WEBVTT - Supreme Court Tosses Out ’Bridgegate’ Convictions

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<v Speaker 1>You're listening to Bloomberg Law with June Grasso from Bloomberg Radio.

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<v Speaker 1>It was a unanimous decision at the Supreme Court in

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<v Speaker 1>a case steeped in politics. The court overturned the fraud

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<v Speaker 1>convictions of two defendants in the Bridgegate scandal that shook

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<v Speaker 1>former New Jersey Governor Chris Christie's administration, joining me as

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<v Speaker 1>Brad MOS's apartment Mark zad So brad Atlanta Kagan wrote

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<v Speaker 1>the majority opinion, and she said the evidence showed deception,

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<v Speaker 1>corruption and abuse of power. So why did the court

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<v Speaker 1>overturn the convictions? So what's happened here is the existing

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<v Speaker 1>federal statute that the Justice Fartment has been trying to

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<v Speaker 1>rely upon, such as wire fraud and federal bribery, never

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<v Speaker 1>really envisioned being applied in a situation where there was

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<v Speaker 1>no money at issue. So we're like, what happened here

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<v Speaker 1>similar to what we had a couple of years ago

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<v Speaker 1>with McDonald case that came out of Virginia. Was the

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<v Speaker 1>particular corrupt actions which everyone, even though all the justices

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<v Speaker 1>agreed were rup they were brazenly political. Complete retaliation didn't

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<v Speaker 1>fall within the scope of this type of federal statute.

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<v Speaker 1>They wire fraud statute required more than justice fraudulent use

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<v Speaker 1>of authority, but that it would be done for the

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<v Speaker 1>purpose of obtaining money or property. And the reason that

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<v Speaker 1>the justices overruled the convictions here was because despite what

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<v Speaker 1>actually happened, despite the admission that this was retaliation, it

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<v Speaker 1>was fraud. They didn't do it in order to obtain

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<v Speaker 1>money themselves. They were just engaging in political retaliation. And

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<v Speaker 1>these federal statutes don't contemplate serving as sort of a

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<v Speaker 1>roving federal anti corruption statute. That's not what they do.

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<v Speaker 1>So is it because the government had a sort of

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<v Speaker 1>tortured view of what government property consisted of. But that

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<v Speaker 1>was part of it. And so what the government tried

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<v Speaker 1>to claim was that because in order to cover up

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<v Speaker 1>their actions, the steps taken by the two criminal defendants

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<v Speaker 1>had been to utilize government resources to create a phony,

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<v Speaker 1>you know, story about a travel study, to pay off

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<v Speaker 1>a toll worker, to close lanes. Because they had used

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<v Speaker 1>funds in that way, with implicating a federally funded program,

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<v Speaker 1>the Port Authority, that was sufficient to meet the statute.

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<v Speaker 1>But what the justices concluded was because these two individuals

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<v Speaker 1>weren't doing it to get money for themselves that took

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<v Speaker 1>it outside the scope of the wire fraud statute. So,

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<v Speaker 1>as you mentioned, this is not the first time the

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<v Speaker 1>Supreme Court has reversed a case when there's a prosecution

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<v Speaker 1>for public corruption. Is there something about these prosecutions that

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<v Speaker 1>the court finds wanting. It's not so much wanting from

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<v Speaker 1>the facts so much as that the existing legal uh

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<v Speaker 1>provisions that are being relied upon by d o j.

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<v Speaker 1>The Supreme Court has included doesn't reach this far. So

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<v Speaker 1>there isn't, by you know, in law, any kind of broad,

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<v Speaker 1>overarching anti corruption statute that applies to the official acts

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<v Speaker 1>of state officials. There's state laws that apply to that,

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<v Speaker 1>and there may have been an argument that there should

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<v Speaker 1>have been a state criminal business opposed to a federal one,

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<v Speaker 1>but the federal government hasn't ever imposed such a law

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<v Speaker 1>on state officials. And there'd be obvious questions, you know,

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<v Speaker 1>in terms of Article ten of the Constitution, whether or

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<v Speaker 1>not that would violate the separation of powers between the

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<v Speaker 1>federal government and the state if the federal government could

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<v Speaker 1>impose a broad anti corruption statute against state officials. So

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<v Speaker 1>that's the thing why they haven't done that in the past.

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<v Speaker 1>And probably why they won't even do that going forward.

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<v Speaker 1>But it does speak to whether or not the existing

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<v Speaker 1>statutes have been tried to be use, such as the

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<v Speaker 1>you know, the bribery statutes, whether or not they'd be

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<v Speaker 1>clarified or updated going forward, given how these state officials

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<v Speaker 1>have been sort of exploiting these loopholes. Let's go back

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<v Speaker 1>for a second to the McDonald case. Sort of a

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<v Speaker 1>shocking decision to most people. Yeah, and in that one,

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<v Speaker 1>so that was the in that case, with the federal

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<v Speaker 1>bribery statute that was to play, and there was things

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<v Speaker 1>a value of personal money received, so that element that

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<v Speaker 1>long of the issue was resolved and the government could

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<v Speaker 1>prove its case. But what they struggled with there and

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<v Speaker 1>why the justices overturned the conviction in that case, was

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<v Speaker 1>there was no actual official act by Governor McDonald that

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<v Speaker 1>the simple actions of taking a meeting or recommending someone

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<v Speaker 1>talk with the private company wasn't sufficient to implicate the

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<v Speaker 1>official act by a state official. And again we're getting

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<v Speaker 1>into the nitty gritty weeds of what doesn't does does

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<v Speaker 1>not qualify as official state action, what doesn't doesn't qualify

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<v Speaker 1>as a fraudulent effort to obtain personal moneys or property.

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<v Speaker 1>But this is where the vagaries of the law have

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<v Speaker 1>come down to and where we're still fleshing out, you know,

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<v Speaker 1>at this point, and even with the Supreme Court cases

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<v Speaker 1>these two in the last five years of exactly how

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<v Speaker 1>far state officials can, you know, push the boundaries and

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<v Speaker 1>exercise their power. So finally, will this have a chilling

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<v Speaker 1>effect on federal prosecutors. I think there'll be a little

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<v Speaker 1>bit more gun shy in terms of how they approached

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<v Speaker 1>some of these cases. I think there was certainly an

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<v Speaker 1>effort to crack down some of the corruption that they

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<v Speaker 1>thought was not being properly addressed. I think they were

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<v Speaker 1>legitimate and good, good faith purposes behind both prosecutions. I mean,

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<v Speaker 1>certainly what Governor McDonald did here in Virginia a few

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<v Speaker 1>years back, and then what these two individuals did in

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<v Speaker 1>New Jersey back was discussing it was unethical, um and

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<v Speaker 1>it was brazenly politically corrupt. But it raises a question

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<v Speaker 1>about how much the federal government is allowed to venture

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<v Speaker 1>into this from a criminal standpoint, given our state government

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<v Speaker 1>officials and not the federal government officials. Okay, thanks brad,

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<v Speaker 1>that's Bradley mass apartment. Mark Zade coming up next on

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<v Speaker 1>Bloomberg Law, a controversial Trump nominee to the second highest

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<v Speaker 1>court in the land, gets a confirmation hearing with social

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<v Speaker 1>distancing MH. The Senate Judiciary Committee became one of the

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<v Speaker 1>first Congressional panels to embrace new procedures to work during

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<v Speaker 1>the coronavirus pandemic. The committee heard testimony from President Trump's

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<v Speaker 1>controversial pick for the d C Circuit Court of Appeals,

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<v Speaker 1>Judge Justin Walker, joining me as Madison Alder Bloomberg Law reporter.

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<v Speaker 1>So was it a teleconference, Maddie, a video conference? How

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<v Speaker 1>did it work? It was a little bit of both.

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<v Speaker 1>So the Senate Judiciary Committee was one of the first

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<v Speaker 1>committees on the Hill to to try, uh, to adapt

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<v Speaker 1>to the coronavirus pandemic. And the way they chose to

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<v Speaker 1>do that was to use the larger hearing room than

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<v Speaker 1>they typically do. So they had lawmakers who were there

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<v Speaker 1>in person, spread out among two levels of desks. They

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<v Speaker 1>had at least six feet of separation between them. And

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<v Speaker 1>then they had a few lawmakers who were present via

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<v Speaker 1>video conference. Uh, So they showed up on a video screen,

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<v Speaker 1>and then the nominee himself was there and would addressed

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<v Speaker 1>their questions on that on that video. It's great and

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<v Speaker 1>so um they're just in the pandemic just like everyone else.

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<v Speaker 1>Were there any uh hiccups, any problems. It was a

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<v Speaker 1>little difficult to hear a few of the speakers. Um,

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<v Speaker 1>when Senator Patrick lay he came on, his voice was

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<v Speaker 1>very booming. He sounded a bit like the Wizard of

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<v Speaker 1>oz Um. And then later on Senator Marsha Blackburn, she

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<v Speaker 1>came on and we couldn't hear her audio for a second.

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<v Speaker 1>But despite those those couple of hiccups, it went pretty smoothly.

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<v Speaker 1>I think, you know, it kind of fits with the

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<v Speaker 1>theme we've seen with a lot of these government institutions

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<v Speaker 1>that are switching over to some kind of adapted version

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<v Speaker 1>of their proceedings, like the Supreme Court, where despite a

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<v Speaker 1>few minor hiccups, that seems to be working pretty well.

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<v Speaker 1>The Democrats had an objection to even holding this hearing

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<v Speaker 1>because they're holding this hearing before Judge Griffith, whom Walker

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<v Speaker 1>is supposed to replace, is even scheduled to step aside,

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<v Speaker 1>that's in September. I have this hearing that that's correct.

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<v Speaker 1>So Democrats for a prose to the idea of this hearing.

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<v Speaker 1>Last week they sent a letter to Senator Graham one

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<v Speaker 1>word of this hearing came out. They said that they

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<v Speaker 1>should be focusing on issues within the Senatejuciary Committee jurisdiction

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<v Speaker 1>that are related to the coronavirus pandemic, rather than a

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<v Speaker 1>nominee who won't be filling this seat until September when

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<v Speaker 1>Judge brought this step down. But the Senate Judiciary Committee

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<v Speaker 1>McConnell has said that this is going to be a

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<v Speaker 1>priority for the Senate, and the Senate Judiciary Committee is

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<v Speaker 1>moving along without work. Republicans are saying that that judges

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<v Speaker 1>are a part of the essential work of the Senate.

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<v Speaker 1>Um Senator John Cornyn yesterday I reiterated that and said,

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<v Speaker 1>you know, this is one of the things that the

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<v Speaker 1>Senate should be doing during this time. So that was

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<v Speaker 1>definitely a consistent conversation throughout the hearing. In addition to

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<v Speaker 1>questioning the nominee himself, we kind of had this side

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<v Speaker 1>debate of whether or not they should be focusing on

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<v Speaker 1>this versus, you know, other things that the committee could

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<v Speaker 1>be doing now. Walker is a protege of Majority Leader

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<v Speaker 1>Mitch McConnell, who has been leading the Bush to fill

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<v Speaker 1>the judiciary with conservatives. Tell us a little more about him. So,

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<v Speaker 1>Justine Walker. He is currently a judge on the Western

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<v Speaker 1>District of Kentucky thirty seven, which is fairly young for

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<v Speaker 1>an Afield Court nominee. He is a protege of Mitch McConnell.

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<v Speaker 1>Mitch McConnell has really championed his nomination for the DC Circuit.

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<v Speaker 1>Walker was first nominated to his trial court seat by

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<v Speaker 1>Trump UH and confirmed just six months ago, so this

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<v Speaker 1>is a pretty quick elevation to the DC Circuit. There

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<v Speaker 1>was a bit of controversy over his last nomination because

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<v Speaker 1>the American Bar Association, which does ratings for judicial nominees,

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<v Speaker 1>rating him not qualified, which is he was one of

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<v Speaker 1>the handful of nominees that Trump has had who has

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<v Speaker 1>been rated not qualified, and that was that largely characterized demo.

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<v Speaker 1>Perhaps concerns in the last hearing, a lot of their

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<v Speaker 1>comments were about his qualifications in his background. This time around, however,

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<v Speaker 1>the night before his hearing, the A B A gave

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<v Speaker 1>him a well qualified rating, which is their highest rating.

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<v Speaker 1>So why did the A B A change it's rating

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<v Speaker 1>on him? He's only been a judge for six months.

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<v Speaker 1>The ADA says they changed their rating because they were

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<v Speaker 1>looking through different lens for this for this position. Um. Yeah,

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<v Speaker 1>I talked to a few people who follow this process

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<v Speaker 1>and they said that the DC circuit had has different

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<v Speaker 1>types of cases than a trial court would, and also

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<v Speaker 1>circuit courts have different types of cases and trial court would.

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<v Speaker 1>So that could be part of why they changed their

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<v Speaker 1>their decision here is that you know, as a trial

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<v Speaker 1>court judge there are different um types of skills and

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<v Speaker 1>responsibilities that you need to um have and and attend

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<v Speaker 1>to then you do as an appeals court judge. So

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<v Speaker 1>those are the factors that could be contributing to why

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<v Speaker 1>they ultimately changed the rating. Did anyone talk about the

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<v Speaker 1>fact that he just became a district court judge not

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<v Speaker 1>six months ago. Yeah, I mean, it wasn't lost on

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<v Speaker 1>members of the committee. McConnell even made reference to that

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<v Speaker 1>when he gave remarks on the Senate floor yesterday during

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<v Speaker 1>the hearing um. It is somewhat of a quick elevation,

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<v Speaker 1>but this has happened in you know, in the past

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<v Speaker 1>and in other administrations where someone is appointed to a

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<v Speaker 1>lower court and is elevated to UM an appeal court.

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<v Speaker 1>Is Walker leap frogging over other candidates who were in line. Yeah,

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<v Speaker 1>so that is something else that was brought up at

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<v Speaker 1>the hearing yesterday. Walker was nominated amid the pandemic um.

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<v Speaker 1>Trump had two nominees for the appeals court seats that

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<v Speaker 1>he has left to still as a seat on the

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<v Speaker 1>fifth Circuit and as this seat on on the DC Circuit.

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<v Speaker 1>The fifth Circuit seat is actually vacant right now, and

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<v Speaker 1>it has been for quite some time. It's considered a

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<v Speaker 1>judicial emergency, which is a term given to seats that

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<v Speaker 1>kind of put a lot more pressure on the remaining

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<v Speaker 1>judges they have a higher workload. Uh, So that seat

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<v Speaker 1>is still vacant. Um. The nominee for that seat, Corey Wilson,

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<v Speaker 1>was nominated before Walker, so he's leap frogging another appeals

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<v Speaker 1>court nominee, and then of course he is leapfrogging other

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<v Speaker 1>district court picks who are in the pipeline. There's about

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<v Speaker 1>um forties four nominees currently in the pipeline. Uh. Some

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<v Speaker 1>of those have yet to have a hearing, So there

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<v Speaker 1>are a number of those nominees that that could also

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<v Speaker 1>have a hearing soon. So is there any explanation from

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<v Speaker 1>the committee chair or from McConnell as to why they're

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<v Speaker 1>not dealing with the vacant seat first? What is the

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<v Speaker 1>urgency of this? There hasn't been very much, uh in

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<v Speaker 1>terms of addressing why Walker's nomination was put first. But

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<v Speaker 1>if we look at the numbers and the past history

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<v Speaker 1>of the Judiciary Committee, UM and Trump and and Senator McConnell,

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<v Speaker 1>is that we see that they do prioritize Appeals Court

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<v Speaker 1>nominees over other nominees. Um. There's been some you know,

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<v Speaker 1>data that shows that those nominies move quicker through the

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<v Speaker 1>process than than other nominees. So, um, you know, it

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<v Speaker 1>could that is the contributing factor that the d C

0:13:22.360 --> 0:13:25.200
<v Speaker 1>Circuit is is known as the second highest court in

0:13:25.200 --> 0:13:28.400
<v Speaker 1>the land. It's a very important court. And you know,

0:13:28.440 --> 0:13:31.880
<v Speaker 1>I'm sure McConnell will like to get his his pick

0:13:32.040 --> 0:13:36.280
<v Speaker 1>into that seat as quickly as possible. Now, Democrats are

0:13:36.320 --> 0:13:42.320
<v Speaker 1>concerned about Walker's writings and remarks on Obamacare. Tell us

0:13:42.360 --> 0:13:47.080
<v Speaker 1>about their concerns. So Walker has made a few comments

0:13:47.080 --> 0:13:49.320
<v Speaker 1>over the past few years about the A c. A.

0:13:49.800 --> 0:13:53.760
<v Speaker 1>The first one was in an article defending Kavanaugh's nomination

0:13:53.920 --> 0:13:56.840
<v Speaker 1>to the Supreme Court. He was a former Kavanaugh clerk.

0:13:57.120 --> 0:13:59.520
<v Speaker 1>When Kavanat was on the DC Circuit. He also clerked

0:13:59.559 --> 0:14:04.320
<v Speaker 1>for this Anthony Kennedy. UH. And in that article he

0:14:04.360 --> 0:14:08.559
<v Speaker 1>basically said that the Supreme Court decision in n f

0:14:08.640 --> 0:14:12.400
<v Speaker 1>I B Versus Civilius, which is the decision that upheld

0:14:12.920 --> 0:14:15.800
<v Speaker 1>the individual mandate of the A C. A. He said

0:14:15.840 --> 0:14:18.640
<v Speaker 1>that that was indefensible and that was something that Democrats

0:14:18.679 --> 0:14:21.960
<v Speaker 1>took issue with. UM kind of in the context of

0:14:22.000 --> 0:14:24.480
<v Speaker 1>the pandemic. A few of them asked why they should

0:14:24.520 --> 0:14:29.120
<v Speaker 1>advance a judge who was seemingly opposed to this law, UH,

0:14:29.240 --> 0:14:32.760
<v Speaker 1>during the time of a pandemic. Another comment he made

0:14:32.840 --> 0:14:35.680
<v Speaker 1>was that his investor in march um it was a

0:14:35.680 --> 0:14:40.000
<v Speaker 1>bit of a joke. At the end of a description

0:14:40.080 --> 0:14:43.960
<v Speaker 1>of his relationship with his former boss, Anthony Kennedy, he

0:14:44.480 --> 0:14:48.160
<v Speaker 1>he made a remark that UH kind of poked fund

0:14:48.160 --> 0:14:51.120
<v Speaker 1>at the A C A UH and that particular decision again,

0:14:51.160 --> 0:14:53.480
<v Speaker 1>and Democrats also took took a shoet with that. But

0:14:53.960 --> 0:14:57.200
<v Speaker 1>you know, he said that in the article that he wrote, UM,

0:14:57.240 --> 0:14:59.440
<v Speaker 1>he was really trying to do a legal analysis. And

0:14:59.480 --> 0:15:01.520
<v Speaker 1>then he also said that you know, it really was

0:15:01.560 --> 0:15:04.240
<v Speaker 1>a joke, and he does, you know, respect Kennedy and

0:15:04.680 --> 0:15:08.880
<v Speaker 1>the Court. And I believe that not only Mitch McConnell

0:15:09.080 --> 0:15:15.800
<v Speaker 1>but Justice Kavanaugh were at his investiture ceremonies. That's correct. Um,

0:15:15.840 --> 0:15:18.040
<v Speaker 1>this was actually in March, so was at the beginning

0:15:18.040 --> 0:15:22.840
<v Speaker 1>of this pandemic. Um, McConnell and and Kavanaugh were there.

0:15:22.880 --> 0:15:27.560
<v Speaker 1>They were present when you know, he was formally added

0:15:27.600 --> 0:15:31.240
<v Speaker 1>to the Western District of Kentucky, which, um, you know,

0:15:31.320 --> 0:15:35.400
<v Speaker 1>brace some eyerows among Democrats. But both of those were

0:15:35.520 --> 0:15:39.040
<v Speaker 1>mentors of his. Um. So it's it's not a typical

0:15:39.080 --> 0:15:42.280
<v Speaker 1>to have mentors there, but um, it definitely raised some eyes,

0:15:42.800 --> 0:15:46.640
<v Speaker 1>eyebrows in the opposition. What also raised some eyebrows was

0:15:46.760 --> 0:15:50.440
<v Speaker 1>his recent ruling allowing Easter services to go forward in

0:15:50.520 --> 0:15:55.320
<v Speaker 1>Kentucky despite the virus. And it was controversial not only

0:15:55.360 --> 0:15:58.680
<v Speaker 1>because it seemed to solve an issue that really wasn't there,

0:15:58.760 --> 0:16:03.320
<v Speaker 1>but also because of its overt religious tones. Did he

0:16:03.400 --> 0:16:06.800
<v Speaker 1>talk about that, That's correct. That was another thing that

0:16:06.840 --> 0:16:08.920
<v Speaker 1>was brought up a lot. It was interesting at the hearing.

0:16:09.160 --> 0:16:11.760
<v Speaker 1>It was brought up by law makers on both sides

0:16:11.800 --> 0:16:16.520
<v Speaker 1>of the aisle. Republicans pointed to that ruling as evidence

0:16:16.560 --> 0:16:20.080
<v Speaker 1>of his understanding of the law and his you know

0:16:20.240 --> 0:16:23.600
<v Speaker 1>how he would uphold the constitution. Um. But Democrats pointed

0:16:23.640 --> 0:16:27.720
<v Speaker 1>to it as evidence of potential partisanship. UM. You know,

0:16:27.840 --> 0:16:31.360
<v Speaker 1>said that it was it was far too off topic. UM.

0:16:31.520 --> 0:16:36.800
<v Speaker 1>Another thing that came up about that particular ruling was that, um,

0:16:36.840 --> 0:16:41.720
<v Speaker 1>it was made without contacting the the mayor who had

0:16:41.760 --> 0:16:47.120
<v Speaker 1>put those restrictions in place himself. So UM. Some some

0:16:47.200 --> 0:16:49.720
<v Speaker 1>Democrats who were questioning did bring that up as as

0:16:49.800 --> 0:16:54.520
<v Speaker 1>a point um of of disagreements and Maddie, did anyone

0:16:54.520 --> 0:16:58.800
<v Speaker 1>bring up. Recently, the chief Judge of the d C Circuit,

0:16:59.160 --> 0:17:03.600
<v Speaker 1>Sri Sriniva Sin, asked the Chief Justice of the United States,

0:17:04.119 --> 0:17:10.800
<v Speaker 1>John Roberts to get another circuit to investigate allegations or

0:17:10.920 --> 0:17:15.080
<v Speaker 1>a request by Demand Justice to look into whether Mitch

0:17:15.160 --> 0:17:21.040
<v Speaker 1>McConnell influenced Judge Griffith to retire. So that's definitely in

0:17:21.080 --> 0:17:23.320
<v Speaker 1>the background of all of this. That's that's kind of

0:17:23.359 --> 0:17:26.040
<v Speaker 1>the contact for all of this. There have been um

0:17:26.200 --> 0:17:29.879
<v Speaker 1>reports that Mitch McConnell is asking judges to retire in

0:17:29.920 --> 0:17:33.440
<v Speaker 1>that this and UM. More liberal groups like Demand Justice

0:17:33.600 --> 0:17:36.920
<v Speaker 1>are taking issue with saying that it's unethical for them

0:17:36.960 --> 0:17:39.639
<v Speaker 1>to do so. Um, you know, that was something that

0:17:39.680 --> 0:17:44.680
<v Speaker 1>definitely was uh part of the context for for yesterday's hearing.

0:17:45.200 --> 0:17:48.720
<v Speaker 1>Has that moved anywhere that request to the chief Um,

0:17:48.760 --> 0:17:51.080
<v Speaker 1>not that I know of yet. The last news that

0:17:51.119 --> 0:17:54.639
<v Speaker 1>I heard was that it was just going through the

0:17:55.080 --> 0:17:58.359
<v Speaker 1>process and that they had opted for that that review.

0:17:59.200 --> 0:18:02.080
<v Speaker 1>So does it seem as if nothing is really going

0:18:02.160 --> 0:18:06.200
<v Speaker 1>to stop Judge Walker's confirmation. Mitch McConnell has the votes

0:18:06.240 --> 0:18:10.000
<v Speaker 1>as usual. You know, Walker went through last time despite

0:18:10.040 --> 0:18:14.240
<v Speaker 1>his not qualified rating. Walker was confirmed and this time

0:18:14.359 --> 0:18:18.439
<v Speaker 1>he has the well qualified rating. And the Senate is

0:18:18.440 --> 0:18:22.119
<v Speaker 1>still led by Republicans, they still have a majority, So

0:18:22.280 --> 0:18:25.160
<v Speaker 1>it does appear that his his nomination will will still

0:18:25.240 --> 0:18:27.679
<v Speaker 1>be going through. But um, that doesn't mean it's not

0:18:27.720 --> 0:18:30.760
<v Speaker 1>going through without a fight. As President Trump nominated other

0:18:30.840 --> 0:18:36.160
<v Speaker 1>judges recently for positions. Yes yesterday there was another nomination

0:18:36.200 --> 0:18:38.960
<v Speaker 1>from the White House for the Eastern District of Virginia.

0:18:39.280 --> 0:18:42.080
<v Speaker 1>And that adds to you know, the over forty nominees

0:18:42.080 --> 0:18:44.720
<v Speaker 1>that I mentioned that are in the pipeline. Um, that's

0:18:44.760 --> 0:18:49.680
<v Speaker 1>for about seventy nine vacancies right now, current future vacancies

0:18:49.760 --> 0:18:52.639
<v Speaker 1>so you know about half those vacancies have someone in

0:18:52.680 --> 0:18:54.920
<v Speaker 1>the pipeline. They're just waiting for the Senate and the

0:18:55.000 --> 0:19:00.480
<v Speaker 1>Judiciary committee. Doc. Okay, thanks Maddie. That's Madison Alder Bloomberg reporter.

0:19:02.400 --> 0:19:05.919
<v Speaker 1>College students kicked off campus by the coronavirus have a

0:19:05.960 --> 0:19:11.600
<v Speaker 1>new extracurricular activity, lawsuits. Undergraduates have sued more than fifty

0:19:11.680 --> 0:19:15.840
<v Speaker 1>schools demanding refunds for partial tuition, room and board, and

0:19:15.920 --> 0:19:19.440
<v Speaker 1>fees after the schools shut down. Joining me is Joe

0:19:19.440 --> 0:19:22.760
<v Speaker 1>brannan professor at Vermont Law School who's tracking the litigation.

0:19:23.280 --> 0:19:26.919
<v Speaker 1>What types of lawsuits are the students filing. It seems

0:19:26.960 --> 0:19:32.240
<v Speaker 1>that they're filing contract based lawsuits, speaking damages for both

0:19:32.720 --> 0:19:38.560
<v Speaker 1>contact damages and something called restitution or on just enrichment.

0:19:38.920 --> 0:19:42.800
<v Speaker 1>If it's a contract to action, do students sign anything

0:19:43.280 --> 0:19:47.359
<v Speaker 1>or do colleges have posting somewhere on a website that

0:19:47.840 --> 0:19:52.800
<v Speaker 1>says what tuition covers. It's kind of very based on

0:19:53.000 --> 0:19:58.440
<v Speaker 1>the institution um. Generally, schools, dur institutions will have something

0:19:59.160 --> 0:20:02.600
<v Speaker 1>in offer letter that they send out the students saying

0:20:02.640 --> 0:20:07.120
<v Speaker 1>that they're expecting accepting them into the program and oftentimes

0:20:07.119 --> 0:20:11.040
<v Speaker 1>saying that they're bound by the terms of any academic

0:20:11.119 --> 0:20:16.439
<v Speaker 1>or student regulation. To the extent that something on the website,

0:20:16.880 --> 0:20:19.960
<v Speaker 1>it wand into some difficulty whether that that would actually

0:20:20.040 --> 0:20:24.320
<v Speaker 1>be come part of the terms of the contract. Something

0:20:24.400 --> 0:20:30.399
<v Speaker 1>like advertising generally isn't the basis of the offer or

0:20:30.480 --> 0:20:35.280
<v Speaker 1>included in the offer. So um, that's reputtable that could

0:20:35.320 --> 0:20:38.200
<v Speaker 1>become part of the offer. Who was very specific and

0:20:38.200 --> 0:20:41.840
<v Speaker 1>and related to the terms of the agreement, But most

0:20:41.840 --> 0:20:44.880
<v Speaker 1>of the time it would just be something in an

0:20:44.920 --> 0:20:50.080
<v Speaker 1>offer letter, which generally doesn't lay out specifically what tuition

0:20:50.200 --> 0:20:54.680
<v Speaker 1>dollars are allocated to. And what would one just enrichment

0:20:54.840 --> 0:21:01.520
<v Speaker 1>claim depend on. I'm just enrichment requires three different things.

0:21:01.680 --> 0:21:07.000
<v Speaker 1>It requires a law on the part of the plaintiffs,

0:21:07.160 --> 0:21:11.480
<v Speaker 1>It requires a benefit on the part of the defendant,

0:21:12.280 --> 0:21:17.960
<v Speaker 1>and it requires some connection or causation between the two

0:21:17.960 --> 0:21:21.040
<v Speaker 1>of them. So that's a big difference between on justin

0:21:21.160 --> 0:21:25.040
<v Speaker 1>Richmond claim and a contract claim. And a contract claim

0:21:25.240 --> 0:21:28.639
<v Speaker 1>you're showing that you were hurt and you're entitled to

0:21:29.359 --> 0:21:33.600
<v Speaker 1>money or compensation. In and on justin Richmond claim, you

0:21:33.640 --> 0:21:37.160
<v Speaker 1>have to claim to show that not only were you damaged,

0:21:37.480 --> 0:21:41.880
<v Speaker 1>but also the other party was at the same time benefited.

0:21:42.440 --> 0:21:46.000
<v Speaker 1>And so that's um the recovery that we get the

0:21:46.000 --> 0:21:50.200
<v Speaker 1>amount that they were on justly benefited. So these colleges

0:21:50.560 --> 0:21:55.080
<v Speaker 1>still have to pay their professors, they have some amount

0:21:55.119 --> 0:21:58.879
<v Speaker 1>that they have to spend in transitioning to online courses.

0:21:59.119 --> 0:22:02.160
<v Speaker 1>So they are they necessarily going to come out ahead here.

0:22:02.920 --> 0:22:07.240
<v Speaker 1>Not necessarily. Um, there are some areas where you might

0:22:07.359 --> 0:22:11.360
<v Speaker 1>be more likely to get recovery than others. For instance,

0:22:11.440 --> 0:22:15.679
<v Speaker 1>many schools are refunding um real plants or women boards

0:22:15.760 --> 0:22:18.120
<v Speaker 1>because they're not now having to go out and buy

0:22:18.119 --> 0:22:21.000
<v Speaker 1>the food to serve to the students, so they are

0:22:21.080 --> 0:22:25.480
<v Speaker 1>saving a benett from from that. But schools are still

0:22:25.960 --> 0:22:30.200
<v Speaker 1>teaching the courses, they're still playing their faculty to teach

0:22:30.240 --> 0:22:32.840
<v Speaker 1>the courses that students are still getting credit for it,

0:22:33.400 --> 0:22:36.000
<v Speaker 1>and there may be additional costs that have been incurred

0:22:36.160 --> 0:22:41.680
<v Speaker 1>to support the online transition. So absolutely correct, there's not

0:22:41.760 --> 0:22:45.439
<v Speaker 1>necessarily going to be a benefit to the law school

0:22:45.800 --> 0:22:51.480
<v Speaker 1>or college or university, even if there was a detriment

0:22:51.600 --> 0:22:56.080
<v Speaker 1>that was suffered by the planet. So how are colleges

0:22:56.200 --> 0:23:00.280
<v Speaker 1>responding to these lawsuits? Are some of them say we're

0:23:00.280 --> 0:23:02.800
<v Speaker 1>going to fight this to the bitter end or others

0:23:02.840 --> 0:23:05.480
<v Speaker 1>saying well, we'll give you back this or that. I

0:23:05.520 --> 0:23:09.480
<v Speaker 1>think it's early, and I think it's varied. Many schools

0:23:09.720 --> 0:23:14.040
<v Speaker 1>have taken some steps to a funds. These that are

0:23:14.240 --> 0:23:19.679
<v Speaker 1>directly related to specific costs, such as women board is

0:23:19.880 --> 0:23:23.840
<v Speaker 1>a good example of that, or parking sees or some

0:23:24.080 --> 0:23:28.800
<v Speaker 1>see that's directly related to a service that isn't being provided.

0:23:29.320 --> 0:23:33.320
<v Speaker 1>It's still early and schools will have varied responses to this.

0:23:33.760 --> 0:23:37.879
<v Speaker 1>I'm not aware as any of that have issued refunds

0:23:37.920 --> 0:23:42.200
<v Speaker 1>of tuition to this point. Again, this is all happening

0:23:42.320 --> 0:23:47.760
<v Speaker 1>UM insence blocks right now. If this went to trial,

0:23:47.880 --> 0:23:52.800
<v Speaker 1>Let's say the students are still getting the credits towards

0:23:52.800 --> 0:23:55.960
<v Speaker 1>their diploma, so they're getting that much. How would a

0:23:56.040 --> 0:24:01.239
<v Speaker 1>court determine what the value of an online education is

0:24:01.520 --> 0:24:07.000
<v Speaker 1>versus the value of an education on campus? Right, because

0:24:07.040 --> 0:24:10.120
<v Speaker 1>that would be what the damages would be if it's

0:24:10.200 --> 0:24:14.560
<v Speaker 1>an on just Enrichmond claim or even a contract claim UM.

0:24:14.600 --> 0:24:17.880
<v Speaker 1>And so there's little precedent for this because what we're

0:24:17.920 --> 0:24:21.439
<v Speaker 1>doing right now with the shift online education, wouldn't have

0:24:21.480 --> 0:24:25.520
<v Speaker 1>been possible even UM a couple of years ago. Some

0:24:25.680 --> 0:24:29.520
<v Speaker 1>case law is instructive in UM the case of Hurricane

0:24:29.600 --> 0:24:33.280
<v Speaker 1>Katrina there worked on. Schools in New Orleans were not

0:24:33.440 --> 0:24:36.520
<v Speaker 1>able to proceed with the campus, but other schools stepped

0:24:36.600 --> 0:24:41.159
<v Speaker 1>in and let them finish out the semester at a

0:24:41.200 --> 0:24:44.159
<v Speaker 1>different institution in a different area. And there was at

0:24:44.240 --> 0:24:46.960
<v Speaker 1>least one class action related to that, and of course

0:24:47.480 --> 0:24:52.720
<v Speaker 1>did dismissed the um greek of contract and on Justin

0:24:52.840 --> 0:24:57.080
<v Speaker 1>Richmond claims because the students still did get the credit

0:24:57.600 --> 0:25:01.119
<v Speaker 1>and graduate from the ITC and that they were enrolled

0:25:01.119 --> 0:25:03.159
<v Speaker 1>in just for that's the dust, or they got it

0:25:03.240 --> 0:25:07.919
<v Speaker 1>from a different area. So it is a difficult situation

0:25:08.040 --> 0:25:13.040
<v Speaker 1>to evaluate exactly if there was a low benefit to

0:25:13.160 --> 0:25:16.879
<v Speaker 1>the students would still be getting the same number of credits,

0:25:16.920 --> 0:25:20.600
<v Speaker 1>So that would be students would have the burden is

0:25:20.680 --> 0:25:25.080
<v Speaker 1>the plaintiffs to establish those damages and would have to

0:25:25.160 --> 0:25:30.119
<v Speaker 1>bring in specific ways in which the online education and

0:25:30.160 --> 0:25:34.080
<v Speaker 1>the in person education were preciably different, such that they're

0:25:34.520 --> 0:25:39.040
<v Speaker 1>learning was not the same value as they had paid.

0:25:39.840 --> 0:25:45.920
<v Speaker 1>So lawyers are advertising on sites like college refund dot

0:25:46.000 --> 0:25:50.159
<v Speaker 1>com to sign up students because they wanted to be

0:25:50.400 --> 0:25:54.720
<v Speaker 1>a class action. So explain how that would work our plaintiffs.

0:25:54.800 --> 0:25:57.920
<v Speaker 1>Lawyers in a rush now to be the lead plaintiffinite

0:25:57.920 --> 0:26:03.040
<v Speaker 1>class action. So with class actions, you you're looking at

0:26:03.160 --> 0:26:05.960
<v Speaker 1>exactly for a lead plaintiffs. You need a names plate

0:26:05.960 --> 0:26:09.879
<v Speaker 1>TIFFs as the stars who can bring the claim. And

0:26:09.960 --> 0:26:12.879
<v Speaker 1>once you established that that plaint that has the premissation

0:26:13.000 --> 0:26:17.159
<v Speaker 1>case that they have met the elements that a jury

0:26:17.280 --> 0:26:20.600
<v Speaker 1>or fact finder could find in their favor, then you

0:26:20.680 --> 0:26:23.560
<v Speaker 1>look to see, are there lots of other people who

0:26:23.560 --> 0:26:29.480
<v Speaker 1>are similarly situated to be in UM a position where

0:26:29.520 --> 0:26:33.680
<v Speaker 1>it's efficient to have this trial all held together and

0:26:33.880 --> 0:26:36.640
<v Speaker 1>it makes sense to do so. So yes, I think

0:26:36.680 --> 0:26:40.919
<v Speaker 1>that typically when an event happens that is related to

0:26:40.920 --> 0:26:43.720
<v Speaker 1>a class action, you will find law firms looking for

0:26:44.000 --> 0:26:49.080
<v Speaker 1>those UM those names plaintiffs who would be a strong

0:26:49.240 --> 0:26:53.320
<v Speaker 1>representative for a tutitive class to be certified at a

0:26:53.359 --> 0:26:57.480
<v Speaker 1>later point. So, does this sound like it's a good

0:26:57.520 --> 0:27:01.040
<v Speaker 1>case for a class action and a judge would certify

0:27:01.200 --> 0:27:04.840
<v Speaker 1>these students as a class? I guess it depends how

0:27:04.960 --> 0:27:09.720
<v Speaker 1>broad the class is that UM the pliantists are speaking

0:27:09.760 --> 0:27:15.359
<v Speaker 1>to name here. If you're staying within one institution that

0:27:15.560 --> 0:27:21.280
<v Speaker 1>is eliminating some of the UM dissimilar mist of the

0:27:21.359 --> 0:27:23.920
<v Speaker 1>claims that wouldn't it would be brought by the various

0:27:23.880 --> 0:27:29.320
<v Speaker 1>plantifs um. For certain areas, I think class action could

0:27:29.400 --> 0:27:36.159
<v Speaker 1>be a more natural vehicle to use, such as woman

0:27:36.240 --> 0:27:40.320
<v Speaker 1>board sees. Everybody would be similarly situated with that because

0:27:40.359 --> 0:27:43.680
<v Speaker 1>they would have the same contractual agreement, they would be

0:27:43.800 --> 0:27:48.320
<v Speaker 1>paying the same sees, and they would not be um

0:27:48.400 --> 0:27:53.600
<v Speaker 1>making any differences in that. For some other areas, like tuition,

0:27:54.480 --> 0:27:57.840
<v Speaker 1>perhaps the detriment that has been suffered by each student

0:27:58.200 --> 0:28:01.280
<v Speaker 1>is varied, so there's going to be some more kurdels.

0:28:01.320 --> 0:28:03.800
<v Speaker 1>I think at the class if it gets the class

0:28:03.840 --> 0:28:07.879
<v Speaker 1>certification stage to certify a class on those types of plants.

0:28:08.560 --> 0:28:11.919
<v Speaker 1>So if this is not certified as a class, if

0:28:11.960 --> 0:28:16.399
<v Speaker 1>these are not certified as class actions, will the plaintiffs

0:28:16.480 --> 0:28:21.280
<v Speaker 1>lawyers go away? Because to represent students individually would cost

0:28:21.440 --> 0:28:25.160
<v Speaker 1>so much what would the benefit be to them? That's

0:28:25.160 --> 0:28:29.240
<v Speaker 1>exactly right. One of the big benefits to class actions

0:28:29.680 --> 0:28:36.040
<v Speaker 1>is it allows plaintiffs to bring relatively small claims that

0:28:36.600 --> 0:28:41.560
<v Speaker 1>aren't enough that it would be worthwhile for one plaintiff

0:28:41.640 --> 0:28:46.120
<v Speaker 1>to bring. It's expensive to bring litigation, and so if

0:28:46.160 --> 0:28:50.200
<v Speaker 1>there's only a couple of thousand dollars, you could easily

0:28:50.440 --> 0:28:55.200
<v Speaker 1>spend more in litigation fees than you would recover, and

0:28:55.280 --> 0:28:59.240
<v Speaker 1>in situation like this, we would have certain upper limits

0:28:59.440 --> 0:29:02.520
<v Speaker 1>on the amount that any individual student went to cover.

0:29:03.040 --> 0:29:06.680
<v Speaker 1>This isn't like a court action where someone was negligent

0:29:06.920 --> 0:29:10.080
<v Speaker 1>and you're going for medical expenses or pain and suffering.

0:29:10.840 --> 0:29:14.280
<v Speaker 1>To my noge, nobody was alleging that anyone was negligence

0:29:14.320 --> 0:29:17.880
<v Speaker 1>or did any wrongdoing. Here, um, the Internet was caused

0:29:17.920 --> 0:29:22.200
<v Speaker 1>by a global pandemic. Were argument is contract damages. So

0:29:22.480 --> 0:29:25.280
<v Speaker 1>the maximum amount you could get would be the the amount

0:29:25.440 --> 0:29:29.920
<v Speaker 1>you were benefited or the benefits you lost under that contract,

0:29:30.200 --> 0:29:32.480
<v Speaker 1>because that would be about a quarter of the year,

0:29:33.200 --> 0:29:35.960
<v Speaker 1>and even that it wouldn't be full tuition because you

0:29:36.000 --> 0:29:40.480
<v Speaker 1>are getting a some value of it by getting credits

0:29:40.520 --> 0:29:43.760
<v Speaker 1>and finishing pouse that term not having to take it again.

0:29:44.320 --> 0:29:49.880
<v Speaker 1>So there may be difficulties for an individual plaintiff to

0:29:49.920 --> 0:29:54.959
<v Speaker 1>bring a claim which could support an argument for for

0:29:54.960 --> 0:29:57.640
<v Speaker 1>for pross action. Thanks for being on Bloomberg Lade Joe.

0:29:58.080 --> 0:30:01.560
<v Speaker 1>That's Joe Brennan, a professor from law school, and that's

0:30:01.560 --> 0:30:04.440
<v Speaker 1>it for the edition of Bloomberg Law. I'm June Grosso.

0:30:04.640 --> 0:30:06.680
<v Speaker 1>Thanks for listening and remember to tune in to the

0:30:06.680 --> 0:30:09.880
<v Speaker 1>Bloomberg Law show weeknights at ten pm Eastern from Bloomberg

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<v Speaker 1>Radio