incorrectly.

0:35:06.920 --> 0:35:09.759
<v Speaker 2>So some of these plaintiff's firms. Perhaps all of them

0:35:10.200 --> 0:35:15.680
<v Speaker 2>had to get money from litigation financers to go forward

0:35:15.680 --> 0:35:16.520
<v Speaker 2>with these cases.

0:35:17.440 --> 0:35:22.120
<v Speaker 4>In this case, I don't know exactly how much each

0:35:22.160 --> 0:35:27.279
<v Speaker 4>of these firms involved has borrowed. It would be it

0:35:27.280 --> 0:35:31.400
<v Speaker 4>would stretch the imagination to think that, you know, for instance,

0:35:31.640 --> 0:35:34.400
<v Speaker 4>of one of the lawyers testified that he spent sixty

0:35:34.440 --> 0:35:39.680
<v Speaker 4>eight million dollars marketing the law firm to acquire claimants

0:35:39.680 --> 0:35:42.759
<v Speaker 4>with the purpose of bringing them through bankruptcy. It would

0:35:42.760 --> 0:35:45.960
<v Speaker 4>stretch the imagination that he hasn't borrowed that money to

0:35:45.960 --> 0:35:48.040
<v Speaker 4>begin with, that he could just pay that out of pocket.

0:35:48.400 --> 0:35:54.200
<v Speaker 4>But undoubtedly there are loans that these firms do have

0:35:54.239 --> 0:35:57.280
<v Speaker 4>to pay back which are based on their docative cases

0:35:58.520 --> 0:36:00.760
<v Speaker 4>that they have in in house.

0:36:01.280 --> 0:36:04.440
<v Speaker 2>Some of these were financed, the loans were structured in

0:36:04.480 --> 0:36:06.280
<v Speaker 2>different ways than normally.

0:36:07.080 --> 0:36:07.319
<v Speaker 1>Yeah.

0:36:07.400 --> 0:36:11.960
<v Speaker 4>So so typically, you know, litigation funders that this industry

0:36:11.960 --> 0:36:15.680
<v Speaker 4>that's existed now for you know, some two decades or

0:36:15.680 --> 0:36:20.920
<v Speaker 4>so in the US. UH, they typically have had invested

0:36:21.200 --> 0:36:25.840
<v Speaker 4>money into pursuing commercial cases. You know, maybe maybe you

0:36:25.880 --> 0:36:28.879
<v Speaker 4>know some one large you know, det the company's sort

0:36:28.880 --> 0:36:33.040
<v Speaker 4>of case and only in I believe, you know, the

0:36:33.120 --> 0:36:38.560
<v Speaker 4>last decade or so, uh, did these same investment firms,

0:36:38.600 --> 0:36:44.440
<v Speaker 4>these these litigation funders start looking towards mass torts plaintiff

0:36:44.480 --> 0:36:48.319
<v Speaker 4>sparts for these uh, for these investments as well. And

0:36:48.920 --> 0:36:52.200
<v Speaker 4>it's structured a little bit differently because instead of investing

0:36:52.239 --> 0:36:56.319
<v Speaker 4>in just sort of one single uh civil case, it

0:36:56.360 --> 0:37:02.960
<v Speaker 4>would be a whole dock of cases related to a litigation.

0:37:03.120 --> 0:37:06.879
<v Speaker 4>So you know, it would be like one loan that's

0:37:06.920 --> 0:37:11.000
<v Speaker 4>based upon thousands and thousands of cases.

0:37:11.640 --> 0:37:14.239
<v Speaker 2>Is it possible that some of these firms go out

0:37:14.239 --> 0:37:15.440
<v Speaker 2>of business because of this?

0:37:15.640 --> 0:37:15.840
<v Speaker 4>Or no?

0:37:16.480 --> 0:37:17.600
<v Speaker 2>Might taking it too far?

0:37:18.680 --> 0:37:23.200
<v Speaker 4>That is a good question. I I you know, I truthfully,

0:37:23.200 --> 0:37:29.520
<v Speaker 4>I don't know the answer to that question. I I

0:37:29.520 --> 0:37:33.600
<v Speaker 4>imagine that many of them look towards other funders to

0:37:34.080 --> 0:37:38.640
<v Speaker 4>sort of help them out and refinance. But yeah, you're

0:37:38.719 --> 0:37:41.280
<v Speaker 4>you are getting into the inner workings of an industry

0:37:41.280 --> 0:37:44.239
<v Speaker 4>that is still sort of figuring out sort of just

0:37:44.760 --> 0:37:46.120
<v Speaker 4>how all of this works.

0:37:46.560 --> 0:37:50.440
<v Speaker 2>Okay, this JAY and J case, is it unique as

0:37:50.480 --> 0:37:52.080
<v Speaker 2>far as bankruptcy cases go?

0:37:52.760 --> 0:37:56.320
<v Speaker 4>I think that it is very unique. And the route

0:37:56.320 --> 0:37:59.560
<v Speaker 4>that it's taken, you know, through the civil court and

0:37:59.600 --> 0:38:05.640
<v Speaker 4>then so taking this bite at the apple three times

0:38:05.719 --> 0:38:07.160
<v Speaker 4>in the bankruptcy court.

0:38:07.239 --> 0:38:08.120
<v Speaker 1>That that is.

0:38:09.760 --> 0:38:15.040
<v Speaker 4>That is a very unique pattern. However, it is not

0:38:15.320 --> 0:38:22.799
<v Speaker 4>the first large company I will say, actually, it's not

0:38:22.840 --> 0:38:27.799
<v Speaker 4>the first parent of large parents of a company to

0:38:27.920 --> 0:38:30.800
<v Speaker 4>have its subsidiary thrown out of the bankruptcy while facing

0:38:31.239 --> 0:38:35.920
<v Speaker 4>mass tot litigation. The same thing happened to a a

0:38:36.080 --> 0:38:42.440
<v Speaker 4>unit of three M that manufactured combat ear plug and

0:38:42.640 --> 0:38:46.080
<v Speaker 4>in that case, when the I believe it was a

0:38:46.160 --> 0:38:49.839
<v Speaker 4>court of bankrupcy court in Indiana through its case out, uh,

0:38:50.360 --> 0:38:53.640
<v Speaker 4>it then reads a large settlement with the same group

0:38:53.680 --> 0:38:56.000
<v Speaker 4>of claimants in a civil court.

0:38:56.560 --> 0:38:59.399
<v Speaker 2>Thanks so much Alex for joining me. That's Bloomberg Blog

0:38:59.440 --> 0:39:02.640
<v Speaker 2>correspond Alex Wolf and that's it for this edition of

0:39:02.640 --> 0:39:05.279
<v Speaker 2>The Bloomberg Law Show. Remember you can always get the

0:39:05.360 --> 0:39:08.600
<v Speaker 2>latest legal news on our Bloomberg Law podcasts. You can

0:39:08.600 --> 0:39:12.839
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0:39:17.080 --> 0:39:20.160
<v Speaker 2>tune into The Bloomberg Law Show every weeknight at ten

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<v Speaker 2>to Bloomberg