WEBVTT - Johnny Depp's Win and the Aftermath

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<v Speaker 1>This is Bloomberg Law with June Brasso from Bloomberg Radio.

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<v Speaker 1>It was the definition of a high profile trial involving

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<v Speaker 1>two movie stars, their broken marriage, revelations of vicious fights,

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<v Speaker 1>alcohol and drug abuse, and claims of physical abuse by both.

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<v Speaker 1>Johnny Depp was suing his ex wife Amber Heard for

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<v Speaker 1>defamation over her op ed piece which he claimed falsely

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<v Speaker 1>accused him of abusing her. Heard was countersuing for defamation

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<v Speaker 1>over statements by his lawyer which she claimed falsely accused

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<v Speaker 1>her of creating a hoax surrounding the abuse allegations. They

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<v Speaker 1>both testified to contradictory facts. It started with slapping um,

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<v Speaker 1>and it got to be repetitive slaps where he'd hold

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<v Speaker 1>me um in a position and slapped me multiple times.

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<v Speaker 1>Never did I myself have reached the point of h

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<v Speaker 1>striking Misheard in any way, nor have I ever struck

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<v Speaker 1>any woman in my life. The jury awarded Depth ten

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<v Speaker 1>million dollars in compensatory damages and five million impunitive damages.

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<v Speaker 1>After finding that herd had defamed him by claiming he

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<v Speaker 1>abused her, The jury awarded her two million dollars in

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<v Speaker 1>compensatory damages. For Depth's lawyer statement that she created a

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<v Speaker 1>hoax joining me his name of Romani, President of West

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<v Speaker 1>Coast Trial Lawyers. How did you see the verdict? Was

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<v Speaker 1>there a clear winner Johnny Depp one? And it wasn't closed.

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<v Speaker 1>I would describe it as a complete and total victory,

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<v Speaker 1>especially after this humiliating defeat he stuff heard. When you

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<v Speaker 1>do the sun in the UK to what do you

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<v Speaker 1>attribute depth success? Here? Two factors likability and credibility. No

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<v Speaker 1>question that Johnny Depp was the more likable witnesses, both

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<v Speaker 1>inside the courtroom and in the courtroom of public opinions.

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<v Speaker 1>But importantly credibility is the reason Amber heard loss. She

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<v Speaker 1>lied about facts that really had nothing to do with

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<v Speaker 1>the abuse, but her donating seven million dollars in divorce

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<v Speaker 1>pursueding secarity when she didn't do so. The jury didn't

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<v Speaker 1>buy that she pledged it, not donated it. And even

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<v Speaker 1>when it came to TMZ and the video that she

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<v Speaker 1>took on her phone made its way to TMZ, it

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<v Speaker 1>was leaked obviously by her or someone working in her direction. Similarly,

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<v Speaker 1>when she fabled for the t r O the temporary

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<v Speaker 1>restraining order in two thousand and sixteen and TNZ was

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<v Speaker 1>picked up. It had to come from Amber Heard, So

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<v Speaker 1>when she lied about these facts, the jurors were free

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<v Speaker 1>to disregard her testimony entirely, and they chose to do so. Also,

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<v Speaker 1>she exaggerated to the extent of her injuries. She told

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<v Speaker 1>the jurors that she thought Johnny Depp was going to

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<v Speaker 1>kill her, that death hit her so many times that

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<v Speaker 1>she lost count the pictures, and even though they did

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<v Speaker 1>support injuries, they didn't show an attempt to murder our

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<v Speaker 1>selony assault. So for those reasons, the jurors sided with

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<v Speaker 1>death and it chose to punish her. What about the

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<v Speaker 1>fact that the jury awarded her two million dollars based

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<v Speaker 1>on some statements that were made by his lawyer. The

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<v Speaker 1>jury did, surprisingly award Amber Heard two million dollars on

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<v Speaker 1>only one of her counterclaims. But as you mentioned, it

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<v Speaker 1>wasn't a statement made by Death. It was made by

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<v Speaker 1>depth former divorce lawyer, Adam Waldman, and it related to

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<v Speaker 1>the two thousand and sixteen incident where l apt were

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<v Speaker 1>called to their downtown Los Angeles apartment, and specifically, Waldman

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<v Speaker 1>said that it was a setup and it was a

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<v Speaker 1>hoax that l APD were called, and it turned out

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<v Speaker 1>that amber Heard didn't make that phone call, someone from

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<v Speaker 1>New York did. And amber Heard didn't cooperate with l

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<v Speaker 1>apt when they arrived. I think based on those two

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<v Speaker 1>important facts, the jurors found that, you know, Waldman did

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<v Speaker 1>the same herbs importantly, because Waldman was acting as death agents,

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<v Speaker 1>not agents in the term of contacting agent, but the

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<v Speaker 1>legal term, because there was a principal agent relationship. Death

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<v Speaker 1>is responsible for Waldman's defamatory statement as a matter of law,

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<v Speaker 1>and therefore that two million dollars offset the ten point

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<v Speaker 1>three five million dollars at these Otherwise, oh, the total

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<v Speaker 1>judgment will be eight point three five millions in Johnny Depth.

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<v Speaker 1>Savor Heard and her lawyers have said that Johnny Depp

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<v Speaker 1>had an advantage here because of his wealth, power, and fame.

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<v Speaker 1>There's no question that the public support was overwhelmingly in

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<v Speaker 1>Johnny depth favor, and some of it was because the

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<v Speaker 1>factors outside of her control, but some of it was

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<v Speaker 1>because of her own doing self inflicted wounds or worse

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<v Speaker 1>errors that I like to call them. So men and

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<v Speaker 1>women of all generations love Johnny Depp. He's a handsome, charming,

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<v Speaker 1>charismatic guy. Be they've in fans of his acting for

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<v Speaker 1>decades heard also is the face of the me too

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<v Speaker 1>movement that a lot of men unfortunately thinks has gone

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<v Speaker 1>too far. But obviously this is a legal case and

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<v Speaker 1>it should be tried in the courtroom, and the decisions

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<v Speaker 1>to these based on the evidence, observes or people. And

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<v Speaker 1>there's no question that Herd was less likable and that

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<v Speaker 1>she lost the pr battle. And because Johnny Depp was

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<v Speaker 1>so credible, he was still vulnerable. He talked about his

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<v Speaker 1>own shortcoming, his drug and alcohol abuse, the physical abuse

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<v Speaker 1>he suffered the hands of his parents. It's very open

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<v Speaker 1>and very transparent, and he owned up to a lot

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<v Speaker 1>of his mistakes. But Himble Herd denied everything. She denied

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<v Speaker 1>ever striking depth, except for one incident. She really minimized

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<v Speaker 1>her drug use just like he's one ton of airplane

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<v Speaker 1>with a flight attendant, when it was clear that she

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<v Speaker 1>was also using substances of death. And I think if

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<v Speaker 1>Herd had gn a more balanced approach and she had

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<v Speaker 1>said that she was also verbally abusive, this is a

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<v Speaker 1>mutually violent relationship. They were both victims, they were both perpetrators.

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<v Speaker 1>I think that would have been a pass to victory.

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<v Speaker 1>But for her in statistic extreme positions. You didn't accept

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<v Speaker 1>any responsibility for anything that happened during the course of

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<v Speaker 1>the relationship, and I think as a result, people didn't

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<v Speaker 1>find her likable or credited. Why do you think he

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<v Speaker 1>lost the UK case where the standard for libel is

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<v Speaker 1>less than it is here, and yet he won this case.

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<v Speaker 1>What made the difference? It's very surprising standard is higher

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<v Speaker 1>for a planet here in the United States. We talked

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<v Speaker 1>about that clear and convincing standard because John, that's the

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<v Speaker 1>public figure, has to show actual malice, whereas in the UK,

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<v Speaker 1>verden is on the defendant the sons to prove that

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<v Speaker 1>the statements were substantially true. That's why a lot of

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<v Speaker 1>legal compensators, including myself, thought that it was a mistake

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<v Speaker 1>for him to file directly against her here in the

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<v Speaker 1>United States and he would lose again. What turns out

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<v Speaker 1>this was both an extraordinary legal comeback but really public

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<v Speaker 1>relations genius moved by doing so. You know, my twenty

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<v Speaker 1>years of practice, I've never seen someone come back like this.

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<v Speaker 1>How much was it the lawyering? It seemed like Herd's

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<v Speaker 1>lawyers were just out lawyered by Depth's team. They were

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<v Speaker 1>obviously Heard made her mistakes for her lawyers similarly made

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<v Speaker 1>a number of strategic legal mistakes. We can go through them.

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<v Speaker 1>The most important which one They ran out of time? Um,

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<v Speaker 1>they used far too much time doing a very slow

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<v Speaker 1>crosses examination during Depth take in chiefs. In fact, when

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<v Speaker 1>Depth team initially rested, hers lawyers had to use more

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<v Speaker 1>time than Depth did, so they ran out of time

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<v Speaker 1>and to go through witness quickly and the end, and

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<v Speaker 1>couldn't call witnesses if they wanted to call. Other strategic

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<v Speaker 1>mistakes include, frankly, Elaine bedehof handling Camille bass As his

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<v Speaker 1>objections very poorly. Someone who's a practicing law for almost

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<v Speaker 1>four years is a basic evidentiary objection Where you learned

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<v Speaker 1>and your specond her of law school And for anyone

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<v Speaker 1>who followed the trial on TV or on social media,

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<v Speaker 1>it's clear that she was unable to reformulate a question

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<v Speaker 1>to overcome the objections. You know, there were a few

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<v Speaker 1>in the person witnesses supporting Amber Heard and deposition testimony

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<v Speaker 1>isn't the same. Remember herself testified waitning here to testify.

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<v Speaker 1>There were some paid experts to show us in person,

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<v Speaker 1>but everyone else testified. Your video tape deposition and it

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<v Speaker 1>is not the thing. Um. Similarly, they focused too much

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<v Speaker 1>on drug and alcohol abuse, and it's clear that Johnny

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<v Speaker 1>does have a substance. To these films who've admitted it.

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<v Speaker 1>This is the case of physical violence, case for sexual violence.

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<v Speaker 1>That should have been the focus, not the fact that

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<v Speaker 1>Amber and Johnny were arguing and you know he would

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<v Speaker 1>get swungs and you know abuse tou So they really

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<v Speaker 1>lost their focus. And frankly, they don't really control their clients.

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<v Speaker 1>You know, Amber heard had testified to fully that she

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<v Speaker 1>intended to donate seven million dollars to charity, but you know,

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<v Speaker 1>ranting to financial problems and you know, I had to

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<v Speaker 1>keep the money and she was embarrassed, and that's why

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<v Speaker 1>she allied, since that would come across much more credible. UM. Similarly,

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<v Speaker 1>she admitted to leaking the video of CMD because she

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<v Speaker 1>wanted the public support because everyone likes Johnny Depp, and

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<v Speaker 1>then that would have been more believable. And they so

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<v Speaker 1>both the legal strategy was for and in terms of

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<v Speaker 1>prepping the witness to testify, I think they did not

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<v Speaker 1>do as good as a job as they could. Happen,

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<v Speaker 1>didn't make a difference that they brought the case that

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<v Speaker 1>Depp brought the case in Virginia instead of California. It did.

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<v Speaker 1>It made a big difference because First Amendment laws and

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<v Speaker 1>more friendly here in Los Angeles, California, where I practice.

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<v Speaker 1>There's something that's called an anti slap statches that allowed

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<v Speaker 1>the judges tend to be liberal here in Los Angeles

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<v Speaker 1>to dismiss definations before they go to a jury trial.

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<v Speaker 1>Never strong here. The next to the best venue would

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<v Speaker 1>have been New York for the A C l U,

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<v Speaker 1>which is pretty liberal as well Northern Virginia where the

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<v Speaker 1>Washington Posted headquarters and their servers are. It's not a

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<v Speaker 1>bad venue for defendant in a defamation case, but it's

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<v Speaker 1>probably not as of l A or York tends to

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<v Speaker 1>be a more of a purple state in terms of

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<v Speaker 1>the dury pool. So it was somewhat favorable for death

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<v Speaker 1>but certainly not a favorable as the UK does the

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<v Speaker 1>same as if the jury really carefully considered each claim

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<v Speaker 1>separately and follow the judge's instructions, it's questionable that they

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<v Speaker 1>understood the damages portion because they did return the verdict

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<v Speaker 1>on one claim without a new damages So this is

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<v Speaker 1>a complicated case, there's three alleged defamatory statements on both

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<v Speaker 1>sides that higher burden approved, there's alice compensatory damages, there's

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<v Speaker 1>punitive damages. This look they ultimately got it right, but

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<v Speaker 1>at least during the initial verdict that they completed, and

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<v Speaker 1>they must have been some complete would you surprise that

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<v Speaker 1>they came back for punitive damages when, as you said,

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<v Speaker 1>it appeared to be a mutually abusive relationship in a

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<v Speaker 1>lot of respects. Anytime you proved intentional conduct or reckless

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<v Speaker 1>conduct punitives on play. Obviously, to prove malice depths, Plays

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<v Speaker 1>had to prove that heard knew she was lying when

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<v Speaker 1>she published the statement, or she acted in a reckless

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<v Speaker 1>disregard for the truth. That being said, you know, five

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<v Speaker 1>million dollars and punitive damages when Johnny Depp Players didn't

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<v Speaker 1>ask for any specific damage amount during closing was surprising

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<v Speaker 1>to me and one of the reasons why I believe

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<v Speaker 1>this was an overwhelming win for Johnny Depp. This is

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<v Speaker 1>one case based on the unique facts here, but a

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<v Speaker 1>lot of legal experts are saying it will have a

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<v Speaker 1>chilling effect on women coming forward in the future to

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<v Speaker 1>bring cases of domestic violence there's a huge step back.

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<v Speaker 1>Let's be honest, sexual assaults domestic violence, those are two

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<v Speaker 1>of the most hunder reported clients in the country. Women

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<v Speaker 1>are hesitant to come forward, and there's many reasons, but

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<v Speaker 1>one of the primary reasons is the disparity and power

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<v Speaker 1>and wealth. Oftentimes the men that are used their athletes,

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<v Speaker 1>they're entertainers, of politicians, their CEOs, their men have significant means.

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<v Speaker 1>And now women find themselves in a position where they

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<v Speaker 1>may be sued by the men that they're accusing. And

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<v Speaker 1>the men have hundreds of thousands or even millions of

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<v Speaker 1>dollars to subject them to civil litigation and also higher

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<v Speaker 1>attorneys to defend themselves, and they may not have that money.

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<v Speaker 1>So it's going to give them one more reason to

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<v Speaker 1>potentially not report the abuse to the assaults for law

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<v Speaker 1>enforcement or medical personnel. I think it will also emboldened

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<v Speaker 1>men who file these text to cases. I mean, it's

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<v Speaker 1>all started really with President Trump, who's defamation lawsuits to

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<v Speaker 1>really pressure its political adversaries. And I'm not comparing death

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<v Speaker 1>to the former president, but you know, to the sense

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<v Speaker 1>that men are accused and they think that's been falsely accused.

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<v Speaker 1>Sometimes the best defense is a good offense, and we're

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<v Speaker 1>going to see copycat litigation. There's no doubt in my

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<v Speaker 1>mind her it is going to appeal. What are her

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<v Speaker 1>chances it will be up to a battle. I don't

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<v Speaker 1>see any good legal basis for appeal the rest of

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<v Speaker 1>the illegal error. And I know they've talked about the

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<v Speaker 1>UK judgment not coming in and some of the social

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<v Speaker 1>media presidents, but I don't think the judges of anything wrong.

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<v Speaker 1>The UK case is obviously different case, different parties, and

0:13:48.679 --> 0:13:51.120
<v Speaker 1>heard looking a party to that case, different law that applies,

0:13:51.160 --> 0:13:55.080
<v Speaker 1>but really has no presidential impacts here, really social media,

0:13:55.400 --> 0:13:57.680
<v Speaker 1>not much the judge can do. The judged that potentially

0:13:57.679 --> 0:14:01.120
<v Speaker 1>sequestioned the juror that rarely, if ever happens in a

0:14:01.160 --> 0:14:03.160
<v Speaker 1>civil case. You just don't have the same rights that

0:14:03.240 --> 0:14:06.600
<v Speaker 1>you do as a criminal defendant. Um And apparently there

0:14:06.640 --> 0:14:09.640
<v Speaker 1>was some evidence that was excuted. But what I saw

0:14:09.640 --> 0:14:11.520
<v Speaker 1>from the judge is the judges scouted a lot of

0:14:11.559 --> 0:14:15.280
<v Speaker 1>the good evidence for Johnny depth but the Kate Moss

0:14:15.400 --> 0:14:18.400
<v Speaker 1>and the Seattle police officer so imember her to open

0:14:18.480 --> 0:14:21.480
<v Speaker 1>the door and talked about Kate Moss and says that

0:14:21.520 --> 0:14:23.520
<v Speaker 1>she had never been abused as towards the next so

0:14:24.040 --> 0:14:26.680
<v Speaker 1>and the judge called it pretty fairly. You can't appeal

0:14:26.760 --> 0:14:31.200
<v Speaker 1>a factual decision by a jury, such as credibility issues

0:14:31.360 --> 0:14:34.480
<v Speaker 1>and those types of things. So I understand why Amber

0:14:34.480 --> 0:14:37.040
<v Speaker 1>Heard is going to appeal because you know, her back

0:14:37.280 --> 0:14:40.320
<v Speaker 1>is up against the wall and she needs to clear

0:14:40.360 --> 0:14:42.680
<v Speaker 1>her name. And she's now probably one of the most

0:14:42.680 --> 0:14:45.440
<v Speaker 1>despised women in America right now because of this case

0:14:45.520 --> 0:14:48.520
<v Speaker 1>in social media. So this is her one chance and

0:14:48.760 --> 0:14:52.760
<v Speaker 1>as opposed to trying to negotiate a lesser payout and

0:14:52.840 --> 0:14:55.440
<v Speaker 1>exchange for the waves of the feel I do expect

0:14:55.480 --> 0:14:58.640
<v Speaker 1>that appeals to happen, but I don't think the appeal

0:14:58.640 --> 0:15:02.920
<v Speaker 1>will be heard. Will appeal interestful accrue on the judgment

0:15:02.920 --> 0:15:08.600
<v Speaker 1>while that appeals attending. And importantly, because death proved that

0:15:08.680 --> 0:15:13.200
<v Speaker 1>the defamatory statements were intentional, not only heeded a damages,

0:15:13.640 --> 0:15:19.240
<v Speaker 1>but the claims aren't dischargeable in bankrupt So Abho is

0:15:19.280 --> 0:15:22.320
<v Speaker 1>not going to go file after seven or eleven and

0:15:22.400 --> 0:15:25.800
<v Speaker 1>get out of this judgment. This is a non dischargeable judgment.

0:15:25.880 --> 0:15:31.800
<v Speaker 1>No thanks, NeiMa. That's trial lawyer NeiMa Romani. Neither a

0:15:31.840 --> 0:15:34.680
<v Speaker 1>mountain of litigation nor a new pro worker law in

0:15:34.760 --> 0:15:38.920
<v Speaker 1>California have caused sweeping changes in strip clubs, so the

0:15:39.000 --> 0:15:41.880
<v Speaker 1>dancers are turning to unions as a way to improve

0:15:41.920 --> 0:15:45.920
<v Speaker 1>their conditions. Joining me is Aaron mulveney, Bloomberg Law senior

0:15:45.960 --> 0:15:49.640
<v Speaker 1>reporter who has researched and written about this issue. Why

0:15:49.760 --> 0:15:53.640
<v Speaker 1>is there an effort to unionize strippers? The push for

0:15:53.680 --> 0:15:56.800
<v Speaker 1>a union in California um goes back to something that

0:15:56.840 --> 0:16:00.440
<v Speaker 1>actually is a nationwide practice with strip clubs. These answers

0:16:00.480 --> 0:16:04.480
<v Speaker 1>are largely classified. The practices are pretty uniform that they

0:16:04.520 --> 0:16:08.640
<v Speaker 1>would be classified as independent contractors, which on one hand,

0:16:08.880 --> 0:16:11.360
<v Speaker 1>means that all of the tips that the dancers are

0:16:11.480 --> 0:16:13.120
<v Speaker 1>and they get to take home and that's their go

0:16:13.200 --> 0:16:16.560
<v Speaker 1>home pay, and a lot of dancers historically have said

0:16:17.000 --> 0:16:20.040
<v Speaker 1>that that means that they can take home up to

0:16:20.120 --> 0:16:23.880
<v Speaker 1>a fifteen hundred dollars a night. But through hundreds and

0:16:23.960 --> 0:16:27.240
<v Speaker 1>hundreds of lawsuits filed in recent years, there has been

0:16:27.280 --> 0:16:32.720
<v Speaker 1>an issue with that classification because if you're an independent contractor,

0:16:33.360 --> 0:16:37.600
<v Speaker 1>you don't have the right to workers compensation if you're injured,

0:16:38.160 --> 0:16:41.440
<v Speaker 1>and minimum wage over time. And then there are a

0:16:41.480 --> 0:16:46.400
<v Speaker 1>lot of practices that are also problematic where clubs will

0:16:46.600 --> 0:16:50.280
<v Speaker 1>charge stage fees to dance, and so you could technically

0:16:50.360 --> 0:16:52.600
<v Speaker 1>end up in the red if customers don't show up,

0:16:52.720 --> 0:16:54.160
<v Speaker 1>or you don't get tips that night, or you don't

0:16:54.160 --> 0:16:56.520
<v Speaker 1>get a desirable shift. And of course this is a

0:16:56.520 --> 0:16:58.920
<v Speaker 1>broad brush, but there have been many losses over the

0:16:59.000 --> 0:17:02.120
<v Speaker 1>years nationwide that have said that dancers have been exploited,

0:17:02.200 --> 0:17:05.560
<v Speaker 1>have been harassed, have been in really dangerous working conditions,

0:17:05.600 --> 0:17:07.960
<v Speaker 1>and have little rights because of the way they're classified.

0:17:08.400 --> 0:17:12.480
<v Speaker 1>And then into this situation in California, there's a law

0:17:12.960 --> 0:17:15.520
<v Speaker 1>that was passed that makes it much harder for most

0:17:15.560 --> 0:17:18.800
<v Speaker 1>businesses to classify workers this way, and a lot of

0:17:18.840 --> 0:17:22.360
<v Speaker 1>strippers that I spoke to said the strip club haven't

0:17:22.800 --> 0:17:26.639
<v Speaker 1>necessarily changed their practices. And the other thing that's been

0:17:26.680 --> 0:17:29.840
<v Speaker 1>going on is that the pandemic made it much harder

0:17:29.880 --> 0:17:33.399
<v Speaker 1>with the customer base being a lot slower and the

0:17:33.480 --> 0:17:37.040
<v Speaker 1>club's meeting more dancers. And there have just been a

0:17:37.080 --> 0:17:40.080
<v Speaker 1>lot of problems with pushback in the workplace where workers

0:17:40.160 --> 0:17:42.159
<v Speaker 1>don't really feel like they have the same rights or

0:17:42.200 --> 0:17:45.840
<v Speaker 1>respect other workers. And it's things that are sadly very

0:17:45.960 --> 0:17:49.000
<v Speaker 1>entrenched in the system. As far as you know, the

0:17:49.080 --> 0:17:52.680
<v Speaker 1>bad working conditions tell us about some of the problems

0:17:52.680 --> 0:17:55.679
<v Speaker 1>they have on stage, at least for some of the

0:17:55.680 --> 0:18:00.000
<v Speaker 1>strippers who are dancing at some of these clubs. They

0:18:00.080 --> 0:18:04.080
<v Speaker 1>say that there have been unsafe conditions on the stage

0:18:04.080 --> 0:18:07.639
<v Speaker 1>where the stage isn't built properly while they're dancing, or

0:18:07.640 --> 0:18:09.800
<v Speaker 1>there has been glass on the floor that hasn't been

0:18:09.840 --> 0:18:13.600
<v Speaker 1>cleaned up or addressed. Other safety conditions are less direct

0:18:13.680 --> 0:18:17.400
<v Speaker 1>like that, and there might be if a customer across

0:18:17.560 --> 0:18:20.720
<v Speaker 1>the line and they feel like their safety is at risk,

0:18:20.840 --> 0:18:23.880
<v Speaker 1>which I think happens in the stutting where there's alcohol involved,

0:18:23.960 --> 0:18:26.160
<v Speaker 1>and that in the nature of sex work sometimes could

0:18:26.359 --> 0:18:29.199
<v Speaker 1>draw that out. But you know, again, these women or

0:18:29.240 --> 0:18:33.680
<v Speaker 1>men are workers and they deserve respect and protection in

0:18:33.760 --> 0:18:36.360
<v Speaker 1>the workplace just like anybody else. They don't have workers

0:18:36.400 --> 0:18:40.080
<v Speaker 1>comp to fall back on if they get injury. I'm

0:18:40.080 --> 0:18:43.600
<v Speaker 1>wondering if it's harder to unionize strippers as opposed to

0:18:43.640 --> 0:18:47.720
<v Speaker 1>other kinds of workers. You talk to Selena, the president

0:18:47.800 --> 0:18:51.520
<v Speaker 1>of the independent union Strippers United, and she said strippers

0:18:51.520 --> 0:18:55.240
<v Speaker 1>are treated like they aren't valuable, and they've internalized that.

0:18:55.680 --> 0:18:59.760
<v Speaker 1>They don't always see themselves as deserving of rights. What's

0:18:59.760 --> 0:19:03.200
<v Speaker 1>the Lena expressed after speaking with a lot of different

0:19:03.280 --> 0:19:08.679
<v Speaker 1>dancers around the state in California is that they are

0:19:08.680 --> 0:19:13.480
<v Speaker 1>all experiencing similar problems. But the way that these strip

0:19:13.520 --> 0:19:17.000
<v Speaker 1>clubs have operated in the past, dancers, they've often been

0:19:17.000 --> 0:19:21.600
<v Speaker 1>independent and they fear often retaliation if they speak out.

0:19:22.119 --> 0:19:24.159
<v Speaker 1>And so these are things that are really counter to

0:19:24.240 --> 0:19:27.280
<v Speaker 1>what a union is all about, you know, joining together

0:19:27.320 --> 0:19:30.760
<v Speaker 1>as workers. So what the leaders of the union effort

0:19:30.760 --> 0:19:34.639
<v Speaker 1>are trying to do is change the DNA of of

0:19:34.760 --> 0:19:40.000
<v Speaker 1>how these dancers think about themselves as workers and valuing

0:19:40.040 --> 0:19:42.959
<v Speaker 1>themselves and the respect that they deserve, because honestly, there

0:19:42.960 --> 0:19:46.320
<v Speaker 1>wouldn't be strip clubs about these dancers, and they face

0:19:46.400 --> 0:19:48.879
<v Speaker 1>a lot of dangerous working conditions in so many ways.

0:19:48.960 --> 0:19:52.760
<v Speaker 1>But often at least Selina says, she hears a lot

0:19:52.800 --> 0:19:55.840
<v Speaker 1>of stories about more dramatic exploitation than you might hear

0:19:55.880 --> 0:20:00.080
<v Speaker 1>about in other industries. The labor push in Californi and

0:20:00.160 --> 0:20:04.080
<v Speaker 1>it comes against what you, right, is a backdrop of

0:20:04.160 --> 0:20:07.320
<v Speaker 1>a mountain of litigation. Just tell us a little about

0:20:07.359 --> 0:20:12.560
<v Speaker 1>that litigation. Sure, So it also goes back to what

0:20:12.600 --> 0:20:15.639
<v Speaker 1>I was explaining about how a lot of the practices

0:20:15.680 --> 0:20:19.720
<v Speaker 1>around the country rely on independent contractor relationships and that

0:20:19.800 --> 0:20:22.840
<v Speaker 1>has there was kind of a wave of lawsuits that

0:20:22.880 --> 0:20:26.320
<v Speaker 1>we're targeting strip clubs of at the last decade because

0:20:26.560 --> 0:20:30.320
<v Speaker 1>there are violations of the Fair Labor Standards Act potentially,

0:20:30.480 --> 0:20:33.639
<v Speaker 1>and and Austin strippers have won these fights, you know,

0:20:33.760 --> 0:20:37.840
<v Speaker 1>against individual strip clubs and one major settlements around the country,

0:20:37.840 --> 0:20:40.920
<v Speaker 1>and these have been happening pretty frequently. What we see

0:20:40.960 --> 0:20:43.920
<v Speaker 1>though is that, you know, the strip clubs can pay

0:20:43.960 --> 0:20:48.679
<v Speaker 1>a settlement, but practices have largely remained uniform throughout the industry.

0:20:48.760 --> 0:20:51.520
<v Speaker 1>And part of it is because strippers can make a

0:20:51.520 --> 0:20:54.280
<v Speaker 1>lot of take home pay, but with that they lose

0:20:54.280 --> 0:20:57.600
<v Speaker 1>a safety net that like an employment relationship would have.

0:20:57.800 --> 0:21:00.800
<v Speaker 1>So you have lawsuits on one hand, but you're not

0:21:00.920 --> 0:21:04.000
<v Speaker 1>seeing dramatic change in the industry. Over the years, several

0:21:04.040 --> 0:21:07.280
<v Speaker 1>courts have ruled that strippers are legally employees under wage

0:21:07.320 --> 0:21:11.040
<v Speaker 1>and our laws, not independent contractors. But are you saying

0:21:11.040 --> 0:21:15.080
<v Speaker 1>that the strip clubs don't honor that right? And there

0:21:15.119 --> 0:21:17.920
<v Speaker 1>are so many strip clubs. There are major franchises though,

0:21:18.000 --> 0:21:21.440
<v Speaker 1>for example, um one of the largest is Deja Vu,

0:21:21.640 --> 0:21:25.040
<v Speaker 1>and I spoke with the CEO of that company and

0:21:25.080 --> 0:21:28.159
<v Speaker 1>what he has told me before is in the settlements

0:21:28.600 --> 0:21:31.560
<v Speaker 1>where a court has ruled or settled that they do

0:21:31.680 --> 0:21:34.760
<v Speaker 1>need to change their classification to employees. So many of

0:21:34.800 --> 0:21:39.600
<v Speaker 1>his competitors do not change their classification and he loses

0:21:39.720 --> 0:21:42.840
<v Speaker 1>dancers or the club isn't profitable enough. So I think

0:21:42.880 --> 0:21:45.840
<v Speaker 1>would need to happen on a broader scale in order

0:21:45.920 --> 0:21:49.200
<v Speaker 1>to completely change Can you give us a little more

0:21:49.280 --> 0:21:54.280
<v Speaker 1>detail about why legislation isn't the answer? So for this article,

0:21:54.359 --> 0:21:57.400
<v Speaker 1>I spoke with a lot of attorneys who hear from

0:21:57.400 --> 0:22:00.760
<v Speaker 1>strippers and dancers themselves, and strip club opera waters and

0:22:00.800 --> 0:22:03.760
<v Speaker 1>so I can't speak for every single strip club in California,

0:22:03.880 --> 0:22:06.800
<v Speaker 1>but the state law that was intended to change my

0:22:06.920 --> 0:22:11.399
<v Speaker 1>classification to contractors, according to these people, these stakeholders that

0:22:11.440 --> 0:22:17.280
<v Speaker 1>I spoke to haven't necessarily changed their practices. They'll create

0:22:17.359 --> 0:22:22.639
<v Speaker 1>contracts to make dancers owners of the club or charge

0:22:22.680 --> 0:22:27.000
<v Speaker 1>them for rent time on the stage, and arguably those

0:22:27.040 --> 0:22:31.080
<v Speaker 1>could be subject to a lawsuit, but they might be

0:22:31.119 --> 0:22:34.359
<v Speaker 1>too small to be worth it to a plainists firm,

0:22:34.400 --> 0:22:36.359
<v Speaker 1>and that would be the way that that would be enforced.

0:22:36.440 --> 0:22:38.840
<v Speaker 1>So yes, I think that a lot of strip clubs

0:22:38.840 --> 0:22:41.439
<v Speaker 1>haven't changed their practices, even in California where there are

0:22:41.520 --> 0:22:44.480
<v Speaker 1>much stricter worker protections currently, and a lot of the

0:22:44.600 --> 0:22:50.360
<v Speaker 1>dancers who have become employees are finding themselves with part

0:22:50.400 --> 0:22:53.040
<v Speaker 1>time work as opposed to getting to work longer and

0:22:53.080 --> 0:22:56.120
<v Speaker 1>make more money potentially, and they'll have to be scheduled,

0:22:56.280 --> 0:22:59.520
<v Speaker 1>they might not get a desirable time. So Selena, for example,

0:22:59.560 --> 0:23:02.000
<v Speaker 1>told me that she thinks things have gotten worse to

0:23:02.119 --> 0:23:05.520
<v Speaker 1>some extent for the dancers. Let's talk about the other

0:23:05.560 --> 0:23:08.840
<v Speaker 1>side of the story, because you talked to some strip

0:23:08.880 --> 0:23:13.000
<v Speaker 1>club operators and tell us what they claim about clubs

0:23:13.240 --> 0:23:17.600
<v Speaker 1>shutting down and people losing out on work. So the

0:23:17.640 --> 0:23:20.040
<v Speaker 1>CEO of Deja Zu spoke to me, and that's one

0:23:20.080 --> 0:23:22.640
<v Speaker 1>of the largest strip club operators in the US, and

0:23:22.960 --> 0:23:26.720
<v Speaker 1>he said seven of his clubs in California became unprofitable

0:23:26.920 --> 0:23:28.919
<v Speaker 1>and after the new law that we were discussing in

0:23:28.960 --> 0:23:33.800
<v Speaker 1>California and after settlements required him to classify dancers as employees,

0:23:34.280 --> 0:23:37.120
<v Speaker 1>and dancers of those clubs only get part time shifts,

0:23:37.160 --> 0:23:40.280
<v Speaker 1>which obviously is less ideal than a full employment um

0:23:40.480 --> 0:23:42.879
<v Speaker 1>job and relationship, because that's when you would get access

0:23:42.920 --> 0:23:46.600
<v Speaker 1>to full benefits. He also spoke of losing dancers to

0:23:46.640 --> 0:23:51.320
<v Speaker 1>competitors who still have the traditional independent contractor relationship, and

0:23:51.720 --> 0:23:55.680
<v Speaker 1>from his perspective, he thinks that the employment model doesn't

0:23:55.720 --> 0:24:00.040
<v Speaker 1>offer what the strip club business needs, including for the

0:24:00.119 --> 0:24:04.000
<v Speaker 1>dancers themselves. Has there ever been a unionized strip club? Yes,

0:24:05.280 --> 0:24:08.800
<v Speaker 1>there was an effort in San Francisco and a strip

0:24:08.840 --> 0:24:12.359
<v Speaker 1>club called The Lusty Lady was the first unionized club

0:24:12.440 --> 0:24:16.600
<v Speaker 1>in the United States. It really stood alone, but it

0:24:16.640 --> 0:24:19.160
<v Speaker 1>did show that it was possible. It closed in two

0:24:19.160 --> 0:24:22.919
<v Speaker 1>thousand thirteen and there hasn't been another one since until

0:24:23.160 --> 0:24:26.120
<v Speaker 1>this recent push at this club in Los Angeles. Yeah,

0:24:26.119 --> 0:24:29.600
<v Speaker 1>so why did they target this particular club? Star Garden

0:24:29.720 --> 0:24:33.280
<v Speaker 1>Topless Dive Bar. I did have the opportunity to talk

0:24:33.320 --> 0:24:36.800
<v Speaker 1>to someone who worked at Star Garden. She asked me

0:24:36.840 --> 0:24:40.120
<v Speaker 1>to go by her stage named Lilith, and Lilith had

0:24:40.160 --> 0:24:43.399
<v Speaker 1>an experience that speaks to why it could be difficult

0:24:43.600 --> 0:24:47.040
<v Speaker 1>to unionize these strip clubs. She said that she did

0:24:47.160 --> 0:24:50.479
<v Speaker 1>notice problems but didn't speak to her other co workers

0:24:50.520 --> 0:24:53.919
<v Speaker 1>about them. And then there were a few things that

0:24:53.960 --> 0:24:57.679
<v Speaker 1>they claim happened where they felt that very prominent dancers

0:24:57.680 --> 0:25:03.160
<v Speaker 1>were retaliated against for speaking about safety conditions or unruly customers,

0:25:03.520 --> 0:25:06.159
<v Speaker 1>and they were fired and not given shifts. Any longer.

0:25:06.600 --> 0:25:10.520
<v Speaker 1>And she said those incidents sparked these dancers to come

0:25:10.560 --> 0:25:13.879
<v Speaker 1>together and to talk about things that they had in common.

0:25:14.359 --> 0:25:17.600
<v Speaker 1>And Selena said that it was the first good effort

0:25:17.680 --> 0:25:20.840
<v Speaker 1>because they were a small group of tight knit group

0:25:21.040 --> 0:25:23.680
<v Speaker 1>and they kind of had the passion to understand what

0:25:24.160 --> 0:25:27.480
<v Speaker 1>a union could possibly do to improve their conditions. And

0:25:27.640 --> 0:25:29.760
<v Speaker 1>they sent a petition to the owners which they felt

0:25:29.800 --> 0:25:33.800
<v Speaker 1>like was not received, and they started picketing and they've

0:25:33.800 --> 0:25:35.920
<v Speaker 1>been doing that UM for the last couple of months

0:25:36.160 --> 0:25:40.439
<v Speaker 1>in the hopes of being the first union since that effort.

0:25:40.840 --> 0:25:43.560
<v Speaker 1>And I think that the hope for Stripes United, which

0:25:43.560 --> 0:25:46.919
<v Speaker 1>is the kind of the grassroots independent labor organization for

0:25:46.960 --> 0:25:51.000
<v Speaker 1>these strippers, is that this union will show others that

0:25:51.040 --> 0:25:53.600
<v Speaker 1>it's possible to join together and start trying to change

0:25:53.600 --> 0:25:56.040
<v Speaker 1>the brain chemistry of some of the dancers who were

0:25:56.040 --> 0:25:59.159
<v Speaker 1>so used to being independent and autonomous. Karin, what do

0:25:59.200 --> 0:26:00.960
<v Speaker 1>they have to do? Do you know what the next

0:26:01.000 --> 0:26:05.240
<v Speaker 1>step is toward forming a union. They'll have to go

0:26:05.320 --> 0:26:09.399
<v Speaker 1>through the traditional UM process through the National Labor Relations Board,

0:26:09.560 --> 0:26:12.360
<v Speaker 1>and they'll have to go through a union election, and

0:26:12.359 --> 0:26:14.359
<v Speaker 1>and they're in the early stages of that process and

0:26:14.359 --> 0:26:17.000
<v Speaker 1>getting it together. It's definitely the early stage of the

0:26:17.080 --> 0:26:21.320
<v Speaker 1>union effort. As far as class actions, they have been

0:26:21.400 --> 0:26:24.440
<v Speaker 1>successful in the past, but people are not bringing them anymore,

0:26:24.800 --> 0:26:28.040
<v Speaker 1>not necessarily, we're still seeing them nationwide. I spoke to

0:26:28.119 --> 0:26:30.600
<v Speaker 1>a couple of plaintiffs attorneys who have brought these cases

0:26:30.600 --> 0:26:33.840
<v Speaker 1>in the past and still here from dancers, and they

0:26:33.960 --> 0:26:36.639
<v Speaker 1>won major settlements against some of the major operators. But

0:26:37.119 --> 0:26:40.919
<v Speaker 1>these attorneys speculated that a lot of the smaller operators

0:26:40.960 --> 0:26:44.000
<v Speaker 1>could be falling through the cracks potentially based on the

0:26:44.080 --> 0:26:47.200
<v Speaker 1>dancers stories, and if they're small enough clubs, they might

0:26:47.200 --> 0:26:50.520
<v Speaker 1>not be worth it to some of the larger plaintiffs

0:26:50.560 --> 0:26:53.440
<v Speaker 1>firms that would bring a class action case because it's

0:26:53.480 --> 0:26:56.560
<v Speaker 1>not a big operator that has a twenty clubs that

0:26:56.640 --> 0:26:58.800
<v Speaker 1>they run, and that would mean that many more dancers

0:26:58.800 --> 0:27:00.440
<v Speaker 1>that could be part of it, and that that much

0:27:00.480 --> 0:27:04.480
<v Speaker 1>more of a large settlement. So I think that's potentially

0:27:04.560 --> 0:27:07.240
<v Speaker 1>the speculation at this point. We saw a lot of

0:27:07.280 --> 0:27:10.439
<v Speaker 1>major settlements in two thousand nineteen, and there are some

0:27:10.480 --> 0:27:14.399
<v Speaker 1>indications that that has flowed since in California specifically, but

0:27:14.440 --> 0:27:17.080
<v Speaker 1>we have seen major settlements around the country that are

0:27:17.119 --> 0:27:20.240
<v Speaker 1>brought under the Federal Labor laws those are still continuing.

0:27:20.560 --> 0:27:23.440
<v Speaker 1>Are they just trying to unionize in California or are

0:27:23.440 --> 0:27:26.560
<v Speaker 1>they trying to unionize in some of the other states

0:27:26.600 --> 0:27:30.359
<v Speaker 1>where they've had, you know, large settlements. Currently, I only

0:27:30.400 --> 0:27:33.640
<v Speaker 1>know of California and this effort. It's partially because of this,

0:27:33.960 --> 0:27:37.440
<v Speaker 1>this grassroots group that has really focused for for many

0:27:37.520 --> 0:27:41.280
<v Speaker 1>years on trying to on trying to bring dancers together.

0:27:41.800 --> 0:27:45.199
<v Speaker 1>What I find really sad is that in your story,

0:27:45.320 --> 0:27:48.600
<v Speaker 1>so many dancers don't want to be identified by their

0:27:48.640 --> 0:27:54.480
<v Speaker 1>real name because they fear retaliation. Absolutely. What I hear

0:27:55.520 --> 0:27:58.040
<v Speaker 1>is that they fear retaliation from the club owners or

0:27:58.080 --> 0:28:02.560
<v Speaker 1>the industry. Other dancers. They are willing to talk to

0:28:02.600 --> 0:28:05.120
<v Speaker 1>the press, but they've also been abused by the press

0:28:05.160 --> 0:28:07.080
<v Speaker 1>in a lot of ways, and I think that that

0:28:07.240 --> 0:28:10.560
<v Speaker 1>is a reality of people not really always seeing sex

0:28:10.720 --> 0:28:14.520
<v Speaker 1>workers as workers. But they don't dislike their jobs, they

0:28:14.560 --> 0:28:19.240
<v Speaker 1>dislike being treated as lesser and so I think that

0:28:19.800 --> 0:28:22.640
<v Speaker 1>right now, the reason that they asked me to call

0:28:22.680 --> 0:28:26.040
<v Speaker 1>them by their stage names, I respected because they said

0:28:26.040 --> 0:28:29.080
<v Speaker 1>they could experience retaliation from strip clubs, and that's the

0:28:29.119 --> 0:28:31.720
<v Speaker 1>work that they're trying to do right now. Thanks Sarah,

0:28:32.160 --> 0:28:35.919
<v Speaker 1>that's Bloomberg Law Senior Reporter Aaron mulvaney, and that's it

0:28:36.000 --> 0:28:38.600
<v Speaker 1>for this edition of The Bloomberg Law Show. Remember you

0:28:38.600 --> 0:28:41.080
<v Speaker 1>can always get the latest legal news on our Bloomberg

0:28:41.160 --> 0:28:44.920
<v Speaker 1>Law Podcast. You can find them on Apple Podcasts, Spotify,

0:28:44.960 --> 0:28:49.960
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0:28:50.400 --> 0:28:53.000
<v Speaker 1>And remember to tune into The Bloomberg Law Show every

0:28:53.040 --> 0:28:56.520
<v Speaker 1>week night at ten pm Wall Street Time. I'm June

0:28:56.520 --> 0:28:58.680
<v Speaker 1>Grosso and you're listening to Bloomberg