1 00:00:03,040 --> 00:00:06,000 Speaker 1: Welcome to a special holiday edition of Bloomberg Law. I'm 2 00:00:06,080 --> 00:00:09,920 Speaker 1: June Grosso. Tomorrow, the Supreme Court returns to the bench. 3 00:00:10,280 --> 00:00:13,080 Speaker 1: The Justices will hear nine oral arguments in the last 4 00:00:13,080 --> 00:00:15,720 Speaker 1: two weeks of February. In the course of the next hour, 5 00:00:15,800 --> 00:00:17,119 Speaker 1: we're going to take a look at some of the 6 00:00:17,120 --> 00:00:20,560 Speaker 1: most important cases the Justices will hear this month, as 7 00:00:20,560 --> 00:00:22,680 Speaker 1: well as some of the other big cases pending at 8 00:00:22,680 --> 00:00:26,040 Speaker 1: the Court. But first we'll start with DHAKA, the Deferred 9 00:00:26,079 --> 00:00:30,200 Speaker 1: Action for Childhood Arrivals and Obama era program, which blocks 10 00:00:30,240 --> 00:00:33,519 Speaker 1: the deportation of undocumented immigrants who were brought to the 11 00:00:33,600 --> 00:00:38,040 Speaker 1: US as children. Last year, President Trump ended the program, 12 00:00:38,080 --> 00:00:41,040 Speaker 1: a move that was defended by White House Press Secretary 13 00:00:41,080 --> 00:00:44,760 Speaker 1: Sarah Sanders at the time. President's doctor decision brings us 14 00:00:44,800 --> 00:00:49,000 Speaker 1: closer to a safer, fairer, and legal immigration system. Now 15 00:00:49,040 --> 00:00:53,199 Speaker 1: that he has into this unsustainable and unconstitutional program imposed 16 00:00:53,200 --> 00:00:56,160 Speaker 1: by the previous administration, the President is calling on the 17 00:00:56,160 --> 00:00:58,880 Speaker 1: men and women in Congress to fulfill their duty to 18 00:00:58,920 --> 00:01:02,640 Speaker 1: the American people by truly reforming our immigration system for 19 00:01:02,680 --> 00:01:06,000 Speaker 1: the good of all people. But after a California federal 20 00:01:06,080 --> 00:01:09,520 Speaker 1: judge dishoned to temporarily banned President Trump from ending the 21 00:01:09,560 --> 00:01:12,600 Speaker 1: doctor program. The fate of the so called Dreamers is 22 00:01:12,640 --> 00:01:15,039 Speaker 1: now in the hands of the Supreme Court, from where 23 00:01:15,080 --> 00:01:18,000 Speaker 1: I'm joined this hour by Greg Store Bloomberg, new Supreme 24 00:01:18,040 --> 00:01:21,720 Speaker 1: Court reporter, and Paul Smith, a professor at Georgetown Law School. 25 00:01:22,200 --> 00:01:25,000 Speaker 1: So Greg tell us what the Trump administration is asking 26 00:01:25,000 --> 00:01:28,360 Speaker 1: the Supreme Court to do well in the DOCCA case. 27 00:01:28,400 --> 00:01:31,399 Speaker 1: They're asking the Supreme Court to do something highly unusual, 28 00:01:31,480 --> 00:01:35,400 Speaker 1: which is to directly review that ruling from a federal 29 00:01:35,440 --> 00:01:38,200 Speaker 1: district judge and to say that the President has the 30 00:01:38,280 --> 00:01:42,320 Speaker 1: authority to rescind the doctor program. Now, one thing that's 31 00:01:42,360 --> 00:01:46,199 Speaker 1: interesting about this is that oftentimes when a federal judge 32 00:01:46,200 --> 00:01:48,919 Speaker 1: will will issue a nationwide injunction the way this district 33 00:01:48,960 --> 00:01:53,280 Speaker 1: judge did, an administration will immediately go to court for 34 00:01:53,320 --> 00:01:56,520 Speaker 1: a stay of that ruling. The Trump administration hasn't done that, 35 00:01:56,600 --> 00:01:59,400 Speaker 1: And what that means is they are actually complying with 36 00:01:59,440 --> 00:02:03,960 Speaker 1: this rule ling and they are accepting renewal applications from 37 00:02:04,600 --> 00:02:08,239 Speaker 1: uh people whose DOCCA status was about to expire and 38 00:02:08,560 --> 00:02:12,040 Speaker 1: who could be subject to deportation. But they're asking the 39 00:02:12,080 --> 00:02:15,680 Speaker 1: Supreme Court to jump in and give a definitive ruling 40 00:02:15,680 --> 00:02:18,720 Speaker 1: by the end of June on whether the President ultimately 41 00:02:18,840 --> 00:02:23,000 Speaker 1: can resend this program. Paul, any idea why they decided 42 00:02:23,160 --> 00:02:27,440 Speaker 1: to skip the appellate court or to ask for hold 43 00:02:27,639 --> 00:02:30,760 Speaker 1: on the court's order. Well, the reason they didn't ask 44 00:02:30,800 --> 00:02:32,480 Speaker 1: for a hole on the courts order, I think is 45 00:02:32,520 --> 00:02:35,200 Speaker 1: they don't really want doctor to disappear. They want to 46 00:02:35,200 --> 00:02:37,560 Speaker 1: have a legislative fixed in the meantime, they probably don't 47 00:02:37,560 --> 00:02:43,320 Speaker 1: want a lot of headlines of individual sympathetic people being deported. Uh. 48 00:02:43,360 --> 00:02:46,880 Speaker 1: And why they jumped the queue and went past the 49 00:02:46,880 --> 00:02:48,840 Speaker 1: Court of Appeals up to the Supreme Court is an 50 00:02:48,880 --> 00:02:52,160 Speaker 1: interesting question. Uh, it is a very unusual procedure, procedural 51 00:02:52,200 --> 00:02:56,079 Speaker 1: situation for them to do that. I'm not sure. And 52 00:02:56,080 --> 00:02:59,240 Speaker 1: and how do you think the court will react? Well, 53 00:02:59,560 --> 00:03:02,440 Speaker 1: I guess my sense is that they are likely to 54 00:03:02,480 --> 00:03:06,560 Speaker 1: be fairly uh sympathetic to the to the administration and 55 00:03:06,639 --> 00:03:09,160 Speaker 1: think this is a Supreme Court issue. So if I had, 56 00:03:09,240 --> 00:03:10,600 Speaker 1: if I was a betting man, I would say that 57 00:03:10,720 --> 00:03:13,760 Speaker 1: court will probably take the case. And Greg, what's you're 58 00:03:13,800 --> 00:03:15,760 Speaker 1: feeling on it? Or I might take that bet from 59 00:03:15,800 --> 00:03:20,160 Speaker 1: Paul only because it is such an unusual well not 60 00:03:20,200 --> 00:03:21,919 Speaker 1: only because I mean First of all, as as we 61 00:03:22,040 --> 00:03:25,040 Speaker 1: both said, this is really a highly unusual procedure, and 62 00:03:25,520 --> 00:03:28,079 Speaker 1: the times of Supreme Court has done it skipped the 63 00:03:28,120 --> 00:03:31,560 Speaker 1: federal Appeals Court have have either tended to be either 64 00:03:31,919 --> 00:03:35,240 Speaker 1: things where the urgency and importance was was very obvious, 65 00:03:35,280 --> 00:03:38,600 Speaker 1: like the Nixon take tapes case or the steel seizure 66 00:03:38,640 --> 00:03:41,400 Speaker 1: case with with President Harry Truman, or where they were 67 00:03:41,480 --> 00:03:44,720 Speaker 1: already committed to deciding the issue and they just needed 68 00:03:44,760 --> 00:03:48,720 Speaker 1: a particular case to to come up. Um. This case 69 00:03:48,800 --> 00:03:52,600 Speaker 1: does not seem to fit either of those parameters. The government, Uh, 70 00:03:53,360 --> 00:03:56,520 Speaker 1: the court is very deferential to the Solicitor General as 71 00:03:56,520 --> 00:03:58,680 Speaker 1: a matter of course, and that may make the difference. 72 00:03:58,680 --> 00:04:00,640 Speaker 1: And and Paul could end up being right. I wouldn't 73 00:04:00,640 --> 00:04:03,600 Speaker 1: be stunned either way. But there is very much an 74 00:04:03,680 --> 00:04:07,320 Speaker 1: uphill climb that the administration has to has to uh 75 00:04:07,920 --> 00:04:10,320 Speaker 1: get over to get the Supreme Court to agree to 76 00:04:10,320 --> 00:04:12,600 Speaker 1: do this very unusual thing. And keep in mind also 77 00:04:12,760 --> 00:04:15,040 Speaker 1: we're talking about a very compressed time frame. I mean, 78 00:04:15,080 --> 00:04:17,599 Speaker 1: it's later than usual in the term for the Court 79 00:04:17,640 --> 00:04:19,800 Speaker 1: to agree to take up any case, much less one 80 00:04:19,839 --> 00:04:22,920 Speaker 1: where they skip the Appeals court. Paul, the court has 81 00:04:23,000 --> 00:04:28,200 Speaker 1: so many controversial issues that affect society this year? Are 82 00:04:28,240 --> 00:04:31,000 Speaker 1: they ready to take on another one? Oh? Well, they 83 00:04:31,080 --> 00:04:33,200 Speaker 1: I think they like to uh to take on the 84 00:04:33,200 --> 00:04:35,840 Speaker 1: issues that affects society. That's kind of the role they've adopted, 85 00:04:35,880 --> 00:04:38,960 Speaker 1: and the Court has not been uh timid about doing 86 00:04:38,960 --> 00:04:41,039 Speaker 1: that in all kinds of areas. As you say, the 87 00:04:41,080 --> 00:04:44,200 Speaker 1: cases keep piling up there, so I'm not it wouldn't 88 00:04:44,200 --> 00:04:45,960 Speaker 1: be surprised to see them want to take on one more. 89 00:04:46,000 --> 00:04:49,560 Speaker 1: But Gregg maybe right that given that they haven't sought 90 00:04:49,600 --> 00:04:52,560 Speaker 1: a stay and they that it's a little harder to 91 00:04:52,600 --> 00:04:54,599 Speaker 1: make the case that it's an emergency that the Court 92 00:04:54,680 --> 00:04:57,480 Speaker 1: should make room for. Greg if you had to pick 93 00:04:57,600 --> 00:05:01,080 Speaker 1: one case this term, what would you say is the 94 00:05:01,160 --> 00:05:04,839 Speaker 1: most high profile case. Well, there's the most high high 95 00:05:04,839 --> 00:05:06,719 Speaker 1: profile and there's the most important, and they may not 96 00:05:06,800 --> 00:05:10,680 Speaker 1: be the same thing. High profile may well be the 97 00:05:11,160 --> 00:05:14,240 Speaker 1: masterpiece cake shop cake that the Supreme Court has already 98 00:05:14,279 --> 00:05:17,560 Speaker 1: heard of arguments in and could decide any time. It 99 00:05:17,600 --> 00:05:19,919 Speaker 1: probably will be a little later in the term, but 100 00:05:20,000 --> 00:05:22,719 Speaker 1: in theory they could decide anytime. That's the one where 101 00:05:22,760 --> 00:05:28,400 Speaker 1: you have the baker in Colorado who uh makes wedding 102 00:05:28,440 --> 00:05:30,839 Speaker 1: cakes but doesn't want to make him for same sex weddings. 103 00:05:30,880 --> 00:05:35,080 Speaker 1: He turned a couple down. The Colorado Civil Rights Commission 104 00:05:35,120 --> 00:05:37,760 Speaker 1: said he was in violation of a law there that 105 00:05:38,360 --> 00:05:42,000 Speaker 1: bands discrimination on the basis of sexual orientation at at 106 00:05:42,120 --> 00:05:46,359 Speaker 1: places that do business with the public. Um, the Court 107 00:05:46,400 --> 00:05:49,560 Speaker 1: heard arguments in it in the fall, and it was 108 00:05:49,600 --> 00:05:51,960 Speaker 1: really one of those where and Paul may may have 109 00:05:52,000 --> 00:05:54,880 Speaker 1: a different view. I'm not comfortable predicting how that case 110 00:05:54,960 --> 00:05:57,000 Speaker 1: is going to come out. It seemed very closely divided, 111 00:05:57,040 --> 00:06:00,279 Speaker 1: in particular Justice Anne Anthony Kennedy, who you would expect 112 00:06:00,320 --> 00:06:04,760 Speaker 1: to be in the middle of of these issues. Um uh, 113 00:06:04,800 --> 00:06:07,679 Speaker 1: you know, was asking questions of both sides. On one side, 114 00:06:07,720 --> 00:06:10,359 Speaker 1: you have a free speech argument by the Baker, and 115 00:06:10,360 --> 00:06:12,680 Speaker 1: that's the kind of thing that Justice Kennedy is often 116 00:06:12,760 --> 00:06:15,800 Speaker 1: very sympathetic towards. On the other side, you have anti 117 00:06:15,880 --> 00:06:18,760 Speaker 1: discrimination and gay rights and he, of course, you know, 118 00:06:18,760 --> 00:06:21,039 Speaker 1: as much as anybody, more than anybody, has been the 119 00:06:21,120 --> 00:06:23,600 Speaker 1: champion of gay rights on the Supreme Court wrote the 120 00:06:23,600 --> 00:06:27,479 Speaker 1: gay marriage ruling a couple of years ago. So, um, 121 00:06:27,720 --> 00:06:29,599 Speaker 1: you know, that's one of these cases that has garnered 122 00:06:29,640 --> 00:06:32,200 Speaker 1: a lot of attention, and from my standpoint, could come 123 00:06:32,200 --> 00:06:34,400 Speaker 1: out of either way. Well, Paul, I'll be asking you 124 00:06:34,440 --> 00:06:37,680 Speaker 1: that question as we go on in the program. That's 125 00:06:37,720 --> 00:06:41,600 Speaker 1: Paul Smith's professor at Georgetown Law School, and Greg Store Bloomberg, 126 00:06:41,640 --> 00:06:43,960 Speaker 1: News Supreme Court reporter. Coming up. We're going to look 127 00:06:44,000 --> 00:06:46,320 Speaker 1: ahead to this month's arguments, beginning with a case that 128 00:06:46,360 --> 00:06:49,680 Speaker 1: will determine the future of mandatory union fees for public 129 00:06:49,720 --> 00:07:00,480 Speaker 1: sector workers. This is Bloomberg, This is Bloomberg the Law. 130 00:07:00,560 --> 00:07:04,039 Speaker 1: I'm June Grasso. Last year, the Supreme Court justice is 131 00:07:04,080 --> 00:07:06,720 Speaker 1: deadlocked four to four on a case that could decide 132 00:07:06,760 --> 00:07:11,120 Speaker 1: whether five million government workers could refuse to pay union fees. Now, 133 00:07:11,120 --> 00:07:13,800 Speaker 1: with the addition of Neil Gorzich, the Court has decided 134 00:07:13,840 --> 00:07:17,240 Speaker 1: to hear the case again. It's now facing new scrutiny 135 00:07:17,320 --> 00:07:20,160 Speaker 1: from the White House once again. I'm joined by Greg Store, 136 00:07:20,200 --> 00:07:23,400 Speaker 1: Bloomberg New Supreme Court reporter, and Paul Smith, a professor 137 00:07:23,440 --> 00:07:27,360 Speaker 1: at Georgetown Law School. Greg, what don't you describe the case? 138 00:07:28,560 --> 00:07:30,720 Speaker 1: So the case is when the Supreme Court has actually 139 00:07:30,760 --> 00:07:35,160 Speaker 1: heard before. The central question is whether a public sector 140 00:07:35,160 --> 00:07:38,880 Speaker 1: worker can be required to pay what some people call 141 00:07:38,960 --> 00:07:41,920 Speaker 1: agency fees, some people call fair share fees, which are 142 00:07:41,960 --> 00:07:46,520 Speaker 1: basically the cost of representation by the union. Uh for 143 00:07:46,760 --> 00:07:50,240 Speaker 1: purposes like collective bargaining. Uh. Not for political purposes. The 144 00:07:50,240 --> 00:07:53,120 Speaker 1: Supreme Court has already said workers don't have to pay 145 00:07:53,160 --> 00:07:58,560 Speaker 1: for for um uh truly political work by the union. Uh. 146 00:07:58,680 --> 00:08:03,559 Speaker 1: There's a worker in Illinois, public sector worker who says, 147 00:08:03,960 --> 00:08:05,960 Speaker 1: I don't agree with my union. I don't want to 148 00:08:06,000 --> 00:08:09,480 Speaker 1: have to pay any money here. Um. And the reason 149 00:08:09,760 --> 00:08:12,400 Speaker 1: I say the Supreme Court has heard has heard it before. 150 00:08:12,960 --> 00:08:16,440 Speaker 1: Back before Justice Scalia passed away, the Court heard arguments 151 00:08:16,440 --> 00:08:18,440 Speaker 1: and seemed on the verge of saying that the public 152 00:08:18,520 --> 00:08:21,840 Speaker 1: sector workers do have that first Amendment right. Then Justice 153 00:08:21,840 --> 00:08:25,120 Speaker 1: Scalia died and the Court was not able to resolve 154 00:08:25,160 --> 00:08:28,440 Speaker 1: that case. Now the issue is back at the Supreme Court. Uh. 155 00:08:28,520 --> 00:08:32,280 Speaker 1: And by all indications, the person who will decide decide 156 00:08:32,280 --> 00:08:35,680 Speaker 1: the answer is the newest Justice Neil Gorst. Let's talk 157 00:08:35,720 --> 00:08:38,960 Speaker 1: about the arguments here, Paul, what is the argument? The 158 00:08:38,960 --> 00:08:43,720 Speaker 1: Trump administration called on the Supreme Court to let millions 159 00:08:43,720 --> 00:08:47,520 Speaker 1: of public sector workers refused to pay union fees, which 160 00:08:47,679 --> 00:08:52,480 Speaker 1: shifted the position of the federal government during the Obama era. 161 00:08:52,800 --> 00:08:56,920 Speaker 1: So tell us what their argument is. Well, the argument 162 00:08:57,800 --> 00:09:00,400 Speaker 1: it is an interesting flip of position by the listener. 163 00:09:00,400 --> 00:09:03,760 Speaker 1: General in this case compared to the past. The argument 164 00:09:03,960 --> 00:09:07,760 Speaker 1: is that requiring a payment of fees to the union 165 00:09:08,280 --> 00:09:12,240 Speaker 1: is uh to require somebody to be complicit in an 166 00:09:12,280 --> 00:09:16,400 Speaker 1: institution they don't like. UH that they that they should 167 00:09:16,400 --> 00:09:20,280 Speaker 1: have a First Amendment right of immunity from having to 168 00:09:20,400 --> 00:09:23,080 Speaker 1: do that. Uh. And you know, this is a principle 169 00:09:23,160 --> 00:09:26,679 Speaker 1: that exists in various places in the law. It is 170 00:09:26,720 --> 00:09:30,000 Speaker 1: an unusual application of it here because these are people 171 00:09:30,000 --> 00:09:32,840 Speaker 1: who voluntarily take a job as a public sector worker. 172 00:09:32,880 --> 00:09:35,640 Speaker 1: And if the employer is saying, I really would like 173 00:09:35,760 --> 00:09:39,839 Speaker 1: to have a single representative of the workers in this 174 00:09:40,040 --> 00:09:43,720 Speaker 1: in this bargaining unit to negotiate with and to handle grievances, 175 00:09:43,840 --> 00:09:45,880 Speaker 1: and I'd like everybody who gets the benefit of that 176 00:09:45,960 --> 00:09:48,760 Speaker 1: to have to pay the freight that the ghost to 177 00:09:49,120 --> 00:09:52,920 Speaker 1: support that institution, that union. And so uh, there's a 178 00:09:53,080 --> 00:09:54,520 Speaker 1: there are a lot of pretty good arguments that there's 179 00:09:54,520 --> 00:09:56,959 Speaker 1: not not a very serious First Amendment claim. On the 180 00:09:57,000 --> 00:10:00,240 Speaker 1: other hand, it's pretty clear there are five justices who 181 00:10:00,360 --> 00:10:01,880 Speaker 1: I think it is that we're going to say it is, 182 00:10:01,920 --> 00:10:05,440 Speaker 1: and that's going to be a very important loss by 183 00:10:05,559 --> 00:10:09,720 Speaker 1: the public sector unions. Let's talk about the union's position 184 00:10:09,760 --> 00:10:13,800 Speaker 1: in this Greg. They're they're very very adamant about this 185 00:10:13,880 --> 00:10:18,160 Speaker 1: case because if they lose those union fees, they still 186 00:10:18,200 --> 00:10:21,440 Speaker 1: have to go on and they're still negotiating for different 187 00:10:21,440 --> 00:10:25,480 Speaker 1: things that people who aren't paying the fees are getting 188 00:10:25,480 --> 00:10:28,680 Speaker 1: the benefit of. Right. And one argument you hear them 189 00:10:28,679 --> 00:10:33,120 Speaker 1: make is is the free rider argument. You know, they say, Um, 190 00:10:33,160 --> 00:10:36,240 Speaker 1: at least as it's set up under state law. Look, 191 00:10:36,280 --> 00:10:39,040 Speaker 1: we the union is going to represent everybody, and it's 192 00:10:39,040 --> 00:10:41,679 Speaker 1: going to do things that are going to benefit even 193 00:10:41,720 --> 00:10:45,040 Speaker 1: workers who don't want to pay pay the fees. And 194 00:10:45,280 --> 00:10:49,640 Speaker 1: if a worker can take those benefits and not pay 195 00:10:49,720 --> 00:10:52,440 Speaker 1: the fees, then he or she becomes a free rider. 196 00:10:52,840 --> 00:10:55,319 Speaker 1: And um, more and more people may want to do that, 197 00:10:55,840 --> 00:10:58,320 Speaker 1: get the benefits without paying the cost, and that would 198 00:10:58,400 --> 00:11:00,640 Speaker 1: undermine the ability of the union to do its job 199 00:11:00,840 --> 00:11:03,600 Speaker 1: of representing people. The other big argument the union makes, 200 00:11:03,600 --> 00:11:07,160 Speaker 1: and actually probably the first one, is that, um, there's 201 00:11:07,200 --> 00:11:10,480 Speaker 1: a there's a pre existing Supreme Court decision uh from 202 00:11:10,840 --> 00:11:13,880 Speaker 1: nineteen seventy seven called a BOOD that says unions can 203 00:11:14,440 --> 00:11:18,640 Speaker 1: require workers to pay these fees. And uh, you know, 204 00:11:18,679 --> 00:11:21,760 Speaker 1: so they are arguing story decisis the notion that unless 205 00:11:21,760 --> 00:11:24,040 Speaker 1: there's a really good reason, the court should not overturn 206 00:11:24,080 --> 00:11:28,120 Speaker 1: its past decisions. So, Paul, how do the justices who 207 00:11:28,520 --> 00:11:32,480 Speaker 1: want to rule against this rule? You know that union 208 00:11:32,520 --> 00:11:34,080 Speaker 1: fees do not have to be paid. How do they 209 00:11:34,080 --> 00:11:38,760 Speaker 1: get around the issue of a boot. Well, they've signaled 210 00:11:38,800 --> 00:11:41,720 Speaker 1: in several cases, uh in the past that they think 211 00:11:41,720 --> 00:11:45,360 Speaker 1: a boot is a weak precedent, that it's wrongly decided. Uh. 212 00:11:45,360 --> 00:11:47,280 Speaker 1: And I think they're going to flatly overrule it in 213 00:11:47,320 --> 00:11:51,439 Speaker 1: this case. Uh. And the argument is that there's no 214 00:11:51,800 --> 00:11:55,200 Speaker 1: real separation between the political activities of the union and 215 00:11:55,240 --> 00:11:57,600 Speaker 1: the sort of union activities of the union in the 216 00:11:57,600 --> 00:12:00,959 Speaker 1: public sector, because when the union is negotiating for higher 217 00:12:01,000 --> 00:12:04,160 Speaker 1: wages or higher benefits, that is a form of advocacy 218 00:12:04,240 --> 00:12:06,920 Speaker 1: to the government, who, after all, the government is the employer. 219 00:12:07,520 --> 00:12:10,560 Speaker 1: And so when you're you're requiring people to pay the 220 00:12:10,640 --> 00:12:14,200 Speaker 1: cost of that kind of advocacy, you're basically requiring them 221 00:12:14,200 --> 00:12:17,640 Speaker 1: to advocate issues that they may disagree with. They may 222 00:12:17,679 --> 00:12:20,440 Speaker 1: think that the government shouldn't be spending more money on 223 00:12:20,520 --> 00:12:24,400 Speaker 1: wages and benefits for its workers, or something of that kind. 224 00:12:24,600 --> 00:12:29,400 Speaker 1: That there's no real distinction between the two, the political 225 00:12:29,400 --> 00:12:33,320 Speaker 1: activities and more mundane run of the mill union activities 226 00:12:33,800 --> 00:12:36,960 Speaker 1: greg The court split four to four when this was 227 00:12:37,400 --> 00:12:41,960 Speaker 1: involving the California teachers, so it was a long part 228 00:12:42,000 --> 00:12:44,959 Speaker 1: as in lines. Is there any doubt in anyone's mind 229 00:12:45,080 --> 00:12:49,640 Speaker 1: that Neil Gorsch will will side with deconservatives on this, Well, 230 00:12:49,720 --> 00:12:52,880 Speaker 1: let me just clarify. We we presume it was along 231 00:12:53,720 --> 00:12:56,040 Speaker 1: ideological lines on the court there, I mean, just based 232 00:12:56,080 --> 00:12:58,520 Speaker 1: on the argument what justices have said in pass cases. 233 00:12:58,640 --> 00:13:01,160 Speaker 1: But when they issued that four to four decision, it 234 00:13:01,160 --> 00:13:03,480 Speaker 1: didn't tell us who who who was on what side 235 00:13:03,480 --> 00:13:07,400 Speaker 1: of the case, but directly answer your question, Um, you know, 236 00:13:07,480 --> 00:13:10,160 Speaker 1: there's every I mean, this particular issue has not come 237 00:13:10,320 --> 00:13:13,960 Speaker 1: come before Neil Gorcer's, but I think everybody involved in 238 00:13:13,960 --> 00:13:17,520 Speaker 1: this issue would be very very surprised if uh he 239 00:13:17,559 --> 00:13:20,640 Speaker 1: did anything other than uh do what what Paul is 240 00:13:20,640 --> 00:13:23,400 Speaker 1: suggesting he will do and and and vote to overrule 241 00:13:23,600 --> 00:13:26,040 Speaker 1: a boot and to say that public sector workers do 242 00:13:26,200 --> 00:13:28,199 Speaker 1: have a first Amendment right. That's just sort of based 243 00:13:28,200 --> 00:13:30,800 Speaker 1: on everything we know about him as as a jurist, 244 00:13:30,800 --> 00:13:33,920 Speaker 1: from his time on the Tent Circuit and and his 245 00:13:34,040 --> 00:13:36,559 Speaker 1: limited time on the Supreme Court, it's it seems very 246 00:13:36,640 --> 00:13:40,480 Speaker 1: very likely he will vote that way. And indeed, Uh, 247 00:13:40,520 --> 00:13:43,800 Speaker 1: the the about decision will be overturned. Paul, A very 248 00:13:43,920 --> 00:13:47,920 Speaker 1: broad question. But what will this do to if if 249 00:13:47,960 --> 00:13:50,680 Speaker 1: the court rules as both of you think they will, 250 00:13:51,160 --> 00:13:53,959 Speaker 1: what would this do do unions in this country? How 251 00:13:53,960 --> 00:13:56,360 Speaker 1: big a blow would be? Well, there's a lot of 252 00:13:56,760 --> 00:13:59,240 Speaker 1: a lot of uncertainty how big a blow it would be. 253 00:13:59,240 --> 00:14:01,080 Speaker 1: Some would say, look, there's a lot of states already 254 00:14:01,080 --> 00:14:03,079 Speaker 1: where they're not allowed to charge this fee, and the 255 00:14:03,160 --> 00:14:06,120 Speaker 1: unions are still operating. Uh, and they'll just go on 256 00:14:06,760 --> 00:14:09,160 Speaker 1: the way that that way in the states where the 257 00:14:09,160 --> 00:14:11,720 Speaker 1: fee has been paid in the past. There's also a 258 00:14:11,760 --> 00:14:15,520 Speaker 1: separate question whether that might ever extend into the private sector. 259 00:14:15,600 --> 00:14:18,440 Speaker 1: That the arguments are somewhat complicated about whether or not 260 00:14:18,520 --> 00:14:21,320 Speaker 1: the constitutional argument could be made by an employee in 261 00:14:21,320 --> 00:14:24,080 Speaker 1: the private sector. Uh. And so we'll have to wait 262 00:14:24,120 --> 00:14:27,280 Speaker 1: and see what the consequences are. There may also be 263 00:14:27,400 --> 00:14:31,360 Speaker 1: a workaround that that the that the states who want 264 00:14:31,400 --> 00:14:33,440 Speaker 1: to support the unions can do, which is to say, 265 00:14:33,480 --> 00:14:37,040 Speaker 1: basically subsidized the unions directly rather than through the wages, 266 00:14:37,200 --> 00:14:39,760 Speaker 1: taking something out of the wages of the workers. That's 267 00:14:39,800 --> 00:14:43,720 Speaker 1: Paul Smith's professor at Georgetown Law School, and Greg Store Bloomberg, 268 00:14:43,720 --> 00:14:46,720 Speaker 1: New Supreme Court Reporter. Coming up more on this month 269 00:14:46,840 --> 00:14:49,000 Speaker 1: Supreme Court arguments with a look at a case that 270 00:14:49,120 --> 00:14:53,080 Speaker 1: could forever change the credit card business. This is Bloomberg 271 00:14:57,600 --> 00:15:01,920 Speaker 1: Broadcasting live to New York, bloom to Washington, d C, 272 00:15:02,120 --> 00:15:07,160 Speaker 1: Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg 273 00:15:07,240 --> 00:15:10,760 Speaker 1: nine sixty to the country, Sirius XM Gental one and 274 00:15:10,840 --> 00:15:13,920 Speaker 1: around the blow the Bloomberg Radio Plus app and Bloomberg 275 00:15:13,920 --> 00:15:18,120 Speaker 1: dot Com. This is Bloomberg Law. I'm tune Grosso. Later 276 00:15:18,200 --> 00:15:20,560 Speaker 1: this month, the Supreme Court will hear arguments in a 277 00:15:20,640 --> 00:15:23,840 Speaker 1: case that could shake up the credit card business. American 278 00:15:23,920 --> 00:15:27,560 Speaker 1: Express was accused of getting rid of competition by prohibiting 279 00:15:27,600 --> 00:15:31,480 Speaker 1: merchants from steering customers to cards with lower fees. For 280 00:15:31,600 --> 00:15:35,360 Speaker 1: more on this potentially momentous case, I'm joined once again 281 00:15:35,360 --> 00:15:38,720 Speaker 1: by Greg Store, Bloomberg, New Supreme Court reporter, and Paul Smith, 282 00:15:39,040 --> 00:15:42,280 Speaker 1: a professor at Georgetown Law School. And once again, Greg, 283 00:15:42,320 --> 00:15:45,720 Speaker 1: I'll ask you to give me the facts of the case. Well, 284 00:15:46,000 --> 00:15:49,680 Speaker 1: as you said, this is about a policy that American 285 00:15:49,720 --> 00:15:56,120 Speaker 1: Express has that UM says that merchants cannot explicitly give 286 00:15:56,840 --> 00:16:01,640 Speaker 1: um customers and incentive to to uh use a card 287 00:16:01,720 --> 00:16:04,040 Speaker 1: that that has a lower fee. So, in other words, 288 00:16:04,680 --> 00:16:08,520 Speaker 1: a merchant cannot, under this American Express policy say if 289 00:16:08,560 --> 00:16:12,480 Speaker 1: you use this this card that charges us less, we 290 00:16:12,560 --> 00:16:15,000 Speaker 1: will give you, you know, a two percent discount on 291 00:16:15,000 --> 00:16:17,440 Speaker 1: on your sales price. A group of states and the 292 00:16:17,440 --> 00:16:21,360 Speaker 1: Obama administration sued American Express, and originally Visa and MasterCard 293 00:16:21,400 --> 00:16:25,920 Speaker 1: were sued for the for similar UH policies. Visa master 294 00:16:26,000 --> 00:16:28,800 Speaker 1: Cards settled in. The core issue for the Supreme Court 295 00:16:28,960 --> 00:16:31,880 Speaker 1: is whether you look at this this activity that this 296 00:16:31,880 --> 00:16:35,720 Speaker 1: this policy just by looking at, um, what merchants have 297 00:16:35,800 --> 00:16:38,880 Speaker 1: to pay, or as American Express argues, do you also 298 00:16:38,960 --> 00:16:44,000 Speaker 1: look at the end result on consumers. American Express says, 299 00:16:44,040 --> 00:16:49,200 Speaker 1: what we're actually doing is um, uh, we're taking some 300 00:16:49,280 --> 00:16:52,920 Speaker 1: of these higher fees that we get from merchants and 301 00:16:53,240 --> 00:16:57,080 Speaker 1: we are using them to give customers other incentives. Our 302 00:16:57,120 --> 00:17:00,600 Speaker 1: customers other incentives, and uh So it's really just a 303 00:17:00,680 --> 00:17:03,320 Speaker 1: question of how you analyze this sort of what's called 304 00:17:03,320 --> 00:17:07,480 Speaker 1: a dual market in an anitrust context. Paul, what do 305 00:17:07,560 --> 00:17:09,520 Speaker 1: the merchants want to be able to do? Do they 306 00:17:09,520 --> 00:17:12,359 Speaker 1: want to be able to say, oh, we'll give you 307 00:17:12,600 --> 00:17:15,520 Speaker 1: this much less if you use a Discover card instead 308 00:17:15,560 --> 00:17:18,440 Speaker 1: of American Express. I mean, how would they actually give 309 00:17:18,520 --> 00:17:22,399 Speaker 1: this benefit that they want to to the customers. Well, 310 00:17:22,440 --> 00:17:24,439 Speaker 1: there's a variety of ways in which they could steer 311 00:17:24,480 --> 00:17:28,920 Speaker 1: people towards using the lower cost card, by making making 312 00:17:28,960 --> 00:17:32,119 Speaker 1: the price lower, or by giving a special checkout place 313 00:17:32,200 --> 00:17:34,359 Speaker 1: for those who use certain cards and not other cards 314 00:17:34,400 --> 00:17:37,200 Speaker 1: make it more efficient for people to pay. Uh. They're 315 00:17:37,280 --> 00:17:39,560 Speaker 1: they're very subtle or very direct ways in which they 316 00:17:39,600 --> 00:17:42,800 Speaker 1: could subsidize people and push them in the direction of 317 00:17:42,880 --> 00:17:44,920 Speaker 1: using something where the where the fee is lower for 318 00:17:44,960 --> 00:17:47,120 Speaker 1: the merchant. So what's interesting here is that the court 319 00:17:47,160 --> 00:17:49,600 Speaker 1: is interested in a case that complicated because it's under 320 00:17:49,640 --> 00:17:52,280 Speaker 1: the rule of reason. There's a million of factors. It's 321 00:17:52,280 --> 00:17:54,359 Speaker 1: not the sort of thing they usually like to wait into. 322 00:17:55,160 --> 00:17:57,560 Speaker 1: The argument is, as Gregg said, the American Express is 323 00:17:57,600 --> 00:18:00,600 Speaker 1: making is we may charge the merchant a little bit more, 324 00:18:00,600 --> 00:18:02,400 Speaker 1: but we have a different business model. We have a 325 00:18:02,440 --> 00:18:05,520 Speaker 1: premium card that gives all sorts of benefits to consumers. 326 00:18:05,960 --> 00:18:07,359 Speaker 1: And you need to look at what they call the 327 00:18:07,440 --> 00:18:11,679 Speaker 1: two sided price, the prices it relates to consumers and 328 00:18:11,720 --> 00:18:15,879 Speaker 1: the prices and relates to merchants in our overall package 329 00:18:15,880 --> 00:18:18,159 Speaker 1: of costs and benefits that we give to the overall 330 00:18:18,200 --> 00:18:21,680 Speaker 1: marketplace is not a restraint of trade. It has benefits 331 00:18:21,720 --> 00:18:24,240 Speaker 1: as well as burdens, and you should allow this model 332 00:18:24,280 --> 00:18:26,960 Speaker 1: to continue. June, I just point out that the tech 333 00:18:27,040 --> 00:18:29,880 Speaker 1: industry is watching this case very closely because this sort 334 00:18:29,920 --> 00:18:35,240 Speaker 1: of dual market applies UH in a lot of contexts. 335 00:18:35,280 --> 00:18:39,040 Speaker 1: And you can imagine, for example, UM, you know an 336 00:18:39,080 --> 00:18:42,359 Speaker 1: online merchant who is dealing both with UM UH the 337 00:18:42,600 --> 00:18:45,480 Speaker 1: ultimate maker of the product and the consumers UM that 338 00:18:45,720 --> 00:18:49,440 Speaker 1: there is a lot of concern that the court might 339 00:18:49,480 --> 00:18:53,600 Speaker 1: make it harder to sue UH a lot of technologically 340 00:18:53,600 --> 00:18:57,760 Speaker 1: advanced companies. Now, Paul, what seems unusual is the Justice 341 00:18:57,800 --> 00:19:01,199 Speaker 1: Department also sued American Express, but it didn't join the 342 00:19:01,240 --> 00:19:05,160 Speaker 1: appeal to the Supreme Court. Is there a reason behind that? 343 00:19:05,720 --> 00:19:07,320 Speaker 1: I'm not sure what the reason for that is. They 344 00:19:07,359 --> 00:19:11,000 Speaker 1: filed a brief though on the merits and supporting the appeal, 345 00:19:11,080 --> 00:19:13,560 Speaker 1: so I'm not sure it makes a difference. Greg, do 346 00:19:13,600 --> 00:19:16,560 Speaker 1: you think it makes any difference it? Um, may not 347 00:19:16,640 --> 00:19:18,760 Speaker 1: make any difference in the ultimate disposition of the case. 348 00:19:18,800 --> 00:19:24,000 Speaker 1: It was certainly intriguing it when the the administration did 349 00:19:24,040 --> 00:19:27,280 Speaker 1: not file its own certain petition, one thought, hey, the 350 00:19:27,760 --> 00:19:30,560 Speaker 1: chances of the court taking this case up are less. 351 00:19:30,560 --> 00:19:32,919 Speaker 1: While the court decided to take it up anyway. Uh, 352 00:19:33,000 --> 00:19:35,320 Speaker 1: you know that may have been a function in part 353 00:19:35,480 --> 00:19:40,400 Speaker 1: of uh, when that decision was made by the Trump administration. 354 00:19:40,440 --> 00:19:43,000 Speaker 1: They didn't have a confirmed head of the antitrust Division 355 00:19:43,000 --> 00:19:45,880 Speaker 1: at the Justice Department, they didn't have a confirmed solicitor general. 356 00:19:46,520 --> 00:19:49,680 Speaker 1: And uh, you know, there are a lot of decisions 357 00:19:49,680 --> 00:19:51,000 Speaker 1: that you have to make when you're a new a 358 00:19:51,040 --> 00:19:53,720 Speaker 1: new administration, and it may have been that they weren't 359 00:19:53,800 --> 00:19:59,280 Speaker 1: quite ready to have this sort of issue up before 360 00:19:59,280 --> 00:20:03,160 Speaker 1: them at the Supre Court. I'm entirely speculating at this point. Um, 361 00:20:03,200 --> 00:20:06,600 Speaker 1: but it is not uh certainly not unheard of. In fact, 362 00:20:06,640 --> 00:20:10,040 Speaker 1: it often happens that that an administration and solicitor general 363 00:20:10,080 --> 00:20:12,120 Speaker 1: will say, you know, we think the lower court got 364 00:20:12,119 --> 00:20:14,480 Speaker 1: it wrong, but um, it's not important enough for the 365 00:20:14,480 --> 00:20:16,439 Speaker 1: Supreme Court to take it up. That's sort of the 366 00:20:16,440 --> 00:20:18,199 Speaker 1: stands they took. But now that the Supreme Court has 367 00:20:18,240 --> 00:20:21,320 Speaker 1: taken it up, they are defending that. They are saying 368 00:20:21,320 --> 00:20:23,840 Speaker 1: that the lower court decision should be overturned. I'm speaking 369 00:20:23,840 --> 00:20:27,040 Speaker 1: with Bloomberg Supreme Court reporter Greg Store and Paul Smith, 370 00:20:27,119 --> 00:20:30,360 Speaker 1: a professor at Georgetown Law School. Coming up, we're going 371 00:20:30,359 --> 00:20:32,760 Speaker 1: to check in on some of this term's most notable 372 00:20:32,800 --> 00:20:41,880 Speaker 1: Supreme Court cases. This is Bloomberg. When is the best 373 00:20:41,880 --> 00:20:44,320 Speaker 1: time to talk to your family about staying in touch 374 00:20:44,400 --> 00:20:47,920 Speaker 1: during a disaster amid the chaos? Where is the best time? 375 00:20:47,960 --> 00:20:51,280 Speaker 1: Perhaps today? Go to Ready dot gov slash communicate and 376 00:20:51,320 --> 00:20:54,960 Speaker 1: make your emergency plan today. Don't wait. Communicate Brought to 377 00:20:54,960 --> 00:20:59,920 Speaker 1: you by FEMA and the AD Council. I'm June Grassa. 378 00:21:00,160 --> 00:21:03,359 Speaker 1: You're listening to a special President's Day edition of Bloomberg Law. 379 00:21:03,760 --> 00:21:06,439 Speaker 1: We've been talking about some of the biggest cases facing 380 00:21:06,440 --> 00:21:10,320 Speaker 1: the Supreme Court, which goes back into session tomorrow. One 381 00:21:10,320 --> 00:21:13,400 Speaker 1: of the most important cases facing the nine justices this 382 00:21:13,520 --> 00:21:17,439 Speaker 1: term involves a bakery in Colorado where Jack Phillips, the 383 00:21:17,480 --> 00:21:20,879 Speaker 1: owner of Masterpiece Cake Shop, refused to make a wedding 384 00:21:20,880 --> 00:21:24,000 Speaker 1: cake for Charlie Craig and David Mullins, a gay couple. 385 00:21:24,600 --> 00:21:27,359 Speaker 1: He argued that he's a cake artist and that making 386 00:21:27,400 --> 00:21:31,000 Speaker 1: a cake against his religious beliefs violates his First Amendment 387 00:21:31,119 --> 00:21:34,600 Speaker 1: right as an artist. But David Cole legal counsel for 388 00:21:34,640 --> 00:21:37,080 Speaker 1: the couple and the national legal director of the American 389 00:21:37,200 --> 00:21:41,200 Speaker 1: Civil Liberties Union, says the requirement to serve everyone without 390 00:21:41,280 --> 00:21:46,680 Speaker 1: discrimination over rules personal expression. The fact that somebody objects 391 00:21:46,720 --> 00:21:52,040 Speaker 1: to the message that equal treatment sends doesn't give him 392 00:21:52,200 --> 00:21:56,000 Speaker 1: a First Amendment right to opt out of the basic 393 00:21:56,080 --> 00:22:00,360 Speaker 1: requirement that businesses treat all their customers equal. For more 394 00:22:00,359 --> 00:22:03,239 Speaker 1: on this potentially landmark case, I'm once again joined by 395 00:22:03,280 --> 00:22:06,240 Speaker 1: Greg Store Bloomberg, new Supreme Court reporter, and Paul Smith, 396 00:22:06,320 --> 00:22:09,560 Speaker 1: a professor at Georgetown Law School. Well, we spoke about 397 00:22:09,640 --> 00:22:13,560 Speaker 1: this a little bit earlier, but Paul, what is your 398 00:22:13,640 --> 00:22:16,199 Speaker 1: take on how the Court's going to rule in this 399 00:22:16,320 --> 00:22:18,800 Speaker 1: It's a tough one. Well, it is a hard one 400 00:22:18,840 --> 00:22:20,840 Speaker 1: to predict. I think most people would say it's going 401 00:22:20,880 --> 00:22:24,359 Speaker 1: to come down to Justice Anthony Kennedy. Uh. And in 402 00:22:24,400 --> 00:22:27,280 Speaker 1: the argument, he seemed to be somewhat annoyed with both sides. 403 00:22:27,320 --> 00:22:30,960 Speaker 1: He felt that the the argument that stores should be 404 00:22:31,000 --> 00:22:34,440 Speaker 1: able to discriminate against gay people was offensive. On the 405 00:22:34,440 --> 00:22:36,879 Speaker 1: other hand, he didn't like the way he perceived the 406 00:22:36,880 --> 00:22:41,440 Speaker 1: Colorado Anti Discrimination Commission is having kind of an anti 407 00:22:41,480 --> 00:22:45,320 Speaker 1: religious uh bias, or at least one member of the Commission. 408 00:22:45,320 --> 00:22:47,639 Speaker 1: He quoted something that was said. He didn't like that. 409 00:22:47,680 --> 00:22:50,639 Speaker 1: He I probably wish that he could find a way 410 00:22:50,680 --> 00:22:53,000 Speaker 1: to rule for both sides or against both sides. At 411 00:22:53,000 --> 00:22:56,639 Speaker 1: this point, this is certainly the case that a lot 412 00:22:56,680 --> 00:22:58,520 Speaker 1: of people know about. I think of all the Supreme 413 00:22:58,560 --> 00:23:00,720 Speaker 1: Court cases, it's the one that pople even know the 414 00:23:00,800 --> 00:23:04,280 Speaker 1: name of the big shop. Let's turn to something that 415 00:23:04,720 --> 00:23:09,320 Speaker 1: may be important in the elections, and that's the the 416 00:23:09,480 --> 00:23:13,919 Speaker 1: case of Ohio purging its voter rolls. And we've spoken 417 00:23:13,960 --> 00:23:16,120 Speaker 1: about this a little before, Greg, tell us a little 418 00:23:16,119 --> 00:23:19,000 Speaker 1: about this. Yeah, so this is this is a case 419 00:23:19,320 --> 00:23:22,320 Speaker 1: um that the Court has already heard arguments in UH. 420 00:23:22,359 --> 00:23:26,000 Speaker 1: It has to do with Ohio's system for purging people 421 00:23:26,160 --> 00:23:31,000 Speaker 1: from its voter roles. And there's a federal law that 422 00:23:31,200 --> 00:23:34,600 Speaker 1: says UH states should try to call their voted voter 423 00:23:34,720 --> 00:23:37,480 Speaker 1: databases to get, you know, to keep them up to date. 424 00:23:37,640 --> 00:23:39,719 Speaker 1: But one thing they can't do is they can't remove 425 00:23:39,800 --> 00:23:43,679 Speaker 1: people for failure to vote. So what Colorado, obviously, what 426 00:23:43,720 --> 00:23:46,800 Speaker 1: Ohio does on your system, which which critics say is 427 00:23:46,840 --> 00:23:50,000 Speaker 1: the strictest in the nation, is if you don't vote 428 00:23:50,000 --> 00:23:53,439 Speaker 1: once they in an election, they will send you a notice, 429 00:23:54,000 --> 00:23:57,760 Speaker 1: and then if you don't send back that notice saying yeah, 430 00:23:57,760 --> 00:24:00,679 Speaker 1: I still live here, um, and then you vote for 431 00:24:00,720 --> 00:24:05,240 Speaker 1: the next two elections, Ohio will purge you from their 432 00:24:05,320 --> 00:24:09,919 Speaker 1: their roles. And the core question, it's a statutory question, 433 00:24:09,960 --> 00:24:11,920 Speaker 1: not a constitutional one, a though it feels like a 434 00:24:12,480 --> 00:24:15,400 Speaker 1: constitutional type issue. It's a question under this federal statute 435 00:24:15,400 --> 00:24:18,879 Speaker 1: whether that is removing people from the roles because of 436 00:24:18,920 --> 00:24:22,879 Speaker 1: their failure to vote. Well, you represented the challenges in 437 00:24:22,960 --> 00:24:26,959 Speaker 1: this case, and surprisingly Justice Stephen Bryer seemed to be 438 00:24:27,000 --> 00:24:29,880 Speaker 1: siding with the conservatives on the court, and he gave 439 00:24:29,960 --> 00:24:32,560 Speaker 1: you quite a hard time with his questions, how did 440 00:24:32,640 --> 00:24:35,600 Speaker 1: you handle that? Well, you know, when you're up there 441 00:24:35,600 --> 00:24:38,200 Speaker 1: trying to make a point and one justice is giving 442 00:24:38,200 --> 00:24:40,000 Speaker 1: you a lot of pushback and kind of interfering, you 443 00:24:40,080 --> 00:24:43,000 Speaker 1: never like it. Uh. And this was he was a 444 00:24:43,080 --> 00:24:45,920 Speaker 1: justice that we're going in probably would have expected maybe 445 00:24:45,960 --> 00:24:48,040 Speaker 1: to be more supportive. So that was a little bit upsetting. 446 00:24:48,359 --> 00:24:50,000 Speaker 1: But in the end I think I was able to 447 00:24:50,040 --> 00:24:53,479 Speaker 1: explain to him of that the kind of notice that 448 00:24:53,560 --> 00:24:57,879 Speaker 1: Ohio sins provides no real information about the underlying issue, 449 00:24:57,880 --> 00:24:59,920 Speaker 1: which is what has this person left the state or 450 00:25:00,119 --> 00:25:02,960 Speaker 1: or the county has this person moved away? They send 451 00:25:03,000 --> 00:25:06,320 Speaker 1: a forwardable notice, a notice that goes to wherever the 452 00:25:06,320 --> 00:25:09,760 Speaker 1: person is. The people don't return it, and when that happens, 453 00:25:09,760 --> 00:25:12,080 Speaker 1: the state doesn't know anything about whether the person has 454 00:25:12,119 --> 00:25:16,120 Speaker 1: moved away or not. And so in the end, I think, uh, 455 00:25:16,160 --> 00:25:18,600 Speaker 1: the answer in the case is that the only reason 456 00:25:18,640 --> 00:25:20,840 Speaker 1: they have to think this person has moved away is 457 00:25:20,840 --> 00:25:22,920 Speaker 1: their non voting and that's the one thing they can't 458 00:25:22,960 --> 00:25:25,760 Speaker 1: rely on under the statute. It is a it is 459 00:25:25,800 --> 00:25:28,560 Speaker 1: a purge for non voting, and that's banned by law. 460 00:25:29,160 --> 00:25:32,760 Speaker 1: What do you see as the implications of this case, 461 00:25:32,840 --> 00:25:36,119 Speaker 1: I mean it will just relate to Ohio. Will we 462 00:25:36,160 --> 00:25:40,840 Speaker 1: see other states expanding their purge their their voting laws 463 00:25:40,880 --> 00:25:45,240 Speaker 1: in this way? If if Ohio wins, you know there 464 00:25:45,359 --> 00:25:48,160 Speaker 1: are a lot of states to be frank these days 465 00:25:48,160 --> 00:25:50,360 Speaker 1: who are looking for waste. Does our trim the electorate 466 00:25:50,400 --> 00:25:54,280 Speaker 1: in a little bit to to keep the one party 467 00:25:54,280 --> 00:25:56,240 Speaker 1: in power? It's usually the Republicans that are doing it 468 00:25:56,280 --> 00:25:59,040 Speaker 1: these days. And so if the court says this is okay, 469 00:26:00,040 --> 00:26:02,200 Speaker 1: it's pretty clear that it has a part of the impact. 470 00:26:02,200 --> 00:26:05,160 Speaker 1: That most of the people are vote only sporadically tend 471 00:26:05,200 --> 00:26:08,000 Speaker 1: to be poorer tend to be minority voters. Is just 472 00:26:08,119 --> 00:26:10,000 Speaker 1: the sodam I R pointed out in the argument, and 473 00:26:10,080 --> 00:26:12,480 Speaker 1: so you may see other states copy copycatting. This is 474 00:26:12,520 --> 00:26:16,119 Speaker 1: a way to change just another slight edge in who's 475 00:26:16,200 --> 00:26:21,399 Speaker 1: voting in effect outcomes of elections. Another one of the 476 00:26:21,520 --> 00:26:26,560 Speaker 1: issues that seems to be going through our society over 477 00:26:26,600 --> 00:26:31,600 Speaker 1: and over again is our privacy protections and digital privacy protections. 478 00:26:31,720 --> 00:26:34,679 Speaker 1: And another one of the cases that has garnered a 479 00:26:34,720 --> 00:26:37,959 Speaker 1: lot of interest is the Carpenter case. Greg tell us 480 00:26:38,000 --> 00:26:41,400 Speaker 1: about that case, and well, we all learned about cell 481 00:26:41,400 --> 00:26:45,159 Speaker 1: phone pinging from that case. Yeah, So this is a case, 482 00:26:45,520 --> 00:26:49,879 Speaker 1: um about something that that everybody's phone does, which is 483 00:26:50,280 --> 00:26:53,399 Speaker 1: when you are out somewhere UH and you make a 484 00:26:53,480 --> 00:26:56,960 Speaker 1: call that the phone connects to a nearby cell phone 485 00:26:57,000 --> 00:27:02,760 Speaker 1: tower and the information about at UH is stored by 486 00:27:03,240 --> 00:27:07,119 Speaker 1: the the phone company. And so you can imagine if 487 00:27:07,119 --> 00:27:09,040 Speaker 1: you're out a lot and you're making a lot of calls, 488 00:27:09,080 --> 00:27:11,320 Speaker 1: the phone company gets a lot of information about you. 489 00:27:11,520 --> 00:27:14,320 Speaker 1: And in this case, UH, it's it's a criminal case 490 00:27:14,320 --> 00:27:18,440 Speaker 1: involving a man who UH was on trial for taking 491 00:27:18,440 --> 00:27:22,119 Speaker 1: part in a series of armed robberies. UH. The just 492 00:27:22,480 --> 00:27:26,200 Speaker 1: the prosecutors got information about his location, which happened to 493 00:27:26,200 --> 00:27:29,720 Speaker 1: to uhh coincide very nicely with with where the armed 494 00:27:29,760 --> 00:27:32,080 Speaker 1: robberies were taking place. And it got it under a 495 00:27:32,119 --> 00:27:35,760 Speaker 1: federal statute that doesn't require prosecutors to get a search 496 00:27:35,760 --> 00:27:40,600 Speaker 1: warrant to to to show the probable cause, uh that 497 00:27:40,680 --> 00:27:43,159 Speaker 1: you you need as a prosecutor to to get a 498 00:27:43,200 --> 00:27:48,480 Speaker 1: search warrant. And uh, the question for the Supreme Court is, 499 00:27:48,920 --> 00:27:51,800 Speaker 1: first of all, whether this information about where your cell 500 00:27:51,800 --> 00:27:54,240 Speaker 1: phone was when you were making a call and where 501 00:27:54,280 --> 00:27:57,120 Speaker 1: you were is something that is protected by the Fourth Amendment. 502 00:27:57,119 --> 00:28:01,959 Speaker 1: And if so, whether uh it is enough that they 503 00:28:02,000 --> 00:28:03,639 Speaker 1: had to make a little bit of a lesser showing 504 00:28:03,800 --> 00:28:07,560 Speaker 1: under this this federal statute, something lesser than probable cause, 505 00:28:07,640 --> 00:28:10,439 Speaker 1: whether that is adequate to meet the requirements of the 506 00:28:10,480 --> 00:28:16,240 Speaker 1: Fourth Amendment. Paul, most of the justices were expressing concerns 507 00:28:16,280 --> 00:28:23,240 Speaker 1: about privacy rights to Justice certainly was very very explicit 508 00:28:23,280 --> 00:28:25,960 Speaker 1: about the problems that that can happen if you have 509 00:28:26,440 --> 00:28:30,359 Speaker 1: too much of this kind of intrusion and tell us 510 00:28:30,400 --> 00:28:35,879 Speaker 1: about how they've norm they've often ruled in cases involving privacy. 511 00:28:36,720 --> 00:28:40,080 Speaker 1: Justices in recent years have been very strong on protecting 512 00:28:40,760 --> 00:28:44,560 Speaker 1: privacy from the kinds of invasions that occur with new technology. 513 00:28:44,600 --> 00:28:47,440 Speaker 1: We had a GPS case where the government took the 514 00:28:47,480 --> 00:28:49,760 Speaker 1: position that they could put a GPS device on your 515 00:28:49,760 --> 00:28:52,640 Speaker 1: car for months at a time and record everywhere you drive, 516 00:28:52,720 --> 00:28:55,520 Speaker 1: and the court said that was that was a Fourth 517 00:28:55,520 --> 00:28:59,160 Speaker 1: Amendment problem. Uh. Here the real issue is the so 518 00:28:59,280 --> 00:29:02,960 Speaker 1: called third party doctrines that when you have given all 519 00:29:02,960 --> 00:29:05,920 Speaker 1: this information to a third party here the telephone company, 520 00:29:06,000 --> 00:29:08,560 Speaker 1: you no longer have any Fourth Amendment protection from it. 521 00:29:08,680 --> 00:29:11,480 Speaker 1: That that's why the warrant requirement of the probable cause 522 00:29:11,560 --> 00:29:16,600 Speaker 1: requirements shouldn't apply. Since the government UH and Justice are 523 00:29:16,640 --> 00:29:18,840 Speaker 1: in that prior GPS case is already on record and 524 00:29:18,960 --> 00:29:23,160 Speaker 1: suggesting that we should rethink that doctrine that virtually everything 525 00:29:23,480 --> 00:29:26,000 Speaker 1: about us is in the hands of third parties these days, 526 00:29:26,800 --> 00:29:29,800 Speaker 1: we need to have more protections of all the data, 527 00:29:29,840 --> 00:29:32,200 Speaker 1: all that all those materials that are that the Googles 528 00:29:32,440 --> 00:29:36,200 Speaker 1: of the world have and the telephone companies have on us. 529 00:29:36,440 --> 00:29:39,640 Speaker 1: And so I think the court will again move in 530 00:29:39,680 --> 00:29:43,600 Speaker 1: the direction of greater privacy protection responding to technological developments 531 00:29:43,600 --> 00:29:48,600 Speaker 1: here that that threatened privacies. So Greg turning to another topic, 532 00:29:48,640 --> 00:29:52,600 Speaker 1: the Supreme Court has agreed to decide whether law enforcement 533 00:29:52,640 --> 00:29:58,080 Speaker 1: officials conducting a criminal investigation can demand data held overseas 534 00:29:58,240 --> 00:30:01,920 Speaker 1: by Microsoft and other tech companies. This is certainly another 535 00:30:02,000 --> 00:30:05,880 Speaker 1: high stakes clash over digital privacy. Tell us a little 536 00:30:05,880 --> 00:30:07,920 Speaker 1: more about it. Yeah, this is a case that the 537 00:30:07,960 --> 00:30:09,840 Speaker 1: Court is going to be arguing in the sitting that 538 00:30:10,000 --> 00:30:13,760 Speaker 1: is that is just about to begin. Um. And it interestingly, 539 00:30:13,760 --> 00:30:16,560 Speaker 1: it also has to do with the same law that's 540 00:30:16,560 --> 00:30:19,080 Speaker 1: called the Story Communications Act that was an issue in 541 00:30:19,080 --> 00:30:21,720 Speaker 1: in the cell phone case. When a company like in 542 00:30:21,720 --> 00:30:24,640 Speaker 1: this case Microsoft, if you set up an Outlook account 543 00:30:24,640 --> 00:30:28,360 Speaker 1: with with Microsoft, and you set it up in a 544 00:30:28,440 --> 00:30:33,040 Speaker 1: foreign country country, Microsoft's policy is, UM, we will store 545 00:30:33,160 --> 00:30:35,440 Speaker 1: all that information that you're about to start sending us 546 00:30:35,880 --> 00:30:38,560 Speaker 1: uh somewhere near where you set it up uh in 547 00:30:38,560 --> 00:30:43,240 Speaker 1: this case Ireland. And the question is whether this federal 548 00:30:43,320 --> 00:30:47,479 Speaker 1: laws US law, the Story Communications Act, let's the federal 549 00:30:47,560 --> 00:30:51,280 Speaker 1: government get access to that information even though it's it's 550 00:30:51,360 --> 00:30:57,440 Speaker 1: all the way in Ireland. And the government essentially argues, Um, first, 551 00:30:57,520 --> 00:30:59,400 Speaker 1: you don't know what the nationality of this person is, 552 00:30:59,440 --> 00:31:03,760 Speaker 1: who who UH set up that account? And second of all, 553 00:31:03,880 --> 00:31:06,400 Speaker 1: we're not asking anybody in Ireland to do anything. The 554 00:31:06,440 --> 00:31:10,000 Speaker 1: folks in Redmond, Washington, where Microsoft is headquartered, can just 555 00:31:10,200 --> 00:31:12,640 Speaker 1: you know, uh click click a mouse a couple of 556 00:31:12,680 --> 00:31:15,200 Speaker 1: times and get the information that we need. So it's 557 00:31:15,280 --> 00:31:19,600 Speaker 1: it's really a question of is this information actually overseas 558 00:31:19,680 --> 00:31:23,800 Speaker 1: and outside the reach of federal authorities or is it 559 00:31:24,520 --> 00:31:27,880 Speaker 1: domestic and therefore covered by this federal law. Paul, how 560 00:31:27,920 --> 00:31:29,480 Speaker 1: do you think the court will react to this? That 561 00:31:29,600 --> 00:31:34,760 Speaker 1: Storage Communications Act is from and it certainly is different 562 00:31:34,880 --> 00:31:37,160 Speaker 1: from the era that we live in now, right, I mean, 563 00:31:37,280 --> 00:31:39,280 Speaker 1: it's interesting. I think everybody would agree this is an 564 00:31:39,320 --> 00:31:41,560 Speaker 1: issue on which Congress needs to weigh in and update 565 00:31:41,640 --> 00:31:44,560 Speaker 1: the law. There's been efforts to get Congress to do 566 00:31:44,680 --> 00:31:48,200 Speaker 1: that so far unsuccessful. But what the Court may very 567 00:31:48,240 --> 00:31:50,360 Speaker 1: well figure is we should figure out the answer here 568 00:31:50,440 --> 00:31:52,760 Speaker 1: that that is most likely to get the Congress to 569 00:31:52,800 --> 00:31:54,920 Speaker 1: come in and do a job on this. You know, 570 00:31:55,160 --> 00:31:57,120 Speaker 1: I'm not entirely sure which way they'll go on this one. 571 00:31:57,720 --> 00:32:00,719 Speaker 1: It is an interesting problem because the electrons are over 572 00:32:00,760 --> 00:32:04,640 Speaker 1: there in Ireland wherever this stuff is stored. But as 573 00:32:04,800 --> 00:32:07,160 Speaker 1: as as Gregg says, they can, they can get this 574 00:32:07,200 --> 00:32:09,080 Speaker 1: stuff with a couple of key strokes. I want to 575 00:32:09,120 --> 00:32:12,360 Speaker 1: thank you both for spending this hour with me. That's 576 00:32:12,400 --> 00:32:15,760 Speaker 1: Paul Smith's professor at Georgetown Law School, and Greg Store, 577 00:32:15,800 --> 00:32:19,000 Speaker 1: Bloomberg New Supreme Court reporter. That's it for this special 578 00:32:19,080 --> 00:32:22,840 Speaker 1: holiday edition of Bloomberg Law. You can listen to politics, policy, 579 00:32:22,960 --> 00:32:25,880 Speaker 1: power and law every weekday at twelve pm Wall Street Time, 580 00:32:26,160 --> 00:32:29,080 Speaker 1: thanks to our producer David Suckerman. I'm June Basso. This 581 00:32:29,560 --> 00:32:30,240 Speaker 1: is Bloomberg