WEBVTT - Alito Refuses to Recuse & NRA Wins Free Speech Case

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<v Speaker 1>This is Bloomberg Law with June Grosso from Bloomberg Radio.

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<v Speaker 2>During the Supreme Court arguments over whether former President Donald

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<v Speaker 2>Trump is immune from criminal charges for illegally trying to

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<v Speaker 2>overturn the results of the twenty twenty election, Justice Samuel

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<v Speaker 2>Alito stood out from the other justices with his repeated

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<v Speaker 2>concerns about opening presidents up to criminal prosecution.

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<v Speaker 1>Today, I understand you to say, well, you know, if

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<v Speaker 1>he makes a mistake, he makes a mistake, he subject

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<v Speaker 1>to the criminal laws just like anybody else. You don't

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<v Speaker 1>think he's in a special, a peculiarly precarious.

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<v Speaker 3>Position, but that the president may be criminally prosecuted by

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<v Speaker 3>a bitter political opponent. Will that not lead us into

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<v Speaker 3>a cycle that destabilizes the functioning of our country as.

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<v Speaker 2>A Democracytional Democrats have asked Aledo to recuse himself from

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<v Speaker 2>that case and another case that could have implications for

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<v Speaker 2>the Trump prosecution, not because of the questioning, but because

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<v Speaker 2>flags flown outside Aledo's homes are associated with the pro

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<v Speaker 2>Trump mob that attacked the capital on January sixth, creating

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<v Speaker 2>an appearance of impropriety for the conservative justice. An upside

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<v Speaker 2>down American flag associated with the Stop the Steel Movement

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<v Speaker 2>was flown outside Aledo's Virginia home, and an Appeal to

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<v Speaker 2>Heaven flag, a symbol of Christian nationalism, was flown outside

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<v Speaker 2>Aledo's beach residence in New Jersey. Similar flags were carried

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<v Speaker 2>by the January sixth rioters, but Alito has flatly refused

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<v Speaker 2>to recuse himself from the cases, blaming his wife for

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<v Speaker 2>the flag flying. What's more, the Chief Justice has said

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<v Speaker 2>he's not getting involved. It's a pattern we've seen before

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<v Speaker 2>with Aledo, who has a history of stirring up political contra.

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<v Speaker 2>Joining me is an expert in constitutional law, David Super,

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<v Speaker 2>a professor at Georgetown Law. Justice Alito says there was

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<v Speaker 2>an upside down flag flying at his house for days,

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<v Speaker 2>and he was not aware of it until it was

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<v Speaker 2>called his attention, and then he tried to get his

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<v Speaker 2>wife to take it down, but she refused for days.

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<v Speaker 2>Does that pass the Laft test?

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<v Speaker 4>Not for me, I don't think for most people. It's

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<v Speaker 4>his house. We are responsible for what's on display in

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<v Speaker 4>our houses, and if it is his house, as co

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<v Speaker 4>owner with her, he has every right to take it down.

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<v Speaker 4>She probably then would have a right to put it

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<v Speaker 4>back up, but he doesn't need her approval to take

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<v Speaker 4>it down as a co owner of the house.

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<v Speaker 2>What was really odd was he went into detail about

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<v Speaker 2>the ownership of the two houses. I just thought that

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<v Speaker 2>that was unnecessary and odd.

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<v Speaker 4>It is he protests a way too much. Which he

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<v Speaker 4>is a co owner of the house under whatever ownership

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<v Speaker 4>arrangement there is, he has the ability to change the

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<v Speaker 4>house and what is displayed on it. And if he couldn't,

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<v Speaker 4>he surely must recognize that reasonable people would feel that

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<v Speaker 4>that casts a question on his impartiality. Most people don't

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<v Speaker 4>understand the intricacies of property ownership. It would assume quite

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<v Speaker 4>reasonably that a flag displayed in front of his house

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<v Speaker 4>tells us what he thinks.

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<v Speaker 2>Initially, he denied the flag was hung upside down as

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<v Speaker 2>a political protest. He said it was flown by his

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<v Speaker 2>wife in response to a neighbour's yard signs that were

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<v Speaker 2>critical of Trump, saying Trump is a fascist, etc. So

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<v Speaker 2>there was a political reason, then tied to the former

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<v Speaker 2>president who was accused of taking part in a coup attempt,

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<v Speaker 2>you know, days earlier to the flying of the flag.

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<v Speaker 4>Yes, that's obviously political. What you or I think about

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<v Speaker 4>the president United States or a former president is inevitably political,

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<v Speaker 4>and it's political relating to cases that he was deciding.

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<v Speaker 2>As far as the Appeal to Heaven flag flown outside

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<v Speaker 2>his beach residence in New Jersey, he said he wasn't

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<v Speaker 2>familiar with the flag's meaning. I was not aware of

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<v Speaker 2>any connection between the historic flag and the Stop the

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<v Speaker 2>Steel movement, and neither was my wife. So he's just

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<v Speaker 2>feigning ignorance.

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<v Speaker 4>This is a very smart justice, a very learned justice,

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<v Speaker 4>a very well read justice, and a justice who, in

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<v Speaker 4>his opinions, in his interventions in oral argument, shows a

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<v Speaker 4>great deal of knowledge about a great many things. I

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<v Speaker 4>don't know what he does or does not know, but

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<v Speaker 4>I know a reasonable person would assume that he knows

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<v Speaker 4>what that means, and would assume that that indicates a

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<v Speaker 4>pre commitment. In cases involving January sixth, he cited.

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<v Speaker 2>The recently adopted Code of conduct by this Court. A

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<v Speaker 2>justice should disqualify himself for herself in a proceeding in

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<v Speaker 2>which the justice's impartiality might reasonably be questioned. That is,

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<v Speaker 2>we're an unbiased and reasonable person who's aware of all

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<v Speaker 2>relevant circumstances would doubt that the Justice could fairly discharge

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<v Speaker 2>his or her duties, and he said that these two

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<v Speaker 2>incidents of flag flying don't meet the conditions for recusal.

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<v Speaker 2>But we have people, lawmakers and others saying that this

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<v Speaker 2>puts his impartiality in question. So it seems like it

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<v Speaker 2>does satisfy it.

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<v Speaker 4>Oh, it certainly satisfies it. This is something that, if

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<v Speaker 4>the shoes were on the other foot, would be subject

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<v Speaker 4>to enormous outrage. Much more tangential indications of commitment have

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<v Speaker 4>been cited by former President Trump and many others as

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<v Speaker 4>signs of bias, And indeed, a liberal Supreme Court Justice A.

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<v Speaker 4>Ford Us was put off the court in significant part

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<v Speaker 4>because of perceptions of bias in favor of the Johnson

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<v Speaker 4>administration that were much weaker than this.

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<v Speaker 2>What does it say about that ethics code that the

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<v Speaker 2>Justice is adopted last year, which they get to enforce themselves.

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<v Speaker 2>I mean, is it worth the paper it was printed on?

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<v Speaker 4>No, it's completely worthless. The lack of independent and forcibility

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<v Speaker 4>or even independent fact finding makes it worthless right there.

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<v Speaker 4>But then when you look deeper, the substance of it

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<v Speaker 4>is completely flimsy. It is for the sake of quieting

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<v Speaker 4>public outrage, not for actually improving the ethical standards of

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<v Speaker 4>the court.

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<v Speaker 2>Is it rare for justices to get into this back

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<v Speaker 2>and forth with lawmakers, you know, writing letters responding to them.

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<v Speaker 2>I mean, does it show that Alito might be concerned

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<v Speaker 2>about public reaction for once to.

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<v Speaker 4>Some extent, yes, Justice Alito has been more willing to

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<v Speaker 4>engage in the popular media than most Supreme Court justices

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<v Speaker 4>of the modern era have been. And this it's consistent

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<v Speaker 4>with those tendencies.

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<v Speaker 2>So Senator Dick Durbin, the chair of the Judiciary Committee,

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<v Speaker 2>and Senator Sheldon Whitehouse wrote a letter to the Chief

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<v Speaker 2>Justice Roberts asking him to make certain that Alito recuses

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<v Speaker 2>himself in any case is related to the twenty twenty

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<v Speaker 2>presidential election in the January sixth attack on the Capitol,

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<v Speaker 2>and they also requested a meeting with Roberts as soon

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<v Speaker 2>as possible, and Roberts refused on both counts. He refused

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<v Speaker 2>to meet with the senators, saying, apart from ceremonial events,

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<v Speaker 2>only on rare occasions in our nation's history has a

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<v Speaker 2>sitting chief justice met with legislators, and he refused to

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<v Speaker 2>get involved in the request for Alito to recuse it all,

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<v Speaker 2>saying members of the Supreme Court recently reaffirmed the practice

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<v Speaker 2>we have followed for two hundred and thirty five years

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<v Speaker 2>pursue into which individual justices decide recusal issue chose. This

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<v Speaker 2>is the second time in less than a year that

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<v Speaker 2>there have been ethical controversies surrounding Justice Alito. Isn't it

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<v Speaker 2>time for Roberts to get involved?

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<v Speaker 4>He certainly could step in. The Other justices on occasions

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<v Speaker 4>in the past, have chosen to prevent justices who they

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<v Speaker 4>thought were impaired from participating in decisions. There are seven

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<v Speaker 4>justices that do not have these questions about them, and

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<v Speaker 4>they could simply decide that they will not hand down

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<v Speaker 4>any decisions in which Justice Alito's vote is decisive, or

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<v Speaker 4>if they are similarly concerned with the ethical questions about

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<v Speaker 4>Justice Thomas in which either of their votes are decided.

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<v Speaker 4>If they do that, they still have a solid conservative majority,

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<v Speaker 4>and the outcomes of cases might well not change, but

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<v Speaker 4>the public confidence certainly would be much higher.

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<v Speaker 2>Democratic Senator Richard Blumenthal has also suggested that the Chief

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<v Speaker 2>Chief Justice should just refuse to assign opinions to Alito

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<v Speaker 2>and Thomas.

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<v Speaker 4>That's completely within the Chief justices authority, but I'm not

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<v Speaker 4>sure what that accomplishes. Justices on the Supreme Court to

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<v Speaker 4>exercise much of their power through their votes, and unless

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<v Speaker 4>the individual justice refuses themselves or the other justices refuse

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<v Speaker 4>to allow that justice's vote to be decisive, then the

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<v Speaker 4>compromise justice will still be able to participate and still

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<v Speaker 4>have great power.

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<v Speaker 2>Senator Durbin said he's not going to hold any hearings

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<v Speaker 2>on this or do anything further. But unless Congress does

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<v Speaker 2>something further, this is going to continue, isn't it? With

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<v Speaker 2>justices not recusing themselves when it seems apparent they should.

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<v Speaker 2>Another example is Justice Clarence Thomas taking part in January

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<v Speaker 2>sixth case is when his wife had some involvement there.

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<v Speaker 2>I mean, there seems to be no way to force

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<v Speaker 2>ethical obligations on these justices when they're deciding for themselves,

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<v Speaker 2>and no one is overlooking that.

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<v Speaker 5>Well.

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<v Speaker 4>There are several people that could impose us f coal

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<v Speaker 4>obligations on them, but none are willing. The Justice themselves

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<v Speaker 4>could do so. There's ample precedent of not engaging in

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<v Speaker 4>over political activity when you're sitting on the court and

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<v Speaker 4>not taking valuable gifts from parties with interests in front

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<v Speaker 4>of the court so that justice could do it themselves.

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<v Speaker 4>The others have injustices could do it for them by

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<v Speaker 4>refusing to allow those two to cast siding votes in

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<v Speaker 4>cases where they're compromised. Congress could do it by passing legislation.

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<v Speaker 4>The Constitution says that the Supreme Court's jurisdiction is subject

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<v Speaker 4>to any exceptions Congress wishes to make, and Congress could

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<v Speaker 4>simply say that the Court has no jurisdiction in cases

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<v Speaker 4>in which justices are compromised, and Congress could impeach and

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<v Speaker 4>remove one or more justices. The fact is that Congress

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<v Speaker 4>isn't going to do that because the voters have not

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<v Speaker 4>demanded that Congress do that and have not insisted that

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<v Speaker 4>their representatives in Congress be willing to hold the Court

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<v Speaker 4>to a higher standard.

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<v Speaker 2>Reading Alito's letter, it just seemed to me that he's

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<v Speaker 2>just not self aware. He may be smart, he may

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<v Speaker 2>be brilliant, even but he's not self aware. He writes

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<v Speaker 2>this about his wife. She makes her own decisions, and

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<v Speaker 2>I have always respected her right to do so, And

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<v Speaker 2>it seems so ironic to me, considering his decision to

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<v Speaker 2>take away every woman's right to choose to decide what

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<v Speaker 2>to do with her own body.

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<v Speaker 4>Well, it is, and the notion of hiding behind one's

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<v Speaker 4>wife to excuse one's conduct is one that unfortunately, men

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<v Speaker 4>have used throughout the years, not to empower women, but

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<v Speaker 4>to exploit them. And in that sense this fits with

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<v Speaker 4>the pattern. It's also striking that he expresses such ambivalence

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<v Speaker 4>about what these flags mean when quite recently he wrote

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<v Speaker 4>a concurring opinion in a case about flying flags in

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<v Speaker 4>Boston City Hall in which he said flags are very important.

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<v Speaker 2>And in this one he said, my wife likes flying flags.

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<v Speaker 4>I don't, which suggests that flags are not very important.

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<v Speaker 4>So which is it?

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<v Speaker 6>Justice?

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<v Speaker 2>You want to have it both ways, I guess Congressman

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<v Speaker 2>Jamie Raskin saying that you know, the Justice Department can

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<v Speaker 2>do something if it wants to.

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<v Speaker 4>What is he referring to, Well, there is a statute

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<v Speaker 4>part of the Judiciary Act that requires justices to recuse

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<v Speaker 4>themselves if a reasonable person could regard them as being

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<v Speaker 4>biased particular case, and that requires them to refuse themselves

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<v Speaker 4>if they have or their spouses have certain kinds of

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<v Speaker 4>connections with the parties or the interests or the outcome

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<v Speaker 4>in the case. This statute pretty clearly is implicated by

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<v Speaker 4>Justice Alito's flag flying and by some of the valuable

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<v Speaker 4>gifts that he and Justice Thomas have received by parties

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<v Speaker 4>with interest in front of the court. This statute does

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<v Speaker 4>not require anyone to file any emotions. Historically, as Justice

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<v Speaker 4>Roberts says, individual judges and justices have taken upon themselves

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<v Speaker 4>to recuse themselves. But the Justice Department, as a party

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<v Speaker 4>to these cases, is certainly able to file emotion for

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<v Speaker 4>the refusal of these justices.

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<v Speaker 2>But unlikely too, because of the repercussions.

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<v Speaker 4>Very unlikely too. It would be refusal in just a

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<v Speaker 4>few cases, and the Justice Department appears in front of

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<v Speaker 4>the Court on dozens of cases every year and would

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<v Speaker 4>not want to alienate two of the nine justices for

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<v Speaker 4>all of those other cases by pressed seeing a recusal

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<v Speaker 4>in this one. And in fact, the likelihood that either

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<v Speaker 4>justice would recuse themselves when they've so far refused to

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<v Speaker 4>do so is infinitesimal.

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<v Speaker 2>During the oral arguments on the presidential immunity case, some

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<v Speaker 2>of Justice Alito's comments were supportive of presidential immunity. In

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<v Speaker 2>first of all, they've delayed this so long and then

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<v Speaker 2>decided to take it and then did it on the

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<v Speaker 2>last day of the session, and now probably there won't

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<v Speaker 2>be a decision until the end of June. I mean,

0:14:44.880 --> 0:14:47.240
<v Speaker 2>how do you think the public will receive it if

0:14:47.440 --> 0:14:51.040
<v Speaker 2>it's again a six to three vote down ideological lines.

0:14:51.560 --> 0:14:51.720
<v Speaker 5>Oh.

0:14:51.760 --> 0:14:55.520
<v Speaker 4>I think the public will be quite troubled because the

0:14:55.560 --> 0:14:58.680
<v Speaker 4>Supreme Court has shown on numerous occasions its ability to

0:14:58.720 --> 0:15:02.360
<v Speaker 4>move very very sat when important issues are at stake.

0:15:02.720 --> 0:15:09.360
<v Speaker 4>They took cases involving the restrictions under the pandemic very quickly.

0:15:09.960 --> 0:15:15.200
<v Speaker 4>They've engaged very quickly in challenges to things that President

0:15:15.240 --> 0:15:18.480
<v Speaker 4>Trump did about immigration about Muslims. They can move fast

0:15:18.480 --> 0:15:21.280
<v Speaker 4>if they want to. Their choice to move slowly, and

0:15:21.360 --> 0:15:26.120
<v Speaker 4>particularly if the final decision is one that requires a

0:15:26.200 --> 0:15:30.080
<v Speaker 4>remand and lengthy proceedings below which everybody knows will then

0:15:30.160 --> 0:15:34.000
<v Speaker 4>get further appealed. I think a great many voters will

0:15:34.040 --> 0:15:36.640
<v Speaker 4>believe that the majority the Court is running out the

0:15:36.680 --> 0:15:40.400
<v Speaker 4>clock for the President to allow him to avoid going

0:15:40.440 --> 0:15:41.640
<v Speaker 4>to trial before the election.

0:15:42.360 --> 0:15:46.800
<v Speaker 2>Thanks so much, David Best. Professor David Super of Georgetown Law.

0:15:47.160 --> 0:15:50.400
<v Speaker 2>In a unanimous decision, the Supreme Court cleared the way

0:15:50.520 --> 0:15:54.400
<v Speaker 2>for an NRA lawsuit against a former New York state official,

0:15:54.800 --> 0:16:00.000
<v Speaker 2>overclaimed she unconstitutionally pressured companies to blacklist the gun law

0:16:00.160 --> 0:16:04.440
<v Speaker 2>be Following the deadly twenty eighteen school shooting in Parkland, Florida,

0:16:05.120 --> 0:16:09.120
<v Speaker 2>Justice Sonya Sotomayor wrote that the critical takeaway is that

0:16:09.240 --> 0:16:13.720
<v Speaker 2>the First Amendment prohibits government officials from wielding their power

0:16:13.840 --> 0:16:18.200
<v Speaker 2>selectively to punish or suppress speech. Joining me his First

0:16:18.240 --> 0:16:22.160
<v Speaker 2>Amendment expert Eugene Volik, a professor at UCLA Law School.

0:16:22.600 --> 0:16:25.400
<v Speaker 2>He was counsel of record to the NRA before the

0:16:25.440 --> 0:16:29.080
<v Speaker 2>Supreme Court. Eugene, what many people may see as unusual

0:16:29.160 --> 0:16:32.960
<v Speaker 2>here is that a lawyer for the ACLU argued the

0:16:33.040 --> 0:16:36.200
<v Speaker 2>case for the NRA before the Supreme Court.

0:16:36.520 --> 0:16:40.480
<v Speaker 7>David Cole was a very experienced from court advocate. More importantly,

0:16:40.560 --> 0:16:44.280
<v Speaker 7>I think what was really helpful is that there were

0:16:44.360 --> 0:16:48.280
<v Speaker 7>the NRA and the ACLU before the Court together. I

0:16:48.280 --> 0:16:51.520
<v Speaker 7>think that sends an important message about the significance of

0:16:51.520 --> 0:16:54.720
<v Speaker 7>the case and about the breadth of the First Amendment issue.

0:16:54.960 --> 0:16:57.920
<v Speaker 2>Start by telling us, know what you think the significance

0:16:57.960 --> 0:16:58.760
<v Speaker 2>of this case is.

0:16:59.400 --> 0:17:03.640
<v Speaker 7>So let's say the government falls up, some intermediary maybe

0:17:03.640 --> 0:17:06.520
<v Speaker 7>calls up a bookstore or calls up a billboard owner

0:17:06.880 --> 0:17:09.320
<v Speaker 7>or calls up an insurance company and says, you know,

0:17:09.840 --> 0:17:14.080
<v Speaker 7>we think that the advocacy groups you're dealing with, or

0:17:14.119 --> 0:17:17.560
<v Speaker 7>the books that you're distributing, or the group that is

0:17:17.640 --> 0:17:20.520
<v Speaker 7>buying space on your billboard, we think that its messages

0:17:20.560 --> 0:17:24.359
<v Speaker 7>are bad messages. We think they're bad for society in

0:17:24.440 --> 0:17:28.720
<v Speaker 7>various ways, and we'd like you to stop doing that.

0:17:29.080 --> 0:17:31.840
<v Speaker 7>And what's more, we have power over you. We could

0:17:31.960 --> 0:17:35.360
<v Speaker 7>be the police department, or the Justice Department, or financial

0:17:35.400 --> 0:17:39.399
<v Speaker 7>regulatory thought that could have a profoundly coercive effect on

0:17:39.440 --> 0:17:43.919
<v Speaker 7>these intermediaries that even without actual prosecution or a civil

0:17:44.040 --> 0:17:47.639
<v Speaker 7>case against the actual speaker, these kinds of threats to

0:17:47.720 --> 0:17:51.520
<v Speaker 7>intermediaries can do a lot to make it harder for

0:17:51.600 --> 0:17:54.639
<v Speaker 7>the speakers to speak because they won't be able to

0:17:54.720 --> 0:17:57.840
<v Speaker 7>distribute their books through certain bookstores, or they won't have

0:17:57.960 --> 0:18:00.960
<v Speaker 7>financial services that they need in order to So the

0:18:01.080 --> 0:18:04.840
<v Speaker 7>NRA alleged that that's what the New York Department of

0:18:04.880 --> 0:18:10.679
<v Speaker 7>Financial Services did, that it pressured various financial companies insurance companies, banks,

0:18:10.680 --> 0:18:13.960
<v Speaker 7>and the like to stop doing business with the NRA

0:18:14.160 --> 0:18:16.439
<v Speaker 7>and thus make it farther for the NRA to engage

0:18:16.480 --> 0:18:19.000
<v Speaker 7>in its advocacy. But of course this isn't a second

0:18:19.040 --> 0:18:21.760
<v Speaker 7>amendent case. It's a first Amendment case. It applies to everybody.

0:18:21.800 --> 0:18:23.800
<v Speaker 7>It could equally be some other state try to do

0:18:23.840 --> 0:18:26.760
<v Speaker 7>the same to plant Parenthoot, or some state trying to

0:18:26.800 --> 0:18:30.280
<v Speaker 7>do the same to a Propoalestinian organization or a pro

0:18:30.359 --> 0:18:34.000
<v Speaker 7>Israeli organization. So this is a broad first Amendment question

0:18:34.359 --> 0:18:37.880
<v Speaker 7>that the courts dealt with and unanimously resolved in favor

0:18:37.960 --> 0:18:40.600
<v Speaker 7>of the speakers and said, look, if it can be

0:18:40.680 --> 0:18:43.480
<v Speaker 7>shown that the government was engaging in such coersion. At

0:18:43.520 --> 0:18:46.000
<v Speaker 7>this point, it's just alleged. This is just an emotion

0:18:46.119 --> 0:18:49.560
<v Speaker 7>to dismiss. So nothing has improved yet. But if it

0:18:49.640 --> 0:18:53.040
<v Speaker 7>could be shown in court that the government was pressuring

0:18:53.119 --> 0:18:57.360
<v Speaker 7>intermediaries to stop doing business with organizations because of those

0:18:57.440 --> 0:19:01.680
<v Speaker 7>organization speech, that would be potentially a first to women violation.

0:19:02.040 --> 0:19:05.080
<v Speaker 7>That's an important holding. It reaffirms a principle that was

0:19:05.119 --> 0:19:07.880
<v Speaker 7>first announced by the court more than sixty years ago.

0:19:08.440 --> 0:19:11.040
<v Speaker 7>But it's an important principle that's worth reaffirming.

0:19:11.080 --> 0:19:15.080
<v Speaker 2>I think, so Eugene, was this case an easy one

0:19:15.119 --> 0:19:17.080
<v Speaker 2>for the justices to decide.

0:19:16.680 --> 0:19:20.240
<v Speaker 7>Then well, they were unanimous. There were concurrences from Justice

0:19:20.280 --> 0:19:23.800
<v Speaker 7>Gorsic and from Justice Jackson, but both of them joined

0:19:23.920 --> 0:19:26.240
<v Speaker 7>all the other justices, So I think at that level

0:19:26.240 --> 0:19:29.879
<v Speaker 7>it probably seemed pretty straightforward for the court. This having

0:19:29.880 --> 0:19:33.040
<v Speaker 7>been said, you know, the Second Circuit ruled the other way,

0:19:33.480 --> 0:19:35.760
<v Speaker 7>ruled against the NRA in this case and said, on

0:19:35.800 --> 0:19:40.159
<v Speaker 7>these facts, there's not enough allegation of coercion. So you know,

0:19:40.800 --> 0:19:43.680
<v Speaker 7>I like to think, I mean, I'm representing the NRA here,

0:19:44.560 --> 0:19:47.080
<v Speaker 7>I'm obviously not an impartial party here. I like to

0:19:47.080 --> 0:19:49.320
<v Speaker 7>think we have a very strong case, and the US

0:19:49.359 --> 0:19:51.560
<v Speaker 7>Supreme Court agreed with us. But at the same time,

0:19:51.680 --> 0:19:55.000
<v Speaker 7>this was something that lower courts, you know, had struggled

0:19:55.040 --> 0:19:57.520
<v Speaker 7>with in various kinds of cases, and I think this

0:19:57.680 --> 0:20:01.159
<v Speaker 7>is something that the Supreme Courts unanimous decision here is

0:20:01.240 --> 0:20:02.280
<v Speaker 7>going to provide more.

0:20:02.119 --> 0:20:05.800
<v Speaker 2>Guidance for lower What was the argument at the Supreme

0:20:05.880 --> 0:20:10.359
<v Speaker 2>Court of Maria Vulo, the New York state official who

0:20:10.520 --> 0:20:14.720
<v Speaker 2>was the former superintendent of the Department of Financial Services.

0:20:15.119 --> 0:20:17.320
<v Speaker 7>First of all, there were, as usual in these kinds

0:20:17.320 --> 0:20:21.440
<v Speaker 7>of cases, there is or usual various procedural arguments. The

0:20:21.560 --> 0:20:24.720
<v Speaker 7>lawyer's cruse superpower is that we can turn any question

0:20:24.800 --> 0:20:27.919
<v Speaker 7>into a question about procedures. The Supreme Court was not

0:20:28.000 --> 0:20:31.240
<v Speaker 7>impressed by their procedural arguments for various reasons. I won't

0:20:31.240 --> 0:20:33.720
<v Speaker 7>detain you further with them. I don't think your listeners

0:20:33.720 --> 0:20:36.199
<v Speaker 7>are going to be terribly interested. But a lot of

0:20:36.200 --> 0:20:39.639
<v Speaker 7>the argument was about this procedural bush substantively. One of

0:20:39.680 --> 0:20:42.480
<v Speaker 7>the things that New York said is, look, we're entitled

0:20:42.520 --> 0:20:45.560
<v Speaker 7>to speak out. We as the government, We're entitled to say, oh,

0:20:45.640 --> 0:20:49.040
<v Speaker 7>the NRA is bad, gun control is good. And the

0:20:49.080 --> 0:20:51.960
<v Speaker 7>Supreme Court agreed, and we agreed. Of course, the government

0:20:52.000 --> 0:20:54.880
<v Speaker 7>is entitled to express its views. But the Court said,

0:20:55.080 --> 0:20:58.240
<v Speaker 7>what was going on here, at least as alleged by

0:20:58.280 --> 0:21:03.120
<v Speaker 7>the NRA, was not just the government's self expression. It

0:21:03.200 --> 0:21:06.359
<v Speaker 7>was rather the government saying things in a way that

0:21:07.119 --> 0:21:11.480
<v Speaker 7>might be seen as coercive to a reasonable financial intermediate.

0:21:12.080 --> 0:21:14.879
<v Speaker 7>And once the government stops just trying to persuade and

0:21:14.960 --> 0:21:18.639
<v Speaker 7>begins kind of pressure that could be coercive, well that's

0:21:18.680 --> 0:21:22.480
<v Speaker 7>where the government's right to speak stops, and the NRAs

0:21:22.480 --> 0:21:25.080
<v Speaker 7>and other such groups for First Amendment right to start.

0:21:25.400 --> 0:21:27.359
<v Speaker 7>Another thing that the New York argued is that the

0:21:27.480 --> 0:21:31.720
<v Speaker 7>NRA had participated in various insurance transactions that were illegal

0:21:31.840 --> 0:21:35.760
<v Speaker 7>under New York insurance law, and for the purposes of

0:21:35.800 --> 0:21:38.439
<v Speaker 7>this case, the Supreme Courts was willing to assume that

0:21:38.520 --> 0:21:41.760
<v Speaker 7>this was so. But the Court said it doesn't matter. Obviously,

0:21:41.800 --> 0:21:45.320
<v Speaker 7>if the NRA had violated some rules, then those rules

0:21:45.359 --> 0:21:47.800
<v Speaker 7>could be enforced against the NRA and could be punished

0:21:47.840 --> 0:21:51.080
<v Speaker 7>in various ways, could find and such. But what the

0:21:51.400 --> 0:21:53.320
<v Speaker 7>New York government was trying to do is not just

0:21:53.359 --> 0:21:57.240
<v Speaker 7>imposifying on the NRA for past contact, but was trying

0:21:57.280 --> 0:22:02.280
<v Speaker 7>to pressure, at least as alleged to pressure financial intermediaries

0:22:02.800 --> 0:22:05.240
<v Speaker 7>to stop doing business with the enteray in the future

0:22:05.280 --> 0:22:10.320
<v Speaker 7>as well, including for perfectly legal transactions. So the Court acknowledged,

0:22:10.359 --> 0:22:13.680
<v Speaker 7>of course, the government has the power to speak. Of course,

0:22:13.720 --> 0:22:17.680
<v Speaker 7>the government has the power to enforce neutral conduct restrictions,

0:22:17.680 --> 0:22:21.640
<v Speaker 7>such as restrictions on certain kinds of insurance practices. What

0:22:21.680 --> 0:22:25.080
<v Speaker 7>the government can't do is try to use those powers

0:22:25.280 --> 0:22:28.280
<v Speaker 7>as a means of trying to punish or deter or

0:22:28.320 --> 0:22:30.960
<v Speaker 7>otherwise interfere with constitutionally protected speech.

0:22:32.000 --> 0:22:36.080
<v Speaker 2>Did you and the ACLU take this case in order

0:22:36.160 --> 0:22:42.639
<v Speaker 2>to support the broad principle of free speech for all organizations,

0:22:42.680 --> 0:22:46.639
<v Speaker 2>no matter what they represent this is going back to

0:22:46.680 --> 0:22:51.000
<v Speaker 2>the lower courts. But there's a qualified immunity argument that

0:22:51.040 --> 0:22:55.960
<v Speaker 2>the Supreme Court didn't discuss. Could that actually stop the

0:22:56.000 --> 0:22:57.160
<v Speaker 2>case from going forward?

0:22:57.800 --> 0:23:01.240
<v Speaker 7>Well, so there's a qualified immunity argument here which says

0:23:01.280 --> 0:23:03.560
<v Speaker 7>that in any case, Ania shouldn't be able to get

0:23:03.680 --> 0:23:06.880
<v Speaker 7>damages because the law wasn't clearly settled. The Supreme Court

0:23:06.880 --> 0:23:09.400
<v Speaker 7>didn't reach that. It said, look, we've resolved the substance

0:23:09.400 --> 0:23:11.600
<v Speaker 7>of First Amendment argument. We're going to leave it to

0:23:11.640 --> 0:23:15.640
<v Speaker 7>lower courts deal further with any qualified immunity claims. They're

0:23:15.640 --> 0:23:18.960
<v Speaker 7>also injunctive claims that in this case that wouldn't be

0:23:19.000 --> 0:23:21.040
<v Speaker 7>subject to qualified immunity in any event.

0:23:20.840 --> 0:23:25.120
<v Speaker 2>Of the like the Court is considering similar issues in

0:23:25.160 --> 0:23:30.320
<v Speaker 2>a fight over the Biden administration's communications with social media companies.

0:23:30.520 --> 0:23:34.360
<v Speaker 2>Does this decision at all indicate how that case might

0:23:34.400 --> 0:23:35.080
<v Speaker 2>be decided.

0:23:35.760 --> 0:23:37.879
<v Speaker 7>It does not speak to that case. This is the

0:23:37.960 --> 0:23:40.760
<v Speaker 7>mercy the Missouri case, and I think the Court bard

0:23:40.840 --> 0:23:45.120
<v Speaker 7>deliberately didn't dip its hand. It tries not to disclose

0:23:45.480 --> 0:23:47.520
<v Speaker 7>upfront what it's going to be deciding, even in a

0:23:47.560 --> 0:23:52.159
<v Speaker 7>couple of weeks. This case involved a pretty straightforward application.

0:23:52.320 --> 0:23:54.679
<v Speaker 7>This principle set forth over sixty years ago. In this

0:23:54.720 --> 0:23:57.480
<v Speaker 7>case called Bantam Books be solid. It involved a claim

0:23:57.680 --> 0:24:01.520
<v Speaker 7>that the government was coercing inter dearies to stop doing

0:24:01.560 --> 0:24:04.800
<v Speaker 7>business with speakers. And the real question was was there

0:24:04.920 --> 0:24:08.879
<v Speaker 7>enough alleged to find that kind of courson in mercy?

0:24:08.960 --> 0:24:12.240
<v Speaker 7>The facts are very different, So there's a separate question

0:24:12.320 --> 0:24:15.879
<v Speaker 7>there was enough alleged there to show that there was

0:24:16.040 --> 0:24:19.800
<v Speaker 7>coersion by the government of social media platforms, And the

0:24:19.880 --> 0:24:22.240
<v Speaker 7>court may very well say in that case, yes there

0:24:22.320 --> 0:24:25.760
<v Speaker 7>was or there wasn't. But the decision in this case

0:24:26.400 --> 0:24:29.680
<v Speaker 7>likely wouldn't affect much but what it decided there. Likewise,

0:24:29.720 --> 0:24:32.720
<v Speaker 7>in the Mirthy case, there's also a separate question, which is,

0:24:32.800 --> 0:24:36.720
<v Speaker 7>even if there's no coercion, was there enough entanglement between

0:24:37.400 --> 0:24:41.160
<v Speaker 7>the government and the social media platforms that even kind

0:24:41.160 --> 0:24:45.480
<v Speaker 7>of non coercive requests were on constitution non coursive request

0:24:45.520 --> 0:24:48.720
<v Speaker 7>that platforms removed certain material that was not an issue

0:24:48.720 --> 0:24:49.240
<v Speaker 7>that was pressing.

0:24:49.800 --> 0:24:52.800
<v Speaker 2>I mean, the Roberts Court has been, would you say,

0:24:52.920 --> 0:24:56.200
<v Speaker 2>very receptive to First Amendment claims.

0:24:56.640 --> 0:25:00.560
<v Speaker 7>Well, so there are different kinds of First and claims,

0:25:00.560 --> 0:25:02.480
<v Speaker 7>and even if we focus just on free speech claims,

0:25:02.480 --> 0:25:05.040
<v Speaker 7>there different kinds of free speech claims. There are different

0:25:05.160 --> 0:25:08.480
<v Speaker 7>legal theories involved in them, some of them involved, for example,

0:25:08.600 --> 0:25:10.639
<v Speaker 7>claims there was a case last year having to do

0:25:10.720 --> 0:25:15.920
<v Speaker 7>with alleged solicitation of criminal conduct. Well, no, Robert score

0:25:16.000 --> 0:25:18.880
<v Speaker 7>isn't very friendly to claims that someone has a First

0:25:18.920 --> 0:25:22.040
<v Speaker 7>Amendment right to urge people to commit certain kinds of

0:25:22.119 --> 0:25:25.640
<v Speaker 7>very specific crime, whereas here it's a very different kind

0:25:25.680 --> 0:25:28.879
<v Speaker 7>of first amenation. Likewise, a lot turns on the facts.

0:25:29.040 --> 0:25:31.200
<v Speaker 7>I think that the facts in this case, again as

0:25:31.240 --> 0:25:35.320
<v Speaker 7>alleged by the plaintiffs, were really quite strong under existing

0:25:35.359 --> 0:25:38.040
<v Speaker 7>well settled precedent president going back of course to the

0:25:38.040 --> 0:25:42.360
<v Speaker 7>Warren Court right nineteen sixty three. So I don't think

0:25:42.400 --> 0:25:44.960
<v Speaker 7>this has to do much with whether the Robert scord

0:25:45.040 --> 0:25:47.960
<v Speaker 7>is particularly free speech friendly or not. And again you

0:25:48.040 --> 0:25:50.399
<v Speaker 7>see here both the liberals on the Court and the

0:25:50.400 --> 0:25:53.320
<v Speaker 7>conservatives of the Court reaching the same view. I think,

0:25:53.480 --> 0:25:57.600
<v Speaker 7>just on the well settled legal doctrine in this case,

0:25:58.040 --> 0:26:02.520
<v Speaker 7>without any real need to dive further elaborated further, I

0:26:02.560 --> 0:26:05.240
<v Speaker 7>think the NA has a very strong claim and that's

0:26:05.240 --> 0:26:06.480
<v Speaker 7>what Supreme Court concludes.

0:26:07.080 --> 0:26:08.760
<v Speaker 2>So he's a pleasure to have you on Eugene and

0:26:08.800 --> 0:26:13.760
<v Speaker 2>congratulations on the Supreme Court win. That's Professor Eugene Vollik

0:26:13.880 --> 0:26:17.200
<v Speaker 2>of UCLA Law School coming up next on the Bloomberg

0:26:17.280 --> 0:26:21.400
<v Speaker 2>Lawn Show. In another unanimous decision, the Court gave homeowners

0:26:21.480 --> 0:26:25.280
<v Speaker 2>another chance in an ESCRO dispute with the Bank of America.

0:26:25.760 --> 0:26:29.960
<v Speaker 2>I'm June Grosso and you're listening to Bloomberg. In a

0:26:30.080 --> 0:26:34.800
<v Speaker 2>unanimous decision on Thursday, the Supreme Court basically punted on

0:26:34.880 --> 0:26:38.480
<v Speaker 2>the question of whether the Bank of America must pay

0:26:38.640 --> 0:26:42.960
<v Speaker 2>interest on New York mortgage borrowers' ESCRO accounts, which state

0:26:43.040 --> 0:26:47.200
<v Speaker 2>law requires, but the Court did give homeowners another chance

0:26:47.280 --> 0:26:50.320
<v Speaker 2>to force that bank and other large banks to pay

0:26:50.359 --> 0:26:54.080
<v Speaker 2>that interest. The Court threw out the Second Circuits ruling

0:26:54.160 --> 0:26:56.760
<v Speaker 2>in favor of the bank, which has refused to pay

0:26:56.880 --> 0:27:00.280
<v Speaker 2>interest on the money it collects to pay borrowers, insuranceants,

0:27:00.280 --> 0:27:03.920
<v Speaker 2>and property tax bills. Bank of America and the Office

0:27:03.920 --> 0:27:07.680
<v Speaker 2>of the Controller of the Currency, the federal regulator overseeing

0:27:07.760 --> 0:27:11.680
<v Speaker 2>national banks, had argued that national banks are exempt from

0:27:11.760 --> 0:27:15.639
<v Speaker 2>state consumer protection laws under the National Bank Act, but

0:27:15.720 --> 0:27:19.480
<v Speaker 2>the Justice Department was on the opposite side of the argument,

0:27:20.000 --> 0:27:24.359
<v Speaker 2>supporting the homeowner's position. Something Justice is Neil Gorsich and

0:27:24.400 --> 0:27:30.440
<v Speaker 2>Brett Kavanaugh pointed to when questioning Deputy Solicitor General Malcolm Stewart.

0:27:30.440 --> 0:27:33.480
<v Speaker 5>In fact, we have exactly the regulation you say, if

0:27:33.520 --> 0:27:35.040
<v Speaker 5>they did this, they did it.

0:27:35.480 --> 0:27:36.199
<v Speaker 6>They said there are no.

0:27:36.359 --> 0:27:40.240
<v Speaker 3>ESCRO regulations, they're permissible, understated, they're all preempted.

0:27:40.760 --> 0:27:42.639
<v Speaker 7>But you're not defending that regulation.

0:27:42.760 --> 0:27:43.760
<v Speaker 6>You're disavowing it.

0:27:43.840 --> 0:27:45.679
<v Speaker 7>You flipped flopped positions on it.

0:27:45.720 --> 0:27:48.200
<v Speaker 5>And I'm asking, is the OCC ever going to get

0:27:48.200 --> 0:27:51.400
<v Speaker 5>around to doing that which God Frank directs it to do? Well,

0:27:51.960 --> 0:27:55.320
<v Speaker 5>I think I would say God Frank authorizes, but doesn't

0:27:55.320 --> 0:27:58.600
<v Speaker 5>direct it to do this. Now, if the petitioner's position

0:27:58.800 --> 0:28:02.760
<v Speaker 5>in this case veils, and if the court holds that

0:28:02.880 --> 0:28:07.320
<v Speaker 5>some inquiry into practical impacts is necessary with respect to

0:28:07.359 --> 0:28:10.480
<v Speaker 5>the individual state law, then it's very possible that the

0:28:10.560 --> 0:28:14.439
<v Speaker 5>OCC will start making these case by case determinations, because,

0:28:14.720 --> 0:28:18.720
<v Speaker 5>independent of legal expertise, the OCC has expertise in the

0:28:18.720 --> 0:28:22.199
<v Speaker 5>way that national banks operate and can bring that expertise

0:28:22.240 --> 0:28:25.800
<v Speaker 5>to bear in determining. If it has expertise, why are.

0:28:25.640 --> 0:28:28.120
<v Speaker 4>You disagreeing with its long standing position?

0:28:28.359 --> 0:28:31.600
<v Speaker 5>I think the two or three reasons.

0:28:31.640 --> 0:28:35.320
<v Speaker 2>In the majority opinion, Justice Kavanaugh wrote that the Appeals

0:28:35.359 --> 0:28:39.720
<v Speaker 2>Court did not perform the kind of nuanced analysis required

0:28:39.760 --> 0:28:43.600
<v Speaker 2>by federal law and prior Supreme Court decisions to determine

0:28:43.600 --> 0:28:46.960
<v Speaker 2>if a state law must give way to a federal statute,

0:28:47.200 --> 0:28:49.800
<v Speaker 2>and the court sent the case back to the Second

0:28:49.880 --> 0:28:54.400
<v Speaker 2>Circuit for that analysis. Joining me is Aaron Bryan. She's

0:28:54.440 --> 0:28:57.920
<v Speaker 2>co chair of the Consumer Financial Services Group at Dorsey

0:28:58.000 --> 0:29:01.320
<v Speaker 2>and Whitney. Tell us about the case, Karn, what.

0:29:01.200 --> 0:29:05.160
<v Speaker 6>This case was about at a factual level, with state

0:29:05.320 --> 0:29:09.520
<v Speaker 6>interest on escro laws. What those are are state laws

0:29:09.640 --> 0:29:13.720
<v Speaker 6>that require banks to pay a certain percentage of interest

0:29:14.040 --> 0:29:18.160
<v Speaker 6>on escro accounts that they're maintaining for mortgage borrowers. Those

0:29:18.240 --> 0:29:21.360
<v Speaker 6>vary by state. Not every state has those requirements. The

0:29:21.440 --> 0:29:24.920
<v Speaker 6>specific interest rates can vary, and so that becomes a

0:29:25.120 --> 0:29:29.160
<v Speaker 6>compliance burden for banks to manage the different requirements in

0:29:29.200 --> 0:29:32.840
<v Speaker 6>all of these different states. So, in this particular case,

0:29:33.320 --> 0:29:38.480
<v Speaker 6>a borrower challenged Bank of America's practices on this instead,

0:29:38.560 --> 0:29:42.200
<v Speaker 6>Bank of America needed to follow the state law in

0:29:42.280 --> 0:29:45.360
<v Speaker 6>New York that required the payment of interest on escrow.

0:29:45.920 --> 0:29:49.400
<v Speaker 6>Bank of America's position was, we are a national bank.

0:29:49.520 --> 0:29:53.520
<v Speaker 6>This is preempted under the National Bank Act. We can't

0:29:53.560 --> 0:29:56.760
<v Speaker 6>be expected to comply with us in every state, and

0:29:57.320 --> 0:30:00.640
<v Speaker 6>so this ended up being litigated, went up to the

0:30:00.680 --> 0:30:03.800
<v Speaker 6>Second Circuit, and eventually it went up to the Supreme Court.

0:30:04.280 --> 0:30:08.840
<v Speaker 6>And the legal issue here was whether these state laws,

0:30:08.920 --> 0:30:13.239
<v Speaker 6>which can very considerably state to state, are pre empted

0:30:13.280 --> 0:30:16.360
<v Speaker 6>by Section ten forty four of the Dodd Frank Act,

0:30:16.520 --> 0:30:20.800
<v Speaker 6>which was enacted in twenty ten. This followed the financial crisis.

0:30:21.160 --> 0:30:25.320
<v Speaker 6>And what that section does is it codifies an earlier

0:30:25.360 --> 0:30:29.840
<v Speaker 6>Supreme Court case called Barnet Bank. And Barnet Bank was

0:30:30.000 --> 0:30:34.880
<v Speaker 6>a preemption case that basically required that courts look at

0:30:34.880 --> 0:30:38.440
<v Speaker 6>the specific facts to determine whether a state law is

0:30:38.520 --> 0:30:43.840
<v Speaker 6>interfering with a national banking power. So, in other words,

0:30:44.080 --> 0:30:47.320
<v Speaker 6>if the bank is permitted to do something under its

0:30:47.440 --> 0:30:51.200
<v Speaker 6>national bank charter, but maybe operating in different states, the

0:30:51.280 --> 0:30:55.440
<v Speaker 6>courts look at whether the particular state requirements that the

0:30:55.480 --> 0:30:58.600
<v Speaker 6>state is asking the national banks to comply with are

0:30:58.640 --> 0:31:01.400
<v Speaker 6>going to be preempted or not. And so that's what

0:31:01.520 --> 0:31:04.360
<v Speaker 6>that case was. It got codified as part of DoD Frank.

0:31:04.760 --> 0:31:09.200
<v Speaker 6>The OCC which is the primary prudential regulator for national banks,

0:31:09.240 --> 0:31:13.400
<v Speaker 6>also issued regulations under that but this was the first

0:31:13.400 --> 0:31:15.760
<v Speaker 6>time that the Supreme Court had a chance to take

0:31:15.760 --> 0:31:19.320
<v Speaker 6>a look at this. They've had other opportunities, they've declined sart.

0:31:19.800 --> 0:31:21.760
<v Speaker 6>This was the first time we got to hear what

0:31:21.800 --> 0:31:26.120
<v Speaker 6>the Court thinks about whether that standard articulated and DoD

0:31:26.160 --> 0:31:30.760
<v Speaker 6>Frank changed the previous standard, narrated, expanded it, or kept

0:31:30.760 --> 0:31:31.840
<v Speaker 6>things exactly the same.

0:31:32.200 --> 0:31:36.120
<v Speaker 2>So it was a unanimous decision written by Justice Brett Cavin. Also,

0:31:36.200 --> 0:31:38.240
<v Speaker 2>what did he say? What did the court actually find?

0:31:38.520 --> 0:31:42.320
<v Speaker 6>So the Court was resolving a circuit split with this case.

0:31:42.760 --> 0:31:47.240
<v Speaker 6>We had an older case Lousmac versus Bank of America

0:31:47.560 --> 0:31:51.000
<v Speaker 6>that dates back to twenty eighteen. In twenty nineteen, the

0:31:51.040 --> 0:31:54.480
<v Speaker 6>Supreme Court had denied start on that, and these two

0:31:54.480 --> 0:32:00.360
<v Speaker 6>cases basically articulated different preemption standards and so and in

0:32:00.400 --> 0:32:03.000
<v Speaker 6>this case is the Supreme Court gave us a little

0:32:03.000 --> 0:32:05.520
<v Speaker 6>bit of what the industry was looking for, but not

0:32:05.600 --> 0:32:08.040
<v Speaker 6>all of it. The Court came to this and said,

0:32:08.640 --> 0:32:12.440
<v Speaker 6>we're looking at the National Bank Act, which codified Barnet

0:32:12.440 --> 0:32:14.920
<v Speaker 6>Bank in order to apply that, We're going to actually

0:32:14.960 --> 0:32:17.160
<v Speaker 6>look at Barnet Bank and look at the reasoning that

0:32:17.200 --> 0:32:20.280
<v Speaker 6>the Court had reached in the Barnet Bank decision. And

0:32:20.360 --> 0:32:23.280
<v Speaker 6>what they said was there's no bright line test here.

0:32:23.720 --> 0:32:27.120
<v Speaker 6>This is always going to be a fact specific inquiry,

0:32:27.560 --> 0:32:29.560
<v Speaker 6>both for the banks and for the courts that are

0:32:29.560 --> 0:32:34.080
<v Speaker 6>applying this. They will have to actually look at whether

0:32:34.240 --> 0:32:39.880
<v Speaker 6>there is significant interference with the national banks banking powers

0:32:39.880 --> 0:32:43.760
<v Speaker 6>caused by the state law at issue. And so the

0:32:43.800 --> 0:32:46.320
<v Speaker 6>court is not going to say something like they've done

0:32:46.320 --> 0:32:49.920
<v Speaker 6>an immigration law where they say any state law, almost

0:32:49.960 --> 0:32:52.880
<v Speaker 6>any state law touching immigration is preempted by federal law.

0:32:53.200 --> 0:32:56.200
<v Speaker 6>They did not go that direction. They said, this is narrow,

0:32:56.320 --> 0:32:59.200
<v Speaker 6>this is fact specific. You were going to have to

0:32:59.240 --> 0:33:03.240
<v Speaker 6>look under our previous precedents, even before Barnett Bank and

0:33:03.360 --> 0:33:08.440
<v Speaker 6>analyze whether a state law significantly interferes with the bank's powers.

0:33:09.160 --> 0:33:12.520
<v Speaker 2>So basically they're sending it back to the Second Circuit

0:33:12.720 --> 0:33:16.480
<v Speaker 2>for redo and saying, redo this. We didn't like the

0:33:16.480 --> 0:33:19.280
<v Speaker 2>way you analyzed this, or you didn't analyze this well enough.

0:33:19.800 --> 0:33:23.000
<v Speaker 6>Yes, that's exactly what they did. They said, you applied

0:33:23.000 --> 0:33:25.080
<v Speaker 6>the wrong standard, so we want you to go back

0:33:25.080 --> 0:33:27.880
<v Speaker 6>and apply the right standard. What the Second Circuit had

0:33:27.920 --> 0:33:31.440
<v Speaker 6>done was close to a field preemption standard, where they said,

0:33:31.480 --> 0:33:34.880
<v Speaker 6>if there's any interference with the national banks powers, we're

0:33:34.920 --> 0:33:38.760
<v Speaker 6>going to treat that as significant interference, and so essentially

0:33:38.800 --> 0:33:41.880
<v Speaker 6>the Supreme Court said that is taking things a little

0:33:41.880 --> 0:33:44.560
<v Speaker 6>bit too far. We need to return to this fact

0:33:44.680 --> 0:33:48.800
<v Speaker 6>specific inquiry. But they did not reach the ultimate issue

0:33:49.160 --> 0:33:54.000
<v Speaker 6>of whether the specific interest on escro law was preempted. Instead,

0:33:54.000 --> 0:33:58.320
<v Speaker 6>they said, okay, Second Circuit, here is the correct formulation

0:33:58.440 --> 0:34:01.080
<v Speaker 6>of this test. We want you to go back and

0:34:01.120 --> 0:34:03.520
<v Speaker 6>look at this again under that standard.

0:34:04.200 --> 0:34:08.400
<v Speaker 2>Did the Court give in Justice Kavanaugh's opinion, did they

0:34:08.440 --> 0:34:11.960
<v Speaker 2>give enough guidance to the Second Circuit?

0:34:12.600 --> 0:34:15.719
<v Speaker 6>I think so. You know, time will tell. It's hard

0:34:15.719 --> 0:34:17.920
<v Speaker 6>to say whether we're going to see more litigation on

0:34:17.960 --> 0:34:21.720
<v Speaker 6>these issues going forward. What the Court has done is said,

0:34:21.880 --> 0:34:24.839
<v Speaker 6>our prior precedents on this are still good law, and

0:34:24.920 --> 0:34:28.160
<v Speaker 6>so these are older cases. But there are cases that

0:34:28.160 --> 0:34:31.560
<v Speaker 6>are well known in the banking industry. And so I

0:34:31.600 --> 0:34:34.520
<v Speaker 6>do think that there's enough there, and there's enough specificity

0:34:34.520 --> 0:34:38.400
<v Speaker 6>in the opinion about what significant interference means that the

0:34:38.440 --> 0:34:42.960
<v Speaker 6>Second Circuit should be well positioned to do the analysis. Now,

0:34:43.680 --> 0:34:46.880
<v Speaker 6>it is probably likely that we're going to continue to

0:34:46.960 --> 0:34:50.840
<v Speaker 6>see disputes over the application of that test because it

0:34:50.880 --> 0:34:54.120
<v Speaker 6>is fact specific, and so you know, two people can

0:34:54.160 --> 0:34:57.080
<v Speaker 6>look at the same set of facts through a different

0:34:57.160 --> 0:35:01.400
<v Speaker 6>lens and sometimes reach different conclusions. But ultimately they have

0:35:01.560 --> 0:35:04.080
<v Speaker 6>told the Second Circuit exactly how they want them to

0:35:04.120 --> 0:35:08.040
<v Speaker 6>look at these issues, without directing what the outcome should

0:35:08.080 --> 0:35:09.680
<v Speaker 6>be on this particular law.

0:35:10.200 --> 0:35:13.000
<v Speaker 2>In this case, so Bank of America and the OCC

0:35:13.080 --> 0:35:16.160
<v Speaker 2>were on one side, and the Solicitor General and the

0:35:16.239 --> 0:35:20.520
<v Speaker 2>Justice Department were on the other, which is unusual. Why

0:35:20.560 --> 0:35:22.239
<v Speaker 2>were they not in tune.

0:35:23.200 --> 0:35:26.720
<v Speaker 6>It's a great question. They were not in tune because

0:35:27.480 --> 0:35:30.680
<v Speaker 6>the Solicitor General and the Justice Department were looking at

0:35:30.680 --> 0:35:35.600
<v Speaker 6>this lightly differently. So the OCC, as I had mentioned earlier,

0:35:36.160 --> 0:35:41.480
<v Speaker 6>they are the primary prudential regulator for national banks, and

0:35:42.200 --> 0:35:45.560
<v Speaker 6>the OCC has its own regulations. They have their own

0:35:45.560 --> 0:35:49.239
<v Speaker 6>position on these things. Their position is a little bit

0:35:49.280 --> 0:35:53.200
<v Speaker 6>more to the middle of both what the Court and

0:35:53.280 --> 0:35:55.640
<v Speaker 6>the Second Circuit in Canta did and what the Court

0:35:55.719 --> 0:35:58.680
<v Speaker 6>and LUSNAC did. I think they felt that this was

0:35:58.880 --> 0:36:02.080
<v Speaker 6>just not the right case for this to come up,

0:36:02.200 --> 0:36:04.040
<v Speaker 6>that there wasn't a need to revisit this.

0:36:04.640 --> 0:36:07.759
<v Speaker 2>Consumer advocates were they hoping that the Supreme Court would

0:36:07.800 --> 0:36:11.840
<v Speaker 2>set some kind of a bright line rule that state

0:36:11.960 --> 0:36:15.320
<v Speaker 2>consumer protection laws can apply to national banks.

0:36:16.400 --> 0:36:19.279
<v Speaker 6>Yes, let me say no, one was completely happy with

0:36:19.280 --> 0:36:20.040
<v Speaker 6>this decision.

0:36:20.719 --> 0:36:22.200
<v Speaker 2>Maybe that means it's a good decision.

0:36:22.200 --> 0:36:25.719
<v Speaker 6>I don't know, it might yeah, So a lot of

0:36:25.760 --> 0:36:30.680
<v Speaker 6>consumer advocates were really hoping that the Supreme Court would

0:36:31.160 --> 0:36:35.399
<v Speaker 6>would come out and really narrow preemption. If the Court

0:36:35.440 --> 0:36:38.480
<v Speaker 6>had taken a position that says, there are very narrow

0:36:38.520 --> 0:36:42.440
<v Speaker 6>circumstances where we're going to find a federal preemption of

0:36:42.520 --> 0:36:46.920
<v Speaker 6>state consumer laws. That would be good for consumer advocates

0:36:46.960 --> 0:36:50.400
<v Speaker 6>because it gives them more of an ability to challenge

0:36:50.640 --> 0:36:54.520
<v Speaker 6>bank's abilities to shield themselves from some of these state laws.

0:36:55.000 --> 0:37:00.000
<v Speaker 6>So some consumer advocates were certainly hoping for that outcome.

0:37:00.000 --> 0:37:03.879
<v Speaker 6>Consumer advocates have been happy with this decision because, at

0:37:03.880 --> 0:37:08.400
<v Speaker 6>the very least, it didn't expand preemption, which would have

0:37:08.440 --> 0:37:12.040
<v Speaker 6>made it more difficult for them to force banks to

0:37:12.040 --> 0:37:15.839
<v Speaker 6>comply with state laws. But it also didn't give them

0:37:15.880 --> 0:37:18.400
<v Speaker 6>everything they wanted because the Court did not reach the

0:37:18.520 --> 0:37:22.279
<v Speaker 6>ultimate issue on this particular case. It didn't expand the

0:37:22.320 --> 0:37:26.120
<v Speaker 6>doctrine at all. So while there's some celebration, I don't

0:37:26.120 --> 0:37:29.319
<v Speaker 6>think that consumer advocates are one hundred percent thrilled with

0:37:29.400 --> 0:37:29.840
<v Speaker 6>us either.

0:37:30.640 --> 0:37:33.440
<v Speaker 2>So, I mean, does this mean more litigation in the

0:37:33.480 --> 0:37:35.040
<v Speaker 2>future for national banks.

0:37:35.600 --> 0:37:38.920
<v Speaker 6>I expect this to be about the same amount of litigation,

0:37:39.520 --> 0:37:43.040
<v Speaker 6>because what this is doing is really saying the law

0:37:43.080 --> 0:37:47.640
<v Speaker 6>that you all thought applied does apply. Luznak and Cantaro

0:37:47.920 --> 0:37:50.680
<v Speaker 6>confused things a little bit, so there had been an

0:37:50.800 --> 0:37:55.439
<v Speaker 6>understanding that the Barnet Bank standard would apply, and what

0:37:55.480 --> 0:37:59.480
<v Speaker 6>that meant. With the circuit split, that became more complicated.

0:38:01.040 --> 0:38:05.160
<v Speaker 6>For the most part, national banks have continued to analyze

0:38:05.160 --> 0:38:08.360
<v Speaker 6>these issues under the Barnett Bank standard, and so I

0:38:08.360 --> 0:38:10.560
<v Speaker 6>don't think this is going to change much in terms

0:38:10.600 --> 0:38:15.319
<v Speaker 6>of day to day practices, but you know, time will

0:38:15.360 --> 0:38:19.680
<v Speaker 6>tell anytime you have a change to how consumer laws

0:38:19.719 --> 0:38:25.400
<v Speaker 6>are interpreted. There's certainly interest in bringing new challenges, bringing

0:38:25.719 --> 0:38:29.000
<v Speaker 6>creative arguments that might cause the court to look at

0:38:29.000 --> 0:38:32.920
<v Speaker 6>it from a slightly different perspective, But I personally am

0:38:32.960 --> 0:38:34.879
<v Speaker 6>not thinking that this is going to have a huge

0:38:34.880 --> 0:38:35.600
<v Speaker 6>effect on that.

0:38:36.480 --> 0:38:38.880
<v Speaker 2>Coming up next on the Bloomberg Law Show, I'll continue

0:38:38.920 --> 0:38:44.000
<v Speaker 2>this conversation with Aaron Bryan of Dorsey and Whitney and

0:38:44.080 --> 0:38:48.080
<v Speaker 2>we'll discuss the implications of this decision for the occ

0:38:49.600 --> 0:38:53.359
<v Speaker 2>Also an update on the Hunter Biden criminal case, which

0:38:53.400 --> 0:38:57.040
<v Speaker 2>began today. Remember you can always get the latest legal

0:38:57.040 --> 0:39:00.239
<v Speaker 2>news by listening to our Bloomberg Lawn podcast. You can

0:39:00.239 --> 0:39:04.479
<v Speaker 2>find them on Apple Podcasts, Spotify, and it www dot

0:39:04.480 --> 0:39:09.480
<v Speaker 2>Bloomberg dot com, slash podcast, Slash Law. I'm June Grosso,

0:39:09.640 --> 0:39:13.560
<v Speaker 2>and you're listening to Bloomberg. I've been talking to Aaron Bryan,

0:39:13.840 --> 0:39:17.040
<v Speaker 2>co chair of the Consumer Financial Services Group at Dorsey

0:39:17.080 --> 0:39:20.680
<v Speaker 2>and Whitney. Erin Justice Gorsach had a lot of questions

0:39:20.719 --> 0:39:24.880
<v Speaker 2>about the OCC. Will this decision have any implications for

0:39:24.960 --> 0:39:25.680
<v Speaker 2>the OCC?

0:39:26.520 --> 0:39:29.120
<v Speaker 6>At this point, I don't see any major implications for

0:39:29.200 --> 0:39:33.040
<v Speaker 6>the OCC. The message to them appears to be business

0:39:33.040 --> 0:39:37.880
<v Speaker 6>as usual, although obviously they will be monitoring developments on

0:39:38.000 --> 0:39:41.160
<v Speaker 6>this as it goes back to the Second Circuit, potentially

0:39:41.200 --> 0:39:43.759
<v Speaker 6>if it comes back to the Supreme Court for a

0:39:43.800 --> 0:39:46.480
<v Speaker 6>second time, or if other challenges work their way up

0:39:46.520 --> 0:39:50.200
<v Speaker 6>in different cases, they will be monitoring it. But I

0:39:50.239 --> 0:39:54.120
<v Speaker 6>would not expect any major changes to the way that

0:39:54.200 --> 0:39:57.040
<v Speaker 6>they regulate banks based on this decision because it is

0:39:57.080 --> 0:40:00.440
<v Speaker 6>fairly consistent with their prior view and.

0:40:00.960 --> 0:40:03.759
<v Speaker 2>There was a circuit split between the Ninth Circuit and

0:40:03.800 --> 0:40:06.440
<v Speaker 2>the Second Circuit. So is the Court saying that what

0:40:06.480 --> 0:40:10.800
<v Speaker 2>the Ninth Circuit did was correct and the Second Circuit

0:40:10.840 --> 0:40:11.240
<v Speaker 2>was wrong.

0:40:12.080 --> 0:40:14.520
<v Speaker 6>The court is saying that they both got it a

0:40:14.520 --> 0:40:17.840
<v Speaker 6>little bit wrong. The Court is saying we have to

0:40:17.920 --> 0:40:21.799
<v Speaker 6>look for significant interference and that that's going to be

0:40:21.880 --> 0:40:25.520
<v Speaker 6>fact specific. So you can't just say if the law

0:40:25.719 --> 0:40:28.879
<v Speaker 6>can theoretically be complied with by a bank in all

0:40:28.920 --> 0:40:32.440
<v Speaker 6>fifty states, then it's not significant interference, which is more

0:40:32.520 --> 0:40:35.720
<v Speaker 6>like what Lusnak said. At the same time, you can't

0:40:35.760 --> 0:40:39.720
<v Speaker 6>say that if there's any interference, then it's significant, which

0:40:39.760 --> 0:40:43.520
<v Speaker 6>is more like what Cancerro said. They're really drawing a

0:40:43.560 --> 0:40:47.640
<v Speaker 6>line down the middle and saying significant interference is going

0:40:47.680 --> 0:40:49.799
<v Speaker 6>to depend on the facts. The court needs to look

0:40:49.840 --> 0:40:52.080
<v Speaker 6>at what is the bank saying about, how this is

0:40:52.160 --> 0:40:56.040
<v Speaker 6>significant interference? How does this fit with prior precedence? Is

0:40:56.080 --> 0:40:58.160
<v Speaker 6>just an issue that the courts have looked at before.

0:40:58.880 --> 0:41:02.040
<v Speaker 6>What is the law in all of those have to

0:41:02.080 --> 0:41:06.120
<v Speaker 6>be examined. So although in some ways they're using similar

0:41:06.200 --> 0:41:09.000
<v Speaker 6>words to both the Second Circuit and the Ninth Circuit,

0:41:09.520 --> 0:41:11.360
<v Speaker 6>they're telling both of them that they got it a

0:41:11.360 --> 0:41:13.560
<v Speaker 6>little bit wrong and that ultimately this has to be

0:41:13.640 --> 0:41:15.320
<v Speaker 6>a more effect specific inquiry.

0:41:15.840 --> 0:41:19.720
<v Speaker 2>And only about a dozen states have mortgagees grow account

0:41:19.840 --> 0:41:23.920
<v Speaker 2>interest rules similar to new York's. I'm surprised. I thought

0:41:23.920 --> 0:41:24.600
<v Speaker 2>it would be more.

0:41:25.080 --> 0:41:28.640
<v Speaker 6>Well, it may be more after this that's certainly getting

0:41:28.640 --> 0:41:32.000
<v Speaker 6>a lot of attention, so that could be one possible change.

0:41:32.400 --> 0:41:34.759
<v Speaker 6>You know, these are very small amounts though that we're

0:41:34.760 --> 0:41:37.640
<v Speaker 6>talking about. The kind of interest on these accounts and

0:41:37.719 --> 0:41:40.600
<v Speaker 6>the aggregate it can make a big difference. But you know,

0:41:40.719 --> 0:41:43.240
<v Speaker 6>for the average consumer it may be a few dollars

0:41:43.280 --> 0:41:46.280
<v Speaker 6>a year. It's not an incredibly large amount of money.

0:41:46.320 --> 0:41:49.480
<v Speaker 6>That can make a big difference for some people's budgets,

0:41:49.520 --> 0:41:52.480
<v Speaker 6>of course, but this isn't a way that the banks

0:41:52.480 --> 0:41:55.239
<v Speaker 6>tend to make a lot of money. I think from

0:41:55.280 --> 0:41:58.320
<v Speaker 6>the bank's perspective, this is really more of a compliance issue,

0:41:58.400 --> 0:42:01.719
<v Speaker 6>but it can be very challenge. Escrow honestly is one

0:42:01.719 --> 0:42:04.799
<v Speaker 6>of the most challenging parts of mortgage servicing to begin with,

0:42:05.360 --> 0:42:08.239
<v Speaker 6>and so the more variations you have on how you

0:42:08.320 --> 0:42:11.800
<v Speaker 6>need to handle escrow accounts, the more complicated it becomes

0:42:11.840 --> 0:42:15.320
<v Speaker 6>and the more likely errors are. So from the bank's perspective,

0:42:15.360 --> 0:42:18.400
<v Speaker 6>you know, this is really about the challenges of complying

0:42:18.640 --> 0:42:23.560
<v Speaker 6>with very different laws and different jurisdictions. The preference, obviously

0:42:23.600 --> 0:42:26.440
<v Speaker 6>would be to have one set of laws that applies everywhere. Now,

0:42:26.480 --> 0:42:29.200
<v Speaker 6>one thing that Congress could do is to say we

0:42:29.239 --> 0:42:31.480
<v Speaker 6>are going to specifically pass the law. You know that

0:42:31.560 --> 0:42:35.720
<v Speaker 6>overrides us, but basically could codifies preemption specifically for interest

0:42:35.800 --> 0:42:37.960
<v Speaker 6>on escrow. So it's probably not going to happen, but

0:42:38.000 --> 0:42:40.120
<v Speaker 6>that would be one other way that this could be resolved.

0:42:41.040 --> 0:42:44.080
<v Speaker 2>The attorney for the homeowners call this a big win

0:42:44.239 --> 0:42:47.680
<v Speaker 2>for American consumers. But is it a big win?

0:42:48.200 --> 0:42:51.319
<v Speaker 6>Well, it may be a win for a plaintiffs' attorneys.

0:42:51.440 --> 0:42:53.880
<v Speaker 6>I don't see this as a big win for either

0:42:54.239 --> 0:42:58.400
<v Speaker 6>consumers or banks. I think that from the bank's perspective,

0:42:58.560 --> 0:43:02.000
<v Speaker 6>in a perfect world, or might have decided to expand

0:43:02.120 --> 0:43:06.120
<v Speaker 6>preemption towards something more like field preemption, which we talked

0:43:06.120 --> 0:43:09.640
<v Speaker 6>about earlier, and some in the banking industry had pushed

0:43:09.680 --> 0:43:12.040
<v Speaker 6>for that. But I just don't think that was ever

0:43:12.120 --> 0:43:17.120
<v Speaker 6>going to happen. The outcome we got was right down

0:43:17.120 --> 0:43:19.480
<v Speaker 6>the middle. I don't think that it makes either side

0:43:19.480 --> 0:43:21.759
<v Speaker 6>really happy. I don't see this as a huge win

0:43:21.960 --> 0:43:24.200
<v Speaker 6>for consumers. I also don't see it as a huge

0:43:24.200 --> 0:43:28.040
<v Speaker 6>win for banks. I think ultimately this is a decision

0:43:28.160 --> 0:43:32.440
<v Speaker 6>that reaffirms the status quo consumers are not going to

0:43:32.440 --> 0:43:35.200
<v Speaker 6>get rich off of this. We're huge amounts of money

0:43:35.280 --> 0:43:37.680
<v Speaker 6>that they'll be getting an interest on their escor accounts,

0:43:37.719 --> 0:43:41.520
<v Speaker 6>even in those states. So I don't see this as

0:43:41.520 --> 0:43:44.799
<v Speaker 6>a huge win for consumers. It's not necessarily bad news

0:43:44.840 --> 0:43:47.880
<v Speaker 6>for them either, But this is really just down the middle.

0:43:49.120 --> 0:43:51.319
<v Speaker 2>Aaron, This may be a little in the weeds, but

0:43:51.480 --> 0:43:56.239
<v Speaker 2>tell us about what you've called this provocative footnote.

0:43:56.239 --> 0:43:59.319
<v Speaker 6>The Court did have a really interesting footnote. So the

0:43:59.360 --> 0:44:04.000
<v Speaker 6>Court common that on remand the Second Circuit could consider

0:44:04.080 --> 0:44:08.240
<v Speaker 6>the significance if there is any of the OCC's preemption rules.

0:44:08.719 --> 0:44:11.680
<v Speaker 6>So that's interesting because although it was discussed at one

0:44:11.719 --> 0:44:14.800
<v Speaker 6>point earlier in the case, that was not an issue

0:44:14.800 --> 0:44:17.359
<v Speaker 6>before the Supreme Court, So for them to specifically call

0:44:17.440 --> 0:44:20.239
<v Speaker 6>that out in a footnote, all that says, we want

0:44:20.280 --> 0:44:23.600
<v Speaker 6>you to consider this right. And then the other thing

0:44:23.640 --> 0:44:26.920
<v Speaker 6>that they noted was that the Second Circuit could also

0:44:27.000 --> 0:44:30.600
<v Speaker 6>consider the potential relevance of a Dodd Frank Act provision

0:44:31.200 --> 0:44:35.160
<v Speaker 6>that recognizes preemption of state consumer finance laws under other

0:44:35.200 --> 0:44:38.359
<v Speaker 6>federal statutes. So again, this was something that came up

0:44:39.280 --> 0:44:43.640
<v Speaker 6>earlier in the case was not litigated at this stage.

0:44:44.280 --> 0:44:47.960
<v Speaker 6>But it is curious that the Court specifically highlighted this.

0:44:48.440 --> 0:44:51.719
<v Speaker 6>It's almost teasing that they would like the court to

0:44:51.719 --> 0:44:54.200
<v Speaker 6>look at these issues, but they would like another chance

0:44:54.320 --> 0:44:56.920
<v Speaker 6>to consider it. So hard to say what that means

0:44:57.000 --> 0:44:59.239
<v Speaker 6>if the Court is leaning one direction or the other.

0:44:59.760 --> 0:45:03.640
<v Speaker 6>But also interesting that they that they flagged that for

0:45:03.760 --> 0:45:05.279
<v Speaker 6>the parties involved with us.

0:45:06.680 --> 0:45:08.920
<v Speaker 2>What's the big takeaway here for banks?

0:45:10.080 --> 0:45:12.319
<v Speaker 6>The takeaway here for banks they're going to have to

0:45:12.360 --> 0:45:15.239
<v Speaker 6>continue to monitor this. In the short terms, they're going

0:45:15.280 --> 0:45:18.480
<v Speaker 6>to have to continue to assume that there may not

0:45:18.560 --> 0:45:21.000
<v Speaker 6>be preemption for some of these state laws that are

0:45:21.040 --> 0:45:25.040
<v Speaker 6>not specifically called out in federal statutes. But we'll see

0:45:25.080 --> 0:45:27.320
<v Speaker 6>what the Second Circuit does with this. It may be

0:45:27.480 --> 0:45:30.160
<v Speaker 6>that this interest on ESCO issue goes away now that

0:45:30.520 --> 0:45:33.480
<v Speaker 6>there's agreement about how the test should be applied, but

0:45:34.000 --> 0:45:36.880
<v Speaker 6>banks to continue to monitor this because we have not

0:45:36.960 --> 0:45:39.520
<v Speaker 6>reached the ultimate issue yet and there is still potential

0:45:39.640 --> 0:45:41.520
<v Speaker 6>for new direction on the topic.

0:45:42.080 --> 0:45:44.960
<v Speaker 2>Thursday was not a good day for the Second Circuit.

0:45:45.000 --> 0:45:48.520
<v Speaker 2>It was reversed in two cases. Thanks so much, Aaron.

0:45:48.800 --> 0:45:52.080
<v Speaker 2>That's Aaron Bryan, co chair of the Consumer Financial Services

0:45:52.120 --> 0:45:55.280
<v Speaker 2>Group at Dorsey and Whitney. In other legal news today,

0:45:55.880 --> 0:45:58.680
<v Speaker 2>a jury has been seated in the federal gun case

0:45:59.000 --> 0:46:03.480
<v Speaker 2>against Hunter Biden, President Biden's son. The jury of six

0:46:03.600 --> 0:46:07.840
<v Speaker 2>men and six women will hear opening statements tomorrow. Hunter

0:46:07.920 --> 0:46:11.520
<v Speaker 2>Biden has been charged in Delaware with three felonies stemming

0:46:11.520 --> 0:46:15.320
<v Speaker 2>from a twenty eighteen firearms purchase when he was, according

0:46:15.360 --> 0:46:19.120
<v Speaker 2>to his memoir, in the throes of crack addiction. He's

0:46:19.160 --> 0:46:22.560
<v Speaker 2>been accused of lying to a federally licensed gun dealer,

0:46:22.920 --> 0:46:26.359
<v Speaker 2>making a false claim on the application by saying he

0:46:26.480 --> 0:46:29.640
<v Speaker 2>was not a drug user, and illegally having the gun

0:46:29.719 --> 0:46:33.800
<v Speaker 2>for eleven days. The case has had a tortured history.

0:46:34.160 --> 0:46:37.000
<v Speaker 2>It's going to trial following the collapse of a plea

0:46:37.080 --> 0:46:40.160
<v Speaker 2>deal that would have avoided the spectacle of a trial

0:46:40.239 --> 0:46:43.600
<v Speaker 2>so close to the twenty twenty four election. Hunter Biden

0:46:43.640 --> 0:46:46.880
<v Speaker 2>has pleaded not guilty and has argued he's being unfairly

0:46:47.000 --> 0:46:50.960
<v Speaker 2>targeted by the Justice Department. The questions to the potential

0:46:51.080 --> 0:46:54.839
<v Speaker 2>jurors tested their knowledge of the case, their thoughts about

0:46:54.920 --> 0:46:58.480
<v Speaker 2>gun ownership, and whether they or anyone close to them

0:46:58.560 --> 0:47:03.320
<v Speaker 2>have struggled with substance abuse or addiction. Other questions focused

0:47:03.320 --> 0:47:06.000
<v Speaker 2>on the role politics may have played in the charges.

0:47:06.680 --> 0:47:09.640
<v Speaker 2>One potential durer who was sent home, said she didn't

0:47:09.640 --> 0:47:12.840
<v Speaker 2>know whether she could be impartial because of the opinion

0:47:12.920 --> 0:47:16.880
<v Speaker 2>she'd formed about Hunter Biden based on media reports quote

0:47:17.000 --> 0:47:19.920
<v Speaker 2>It's not a good one. In a statement today, the

0:47:20.000 --> 0:47:23.880
<v Speaker 2>President said he has boundless love for his son, confidence

0:47:23.920 --> 0:47:27.040
<v Speaker 2>in him, and respect for his strength. And that's it

0:47:27.120 --> 0:47:30.080
<v Speaker 2>for this edition of the Bloomberg Law Podcast. Remember you

0:47:30.080 --> 0:47:32.799
<v Speaker 2>can always get the latest legal news by subscribing and

0:47:32.880 --> 0:47:36.440
<v Speaker 2>listening to the show on Apple Podcasts, Spotify, and at

0:47:36.440 --> 0:47:40.760
<v Speaker 2>Bloomberg dot com, Slash podcast, Slash Law. I'm June Grosso

0:47:40.960 --> 0:47:42.440
<v Speaker 2>and this is Bloomberg