WEBVTT - Religious Rights Win Out in Clash With Gay Rights

0:00:03.200 --> 0:00:07.960
<v Speaker 1>This is Bloomberg Law with June Brussel from Bloomberg Radio.

0:00:09.200 --> 0:00:12.240
<v Speaker 1>In a high profile clash of religious rights and gay

0:00:12.360 --> 0:00:16.200
<v Speaker 1>rights at the Supreme Court, religious rights one out the

0:00:16.280 --> 0:00:19.840
<v Speaker 1>courts sided with a Catholic foster care agency that won't

0:00:19.880 --> 0:00:23.760
<v Speaker 1>place children with same sex couples because of its religious beliefs.

0:00:24.160 --> 0:00:28.000
<v Speaker 1>In a unanimous decision, the Court ruled that Philadelphia violated

0:00:28.000 --> 0:00:31.480
<v Speaker 1>the Constitution when it excluded the agency for the city's

0:00:31.520 --> 0:00:35.200
<v Speaker 1>foster care program. During oral arguments, some of the conservative

0:00:35.240 --> 0:00:40.240
<v Speaker 1>Justice Is question Philadelphia's policy, while others like Justice Is

0:00:40.320 --> 0:00:45.160
<v Speaker 1>Samuel Alito and Brett Kavanaugh were upfront in their skepticism.

0:00:45.200 --> 0:00:49.800
<v Speaker 1>It's not about ensuring that same sex couples in Philadelphia

0:00:49.880 --> 0:00:53.840
<v Speaker 1>have the opportunity to be foster parents. It's the fact

0:00:53.840 --> 0:00:57.600
<v Speaker 1>that the city can't stand the message and Catholic Social

0:00:57.640 --> 0:01:02.400
<v Speaker 1>Services and the archdioces are sending by continuing to adhere

0:01:02.920 --> 0:01:07.840
<v Speaker 1>to the old fashioned view about marriage. And what I

0:01:07.880 --> 0:01:14.480
<v Speaker 1>fear here is that the absolutist and extreme position that

0:01:14.600 --> 0:01:18.399
<v Speaker 1>you're articulating would require us to go back on the

0:01:18.440 --> 0:01:23.680
<v Speaker 1>promise of respect for religious believers. Joining me as constitutional

0:01:23.760 --> 0:01:28.080
<v Speaker 1>law professor Steve Sanders of Indiana University's Mara School of Law.

0:01:28.760 --> 0:01:32.600
<v Speaker 1>Some people expected to split along ideological lines because of

0:01:32.680 --> 0:01:36.600
<v Speaker 1>religious rights versus gay rights. Were you surprised by the

0:01:36.720 --> 0:01:40.280
<v Speaker 1>unanimous ruling? Well, I wasn't surprised by the unanimity of

0:01:40.319 --> 0:01:43.520
<v Speaker 1>the ruling once I read the opinion and realized just

0:01:43.720 --> 0:01:48.080
<v Speaker 1>really how narrow this decision is. It really does not

0:01:48.240 --> 0:01:51.320
<v Speaker 1>break any new ground. It is more or less a

0:01:51.480 --> 0:01:56.880
<v Speaker 1>straightforward application of existing Supreme Court precedent. And frankly, if

0:01:57.000 --> 0:02:00.160
<v Speaker 1>the City of Philadelphia decides to make a fairly minor

0:02:00.160 --> 0:02:03.720
<v Speaker 1>modification of its policy, it's possible that it could go

0:02:03.840 --> 0:02:08.120
<v Speaker 1>back to not doing business with Catholic social services. So

0:02:08.400 --> 0:02:11.160
<v Speaker 1>the opinion seems to have been crafted to be as

0:02:11.240 --> 0:02:15.440
<v Speaker 1>narrow as possible while being faithful to the courts precedents.

0:02:15.440 --> 0:02:18.160
<v Speaker 1>That I think explains why it got the support of

0:02:18.440 --> 0:02:22.280
<v Speaker 1>Justice Bryer, Justice so to Mayor and especially Justice Kagan,

0:02:22.360 --> 0:02:25.200
<v Speaker 1>who I think would not have joined an opinion that

0:02:25.280 --> 0:02:30.320
<v Speaker 1>would have resulted in what she saw was an inappropriate

0:02:30.400 --> 0:02:36.520
<v Speaker 1>expansion of the rights of religious organizations. Like the Obamacare decision,

0:02:36.639 --> 0:02:39.440
<v Speaker 1>This case was argued way back in November. Do you

0:02:39.480 --> 0:02:41.919
<v Speaker 1>think this decision took so long to come down because

0:02:42.000 --> 0:02:46.760
<v Speaker 1>the justices, or perhaps Chief Justice Roberts, was lobbying to

0:02:46.880 --> 0:02:50.760
<v Speaker 1>have an unanimous opinion. I suspect the main thing that

0:02:50.960 --> 0:02:53.360
<v Speaker 1>caused it to take so long to come down was

0:02:53.440 --> 0:02:56.720
<v Speaker 1>the fact that Justice Alito wrote a treatise. You know,

0:02:56.840 --> 0:03:00.359
<v Speaker 1>Justice Alito's concurrence is by far the long gust of

0:03:00.400 --> 0:03:03.400
<v Speaker 1>all the opinions. It was joined by Justice Gore, such

0:03:03.440 --> 0:03:09.000
<v Speaker 1>Injustice Thomas. Justice Alito makes a full throated argument in

0:03:09.160 --> 0:03:13.680
<v Speaker 1>favor of a radical, really revolution in the Supreme Court's

0:03:13.720 --> 0:03:16.920
<v Speaker 1>jurisprudence of the free exercise clause, and that would be

0:03:17.040 --> 0:03:19.839
<v Speaker 1>to get rid of a thirty year old precedent called

0:03:19.880 --> 0:03:23.800
<v Speaker 1>employment Division versus Smith. That was the larger question on

0:03:23.840 --> 0:03:26.840
<v Speaker 1>the table in this case that the Court theoretically could

0:03:26.840 --> 0:03:29.560
<v Speaker 1>have reached. The opinion of the Court said, you know,

0:03:29.639 --> 0:03:33.880
<v Speaker 1>we don't need to reconsider a basic precedent in order

0:03:33.919 --> 0:03:37.280
<v Speaker 1>to resolve this particular case. Is they's a Justice Alito, really,

0:03:37.440 --> 0:03:39.760
<v Speaker 1>you know, just sort of wrote a brief in favor

0:03:39.800 --> 0:03:43.600
<v Speaker 1>of overturning employment of Division versus Smith, something that even

0:03:43.720 --> 0:03:47.360
<v Speaker 1>Justice Barrett basically said she wasn't interested in doing in

0:03:47.400 --> 0:03:52.400
<v Speaker 1>this case. So Smith is a decision written by conservative

0:03:52.640 --> 0:03:56.360
<v Speaker 1>icon Justice Anti and Scalia. That's been the target of

0:03:56.440 --> 0:04:01.760
<v Speaker 1>religious rights groups recently. Why so, that's correct because employee

0:04:01.800 --> 0:04:05.520
<v Speaker 1>division versus Smith basically said, if a law is neutral

0:04:05.640 --> 0:04:08.320
<v Speaker 1>and if it's generally applicable, if it's just a law

0:04:08.400 --> 0:04:11.560
<v Speaker 1>that sort of everybody has to obey, it doesn't target

0:04:11.640 --> 0:04:14.880
<v Speaker 1>religion in one way or another, then even if that

0:04:15.000 --> 0:04:20.680
<v Speaker 1>law impinges on your religious practice, basically too bad. A

0:04:20.760 --> 0:04:24.760
<v Speaker 1>religious believer is not a law unto himself or herself.

0:04:25.040 --> 0:04:28.320
<v Speaker 1>Justice Scalia rode, And so, if there is a truly

0:04:28.520 --> 0:04:32.560
<v Speaker 1>neutral and generally applicable, let's say, gay rights law, the

0:04:32.640 --> 0:04:35.760
<v Speaker 1>fact that a business owner or a social service agency

0:04:35.920 --> 0:04:39.479
<v Speaker 1>believes that complying with that law violates its religious liberty

0:04:39.960 --> 0:04:43.040
<v Speaker 1>is not good enough to kick it up to strict

0:04:43.120 --> 0:04:47.479
<v Speaker 1>scrutiny to demand more of the government to justify that law.

0:04:47.920 --> 0:04:51.760
<v Speaker 1>That's what Justice Alito and Justice Thomas and Justice Gorse

0:04:52.200 --> 0:04:54.200
<v Speaker 1>would like to change. They would like to make it

0:04:54.279 --> 0:04:59.440
<v Speaker 1>easier for religious believers to challenge any law that they

0:04:59.480 --> 0:05:03.320
<v Speaker 1>believe in hinges on their religious exercise. What the court

0:05:03.400 --> 0:05:06.520
<v Speaker 1>found in this case, in the Fulton case, was that

0:05:06.640 --> 0:05:10.800
<v Speaker 1>the law was not actually generally applicable because it allowed

0:05:10.839 --> 0:05:15.600
<v Speaker 1>for the possibility of exceptions to the non discrimination policy,

0:05:15.720 --> 0:05:18.000
<v Speaker 1>and the fact the city wasn't willing to get Catholic

0:05:18.040 --> 0:05:22.440
<v Speaker 1>Social Services an exception meant that Catholic Social Services wasn't

0:05:22.480 --> 0:05:25.880
<v Speaker 1>being treated equally, So that did kick the level of

0:05:25.880 --> 0:05:29.520
<v Speaker 1>scrutiny up to strict scrutiny because religion was being treated

0:05:29.880 --> 0:05:34.360
<v Speaker 1>in a disadvantaged way. Basically, all the City of Philadelphia

0:05:34.400 --> 0:05:37.680
<v Speaker 1>has to do is get rid of that provision that

0:05:37.839 --> 0:05:43.640
<v Speaker 1>indicates that the Social Services administration can make exceptions. If

0:05:43.680 --> 0:05:47.479
<v Speaker 1>it makes clear the non discrimination provision applies in a

0:05:47.600 --> 0:05:52.440
<v Speaker 1>blanket way without any exceptions, then Catholic Social Service agency

0:05:52.440 --> 0:05:54.359
<v Speaker 1>will have to choose whether to be bound by that

0:05:54.520 --> 0:05:57.240
<v Speaker 1>or whether to not do business with the city. That's

0:05:57.279 --> 0:05:59.680
<v Speaker 1>assuming the city decides to go ahead and do that.

0:06:00.000 --> 0:06:03.679
<v Speaker 1>How political pressures and other things made forced the city

0:06:03.760 --> 0:06:06.960
<v Speaker 1>to just sort of keep the status quo. As we

0:06:07.040 --> 0:06:11.120
<v Speaker 1>discussed before, this sounds a lot like the Masterpiece Cake

0:06:11.200 --> 0:06:14.800
<v Speaker 1>Shop case where a baker refused to make a wedding

0:06:14.839 --> 0:06:18.960
<v Speaker 1>cake for same sex couple. There's Supreme Court there refused

0:06:19.000 --> 0:06:22.440
<v Speaker 1>to decide the central issue. Did this case clear that

0:06:22.560 --> 0:06:27.000
<v Speaker 1>up at all or is it still nebulous. It really didn't.

0:06:27.080 --> 0:06:30.719
<v Speaker 1>This case is a little bit different because Masterpiece Cake Shop.

0:06:30.760 --> 0:06:35.200
<v Speaker 1>In that case, the baker, recognizing that this old precedent

0:06:35.240 --> 0:06:38.880
<v Speaker 1>of employment Division versus Smith made it difficult for him

0:06:38.920 --> 0:06:42.440
<v Speaker 1>to succeed under the free exercise clause, try to free

0:06:42.440 --> 0:06:47.719
<v Speaker 1>speech argument basically saying that his cakes represented expressive speech.

0:06:48.279 --> 0:06:50.840
<v Speaker 1>That was quite a novel argument, and as you say,

0:06:50.880 --> 0:06:54.479
<v Speaker 1>the court essentially didn't reach that. The Court decided it

0:06:54.520 --> 0:06:57.600
<v Speaker 1>on a much narrower basis that this baker had been

0:06:58.040 --> 0:07:03.160
<v Speaker 1>sort of mistreated during the adjudication process, that his religion

0:07:03.200 --> 0:07:06.280
<v Speaker 1>had been disparaged, and government doesn't get to do that.

0:07:06.560 --> 0:07:10.320
<v Speaker 1>But it dodged making a statement about the larger question

0:07:10.480 --> 0:07:14.800
<v Speaker 1>of free speech law when it involves religious speech. This

0:07:14.840 --> 0:07:18.120
<v Speaker 1>case is similar in fact, Justice Alito's opinion sort of

0:07:18.120 --> 0:07:23.400
<v Speaker 1>analogized at Masterpiece, and that this decision Fulton was focused

0:07:23.400 --> 0:07:27.000
<v Speaker 1>on the free exercise clause, not the free speech part

0:07:27.000 --> 0:07:29.840
<v Speaker 1>of the First Amendment. It's different than Masterpiece in that way,

0:07:30.080 --> 0:07:32.960
<v Speaker 1>but it's similar in the sense that this is really

0:07:33.000 --> 0:07:38.640
<v Speaker 1>a decision that only applies to the specific circumstances involving

0:07:38.800 --> 0:07:42.960
<v Speaker 1>this agency and the City of Philadelphia. It doesn't break

0:07:43.000 --> 0:07:46.480
<v Speaker 1>any new ground. It doesn't expand the meaning or the

0:07:46.560 --> 0:07:49.840
<v Speaker 1>scope of religious liberty beyond what the Supreme Court has

0:07:49.880 --> 0:07:53.720
<v Speaker 1>already said in its precedence. Some are calling this a

0:07:53.840 --> 0:07:57.920
<v Speaker 1>setback for gay rights. Do you agree? I think that's

0:07:57.960 --> 0:08:02.440
<v Speaker 1>probably an overstatement. So one way of viewing the situation

0:08:02.600 --> 0:08:07.680
<v Speaker 1>is that cities like Philadelphia and other government agencies should

0:08:07.720 --> 0:08:12.680
<v Speaker 1>take a hard line and say any time any social

0:08:12.720 --> 0:08:17.880
<v Speaker 1>services provider, any business, any private organization refuses to respect

0:08:17.920 --> 0:08:21.240
<v Speaker 1>the rights of gay people, they must give up their

0:08:21.280 --> 0:08:24.280
<v Speaker 1>religious beliefs and they must tow the line and and

0:08:24.480 --> 0:08:29.640
<v Speaker 1>honor the government's nondiscrimination law. One thing that may have

0:08:29.680 --> 0:08:31.640
<v Speaker 1>been going on in the background here that may have

0:08:31.680 --> 0:08:35.480
<v Speaker 1>also been been persuasive to the justices is um no

0:08:35.679 --> 0:08:39.400
<v Speaker 1>gay couple in Philadelphia had ever been turned away from

0:08:39.440 --> 0:08:42.240
<v Speaker 1>the foster system. The way it worked was if Catholic

0:08:42.320 --> 0:08:46.760
<v Speaker 1>Social Services decided they couldn't certify a married, same sex

0:08:46.840 --> 0:08:49.760
<v Speaker 1>couple to be a foster parent, they simply referred the

0:08:49.760 --> 0:08:53.440
<v Speaker 1>couple to one of twenty some other agencies in the

0:08:53.440 --> 0:08:57.319
<v Speaker 1>city of Philadelphia that did the same work for the city.

0:08:57.800 --> 0:09:01.400
<v Speaker 1>So I think what we see here is maybe an

0:09:01.480 --> 0:09:06.640
<v Speaker 1>argument that look, no gay couple was actually discriminated against.

0:09:06.679 --> 0:09:10.320
<v Speaker 1>Probably no same sex couple would ever be denied the

0:09:10.480 --> 0:09:13.800
<v Speaker 1>right to foster a child. Um, there might just be

0:09:13.840 --> 0:09:17.240
<v Speaker 1>a slight delay because they'd go to a different agency.

0:09:17.280 --> 0:09:20.959
<v Speaker 1>But that allows Catholic Social Services to stand by its

0:09:21.160 --> 0:09:25.160
<v Speaker 1>religious principles. So I guess I would disagree that this

0:09:25.240 --> 0:09:29.360
<v Speaker 1>is a big, meaningful setback for gay rights. If you

0:09:29.480 --> 0:09:33.640
<v Speaker 1>are subscribing to a sort of absolutist view of non

0:09:33.679 --> 0:09:37.840
<v Speaker 1>discrimination laws, then maybe you don't like this decision. As

0:09:37.880 --> 0:09:42.240
<v Speaker 1>a practical matter, this decision probably represents the kind of

0:09:42.280 --> 0:09:46.320
<v Speaker 1>accommodation that even some liberal scholars have been calling for

0:09:46.559 --> 0:09:51.840
<v Speaker 1>that allows religious organizations to be faithful to their principles

0:09:51.960 --> 0:09:57.920
<v Speaker 1>without doing any actual practical harm to the ability of

0:09:58.280 --> 0:10:01.720
<v Speaker 1>same sex couples to function in society and to be

0:10:01.760 --> 0:10:05.320
<v Speaker 1>treated equally. But this is another in a long line

0:10:05.480 --> 0:10:08.880
<v Speaker 1>of victories for religious groups of the Supreme Court. This

0:10:08.960 --> 0:10:12.200
<v Speaker 1>is a court that has taken a very sympathetic and

0:10:12.280 --> 0:10:16.320
<v Speaker 1>expansive view of religion. Has protected religion, whether it's a

0:10:16.480 --> 0:10:20.480
<v Speaker 1>case challenging something as an establishment of religion, or religious

0:10:20.559 --> 0:10:24.320
<v Speaker 1>organizations or religious people saying that a law impinges on

0:10:24.360 --> 0:10:28.679
<v Speaker 1>their free exercise rights. I think your impression is not wrong.

0:10:29.320 --> 0:10:32.600
<v Speaker 1>The law has evolved in recent years in a way

0:10:32.679 --> 0:10:38.160
<v Speaker 1>that is increasingly um sympathetic to religion, increasingly insists that

0:10:38.240 --> 0:10:42.720
<v Speaker 1>religion be treated the same as other kinds of functions

0:10:43.040 --> 0:10:47.320
<v Speaker 1>and not be disadvantaged in some way. It's entirely likely

0:10:47.440 --> 0:10:50.280
<v Speaker 1>that more cases like this are going to keep coming

0:10:50.320 --> 0:10:53.560
<v Speaker 1>to the Supreme Court. This decision didn't break any new

0:10:53.640 --> 0:10:59.439
<v Speaker 1>ground really in advancing the religious liberty rights of religious believers.

0:10:59.480 --> 0:11:03.520
<v Speaker 1>It's simply found a way to fit this situation into

0:11:03.600 --> 0:11:07.720
<v Speaker 1>the Court's existing law, which says religion can't be singled

0:11:07.720 --> 0:11:11.480
<v Speaker 1>out for disadvantageous treatment, which is what the Court thought

0:11:11.559 --> 0:11:14.680
<v Speaker 1>was going on here. But you know that this opinion

0:11:14.760 --> 0:11:18.880
<v Speaker 1>also doesn't signal that the Court is closing the door

0:11:18.920 --> 0:11:24.480
<v Speaker 1>to other theories and other claims of religious discrimination. So

0:11:24.640 --> 0:11:28.040
<v Speaker 1>the decision announced the same day the Obamacare case is

0:11:28.320 --> 0:11:31.480
<v Speaker 1>sort of largely seen as the Court saying, look, enough

0:11:31.520 --> 0:11:34.360
<v Speaker 1>of this, We're just done with the challenges to Obamacare.

0:11:34.640 --> 0:11:37.840
<v Speaker 1>This decision more or less maintains a sort of status quo.

0:11:38.280 --> 0:11:42.760
<v Speaker 1>Thanks Steve. That's Steve Sanders of Indiana University's Mors School

0:11:42.800 --> 0:11:47.760
<v Speaker 1>of Law. The effort to lift The Biden administration's moratorium

0:11:47.840 --> 0:11:50.840
<v Speaker 1>on federal lease sales got a surprise win in federal

0:11:50.880 --> 0:11:54.720
<v Speaker 1>district court. On Tuesday, a federal judge in Louisiana granted

0:11:54.720 --> 0:11:59.320
<v Speaker 1>a preliminary injunction lifting the administration's moratorium on new lease

0:11:59.360 --> 0:12:03.040
<v Speaker 1>sales for oil and gas development on federal lands. Joining

0:12:03.040 --> 0:12:06.240
<v Speaker 1>me is Brandon Barnes. Joining me is Brandon Barnes, Bloomberg

0:12:06.280 --> 0:12:10.880
<v Speaker 1>Intelligence senior litigation analyst. So Brandon tell us about this decision.

0:12:11.920 --> 0:12:15.280
<v Speaker 1>We had an interesting decision coming out of the Louisiana

0:12:15.480 --> 0:12:19.720
<v Speaker 1>Federal court this week, and the judge put a preliminary

0:12:19.720 --> 0:12:24.040
<v Speaker 1>in junction in place, granting a motion request from thirteen

0:12:24.040 --> 0:12:27.959
<v Speaker 1>different states that had basically asked the court to put

0:12:28.000 --> 0:12:32.680
<v Speaker 1>on hold the hold that the President Biden's administration put

0:12:32.679 --> 0:12:36.520
<v Speaker 1>in place with respect to the federal government holding oil

0:12:36.559 --> 0:12:41.000
<v Speaker 1>and gas lease sales, which is basically property that the

0:12:41.160 --> 0:12:45.319
<v Speaker 1>federal government owns or holds that they then leased back

0:12:45.400 --> 0:12:48.120
<v Speaker 1>out for oil and gas development like Gulf of Mexico

0:12:48.360 --> 0:12:51.640
<v Speaker 1>or cocaine lead in Alaska, or on shore for someam

0:12:51.679 --> 0:12:55.559
<v Speaker 1>areas like the Permian Basin in New Mexico. The judge

0:12:55.600 --> 0:12:59.000
<v Speaker 1>decides there'd be irreparable harm. How so isn't it just

0:12:59.200 --> 0:13:03.920
<v Speaker 1>money involved? Well, Uh, economic harm can be one of

0:13:03.920 --> 0:13:09.040
<v Speaker 1>the factors that goes into the irreparable harm calculus for

0:13:09.280 --> 0:13:12.839
<v Speaker 1>preliminary junctions. We've seen it in other cases here. Since

0:13:12.840 --> 0:13:16.680
<v Speaker 1>you had the Stewards being the thirteen s case, the

0:13:16.679 --> 0:13:19.240
<v Speaker 1>plaintiffs for these thirteen states, part of their standing, part

0:13:19.280 --> 0:13:22.320
<v Speaker 1>of their ability to bring this claim revolved around the

0:13:22.360 --> 0:13:26.880
<v Speaker 1>fact that they garner a significant amount of money from

0:13:27.080 --> 0:13:30.720
<v Speaker 1>these federal oil and gas leases. They have a there's

0:13:30.720 --> 0:13:33.280
<v Speaker 1>a sharing agreement for some of that revenue, there's royalties

0:13:33.320 --> 0:13:36.280
<v Speaker 1>involved for them, so it's a significant part of their

0:13:36.360 --> 0:13:39.960
<v Speaker 1>business at the state level in their budgeting process. But

0:13:40.040 --> 0:13:42.440
<v Speaker 1>also the court took a new account of a fair

0:13:42.440 --> 0:13:44.760
<v Speaker 1>amount of you know this idea that there would be

0:13:44.840 --> 0:13:47.040
<v Speaker 1>job losses at some point and that would impact the

0:13:47.080 --> 0:13:50.920
<v Speaker 1>states as well. So what is the Biden administration doing? Now?

0:13:51.160 --> 0:13:55.000
<v Speaker 1>This isn't about saying no, no more leases here. This

0:13:55.080 --> 0:13:59.320
<v Speaker 1>is about wait and see, let's let's figure this out. Yeah,

0:13:59.360 --> 0:14:02.920
<v Speaker 1>it's been a pretty common tactic for presidents over the years.

0:14:03.559 --> 0:14:06.360
<v Speaker 1>Most presidents have done it with different programs where and

0:14:06.480 --> 0:14:09.120
<v Speaker 1>politically it's it's you know, a smart middle ground, because

0:14:09.200 --> 0:14:10.480
<v Speaker 1>what you do is you come in and you say,

0:14:10.520 --> 0:14:12.840
<v Speaker 1>wait a second, we need to take a look. We

0:14:12.880 --> 0:14:14.640
<v Speaker 1>need to take a look at this. Do our study,

0:14:15.320 --> 0:14:18.000
<v Speaker 1>check it out. Make sure that you know we're appropriately

0:14:18.040 --> 0:14:21.360
<v Speaker 1>in this case protecting all the people. Were getting the

0:14:21.400 --> 0:14:24.200
<v Speaker 1>amount of money that the people deserve out of these

0:14:24.240 --> 0:14:27.160
<v Speaker 1>private companies who were doing this development, and so we'll

0:14:27.160 --> 0:14:30.560
<v Speaker 1>do a review. The review process has been going on

0:14:30.760 --> 0:14:34.360
<v Speaker 1>since essentially the decuative Order came out in January this year,

0:14:34.960 --> 0:14:38.160
<v Speaker 1>and it doesn't really have a set end time, and

0:14:38.320 --> 0:14:40.960
<v Speaker 1>I think that's part of the problem. Not explicitly, but

0:14:41.120 --> 0:14:44.960
<v Speaker 1>certainly the oil and gas companies and the States are

0:14:45.520 --> 0:14:47.760
<v Speaker 1>looking ahead and thinking, well, that's going to present a

0:14:47.760 --> 0:14:50.160
<v Speaker 1>major challenge later on once the inventory starts to draw

0:14:50.240 --> 0:14:52.840
<v Speaker 1>down in terms of new leases and new properties. But

0:14:53.040 --> 0:14:56.480
<v Speaker 1>right now, they haven't suffered any harm at this point.

0:14:57.360 --> 0:14:59.920
<v Speaker 1>You wouldn't think so from the company perspective. A lot

0:15:00.000 --> 0:15:02.600
<v Speaker 1>of the companies opted to start to bulk up on

0:15:03.000 --> 0:15:06.600
<v Speaker 1>the leases and permits before the Biden administration came in,

0:15:07.000 --> 0:15:11.240
<v Speaker 1>especially towards the end of last year. As you know,

0:15:11.240 --> 0:15:14.000
<v Speaker 1>President Biden was making his way around the campaign trail

0:15:14.000 --> 0:15:15.920
<v Speaker 1>and making promises that we were going to put a

0:15:15.920 --> 0:15:18.840
<v Speaker 1>moratorium in place or take another look at this, especially

0:15:18.920 --> 0:15:22.880
<v Speaker 1>with respect to the horizontal drilling and fracking. So there's

0:15:23.000 --> 0:15:26.240
<v Speaker 1>a backlog. I think that the government in their similar

0:15:26.240 --> 0:15:30.720
<v Speaker 1>filings reported that the backlog is seventy permits to drill,

0:15:30.760 --> 0:15:33.640
<v Speaker 1>not just leases, but actually approved permits to drill. Now

0:15:33.680 --> 0:15:38.440
<v Speaker 1>that's not abnormal given these programs that the drillers are

0:15:38.440 --> 0:15:40.880
<v Speaker 1>putting in place last for a certain period of time,

0:15:40.920 --> 0:15:44.520
<v Speaker 1>because you need to have a good pipeline of wells

0:15:44.680 --> 0:15:49.160
<v Speaker 1>to drill so that as your production declines on your

0:15:49.160 --> 0:15:52.800
<v Speaker 1>current wells, you have the other ones coming online, particularly

0:15:52.840 --> 0:15:56.000
<v Speaker 1>for horizontal drilling, where you can extend those laterals further

0:15:56.080 --> 0:15:59.360
<v Speaker 1>into contiguous properties that maybe you didn't have before, and

0:15:59.440 --> 0:16:02.400
<v Speaker 1>that helps sort of smooth out the economics of drilling

0:16:02.400 --> 0:16:06.080
<v Speaker 1>in a certain area. The royalty rates for drilling have

0:16:06.200 --> 0:16:09.280
<v Speaker 1>been the same for a century, so the Biden administration

0:16:09.360 --> 0:16:12.560
<v Speaker 1>might think about raising them. That's certainly on the table,

0:16:12.880 --> 0:16:15.600
<v Speaker 1>I think, particularly Interior has made some of those statements.

0:16:15.760 --> 0:16:19.760
<v Speaker 1>That's an easy middle path to discuss what's going on here.

0:16:19.960 --> 0:16:22.480
<v Speaker 1>You know, the other ideas that maybe they need to

0:16:22.520 --> 0:16:25.560
<v Speaker 1>tighten up from the environmental review process they're doing for

0:16:25.640 --> 0:16:29.120
<v Speaker 1>these is they're pretty boilerplate, and they've been hammered in

0:16:29.160 --> 0:16:31.880
<v Speaker 1>the courts recently in a couple of different cases around

0:16:31.920 --> 0:16:35.600
<v Speaker 1>prior leases last year, and so the ideas maybe they

0:16:35.680 --> 0:16:39.560
<v Speaker 1>might try to tighten up on climate change analysis contribution

0:16:39.600 --> 0:16:42.840
<v Speaker 1>of greenhouse gasses from from these activities in addition to

0:16:42.920 --> 0:16:45.720
<v Speaker 1>looking at the royalties. But the judge based it on

0:16:46.040 --> 0:16:50.760
<v Speaker 1>that the Biden administration needs congressional approval to stop and

0:16:50.800 --> 0:16:54.600
<v Speaker 1>think about this. That's right. So the real crux of

0:16:54.680 --> 0:16:58.880
<v Speaker 1>the prelimary injunction opinion revolved around the fact that the

0:16:59.080 --> 0:17:03.000
<v Speaker 1>Outer Continental Shelf Act, which is what essentially allows the

0:17:03.000 --> 0:17:07.399
<v Speaker 1>federal government to run these offshore acreage s lease sales,

0:17:08.040 --> 0:17:10.840
<v Speaker 1>and the Mineral Leasing Act, which is the onshore version

0:17:10.880 --> 0:17:17.240
<v Speaker 1>of that, both of them have specific statutory requirements that, Okay,

0:17:17.320 --> 0:17:20.040
<v Speaker 1>for Outer Continental Shelf Act, you have to do a

0:17:20.080 --> 0:17:23.200
<v Speaker 1>five year plan. That five year plan lays out exactly

0:17:23.200 --> 0:17:25.679
<v Speaker 1>how many lease sales you're going to have. Once that

0:17:25.880 --> 0:17:30.000
<v Speaker 1>is a final rule from Interior, then you run those leases.

0:17:30.040 --> 0:17:32.720
<v Speaker 1>And then Mineral Leasing Act similarly says you have to

0:17:32.840 --> 0:17:37.359
<v Speaker 1>run at least quarterly lease sales and every year and

0:17:37.359 --> 0:17:40.679
<v Speaker 1>and go forward in that way. The allegation which the

0:17:40.680 --> 0:17:43.959
<v Speaker 1>court grabbed onto was, you know, the Biden administration, as

0:17:44.000 --> 0:17:46.639
<v Speaker 1>the president, the executive branch doesn't have the power to

0:17:46.640 --> 0:17:48.840
<v Speaker 1>come in and say we're stopping that because those are

0:17:48.880 --> 0:17:51.640
<v Speaker 1>coming out of the legislative branch. That would be Congress,

0:17:51.680 --> 0:17:55.000
<v Speaker 1>who has the power to do that and therefore put

0:17:55.040 --> 0:17:58.399
<v Speaker 1>the pulinary injunction in place. Now, so this is a

0:17:58.520 --> 0:18:03.200
<v Speaker 1>judge in Louisiana issuing a decision that covers the entire

0:18:03.320 --> 0:18:08.679
<v Speaker 1>United States and nationwide injunction from Louisiana. That's right, you know,

0:18:08.760 --> 0:18:12.280
<v Speaker 1>it's um as justice courts such as called them cosmic

0:18:12.320 --> 0:18:16.399
<v Speaker 1>injunctions because they apply to the entire universe. It's been

0:18:16.440 --> 0:18:19.439
<v Speaker 1>a practice that got a lot more attention under President

0:18:19.440 --> 0:18:24.119
<v Speaker 1>Trump's administration, particularly revolving around to the immigration changes that

0:18:24.200 --> 0:18:26.359
<v Speaker 1>he was trying to put in place, different policies at

0:18:26.400 --> 0:18:30.840
<v Speaker 1>the border, and the use of them has increased over time.

0:18:31.280 --> 0:18:33.479
<v Speaker 1>The ideas there's that district court, which is your lowest

0:18:33.520 --> 0:18:37.760
<v Speaker 1>federal court, putting something in place that impacts the entire country.

0:18:38.160 --> 0:18:41.440
<v Speaker 1>It's an interesting one. I think at a certain point,

0:18:42.160 --> 0:18:43.880
<v Speaker 1>you know, you're just reading long of your articles because

0:18:43.880 --> 0:18:48.520
<v Speaker 1>it becomes academic. In practice, these are allowed, and you

0:18:48.560 --> 0:18:51.199
<v Speaker 1>can have competing ones because there's a sort of a

0:18:51.240 --> 0:18:56.879
<v Speaker 1>coequal jurisdiction across different district courts, and only up until

0:18:56.920 --> 0:18:59.320
<v Speaker 1>such time as you have a more supreme court, which

0:18:59.320 --> 0:19:01.200
<v Speaker 1>would be like an Hills Court for the next level

0:19:01.200 --> 0:19:03.840
<v Speaker 1>of obviously the U. S. Supreme Court making a different

0:19:03.840 --> 0:19:06.840
<v Speaker 1>decision or confirming that decision. Do you then get into

0:19:06.880 --> 0:19:12.120
<v Speaker 1>a place where you might have multiple jurisdictions agreeing. So

0:19:12.200 --> 0:19:16.720
<v Speaker 1>it's allowed. Uh. Some people don't like it. Others look

0:19:16.760 --> 0:19:19.119
<v Speaker 1>at it more as as a legal academic issue that

0:19:19.160 --> 0:19:22.320
<v Speaker 1>can be discussed at, you know, in ivory toilers. So

0:19:22.840 --> 0:19:26.199
<v Speaker 1>either way, we have an injunction in place, and whatever

0:19:26.280 --> 0:19:28.840
<v Speaker 1>happens in other courts, which there's another court considering the

0:19:28.840 --> 0:19:31.720
<v Speaker 1>same issue in Wyoming right now, it doesn't really matter

0:19:32.080 --> 0:19:35.480
<v Speaker 1>until we get to the next level. So the Interior

0:19:35.520 --> 0:19:39.640
<v Speaker 1>Department said, we're reviewing the judge's opinion and will comply

0:19:39.760 --> 0:19:44.879
<v Speaker 1>with the decision. Does that mean they will not appeal? Uh?

0:19:44.920 --> 0:19:47.680
<v Speaker 1>I doubt that. I think that they will appeal. Certainly

0:19:47.720 --> 0:19:50.520
<v Speaker 1>they're people who would be happy to appeal for them

0:19:50.560 --> 0:19:53.960
<v Speaker 1>with an interest in this. As there were multiple interveneers

0:19:54.119 --> 0:19:58.040
<v Speaker 1>at the district court level. From the environmental interest side,

0:19:58.160 --> 0:20:00.679
<v Speaker 1>I would expect them to appeal. You want to preserve

0:20:00.680 --> 0:20:03.760
<v Speaker 1>your rights going forward anyway. But in one sense, you

0:20:03.800 --> 0:20:06.320
<v Speaker 1>know you're appealing a preliminary injunction, so the case is

0:20:06.359 --> 0:20:08.760
<v Speaker 1>still alive at the district court level anyway, so you

0:20:08.840 --> 0:20:11.280
<v Speaker 1>can do it pretty quickly. But you know, they do

0:20:11.400 --> 0:20:14.600
<v Speaker 1>have a duty to abide by what the court said

0:20:14.680 --> 0:20:17.320
<v Speaker 1>in the in the very near term. And the fifth

0:20:17.320 --> 0:20:21.680
<v Speaker 1>Circuit that they'll be appealing to is the most conservative

0:20:22.160 --> 0:20:25.800
<v Speaker 1>circuit in the country. Do you have any inkling as

0:20:25.840 --> 0:20:29.520
<v Speaker 1>to what it might do. Well. It's interesting because you know,

0:20:29.560 --> 0:20:34.040
<v Speaker 1>I didn't credit these preliminary injunction motions with much chance

0:20:34.080 --> 0:20:38.040
<v Speaker 1>of success, largely because it's it's very difficult to convince

0:20:38.040 --> 0:20:43.439
<v Speaker 1>a court that a temporary by its definition, a temporary

0:20:43.760 --> 0:20:48.359
<v Speaker 1>hold or moratorium for further study, is something that's final

0:20:48.520 --> 0:20:52.320
<v Speaker 1>enough for court to grab onto. But they did that

0:20:52.440 --> 0:20:54.760
<v Speaker 1>here and and the court. You can tell that the

0:20:54.760 --> 0:20:58.040
<v Speaker 1>court knows that this decision was on the edge because

0:20:58.560 --> 0:21:01.120
<v Speaker 1>you don't normally see a four you for page opinion

0:21:01.200 --> 0:21:05.560
<v Speaker 1>on a preliminary injunction motion. And the court spent a

0:21:05.560 --> 0:21:08.040
<v Speaker 1>lot of times justifying the idea that this is a

0:21:08.080 --> 0:21:12.000
<v Speaker 1>final agency action, and there's plenty of support for that,

0:21:12.119 --> 0:21:14.240
<v Speaker 1>and the court went through a full page of citation

0:21:14.400 --> 0:21:17.159
<v Speaker 1>to show that. But there's certainly supporting the other side.

0:21:17.359 --> 0:21:20.160
<v Speaker 1>So I think that this is the case where you've

0:21:20.200 --> 0:21:24.640
<v Speaker 1>got difficulty at both prongs of the preliminary injunction requirements

0:21:24.760 --> 0:21:27.400
<v Speaker 1>and it's a close call. Now, usually the close call

0:21:27.520 --> 0:21:32.240
<v Speaker 1>does go to the court, so maybe in this instance

0:21:32.359 --> 0:21:35.920
<v Speaker 1>the Fifth Circuit would agree. But I don't think that

0:21:36.200 --> 0:21:41.720
<v Speaker 1>the preliminary injunction itself is probably that impactful because this

0:21:41.800 --> 0:21:43.720
<v Speaker 1>is going to have to also play out at the

0:21:43.760 --> 0:21:46.399
<v Speaker 1>district court level on the merits part of the case,

0:21:47.240 --> 0:21:49.440
<v Speaker 1>and by the time we get through that, I fully

0:21:49.440 --> 0:21:51.800
<v Speaker 1>would expect that the bid administration would already have a

0:21:51.880 --> 0:21:57.000
<v Speaker 1>solution to this out, whether that's holding those least sales

0:21:57.080 --> 0:22:01.280
<v Speaker 1>while working on new rules or you know, going through

0:22:01.560 --> 0:22:04.719
<v Speaker 1>some other avenue. Um. I think that the timing is

0:22:05.080 --> 0:22:08.919
<v Speaker 1>it doesn't necessarily force easily sales to happen right away.

0:22:09.280 --> 0:22:12.400
<v Speaker 1>Thanks for being on the show, Brandon. That's Brandon Barnes,

0:22:12.520 --> 0:22:16.439
<v Speaker 1>Bloomberg Intelligence Senior litigation analyst. You can read more of

0:22:16.480 --> 0:22:18.920
<v Speaker 1>Brandon's analysis by going to be I Go on the

0:22:18.960 --> 0:22:24.119
<v Speaker 1>Bloomberg terminal. Pro Football Hall of Famer Shannon Sharp was

0:22:24.160 --> 0:22:28.840
<v Speaker 1>discussing the trade rumors around then Atlanta Falcon starwide receiver

0:22:29.000 --> 0:22:33.320
<v Speaker 1>Julio Jones during his Fox Sports show Undisputed, when Sharp

0:22:33.400 --> 0:22:36.960
<v Speaker 1>decided to call Jones and ask him live on the

0:22:37.040 --> 0:22:40.480
<v Speaker 1>air what we call it as well? Ask him, yes,

0:22:40.760 --> 0:22:48.960
<v Speaker 1>I do right now? Are we calling? Okay? Well, really

0:22:49.000 --> 0:22:52.000
<v Speaker 1>hope he answers here, Julio, have the guts to pick

0:22:52.080 --> 0:22:58.800
<v Speaker 1>up the phone. Yeah, all right, Julio, Lou you want

0:22:58.800 --> 0:23:00.920
<v Speaker 1>to go to the Cowboys, Julio? Or you want to

0:23:00.920 --> 0:23:13.320
<v Speaker 1>stay in Atlanta. Jones was apparently unaware that the call

0:23:13.520 --> 0:23:17.680
<v Speaker 1>and his revelations were being aired live on TV. Now

0:23:17.720 --> 0:23:22.320
<v Speaker 1>no lawsuits have been filed, but theoretically speaking, good Sharp

0:23:22.480 --> 0:23:27.360
<v Speaker 1>or Fox Sports be sued. This week, Massachusetts Supreme Judicial

0:23:27.440 --> 0:23:31.240
<v Speaker 1>Court upheld the dismissal of Summerville Mayor Joe kurt Atoni's

0:23:31.320 --> 0:23:35.000
<v Speaker 1>lawsuit against bar Stool for recording and publishing a phone

0:23:35.000 --> 0:23:38.439
<v Speaker 1>interview because of his consent. So a lot depends on

0:23:38.600 --> 0:23:41.240
<v Speaker 1>what states rules are applied in the case of a

0:23:41.280 --> 0:23:45.240
<v Speaker 1>recorded conversation. Here to discuss the legal implications of an

0:23:45.280 --> 0:23:49.480
<v Speaker 1>ambush interview is Daniel Novak, a publishing industry attorney and

0:23:49.640 --> 0:23:52.679
<v Speaker 1>chair of the New York State Bar Association Committee on

0:23:52.800 --> 0:23:56.800
<v Speaker 1>Media Law. Let's get some basics first. The rule in

0:23:56.920 --> 0:24:00.640
<v Speaker 1>most states is that only one party has to consent

0:24:00.760 --> 0:24:03.480
<v Speaker 1>to a recording. So does that basically mean you can

0:24:03.560 --> 0:24:07.440
<v Speaker 1>tape any conversation if you're in one of those states. Yes,

0:24:07.520 --> 0:24:10.439
<v Speaker 1>and no. If you are in the majority of states

0:24:10.440 --> 0:24:12.840
<v Speaker 1>that we call one party consent, as long as you

0:24:12.880 --> 0:24:16.680
<v Speaker 1>are a party to the conversation, you should be okay.

0:24:16.720 --> 0:24:18.879
<v Speaker 1>But where it gets fuzzy can be where you're not

0:24:18.960 --> 0:24:22.200
<v Speaker 1>a party, and so being one party or two party

0:24:22.240 --> 0:24:25.400
<v Speaker 1>consent states are sort of irrelevant if you're not yourself

0:24:25.520 --> 0:24:29.320
<v Speaker 1>the person that's engaged in the conversation. Now, most jurisdiction

0:24:29.320 --> 0:24:31.720
<v Speaker 1>would just look at whether or not the people that

0:24:31.760 --> 0:24:35.280
<v Speaker 1>were having the conversation had a realistic expectation that it

0:24:35.320 --> 0:24:37.719
<v Speaker 1>would be between them. And so if you're sitting at

0:24:37.720 --> 0:24:40.879
<v Speaker 1>a restaurant, you know, crowd a restaurant next to a

0:24:40.960 --> 0:24:43.439
<v Speaker 1>couple and they're talking and you know everything is with

0:24:43.480 --> 0:24:46.520
<v Speaker 1>an ear shot, it could be okay to record potentially

0:24:46.560 --> 0:24:48.800
<v Speaker 1>because you would say that anyone in that room could

0:24:48.800 --> 0:24:51.320
<v Speaker 1>have heard that. So it gets a little tricky when

0:24:51.359 --> 0:24:53.720
<v Speaker 1>you're not a party, but if you are, then it

0:24:53.800 --> 0:24:58.600
<v Speaker 1>becomes relatively straightforward. But on disputedy is taped in California,

0:24:58.800 --> 0:25:01.720
<v Speaker 1>which is a two party consent state, tell us about

0:25:01.760 --> 0:25:05.719
<v Speaker 1>the law there. So California, despite being very media friendly

0:25:05.760 --> 0:25:08.240
<v Speaker 1>in many respects, they have one of the best what

0:25:08.320 --> 0:25:11.600
<v Speaker 1>we call anti flap laws that discourages plaintiffs from bringing

0:25:11.640 --> 0:25:15.440
<v Speaker 1>baseless defamation suits. They happen to have a more restrictive

0:25:15.720 --> 0:25:18.840
<v Speaker 1>recording statute, and so California is one of those two

0:25:18.880 --> 0:25:21.320
<v Speaker 1>parties states. I think there's about maybe a dozen or

0:25:21.359 --> 0:25:24.480
<v Speaker 1>so of them, and so in California, what jan and

0:25:24.520 --> 0:25:28.880
<v Speaker 1>Sharp did has criminal and civil ramifications. However, the call

0:25:29.000 --> 0:25:31.440
<v Speaker 1>presumably went to Georgia. I don't actually know where really

0:25:31.520 --> 0:25:33.560
<v Speaker 1>I was at the moment, but for the sake of argument,

0:25:33.760 --> 0:25:36.399
<v Speaker 1>he was based there at the time. And so it

0:25:36.520 --> 0:25:39.399
<v Speaker 1>created a clash of laws, because when you look at

0:25:39.520 --> 0:25:42.560
<v Speaker 1>two different parties, it's not always a given the law

0:25:42.640 --> 0:25:47.439
<v Speaker 1>of which state would apply. Logically, it seems like the

0:25:47.560 --> 0:25:50.520
<v Speaker 1>law of the state where the conversation is being recorded

0:25:50.520 --> 0:25:53.440
<v Speaker 1>should apply. Well, it's tricky because you would say it's

0:25:53.440 --> 0:25:56.119
<v Speaker 1>being recorded in California. Right. The arguments, by the way,

0:25:56.160 --> 0:25:59.320
<v Speaker 1>are persuaded on both sides. One side of it would be, well, look,

0:25:59.560 --> 0:26:03.080
<v Speaker 1>why are protecting someone Jones and this instance whose own

0:26:03.119 --> 0:26:05.280
<v Speaker 1>state says this is sign have at it, you know,

0:26:05.400 --> 0:26:08.160
<v Speaker 1>record if you wish at the behest of the state,

0:26:08.320 --> 0:26:12.120
<v Speaker 1>you know California that has no interest in protecting Georgia residents.

0:26:12.119 --> 0:26:15.199
<v Speaker 1>On the other hand, California could have an interest in saying, well,

0:26:15.240 --> 0:26:17.760
<v Speaker 1>look we want to discourage this type of behavior on

0:26:17.800 --> 0:26:21.560
<v Speaker 1>the recorder side, right, it's not just about protecting Georgia residents,

0:26:21.680 --> 0:26:24.560
<v Speaker 1>is actually just telling California residents don't do this. And

0:26:24.600 --> 0:26:26.840
<v Speaker 1>one of the factors that course have looked at as well,

0:26:27.280 --> 0:26:30.760
<v Speaker 1>how feasible is it for people to sort of moderate

0:26:30.880 --> 0:26:34.040
<v Speaker 1>their behavior based on the location of the person they're

0:26:34.080 --> 0:26:36.720
<v Speaker 1>either calling or being called by. You could be calling

0:26:36.760 --> 0:26:38.880
<v Speaker 1>someone to record them. You could similarly decide that when

0:26:38.880 --> 0:26:41.440
<v Speaker 1>someone calls you to hit the record. And so there

0:26:41.520 --> 0:26:45.639
<v Speaker 1>was a case recently where a Georgia company was calling

0:26:45.680 --> 0:26:49.119
<v Speaker 1>California residents and so not only did California have an

0:26:49.119 --> 0:26:53.040
<v Speaker 1>interest in protecting their residence from being recorded, but the

0:26:53.119 --> 0:26:56.399
<v Speaker 1>court found that it wouldn't be too untenable for a

0:26:56.400 --> 0:26:59.400
<v Speaker 1>Georgia company to know who they're calling. Most people know

0:26:59.560 --> 0:27:03.000
<v Speaker 1>who they're calling, and so it wouldn't be unreasonable for

0:27:03.119 --> 0:27:05.520
<v Speaker 1>a Georgia company to say, well, look, this calls a

0:27:05.560 --> 0:27:08.040
<v Speaker 1>California resident. We need to alert them that the call

0:27:08.160 --> 0:27:09.520
<v Speaker 1>is going to be recorded. If they don't like that,

0:27:09.600 --> 0:27:12.080
<v Speaker 1>they can hang up the phone. So in that circumstance,

0:27:12.160 --> 0:27:14.480
<v Speaker 1>the equities all sort of lined up. But you could

0:27:14.520 --> 0:27:17.760
<v Speaker 1>see how when it's reversed and it's a California resident

0:27:17.800 --> 0:27:20.679
<v Speaker 1>calling a Georgia resident, it gets a little trickier because

0:27:20.840 --> 0:27:24.280
<v Speaker 1>it again it becomes about discouraging. And here in this instance, yes,

0:27:24.400 --> 0:27:28.159
<v Speaker 1>Shannon Sharp probably could know that his target within Georgia's

0:27:28.240 --> 0:27:30.560
<v Speaker 1>but not everybody is going to have the presence of

0:27:30.560 --> 0:27:33.240
<v Speaker 1>mind to do that quick mental calculus of where they are.

0:27:33.320 --> 0:27:35.640
<v Speaker 1>And so the court in California might conclude, we don't

0:27:35.640 --> 0:27:39.280
<v Speaker 1>want Shannon Sharp to have to consult, you know, Alexis

0:27:39.320 --> 0:27:43.560
<v Speaker 1>Search to figure out what Julio Jones residences or ask him, hey,

0:27:43.600 --> 0:27:46.719
<v Speaker 1>are you on vacation right now? Maybe cross state lines

0:27:46.880 --> 0:27:49.080
<v Speaker 1>that sort of thing. You know, it's the better policy

0:27:49.160 --> 0:27:51.800
<v Speaker 1>is probably just a discourage it outright, and so, like

0:27:51.880 --> 0:27:54.440
<v Speaker 1>I said, a court could go either way on that question.

0:27:55.000 --> 0:27:57.399
<v Speaker 1>Does there have to be an expectation of privacy? Because

0:27:57.400 --> 0:27:59.840
<v Speaker 1>going back to what you said in the beginning about

0:28:00.040 --> 0:28:03.399
<v Speaker 1>let's say a conversation in a restaurant. Here, you're a

0:28:03.440 --> 0:28:07.920
<v Speaker 1>football star talking to a guy who does a sports

0:28:07.960 --> 0:28:11.240
<v Speaker 1>show on TV. I mean, do you have any expectation

0:28:11.280 --> 0:28:14.200
<v Speaker 1>that what you're saying is not going to be recorded? Yeah,

0:28:14.200 --> 0:28:16.680
<v Speaker 1>and it feels like splitting hairs, But but he does.

0:28:17.000 --> 0:28:20.080
<v Speaker 1>He has an expectation not in the content of his speech,

0:28:20.440 --> 0:28:23.840
<v Speaker 1>but literally in the sound and reproduction of it. And

0:28:23.880 --> 0:28:27.240
<v Speaker 1>so it sounds funny that that would be what the

0:28:27.280 --> 0:28:30.760
<v Speaker 1>tipping point is. But California law does not want people

0:28:30.880 --> 0:28:34.960
<v Speaker 1>using electronic means to record people. And so rather than

0:28:35.000 --> 0:28:39.280
<v Speaker 1>trying to have an analysis that invites all these complicated

0:28:39.320 --> 0:28:42.840
<v Speaker 1>factors like what was the objective expectation of both sides,

0:28:42.880 --> 0:28:46.480
<v Speaker 1>what was their subjective beliefs, etcetera, California has created this

0:28:46.560 --> 0:28:49.240
<v Speaker 1>bright mind rule, which is, if you want to preserve

0:28:49.400 --> 0:28:52.400
<v Speaker 1>this conversation for posterity, you need to ask the other

0:28:52.440 --> 0:28:54.680
<v Speaker 1>side or let them know, and then again they can

0:28:54.680 --> 0:28:56.440
<v Speaker 1>decide what don't they want to continue? And that's why

0:28:56.800 --> 0:28:59.440
<v Speaker 1>you know, when you and I receive calls that are automated,

0:28:59.440 --> 0:29:01.920
<v Speaker 1>if it says this call will be recorded, and that's

0:29:01.920 --> 0:29:04.040
<v Speaker 1>your cue. If you don't like that, hang up the phone.

0:29:04.520 --> 0:29:08.040
<v Speaker 1>What about Fox Sports because it's the deep pocket here.

0:29:08.120 --> 0:29:10.880
<v Speaker 1>If it were sued, do the same factors come into

0:29:10.880 --> 0:29:14.640
<v Speaker 1>play or are there other factors? So Fox Sports is

0:29:14.640 --> 0:29:18.560
<v Speaker 1>an interesting sort of extension of this because in the

0:29:18.640 --> 0:29:23.400
<v Speaker 1>vast majority of recording and wire tap cases there's an intermediary.

0:29:23.480 --> 0:29:25.719
<v Speaker 1>So if Shanna Sharp was just the next player who

0:29:25.800 --> 0:29:29.280
<v Speaker 1>had recorded his friends conversation and handed it to Fox Sports,

0:29:29.560 --> 0:29:32.440
<v Speaker 1>Fox Sports will be protected under the Supreme Court ruling

0:29:32.480 --> 0:29:35.600
<v Speaker 1>in a case called part Nicki versus Bopper, And in

0:29:35.680 --> 0:29:38.720
<v Speaker 1>that case they essentially said that if your hands aren't dirty,

0:29:38.760 --> 0:29:41.040
<v Speaker 1>that you're not going to be responsible. And that's just

0:29:41.200 --> 0:29:43.240
<v Speaker 1>designed to give them the news media some breathing room

0:29:43.240 --> 0:29:46.400
<v Speaker 1>because oftentimes the most important material of the public interest

0:29:46.720 --> 0:29:50.320
<v Speaker 1>in the chain of title, there's been something that's gone

0:29:50.360 --> 0:29:53.880
<v Speaker 1>wrong in terms of legality, and so you can't police

0:29:53.920 --> 0:29:56.920
<v Speaker 1>the media for accurate reporting on a stolen you know,

0:29:57.200 --> 0:30:00.400
<v Speaker 1>or recorded material. You know. That's all of leak sporting,

0:30:00.440 --> 0:30:04.240
<v Speaker 1>really right, and so here we have a difference because

0:30:04.800 --> 0:30:07.640
<v Speaker 1>Fox Sports was live on the air, and there's the

0:30:07.720 --> 0:30:11.160
<v Speaker 1>litional conduct. They're the ones that are hitting on one sense,

0:30:11.160 --> 0:30:13.640
<v Speaker 1>Stantons hitting record on his phone or he's not recording

0:30:13.680 --> 0:30:16.200
<v Speaker 1>it really, he's just talking out loud on speaker phone

0:30:16.200 --> 0:30:18.600
<v Speaker 1>and you can hear how it Roy, it's really the

0:30:18.640 --> 0:30:23.000
<v Speaker 1>recorder is actually Fox Sports, who has their cameras trained

0:30:23.000 --> 0:30:26.800
<v Speaker 1>on on Shanna. He's miked up for audio. Now, you

0:30:26.880 --> 0:30:30.040
<v Speaker 1>could argue that again this is what's been reported. They

0:30:30.080 --> 0:30:32.200
<v Speaker 1>weren't aware that you planned to do this, and so

0:30:32.320 --> 0:30:34.680
<v Speaker 1>maybe you can find the room in your heart to

0:30:35.120 --> 0:30:37.360
<v Speaker 1>sort of forgive them that this was like an emerging

0:30:37.440 --> 0:30:40.480
<v Speaker 1>situation and and they didn't have the presence of mind

0:30:40.600 --> 0:30:43.320
<v Speaker 1>to yell cut or you know, take it to a

0:30:43.360 --> 0:30:46.280
<v Speaker 1>commercial or something. But the call lasted at about a minute,

0:30:46.400 --> 0:30:49.520
<v Speaker 1>and so at certain points you're all in. And so

0:30:49.920 --> 0:30:52.320
<v Speaker 1>that the bart Nikki president and Maybew does not really

0:30:52.360 --> 0:30:57.040
<v Speaker 1>protect them because again it's there's no transfer to a middleman.

0:30:58.000 --> 0:31:01.680
<v Speaker 1>The live nature of these shows makes it difficult. Yeah,

0:31:01.720 --> 0:31:04.040
<v Speaker 1>and I think it's just a consequence of the formats.

0:31:04.040 --> 0:31:06.160
<v Speaker 1>But they shows, you know, they can be taped live,

0:31:06.520 --> 0:31:10.080
<v Speaker 1>they don't necessarily involve a lot of careful vetting of material.

0:31:10.280 --> 0:31:12.920
<v Speaker 1>You know, if this was a news program as opposed

0:31:12.960 --> 0:31:15.880
<v Speaker 1>to commentary, there's probably a lawyer in the building. You

0:31:15.880 --> 0:31:18.160
<v Speaker 1>can say, hey, can I run this idea by you?

0:31:18.200 --> 0:31:20.360
<v Speaker 1>And they'll say you need to get consent. And so,

0:31:20.520 --> 0:31:24.720
<v Speaker 1>because this was not in their wheelhouse and Shannon Sharpe

0:31:24.840 --> 0:31:27.440
<v Speaker 1>was probably going off book, I think that they just

0:31:27.440 --> 0:31:29.680
<v Speaker 1>didn't have the presence of mind. I would find on

0:31:29.800 --> 0:31:31.800
<v Speaker 1>like that they had a lawyer standing there, you know,

0:31:32.000 --> 0:31:33.920
<v Speaker 1>with like the red button, the way that you might

0:31:34.480 --> 0:31:37.720
<v Speaker 1>in other circumstances like reality television where you think something

0:31:37.760 --> 0:31:39.440
<v Speaker 1>could go wrong and you need to be able to

0:31:39.560 --> 0:31:41.640
<v Speaker 1>be on a tent second delay or something like that. Now,

0:31:41.680 --> 0:31:43.880
<v Speaker 1>I don't know what procedures they have in place. They

0:31:43.880 --> 0:31:45.680
<v Speaker 1>could be on the delay. There could be all these

0:31:45.680 --> 0:31:48.000
<v Speaker 1>ways that it could have been slowed down. And tell

0:31:48.080 --> 0:31:51.360
<v Speaker 1>us a little about the specifics of the California law. Here.

0:31:51.840 --> 0:31:55.200
<v Speaker 1>It comes in under the specific California Anti Recording Statute.

0:31:55.560 --> 0:31:58.840
<v Speaker 1>And I should say that it's not terribly renumerative. The

0:31:59.000 --> 0:32:01.800
<v Speaker 1>statute I think said five tho dollars per a sense,

0:32:02.360 --> 0:32:05.760
<v Speaker 1>or I think triple your actual damages and just like

0:32:05.840 --> 0:32:09.560
<v Speaker 1>in defamation of privacy, it's very hard to assign a

0:32:09.640 --> 0:32:13.080
<v Speaker 1>dollar figure too damages, and so the only reason I

0:32:13.160 --> 0:32:16.880
<v Speaker 1>could see Julio Jones bringing a claim is just on principle,

0:32:16.960 --> 0:32:19.080
<v Speaker 1>and I think he's already been sort of vindicated. In

0:32:19.120 --> 0:32:21.360
<v Speaker 1>the public side, people were upset that Sharp did this,

0:32:21.520 --> 0:32:25.080
<v Speaker 1>and so it's not a high upside play. The actual

0:32:25.600 --> 0:32:28.719
<v Speaker 1>legal side of it had some complexity, you know, like

0:32:28.760 --> 0:32:32.200
<v Speaker 1>we discussed it's California law. Really that's why here. But

0:32:32.480 --> 0:32:36.640
<v Speaker 1>you know people have sued. Bar Stool Sports was sued

0:32:36.720 --> 0:32:39.840
<v Speaker 1>for recording. They won their case. It was it had

0:32:39.880 --> 0:32:42.480
<v Speaker 1>a different fact pattern, but it wouldn't be the first

0:32:42.520 --> 0:32:45.240
<v Speaker 1>time that somebody felt put off by being reported and

0:32:45.280 --> 0:32:48.160
<v Speaker 1>decided to sue. Thanks for being on the show. That's

0:32:48.240 --> 0:32:51.680
<v Speaker 1>Daniel Novak, publishing industry attorney, and I know that ten

0:32:51.760 --> 0:32:54.520
<v Speaker 1>v Val Sangakar is a co writer of your article

0:32:54.560 --> 0:32:56.600
<v Speaker 1>on this issue. And that's it for this edition of

0:32:56.600 --> 0:32:59.120
<v Speaker 1>the Bloomberg Law Show. Remember you can always at the

0:32:59.200 --> 0:33:01.920
<v Speaker 1>latest legal news is on our Bloomberg Law Podcast. You

0:33:01.960 --> 0:33:05.960
<v Speaker 1>can find them on Apple Podcasts, Spotify and at www

0:33:06.200 --> 0:33:10.680
<v Speaker 1>dot Bloomberg dot com, slash podcast Slash Law. I'm June Boso,

0:33:10.800 --> 0:33:12.080
<v Speaker 1>and you're listening to Bloomberg