1 00:00:00,080 --> 00:00:02,440 Speaker 1: Now it's time for our daily Bloomberg Law of Brief, 2 00:00:02,720 --> 00:00:05,640 Speaker 1: exploring legal issues in the news, and Today, Bloomberg Law 3 00:00:05,680 --> 00:00:09,080 Speaker 1: host Doing Grosso discusses why one appeals court ruled the 4 00:00:09,200 --> 00:00:13,760 Speaker 1: SEC's use of in house judges unconstitutional while another allowed 5 00:00:13,840 --> 00:00:16,800 Speaker 1: the practice to continue. She speaks with Peter Henning, a 6 00:00:16,840 --> 00:00:20,919 Speaker 1: law professor at Wayne State University, and Gregory Murvillo, founding 7 00:00:20,960 --> 00:00:26,439 Speaker 1: partner and Morvillo LLP. Peter explained the reasoning that led 8 00:00:26,520 --> 00:00:31,960 Speaker 1: these appellate courts to come to different conclusions, completely different conclusions. Well, 9 00:00:32,000 --> 00:00:37,599 Speaker 1: the issue here is whether the secs administrative law judges 10 00:00:38,080 --> 00:00:43,080 Speaker 1: are what are called inferior officers. The Constitution requires that 11 00:00:43,640 --> 00:00:48,239 Speaker 1: an inferior officer be appointed either by the President or 12 00:00:48,360 --> 00:00:53,400 Speaker 1: by someone who Congress designates who can appoint that person, 13 00:00:53,600 --> 00:00:57,400 Speaker 1: and so you have to go through a particular appointment process. 14 00:00:57,840 --> 00:01:01,280 Speaker 1: If you're just an employee like I was back long ago, 15 00:01:01,800 --> 00:01:05,600 Speaker 1: then you're just hired through the regular civil service process. 16 00:01:06,360 --> 00:01:11,920 Speaker 1: The split here is whether these judges are inferior officers. 17 00:01:12,120 --> 00:01:17,880 Speaker 1: Do they qualify for that position? And there's some history 18 00:01:17,959 --> 00:01:20,160 Speaker 1: in the Supreme Court about that, but it's really a 19 00:01:20,400 --> 00:01:24,679 Speaker 1: pretty simple straightforward issue. Are they or aren't they. Of 20 00:01:24,720 --> 00:01:28,119 Speaker 1: course playing that out will be the really difficult part. 21 00:01:28,440 --> 00:01:33,280 Speaker 1: Greg The SEC has been using administrative judges since shortly 22 00:01:33,319 --> 00:01:38,280 Speaker 1: after it was created in four Why the controversy now, Well, 23 00:01:38,440 --> 00:01:43,480 Speaker 1: the controversy stems from the fact that most defendants don't 24 00:01:43,600 --> 00:01:50,280 Speaker 1: believe it is an inherently fair process. The SEC wins 25 00:01:50,320 --> 00:01:54,760 Speaker 1: somewhere in the neighborhood of of their cases that are 26 00:01:54,800 --> 00:01:58,480 Speaker 1: brought in front of an SEC a l J, whereas 27 00:01:58,760 --> 00:02:01,400 Speaker 1: when they bring cases in federal court there down and 28 00:02:01,440 --> 00:02:05,320 Speaker 1: around the seventy mark. So the difference between going to 29 00:02:05,360 --> 00:02:08,760 Speaker 1: federal court and going to have your case heard before 30 00:02:08,800 --> 00:02:11,799 Speaker 1: in a l J is a huge one in terms 31 00:02:11,840 --> 00:02:16,799 Speaker 1: of the of whether you can or can't win. And indeed, 32 00:02:16,800 --> 00:02:21,400 Speaker 1: there are some a ljs who have never decided for 33 00:02:21,560 --> 00:02:24,520 Speaker 1: anyone but the SEC and to defendants look at it 34 00:02:24,560 --> 00:02:28,040 Speaker 1: and they think this is an inherently unfair process. That's 35 00:02:28,040 --> 00:02:32,600 Speaker 1: how it started this kind of a challenge. As Gregory Morvillo, 36 00:02:32,680 --> 00:02:35,880 Speaker 1: founding partner at moorevilleo l LP, and Peter Henning, a 37 00:02:35,960 --> 00:02:39,320 Speaker 1: law professor ed Wayne State University, speaking with Bloomberg Law 38 00:02:39,360 --> 00:02:42,000 Speaker 1: host joom Garrosso. You can listen to Bloomberg Law wait 39 00:02:42,080 --> 00:02:45,200 Speaker 1: days at one pm Wall Street Time here on Bloomberg 40 00:02:45,280 --> 00:02:48,079 Speaker 1: Radio Now Among the top legal stories from Bloomberg Law 41 00:02:48,200 --> 00:02:52,040 Speaker 1: Qualcom says China's Mazoo Technology has agreed to pay licensing 42 00:02:52,080 --> 00:02:55,480 Speaker 1: fees to settle legal battles in China and three other countries. 43 00:02:55,720 --> 00:02:58,120 Speaker 1: The move demonstrates that the U S company can defend 44 00:02:58,200 --> 00:03:01,200 Speaker 1: its intellectual property in the world, the biggest smartphone market. 45 00:03:01,560 --> 00:03:04,080 Speaker 1: This is the first time Quall Calm has asked Chinese 46 00:03:04,080 --> 00:03:08,000 Speaker 1: authorities to enforce a settlement that set terms for licensing fees. 47 00:03:08,360 --> 00:03:11,160 Speaker 1: The deal also ends patent conflicts in Germany, France, and 48 00:03:11,400 --> 00:03:14,840 Speaker 1: the US. Lawyers in a climate change case want a 49 00:03:14,960 --> 00:03:17,920 Speaker 1: question President elect Donald Trump's choice for a Secretary of 50 00:03:18,000 --> 00:03:21,440 Speaker 1: State x On Mobile CEO Rex Tiller, since testimony is 51 00:03:21,480 --> 00:03:25,600 Speaker 1: set for the day before Trump's inauguration January. The lawsuit 52 00:03:25,720 --> 00:03:28,679 Speaker 1: was filed by teenagers claiming the US government failed to 53 00:03:28,720 --> 00:03:32,200 Speaker 1: protect the environment from global warming. X Son has joined 54 00:03:32,200 --> 00:03:35,520 Speaker 1: the government in fighting this suit. In California, a parole 55 00:03:35,600 --> 00:03:38,440 Speaker 1: panel has delayed a decision on whether to release an 56 00:03:38,440 --> 00:03:42,480 Speaker 1: accomplice of cult killer Charles Manson. Patricia Cranwinkle took part 57 00:03:42,520 --> 00:03:45,040 Speaker 1: in the killing of actress Sharon Tate and six other 58 00:03:45,080 --> 00:03:48,280 Speaker 1: people forty seven years ago. She's now sixty nine, has 59 00:03:48,280 --> 00:03:51,760 Speaker 1: been denied parole thirteen times, and is the longest serving 60 00:03:51,800 --> 00:03:56,400 Speaker 1: female inmates in California and as this morning's Bloomberg Law Brief. 61 00:03:56,400 --> 00:03:58,920 Speaker 1: You can find more legal news at Bloomberg Law dot 62 00:03:58,960 --> 00:04:02,720 Speaker 1: com and Bloomberg BNA dot com. Attorneys will find exceptional 63 00:04:02,800 --> 00:04:06,080 Speaker 1: legal research and business development tools there as well. Visit 64 00:04:06,080 --> 00:04:09,440 Speaker 1: Bloomberg Law dot com and Bloomberg Bena dot com for 65 00:04:09,520 --> 00:04:10,400 Speaker 1: more information.