WEBVTT - Obamacare Saved at Supreme Court Again

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<v Speaker 1>This is Bloombird Law with June Brussel from Bloomberg Radio.

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<v Speaker 1>Obamacare is safe from a legal challenge at the Supreme

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<v Speaker 1>Court once again. By a vote of seven to two,

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<v Speaker 1>the Justice has rejected the third Republican attack on the

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<v Speaker 1>landmark law that provides health insurance to twenty million people.

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<v Speaker 1>The opinion did not deal with the merits of the case,

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<v Speaker 1>but rather ruled the challengers didn't have the right to

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<v Speaker 1>sue because they weren't injured by the now toothless individual mandate.

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<v Speaker 1>This lack of standing was an issue Chief Justice John

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<v Speaker 1>Roberts and Justice Clarence Thomas brought up in the oral

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<v Speaker 1>arguments by posing several hypotheticals. Let's say Congress passes a

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<v Speaker 1>law saying everybody has to mow their lawn once a week,

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<v Speaker 1>and they even make a lot of findings about why

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<v Speaker 1>that's a good thing. You know, it makes the country

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<v Speaker 1>look neater, you get fresh air if you have to

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<v Speaker 1>do that, supports the lawnmower business. Um. And but the

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<v Speaker 1>fine for violating it is zero zero dollars. Um. Do

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<v Speaker 1>they have standing? I assume that in most places there

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<v Speaker 1>is no penalty for wearing a face mask or a

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<v Speaker 1>mask during covid um, but there is some degree of

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<v Speaker 1>opprobrium if one does not wear it in certain settings.

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<v Speaker 1>Joining me is Neil Kincaff, a professor of constitutional law

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<v Speaker 1>at the Georgia State University College of Law. Why is

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<v Speaker 1>seven month wait to hand down this decision which is

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<v Speaker 1>seven to two and just sixteen pages long. That's a

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<v Speaker 1>great question. I wish I knew the answer. Maybe someday

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<v Speaker 1>the conference notes will tell us what was really going on,

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<v Speaker 1>because you're right, it's seven to two decisions and it's

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<v Speaker 1>on a technicality, really on standing, and so why did

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<v Speaker 1>it take so long? And you can only imagine the

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<v Speaker 1>justices were actually going back and forth about the merits

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<v Speaker 1>and then decided to instead resolve it on this jurisdictional ground. Yeah,

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<v Speaker 1>so tell us why the court decided as it did.

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<v Speaker 1>So it ruled that the parties who brought the case

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<v Speaker 1>didn't have the authority the jurisdiction to bring the case.

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<v Speaker 1>So in order to bring a case, you have to

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<v Speaker 1>be an actually injured party. So it can't be that

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<v Speaker 1>you just think Obamacare is unconstitutional or you think the

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<v Speaker 1>government is doing something that violates the law that doesn't

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<v Speaker 1>allow you to bring a lawsuit, you have to be

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<v Speaker 1>actually personally harmed by the government's action, and then if

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<v Speaker 1>you are, you can say I'm harmed and the government

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<v Speaker 1>is acting on constitutionally, Court, please order a remedy. And

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<v Speaker 1>so what the court set in this case is that

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<v Speaker 1>the plaintiffs there were two individuals and a set of

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<v Speaker 1>twelve states. So the Supreme Court set, you haven't been

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<v Speaker 1>directly harmed by anything the federal government has done. And

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<v Speaker 1>if you pay attention to what the substance of the

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<v Speaker 1>case was about, it's easy to see how that was

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<v Speaker 1>the case. What they were complaining about is that Congress

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<v Speaker 1>in seventeen amended Obamacare to move the provision imposing a

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<v Speaker 1>penalty on anyone who didn't buy the required insurance. And

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<v Speaker 1>so what you had was this odd situation of two

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<v Speaker 1>individuals who are complaining that there's a requirement that they

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<v Speaker 1>buy insurance, but there's no actual penalty or anything that

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<v Speaker 1>happens to them if they don't go ahead and do it.

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<v Speaker 1>So the court said, you're not actually harmed. And then

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<v Speaker 1>the states made an even otter argument, saying that their

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<v Speaker 1>costs of running their state would go up because they

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<v Speaker 1>have to run these insurance programs that cover people under Obamacare.

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<v Speaker 1>The problem is, once you eliminate the penalty for not

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<v Speaker 1>signing up for it, it's hard to see how the

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<v Speaker 1>state is being harmed. In fact, if that's their concern,

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<v Speaker 1>you would think removing the penalty helps them because now

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<v Speaker 1>people who don't want it aren't going to sign up

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<v Speaker 1>for it to avoid a penalty. So, if anything, it

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<v Speaker 1>would reduce the state's costs. So the Supreme Court said,

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<v Speaker 1>as to both of these parties, you're not personally injured.

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<v Speaker 1>You're like anybody else who's just out there complaining that

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<v Speaker 1>they don't like Obamacare. Because you don't have a direct

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<v Speaker 1>personal stake in this, you are not allowed to bring

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<v Speaker 1>this lawsuit. The Chief wrote the opinions of the Court

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<v Speaker 1>in the other Obamacare decisions and got a lot of

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<v Speaker 1>criticism from conservatives. Is it surprising that he had it

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<v Speaker 1>off this decision to Justice prior to write. So it

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<v Speaker 1>may be that the Chief has decided that he's gotten

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<v Speaker 1>enough blowback from Obamacare that may have something to do

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<v Speaker 1>with it. The Chief, because he's in the majority, would

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<v Speaker 1>be the one who assigned the writing of this opinion.

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<v Speaker 1>I suspect that because the opinion has to do with

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<v Speaker 1>standing and not with any of the merits. And it's

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<v Speaker 1>an issue that even among the justices is considered kind

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<v Speaker 1>of a boring technicality. So I don't think anyone was

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<v Speaker 1>really lobbying hard to get to write this opinion. What

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<v Speaker 1>did you think about Justice Alito's descent? He called it

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<v Speaker 1>the third installment in our epic Affordable Care Act trilogy.

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<v Speaker 1>So I just think it shows how contentious the issue

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<v Speaker 1>is on the Court. I mean, I think it also

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<v Speaker 1>sort of betrays that Justice Alito isn't really viewing this

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<v Speaker 1>as a law issue, That this is for some of

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<v Speaker 1>the justices, the kind of policy issue that you might

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<v Speaker 1>hear debated and argued about on the cable news shows,

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<v Speaker 1>and that it plays on that level with the justices.

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<v Speaker 1>And I certainly think Justice Alito's dissenting opinion reads that way.

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<v Speaker 1>It reads like it's written for that kind of an

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<v Speaker 1>audience rather than your standard Supreme Court opinion audience. Is

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<v Speaker 1>the cloud over Obamacare gone? Now? Are the legal challenges

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<v Speaker 1>behind us? Well, it's hard for me to say their

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<v Speaker 1>entirely behind us, just because there is so much interest

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<v Speaker 1>in it, and therefore there is so much money available

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<v Speaker 1>for lawyers and groups that want to challenge it, so

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<v Speaker 1>it's possible we'll hear more of it. I would say

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<v Speaker 1>that I think this is the Supreme Court telling people,

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<v Speaker 1>we've really don't want to hear about this anymore. Go away.

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<v Speaker 1>We'll see if they take that advice. Neil. That's Neil

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<v Speaker 1>Kinkoff of the Georgia State University College of Law. Cases

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<v Speaker 1>on abortion and gun rights are already on the Supreme

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<v Speaker 1>Court's docket for next term, and now the Jostices are

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<v Speaker 1>considering adding a third blockbuster case over whether to ban

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<v Speaker 1>colleges from considering race and admissions. The case over whether

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<v Speaker 1>Harvard College intentionally discriminated against Asian American applicants has been

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<v Speaker 1>the most high profile affirmative action case in years, drawing

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<v Speaker 1>protests from both sides. It's an important time to be

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<v Speaker 1>critical of Harvard and to look at how affirmative action

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<v Speaker 1>policies have impacted or discriminated against Asian American communities. Chinese

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<v Speaker 1>Americans support affirmative action. We see how important it is

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<v Speaker 1>to recognize adversity. The Jostices are asking the Biden administration

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<v Speaker 1>to weigh in on the Court of Appeals decision that

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<v Speaker 1>upheld Harvard's policy of using race as a factor in

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<v Speaker 1>admission as a legitimate way to diversify its student body.

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<v Speaker 1>Joining me is Susan Sturm, a professor at Columbia Law School.

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<v Speaker 1>Let's start with the big question, what do you read

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<v Speaker 1>into the Supreme Court asking for the Biden administration's view

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<v Speaker 1>on the Harvard case. You can't fully predict what the

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<v Speaker 1>justices are about. My sense use that number one, they're

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<v Speaker 1>trying to really be thorough about the consideration. So this

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<v Speaker 1>is a step of considering the perspectives of the United States.

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<v Speaker 1>When the administration has changed, they get the opportunity have

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<v Speaker 1>the administration way in that has both the appearance of

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<v Speaker 1>full consideration at every step. And also some justices may

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<v Speaker 1>be really interested in learning something. This could be a formality,

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<v Speaker 1>It could indicate more of a willingness to actually accept

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<v Speaker 1>the case. It could be that there are some justices

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<v Speaker 1>who feel they would get some information that would help

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<v Speaker 1>in their informal deliberation. So let's go back. Tell us

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<v Speaker 1>about the First Circuit's decision. First Circuits decision upheld the

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<v Speaker 1>Harvard admissions approach, which considers diversity as part of a

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<v Speaker 1>compelling interest, and the First Circuit found that Harvard did

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<v Speaker 1>not take race into account in a way that ran

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<v Speaker 1>a foul of the Equal Protection Clause, and that considering

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<v Speaker 1>race as part of holistic review is consistent with the Constitution.

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<v Speaker 1>That was rejecting the arguments of Stutes for Fair Admission,

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<v Speaker 1>suggesting that as they are doing before the Supreme Court,

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<v Speaker 1>number one, suggesting that any consideration of race would violate

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<v Speaker 1>Equal Protection Clause, and number two that Harvard in this

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<v Speaker 1>case considered the race of Asian American applicants in ways

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<v Speaker 1>that demonstrated animal The Circuit rejected those arguments and really,

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<v Speaker 1>in a heavily factual analysis found that had additions approach

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<v Speaker 1>past constitutional muster. So the plaintiffs here, the students for

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<v Speaker 1>Fair Admissions, are outright asking the Supreme Court to overturn

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<v Speaker 1>the landmark two thousand three Grutter case. Yes, they are.

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<v Speaker 1>And part of the reason that there's there's a concern

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<v Speaker 1>about the decision to accept sort is that this is

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<v Speaker 1>a case that relatively soon after that endorsement of Bruder,

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<v Speaker 1>and the facts are fairly strong in this case and

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<v Speaker 1>Harvards we happen and have been so found both by

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<v Speaker 1>the Trial Court and by the First Circuit. So there

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<v Speaker 1>is a concern that with the change in the composition

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<v Speaker 1>of the Court that if the Court were to accept

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<v Speaker 1>sort if, that might signal a willingness to either cut

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<v Speaker 1>back dramatically the circumstances under which colleges and universities can

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<v Speaker 1>explicitly consider race, or to eliminate that consideration completely. And

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<v Speaker 1>this would be a deeply problematic decision on the part

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<v Speaker 1>of the Court. Why I'm curious about the Court asking

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<v Speaker 1>the Biden administration for its input is that it seems

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<v Speaker 1>pretty clear that the Biden administration is going to disagree

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<v Speaker 1>with the position the Trump administration took supporting this lawsuit,

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<v Speaker 1>because the Biden administration has already dropped the Yale lawsuit

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<v Speaker 1>that the Trump administration brought. It's a good question, and

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<v Speaker 1>again it's difficult to know whether the request is to

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<v Speaker 1>really get updated views on the part of the government

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<v Speaker 1>that will then inform a reconsideration internally to the Court.

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<v Speaker 1>That could be one signal. Another signal is just the

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<v Speaker 1>interest of thoroughness, and I think Chief Justice Robert is

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<v Speaker 1>one who is interested in conveying an idea of legitimacy

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<v Speaker 1>on the part of the Court, even as it might

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<v Speaker 1>be an activist court that's really cutting back on the

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<v Speaker 1>court role in affording racial justice. So this could be

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<v Speaker 1>a process e Z. We've offered every opportunity at every

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<v Speaker 1>step of the way, and this is a circumstance under

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<v Speaker 1>which we still find it appropriate to change, to step

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<v Speaker 1>back on what's called starry decisive, which is upholding settled precedent.

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<v Speaker 1>Or it could be an effort to really seriously think

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<v Speaker 1>about whether this is a time kind of play to

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<v Speaker 1>open up these questions about the propriety under the Constitution

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<v Speaker 1>as the Court we said of taking race into account.

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<v Speaker 1>So it was just in I believe that the Court

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<v Speaker 1>reaffirmed the consideration of race in college admissions, but that

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<v Speaker 1>was by a four to three vote, and it's a

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<v Speaker 1>really different court. Now. Tell us what the court decide

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<v Speaker 1>in and how it's different now. The Court decided in that,

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<v Speaker 1>first of all, reaffirmed that diversity is a compelling interest,

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<v Speaker 1>which is what's required to take race into account under

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<v Speaker 1>the Equal Protection Clause. That holistic review is warranted and

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<v Speaker 1>permitted under the Equal Protection Clause uh, and that higher

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<v Speaker 1>education institutions continued to be entitled to deference given that

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<v Speaker 1>they are the ones who the best judges of the

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<v Speaker 1>academic requirements, but that courts will give a searching review

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<v Speaker 1>to how that judgment is exercised, and that there needs

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<v Speaker 1>to be an evidence based justification for taking race into account.

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<v Speaker 1>So all of that was upheld and reaffirmed by the

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<v Speaker 1>Court in twenty seen, as you said, in this four

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<v Speaker 1>three decisions. So on that court, the three justice who

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<v Speaker 1>were in dissent are still on the court, that's Chief

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<v Speaker 1>Justice John Roberts and just this Clarence Thomas and Samuel Alito.

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<v Speaker 1>But two of the justice who were in the majority

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<v Speaker 1>are no longer on the court. That's, of course, the

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<v Speaker 1>late Justice Ruth Bader Ginsburg and Justice Anthony Kennedy who retired.

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<v Speaker 1>So the court now is really different from what it

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<v Speaker 1>was then. Do we know how the three new justices

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<v Speaker 1>regards taking race into consideration and admissions? There are some

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<v Speaker 1>indications from their prior decisions that these new justices have

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<v Speaker 1>embraced this kind of color blindness approach, that looking at

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<v Speaker 1>race as uh something that cannot be taken into account

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<v Speaker 1>at all. Having said that, the configuration of the Court

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<v Speaker 1>is different, and I think there also is the possibility

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<v Speaker 1>that what this means for the center of the court

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<v Speaker 1>is that there may be a concern learn about thinking

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<v Speaker 1>about starry decisive, namely the upholding of precedent in a

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<v Speaker 1>situation in which the world has not changed except for

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<v Speaker 1>the composition of the Court. So even though we have

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<v Speaker 1>new justices, it's not a foregone conclusion that that will

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<v Speaker 1>mean that the justices that were in the dissent in

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<v Speaker 1>the opinions will then view this as the time to

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<v Speaker 1>really cut back on or retract from a well established precedent.

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<v Speaker 1>And there are examples of the Chief Justice, for example,

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<v Speaker 1>upholding a decision that he might personally disagree with, but

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<v Speaker 1>that is clear precedent for which there is no established

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<v Speaker 1>spaces for cutting back. So we do have three new justices,

0:14:44.520 --> 0:14:47.480
<v Speaker 1>at least two of whom might be very willing to

0:14:47.520 --> 0:14:52.040
<v Speaker 1>take a radical approach to constitutional interpretation and to a

0:14:52.080 --> 0:14:56.880
<v Speaker 1>more activist approach that reflects their own views of the Constitution.

0:14:57.280 --> 0:15:00.280
<v Speaker 1>I don't think that tells us how the Court would

0:15:00.320 --> 0:15:04.080
<v Speaker 1>actually rule. I think there's some possibility that there would

0:15:04.120 --> 0:15:08.680
<v Speaker 1>be cutting back, but not an overturning of president with

0:15:08.840 --> 0:15:12.240
<v Speaker 1>this new majority. I want to talk a little bit

0:15:12.240 --> 0:15:17.200
<v Speaker 1>about Edward Blum, who leads to students for fair admissions.

0:15:17.800 --> 0:15:21.320
<v Speaker 1>He was also behind the lawsuit behind the Shelby County

0:15:21.400 --> 0:15:25.280
<v Speaker 1>decision which curtailed voting rights. Is he a one man

0:15:25.400 --> 0:15:29.320
<v Speaker 1>the activist or is this is a vast organization? We

0:15:29.400 --> 0:15:33.600
<v Speaker 1>have to give him credit. He's been very effective, um

0:15:33.640 --> 0:15:39.960
<v Speaker 1>as a small organization that has been able to in

0:15:40.520 --> 0:15:44.120
<v Speaker 1>part because of the change in the politics of the

0:15:44.240 --> 0:15:50.600
<v Speaker 1>nation and the election of Donald Trump and the shift

0:15:50.680 --> 0:15:55.520
<v Speaker 1>in the judiciary uh that has followed because of the

0:15:55.600 --> 0:16:02.120
<v Speaker 1>judges that uh that uh former president appointed. That that

0:16:02.320 --> 0:16:05.360
<v Speaker 1>he has been able to really leverage a small amount

0:16:05.360 --> 0:16:08.360
<v Speaker 1>of resources to have a big effect. And part of

0:16:08.400 --> 0:16:12.840
<v Speaker 1>what he's done is really used the court system to

0:16:13.040 --> 0:16:16.120
<v Speaker 1>compensate for the fact that he is a small organization.

0:16:16.960 --> 0:16:20.440
<v Speaker 1>Uh that Uh there isn't a sense that that this

0:16:20.600 --> 0:16:25.320
<v Speaker 1>is a h A large, you know, populous movement. There

0:16:25.320 --> 0:16:31.120
<v Speaker 1>have been very wealthy people who have financed his organizations

0:16:31.480 --> 0:16:37.160
<v Speaker 1>so that they can uh martial uh legal resources to

0:16:37.520 --> 0:16:42.360
<v Speaker 1>fight this battle. Um And UH, so he's been he

0:16:42.480 --> 0:16:47.320
<v Speaker 1>has been able to be quite effective marshaling the resources

0:16:47.520 --> 0:16:53.800
<v Speaker 1>biggal resources heavily financed by wealthy uh contributors uh and

0:16:53.920 --> 0:16:58.520
<v Speaker 1>then using the the shift in the in the composition

0:16:58.520 --> 0:17:04.480
<v Speaker 1>of the court to have really outsized impact. So if

0:17:04.520 --> 0:17:07.480
<v Speaker 1>you consider that there's no split in the circuits that

0:17:07.560 --> 0:17:10.760
<v Speaker 1>the Supreme Court has to resolve, and the Court is

0:17:10.800 --> 0:17:15.400
<v Speaker 1>already going to be considering next term the controversial issues

0:17:15.720 --> 0:17:19.560
<v Speaker 1>of abortion and gun rights, what would be your guests

0:17:19.600 --> 0:17:22.480
<v Speaker 1>as to whether or not the justices will take this case.

0:17:23.560 --> 0:17:27.199
<v Speaker 1>I think it's really anybody's guests as to whether the

0:17:27.240 --> 0:17:31.040
<v Speaker 1>Court will take this I think that this depends in

0:17:31.160 --> 0:17:36.720
<v Speaker 1>part on the appetite of the four justices. Two, as

0:17:36.840 --> 0:17:40.639
<v Speaker 1>you've indicated, placed the Court smack in the middle of

0:17:41.040 --> 0:17:45.560
<v Speaker 1>the most polarizing and controversial issues of our time. And

0:17:45.640 --> 0:17:48.520
<v Speaker 1>to do that in a situation when there would be

0:17:48.520 --> 0:17:52.960
<v Speaker 1>no question that were the Court to dramatically cut back

0:17:53.160 --> 0:17:57.679
<v Speaker 1>on or overturn the consideration of race in admissions, that

0:17:57.800 --> 0:18:02.040
<v Speaker 1>the Court would be taking a radical activist stance that

0:18:02.359 --> 0:18:06.480
<v Speaker 1>is contrary to start decisive. So the question is does

0:18:06.520 --> 0:18:09.359
<v Speaker 1>the Court have an appetite for that with new justices

0:18:09.400 --> 0:18:11.960
<v Speaker 1>on the bench and with these other issues that the

0:18:12.000 --> 0:18:15.240
<v Speaker 1>Court will also be faced. And it's hard to say

0:18:15.280 --> 0:18:18.040
<v Speaker 1>because we have this new composition of the court and

0:18:18.320 --> 0:18:22.439
<v Speaker 1>that question about how the Court is going to construct

0:18:22.560 --> 0:18:27.040
<v Speaker 1>its role and its legitimacy with the populace is up

0:18:27.040 --> 0:18:30.480
<v Speaker 1>for grips. The law in this area is going to

0:18:30.640 --> 0:18:34.040
<v Speaker 1>really get made on the ground. And the biggest concern

0:18:34.119 --> 0:18:37.240
<v Speaker 1>that I have is that whatever the Supreme Court decides,

0:18:37.600 --> 0:18:41.760
<v Speaker 1>that high right institutions and others will addicate responsibility for

0:18:42.040 --> 0:18:44.919
<v Speaker 1>dealing with issues of race in a way that outside

0:18:44.920 --> 0:18:48.919
<v Speaker 1>of the judiciary have really engulfed the nation. There's a

0:18:49.080 --> 0:18:53.520
<v Speaker 1>risk of the court system becoming even more out of

0:18:53.600 --> 0:18:57.920
<v Speaker 1>touch with the realities of our time and the demands

0:18:57.960 --> 0:19:01.320
<v Speaker 1>of the national legional reckoning that we're basing. Uh. And

0:19:01.440 --> 0:19:04.320
<v Speaker 1>so I really hope the Court does not take this

0:19:04.440 --> 0:19:07.479
<v Speaker 1>case for all the reasons we discussed, and I really

0:19:07.680 --> 0:19:11.880
<v Speaker 1>would urge higher education leaders and the lawyers counseling them

0:19:12.280 --> 0:19:15.719
<v Speaker 1>to recognize that business an area where law will be

0:19:15.800 --> 0:19:19.280
<v Speaker 1>made in the day to day decision of higher education

0:19:19.320 --> 0:19:22.720
<v Speaker 1>institutions as much as posits the Frame Court. Thanks for

0:19:22.760 --> 0:19:26.040
<v Speaker 1>being on the show, Susan. That's Susan Sturm, a professor

0:19:26.040 --> 0:19:28.880
<v Speaker 1>at Columbia Law School. And that's it for this edition

0:19:28.880 --> 0:19:31.639
<v Speaker 1>of the Bloomberg Law Show. Remember you can always at

0:19:31.640 --> 0:19:34.399
<v Speaker 1>the latest legal news on our Bloomberg Law Podcast. You

0:19:34.440 --> 0:19:38.199
<v Speaker 1>can find them on Apple Podcasts, Spotify, and at www

0:19:38.480 --> 0:19:42.440
<v Speaker 1>dot bloomberg dot com, slash podcast, slash Law. I'm jud

0:19:42.560 --> 0:19:44.359
<v Speaker 1>Brasso and you're listening to Bloomberg