1 00:00:03,200 --> 00:00:08,000 Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio. 2 00:00:10,600 --> 00:00:14,600 Speaker 2: Honorable the Chief Justice and the Associate Justices of the 3 00:00:14,600 --> 00:00:18,800 Speaker 2: Supreme Court of the United States. Oh yay, oh yay, 4 00:00:19,360 --> 00:00:22,959 Speaker 2: oh yay. All persons having business before the Honorable the 5 00:00:23,040 --> 00:00:26,280 Speaker 2: Supreme Court of the United States are admonished to give 6 00:00:26,320 --> 00:00:28,440 Speaker 2: their attention for the Court is now sitting. 7 00:00:28,720 --> 00:00:32,400 Speaker 1: The Supreme Court's new term begins on Monday, as always, 8 00:00:32,440 --> 00:00:35,960 Speaker 1: the first Monday in October, but unlike other terms, the 9 00:00:36,240 --> 00:00:38,960 Speaker 1: justices are returning to the bench under a cloud of 10 00:00:39,040 --> 00:00:42,599 Speaker 1: ethics controversies and with public opinion of the Court at 11 00:00:42,600 --> 00:00:46,479 Speaker 1: a historic low. According to a Gallup pole released today, 12 00:00:47,040 --> 00:00:49,879 Speaker 1: just forty one percent of Americans say they approve of 13 00:00:49,920 --> 00:00:52,680 Speaker 1: how the Court is handling its job, while fifty eight 14 00:00:52,720 --> 00:00:56,800 Speaker 1: percent disapprove. And the Justices will be diving back into 15 00:00:56,800 --> 00:01:02,480 Speaker 1: the culture wars, tackling controversial issues involving gun rights, voting rights, 16 00:01:02,560 --> 00:01:06,399 Speaker 1: agency power, and social media. My guest is Gregory gar 17 00:01:06,600 --> 00:01:09,560 Speaker 1: former Solicitor General of the United States and now a 18 00:01:09,560 --> 00:01:13,000 Speaker 1: partner at Latham and Watkins. It's great to have you here. Greg. 19 00:01:13,120 --> 00:01:17,160 Speaker 1: Let's start our now annual review of the term with 20 00:01:17,520 --> 00:01:21,680 Speaker 1: one of the most watched and perhaps consequential cases the 21 00:01:21,680 --> 00:01:25,200 Speaker 1: first gun rights dispute the justices have taken up since 22 00:01:25,319 --> 00:01:29,640 Speaker 1: the landmark decision last year establishing a constitutional right to 23 00:01:29,720 --> 00:01:34,080 Speaker 1: carry a handgun in public. Tell Us about United States versus. 24 00:01:33,760 --> 00:01:37,520 Speaker 3: Raheemi, another big Second Amendment case and an opportunity for 25 00:01:37,600 --> 00:01:41,280 Speaker 3: the Court to revisit the historical approach to adopted a 26 00:01:41,280 --> 00:01:44,440 Speaker 3: couple of years ago in the Bruin case involving a 27 00:01:44,560 --> 00:01:47,400 Speaker 3: New York law that restricted the right to carry firearms 28 00:01:47,440 --> 00:01:51,559 Speaker 3: outside of the home. And this case involves a challenge 29 00:01:51,600 --> 00:01:56,640 Speaker 3: to a restraining order that prevents a domestic violence abuser 30 00:01:56,800 --> 00:02:01,880 Speaker 3: from possessing handguns under federal law. And what's interesting about 31 00:02:01,880 --> 00:02:05,400 Speaker 3: this case is beginning with the Heller decision ten years 32 00:02:05,520 --> 00:02:08,520 Speaker 3: or so ago, where they recognized the individual right to 33 00:02:08,680 --> 00:02:11,200 Speaker 3: pair of firearms in the home. The Court had always 34 00:02:11,320 --> 00:02:15,079 Speaker 3: focused on the rights of what it called in Heller 35 00:02:15,320 --> 00:02:21,520 Speaker 3: law abiding responsible citizens to possess and carry firearms. In 36 00:02:21,560 --> 00:02:26,880 Speaker 3: this case, the challenger was convicted of domestic abuse after 37 00:02:27,360 --> 00:02:30,560 Speaker 3: striking his girlfriend and doing other terrible things, and then 38 00:02:30,840 --> 00:02:34,000 Speaker 3: was prohibited under federal law from possession of firearm. And 39 00:02:34,040 --> 00:02:38,120 Speaker 3: he's bringing a second Amendment challenge to that, which, if 40 00:02:38,160 --> 00:02:41,799 Speaker 3: he's successful, would un all likelihood call into question a 41 00:02:41,880 --> 00:02:45,960 Speaker 3: number of other firearm restrictions that apply to dangerous people 42 00:02:46,160 --> 00:02:49,120 Speaker 3: were potentially even mentally ill people. 43 00:02:49,440 --> 00:02:52,840 Speaker 1: The Fifth Circuit said that while Rehimi was hardly a 44 00:02:52,880 --> 00:02:57,480 Speaker 1: model citizen, he was entitled to Second Amendment protections. 45 00:02:57,160 --> 00:02:59,280 Speaker 3: And he looked at it through the lens of the courts. 46 00:02:59,760 --> 00:03:03,040 Speaker 3: His historical analysis established a couple of years ago, which 47 00:03:03,120 --> 00:03:06,760 Speaker 3: requires the courts to go back and line up the 48 00:03:06,800 --> 00:03:13,000 Speaker 3: firearms restriction against historical laws going back to the eighteenth century. 49 00:03:13,040 --> 00:03:16,639 Speaker 3: And oftentimes in these cases there's really no perfect analog 50 00:03:17,320 --> 00:03:21,280 Speaker 3: given the way in which guns and restrictions has evolved 51 00:03:21,360 --> 00:03:23,920 Speaker 3: over time. And so, you know, one of the questions 52 00:03:23,919 --> 00:03:26,079 Speaker 3: at the heart of the case is perhaps the court 53 00:03:26,120 --> 00:03:28,400 Speaker 3: will give us some more guidance on how to apply 54 00:03:28,440 --> 00:03:31,760 Speaker 3: that historical analysis. And in this case, the government has 55 00:03:31,919 --> 00:03:35,320 Speaker 3: strenuously argued that this sort of restriction really is in 56 00:03:35,360 --> 00:03:39,800 Speaker 3: line with historical restrictions prohibiting those who are deemed to 57 00:03:39,840 --> 00:03:43,160 Speaker 3: be dangerous from possessing guns. But that's really the numb 58 00:03:43,160 --> 00:03:46,680 Speaker 3: of its due before the court is a historical argument 59 00:03:46,720 --> 00:03:52,120 Speaker 3: about whether this restriction is analogous to eighteenth century restrictions 60 00:03:52,200 --> 00:03:54,520 Speaker 3: on gun possession or not. 61 00:03:55,120 --> 00:03:57,480 Speaker 1: And here you have this listener general saying, well, there 62 00:03:57,480 --> 00:04:01,279 Speaker 1: are some colonial and early state laws that allowed disarming 63 00:04:01,520 --> 00:04:05,600 Speaker 1: dangerous individuals, and Raheemi's lawyers saying that none of those 64 00:04:05,680 --> 00:04:08,320 Speaker 1: laws applied. They seem to want a law exactly on 65 00:04:08,520 --> 00:04:13,640 Speaker 1: point this historical analysis. In this context, where weapons are 66 00:04:13,680 --> 00:04:16,560 Speaker 1: so different and times are so different, the courts have 67 00:04:16,680 --> 00:04:18,240 Speaker 1: really struggled with it, haven't they. 68 00:04:18,760 --> 00:04:21,320 Speaker 3: Yeah, they have, And we've seen a lot of cases 69 00:04:21,440 --> 00:04:23,520 Speaker 3: in the wake of the Brewin decision a couple of 70 00:04:23,600 --> 00:04:28,080 Speaker 3: years ago, cases challenging all sorts of restrictions that seem 71 00:04:28,120 --> 00:04:31,720 Speaker 3: to have survived the Heller decision ten years back, recognizing 72 00:04:31,760 --> 00:04:35,400 Speaker 3: this individual right. And so I think as important as 73 00:04:35,400 --> 00:04:38,440 Speaker 3: this specific issue is in this case, particularly for the 74 00:04:38,520 --> 00:04:42,239 Speaker 3: victims of domestic abuse, I think the focus of the 75 00:04:42,320 --> 00:04:44,320 Speaker 3: court's resolution is going to be to see if they 76 00:04:44,320 --> 00:04:47,800 Speaker 3: can fine tune this historical analysis to give courts more 77 00:04:47,800 --> 00:04:50,040 Speaker 3: guidance and considering. 78 00:04:49,560 --> 00:04:54,200 Speaker 1: These challenges, and this case could affect state laws as well. 79 00:04:54,480 --> 00:04:57,280 Speaker 1: An Illinois led group back in the administration, so that 80 00:04:57,360 --> 00:05:02,000 Speaker 1: almost every state either requires permits courts to limit firearm 81 00:05:02,080 --> 00:05:05,360 Speaker 1: access for people's subject to domestic restraining orders. 82 00:05:05,880 --> 00:05:08,640 Speaker 3: Yeah, that's exactly right. It would apply to state laws, 83 00:05:08,920 --> 00:05:12,640 Speaker 3: local laws, and that's obviously one of the government's arguments. 84 00:05:12,880 --> 00:05:15,279 Speaker 3: And the court took this case right up on the 85 00:05:15,320 --> 00:05:20,919 Speaker 3: government's petition, I think, understanding the general importance of the 86 00:05:20,960 --> 00:05:23,720 Speaker 3: issue and the need to sort of jump back in 87 00:05:23,760 --> 00:05:26,600 Speaker 3: and clarify its law in this area. So this is 88 00:05:26,720 --> 00:05:29,000 Speaker 3: definitely one that we would want to follow. 89 00:05:29,480 --> 00:05:33,080 Speaker 1: Let's turn now to another high profile redistricting case to 90 00:05:33,120 --> 00:05:37,159 Speaker 1: come before the court, Alexander versus South Carolina Conference of 91 00:05:37,200 --> 00:05:38,360 Speaker 1: the NAACP. 92 00:05:39,200 --> 00:05:42,920 Speaker 3: Yeah. So one of the surprises last term was the 93 00:05:42,920 --> 00:05:46,480 Speaker 3: case out of Alabama involving a challenge to a registricting 94 00:05:46,600 --> 00:05:50,440 Speaker 3: plan in which a majority of the court actually agree 95 00:05:50,480 --> 00:05:53,559 Speaker 3: with the lower court that the state had improperly taken 96 00:05:53,680 --> 00:05:56,440 Speaker 3: race into account and drawing the districts. And so here 97 00:05:56,480 --> 00:05:58,680 Speaker 3: we go again. This is a challenge out of South 98 00:05:58,720 --> 00:06:02,480 Speaker 3: Carolina in which our court had found that the state 99 00:06:02,560 --> 00:06:07,839 Speaker 3: improperly used race to draw this district which in order 100 00:06:07,880 --> 00:06:11,159 Speaker 3: to favor Republicans. And what's sort of interesting about this 101 00:06:11,320 --> 00:06:16,080 Speaker 3: case is the interplay between race in politics. There's an 102 00:06:16,160 --> 00:06:20,640 Speaker 3: argument that race was used as a proxy for political 103 00:06:20,680 --> 00:06:24,560 Speaker 3: affiliation here, and that sort of brings into play two 104 00:06:24,560 --> 00:06:28,640 Speaker 3: different doctrines in the Supreme Courts jurisprudence, one in which 105 00:06:28,680 --> 00:06:33,120 Speaker 3: the Court recently held that challenges to redistricting on political grounds, 106 00:06:33,200 --> 00:06:37,919 Speaker 3: so called partisan gerrymanders, actually not justiciable, and the second, 107 00:06:37,960 --> 00:06:41,520 Speaker 3: in which the Court has always considered challenges that race 108 00:06:41,839 --> 00:06:45,240 Speaker 3: was improperly taken into account and drawing district lines. And 109 00:06:45,279 --> 00:06:48,159 Speaker 3: so this case presents an opportunity to quot the court 110 00:06:48,160 --> 00:06:50,400 Speaker 3: to sort of balance those two different inquiries. 111 00:06:50,920 --> 00:06:54,280 Speaker 1: So as you say, Republicans say they were motivated by politics, 112 00:06:54,279 --> 00:06:57,360 Speaker 1: which is permissible, not race, and it seems like it's 113 00:06:57,400 --> 00:07:01,200 Speaker 1: a difficult distinction to make, particularly in this case. 114 00:07:01,800 --> 00:07:04,400 Speaker 3: Yeah, that's exactly right, and that's why I'm sure it's 115 00:07:04,400 --> 00:07:06,479 Speaker 3: one of the reasons that the case is before the 116 00:07:06,520 --> 00:07:09,280 Speaker 3: court now. And again it'll be interesting to see if 117 00:07:09,279 --> 00:07:11,560 Speaker 3: this is one of those cases where maybe the Court 118 00:07:11,600 --> 00:07:13,680 Speaker 3: tacks back to the center, as it did in the 119 00:07:13,720 --> 00:07:17,120 Speaker 3: Alabama case last term. But this will be a difficult one. 120 00:07:17,200 --> 00:07:20,880 Speaker 3: This is obviously delicate issues in the intersection here between 121 00:07:20,960 --> 00:07:22,320 Speaker 3: race and politics. 122 00:07:23,400 --> 00:07:26,400 Speaker 1: That case last term you were talking about, the Alabama 123 00:07:26,480 --> 00:07:29,960 Speaker 1: case came as something of a surprise to many that 124 00:07:30,080 --> 00:07:33,760 Speaker 1: the Court rejected the Republican drawn congressional map in a 125 00:07:33,960 --> 00:07:37,360 Speaker 1: boost to the Voting Rights Act, and some see that 126 00:07:37,440 --> 00:07:39,720 Speaker 1: as a shift in the Court's approach, or at least 127 00:07:39,760 --> 00:07:42,920 Speaker 1: in the two conservative justices who sided with the liberals. 128 00:07:43,160 --> 00:07:46,880 Speaker 1: So will this case show whether that's true or not, 129 00:07:47,040 --> 00:07:48,120 Speaker 1: whether there is a shift. 130 00:07:48,360 --> 00:07:50,920 Speaker 3: It's definitely one to watch June, and I think the 131 00:07:50,960 --> 00:07:53,320 Speaker 3: gun case we just talked about is one as well. 132 00:07:53,880 --> 00:07:56,960 Speaker 3: These are two areas where the more centrist justices in 133 00:07:57,000 --> 00:07:59,920 Speaker 3: the Court, for example, the Chief Justice and Justice cap 134 00:08:00,040 --> 00:08:02,680 Speaker 3: and Awe, have not been as willing to go as 135 00:08:02,680 --> 00:08:05,600 Speaker 3: far as some of the more conservative justices. And that's 136 00:08:05,600 --> 00:08:08,640 Speaker 3: certainly one of the broader themes that we're looking at 137 00:08:08,680 --> 00:08:12,000 Speaker 3: for this term. Is last year we had several decisions 138 00:08:12,000 --> 00:08:14,320 Speaker 3: in which the Court seemed to tack a little bit 139 00:08:14,680 --> 00:08:17,320 Speaker 3: back to the center, and so it'll be interesting to 140 00:08:17,320 --> 00:08:20,000 Speaker 3: see whether that trend follows, or whether the Court will 141 00:08:20,280 --> 00:08:23,679 Speaker 3: proceed on what is otherwise a sort of conservative orbit 142 00:08:23,800 --> 00:08:24,560 Speaker 3: out to the right. 143 00:08:25,280 --> 00:08:29,040 Speaker 1: Next, we have social media meeting the Supreme Court O'Connor, 144 00:08:29,160 --> 00:08:34,199 Speaker 1: Ratcliffe versus. Garnier and Linky versus Freed. Both these cases 145 00:08:34,240 --> 00:08:40,000 Speaker 1: involve public officials blocking constituents who left critical messages on 146 00:08:40,040 --> 00:08:40,920 Speaker 1: their social media. 147 00:08:41,559 --> 00:08:43,360 Speaker 3: Right, so you know, we're seeing more and more of 148 00:08:43,400 --> 00:08:47,400 Speaker 3: these cases where social media intersects with the First Amendment. 149 00:08:47,960 --> 00:08:51,640 Speaker 3: And these are two different cases, one involving two California 150 00:08:51,679 --> 00:08:55,920 Speaker 3: school board members and one involving a city manager in Michigan. 151 00:08:56,440 --> 00:09:00,000 Speaker 3: And all of them had social media accounts Twitter and 152 00:09:00,040 --> 00:09:03,319 Speaker 3: Facebook and the like, which they used in some instances 153 00:09:03,440 --> 00:09:06,760 Speaker 3: to tweet about their public jobs, and when they got 154 00:09:06,760 --> 00:09:10,800 Speaker 3: some criticism from some constituents, they decided to block them 155 00:09:10,880 --> 00:09:13,360 Speaker 3: on their accounts. And the question is whether or not 156 00:09:13,440 --> 00:09:17,440 Speaker 3: that blocking is subject to scrutiny under the First Amendment, 157 00:09:17,920 --> 00:09:20,560 Speaker 3: which boils down in this case to a question whether 158 00:09:20,640 --> 00:09:24,360 Speaker 3: or not the blocking is actually state action subject to 159 00:09:24,400 --> 00:09:25,160 Speaker 3: the First Amendment. 160 00:09:25,720 --> 00:09:28,720 Speaker 1: And the Sixth and the Ninth Circuits came to different 161 00:09:28,800 --> 00:09:30,760 Speaker 1: conclusions on that right. 162 00:09:31,080 --> 00:09:34,080 Speaker 3: They split on that and the Ninth Circuit held that 163 00:09:34,120 --> 00:09:37,040 Speaker 3: the blocking was state action and a violation of the 164 00:09:37,040 --> 00:09:40,480 Speaker 3: First Amendment, and the Sixth Circuit came out the other way. 165 00:09:40,559 --> 00:09:43,400 Speaker 3: And looks these cases may turn in part on the 166 00:09:43,440 --> 00:09:47,520 Speaker 3: particular factual circumstances. For example, the extent to which the 167 00:09:47,559 --> 00:09:53,000 Speaker 3: public officials used their accounts for public purposes. The officials 168 00:09:53,080 --> 00:09:55,520 Speaker 3: in the cases are arguing that they actually were more 169 00:09:55,559 --> 00:09:58,760 Speaker 3: private than public, and so they shouldn't be considered state action. 170 00:09:58,960 --> 00:10:03,920 Speaker 3: But then you can see social media interacting with politics 171 00:10:04,040 --> 00:10:07,200 Speaker 3: and public life and finance way into the courts, And 172 00:10:07,240 --> 00:10:09,199 Speaker 3: there are other cases out there, and so this is 173 00:10:09,240 --> 00:10:12,240 Speaker 3: something we're going to see more of, is the Supreme 174 00:10:12,280 --> 00:10:16,400 Speaker 3: Court and other courts grapple with the intersection between social 175 00:10:16,440 --> 00:10:17,480 Speaker 3: media and First Amendment. 176 00:10:17,520 --> 00:10:20,520 Speaker 1: Right In twenty twenty one, when the Justice is turned 177 00:10:20,520 --> 00:10:24,720 Speaker 1: down a petition from former President Donald Trump presenting a 178 00:10:24,760 --> 00:10:28,880 Speaker 1: similar issue, Justice Clarence Thomas wrote an opinion saying that 179 00:10:28,920 --> 00:10:33,319 Speaker 1: the case quote highlights the principle legal difficulty that surrounds 180 00:10:33,400 --> 00:10:38,320 Speaker 1: digital platforms, namely that applying old doctrines to new digital 181 00:10:38,360 --> 00:10:43,640 Speaker 1: platforms is rarely straightforward. That struck me coming from Justice Thomas, 182 00:10:43,640 --> 00:10:46,240 Speaker 1: who wrote the decision in the New York gun case 183 00:10:46,280 --> 00:10:47,760 Speaker 1: we were talking about. 184 00:10:47,760 --> 00:10:50,200 Speaker 3: That's exactly right. This is the case where they're looking 185 00:10:50,280 --> 00:10:53,280 Speaker 3: at the future instead of the past and struggling to 186 00:10:53,320 --> 00:10:56,959 Speaker 3: apply these doctrines. And I'm sure that that'll be one 187 00:10:57,000 --> 00:10:59,360 Speaker 3: of the issues at the forefront of this decision. 188 00:10:59,559 --> 00:11:02,920 Speaker 1: Coming up next, I'll continue this conversation with Gregory Garr 189 00:11:03,080 --> 00:11:06,199 Speaker 1: of Latham and Watkins and we'll talk about the court's 190 00:11:06,200 --> 00:11:09,960 Speaker 1: focus on the administrative state this term and some cases 191 00:11:10,360 --> 00:11:15,120 Speaker 1: targeting regulatory agencies. I'm June Grosso and you're listening to Bloomberg. 192 00:11:15,679 --> 00:11:19,199 Speaker 1: Several cases on administrative law coming before the Supreme Court 193 00:11:19,280 --> 00:11:22,320 Speaker 1: this term may seem a little wonky for most people, 194 00:11:22,600 --> 00:11:26,000 Speaker 1: but they could transform the way the federal government operates 195 00:11:26,040 --> 00:11:30,120 Speaker 1: and alter the power dynamics between the branches. The cases 196 00:11:30,240 --> 00:11:34,360 Speaker 1: target the power of regulatory agencies before a conservative court 197 00:11:34,400 --> 00:11:38,480 Speaker 1: whose recent decisions have overridden the authority of agencies and 198 00:11:38,600 --> 00:11:42,160 Speaker 1: reined in the so called administrative state. I've been talking 199 00:11:42,160 --> 00:11:45,000 Speaker 1: to Gregory gar a partner at Latham and Watkins and 200 00:11:45,040 --> 00:11:48,360 Speaker 1: the former US Solicitor General. Greg Now we're onto the 201 00:11:48,400 --> 00:11:54,320 Speaker 1: regulatory area. Let's discuss Loper Bright Enterprises versus Raymondo, where 202 00:11:54,320 --> 00:11:58,000 Speaker 1: a thirty nine year old precedent, the Chevron Doctrine is 203 00:11:58,120 --> 00:12:00,480 Speaker 1: on the line. Will you explain Chevron? 204 00:12:00,960 --> 00:12:04,120 Speaker 3: Sure? So. Chevron doctrine is one of the most important 205 00:12:04,360 --> 00:12:08,240 Speaker 3: doctrines of administrative law that has been around since nineteen 206 00:12:08,320 --> 00:12:11,760 Speaker 3: eighty four, and basically what it says, is that where 207 00:12:11,800 --> 00:12:14,880 Speaker 3: you have a statute that is ambiguous and doesn't speak 208 00:12:14,920 --> 00:12:19,839 Speaker 3: directly to an issue, that the courts would give deference 209 00:12:20,000 --> 00:12:24,720 Speaker 3: to the administrative agencies interpretation of the statute. So this 210 00:12:24,880 --> 00:12:28,960 Speaker 3: case involves a law that requires fishing boats in the 211 00:12:29,000 --> 00:12:33,400 Speaker 3: North Atlantic to have observers to collect data and the like. 212 00:12:33,880 --> 00:12:36,360 Speaker 3: And the question is whether the fishing boats or the 213 00:12:36,360 --> 00:12:39,679 Speaker 3: government has to pay for those observers. And the statute 214 00:12:39,720 --> 00:12:44,000 Speaker 3: doesn't address that question, but the agency, the National Marine 215 00:12:44,000 --> 00:12:48,320 Speaker 3: Fisheries Service, interpreted it to require the fishing boats to 216 00:12:48,800 --> 00:12:52,080 Speaker 3: pay for these observers, and the lower court said that 217 00:12:52,280 --> 00:12:54,920 Speaker 3: was a reasonable interpretation. So the courts would refer to 218 00:12:54,960 --> 00:12:58,520 Speaker 3: it under Chevron. And the Chevron doctrine has come under 219 00:12:58,559 --> 00:13:03,080 Speaker 3: assault by the Conservatives as being contrary to the longstanding 220 00:13:03,240 --> 00:13:06,160 Speaker 3: central principle that it's the duty of the courts to 221 00:13:06,240 --> 00:13:08,720 Speaker 3: say what the law is. And so there's a great 222 00:13:08,760 --> 00:13:11,520 Speaker 3: concern that they've sort of dedicated that task to the 223 00:13:11,559 --> 00:13:15,360 Speaker 3: administrative agencies. And there have been many justice maybe five 224 00:13:15,400 --> 00:13:18,520 Speaker 3: in this case, who'd be willing to overturn the Chevron 225 00:13:18,600 --> 00:13:21,679 Speaker 3: doctor and then give the courts the sort of frontline 226 00:13:21,760 --> 00:13:25,559 Speaker 3: role in interpreting what statutes mean without administrative difference. 227 00:13:26,000 --> 00:13:29,439 Speaker 1: So has the Supreme Court been chipping away at Chevron 228 00:13:29,520 --> 00:13:33,600 Speaker 1: in recent years? So some say if they overturned Chevron, 229 00:13:33,640 --> 00:13:34,960 Speaker 1: it wouldn't be that big a deal. 230 00:13:35,559 --> 00:13:38,320 Speaker 3: It would be a big deal doc trintally, But you're 231 00:13:38,360 --> 00:13:41,280 Speaker 3: exactly right. They've been chipping away at it, and then 232 00:13:41,400 --> 00:13:44,640 Speaker 3: you know someone interestingly, they've actually just been ignoring it, 233 00:13:44,800 --> 00:13:47,400 Speaker 3: giving the cold shoulder the last few years, where they 234 00:13:47,440 --> 00:13:49,760 Speaker 3: won't even cite it in cases where it really is 235 00:13:49,800 --> 00:13:53,240 Speaker 3: directly implicated. So, in that sense, doing away with the 236 00:13:53,280 --> 00:13:56,640 Speaker 3: doctrine wouldn't make a big practical shift, but doctrinally it 237 00:13:56,679 --> 00:13:59,360 Speaker 3: would be a big shift, and in line with one 238 00:13:59,400 --> 00:14:02,200 Speaker 3: of the I think big things we see from this 239 00:14:02,280 --> 00:14:06,840 Speaker 3: conservative court, which is reconsidering the relationship among the branches 240 00:14:06,880 --> 00:14:10,280 Speaker 3: with respect to the administrative state and scaling back on 241 00:14:10,559 --> 00:14:13,960 Speaker 3: different doctrines that has empowered the administrative state. 242 00:14:14,679 --> 00:14:18,200 Speaker 1: I believe it's been four times since twenty nineteen that 243 00:14:18,280 --> 00:14:23,520 Speaker 1: the Court has been asked to revisit Chevron and hasn't done. 244 00:14:23,560 --> 00:14:26,280 Speaker 1: So do you think it will reverse Chevron in this case? 245 00:14:26,360 --> 00:14:29,720 Speaker 1: You mentioned that there are perhaps five justices willing to 246 00:14:29,760 --> 00:14:32,320 Speaker 1: do that, So this case feels different. 247 00:14:32,560 --> 00:14:35,440 Speaker 3: The court granted curcherari and the question of whether or 248 00:14:35,480 --> 00:14:38,880 Speaker 3: not Chevron should be overruled. If you connect the dots, 249 00:14:38,920 --> 00:14:41,240 Speaker 3: over the last few years, it seems as though the 250 00:14:41,240 --> 00:14:46,320 Speaker 3: Court has tilting towards the direction of actually overruling Chevron, 251 00:14:46,720 --> 00:14:48,800 Speaker 3: but it remains to be seen whether or not they 252 00:14:48,840 --> 00:14:52,360 Speaker 3: take that step. And that the broader question of stereodcisis 253 00:14:52,400 --> 00:14:55,440 Speaker 3: is something that we've seen over the last several years, 254 00:14:55,520 --> 00:14:59,320 Speaker 3: and the justices have very strongly held in different views 255 00:14:59,360 --> 00:15:02,720 Speaker 3: about when or whether it's appropriate to overrule a case. 256 00:15:03,000 --> 00:15:05,280 Speaker 3: But in this case, it does seem as the Chevron 257 00:15:05,400 --> 00:15:06,480 Speaker 3: is on the shopping block. 258 00:15:06,720 --> 00:15:09,120 Speaker 1: I wonder if they were struggling with that while they 259 00:15:09,160 --> 00:15:11,960 Speaker 1: were deciding whether to take the case or not. Because 260 00:15:12,360 --> 00:15:14,640 Speaker 1: it took a long time to decide how to handle 261 00:15:14,680 --> 00:15:17,520 Speaker 1: the case. They scheduled it for potential discussion at five 262 00:15:17,600 --> 00:15:21,880 Speaker 1: private conferences before announcing that they would take the case. 263 00:15:22,080 --> 00:15:25,520 Speaker 3: So that's exactly right. You know. Obviously the decision to 264 00:15:25,920 --> 00:15:28,040 Speaker 3: take the case was not a good one for the 265 00:15:28,040 --> 00:15:31,200 Speaker 3: government ultimately, but the court does have the fallback option 266 00:15:31,320 --> 00:15:34,520 Speaker 3: of just saying that the agency's interpretation is unreasonable. In 267 00:15:34,520 --> 00:15:37,120 Speaker 3: this case, but really the focus is on the broader 268 00:15:37,240 --> 00:15:39,680 Speaker 3: question of whether or not the Chevron doctrine is really 269 00:15:39,720 --> 00:15:42,520 Speaker 3: consistent with our legal principles in practice. 270 00:15:42,760 --> 00:15:45,960 Speaker 1: Do you agree with this that critics of big government 271 00:15:46,000 --> 00:15:50,200 Speaker 1: have targeted the Chevron doctrine much as anti abortion groups 272 00:15:50,600 --> 00:15:52,040 Speaker 1: targeted Roe v. Wade. 273 00:15:52,280 --> 00:15:55,080 Speaker 3: I think that's a fair analogy, June. I mean, it's 274 00:15:55,120 --> 00:15:57,840 Speaker 3: really on the short list of cases that you know 275 00:15:57,880 --> 00:16:01,120 Speaker 3: would be on a wish list that this more conservative 276 00:16:01,160 --> 00:16:04,880 Speaker 3: court would overrule. And it's in line again with a 277 00:16:04,960 --> 00:16:08,000 Speaker 3: trend that we've seen in the last few years where 278 00:16:08,000 --> 00:16:11,520 Speaker 3: the Court has been willing to reconsider doctrines to have 279 00:16:12,360 --> 00:16:16,560 Speaker 3: balanced favored the administrative state. So this is one where 280 00:16:16,720 --> 00:16:19,000 Speaker 3: the Court took this step that would be certainly in 281 00:16:19,000 --> 00:16:21,520 Speaker 3: line with decisions we've seen in recent years. 282 00:16:21,720 --> 00:16:25,920 Speaker 1: Another agency, the Consumer Financial Protection Bureau, is before the 283 00:16:25,960 --> 00:16:29,520 Speaker 1: Court again. The oral arguments in this case are actually 284 00:16:29,600 --> 00:16:36,480 Speaker 1: next week. It's CFPB versus Community Financial Services Association, And. 285 00:16:36,400 --> 00:16:39,320 Speaker 3: This is in line with our assault in the administrative state. 286 00:16:39,400 --> 00:16:41,880 Speaker 3: So in this case, though it's a really interesting challenge, 287 00:16:42,040 --> 00:16:45,680 Speaker 3: it's a challenge to the funding mechanism for this agency. 288 00:16:45,800 --> 00:16:50,160 Speaker 3: So usually when Congress passes in appropriation it specifies a 289 00:16:50,200 --> 00:16:54,240 Speaker 3: specific amount that goes to the agency, typically on an 290 00:16:54,280 --> 00:16:58,120 Speaker 3: annual basis. And in this case, what Congress did in 291 00:16:58,160 --> 00:17:02,120 Speaker 3: setting up the Consumer Finds Protection Bureau is it's said, 292 00:17:02,120 --> 00:17:05,040 Speaker 3: we're not going to have annual appropriations of a specific amount. 293 00:17:05,520 --> 00:17:08,720 Speaker 3: You're going to get your funding from services and fees 294 00:17:08,920 --> 00:17:13,360 Speaker 3: generated by the Federal Reserve. There's no requirement to go 295 00:17:13,480 --> 00:17:15,560 Speaker 3: back to Congress every year. This is sort of an 296 00:17:15,560 --> 00:17:20,840 Speaker 3: indefinite appropriation, and it's up to an amount that you 297 00:17:20,880 --> 00:17:24,359 Speaker 3: can just sort of dip into that the agency hasn't 298 00:17:24,400 --> 00:17:27,600 Speaker 3: come close to dipping into. So as a practical matter, 299 00:17:27,840 --> 00:17:32,480 Speaker 3: it's basically an unlimited funding mechanism for the agency, which 300 00:17:32,520 --> 00:17:36,040 Speaker 3: gives it greater independence from the legislative branch. 301 00:17:36,880 --> 00:17:41,000 Speaker 1: This is a Fifth Circuit decision that it's being appealed from. 302 00:17:41,640 --> 00:17:44,080 Speaker 1: Is this a novel theory that they came up with. 303 00:17:44,880 --> 00:17:48,720 Speaker 3: It's the first time in history that an appellate court 304 00:17:48,840 --> 00:17:54,520 Speaker 3: has invoked the appropriations clause to invalidate a statute, So 305 00:17:54,760 --> 00:17:58,720 Speaker 3: it is certainly novel in that respect. That said, the CFPB, 306 00:17:58,920 --> 00:18:02,520 Speaker 3: the agency here is itself novel, and this is something 307 00:18:02,560 --> 00:18:05,440 Speaker 3: that sort of haunted the agency a few years ago. 308 00:18:05,480 --> 00:18:08,439 Speaker 3: In a different case, it involved a removal provision of 309 00:18:08,520 --> 00:18:12,000 Speaker 3: the head of the agency, and Congress set this agency 310 00:18:12,080 --> 00:18:15,000 Speaker 3: up to be different. But because it did so, it 311 00:18:15,119 --> 00:18:18,000 Speaker 3: sort of made it vulnerable to these different lines of 312 00:18:18,080 --> 00:18:19,800 Speaker 3: constitutional attacks that we're seeing. 313 00:18:20,080 --> 00:18:22,600 Speaker 1: And this listener General said, the ruling of the Fifth 314 00:18:22,600 --> 00:18:26,960 Speaker 1: Circuit threatens the validity of virtually all past CFPP actions, 315 00:18:27,400 --> 00:18:30,560 Speaker 1: including numerous regulations that are critical to consumers in the 316 00:18:30,560 --> 00:18:33,439 Speaker 1: financial industry. But the court refused to put it on 317 00:18:33,480 --> 00:18:36,879 Speaker 1: an expedited schedule. Does that say anything to you? 318 00:18:37,200 --> 00:18:39,560 Speaker 3: I don't think the decision not to expedite it. But 319 00:18:39,840 --> 00:18:42,240 Speaker 3: the government is right in this sense that if the 320 00:18:42,320 --> 00:18:46,320 Speaker 3: court were to hold that the funding mechanism is unconstitutional, 321 00:18:47,040 --> 00:18:49,800 Speaker 3: then you know, a logical step might be to say, well, 322 00:18:49,840 --> 00:18:52,520 Speaker 3: then that everything that it did with that funding should 323 00:18:52,600 --> 00:18:55,320 Speaker 3: be set aside. And that really sort of tees up 324 00:18:55,640 --> 00:18:58,400 Speaker 3: the second question in the case, which may be even 325 00:18:58,440 --> 00:19:02,320 Speaker 3: more difficult, which is the court does adopt this novel 326 00:19:02,359 --> 00:19:06,320 Speaker 3: appropriations theory, then what's the remedy. And the parties are 327 00:19:06,800 --> 00:19:09,240 Speaker 3: very strenuously divided on that. I mean, the government says 328 00:19:09,280 --> 00:19:12,840 Speaker 3: that the remedy should just be forward looking, or that 329 00:19:12,880 --> 00:19:15,120 Speaker 3: you could go back and just sever a particular part 330 00:19:15,119 --> 00:19:17,959 Speaker 3: of the law that you wouldn't say that everything that 331 00:19:18,000 --> 00:19:21,720 Speaker 3: the agency has done in administrative actions or by rule 332 00:19:22,359 --> 00:19:23,119 Speaker 3: is invalid. 333 00:19:23,600 --> 00:19:27,320 Speaker 1: So there's been this momentum to reign in the administrative state. 334 00:19:27,960 --> 00:19:30,280 Speaker 1: Will this case be a test of just how far 335 00:19:30,400 --> 00:19:33,080 Speaker 1: the justices are willing to go in that direction? 336 00:19:34,080 --> 00:19:36,200 Speaker 3: Yes, I think it will be, you know, in part 337 00:19:36,320 --> 00:19:39,720 Speaker 3: just because this is a relatively novel theory, and in 338 00:19:39,800 --> 00:19:43,560 Speaker 3: part because of the implications of this theory. And so 339 00:19:43,720 --> 00:19:45,800 Speaker 3: the area that we're seeing sort of an insult on 340 00:19:46,320 --> 00:19:49,919 Speaker 3: is power given to the administrative state. But in some sense, 341 00:19:50,200 --> 00:19:52,399 Speaker 3: the branch that is, you know, at the heart of 342 00:19:52,440 --> 00:19:57,080 Speaker 3: the dispute here is Congress, and adopting this theory would 343 00:19:57,119 --> 00:20:01,240 Speaker 3: sort of place the restriction on the appropration power adopted 344 00:20:01,280 --> 00:20:04,200 Speaker 3: by Congress that we haven't seen in our constitutional history. 345 00:20:04,400 --> 00:20:07,760 Speaker 3: But again, the specific appropriations law here, if you think 346 00:20:07,760 --> 00:20:11,040 Speaker 3: of that way, really is unprecedented, and that you've given 347 00:20:11,080 --> 00:20:16,080 Speaker 3: an agency an indefinite amount of money or pool within 348 00:20:16,160 --> 00:20:18,560 Speaker 3: which to dip in order to carry out its operations. 349 00:20:18,760 --> 00:20:20,919 Speaker 3: And we just haven't seen anything like that in this 350 00:20:21,080 --> 00:20:22,720 Speaker 3: forum in over two hundred years. 351 00:20:22,840 --> 00:20:26,080 Speaker 1: So this case have implications for the Federal Reserve Board, 352 00:20:26,400 --> 00:20:29,399 Speaker 1: the FDIC, and the Controller of the Currency. 353 00:20:29,840 --> 00:20:34,560 Speaker 3: It's conceivable. I mean, those agencies do have different funding mechanisms. 354 00:20:34,920 --> 00:20:38,240 Speaker 3: But what's different about this case is this is a 355 00:20:38,240 --> 00:20:42,960 Speaker 3: more conventional executive agency that's involved in sort of classic 356 00:20:43,119 --> 00:20:48,280 Speaker 3: executive enforcement powers, and the funding mechanism here, although it 357 00:20:48,400 --> 00:20:51,679 Speaker 3: draws from the Federal Reserve Board, is really different. So 358 00:20:51,960 --> 00:20:55,400 Speaker 3: I think that if the Court were to find this 359 00:20:55,480 --> 00:20:59,560 Speaker 3: to be constitutionally problematic, it's ruling as a practical matter 360 00:20:59,680 --> 00:21:02,639 Speaker 3: really would probably be limited to the unusual alignment of 361 00:21:02,680 --> 00:21:03,720 Speaker 3: circumstances here. 362 00:21:04,520 --> 00:21:09,879 Speaker 1: Finally, Securities and Exchange Commission versus Jarkasy, I could swear 363 00:21:09,920 --> 00:21:13,240 Speaker 1: we had a case life before about the in house 364 00:21:13,320 --> 00:21:17,080 Speaker 1: judges used by the Securities and Exchange Commissions, So tell 365 00:21:17,119 --> 00:21:18,439 Speaker 1: us about this case. 366 00:21:18,880 --> 00:21:21,160 Speaker 3: Yeah, this is sort of dejev who all over again. 367 00:21:21,359 --> 00:21:24,440 Speaker 3: Last year, the question was whether or not individuals sort 368 00:21:24,440 --> 00:21:27,480 Speaker 3: of stock in these administrative enforcement proceedings could go to 369 00:21:27,520 --> 00:21:31,040 Speaker 3: a federal core and bring constitutional challenges to the federal 370 00:21:31,040 --> 00:21:34,639 Speaker 3: decision maker. In this case, which involves another individual who 371 00:21:34,680 --> 00:21:38,760 Speaker 3: had gone through enforcement proceedings before the SEC the Securities 372 00:21:38,760 --> 00:21:42,960 Speaker 3: and Exchange Commission, it's actually the merits of the constitutional challenge, 373 00:21:43,080 --> 00:21:46,040 Speaker 3: and it's again another case which sort of puts the 374 00:21:46,119 --> 00:21:50,600 Speaker 3: administrative state in the crosshairers. And here, you know, there 375 00:21:50,600 --> 00:21:53,399 Speaker 3: are several different questions, but the one that seems have 376 00:21:53,400 --> 00:21:56,800 Speaker 3: gotten more emphasis is the question of whether individuals who 377 00:21:56,840 --> 00:22:01,080 Speaker 3: are brought before administrative agencies and and sorts of civil 378 00:22:01,240 --> 00:22:04,119 Speaker 3: enforcement proceedings have a right to a jury trial in 379 00:22:04,160 --> 00:22:05,120 Speaker 3: those proceedings. 380 00:22:05,400 --> 00:22:08,000 Speaker 1: And his lawyer said that he was quote put to 381 00:22:08,080 --> 00:22:12,199 Speaker 1: trial before a captive agency judge sitting unconstitutionally with no 382 00:22:12,359 --> 00:22:14,960 Speaker 1: right to a jury and no way to escape to court. 383 00:22:15,240 --> 00:22:17,159 Speaker 1: Does it seem as if the SEC has been a 384 00:22:17,240 --> 00:22:22,080 Speaker 1: target for critics of federal agencies, the SEC in particular, Well, 385 00:22:22,080 --> 00:22:22,320 Speaker 1: it's a. 386 00:22:22,320 --> 00:22:24,600 Speaker 3: Little bit of a product of its own doing, in 387 00:22:24,600 --> 00:22:28,280 Speaker 3: the sense that the SEC has the option of bringing 388 00:22:28,400 --> 00:22:32,640 Speaker 3: these enforcement actions in federal court or before its own 389 00:22:32,720 --> 00:22:36,960 Speaker 3: in house decision makers. And looking back, it's in most 390 00:22:36,960 --> 00:22:39,280 Speaker 3: of the cases opted for in house proceedings, and in 391 00:22:39,359 --> 00:22:43,280 Speaker 3: these proceedings is basically you know, home rule. It prevails 392 00:22:43,280 --> 00:22:45,760 Speaker 3: in you know, more than ninety percent of the proceedings. 393 00:22:46,119 --> 00:22:50,160 Speaker 3: The decisions are made by an administrative law judge who's basically, 394 00:22:50,480 --> 00:22:53,639 Speaker 3: you know, within the administrative framework of the SEC. And 395 00:22:53,680 --> 00:22:57,760 Speaker 3: so it's a fundamentally different dynamic, and for individuals stuck 396 00:22:57,800 --> 00:23:01,240 Speaker 3: in that situation, it really can seem as though they've 397 00:23:01,240 --> 00:23:03,960 Speaker 3: got no hope. You know, It's very different than being 398 00:23:04,080 --> 00:23:07,320 Speaker 3: in a federal court before an independent decision maker. And 399 00:23:07,400 --> 00:23:10,440 Speaker 3: one of those differences is that when the SEC brings 400 00:23:10,480 --> 00:23:13,920 Speaker 3: the exact same action in a federal court, then the 401 00:23:13,920 --> 00:23:17,480 Speaker 3: individual can elect for a jury trial and have the 402 00:23:17,560 --> 00:23:21,080 Speaker 3: protections of a jury instead of just a judge as 403 00:23:21,160 --> 00:23:22,840 Speaker 3: the sole decision maker. 404 00:23:23,080 --> 00:23:27,160 Speaker 1: If the SEC loses here, would that change the way 405 00:23:27,200 --> 00:23:31,440 Speaker 1: that they have been bringing cases or litigating cases. 406 00:23:31,920 --> 00:23:37,199 Speaker 3: It would have dramatic consequences for administrative enforcement action, and 407 00:23:37,240 --> 00:23:40,040 Speaker 3: you know, really require all of us to rethink that, 408 00:23:40,400 --> 00:23:42,880 Speaker 3: and it would be a great boon to individuals who 409 00:23:42,880 --> 00:23:45,600 Speaker 3: find themselves in that situation. To have the right to 410 00:23:46,359 --> 00:23:49,640 Speaker 3: a jury trial in that context would be a game changer, 411 00:23:49,840 --> 00:23:51,080 Speaker 3: I think in a lot of cases. 412 00:23:51,440 --> 00:23:55,000 Speaker 1: So this was another Fifth Circuit decision. The Fifth Circuit 413 00:23:55,200 --> 00:24:00,600 Speaker 1: has a lot of these noteworthy, controversial however you want 414 00:24:00,600 --> 00:24:05,200 Speaker 1: to term them cases before the Supreme Court this term, So. 415 00:24:05,359 --> 00:24:07,320 Speaker 3: You're quite right about that, and it's really you know, 416 00:24:07,359 --> 00:24:09,560 Speaker 3: one of the broader themes that we're seeing this court, 417 00:24:09,640 --> 00:24:11,439 Speaker 3: and some people have said of sort of the Supreme 418 00:24:11,480 --> 00:24:14,320 Speaker 3: Court versus the Fifth Circuit, it's interesting, I mean, the 419 00:24:14,359 --> 00:24:18,560 Speaker 3: Fifth Circuit is now the most conservative circuit among the many, 420 00:24:19,160 --> 00:24:21,800 Speaker 3: and you know, the kind of question that all these 421 00:24:21,840 --> 00:24:24,600 Speaker 3: cases present is whether the Fifth Circuit has got out 422 00:24:24,960 --> 00:24:28,240 Speaker 3: ahead of even the US Supreme Court today in terms 423 00:24:28,280 --> 00:24:31,160 Speaker 3: of how conservative it is, and whether or not the 424 00:24:31,280 --> 00:24:34,080 Speaker 3: US Supreme Court feels as though it has to rein 425 00:24:34,160 --> 00:24:36,840 Speaker 3: it in a little bit. And although you know, this 426 00:24:36,960 --> 00:24:40,600 Speaker 3: Supreme Court is certainly one of the most conservative in history, 427 00:24:41,000 --> 00:24:44,720 Speaker 3: as we saw last term, there's still a few justices 428 00:24:44,720 --> 00:24:47,920 Speaker 3: in the center that are not necessarily as comfortable going 429 00:24:48,080 --> 00:24:50,320 Speaker 3: as far as some of the justices at the far 430 00:24:50,400 --> 00:24:52,919 Speaker 3: right want to go. The Chief Justice Justice Capital and 431 00:24:53,040 --> 00:24:55,680 Speaker 3: so in each of these cases that we've been discussing, 432 00:24:55,880 --> 00:24:57,960 Speaker 3: the spotlight is really going to be on those justices 433 00:24:57,960 --> 00:25:00,600 Speaker 3: in the middle and whether or not they're comfortable adopting 434 00:25:00,640 --> 00:25:01,680 Speaker 3: these broader series. 435 00:25:01,760 --> 00:25:04,360 Speaker 1: It's been wonderful talking to you, greg and getting your 436 00:25:04,440 --> 00:25:08,719 Speaker 1: insights on all these cases. Thanks so much. That's Gregory Garr, 437 00:25:08,840 --> 00:25:12,520 Speaker 1: a partner at Lathaman Watkins and the former US Solicitor General. 438 00:25:12,720 --> 00:25:15,040 Speaker 1: And that's it for this edition of The Bloomberg Law Show. 439 00:25:15,400 --> 00:25:17,720 Speaker 1: Remember you can always get the latest legal news on 440 00:25:17,800 --> 00:25:22,080 Speaker 1: our Bloomberg Law podcasts. You can find them on Apple Podcasts, Spotify, 441 00:25:22,240 --> 00:25:27,280 Speaker 1: and at www dot bloomberg dot com slash podcast Slash Law, 442 00:25:27,520 --> 00:25:30,080 Speaker 1: And remember to tune into The Bloomberg Law Show every 443 00:25:30,119 --> 00:25:33,840 Speaker 1: weeknight at ten pm Wall Street Time. I'm June Grosso 444 00:25:34,000 --> 00:25:35,600 Speaker 1: and you're listening to Bloomberg