Speaker 1: Now it's time for our daily Bloomberg Law of Brief,
Speaker 1: exploring legal issues in the news, and Today, Bloomberg Law
Speaker 1: host Doing Grosso discusses why one appeals court ruled the
Speaker 1: SEC's use of in house judges unconstitutional while another allowed
Speaker 1: the practice to continue. She speaks with Peter Henning, a
Speaker 1: law professor at Wayne State University, and Gregory Murvillo, founding
Speaker 1: partner and Morvillo LLP. Peter explained the reasoning that led
Speaker 1: these appellate courts to come to different conclusions, completely different conclusions. Well,
Speaker 1: the issue here is whether the secs administrative law judges
Speaker 1: are what are called inferior officers. The Constitution requires that
Speaker 1: an inferior officer be appointed either by the President or
Speaker 1: by someone who Congress designates who can appoint that person,
Speaker 1: and so you have to go through a particular appointment process.
Speaker 1: If you're just an employee like I was back long ago,
Speaker 1: then you're just hired through the regular civil service process.
Speaker 1: The split here is whether these judges are inferior officers.
Speaker 1: Do they qualify for that position? And there's some history
Speaker 1: in the Supreme Court about that, but it's really a
Speaker 1: pretty simple straightforward issue. Are they or aren't they. Of
Speaker 1: course playing that out will be the really difficult part.
Speaker 1: Greg The SEC has been using administrative judges since shortly
Speaker 1: after it was created in four Why the controversy now, Well,
Speaker 1: the controversy stems from the fact that most defendants don't
Speaker 1: believe it is an inherently fair process. The SEC wins
Speaker 1: somewhere in the neighborhood of of their cases that are
Speaker 1: brought in front of an SEC a l J, whereas
Speaker 1: when they bring cases in federal court there down and
Speaker 1: around the seventy mark. So the difference between going to
Speaker 1: federal court and going to have your case heard before
Speaker 1: in a l J is a huge one in terms
Speaker 1: of the of whether you can or can't win. And indeed,
Speaker 1: there are some a ljs who have never decided for
Speaker 1: anyone but the SEC and to defendants look at it
Speaker 1: and they think this is an inherently unfair process. That's
Speaker 1: how it started this kind of a challenge. As Gregory Morvillo,
Speaker 1: founding partner at moorevilleo l LP, and Peter Henning, a
Speaker 1: law professor ed Wayne State University, speaking with Bloomberg Law
Speaker 1: host joom Garrosso. You can listen to Bloomberg Law wait
Speaker 1: days at one pm Wall Street Time here on Bloomberg
Speaker 1: Radio Now Among the top legal stories from Bloomberg Law
Speaker 1: Qualcom says China's Mazoo Technology has agreed to pay licensing
Speaker 1: fees to settle legal battles in China and three other countries.
Speaker 1: The move demonstrates that the U S company can defend
Speaker 1: its intellectual property in the world, the biggest smartphone market.
Speaker 1: This is the first time Quall Calm has asked Chinese
Speaker 1: authorities to enforce a settlement that set terms for licensing fees.
Speaker 1: The deal also ends patent conflicts in Germany, France, and
Speaker 1: the US. Lawyers in a climate change case want a
Speaker 1: question President elect Donald Trump's choice for a Secretary of
Speaker 1: State x On Mobile CEO Rex Tiller, since testimony is
Speaker 1: set for the day before Trump's inauguration January. The lawsuit
Speaker 1: was filed by teenagers claiming the US government failed to
Speaker 1: protect the environment from global warming. X Son has joined
Speaker 1: the government in fighting this suit. In California, a parole
Speaker 1: panel has delayed a decision on whether to release an
Speaker 1: accomplice of cult killer Charles Manson. Patricia Cranwinkle took part
Speaker 1: in the killing of actress Sharon Tate and six other
Speaker 1: people forty seven years ago. She's now sixty nine, has
Speaker 1: been denied parole thirteen times, and is the longest serving
Speaker 1: female inmates in California and as this morning's Bloomberg Law Brief.
Speaker 1: You can find more legal news at Bloomberg Law dot
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