WEBVTT - Trump Wants Absolute Immunity

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio,

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<v Speaker 1>And did you see today that deranged Jack Smith. He's

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<v Speaker 1>the prosecutor.

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<v Speaker 2>He's a deranged person.

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<v Speaker 1>Wants to take away my rights under the First Amendment,

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<v Speaker 1>wants to take away my right of speaking freely and openly.

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<v Speaker 2>Donald Trump never seems to miss an opportunity to ridicule

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<v Speaker 2>Jack Smith, the Special Council who's bringing charges against the

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<v Speaker 2>former president in two cases into jurisdictions. The trial date

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<v Speaker 2>in DC on charges of trying to overturn the twenty

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<v Speaker 2>twenty election is just five months away, but Trump is

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<v Speaker 2>looking for a pass by arguing he has absolute presidential immunity,

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<v Speaker 2>and his attorneys have asked federal Judge Tanya Chuckkin to

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<v Speaker 2>toss out the indictment. Joining me is former federal prosecutor

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<v Speaker 2>Jessica Romp, a professor at Cardozo Law School. Jessica tell

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<v Speaker 2>us about Trump's claim of presidential immunity.

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<v Speaker 3>So their argument is that Trump enjoys absolute presidential immunity

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<v Speaker 3>from prosecution because he claims that the indictment brought by

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<v Speaker 3>the Special Council related to January sixth is based on

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<v Speaker 3>what they contend are his official acts while president. I

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<v Speaker 3>would submit this is the most significant motion that Trump

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<v Speaker 3>has filed to date in all of the cases that

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<v Speaker 3>are pending against him, and that the court's decisions on

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<v Speaker 3>this motion could establish new law regarding whether a president

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<v Speaker 3>is beyond the reach of the criminal law for acts

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<v Speaker 3>taken while president, even after he leaves office.

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<v Speaker 2>What do you make of his attorney's arguments? They make

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<v Speaker 2>several levels of arguments. Are they convincing well?

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<v Speaker 3>The motion is well written, and unlike some arguments we've

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<v Speaker 3>seen from Trump's counsel and some of the cases brought

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<v Speaker 3>against him, this one is well written, it's well presented,

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<v Speaker 3>and it does present a very important issue of law,

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<v Speaker 3>one that the courts will have to take seriously. No

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<v Speaker 3>court has ever squarely decided the question of whether a

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<v Speaker 3>president enjoys absolute immunity from prosecution at all, because there's

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<v Speaker 3>never been a precedent for criminal charges being filed against

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<v Speaker 3>a former president. But there are two issues that the

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<v Speaker 3>courts will have to address in ruling on the motion.

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<v Speaker 3>The first is whether, in fact presidents do enjoy absolute

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<v Speaker 3>immunity from criminal prosecution for acts taken during the presidency,

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<v Speaker 3>and if they find that there is such a thing

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<v Speaker 3>as absolute immunity for president from criminal prosecution, then they

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<v Speaker 3>would have to apply that doctrine of immunity to the

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<v Speaker 3>facts presented in this case. If the court told that

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<v Speaker 3>there is no absolute immunity for a president from prosecution

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<v Speaker 3>even after they leave office, then they don't necessarily have

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<v Speaker 3>to address this second question of whether or not Trump's

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<v Speaker 3>actions fall within the scope of such immunity if they

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<v Speaker 3>find that there isn't such an unity.

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<v Speaker 2>This motion was just filed last Thursday, so prosecutors haven't

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<v Speaker 2>had time to respond. But what do you envision their

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<v Speaker 2>argument will be against the claims of presidential immunity.

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<v Speaker 3>I imagine what they're going to argue is first that

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<v Speaker 3>the courts should not extend the doctrine it's a judge

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<v Speaker 3>made doctrine of immunity for presidents to the criminal context,

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<v Speaker 3>and we can talk about why. I think they have

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<v Speaker 3>very good arguments that the court should not recognize immunity

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<v Speaker 3>from criminal prosecution for former presidents. But secondarily, they will

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<v Speaker 3>argue that even if the court were to find that

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<v Speaker 3>in some cases a president could enjoy immunity from criminal

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<v Speaker 3>prosecution for actions taken while president, that it would not

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<v Speaker 3>apply to the conduct that is alleged in this case,

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<v Speaker 3>because if the courts were to follow the doctrine they

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<v Speaker 3>have applied in the context of civil suits for damages

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<v Speaker 3>brought against a former president, which asks whether or not

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<v Speaker 3>the conduct in question falls within the outer perimeter of

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<v Speaker 3>the president's official response stability, the Special Council would argue

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<v Speaker 3>that these actions do not fall within that outer perimeter.

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<v Speaker 2>Trump's attorneys say the judge should look at Trump's actions

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<v Speaker 2>on their face to determine if they're official, and also

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<v Speaker 2>that even if they were a mix of official and

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<v Speaker 2>campaign related, they should still be covered by the legal

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<v Speaker 2>shield the immunity. Do you agree with that?

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<v Speaker 3>So, in asking whether or not the actions fall within

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<v Speaker 3>the outer perimeter of the president's official responsibility, one has

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<v Speaker 3>to ask at what level of generality do we look

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<v Speaker 3>at the acts. Trump's attorneys invite the court to look

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<v Speaker 3>at them at a very high level of generality and say,

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<v Speaker 3>these are statements on matters of public concern. In his

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<v Speaker 3>tweets and his public statements, for example, at the rally

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<v Speaker 3>on January sixth, he is communicating with state officials about

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<v Speaker 3>elections and communicating with members of the Department of Justice

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<v Speaker 3>about whether or not the presidential election was conducted consistent

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<v Speaker 3>with law. At that level of generality, it's easy to

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<v Speaker 3>characterize his actions as within the outer perimeter of the

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<v Speaker 3>president functions to take care that the laws of the

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<v Speaker 3>United States are faithfully executed. But when you look at

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<v Speaker 3>a more granular level, and also in context of all

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<v Speaker 3>the actions that are alleged in the indictment taken together,

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<v Speaker 3>it's much easier to characterize them not as being within

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<v Speaker 3>the outer perimeter of Trump's official duties as president, but

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<v Speaker 3>instead as crimes or part of a course of conduct

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<v Speaker 3>that was a conspiracy to overturn the election and obstruct

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<v Speaker 3>the official proceedings of Congress and defraud the United States,

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<v Speaker 3>as alleged in the indictment. And so the case law

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<v Speaker 3>does hold that the court should not look into the

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<v Speaker 3>motives behind a particular action and instead look at the

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<v Speaker 3>acts objectively and whether or not they further a presidential function.

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<v Speaker 3>But saying that the court should not look at motives

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<v Speaker 3>does not mean that the court can't look at the

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<v Speaker 3>statements and the actions in context.

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<v Speaker 2>Trump's attorneys also point to his acquittal in the Senate

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<v Speaker 2>impeachment trial in the days after the January sixth attack

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<v Speaker 2>and argue that he can't be tried again after the

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<v Speaker 2>Senate failed to convict and remove him from office.

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<v Speaker 3>I do not think the court will agree with that analysis.

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<v Speaker 3>The language that they point to has to do with

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<v Speaker 3>I think the court would find whether a president could

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<v Speaker 3>be indicted and prosecuted while in office, and if one

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<v Speaker 3>goes back and considers, for example, the analysis in the

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<v Speaker 3>Office of Legal Council memo that was prepared initially in

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<v Speaker 3>nineteen seventy three during the Watergate era, which looked into

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<v Speaker 3>whether or not a sitting president could be subject to

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<v Speaker 3>prosecution while in office. That memo, which was then reaffirmed

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<v Speaker 3>in two thousand by the Office of Legal Council, essentially

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<v Speaker 3>held that because of separation of powers concerned primarily, a

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<v Speaker 3>sitting president could not be prosecuted, but instead would have

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<v Speaker 3>to be subject to impeachment first and removed from office

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<v Speaker 3>before the president would be amenable to criminal prosecution. What

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<v Speaker 3>Trump's lawyers are doing, in effect, is taking that same

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<v Speaker 3>language that provides for the impeachment of a president and

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<v Speaker 3>then contemplates that a president could be criminally prosecuted after

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<v Speaker 3>being removed from office to say that the exclusive remedy

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<v Speaker 3>for a president who commits crimes while in office is

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<v Speaker 3>to be impeached, and that a criminal prosecution could only

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<v Speaker 3>follow as an additional consequence if the president had been

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<v Speaker 3>in fact convicted in the Senate. I think that's not

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<v Speaker 3>a fair reading of that language, and I don't think

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<v Speaker 3>a court would agree with it.

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<v Speaker 2>Has Judge Chuckkin ruled on an issue involving presidential immunity before.

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<v Speaker 3>She has in a different context. It was a case,

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<v Speaker 3>I believe, involving former President Obama who had been sued

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<v Speaker 3>by individuals. She held that he enjoyed absolute immunity from

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<v Speaker 3>that civil action against him in his individual capacity. She

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<v Speaker 3>has not ruled on a question of immunity from criminal prosecution.

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<v Speaker 3>In a case that presents many of the same facts

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<v Speaker 3>in the civil context. Judge Meta from the DC District

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<v Speaker 3>Court ruled that former President Trump did not enjoy absolute

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<v Speaker 3>immunity from civil prosecution with respect to many of the

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<v Speaker 3>claims in a case that was brought by members of

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<v Speaker 3>Congress and members of the Capitol Police who were injured

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<v Speaker 3>in the January sixth ryot. That case is pending before

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<v Speaker 3>the DC Circuit Court of Appeals. It's been pending since December,

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<v Speaker 3>and that case I think will be very instructive to

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<v Speaker 3>Judge Chutkin in ruling on whether or not if she

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<v Speaker 3>gets to the question of whether much of the conduct

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<v Speaker 3>alleged in the Special Council of January sixth indictment falls

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<v Speaker 3>within the outer perimeter of his official responsibilities. If the

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<v Speaker 3>DC Circuit renders an opinion holding that it does not

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<v Speaker 3>fall within the outer perimeter, that would be very instructive

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<v Speaker 3>to her if she gets to that problem. Obviously, in

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<v Speaker 3>the meantime, she may also find persuasive the ruling of

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<v Speaker 3>her fellow judge on her court Dutch Meta that these

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<v Speaker 3>actions largely did not fall within that outer perimeter.

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<v Speaker 2>Tump is the first former president to face a federal indictment.

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<v Speaker 2>So this is uncharted territory. What has the Supreme Court

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<v Speaker 2>ruled in the past in the area of presidential immunity?

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<v Speaker 3>So the Supreme Court has ruled on presidential immunity in

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<v Speaker 3>the context of damages, actions and civil suits. In the

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<v Speaker 3>most important cases a case called Nixon versus Fitzgerald, in

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<v Speaker 3>which the Court said there is a doctrine of absolute

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<v Speaker 3>presidential immunity that shields the president even after he leaves office,

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<v Speaker 3>from damage's actions brought by individuals for actions taken within

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<v Speaker 3>the outer perimeter of the president's official responsibilities. The court

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<v Speaker 3>in that case drew on precedents from the con text

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<v Speaker 3>of other executive officials, such as prosecutors, but it also

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<v Speaker 3>looked to immunity doctrine that court had developed in the

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<v Speaker 3>context of judges, other officials whom the court said would

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<v Speaker 3>if they were not provided immunity, would be potentially subject

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<v Speaker 3>to damages suits brought by aggrieved individuals who would contend

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<v Speaker 3>that these officials had, in the course of their duties

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<v Speaker 3>injured them and that they were entitled to damages. And

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<v Speaker 3>those cases that recognized absolute immunity for prosecutors and judges

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<v Speaker 3>that essentially, if we don't adopt this doctrine, these individuals

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<v Speaker 3>who perform these very public and important duties will be

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<v Speaker 3>distracted and concerned as they perform their duties about the

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<v Speaker 3>potential of being subject to innumerable suits. And so essentially

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<v Speaker 3>we have to balance the potential interest that some civil

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<v Speaker 3>litigants would have in collecting damages against such individuals rightfully

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<v Speaker 3>against the public interest in preserving the ability of these

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<v Speaker 3>officials to do their jobs in the public interest without

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<v Speaker 3>being overly concerned about being subject to suit in the future.

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<v Speaker 3>And the Court recognized that there's obviously a loss in

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<v Speaker 3>some cases for people who would have meritorious claims, but

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<v Speaker 3>that it was counterbalanced by the public interest in having

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<v Speaker 3>these officials be able to perform their duties without such

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<v Speaker 3>concerns and distractions, And so in Nixon versus Fitzgerald, the

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<v Speaker 3>Court said, essentially, we're going to adopt that reasoning which

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<v Speaker 3>applies with great force to the president of the United States, who,

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<v Speaker 3>in addition, as to whom there's real separation of powers

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<v Speaker 3>concerns if the courts were to intrude upon the executive's

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<v Speaker 3>ability to perform his functions as president. But the Court

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<v Speaker 3>again in Nixon versus Fitzgerald, talked about how those cases

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<v Speaker 3>did not opine on the availability of criminal prosecution, and

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<v Speaker 3>in fact, in Nixon versus Fitzgerald, the Court was very

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<v Speaker 3>clear to say, and it has said in subsequent cases

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<v Speaker 3>on the question of absolute presidential immunity, that those cases

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<v Speaker 3>are limited to the question of civil damages in civil

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<v Speaker 3>suits brought by private parties. So I think there's a

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<v Speaker 3>very strong argument to be made that the Court would

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<v Speaker 3>not extend that doctrine of immunity to criminal prosecution.

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<v Speaker 2>What about the case of Trump the Vance where the

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<v Speaker 2>Supreme Court ruled on the Manhattan DA's grand jury subpoena

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<v Speaker 2>to Mazar's Trump's accounting firm.

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<v Speaker 3>I think that's instructive as well, and that builds on

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<v Speaker 3>this idea that the Court sees a distinction between criminal cases,

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<v Speaker 3>including investigations and prosecutions, and civil lawsuits. In the Trump

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<v Speaker 3>Vivance case, I mean that involved the subpoena from a

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<v Speaker 3>state grand jury seeking documents from Trump while he was president,

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<v Speaker 3>and he asserted absolute immunity and that he shouldn't have

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<v Speaker 3>to respond to that state grand jury subpoena, and the

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<v Speaker 3>Court said, the public interest in criminal investigations is really paramount.

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<v Speaker 3>It's a similar interest that the Court talked about in

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<v Speaker 3>the United States versus Nixon when President Nixon as president

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<v Speaker 3>was ordered to comply with a subpoena from the grand

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<v Speaker 3>jury working with the Special prosecutor Archibald Cox, seeking evidence

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<v Speaker 3>in the grand jury's investigation related to Watergate. So in

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<v Speaker 3>both cases, the Court has talked about, essentially the paramount

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<v Speaker 3>public interest in criminal prosecutions and investigations, and how that

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<v Speaker 3>is really quite distinct from the private interests involved in

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<v Speaker 3>civil lawsuits against the former president or president.

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<v Speaker 2>So Trump is all about delay with these cases, and

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<v Speaker 2>his lawyer said they'll try to take this to the

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<v Speaker 2>Supreme Court if they lose at the DC's Circuit rulings

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<v Speaker 2>denying motions to dismiss an indictment normally wouldn't be appealable

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<v Speaker 2>until after a verdict, right, But is this different?

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<v Speaker 3>This is different. And that's one of the reasons why

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<v Speaker 3>I think this motion is so significant, not just on

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<v Speaker 3>the merits and for the new law that it could

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<v Speaker 3>estound Bush once it's decided, but for the fact that

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<v Speaker 3>the motion, because of its nature, and the fact that

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<v Speaker 3>I think it is going to be deemed immediately appealable

0:14:07.600 --> 0:14:11.520
<v Speaker 3>because of the so called collateral order doctrine, could derail

0:14:11.640 --> 0:14:15.760
<v Speaker 3>the trial simply by going through the appellate process, and

0:14:15.800 --> 0:14:18.559
<v Speaker 3>the time it will take for the matter to be decided,

0:14:18.920 --> 0:14:21.640
<v Speaker 3>and how that may well go beyond the March twenty

0:14:21.720 --> 0:14:24.960
<v Speaker 3>twenty four trial date that's been established under the collateral

0:14:25.120 --> 0:14:29.320
<v Speaker 3>ordered doctrine, a decision by a court that can't be

0:14:29.360 --> 0:14:33.120
<v Speaker 3>effectively reviewed on appeal from a final judgment that involves

0:14:33.160 --> 0:14:35.920
<v Speaker 3>an important issue that separate from the merits of the action,

0:14:36.400 --> 0:14:41.240
<v Speaker 3>can be appealed before the action is fully resolved. And

0:14:41.320 --> 0:14:44.000
<v Speaker 3>I think that the claim that the former president is

0:14:44.040 --> 0:14:47.680
<v Speaker 3>advancing that he's entitled to absolute presidential immunity from prosecution

0:14:48.120 --> 0:14:51.360
<v Speaker 3>would meet that standard. It's independent from the merits of

0:14:51.400 --> 0:14:54.160
<v Speaker 3>the case and whether or not he's guilty of the charges.

0:14:54.640 --> 0:14:58.120
<v Speaker 3>And if he were right that he enjoys absolute immunity

0:14:58.120 --> 0:15:03.360
<v Speaker 3>from prosecution, that interest wouldn't be vindicated by being resolved

0:15:03.680 --> 0:15:06.800
<v Speaker 3>after a conviction. If there were a conviction, he's effectively

0:15:06.880 --> 0:15:09.600
<v Speaker 3>arguing I shouldn't even have to stand trial. And so

0:15:09.720 --> 0:15:11.520
<v Speaker 3>I think that there is a very good chance that

0:15:11.560 --> 0:15:15.040
<v Speaker 3>the appellate courts will here that issue before any trial.

0:15:15.600 --> 0:15:17.960
<v Speaker 2>Jessica, if you look at this and we don't have

0:15:18.040 --> 0:15:21.520
<v Speaker 2>the prosecutions brief yet, would you say that it's an

0:15:21.600 --> 0:15:23.080
<v Speaker 2>uphill battle for Trump.

0:15:23.640 --> 0:15:26.680
<v Speaker 3>I expect that the trial court and the DC Circuit

0:15:26.720 --> 0:15:29.600
<v Speaker 3>will rule against Trump. But when it gets to the

0:15:29.720 --> 0:15:32.600
<v Speaker 3>US Supreme Court, and I do anticipate the Supreme Court

0:15:32.640 --> 0:15:36.520
<v Speaker 3>would take this case, then it's a much harder outcome

0:15:36.560 --> 0:15:39.600
<v Speaker 3>to predict. I think on the merits that the Supreme

0:15:39.640 --> 0:15:43.320
<v Speaker 3>Court should rule against him, including on this threshold issue

0:15:43.320 --> 0:15:46.560
<v Speaker 3>of whether or not the doctrine of absolute presidential immunity

0:15:47.080 --> 0:15:52.000
<v Speaker 3>extends to criminal prosecutions. But it's hard to predict how

0:15:52.040 --> 0:15:54.800
<v Speaker 3>this Supreme Court will rule. And if they get to

0:15:54.880 --> 0:15:57.440
<v Speaker 3>the second question, which is whether or not these acts

0:15:57.480 --> 0:16:02.200
<v Speaker 3>fall within the outer perimeter of the presidential functions and duties,

0:16:02.640 --> 0:16:05.120
<v Speaker 3>then again it's going to turn on how the Court

0:16:05.200 --> 0:16:09.200
<v Speaker 3>chooses to characterize the acts at what level of generality,

0:16:09.520 --> 0:16:12.360
<v Speaker 3>and whether they look at them collectively and in context

0:16:12.600 --> 0:16:17.120
<v Speaker 3>or essentially separate them out individually the way the former

0:16:17.160 --> 0:16:21.120
<v Speaker 3>president has invited them to. I also think that there's

0:16:21.160 --> 0:16:24.840
<v Speaker 3>a sort of a larger context here that may influence

0:16:24.880 --> 0:16:28.840
<v Speaker 3>how the Court perceives the consequences of its ruling decisions

0:16:28.880 --> 0:16:33.560
<v Speaker 3>about recognizing immunity, and to what extent do require courts

0:16:33.560 --> 0:16:36.600
<v Speaker 3>to consider the consequences of ruling one way or the

0:16:36.760 --> 0:16:39.640
<v Speaker 3>other explicitly in terms of thinking about the impact on

0:16:39.680 --> 0:16:42.400
<v Speaker 3>the public interest and seeing certain kinds of cases proceed,

0:16:42.680 --> 0:16:46.480
<v Speaker 3>and also the impact on the president's ability to carry

0:16:46.480 --> 0:16:49.920
<v Speaker 3>out their functions without being overly concerned about the consequences

0:16:49.960 --> 0:16:53.640
<v Speaker 3>down the road. In terms of lawsuits or prosecutions. Here

0:16:53.720 --> 0:16:56.880
<v Speaker 3>we have an individual, the former president who's the charge

0:16:56.920 --> 0:17:00.120
<v Speaker 3>defendant in this case, who says that he should not

0:17:00.240 --> 0:17:04.520
<v Speaker 3>be subject to prosecution in part because of the impact

0:17:04.600 --> 0:17:07.960
<v Speaker 3>on future presidents and thinking about their ability to carry

0:17:08.000 --> 0:17:10.800
<v Speaker 3>out their duties without being distracted by worries that they

0:17:10.880 --> 0:17:14.679
<v Speaker 3>themselves would be hauled into court subsequently and charge. And

0:17:14.960 --> 0:17:17.920
<v Speaker 3>he is running for president and saying on the campaign

0:17:17.960 --> 0:17:20.840
<v Speaker 3>trail that if re elected, he would direct his attorney

0:17:20.880 --> 0:17:26.040
<v Speaker 3>general to prosecute his political enemies, including now President Biden.

0:17:26.440 --> 0:17:28.359
<v Speaker 3>And so I do think that the part of the

0:17:28.440 --> 0:17:31.399
<v Speaker 3>mix and the court evaluating the consequences of its ruling

0:17:31.440 --> 0:17:34.240
<v Speaker 3>would be if they do rule that a former president

0:17:34.320 --> 0:17:38.320
<v Speaker 3>can be subject to criminal prosecution while acts while president,

0:17:38.920 --> 0:17:43.159
<v Speaker 3>will that mean that we would subsequently see future prosecutions

0:17:43.160 --> 0:17:45.560
<v Speaker 3>of former presidents sort of ramp up in the way

0:17:45.560 --> 0:17:48.160
<v Speaker 3>that we are seeing essentially an escalation in the threat

0:17:48.200 --> 0:17:50.240
<v Speaker 3>of impeachment for presidents while in office.

0:17:50.440 --> 0:17:52.920
<v Speaker 2>Yeah, that's an interesting point. I want to ask you

0:17:53.000 --> 0:17:56.439
<v Speaker 2>about it hearing next week on the prosecution's motion for

0:17:56.720 --> 0:17:59.680
<v Speaker 2>a gag order on Trump. What are the things that

0:18:00.280 --> 0:18:02.840
<v Speaker 2>hast away when considering a gag order.

0:18:03.520 --> 0:18:08.800
<v Speaker 3>The judge is going to be mindful of the prohibition

0:18:09.000 --> 0:18:14.160
<v Speaker 3>essentially on imposing a prior restraint on an individual from

0:18:14.160 --> 0:18:17.680
<v Speaker 3>exercising their First Amendment rights of freedom of speech. In

0:18:17.720 --> 0:18:21.159
<v Speaker 3>this case, the individual involved also is running for presidents,

0:18:21.200 --> 0:18:25.399
<v Speaker 3>so he has contended that his speech about the case

0:18:25.840 --> 0:18:30.119
<v Speaker 3>overlaps with his political speech and furtherance of his candidacy.

0:18:30.520 --> 0:18:32.919
<v Speaker 3>So on the one hand, the judge is going to

0:18:32.960 --> 0:18:36.119
<v Speaker 3>be very careful not to run a foul of the

0:18:36.119 --> 0:18:40.800
<v Speaker 3>former president's First Amendment rights, and courts have generally been

0:18:41.119 --> 0:18:45.679
<v Speaker 3>very hesitant about any order that in advance restrains an

0:18:45.680 --> 0:18:49.560
<v Speaker 3>individual from exercising their First Amendment rights. On the other hand,

0:18:49.720 --> 0:18:52.720
<v Speaker 3>the judge has a duty and is authorized by law

0:18:52.800 --> 0:18:58.679
<v Speaker 3>to take appropriate action to preserve the fair administration of justice.

0:18:58.800 --> 0:19:02.760
<v Speaker 3>And there are local court rules that effectively mirror the

0:19:02.840 --> 0:19:07.399
<v Speaker 3>rules of professional conduct that tell lawyers that they shall

0:19:07.440 --> 0:19:11.600
<v Speaker 3>not make statements extra judicially outside of court that pose

0:19:11.840 --> 0:19:16.119
<v Speaker 3>a material risk of materially prejudicing a preceding. And so

0:19:16.240 --> 0:19:19.000
<v Speaker 3>the question before the judge with respect to the former

0:19:19.040 --> 0:19:21.920
<v Speaker 3>president is to what extent can she impose an order

0:19:22.280 --> 0:19:25.160
<v Speaker 3>on him as a party as opposed to a lawyer

0:19:25.760 --> 0:19:29.480
<v Speaker 3>to try to ensure that he does not materially prejudice

0:19:29.680 --> 0:19:33.000
<v Speaker 3>that proceeding that is unfolding before her and will eventually

0:19:33.600 --> 0:19:37.119
<v Speaker 3>lead to a trial. So she has to balance those concerns,

0:19:37.359 --> 0:19:39.520
<v Speaker 3>and one of the things she'll be taking into account

0:19:39.640 --> 0:19:42.320
<v Speaker 3>is the record of his statements up until this point

0:19:42.600 --> 0:19:46.840
<v Speaker 3>that pose the risk of materially prejudicing the preceding, including

0:19:46.880 --> 0:19:50.000
<v Speaker 3>by intimidating witnesses. And so she's going to be looking,

0:19:50.040 --> 0:19:52.600
<v Speaker 3>I think, very carefully at the record of his statements

0:19:52.640 --> 0:19:55.240
<v Speaker 3>up until this point, whether they appear to have crossed

0:19:55.240 --> 0:19:57.480
<v Speaker 3>that line or not, which and if they have, then

0:19:57.480 --> 0:20:00.240
<v Speaker 3>she's on a much firmer footing and restraining him. Oh,

0:20:00.280 --> 0:20:03.480
<v Speaker 3>whether they don't come close to that line, in which

0:20:03.520 --> 0:20:05.879
<v Speaker 3>case perhaps it would not be warranted for hitting her

0:20:06.040 --> 0:20:07.560
<v Speaker 3>pose restraint on it.

0:20:07.560 --> 0:20:10.000
<v Speaker 2>It'll be interesting to see if she follows in the

0:20:10.000 --> 0:20:13.479
<v Speaker 2>footsteps of the New York judge who issued a limited

0:20:13.520 --> 0:20:16.960
<v Speaker 2>gag order last week. Thanks so much for your insights, Jessica.

0:20:17.160 --> 0:20:21.480
<v Speaker 2>That's Professor Jessica Roth of Cardozo Law School. Coming up next,

0:20:21.720 --> 0:20:25.760
<v Speaker 2>the star witness testifies against Sam Bankman Freed. This is Bloomberg.

0:20:26.080 --> 0:20:29.480
<v Speaker 2>Caroline Ellison took the witness stand this afternoon and within

0:20:29.600 --> 0:20:33.440
<v Speaker 2>minutes pointed to her former boss and boyfriend, Sam Bankman

0:20:33.520 --> 0:20:37.080
<v Speaker 2>Freed as the man responsible for the loss of billions

0:20:37.080 --> 0:20:42.560
<v Speaker 2>in customer funds and the collapse of the cryptocurrency platform FTX. Ellison,

0:20:42.600 --> 0:20:45.720
<v Speaker 2>who made a deal with prosecutors in exchange for her testimony,

0:20:45.920 --> 0:20:49.760
<v Speaker 2>portrayed Bankman Freed as the brains behind the company operation,

0:20:50.080 --> 0:20:54.280
<v Speaker 2>who knowingly transferred more than fourteen billion dollars of FTX

0:20:54.400 --> 0:20:57.960
<v Speaker 2>customer funds to the sister Hedge fund, directed her to

0:20:58.040 --> 0:21:02.440
<v Speaker 2>ignore concerns about auditors, and inflated Alameda's balance sheet to

0:21:02.520 --> 0:21:06.400
<v Speaker 2>secure loans. Joining me is Bloomberg Legal reporter Ava. Benny Morrison,

0:21:06.440 --> 0:21:09.240
<v Speaker 2>who's covering the trial, set the scene for us. Ava.

0:21:09.359 --> 0:21:12.119
<v Speaker 2>What was it like when Ellison walked into the courtroom?

0:21:12.480 --> 0:21:16.560
<v Speaker 4>Caroline Ellison walked in this afternoon. She was with a

0:21:16.600 --> 0:21:19.680
<v Speaker 4>couple of FBI agents. She was wearing a gray suit

0:21:19.800 --> 0:21:21.920
<v Speaker 4>jacket in a pink dress. She didn't look at Sam

0:21:21.960 --> 0:21:24.600
<v Speaker 4>when she walked past him and took a seat in

0:21:24.680 --> 0:21:28.000
<v Speaker 4>the witness box. Sam just briefly glanced at her as

0:21:28.040 --> 0:21:30.480
<v Speaker 4>she walked past. There was a moment where she was

0:21:30.520 --> 0:21:32.680
<v Speaker 4>asked to point out Sam, and she took quite a

0:21:32.720 --> 0:21:34.960
<v Speaker 4>long time to figure out where he was sitting in

0:21:35.000 --> 0:21:37.879
<v Speaker 4>the courtroom and then acknowledged that he's sitting there. He

0:21:37.960 --> 0:21:41.520
<v Speaker 4>was wearing a suit before getting into her testimony.

0:21:41.400 --> 0:21:44.159
<v Speaker 2>And right off the bat, she admitted to crimes just

0:21:44.200 --> 0:21:45.600
<v Speaker 2>as the prior witness.

0:21:45.240 --> 0:21:47.919
<v Speaker 4>Had done exactly, and I think the prosecutors do that

0:21:48.119 --> 0:21:52.040
<v Speaker 4>to be open and upfront with the jewelry that these

0:21:52.040 --> 0:21:55.600
<v Speaker 4>corporating witnesses have pled guilty to crimes. They've admitted to

0:21:56.160 --> 0:21:59.320
<v Speaker 4>being involved with some of the allegations that Sam Bacon

0:21:59.359 --> 0:22:02.400
<v Speaker 4>Freed is used of as well. So she said, yes,

0:22:02.560 --> 0:22:05.359
<v Speaker 4>he directed me to commit crimes. She said that she

0:22:05.440 --> 0:22:09.720
<v Speaker 4>committed fraud and she was involved in using STX customer

0:22:09.760 --> 0:22:13.399
<v Speaker 4>funds through a hedge fund which was CEO of before

0:22:13.400 --> 0:22:16.359
<v Speaker 4>it collapsed, Almeter Research, and she knew that some of

0:22:16.359 --> 0:22:19.879
<v Speaker 4>those funds were being used to repay creditors. She also

0:22:19.960 --> 0:22:25.080
<v Speaker 4>spoke about how some financial statements were manipulated, essentially given

0:22:25.119 --> 0:22:28.960
<v Speaker 4>to investors, which helped Bankment Free raise more money as

0:22:29.160 --> 0:22:31.200
<v Speaker 4>FTX was in real financial trouble.

0:22:31.640 --> 0:22:35.360
<v Speaker 2>Did she blame bankman Freed for everything? Did she take

0:22:35.400 --> 0:22:36.560
<v Speaker 2>any responsibility?

0:22:37.240 --> 0:22:40.320
<v Speaker 4>She did? She spoke about how she came to know

0:22:40.600 --> 0:22:45.439
<v Speaker 4>Alameda had these special privileges on FTX, and she spoke

0:22:45.560 --> 0:22:50.600
<v Speaker 4>about outlining the probability of Alameter being unable to pay

0:22:51.000 --> 0:22:54.119
<v Speaker 4>some of its loans back to creditors and returning some

0:22:54.200 --> 0:22:57.360
<v Speaker 4>of those customer funds to FGX a couple of years

0:22:58.000 --> 0:23:01.680
<v Speaker 4>or at least a year before FtF collapsed. So, while

0:23:01.720 --> 0:23:05.119
<v Speaker 4>she was alleging that Sam was fully aware that Alameda

0:23:05.240 --> 0:23:08.560
<v Speaker 4>had this relationship with FTX, and that she had conversations

0:23:08.560 --> 0:23:11.680
<v Speaker 4>with him about it and they discussed figures and went

0:23:11.720 --> 0:23:15.040
<v Speaker 4>through spreadsheets together, she seemed to be pretty open and

0:23:15.160 --> 0:23:18.119
<v Speaker 4>detailed about her own involvement in all of this as well.

0:23:18.440 --> 0:23:21.520
<v Speaker 4>She spoke quite confidently, She was very matter of fact.

0:23:22.080 --> 0:23:25.880
<v Speaker 4>She answered each question in a very detailed way.

0:23:26.480 --> 0:23:29.439
<v Speaker 2>Was Sam Bagmunfreed the person who was directing her at

0:23:29.480 --> 0:23:31.960
<v Speaker 2>all times? According to her testimony.

0:23:31.840 --> 0:23:34.320
<v Speaker 4>Yes, she said a number of times that Sam told

0:23:34.359 --> 0:23:37.240
<v Speaker 4>her to do X or Sam directed her to do Y.

0:23:37.880 --> 0:23:40.640
<v Speaker 4>Was very clear from her testimony that she was alleging

0:23:40.720 --> 0:23:44.960
<v Speaker 4>he was the brains of the operation and called the

0:23:45.000 --> 0:23:47.760
<v Speaker 4>shots on what she should be doing. She also said

0:23:47.800 --> 0:23:51.359
<v Speaker 4>that you know, Sam wasn't CEO when she's CEO of

0:23:51.440 --> 0:23:54.919
<v Speaker 4>Elament Research. She often turned to him for advice and

0:23:55.000 --> 0:23:57.240
<v Speaker 4>guidance on making big decisions.

0:23:57.320 --> 0:23:59.400
<v Speaker 2>And how did she describe their relationship.

0:23:59.640 --> 0:24:01.720
<v Speaker 4>She said when she first met Sam when she was

0:24:01.760 --> 0:24:05.560
<v Speaker 4>a trader at Jane Street at Trading in New York

0:24:05.720 --> 0:24:08.000
<v Speaker 4>and then went to work for Alimeter Research for him,

0:24:08.240 --> 0:24:10.879
<v Speaker 4>she said that they dated or off for a few years.

0:24:11.119 --> 0:24:14.280
<v Speaker 4>She said that it was a little bit awkward dating

0:24:14.400 --> 0:24:17.639
<v Speaker 4>her boss, and it led to some awkward situations. She

0:24:17.680 --> 0:24:20.640
<v Speaker 4>said that she felt like he didn't pay her enough

0:24:20.920 --> 0:24:23.960
<v Speaker 4>attention in their personal relationship and she wasn't really getting

0:24:24.040 --> 0:24:26.080
<v Speaker 4>enough out of it, and I think that sort of

0:24:26.080 --> 0:24:28.800
<v Speaker 4>complicated her professional relationship with him.

0:24:29.280 --> 0:24:33.840
<v Speaker 2>We've heard a lot about her notes and a tape recording.

0:24:34.600 --> 0:24:37.240
<v Speaker 4>Yes, this is the interesting thing with Ellison. Obviously, she

0:24:37.400 --> 0:24:39.959
<v Speaker 4>is the prosecution style witness and she has a lot

0:24:40.000 --> 0:24:43.520
<v Speaker 4>of powerful testimony, but she also comes with a lot

0:24:43.560 --> 0:24:47.720
<v Speaker 4>of contemporaneous notes that she made of meetings with other executives,

0:24:47.880 --> 0:24:51.639
<v Speaker 4>even her personal diary. Prosecutors also have a recording of

0:24:51.680 --> 0:24:54.600
<v Speaker 4>an all hands meeting that she had with staff Alimeter

0:24:54.880 --> 0:24:58.760
<v Speaker 4>in November last year, when the company and FTX were

0:24:58.800 --> 0:25:01.520
<v Speaker 4>falling apart. At the scene, so she comes with a

0:25:01.560 --> 0:25:04.080
<v Speaker 4>lot of that evidence as well. We haven't really got

0:25:04.119 --> 0:25:07.760
<v Speaker 4>into the nitty gritty of personal diary notes. There were

0:25:07.960 --> 0:25:11.320
<v Speaker 4>a few references to do lists that she would make

0:25:11.400 --> 0:25:14.080
<v Speaker 4>in Google docs, so that evidence was pretty dry today,

0:25:14.119 --> 0:25:16.800
<v Speaker 4>and we were really in the weeds going through balance

0:25:16.840 --> 0:25:21.520
<v Speaker 4>sheets and probabilities of whether Alameter could afford to repay

0:25:21.560 --> 0:25:22.160
<v Speaker 4>their loans.

0:25:22.320 --> 0:25:26.240
<v Speaker 2>Did anything stand out to you that, you know, you said, wow.

0:25:26.880 --> 0:25:30.200
<v Speaker 4>There was one point where the prosecutor was leading her

0:25:30.280 --> 0:25:34.639
<v Speaker 4>through a series of spreadsheets that she had created and

0:25:34.800 --> 0:25:38.280
<v Speaker 4>spoke to Sam about, and in that she did a

0:25:38.320 --> 0:25:42.560
<v Speaker 4>bit of a calculation on whether they should invest three

0:25:42.560 --> 0:25:47.480
<v Speaker 4>billion dollars in some further investments, and she looked at

0:25:47.520 --> 0:25:51.240
<v Speaker 4>the impact that potential investment would have on Alameda's ability

0:25:51.320 --> 0:25:55.040
<v Speaker 4>to repay some of its loans, and in one scenario,

0:25:55.359 --> 0:25:57.640
<v Speaker 4>if they did the investments, there was one hundred percent

0:25:57.760 --> 0:26:00.520
<v Speaker 4>probability they wouldn't be able to repay them loans. And

0:26:00.560 --> 0:26:03.479
<v Speaker 4>she said that she showed this to Sam and he

0:26:03.560 --> 0:26:07.159
<v Speaker 4>went ahead with some of these major investments. Anyway, I

0:26:07.200 --> 0:26:09.800
<v Speaker 4>thought that was a pretty interesting and typical part of

0:26:09.840 --> 0:26:13.080
<v Speaker 4>her evidence because it seems to suggest that he knew

0:26:13.400 --> 0:26:16.840
<v Speaker 4>how high the stakes were for Alameda and what was

0:26:16.840 --> 0:26:21.040
<v Speaker 4>at risk in terms of repaying loans, that he went

0:26:21.080 --> 0:26:23.160
<v Speaker 4>ahead and well the douce Anyway.

0:26:22.880 --> 0:26:25.520
<v Speaker 2>Thanks Aver. We'll check back with you tomorrow when her

0:26:25.560 --> 0:26:29.960
<v Speaker 2>testimony continues. That's Bloomberg Legal Reporter Ava Benny Morrison. This

0:26:30.080 --> 0:26:34.440
<v Speaker 2>is Bloomberg. What exactly is a legal hot tub. It's

0:26:34.480 --> 0:26:37.560
<v Speaker 2>not as diverting or exciting as it may sound, and

0:26:37.600 --> 0:26:40.200
<v Speaker 2>it really has nothing to do with hot tubs. It's

0:26:40.280 --> 0:26:46.080
<v Speaker 2>formerly called concurrent expert testimony or a concurrent expert evidence proceeding,

0:26:46.440 --> 0:26:49.399
<v Speaker 2>and it's more like a discussion among experts. If you

0:26:49.440 --> 0:26:52.040
<v Speaker 2>haven't heard about it, it's because it's a novelty in

0:26:52.200 --> 0:26:55.120
<v Speaker 2>US courts. Here to tell us all about it and

0:26:55.160 --> 0:26:59.240
<v Speaker 2>how it got. That name is Dan Paskin, Bloomberg Law Reporter.

0:27:00.320 --> 0:27:05.400
<v Speaker 2>So tell us exactly what this legal hot tub is, Dan, Yes,

0:27:05.520 --> 0:27:06.840
<v Speaker 2>So you can kind of think.

0:27:06.680 --> 0:27:10.480
<v Speaker 1>Of it as a debate between experts, often economic experts,

0:27:10.480 --> 0:27:14.159
<v Speaker 1>but not necessarily where instead of one sitting on the

0:27:14.240 --> 0:27:16.800
<v Speaker 1>stand in a trial or on the pre trial hearing

0:27:17.240 --> 0:27:20.359
<v Speaker 1>and getting examined and then cross examined by one size

0:27:20.359 --> 0:27:24.080
<v Speaker 1>attorneys and then the other both or all of the

0:27:24.119 --> 0:27:27.240
<v Speaker 1>witnesses sit together before the judge and are basically prompted

0:27:27.280 --> 0:27:30.440
<v Speaker 1>to debate each other on a series of predetermined topics

0:27:30.480 --> 0:27:31.200
<v Speaker 1>or questions.

0:27:31.440 --> 0:27:35.240
<v Speaker 2>So, tell us about this hot tub. It doesn't sound

0:27:35.320 --> 0:27:38.600
<v Speaker 2>very legal to say, even legal batub tell us what

0:27:38.920 --> 0:27:42.399
<v Speaker 2>federal Judge James Donado used it for in San Francisco

0:27:42.440 --> 0:27:43.000
<v Speaker 2>this summer.

0:27:43.440 --> 0:27:46.800
<v Speaker 1>So Donado held the second hot sub he's held in

0:27:46.840 --> 0:27:50.959
<v Speaker 1>this case. This is a lawsuit alleging Google basically has

0:27:51.000 --> 0:27:56.080
<v Speaker 1>anti competitive control over the payment systems in its play store,

0:27:56.160 --> 0:27:58.080
<v Speaker 1>which is like if you have an Android zone, it's

0:27:58.119 --> 0:28:01.080
<v Speaker 1>where you get your apps. And the second hot tub

0:28:01.840 --> 0:28:06.040
<v Speaker 1>was to basically determine whether the plaintiffs experts have reached

0:28:06.200 --> 0:28:10.920
<v Speaker 1>kind of valid models for figuring out how much consumers

0:28:10.960 --> 0:28:14.639
<v Speaker 1>were harmed by these play store policies and what the

0:28:14.760 --> 0:28:19.359
<v Speaker 1>impact was on the market. Pretty central evidence for a

0:28:19.440 --> 0:28:22.719
<v Speaker 1>trial to figure out whether Google, in fact, you know,

0:28:22.800 --> 0:28:25.560
<v Speaker 1>overcharge customers and buy how much if it did.

0:28:26.200 --> 0:28:29.000
<v Speaker 2>Is the judge the only one asking questions? Or are

0:28:29.040 --> 0:28:33.080
<v Speaker 2>the lawyers asking questions? Is their cross talk between the experts.

0:28:33.400 --> 0:28:36.679
<v Speaker 1>There's a lot of crosstalk. It's almost exclusively Tonauto asking

0:28:36.680 --> 0:28:40.120
<v Speaker 1>the questions. He allows the attorneys a couple attorneys to

0:28:40.160 --> 0:28:43.280
<v Speaker 1>sit with the experts in the hot tub, but they're

0:28:43.320 --> 0:28:45.280
<v Speaker 1>really only allowed to ask questions right at the end

0:28:45.280 --> 0:28:48.840
<v Speaker 1>if they have kind of clarifying questions for either expert. Otherwise,

0:28:48.880 --> 0:28:53.160
<v Speaker 1>to Notato prompts one side or the other. We'll say like, yeah,

0:28:53.200 --> 0:28:55.560
<v Speaker 1>I read your report, I had this question about this,

0:28:55.680 --> 0:28:58.680
<v Speaker 1>you know, one part of the model, and then we'll

0:28:58.720 --> 0:29:01.560
<v Speaker 1>prompt the other experts like do you disagree with that?

0:29:01.960 --> 0:29:05.280
<v Speaker 1>So why it got pretty heated. Several times there was

0:29:05.480 --> 0:29:06.960
<v Speaker 1>I don't know if you would call it yelling, but

0:29:07.000 --> 0:29:11.000
<v Speaker 1>definitely raised voices. The court reporter had to interrupt I

0:29:11.040 --> 0:29:15.160
<v Speaker 1>think three separate times because two experts and the judge

0:29:15.160 --> 0:29:18.120
<v Speaker 1>were talking over each other and she couldn't transcribe that

0:29:18.160 --> 0:29:20.760
<v Speaker 1>in real time. So it definitely is a little more

0:29:20.840 --> 0:29:23.160
<v Speaker 1>chaotic than your average court oral testimony.

0:29:23.800 --> 0:29:28.120
<v Speaker 2>Is this because the expert testimony is so complex for

0:29:28.240 --> 0:29:33.440
<v Speaker 2>the judge to understand? Or is it because this is quicker?

0:29:33.480 --> 0:29:35.320
<v Speaker 2>I mean, what's the real reason behind this?

0:29:35.840 --> 0:29:38.880
<v Speaker 1>The reason do not outheld the hantab was to answer

0:29:39.760 --> 0:29:42.680
<v Speaker 1>this Google motion over whether the experts should be allowed

0:29:42.680 --> 0:29:45.840
<v Speaker 1>to testify or not. And Donato told me in an

0:29:45.880 --> 0:29:50.840
<v Speaker 1>interview afterwards that it's very useful for him understanding their

0:29:50.880 --> 0:29:53.560
<v Speaker 1>testimony and their models. It is really complicated, and that's

0:29:53.640 --> 0:29:56.600
<v Speaker 1>a big reason why judges are deploying hot tubs, that

0:29:56.840 --> 0:29:59.680
<v Speaker 1>they haven't deployed too many of them. But it's not

0:29:59.800 --> 0:30:03.280
<v Speaker 1>just that's the complexity. It's also faster. To another said,

0:30:03.320 --> 0:30:07.920
<v Speaker 1>it's a lot cleaner compared like normal expert testimony, non

0:30:07.960 --> 0:30:10.360
<v Speaker 1>hot tub testimony to a game of telesphone. Right, you've

0:30:10.360 --> 0:30:13.080
<v Speaker 1>got the expert on the stand, you've got their attorney

0:30:13.160 --> 0:30:16.240
<v Speaker 1>questioning them, and then you've got the judge hearing their answers.

0:30:16.240 --> 0:30:18.840
<v Speaker 1>So it's kind of filtered through what questions the attorney

0:30:18.840 --> 0:30:21.920
<v Speaker 1>wants to ask and then how the economist in this

0:30:22.040 --> 0:30:25.600
<v Speaker 1>case answers those questions. The judge might not necessarily be

0:30:25.640 --> 0:30:29.320
<v Speaker 1>getting the exact answers they're looking for and instead getting,

0:30:29.840 --> 0:30:32.640
<v Speaker 1>you know, the version that the economist wants to give,

0:30:32.640 --> 0:30:34.880
<v Speaker 1>the response to the questions the attorney wants to ask.

0:30:34.960 --> 0:30:37.479
<v Speaker 1>And so by having this hot tub, it's a lot

0:30:37.560 --> 0:30:40.600
<v Speaker 1>more direct and clear. The judge can ask really complex

0:30:40.720 --> 0:30:43.960
<v Speaker 1>questions and get, you know, exactly what they want out

0:30:44.000 --> 0:30:46.360
<v Speaker 1>of them, and kind of follow up if you have

0:30:46.640 --> 0:30:50.000
<v Speaker 1>dodges the question or doesn't answers have factorily and they're

0:30:50.000 --> 0:30:55.200
<v Speaker 1>economists to typically get hired for these cases. One who's

0:30:55.200 --> 0:30:58.200
<v Speaker 1>done several of these told me that it's pretty hard

0:30:58.240 --> 0:31:00.000
<v Speaker 1>for an attorney to cross examine them, to kind of

0:31:00.120 --> 0:31:04.040
<v Speaker 1>catch them in errors or obfuscations, because the stuff is

0:31:04.040 --> 0:31:06.240
<v Speaker 1>so complex and because it involves, you know, so many

0:31:06.280 --> 0:31:09.320
<v Speaker 1>years of study. Really the only person in the courtroom

0:31:09.400 --> 0:31:12.800
<v Speaker 1>can really call them on their mistakes or on lack

0:31:12.840 --> 0:31:15.320
<v Speaker 1>of clarity is the other economists. So it also means

0:31:15.360 --> 0:31:18.160
<v Speaker 1>that you have the only other person able to make

0:31:18.240 --> 0:31:20.760
<v Speaker 1>these calls in the room with them and able to

0:31:21.720 --> 0:31:22.880
<v Speaker 1>disagree in real time.

0:31:23.600 --> 0:31:27.280
<v Speaker 2>Do attorneys object to this because it's taking them out

0:31:27.280 --> 0:31:31.240
<v Speaker 2>of the equation with a very important witness or witnesses?

0:31:32.480 --> 0:31:35.360
<v Speaker 1>Yeah, So, I mean, like these are arguably some of

0:31:35.440 --> 0:31:39.120
<v Speaker 1>the most important players in a trial, especially in anti

0:31:39.160 --> 0:31:42.560
<v Speaker 1>trust but also in I imagine you know, patent cases

0:31:42.600 --> 0:31:45.560
<v Speaker 1>and elsewhere, and what they come up with can really

0:31:45.600 --> 0:31:49.000
<v Speaker 1>determine not just whether a company or an individual is

0:31:49.080 --> 0:31:51.920
<v Speaker 1>liable or not, but also you know, monetarily how much

0:31:51.960 --> 0:31:56.400
<v Speaker 1>they have to pay. The attorneys aren't the biggest fans

0:31:56.240 --> 0:31:59.240
<v Speaker 1>of having to step back and basically watch this thing happen.

0:31:59.560 --> 0:32:03.360
<v Speaker 1>But once I spoke to you also appreciated how useful

0:32:03.360 --> 0:32:05.800
<v Speaker 1>it was for the judge and again how clean the

0:32:05.800 --> 0:32:09.880
<v Speaker 1>whole thing was. But yeah, you're right, they definitely losed

0:32:09.960 --> 0:32:12.800
<v Speaker 1>quite a bit of control. They're relegated to preparing for

0:32:12.880 --> 0:32:15.760
<v Speaker 1>the hot tub and then you know, trying to pick

0:32:15.840 --> 0:32:19.240
<v Speaker 1>up pieces afterwards. Probably the most helpless they are throughout

0:32:19.280 --> 0:32:20.680
<v Speaker 1>the proceedings.

0:32:21.320 --> 0:32:24.800
<v Speaker 2>So where does that term hot tub come from Australia?

0:32:25.120 --> 0:32:27.920
<v Speaker 1>Which kind of you when you learn that makes quite

0:32:27.960 --> 0:32:29.920
<v Speaker 1>a bit of sense. I feel like you can you

0:32:29.920 --> 0:32:32.640
<v Speaker 1>can definitely imagine for one of an Australian accents saying

0:32:32.680 --> 0:32:34.840
<v Speaker 1>hot At least it makes sense to me.

0:32:35.040 --> 0:32:35.240
<v Speaker 2>Right.

0:32:35.600 --> 0:32:38.680
<v Speaker 1>These originally pretty much the right around the beginning of

0:32:38.680 --> 0:32:42.680
<v Speaker 1>the decade, and it was deployed originally by the Australian

0:32:42.720 --> 0:32:46.400
<v Speaker 1>Competition Tribunal and their kind of anti trust dedicated port

0:32:46.480 --> 0:32:50.480
<v Speaker 1>system basically for this reason to get a clearer understanding

0:32:50.520 --> 0:32:52.800
<v Speaker 1>of what experts we're talking about and make them really

0:32:52.880 --> 0:32:55.760
<v Speaker 1>drill down on their agreements and their discy agreements. It

0:32:55.800 --> 0:32:58.200
<v Speaker 1>was pretty successful there. They've modified it quite a bit.

0:32:58.280 --> 0:33:00.280
<v Speaker 1>I don't think it's technically called the hot ted there more,

0:33:00.280 --> 0:33:02.600
<v Speaker 1>but it's effectively the way still run the way that's

0:33:02.640 --> 0:33:05.320
<v Speaker 1>Nato Rana in his courtroom, and it's taken off in

0:33:05.360 --> 0:33:08.280
<v Speaker 1>a bunch of other countries in Europe, in South Africa,

0:33:08.920 --> 0:33:12.959
<v Speaker 1>Canada has used. It's mostly been unpopular. In the US,

0:33:13.080 --> 0:33:16.000
<v Speaker 1>We've only found a little less than two dozen instances

0:33:16.160 --> 0:33:20.320
<v Speaker 1>of federal judges using on although it's been to play

0:33:20.360 --> 0:33:23.160
<v Speaker 1>an arbitration a little bit, but it hasn't it hasn't

0:33:23.160 --> 0:33:23.640
<v Speaker 1>taken off.

0:33:24.120 --> 0:33:28.200
<v Speaker 2>Yeah, and I'm wondering have there been any appeals based

0:33:28.240 --> 0:33:30.080
<v Speaker 2>on the fact that this was used.

0:33:30.640 --> 0:33:35.880
<v Speaker 1>So Dnata's case, he in the Google play is used

0:33:35.960 --> 0:33:38.840
<v Speaker 1>a hot tub for class certification about a year ago.

0:33:39.080 --> 0:33:43.200
<v Speaker 1>It was last June, and Google appealed as the ruling,

0:33:43.480 --> 0:33:46.680
<v Speaker 1>which he found in favor of the class and certified

0:33:46.720 --> 0:33:49.320
<v Speaker 1>the cost of consumers that are pretty large cost of

0:33:49.360 --> 0:33:51.720
<v Speaker 1>consumers that would have put Google on the hook for

0:33:51.720 --> 0:33:54.280
<v Speaker 1>for quite a bit of money and hypothetical damages. Google

0:33:54.360 --> 0:33:57.280
<v Speaker 1>appealed that to the Ninth Circuit Court of Appeals in California,

0:33:57.520 --> 0:34:00.000
<v Speaker 1>but before they could actually rule, and it was kind

0:34:00.200 --> 0:34:03.520
<v Speaker 1>unclear exactly how much the hot tub aspect of it

0:34:03.560 --> 0:34:06.880
<v Speaker 1>would affect the ruling. I'm not sure that would have

0:34:07.000 --> 0:34:10.680
<v Speaker 1>changed anything. Donato actually changed his mind in part because

0:34:10.719 --> 0:34:12.880
<v Speaker 1>of evidence that came up at the hot Tub that

0:34:12.960 --> 0:34:17.640
<v Speaker 1>I attended and decertified class kind of rendering the Ninth

0:34:17.680 --> 0:34:19.040
<v Speaker 1>Circuit clebrations mood.

0:34:19.400 --> 0:34:22.120
<v Speaker 2>There's no appeal from his reversal, but in the end

0:34:22.160 --> 0:34:23.680
<v Speaker 2>he decertified the class.

0:34:24.719 --> 0:34:27.520
<v Speaker 1>Yeah, and it looks like they probably won't. The parties

0:34:27.520 --> 0:34:31.040
<v Speaker 1>are actually have settled on a potential settlement. I think

0:34:31.040 --> 0:34:32.680
<v Speaker 1>we'll get details of it in a couple of days.

0:34:33.200 --> 0:34:35.439
<v Speaker 1>It should be pretty interesting. I'm really curious to see

0:34:35.440 --> 0:34:37.399
<v Speaker 1>exactly how much money they're getting and whether there's any

0:34:37.400 --> 0:34:39.959
<v Speaker 1>other form of relief. But no, there hasn't been any

0:34:40.040 --> 0:34:44.279
<v Speaker 1>other appeals. The Men Circuit basically handed the ruling back

0:34:44.320 --> 0:34:46.359
<v Speaker 1>to Donado when he changed his.

0:34:46.400 --> 0:34:50.080
<v Speaker 2>Mind at the end of August, So this was pretty

0:34:50.080 --> 0:34:52.840
<v Speaker 2>consequential then to make him change his mind.

0:34:53.880 --> 0:34:56.840
<v Speaker 1>Yeah. So if you read his ruling on the classification,

0:34:56.920 --> 0:34:59.239
<v Speaker 1>he quotes from the hot tub that I attended at

0:34:59.239 --> 0:35:02.719
<v Speaker 1>the beginning of and basically says it helped him get

0:35:02.760 --> 0:35:06.200
<v Speaker 1>a better understanding of the issues. Basically, what happened was

0:35:06.800 --> 0:35:09.760
<v Speaker 1>part of the model that one of the experts used

0:35:10.440 --> 0:35:15.000
<v Speaker 1>in certifying the class was also relevant for determining damages

0:35:15.080 --> 0:35:18.719
<v Speaker 1>to that class, and the defendants expert tried to poke

0:35:18.800 --> 0:35:21.520
<v Speaker 1>some holes in it at the hot tub that I attended,

0:35:21.560 --> 0:35:24.240
<v Speaker 1>and Donato found those to be kind of a valid attack,

0:35:24.880 --> 0:35:28.440
<v Speaker 1>and so he didn't just throw out the testimony of

0:35:28.480 --> 0:35:32.200
<v Speaker 1>that plaintiffs expert for the merits of the harms, but

0:35:32.280 --> 0:35:33.640
<v Speaker 1>also for the class itself.

0:35:34.160 --> 0:35:35.440
<v Speaker 2>I think they have to come up with a new

0:35:35.520 --> 0:35:37.960
<v Speaker 2>name for this, don't you. The judge held a hot

0:35:38.040 --> 0:35:39.480
<v Speaker 2>tub just doesn't sound right.

0:35:40.160 --> 0:35:42.799
<v Speaker 1>Oh yeah, I mean like pitching the story was quite

0:35:42.840 --> 0:35:44.560
<v Speaker 1>the experience. I got a lot of raised bad roads

0:35:44.600 --> 0:35:48.840
<v Speaker 1>from editors, although I have the receiver of a variety

0:35:48.880 --> 0:35:51.239
<v Speaker 1>of memes created from it, which was pretty nice. But no,

0:35:51.360 --> 0:35:53.840
<v Speaker 1>attorneys don't love it. I talked to an economist. He

0:35:54.120 --> 0:35:58.120
<v Speaker 1>said strongly believes we need to find another term for it.

0:35:58.200 --> 0:36:00.560
<v Speaker 1>If she mentioned that it's kind of weird when you're

0:36:00.560 --> 0:36:02.239
<v Speaker 1>at a conference and someone walks up to you and

0:36:02.280 --> 0:36:04.360
<v Speaker 1>it's like, I recognize you from the hot shows. I

0:36:04.360 --> 0:36:07.280
<v Speaker 1>think people are trying to find another term. But concurrent

0:36:07.360 --> 0:36:10.640
<v Speaker 1>expert evidence that concurrent expert witness proceeding.

0:36:10.600 --> 0:36:13.160
<v Speaker 3>Is not very catchy, not very catchy at all.

0:36:13.440 --> 0:36:16.880
<v Speaker 2>Thanks so much, Dan. That's Dan Paskin, Bloomberg Law Reporter,

0:36:17.320 --> 0:36:19.680
<v Speaker 2>and that's it for this edition of The Bloomberg Law Show.

0:36:20.000 --> 0:36:22.319
<v Speaker 2>Remember you can always get the latest legal news on

0:36:22.400 --> 0:36:26.680
<v Speaker 2>our Bloomberg Law Podcast. You can find them on Apple Podcasts, Spotify,

0:36:26.840 --> 0:36:31.879
<v Speaker 2>and at www dot Bloomberg dot com slash podcast Slash Law,

0:36:32.280 --> 0:36:34.880
<v Speaker 2>And remember to tune into The Bloomberg Law Show every

0:36:34.920 --> 0:36:38.840
<v Speaker 2>weeknight at ten pm Wall Street Time. I'm June Grosso

0:36:38.960 --> 0:36:40.520
<v Speaker 2>and you're listening to Bloomberg