WEBVTT - Hitman's Incriminating Confession

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 1>This week, the Supreme Court justices grapple with the question

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<v Speaker 1>of whether a man serving a life sentence for his

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<v Speaker 1>role on an international kill team should get a new

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<v Speaker 1>trial because the confession of a co defendant implicated him

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<v Speaker 1>in the crime. Adam Semiah was tried with two other

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<v Speaker 1>men for killing a real estate broker in the Philippines.

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<v Speaker 1>One of his co defendants had confessed to the crime,

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<v Speaker 1>and prosecutors used that confession at trial, with Semiah's name

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<v Speaker 1>redacted and replaced by the words someone and the other person.

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<v Speaker 1>Semiah argued that violated his right to confront witnesses testifying

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<v Speaker 1>against him, but the Conservative justices, including Chief Justice John Roberts,

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<v Speaker 1>appeared skeptical about that. Maybe they will wonder, Weld, why

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<v Speaker 1>are they saying another person if it was this guy,

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<v Speaker 1>be because it's somebody else that they don't, you know,

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<v Speaker 1>haven't brought to trial. The liberal justice is, like Elena Kagan,

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<v Speaker 1>seem more accepting of Samea's arguments. It's just as good

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<v Speaker 1>to say the woman and I went out and robbed

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<v Speaker 1>Phil as it is to say Mary, the person sitting

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<v Speaker 1>on my left went out and robbed Bill in that

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<v Speaker 1>in that case, right, it does the same thing. It

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<v Speaker 1>identifies the person joining me as former federal prosecutor George

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<v Speaker 1>Newhouse of Richard's Carrington. George tell us about the issue here.

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<v Speaker 1>The legal issue in this case is the admissibility of

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<v Speaker 1>a co conspirator statement that criminates both the defendant who

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<v Speaker 1>made the statement and his co conspirator. In this case dammiab.

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<v Speaker 1>When they go to trial against two individuals and they

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<v Speaker 1>try to offer this statement against the non testifying defendant,

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<v Speaker 1>it's not admissible because it's a hearsay statement of not

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<v Speaker 1>being offered against the person who made it, mister Stillwell,

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<v Speaker 1>being offered against codefendant. So the law is clear and

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<v Speaker 1>has always been clear, that that statement is not admissible.

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<v Speaker 1>And in the original case Bruton Bruton objected and the

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<v Speaker 1>judge said, that's fine. I will instruct the jury that

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<v Speaker 1>it cannot be used against mister Bruton. It's only offered

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<v Speaker 1>against the codefendant who made the admission. And of course,

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<v Speaker 1>in Bruton Bruton objective, stead, your honor, the jury can

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<v Speaker 1>hardly disregard that evidence, even though they're instructed to do so.

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<v Speaker 1>So the Supreme Court jaid, that's right. There are limited

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<v Speaker 1>powers of the jury to disregard highly probitive, highly incriminating evidence.

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<v Speaker 1>So that's now called Bruton error. And when the government

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<v Speaker 1>wants to introduce that statement, they either have to separate

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<v Speaker 1>the trial, have a separate trial for that defendant, or

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<v Speaker 1>they have to not offer that statement against the defendant.

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<v Speaker 1>So in this case, a very similar situation, two people

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<v Speaker 1>committed the crime. This was a shooting in the Philippines,

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<v Speaker 1>murdered an individual. There were two people in the car,

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<v Speaker 1>and still Well confessed, and they of course offered that

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<v Speaker 1>confession against both individuals. But what they did was they redacted,

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<v Speaker 1>they cleaned up the confession for the person who testified.

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<v Speaker 1>The law enforcement officers said, well Stillwell admitted to the crime,

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<v Speaker 1>and he admitted that he was in the car with

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<v Speaker 1>another person not identified. And of course the issue in

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<v Speaker 1>this case is the defendant Sammy us saying, really, the

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<v Speaker 1>jury will immediately know who that other person is by

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<v Speaker 1>the context of the evidence presented enhanced. It's a brutal

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<v Speaker 1>error because you're offering an out of corpse statement against me.

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<v Speaker 1>And it's what we call a confrontation clause issue. That

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<v Speaker 1>the six Adenment allows you the right to confront and

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<v Speaker 1>proper examine your accusers. You can't do it when it's

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<v Speaker 1>an out of court statement. So the issue before the

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<v Speaker 1>court is is this fall within the purview of Bruton

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<v Speaker 1>or is it an acceptable correction that doesn't harm the

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<v Speaker 1>defendant's chance and doesn't violate the sixth Amendment right of confrontations.

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<v Speaker 1>That will be the issue of Supreme Court decide. So

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<v Speaker 1>it seemed like some of the conservative justices, like the

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<v Speaker 1>Chief Justice, said, well, you know, you can't really tell

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<v Speaker 1>and it is not necessarily referring to the defendant. But

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<v Speaker 1>then you had some of the liberal justices like Elina

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<v Speaker 1>Kagan saying, come on, obviously you're going to know who

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<v Speaker 1>it is the person sitting next to you that explains it.

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<v Speaker 1>It makes sense. But the conservative justices who think that

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<v Speaker 1>a reference to another person unnamed will not immediately lead

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<v Speaker 1>the fury to the defendant is ridiculous in that case.

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<v Speaker 1>From the context there are only two people in the car.

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<v Speaker 1>They're going to figure out who was in the car,

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<v Speaker 1>and they're going to connect the dots, and then they

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<v Speaker 1>will disregard the instruction that the evidence is only offered

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<v Speaker 1>against mister Stillwell, the defendant who made the statement. So

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<v Speaker 1>it really is a reality test, and I predict that

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<v Speaker 1>the court will find that this is brutal error. You know,

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<v Speaker 1>the choice the real prosecutors have to make is do

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<v Speaker 1>they want to try the two together sometimes they can

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<v Speaker 1>sever the cases, or do you not want to offer

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<v Speaker 1>the confession or you need to change the confession so

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<v Speaker 1>there isn't a reference to the other person in the

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<v Speaker 1>car in this case, Sammy, of the person that they

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<v Speaker 1>wound up convicting was the shoot her. So the question

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<v Speaker 1>is context and interpretation, and this is an interesting issue,

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<v Speaker 1>but my prediction is that they will find that it's

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<v Speaker 1>the brutent error should be justice. Amy Coney, Barrett and

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<v Speaker 1>some of the other conservatives seemed concerned about having to

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<v Speaker 1>sever the trials. So it seems to me at the

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<v Speaker 1>end of the day, it boils down to you just

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<v Speaker 1>can't try two defendants together if you have a non

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<v Speaker 1>testifying defendant and confession. So they seem rather reluctant about

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<v Speaker 1>severing trials. That's a very good point, and that's a

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<v Speaker 1>traditional reaction of the courts. They want to optimize judicial economy.

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<v Speaker 1>They want to have one trial rather than force the

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<v Speaker 1>court to do true trials. And most trial judges are

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<v Speaker 1>the same. They're very reluctant to grant a severance motion,

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<v Speaker 1>which really would be the motion you make. But in

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<v Speaker 1>the face of that, you still have to say, the

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<v Speaker 1>constitutional rights of the defendant against whom this statement is

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<v Speaker 1>really affect to be going to cause prejudice, even though

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<v Speaker 1>the jury is instructed not to fold it against him.

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<v Speaker 1>I think his paramount because it's his constitutional rights. And frankly,

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<v Speaker 1>the government chas to make a choice. They can either

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<v Speaker 1>have two trials or they can not offer that statement

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<v Speaker 1>in the evidence. Either way, the government says will harm,

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<v Speaker 1>and that's what the court likes to do. I have

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<v Speaker 1>to balance judicial economy against the rights of the defendant.

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<v Speaker 1>Pennsylvania led thirty two states in an amicuous brief urging

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<v Speaker 1>the court to uphold the use of the confession, noting

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<v Speaker 1>that thousands of trials in the past ten years have

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<v Speaker 1>involved multiple defendants and confessions, and a ruling for sameia

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<v Speaker 1>would lead to retrials and cause prosecutors to try defendants separately.

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<v Speaker 1>What's your take on that argument? Hard to know how

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<v Speaker 1>much credibility to attach to that argument, because Obviously it

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<v Speaker 1>does occur, and obviously it imposes a cost limitation on prosecutors,

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<v Speaker 1>but I don't really think that it's that substantial. This

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<v Speaker 1>Bruton rule and so called Bruton air has been around

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<v Speaker 1>a long time, and frankly, most judges don't allow the

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<v Speaker 1>confession and sanitizing in the way that they did. By

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<v Speaker 1>referring to quote the other person when the context makes

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<v Speaker 1>it clear who that is, is simply a violation of

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<v Speaker 1>that person's constitutional rights in my view. Justice Corsage brought

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<v Speaker 1>up something that I thought was interesting. He said that

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<v Speaker 1>in other instances we do give juries limiting instructions such

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<v Speaker 1>as only consider this non mirandized confession for impeachment purposes.

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<v Speaker 1>So basically, why can't we trust the jury in this

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<v Speaker 1>case with a codefendants confession. It's an interesting argument, and

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<v Speaker 1>it's one of the problems with having justices on the

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<v Speaker 1>Supreme Court who are not had never been trial lawyers

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<v Speaker 1>or trial judges, because people who have corbate experience know

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<v Speaker 1>perfectly well that jurors have a hard time following those

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<v Speaker 1>instructions when they hear this incredibly damning evidence and they

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<v Speaker 1>figure out on the content who it refers to. You

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<v Speaker 1>can tell the jurors whatever you want, but the practicality

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<v Speaker 1>is it causes prejudice to that person and deprives them.

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<v Speaker 1>One would argue a constitutional right, which is to confront

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<v Speaker 1>your accuses. It's the confrontational pause issue and the jury

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<v Speaker 1>instructions that was what was the holding of bruten The

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<v Speaker 1>curative instructions don't always work, and that's reality, George. Does

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<v Speaker 1>this come up often where you have a co defendants

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<v Speaker 1>confession that implicates another defendant introduced at trial? Very frequently

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<v Speaker 1>because now we like to have multiple defendant cases, and

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<v Speaker 1>it's very common that one or more the defendants will confess,

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<v Speaker 1>and when they confess, they tell all and they identify

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<v Speaker 1>all the participants. That evidence is highly incriminating with respect

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<v Speaker 1>of a non testifying defendant. So it's a common situation.

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<v Speaker 1>There are various solutions in some cases of judge will

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<v Speaker 1>hold one trial, but in panel two juries and the

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<v Speaker 1>one juring will hear that tainted confession and the other

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<v Speaker 1>jury will not. So there are measures that the courts

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<v Speaker 1>can take that I think strikes the right balance between

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<v Speaker 1>the defendant constitutional rights and judicial efficiency. I appreciate the

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<v Speaker 1>insights of an experienced trial lawyer George, Thanks so much.

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<v Speaker 1>That's former federal prosecutor George Newhouse of Richard's Carrington. A

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<v Speaker 1>landmark trial is kicking off in Minnesota the first time

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<v Speaker 1>one of the thousands of cases against eat cigarette maker

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<v Speaker 1>Jewel is going to play out in a courtroom. Minnesota

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<v Speaker 1>accuses Jewel and Altria of hooking a generation of young

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<v Speaker 1>people on their products by deception and slick advertising, and

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<v Speaker 1>the state wants the companies to pay up for the

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<v Speaker 1>public costs of addressing an uptick in youth vaping and smoking.

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<v Speaker 1>Joining me is healthcare attorney Harry Nelson of Nelson Hardeman Harry.

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<v Speaker 1>Minnesota is using the theory of public nuisance, a theory

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<v Speaker 1>that was used against the tobacco industry in the nineteen nineties.

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<v Speaker 1>Tell us about it. Yeah, So a public nuisance legal theory.

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<v Speaker 1>It was a series that actually grew out of cases

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<v Speaker 1>where there had been some kind of public harm like

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<v Speaker 1>damage to you know, water sources and from pollution and

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<v Speaker 1>things like that. And the idea was that essentially you

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<v Speaker 1>could hold private parties responsible for the social costs, the

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<v Speaker 1>costs that they impost on society. So we've been seeing

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<v Speaker 1>through the opioid cases of the last few years, they

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<v Speaker 1>attempt to extend that theory against drug makers and pharmacies

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<v Speaker 1>that allowed easy access, and the state of Minnesota is

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<v Speaker 1>trying to do the same thing here, essentially to say

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<v Speaker 1>that Jools, you know, the eas cigarette company that Altria

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<v Speaker 1>is the biggest of the tobacco companies, essentially caused great

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<v Speaker 1>harm to the public by encouraging the sale of the

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<v Speaker 1>e cigarette flavors to teenagers and to underage consumers. Do

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<v Speaker 1>you think that the public Nuisan's theory is a good

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<v Speaker 1>fit for what it's accusing Jewelove. I think it is

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<v Speaker 1>a little bit of a stretch. Personally, I think that

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<v Speaker 1>this issue of underage consumers smoking or engaging in unhealthy

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<v Speaker 1>behaviors is a more complicated problem. It's not a clean

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<v Speaker 1>fit to me that jewel was the entire problem. I

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<v Speaker 1>think there's a broader question about our consumer culture that

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<v Speaker 1>made this product so closely popular with kids. So, while

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<v Speaker 1>I do think that the marketing practices were reprehensible, I'm

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<v Speaker 1>not sure that it's a clear line to say that

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<v Speaker 1>they were the cause of all these problems. I also

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<v Speaker 1>think it's unclear we won't know for years what the

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<v Speaker 1>long term health effects will be of kids starting to

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<v Speaker 1>smoke in eighth grade, and certainly there's been an issue

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<v Speaker 1>of teenagers of older teenagers, tenth graders eleventh graders smoking

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<v Speaker 1>that preday e cigarettes. Minnesota says in papers that in

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<v Speaker 1>the fourteen years between two and twenty fourteen Minnesota high

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<v Speaker 1>schoolers smoking at least one cigarette in the last thirty

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<v Speaker 1>days dropped from thirty two point four percent down to

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<v Speaker 1>ten point six percent. Six years later, nineteen point three

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<v Speaker 1>percent of high schoolers reported having vaped at least once

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<v Speaker 1>in the last thirty days. Does that make their case

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<v Speaker 1>about public health or do they need to do much more?

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<v Speaker 1>I think that's a helpful fact to them. I just

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<v Speaker 1>don't know the whole story. I think the reality is

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<v Speaker 1>like vaping in general has become a more socially acceptable

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<v Speaker 1>and more popular alternative too smoking. So even as we've

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<v Speaker 1>seen a decline in general rates of cigarette smoking, you

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<v Speaker 1>know with greater awareness that vaping is a slightly healthier

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<v Speaker 1>choice of an overall very unhealthy activity. You know it's increased,

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<v Speaker 1>So I think it's helpful. I just don't know. I

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<v Speaker 1>don't think it's a clam dunk Jule and Altria are

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<v Speaker 1>trying to shift the blame to the state of Minnesota.

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<v Speaker 1>Minnesota got billions of dollars from tobacco settlements over the

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<v Speaker 1>last decade, but spent less than one percent on prevention efforts,

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<v Speaker 1>instead using the funds to bankroll unrelated products like the

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<v Speaker 1>Minnesota Vikings football stadium. This is a really interesting argument.

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<v Speaker 1>If you go back to nineteen ninety eight, the various

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<v Speaker 1>states one something like two hundred and five two hundred

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<v Speaker 1>and six billion dollars. I think the state of Minnesota

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<v Speaker 1>alone got over six billion dollars in the tobacco settlements

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<v Speaker 1>with all the big tobacco companies, including the company that

0:13:35.559 --> 0:13:38.559
<v Speaker 1>now Altria right it used to be Philip Morris. And

0:13:38.640 --> 0:13:43.079
<v Speaker 1>so there was like enormous opportunity for not only Minnesota,

0:13:43.080 --> 0:13:45.760
<v Speaker 1>but for all of the states to use that money

0:13:45.840 --> 0:13:50.000
<v Speaker 1>to really create better public health programs, better education programs

0:13:50.040 --> 0:13:53.280
<v Speaker 1>to reduce smoking and educate people about the dangers of smoking,

0:13:53.640 --> 0:13:57.000
<v Speaker 1>and intervene in trends like this. And I think that

0:13:57.160 --> 0:14:00.440
<v Speaker 1>Jewel and Altria have a good taste to make that

0:14:00.600 --> 0:14:04.000
<v Speaker 1>not only Minnesota, but literally every state in the country

0:14:04.400 --> 0:14:06.680
<v Speaker 1>basically wasted that opportunity. When we look at what they

0:14:06.720 --> 0:14:09.520
<v Speaker 1>did with the money. They mostly plugged holes and stay

0:14:09.559 --> 0:14:12.439
<v Speaker 1>budgets and just considered it's sort of a flush fund

0:14:12.840 --> 0:14:15.240
<v Speaker 1>to be used whenever there was a financial needs. It's

0:14:15.280 --> 0:14:18.480
<v Speaker 1>hard to find any examples in Minnesota. There's no exception

0:14:18.920 --> 0:14:22.520
<v Speaker 1>of a state that really used the money comprehensively for

0:14:22.640 --> 0:14:25.760
<v Speaker 1>effective public health related to the danger of smoking. Do

0:14:26.000 --> 0:14:28.720
<v Speaker 1>Altria and Jewel have the same defense or are they

0:14:28.760 --> 0:14:32.320
<v Speaker 1>pointing fingers. Jewel is the main target here to fuel

0:14:32.400 --> 0:14:35.400
<v Speaker 1>Labs is the company that developed this and marketed this,

0:14:35.480 --> 0:14:37.480
<v Speaker 1>and they are a victim of their own success with

0:14:37.600 --> 0:14:40.160
<v Speaker 1>all of the flavors that they came out with, mango

0:14:40.200 --> 0:14:43.320
<v Speaker 1>and other things that really appeals to kids. Altria has

0:14:43.360 --> 0:14:46.360
<v Speaker 1>the misfortune of having been a major investor, I think

0:14:46.400 --> 0:14:49.400
<v Speaker 1>something like twelve to thirteen billion dollar investment in Jewel.

0:14:49.520 --> 0:14:52.280
<v Speaker 1>But it's not to me at all clear why Altria

0:14:52.520 --> 0:14:56.880
<v Speaker 1>is sitting side by side defending this case with Jewel. Frankly,

0:14:56.920 --> 0:14:59.360
<v Speaker 1>it looks like they are there because they are such

0:14:59.400 --> 0:15:02.320
<v Speaker 1>a big player in the overall tobacco industry and not

0:15:02.400 --> 0:15:05.520
<v Speaker 1>because they were so singularly attached to this product. In fact,

0:15:05.920 --> 0:15:09.920
<v Speaker 1>Altria has completely divested itself of its position and Jewel,

0:15:09.960 --> 0:15:13.280
<v Speaker 1>which I think was never more than a small minority percentage. Ironically,

0:15:13.240 --> 0:15:16.560
<v Speaker 1>Altria is actually invested in a competing product, and Joy,

0:15:16.920 --> 0:15:20.000
<v Speaker 1>which is competing with Jewels, and so I'm not clear

0:15:20.360 --> 0:15:22.800
<v Speaker 1>if their appearance here is more about optics and having

0:15:23.240 --> 0:15:25.560
<v Speaker 1>you know, the biggest tobacco company in the country so

0:15:25.640 --> 0:15:28.520
<v Speaker 1>much as related to their actual activity in the state

0:15:28.520 --> 0:15:32.480
<v Speaker 1>of Minnesota related to eastigs. Also for the deep pocket, yeah,

0:15:32.480 --> 0:15:34.840
<v Speaker 1>no questions. As a parent of children, I share the

0:15:34.880 --> 0:15:40.200
<v Speaker 1>concern about the effective, dangerously effective marketing of East cigarettes.

0:15:40.240 --> 0:15:43.480
<v Speaker 1>But it does seem that Altria is at the table

0:15:43.880 --> 0:15:46.880
<v Speaker 1>mostly not only for their size and disability, but also

0:15:47.240 --> 0:15:49.560
<v Speaker 1>for the potential resources that they can add to the

0:15:49.560 --> 0:15:52.320
<v Speaker 1>pool of funds. So I agree with your comment about

0:15:52.360 --> 0:15:54.320
<v Speaker 1>them being a deep pocket here. As far as if

0:15:54.320 --> 0:15:57.800
<v Speaker 1>the jury thinks the state has some responsibility here, is

0:15:57.800 --> 0:16:02.240
<v Speaker 1>this a case where the jury can allocate damages. Yeah, absolutely,

0:16:02.240 --> 0:16:06.400
<v Speaker 1>the jury does have the ability to attribute comparative amounts

0:16:06.640 --> 0:16:10.400
<v Speaker 1>and to assess responsibilities. So yeah, it's a tricky case

0:16:10.480 --> 0:16:13.920
<v Speaker 1>for Altria because it obviously the goal is to show

0:16:13.960 --> 0:16:16.600
<v Speaker 1>that this is a bigger, more complex problem that isn't

0:16:16.600 --> 0:16:19.280
<v Speaker 1>specifically tied to this, but also to try to minimize

0:16:19.320 --> 0:16:22.560
<v Speaker 1>its share of any damages that are awarded. So what's

0:16:22.600 --> 0:16:25.880
<v Speaker 1>the question the jury will have to answer. I mean,

0:16:25.880 --> 0:16:32.080
<v Speaker 1>the question is really whether Jewel engaged in deceptive marketing

0:16:32.120 --> 0:16:36.680
<v Speaker 1>practices that targeted Minnesota youth. And so that's really the

0:16:36.760 --> 0:16:38.960
<v Speaker 1>claim that's being made, essentially, that there was some kind

0:16:39.000 --> 0:16:43.280
<v Speaker 1>of fraudulent practice, you know, that there was actually intention

0:16:43.880 --> 0:16:49.040
<v Speaker 1>to lull kids into taking up vaping in the marketing

0:16:49.040 --> 0:16:51.040
<v Speaker 1>that they use, rather than this being a case of

0:16:51.160 --> 0:16:54.720
<v Speaker 1>kids being marketing you know that was intended for adults,

0:16:54.720 --> 0:16:58.680
<v Speaker 1>that in fact, the entire strategy of Jewel was to

0:16:59.040 --> 0:17:02.080
<v Speaker 1>hook a hold new generation of young kids on vaping.

0:17:02.680 --> 0:17:07.040
<v Speaker 1>Jewel has faced thousands of lawsuits across the nation, but

0:17:07.200 --> 0:17:11.080
<v Speaker 1>most have settled, and it said that Minnesota had rejected

0:17:11.080 --> 0:17:14.800
<v Speaker 1>settlement offers similar to those reached with other states, which

0:17:14.840 --> 0:17:18.120
<v Speaker 1>provided quote hundreds of millions of dollars to further combat

0:17:18.240 --> 0:17:23.080
<v Speaker 1>underage use and developed cessation programs in those states. So

0:17:23.400 --> 0:17:26.000
<v Speaker 1>is this for the good of Minnesota or is this,

0:17:26.280 --> 0:17:29.600
<v Speaker 1>you know, for making a name and making a statement

0:17:29.720 --> 0:17:32.400
<v Speaker 1>about these products. I'm just trying to figure out why

0:17:32.400 --> 0:17:36.280
<v Speaker 1>they wouldn't settle. Yeah, it definitely is an aggressive strategy

0:17:36.359 --> 0:17:38.399
<v Speaker 1>here on the part of the state of Minnesota. It

0:17:38.480 --> 0:17:42.280
<v Speaker 1>seems interesting that the state Attorney General, Keith Ellison is

0:17:42.280 --> 0:17:46.160
<v Speaker 1>actually taking the lead in trying this case. He's certainly

0:17:46.200 --> 0:17:50.720
<v Speaker 1>someone who has a colorful political history nationally, and I

0:17:50.760 --> 0:17:54.440
<v Speaker 1>do think there's certainly a question of whether there's some grandstanding,

0:17:54.840 --> 0:17:56.520
<v Speaker 1>you know, whether it's to create a name for him,

0:17:56.640 --> 0:17:59.199
<v Speaker 1>or just to make a statement by taking such an

0:17:59.240 --> 0:18:02.080
<v Speaker 1>aggressive position on this case rather than following the path

0:18:02.200 --> 0:18:05.640
<v Speaker 1>of other states and pursuing a quicker settlement. The State

0:18:05.720 --> 0:18:09.440
<v Speaker 1>of Minnesota hasn't set a number for damages, but Allison

0:18:09.520 --> 0:18:12.680
<v Speaker 1>said that it could be in the ballpark with Minnesota's

0:18:12.720 --> 0:18:16.400
<v Speaker 1>landmarks seven point one billion dollars settlement with the tobacco

0:18:16.440 --> 0:18:20.560
<v Speaker 1>industry in nineteen ninety eight. But wasn't that a bigger

0:18:20.640 --> 0:18:23.240
<v Speaker 1>case the case with the tobacco industry and didn't go

0:18:23.280 --> 0:18:27.800
<v Speaker 1>back decades. It's really hard to imagine how the problem

0:18:27.800 --> 0:18:31.359
<v Speaker 1>of jewel could be taken as equivalent as the nineteen

0:18:31.400 --> 0:18:34.959
<v Speaker 1>ninety eight tobacco settlement, which was really addressing decades and

0:18:35.080 --> 0:18:38.720
<v Speaker 1>decades of actually deceptive marketing where the tobacco industry knew

0:18:38.960 --> 0:18:43.600
<v Speaker 1>how dangerous smoking was to American Health and clearly did

0:18:43.600 --> 0:18:46.360
<v Speaker 1>everything it could to block that information from coming out

0:18:46.480 --> 0:18:48.720
<v Speaker 1>and to keep pushing a product that it knew was deadly.

0:18:48.800 --> 0:18:51.920
<v Speaker 1>So the conduct here happened in a much shorter period

0:18:52.000 --> 0:18:54.040
<v Speaker 1>of time. I don't think Jewel even entered the market

0:18:54.119 --> 0:18:56.640
<v Speaker 1>until twenty sixteen, and I think the main period we're

0:18:56.640 --> 0:18:59.480
<v Speaker 1>focusing on is like twenty sixteen to twenty nineteen. So

0:18:59.520 --> 0:19:02.240
<v Speaker 1>it seems like this should be ultimately a drop in

0:19:02.280 --> 0:19:06.280
<v Speaker 1>the bucket compared to the broader tobacco settlement. And again,

0:19:06.400 --> 0:19:08.600
<v Speaker 1>it does to me raise questions why it's turney General

0:19:08.600 --> 0:19:11.800
<v Speaker 1>Ellison is taking such an aggressive position here. Not to

0:19:11.840 --> 0:19:14.000
<v Speaker 1>say this this isn't a problem, but to suggest that

0:19:14.040 --> 0:19:16.399
<v Speaker 1>it's on par with the whole tobacco crisis seems a

0:19:16.400 --> 0:19:19.760
<v Speaker 1>bit much. If the state of Minnesota did win here,

0:19:20.400 --> 0:19:25.080
<v Speaker 1>would it help other states to get leverage to reach settlements?

0:19:25.200 --> 0:19:28.520
<v Speaker 1>I mean, how would it affect states outside of Minnesota

0:19:28.640 --> 0:19:31.640
<v Speaker 1>or you know, the general population outside of Minnesota. I mean,

0:19:31.680 --> 0:19:36.120
<v Speaker 1>I think if a jury is receptive and gives Minnesota

0:19:36.200 --> 0:19:39.639
<v Speaker 1>give Journey General Ellison a multibillion dollars or even a

0:19:39.680 --> 0:19:44.360
<v Speaker 1>billion dollars settlement here, I think it will embolden other states,

0:19:44.359 --> 0:19:47.920
<v Speaker 1>and it will concern Jewels and potentially Altria and sort

0:19:47.960 --> 0:19:50.680
<v Speaker 1>of increase the numbers that are being paid out, which

0:19:50.680 --> 0:19:53.880
<v Speaker 1>are already significant and in the hundreds of millions dollars.

0:19:54.000 --> 0:19:56.080
<v Speaker 1>So I do think that this case in a sense

0:19:56.240 --> 0:19:59.680
<v Speaker 1>will either strengthen or weaken the assessments on both sides

0:19:59.680 --> 0:20:02.200
<v Speaker 1>of what this case is worse and what this harm

0:20:02.400 --> 0:20:04.080
<v Speaker 1>is worse than what it's going to take to settle

0:20:04.080 --> 0:20:07.040
<v Speaker 1>these cases. So there is exposure here. If Minnesota wins

0:20:07.040 --> 0:20:09.359
<v Speaker 1>this case, there's going to be more states that are

0:20:09.359 --> 0:20:12.680
<v Speaker 1>willing to be more aggressive and push for more, which

0:20:12.720 --> 0:20:15.439
<v Speaker 1>is going to be obviously bad for Jewel and Altria.

0:20:15.760 --> 0:20:20.000
<v Speaker 1>And if Minnesota loses the case, will Jewel in Altria

0:20:20.119 --> 0:20:23.960
<v Speaker 1>be hesitant to settle these cases? Again? To me, it's

0:20:24.000 --> 0:20:25.560
<v Speaker 1>more like I think of it a little bit like

0:20:25.600 --> 0:20:28.680
<v Speaker 1>a stock, right, So if Minnesota loses this case, then

0:20:28.760 --> 0:20:31.760
<v Speaker 1>the value of the claims that other states and jurisdictions

0:20:31.760 --> 0:20:35.119
<v Speaker 1>could make against Jewel against Altria will be a little

0:20:35.119 --> 0:20:38.919
<v Speaker 1>bit lower. And Jewels already shown a desire to settle

0:20:38.920 --> 0:20:41.360
<v Speaker 1>these cases. I just think it may be slightly more

0:20:41.359 --> 0:20:44.239
<v Speaker 1>aggressive and settle for a little bit less, But at

0:20:44.280 --> 0:20:45.920
<v Speaker 1>the end of the day, it seems to me that

0:20:46.080 --> 0:20:50.040
<v Speaker 1>these companies have set aside huge reserves, you know, to

0:20:50.119 --> 0:20:53.160
<v Speaker 1>pay off planes here, not because they agree that there's

0:20:53.200 --> 0:20:56.840
<v Speaker 1>any deceptive marketing, but simply because it's not a popular

0:20:56.880 --> 0:21:01.320
<v Speaker 1>position to be defending marketing that clearly impacted kids and

0:21:01.440 --> 0:21:04.640
<v Speaker 1>drove more kids to vaping. And these companies just need

0:21:04.680 --> 0:21:06.280
<v Speaker 1>to do what they can to get rid of these

0:21:06.280 --> 0:21:09.240
<v Speaker 1>cases as efficiently as they can. So I think this

0:21:09.320 --> 0:21:11.239
<v Speaker 1>case is going to be significant one way or the other.

0:21:11.280 --> 0:21:13.919
<v Speaker 1>It's going to make these cases around the country a

0:21:13.960 --> 0:21:16.160
<v Speaker 1>little bit more valuable or a little bit less valuable.

0:21:16.400 --> 0:21:20.199
<v Speaker 1>Critics of the public nuisance theory say that it allows

0:21:20.280 --> 0:21:25.280
<v Speaker 1>executive officers like state attorneys general to improperly step in

0:21:25.560 --> 0:21:30.320
<v Speaker 1>and replace the role of administrative agencies and lawmakers, which

0:21:30.320 --> 0:21:33.520
<v Speaker 1>should be the ones regulating the industry. Do you agree

0:21:33.560 --> 0:21:36.440
<v Speaker 1>with that or disagree? I mean, I'm not a fan

0:21:36.800 --> 0:21:39.879
<v Speaker 1>of the expansion of public nuisance theory. I think that

0:21:40.200 --> 0:21:43.080
<v Speaker 1>it played a very valuable role in America when it

0:21:43.080 --> 0:21:47.240
<v Speaker 1>came to some of the terrible environmental harms that American

0:21:47.280 --> 0:21:50.159
<v Speaker 1>industry imposed on different parts of the country where we

0:21:50.200 --> 0:21:54.639
<v Speaker 1>saw long term, real environmental costs that were imposed, you know,

0:21:54.720 --> 0:21:57.520
<v Speaker 1>when toxins were spread in particular parts of the country.

0:21:57.560 --> 0:22:02.440
<v Speaker 1>I think these kind of social behavior oriented public nuisance cases,

0:22:02.680 --> 0:22:06.600
<v Speaker 1>as in the case of opioids and here, are really questionable.

0:22:06.960 --> 0:22:09.040
<v Speaker 1>You can see why it's very exciting to states and

0:22:09.119 --> 0:22:11.760
<v Speaker 1>two executive leaders. But I agree that the questions of

0:22:11.800 --> 0:22:14.480
<v Speaker 1>the long term harm and long term responsibility are probably

0:22:14.640 --> 0:22:17.320
<v Speaker 1>going to be addressed more accurately and with a little

0:22:17.320 --> 0:22:21.200
<v Speaker 1>bit less passion and uncertainty in other places than putting

0:22:21.200 --> 0:22:23.879
<v Speaker 1>them before juries. So I agree with that criticism. The

0:22:23.920 --> 0:22:27.480
<v Speaker 1>trials expected to last three weeks, so we'll find out

0:22:27.520 --> 0:22:30.600
<v Speaker 1>just how the public nusance theory works here. You know,

0:22:30.800 --> 0:22:33.199
<v Speaker 1>this case makes me wonder what's the next issue that

0:22:33.200 --> 0:22:38.440
<v Speaker 1>we're going to see where Americans engaging in dangerous, unhealthy behavior.

0:22:38.560 --> 0:22:41.040
<v Speaker 1>It's going to lead to a public nusance theory. I'm

0:22:41.040 --> 0:22:43.280
<v Speaker 1>still waiting for the sugar industry, you know, for the

0:22:43.320 --> 0:22:46.800
<v Speaker 1>first public nuisance case food. I don't know where it's

0:22:46.800 --> 0:22:48.880
<v Speaker 1>going to be. But I think this kind of reflects

0:22:48.880 --> 0:22:51.320
<v Speaker 1>the trend in American society where, you know, on the

0:22:51.359 --> 0:22:53.000
<v Speaker 1>one they had this good to In my opinion, that

0:22:53.040 --> 0:22:57.560
<v Speaker 1>we're thinking about where the dangers two consumers are, you know.

0:22:57.600 --> 0:22:59.760
<v Speaker 1>On the other hand, it's not always easy to get

0:23:00.440 --> 0:23:04.359
<v Speaker 1>exactly who's to blame, Thanks Harry. That's healthcare attorney Harry

0:23:04.400 --> 0:23:10.600
<v Speaker 1>Nelson of Nelson Hardeman Madison Square Garden Entertainment can band

0:23:10.760 --> 0:23:15.320
<v Speaker 1>lawyers suing the company from attending concerts and theatrical performances

0:23:15.359 --> 0:23:18.840
<v Speaker 1>at its venues, even if they have valid tickets. That's

0:23:18.840 --> 0:23:22.320
<v Speaker 1>according to a New York Appeals Court ruling. James Dolan,

0:23:22.560 --> 0:23:26.840
<v Speaker 1>chairman of MSG, admitted that they use facial recognition technology

0:23:27.160 --> 0:23:30.840
<v Speaker 1>to prevent lawyers suing them from attending events, and explained

0:23:30.920 --> 0:23:34.120
<v Speaker 1>why on Good Day New York in January. But look

0:23:34.119 --> 0:23:36.560
<v Speaker 1>at it this way, right, if you own the bakery

0:23:36.800 --> 0:23:41.000
<v Speaker 1>or a restaurant, right, and you know someone comes in

0:23:41.040 --> 0:23:43.080
<v Speaker 1>and buys bread from you, and then the next day

0:23:43.359 --> 0:23:46.360
<v Speaker 1>they serve you with a lawsuit because they hated your bread. Right,

0:23:46.440 --> 0:23:49.560
<v Speaker 1>they said something happened to them with a center. Then

0:23:49.600 --> 0:23:52.359
<v Speaker 1>the next day they show up at your bakery again.

0:23:52.600 --> 0:23:55.159
<v Speaker 1>I'd like to buy some more bread, right, would you

0:23:55.200 --> 0:23:58.159
<v Speaker 1>sell them the bread? The court did say MSG is

0:23:58.240 --> 0:24:01.800
<v Speaker 1>liable to pay five hundred dollars every time it refuses

0:24:01.840 --> 0:24:05.200
<v Speaker 1>access to a ticket holder joining me as sid Rao,

0:24:05.400 --> 0:24:09.320
<v Speaker 1>a partner at Romano Law. The appellate Court reversed an

0:24:09.359 --> 0:24:13.080
<v Speaker 1>injunction against MSG that a judge had issued. Tell us

0:24:13.080 --> 0:24:17.480
<v Speaker 1>about that injunction. There was an injunction granted to the plaintiffs,

0:24:17.480 --> 0:24:22.120
<v Speaker 1>but it was extremely narrow. So the court's injunction did

0:24:22.240 --> 0:24:26.600
<v Speaker 1>not prohibit Madison Square Garden, for example, from revoking tickets.

0:24:26.760 --> 0:24:30.240
<v Speaker 1>It didn't prohibit Madison Square Garden from refusing to sell

0:24:30.280 --> 0:24:34.280
<v Speaker 1>tickets to lawyers or law firms involved in litigations against

0:24:34.320 --> 0:24:37.480
<v Speaker 1>the arena or against any of their assiliated parties. The

0:24:37.560 --> 0:24:41.120
<v Speaker 1>only thing the injunction prevented was that the arena could

0:24:41.119 --> 0:24:44.159
<v Speaker 1>not turn people away at the time of the event

0:24:44.280 --> 0:24:47.480
<v Speaker 1>or a reasonable time before who had valid tickets. Let's

0:24:47.520 --> 0:24:49.720
<v Speaker 1>say I'm the lead plaintiff, I'm partner at the firm

0:24:49.800 --> 0:24:51.879
<v Speaker 1>Larry Hutcher, and I have a ticket, and I go

0:24:52.000 --> 0:24:53.800
<v Speaker 1>to MSG on the day of the event and I

0:24:53.880 --> 0:24:57.080
<v Speaker 1>present it. MSG is then joined from turning me away.

0:24:57.280 --> 0:24:59.560
<v Speaker 1>But that's it. Tell us why I knew your Kapel's

0:24:59.640 --> 0:25:06.600
<v Speaker 1>Court overturned the judges preliminary injunction. Ultimately, the issue that

0:25:06.640 --> 0:25:09.520
<v Speaker 1>the decision turned on the appeals decision, and the reason

0:25:09.600 --> 0:25:13.280
<v Speaker 1>why the appellate Court vacated the injunction was really just

0:25:13.320 --> 0:25:17.959
<v Speaker 1>a careful statutory construction exercise. So Civil rights Law section

0:25:18.040 --> 0:25:22.000
<v Speaker 1>forty B was the basis for the lower court's injunction,

0:25:22.160 --> 0:25:25.520
<v Speaker 1>and that is the statue that prohibits venues from turning

0:25:25.520 --> 0:25:28.720
<v Speaker 1>away holders of valid tickets essentially at the door. The

0:25:28.800 --> 0:25:32.240
<v Speaker 1>problem for the plaintiffs for is that the next section

0:25:32.280 --> 0:25:36.359
<v Speaker 1>of the law, section forty one, prescribes a remedy for violation,

0:25:36.680 --> 0:25:39.280
<v Speaker 1>and it's a financial remedy and starting at one hundred

0:25:39.320 --> 0:25:41.920
<v Speaker 1>dollars in going to five hundred dollars. Now, the argument

0:25:42.119 --> 0:25:44.840
<v Speaker 1>in the lower court did address this, you know, the

0:25:44.920 --> 0:25:47.800
<v Speaker 1>question really is is that the sole remedy, and the

0:25:47.920 --> 0:25:51.400
<v Speaker 1>lower court was persuaded that even if the statute prescribes

0:25:51.480 --> 0:25:54.359
<v Speaker 1>a remedy, if there was a chance of reparable harm,

0:25:54.600 --> 0:25:57.879
<v Speaker 1>the court still had power to intervene because of the

0:25:57.920 --> 0:26:02.440
<v Speaker 1>possibility of reparable harm. That's where the appellate Court differed

0:26:02.560 --> 0:26:05.879
<v Speaker 1>in its judgment. And actually in many other respects, the

0:26:05.960 --> 0:26:08.679
<v Speaker 1>Appellate Court agrees and kept saying, you know, the motion

0:26:08.720 --> 0:26:12.359
<v Speaker 1>court properly concluded, but in this one respect, the court

0:26:12.480 --> 0:26:16.560
<v Speaker 1>said the only remedy for violation of the section of

0:26:16.560 --> 0:26:19.639
<v Speaker 1>the civil rights law is the monetary remedy. That is,

0:26:19.680 --> 0:26:23.760
<v Speaker 1>the court interpreted the legislature's decision to provide a remedy

0:26:23.880 --> 0:26:27.440
<v Speaker 1>as excluding other potential remedies. And what the appellate court

0:26:27.520 --> 0:26:30.720
<v Speaker 1>was saying is you can't get an injunction. Your damages

0:26:30.800 --> 0:26:33.520
<v Speaker 1>for that violation are limited to five hundred dollars, and

0:26:33.640 --> 0:26:36.679
<v Speaker 1>because that's a monetary remedy, there's no injunctor really, So

0:26:36.800 --> 0:26:39.520
<v Speaker 1>that's why they vacated the injunction, and that kind of

0:26:39.600 --> 0:26:42.320
<v Speaker 1>leaves the plaintiffs I think, you know in alert here.

0:26:42.560 --> 0:26:44.760
<v Speaker 1>You know, a five hundred dollar penalty is probably not

0:26:44.880 --> 0:26:48.520
<v Speaker 1>strong enough disincentive for Madison Square Regarden to reevaluate its policy.

0:26:48.920 --> 0:26:53.480
<v Speaker 1>Attorney General Letitia James is investigating this. The office said

0:26:53.520 --> 0:26:56.560
<v Speaker 1>in a letter to MSG that the ban and the

0:26:56.600 --> 0:27:01.160
<v Speaker 1>company's use of facial recognition technology to force it, may

0:27:01.280 --> 0:27:05.520
<v Speaker 1>violate anti discrimination laws and may dissuade lawyers from taking

0:27:05.560 --> 0:27:09.800
<v Speaker 1>on cases such as sexual harassment or job discrimination claims

0:27:09.840 --> 0:27:14.920
<v Speaker 1>against the company. Quote MSG, Entertainment cannot fight their legal

0:27:14.960 --> 0:27:18.080
<v Speaker 1>battles in their own arenas, so she could bring a

0:27:18.119 --> 0:27:21.280
<v Speaker 1>case that's absolutely correct, and I love that quote. I

0:27:21.320 --> 0:27:23.400
<v Speaker 1>think this is really getting to the heart of it

0:27:23.520 --> 0:27:27.040
<v Speaker 1>right because we're talking about statutory language and parsing technicalities.

0:27:27.280 --> 0:27:31.040
<v Speaker 1>But the real issue here is that the facial recognition

0:27:31.119 --> 0:27:35.480
<v Speaker 1>technology is fairly intrusive. There's this privacy and data concern

0:27:35.520 --> 0:27:38.720
<v Speaker 1>around the facial recognition technology, especially in an era where

0:27:39.119 --> 0:27:41.679
<v Speaker 1>there's technology available to parse large amounts of data, and

0:27:41.680 --> 0:27:45.000
<v Speaker 1>then there's a public policy concerned with what we think

0:27:45.000 --> 0:27:48.560
<v Speaker 1>the real purposes behind Madison Square Gardens policy is to

0:27:48.720 --> 0:27:53.159
<v Speaker 1>disincentivize litigation or maybe to sort of tunitively act towards

0:27:53.200 --> 0:27:56.840
<v Speaker 1>lawyers who have the huts by issue, and that really

0:27:56.920 --> 0:28:00.399
<v Speaker 1>is against public policy. Any time you're dealing with system

0:28:00.440 --> 0:28:03.520
<v Speaker 1>that uses discretion, and we are here Arena has discretion

0:28:03.560 --> 0:28:06.439
<v Speaker 1>to turn people away, there's a possibility of discrimination. I

0:28:06.480 --> 0:28:09.040
<v Speaker 1>think that that's a very legitimate concern that the Attorney

0:28:09.080 --> 0:28:12.600
<v Speaker 1>General topic is raising, which is you are creating policies

0:28:12.640 --> 0:28:15.720
<v Speaker 1>that enable people to exercise a fairly large amount of

0:28:15.720 --> 0:28:19.440
<v Speaker 1>discretion to turn patrons away. What's to say that that policy,

0:28:19.560 --> 0:28:21.840
<v Speaker 1>which now applies to lawyers won't apply to some other

0:28:21.880 --> 0:28:25.040
<v Speaker 1>group in the future. Thanks sid that's sid Rao of

0:28:25.160 --> 0:28:27.639
<v Speaker 1>Romano Law. And that's it for this edition of The

0:28:27.680 --> 0:28:30.639
<v Speaker 1>Bloomberg Law Show. Remember you can always get the latest

0:28:30.720 --> 0:28:33.800
<v Speaker 1>legal news on our Bloomberg Law Podcast. You can find

0:28:33.840 --> 0:28:38.360
<v Speaker 1>them on Apple Podcasts, Spotify, and at www dot bloomberg

0:28:38.480 --> 0:28:42.280
<v Speaker 1>dot com slash podcast Slash Law, And remember to tune

0:28:42.280 --> 0:28:45.080
<v Speaker 1>into The Bloomberg Law Show every week night at ten

0:28:45.160 --> 0:28:48.920
<v Speaker 1>pm Wall Street Time. I'm June Grosso and you're listening

0:28:49.000 --> 0:28:49.720
<v Speaker 1>to Bloomberg