WEBVTT - Trump Loses Dismissal Attempt & Bridge Collapse

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 2>Remember when Donald Trump said as president he could declassified

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<v Speaker 2>documents by thinking about it.

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<v Speaker 3>If you're the president of the United States, you can

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<v Speaker 3>declassify just by saying it's stay classified, even by thinking

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<v Speaker 3>about it, because you're sending it to mar a Lago

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<v Speaker 3>or to wherever you're sending it, and there doesn't have

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<v Speaker 3>to be a process. There can be a process, but

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<v Speaker 3>there doesn't have to be you're the president. You make

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<v Speaker 3>that decision, so when you send it, it's steak Classwick.

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<v Speaker 2>Well, the judge handling the criminal classified documents case against

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<v Speaker 2>the former president, seems to be buying into that to

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<v Speaker 2>some extent, and Special Counsel Jack Smith appears to be

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<v Speaker 2>at the end of his rope with Judge Eileen Cannon.

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<v Speaker 2>He took the Trump appointee to task in an almost

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<v Speaker 2>scolding response to her request for jury instructions in the matter,

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<v Speaker 2>with an unto subtle indication that he might have to

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<v Speaker 2>go to the Eleventh Circuit, which has reversed Kenon twice

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<v Speaker 2>in the past. The judge came back quickly today with

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<v Speaker 2>an order that's part win, part loss for the Special Council.

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<v Speaker 2>Joining me is former federal prosecutor Robert Mintz, a partner

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<v Speaker 2>maccarter in English, Bob, Before we get into all the details,

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<v Speaker 2>I'd like you to explain what I think is one

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<v Speaker 2>of the most off the wall claims by Trump that

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<v Speaker 2>he transformed national security documents into his own personal property

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<v Speaker 2>under the Presidential Records Act, and the prosecutors wrote that

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<v Speaker 2>it would be pure fiction to suggest that highly classified

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<v Speaker 2>documents created by members of the intelligence community and military

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<v Speaker 2>and presented to the President of the United States during

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<v Speaker 2>his term in office were purely private. Yeah.

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<v Speaker 1>So what has prosecutors so incensed here is that the

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<v Speaker 1>judge is fixating on the Presidential Record Act, which is,

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<v Speaker 1>according to prosecutors, a law that has absolutely nothing whatsoever

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<v Speaker 1>to do with this case. And what they're concerned about

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<v Speaker 1>is that if the judge gives an instruction about the

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<v Speaker 1>Presidential Record back to a curate, it essentially nudges them,

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<v Speaker 1>potentially towards an acquittal or possibly even leaving the door

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<v Speaker 1>open for the judge herself to acquit the former president

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<v Speaker 1>at the end of the proceeding by declaring that the

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<v Speaker 1>government has failed to prove its case and the.

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<v Speaker 2>Special counsel not only attacks this on the law, but

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<v Speaker 2>also on the facts, and he lays out all the

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<v Speaker 2>facts showing that Trump did not designate the documents as

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<v Speaker 2>personal while he was in office, and also when and

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<v Speaker 2>how he quote invented the theory that they were personal

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<v Speaker 2>for the first time in February of twenty twenty two.

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<v Speaker 1>Well, what prosecutors have done is essentially argues that this

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<v Speaker 1>is a last minute argument and that there's no factual

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<v Speaker 1>basis in the record whatsoever to even support a claim

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<v Speaker 1>that these records were protected by the Presidential Records Act.

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<v Speaker 1>The Presidential Records Act was an active post Watergate to

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<v Speaker 1>clarify what records belonged to the president and what records

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<v Speaker 1>belonged to the public, and the idea was to restrict

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<v Speaker 1>very clearly the types of records that a president could

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<v Speaker 1>remove from the White House when they left office, and

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<v Speaker 1>the Presidential Records Acts make very clear that only purely

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<v Speaker 1>personal records, records relating to the president's personal activities, health records,

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<v Speaker 1>records related to the president's family, those types of personal records,

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<v Speaker 1>those could be removed, But any records relating to the public,

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<v Speaker 1>such as national security, national policy, anything related to the

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<v Speaker 1>function of the president acting as president. Those records belonged

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<v Speaker 1>to the White House and were not permitted to be

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<v Speaker 1>removed under the Presidential Records Act. What the defense here

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<v Speaker 1>is trying to argue is that former President Trump transformed

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<v Speaker 1>those records, which are clearly public in nature, into personal

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<v Speaker 1>records merely by removing them and taking them to mar

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<v Speaker 1>A Lago. They're not even suggesting that at any point

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<v Speaker 1>in time former President Trump had designated them as personal

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<v Speaker 1>under the Presidential Records Act. And prosecutors pointed to the

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<v Speaker 1>fact that they interviewed all of the people who were

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<v Speaker 1>involved in those records in the White House at the time,

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<v Speaker 1>and none of them recall any reference to those records

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<v Speaker 1>being related to the Presidential Records Act. So the defense

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<v Speaker 1>argument goes that simply because they were removed and brought

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<v Speaker 1>to maur A Lago, they were transformed into personal records.

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<v Speaker 1>That's something that the prostitution think is absurd on his face,

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<v Speaker 1>and even injecting that question into the trial and getting

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<v Speaker 1>in front of the jury would be highly prejudicial to prosecutors.

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<v Speaker 2>The Special Council's response seems especially harsh. They flatly say

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<v Speaker 2>the judge got it wrong repeatedly. Quote both of the

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<v Speaker 2>court scenarios are fundamentally flawed. In any jury instructions that

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<v Speaker 2>reflect those scenarios would be error. Sort of a scolding tone.

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<v Speaker 1>Yeah, prosecutors are taking a very aggressive approach with the

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<v Speaker 1>judge here, but I think in their minds they have

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<v Speaker 1>no choice because the judge has yet to make a

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<v Speaker 1>decision on so many important motions that are still pending

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<v Speaker 1>before her, and those could affect the trial going forward.

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<v Speaker 2>And the special counsel sort of gave her a nudge

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<v Speaker 2>about a Trump motion to dismiss based on the Presidential

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<v Speaker 2>Records Act that she had not ruled on yet, and

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<v Speaker 2>lo and behold, she ruled on it today, denying Trump's

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<v Speaker 2>motion to dismiss based on the Presidential Records Act.

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<v Speaker 1>So what the Trump defense team had asked the judge

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<v Speaker 1>to do is to throw out the indictment all together

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<v Speaker 1>based upon the Presidential Records Act, arguing that the fact

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<v Speaker 1>that President Trump had removed those records from the White

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<v Speaker 1>House as an indication that he had deemed them to

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<v Speaker 1>be personal records, and that as a matter of law,

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<v Speaker 1>that was enough to dismiss the indictment and there would

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<v Speaker 1>be no trial. Today's ruling is very limited. What it

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<v Speaker 1>does is it says there will be a trial. It says,

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<v Speaker 1>at least as far as the Presidential Records Act goes,

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<v Speaker 1>that is not a basis to dismiss this indictment. But

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<v Speaker 1>she does leave open the door to dealing with this

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<v Speaker 1>issue at some point later down the road. She simply says,

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<v Speaker 1>the Presidential Records Act is not a basis to dismiss

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<v Speaker 1>this indictment pre trial, but it leaves the possibility that

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<v Speaker 1>the defense will raise this issue at some point during

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<v Speaker 1>the trial. And this whole question about whether the jury

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<v Speaker 1>will be instructed on the Presidential Records Act and whether

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<v Speaker 1>or not has any relevance whatsoever to the trial has

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<v Speaker 1>been left open to be decided on another day.

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<v Speaker 2>She pushes back on Smith's challenge to her request for

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<v Speaker 2>jury instructions on the Presidential Records Act. She says, separately,

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<v Speaker 2>to the extent the Special Council demands an anticipatory finalization

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<v Speaker 2>of jury instructions prior to trial, prior to a charge conference,

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<v Speaker 2>and prior to the presentation of trial defenses and evidence.

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<v Speaker 2>The Court declines that demand as unprecedented and unjust. Is

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<v Speaker 2>his demand to know whether or not she's going to

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<v Speaker 2>allow this defense unprecedented and unjust.

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<v Speaker 1>Well, what Jackspaths trying to do is to smoke the

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<v Speaker 1>judge out on this issue and get a decision one

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<v Speaker 1>way or the other, because of what prosecutors don't want

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<v Speaker 1>to have happened is that the jury gets in paneled,

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<v Speaker 1>the trial begins, and then this issue is decided, because

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<v Speaker 1>at that point, once the jury is impaneled, double jeopardy

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<v Speaker 1>attacks and prosecutors will not be able to appeal that decision.

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<v Speaker 1>If ultimately Judge Cannon decides that the presidential record is

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<v Speaker 1>a viable defense, prosecutors know that that would be the

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<v Speaker 1>death knell for their case because it would essentially tell

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<v Speaker 1>jurors that simply designating records as personal is enough to

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<v Speaker 1>avoid the Espionage Act, and it would entirely get the prosecution.

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<v Speaker 1>So prosecutors are trying to get the judge to go

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<v Speaker 1>on record one way or the other on this issue,

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<v Speaker 1>and all she's done so far is to say it

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<v Speaker 1>is not something that will prevent this trial from going forward.

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<v Speaker 1>But she's leaving the possibility that the Presidential Records Act

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<v Speaker 1>will still be an issue down the road, and that's

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<v Speaker 1>something that is going to have prosecutors very concerned, Bob.

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<v Speaker 2>Isn't the prosecution entitled to know which defenses the judge

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<v Speaker 2>will allow before the trial?

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<v Speaker 1>Generally speaking, that's true. Prosecutors have the right to know

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<v Speaker 1>what the defenses are going to be so that they

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<v Speaker 1>can appeal them if they believe that they have no

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<v Speaker 1>application to the case at all. Obviously, defenses are based

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<v Speaker 1>upon evidence, and so to the extent that the defense

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<v Speaker 1>can raise evidence to suggest that there's some applicability to

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<v Speaker 1>the Presidential Records Act to this case, they'd be allowed

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<v Speaker 1>to raise that defense. But what prosecutors are saying is

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<v Speaker 1>they've interviewed all these witnesses and nobody has said that

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<v Speaker 1>President Trump ever designated any of these records personal under

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<v Speaker 1>the Presidential Records Act. So they're saying there is no

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<v Speaker 1>basis in law and no basis in fact to raise

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<v Speaker 1>this defense, and they want the judge to go on

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<v Speaker 1>record one way or the other whether she's going to

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<v Speaker 1>allow it, and so far, she has resisted that attempt

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<v Speaker 1>by prosecutors to pin her down on this issue.

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<v Speaker 2>And in a final sentence, in response to the Special

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<v Speaker 2>Counsel's threat of going to the eleventh Circuit. She says,

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<v Speaker 2>as always, any party remains free to avail itself of

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<v Speaker 2>whatever appellate options it sees fit to invoke, as permitted

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<v Speaker 2>by law. So the Special Council won this order. In theory,

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<v Speaker 2>can Jack Smith go to the Eleventh Circuit and try

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<v Speaker 2>to get Judge Canon remove from the case.

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<v Speaker 1>Well, I think prosecutors are going back to the war

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<v Speaker 1>room right now and trying to decide how to respond

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<v Speaker 1>to this decision because they got a ruling, but they

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<v Speaker 1>didn't get the ruling they want because it's only preliminary

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<v Speaker 1>and it doesn't really ultimately decide the question of presidential

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<v Speaker 1>records acting whether or not it will be a part

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<v Speaker 1>of this trial, and I think prosecutors have to come

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<v Speaker 1>up with a way to try to bring this issue

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<v Speaker 1>to the Court of Appeals if they can, or to

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<v Speaker 1>force the judge to make that decision at some point

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<v Speaker 1>prior to the trial. As long as she makes the

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<v Speaker 1>decision before the jury's channeled, that gives prosecutors the opportunity

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<v Speaker 1>to immediately appeal that case up to the Eleventh Circuit.

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<v Speaker 1>That still, however, does raise the prospect if she waits

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<v Speaker 1>until just prior to trial to address this issue that

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<v Speaker 1>the trial will be delayed, and then that could push

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<v Speaker 1>the trial back after November. So prosecutors are dealing not

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<v Speaker 1>only with trying to get this decision piify, but they

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<v Speaker 1>also want to get the decision clarified as soon as

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<v Speaker 1>possible so that they don't have an appellate delay that

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<v Speaker 1>ultimately pushes the trial after November.

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<v Speaker 2>Okay, stay with me, Bob. Coming up next, we're going

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<v Speaker 2>to be talking about Trump's hush money trial. Trump has

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<v Speaker 2>now made eight requests to postpone the trials start, and

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<v Speaker 2>Manhattan Judge Jan Mr. Shawn rejected his latest motion to

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<v Speaker 2>postpone until after the Supreme Court determines whether he has

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<v Speaker 2>immunity from prosecution in a different criminal case. I'm June

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<v Speaker 2>Grosso and you're listening to Bloomberg. Federal Judge Eileen Cannon

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<v Speaker 2>denied Donald Trump's bid to get criminal charges in the

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<v Speaker 2>classified Documents case drop by claiming that the top secret

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<v Speaker 2>records found that his Florida home were personal. The Special

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<v Speaker 2>Council had vented frustration with the judge after she asked

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<v Speaker 2>both sides for jury instructions on the Presidential Records Act

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<v Speaker 2>before setting a trial date, saying her understanding of key

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<v Speaker 2>legal issues appeared to be fundamentally flawed. However, Canon refused

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<v Speaker 2>the Special Counsel's request that she explicitly say the Presidential

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<v Speaker 2>Records Act won't come up in the trial. I've been

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<v Speaker 2>talking to former federal prosecutor Robert Mintz of Macarter and

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<v Speaker 2>English Bob. Judge Canon has many critics because of several

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<v Speaker 2>decisions that don't seem grounded in the law or the facts.

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<v Speaker 1>Well, it's hard to say what's going on behind the scenes,

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<v Speaker 1>but I can tell you, based upon many years of experience,

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<v Speaker 1>that the way the judges handling this case procedurally is unusual. Typically,

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<v Speaker 1>judges will go through a very orderly process in bringing

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<v Speaker 1>a case to trial by resolving these motions to dismiss,

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<v Speaker 1>then moving on to any other motions affecting the evidence

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<v Speaker 1>that could be admitted during the course of the trial,

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<v Speaker 1>dealing with dury instructions. There's an order to which these

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<v Speaker 1>things typically go, and she seems to be taking them

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<v Speaker 1>out of order, and that's creating a lot of chaos

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<v Speaker 1>for the prosecution. And there are risks here that if

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<v Speaker 1>these decisions are not made and are not made soon,

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<v Speaker 1>that this case may not go to trial until after

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<v Speaker 1>the November election, and that is something that has prosecutors

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<v Speaker 1>greatly worried.

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<v Speaker 2>The Special Council also alluded to seeking a rid of

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<v Speaker 2>mandamus from the Appeals Court in his citations.

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<v Speaker 1>Yeah, prosecutors have alluded to filing a rid of mandamus,

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<v Speaker 1>which is essentially a remedy that can be used to

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<v Speaker 1>compel a lower court to perform an act that is

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<v Speaker 1>ministerial in nature and that the court has a clear

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<v Speaker 1>duty to do under the law. In this case, prosecutors

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<v Speaker 1>are trying to get the judge to make decisions about

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<v Speaker 1>all of these pending motions because they can't appeal those

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<v Speaker 1>decisions until those decisions are made. And the longer the

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<v Speaker 1>judge sits on those decisions and doesn't rule on them,

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<v Speaker 1>the more it jeopardizes this case going to trial before

0:13:59.520 --> 0:14:02.400
<v Speaker 1>the Novment election. So they are getting more and more

0:14:02.480 --> 0:14:05.160
<v Speaker 1>frustrated with the pace of this case and are now

0:14:05.240 --> 0:14:08.080
<v Speaker 1>threatening to take that up to the Court of Appeals

0:14:08.080 --> 0:14:11.440
<v Speaker 1>and essentially argue that this judge has failed in a

0:14:11.520 --> 0:14:15.280
<v Speaker 1>procedural way, not what she ruled, but the fact that

0:14:15.320 --> 0:14:18.280
<v Speaker 1>she has simply failed to rule on motions in a

0:14:18.320 --> 0:14:19.120
<v Speaker 1>timely manner.

0:14:19.440 --> 0:14:22.080
<v Speaker 2>They've threatened to go to the Eleventh Circuit with some

0:14:22.200 --> 0:14:26.520
<v Speaker 2>of her other decisions in the case, and the Eleventh

0:14:26.560 --> 0:14:28.640
<v Speaker 2>Circuit has reversed her Yes.

0:14:28.680 --> 0:14:32.280
<v Speaker 1>Well, as you point out, Judge Cannon was reduced by

0:14:32.280 --> 0:14:36.200
<v Speaker 1>the Eleventh Circuit in an earlier related proceeding back in

0:14:36.280 --> 0:14:40.640
<v Speaker 1>twenty twenty two, when former President Trump brought a lawsuit

0:14:40.640 --> 0:14:45.760
<v Speaker 1>attacking the FBI's document investigation. In that lawsuit, Judge Cannon

0:14:45.840 --> 0:14:49.960
<v Speaker 1>granted what was an extraordinary request by former President Trump

0:14:50.000 --> 0:14:53.840
<v Speaker 1>for a third party to review the FBI's twenty twenty

0:14:53.840 --> 0:14:57.680
<v Speaker 1>two search of his Mar Lago resort for classified documents.

0:14:57.720 --> 0:15:01.000
<v Speaker 1>But basically happens when a search warrant is executed. As

0:15:01.040 --> 0:15:04.480
<v Speaker 1>a federal agents come in, they remove the documents that

0:15:04.560 --> 0:15:07.680
<v Speaker 1>are within the scope of the search warrant. Those documents

0:15:07.680 --> 0:15:10.840
<v Speaker 1>are brought back to SBI headquarters and then they're reviewed

0:15:10.880 --> 0:15:14.640
<v Speaker 1>by prosecutors to determine the evidentiary value. In a case

0:15:14.800 --> 0:15:19.560
<v Speaker 1>in which there's the potential for privileged information to be

0:15:19.640 --> 0:15:22.680
<v Speaker 1>mixed in with those documents, prosecutors will set up a

0:15:22.800 --> 0:15:26.360
<v Speaker 1>separate team of lawyers not involved in the case to

0:15:26.440 --> 0:15:30.120
<v Speaker 1>review the documents, and they then remove anything that could

0:15:30.120 --> 0:15:34.920
<v Speaker 1>be considered privileged while walling off the prosecution team from

0:15:34.960 --> 0:15:38.600
<v Speaker 1>ever receiving knowledge of any of that information that is

0:15:38.640 --> 0:15:40.840
<v Speaker 1>between an attorney and a client and should not be

0:15:40.880 --> 0:15:45.680
<v Speaker 1>available to prosecutors. In that case, Judge Cannon ordered what

0:15:45.800 --> 0:15:51.280
<v Speaker 1>was an extraordinary and unprecedented decision where she ordered that

0:15:51.440 --> 0:15:55.320
<v Speaker 1>an independent monitor, in other words, somebody separate apart from

0:15:55.320 --> 0:15:57.560
<v Speaker 1>the Department of Justice, had to be brought in to

0:15:57.680 --> 0:16:00.880
<v Speaker 1>review those documents. There was no base in law and

0:16:00.920 --> 0:16:05.560
<v Speaker 1>no basis in precedent for inserting that additional layer of review.

0:16:05.880 --> 0:16:08.120
<v Speaker 1>She relied on the fact that because it was a

0:16:08.240 --> 0:16:12.680
<v Speaker 1>search of a former president's residence, that it somehow required

0:16:12.720 --> 0:16:16.680
<v Speaker 1>an additional level of scrutiny. The Eleventh Circuit looked at

0:16:16.680 --> 0:16:20.240
<v Speaker 1>that issue and immediately reversed to ruling on that and

0:16:20.320 --> 0:16:24.880
<v Speaker 1>rebuked her for essentially creating a layer of protection for

0:16:24.960 --> 0:16:27.440
<v Speaker 1>a former president that would not apply to any other

0:16:27.480 --> 0:16:28.640
<v Speaker 1>citizen of this country.

0:16:29.640 --> 0:16:32.920
<v Speaker 2>Some legal experts say, well, there's a risk in doing this,

0:16:33.120 --> 0:16:37.000
<v Speaker 2>but as I mentioned, the Special Council has threatened to

0:16:37.280 --> 0:16:40.800
<v Speaker 2>go to the Eleventh Circuit before with Judge Kenon, do

0:16:40.840 --> 0:16:46.160
<v Speaker 2>you see any risk in the way this document is worded,

0:16:46.560 --> 0:16:49.360
<v Speaker 2>or the tone or saying we want to go to

0:16:49.360 --> 0:16:50.200
<v Speaker 2>the Eleventh Circuit.

0:16:50.560 --> 0:16:52.680
<v Speaker 1>But I think what procecutes are doing or they are

0:16:52.720 --> 0:16:55.800
<v Speaker 1>trying to ratchet up the pressure on the judge and

0:16:55.840 --> 0:16:58.520
<v Speaker 1>they're making it known to the judge that they will

0:16:58.560 --> 0:17:01.640
<v Speaker 1>not hesitate to take this case the Eleventh Circuit. The

0:17:01.760 --> 0:17:06.159
<v Speaker 1>judge was already rebuked in that prior case, and no

0:17:06.280 --> 0:17:08.879
<v Speaker 1>doubt the judge is mindful of trying to get this

0:17:09.160 --> 0:17:12.359
<v Speaker 1>right and not being overturned by the Eleventh Circuit. So

0:17:12.400 --> 0:17:16.040
<v Speaker 1>I think cross secutors are trying, in the strongest words possible,

0:17:16.160 --> 0:17:19.240
<v Speaker 1>to state to the judge, judge, rightly or wrongly, you've

0:17:19.240 --> 0:17:22.240
<v Speaker 1>got to make these decisions because if we think you're wrong,

0:17:22.600 --> 0:17:24.200
<v Speaker 1>we are going to go up to the Eleventh Circuit

0:17:24.240 --> 0:17:26.639
<v Speaker 1>and get that review. And they don't want the clock

0:17:26.720 --> 0:17:28.560
<v Speaker 1>to run out before they have that opportunity.

0:17:29.160 --> 0:17:33.520
<v Speaker 2>So let's turn to the hush money case in New York,

0:17:33.560 --> 0:17:37.119
<v Speaker 2>which is now the first criminal case that's actually scheduled

0:17:37.160 --> 0:17:41.200
<v Speaker 2>to go to trial. Trump has now made eight various

0:17:41.240 --> 0:17:45.880
<v Speaker 2>requests to postpone the trial start, and yesterday Judge Wan

0:17:46.000 --> 0:17:50.600
<v Speaker 2>Mrchan rejected his motion to postpone the trial until after

0:17:50.640 --> 0:17:55.560
<v Speaker 2>the Supreme Court determines whether Trump has immunity from prosecution

0:17:56.119 --> 0:17:59.600
<v Speaker 2>in a separate criminal case. Is the judge on sound

0:18:00.160 --> 0:18:00.800
<v Speaker 2>round here?

0:18:01.359 --> 0:18:03.160
<v Speaker 1>What we're seeing here is a motion by the Trump

0:18:03.240 --> 0:18:05.400
<v Speaker 1>defense team to try to delay the trial for yet

0:18:05.400 --> 0:18:09.000
<v Speaker 1>another reason, arguing that it ought to be delayed until

0:18:09.720 --> 0:18:12.639
<v Speaker 1>a decision is made by the Supreme Court. In connect

0:18:12.680 --> 0:18:16.320
<v Speaker 1>you with the January sixth insurrection case, which has to

0:18:16.320 --> 0:18:19.359
<v Speaker 1>do with a question of presidential immunity. What the judge

0:18:19.400 --> 0:18:22.359
<v Speaker 1>in the New York case decided was that that issue

0:18:22.440 --> 0:18:25.040
<v Speaker 1>could have been raised a long time ago, and to

0:18:25.160 --> 0:18:28.360
<v Speaker 1>raise it now, only days before the trial is simply

0:18:28.440 --> 0:18:30.760
<v Speaker 1>too late, and so he rejected that out of hand.

0:18:31.200 --> 0:18:34.359
<v Speaker 2>Trump is also asking to delay the trial due to

0:18:34.440 --> 0:18:39.280
<v Speaker 2>pre trial publicity, which the Manhattan DA points out is

0:18:39.400 --> 0:18:43.600
<v Speaker 2>of his own making. Also, pre trip publicity. Isn't that

0:18:43.720 --> 0:18:46.800
<v Speaker 2>something that judges normally say, we can handle that in

0:18:47.040 --> 0:18:48.200
<v Speaker 2>the voidir.

0:18:48.160 --> 0:18:51.919
<v Speaker 1>Yeah, whenever you have a high profile case involving a

0:18:52.040 --> 0:18:55.560
<v Speaker 1>high profile defendant, and certainly this case fits the bill

0:18:55.760 --> 0:18:59.600
<v Speaker 1>in every respect. In that regard, you always have jurors

0:18:59.680 --> 0:19:02.320
<v Speaker 1>who have read about the case, who have formed an

0:19:02.320 --> 0:19:05.600
<v Speaker 1>opinion about the defendant, who may have prejudged the case

0:19:05.960 --> 0:19:09.200
<v Speaker 1>that's going to happen in every high profile case where

0:19:09.400 --> 0:19:11.480
<v Speaker 1>all of the pre trial proceedings and all of the

0:19:11.600 --> 0:19:15.159
<v Speaker 1>charges have been in the media for months, perhaps even years.

0:19:15.440 --> 0:19:18.879
<v Speaker 1>And so the vuas deer process, which is the opportunity

0:19:18.960 --> 0:19:22.000
<v Speaker 1>for lawyers for both the defense and the prosecution to

0:19:22.119 --> 0:19:24.720
<v Speaker 1>screen out the jurors who because in order to sit

0:19:24.760 --> 0:19:27.639
<v Speaker 1>on that jury, the jurors has to say that they

0:19:27.680 --> 0:19:29.800
<v Speaker 1>have not formed any opinion as to the guilt or

0:19:29.840 --> 0:19:32.480
<v Speaker 1>innocence of the defendant, that they will be able to

0:19:32.680 --> 0:19:36.520
<v Speaker 1>make a decision based solely upon the evidence that's presented

0:19:36.760 --> 0:19:39.480
<v Speaker 1>during the trial, That they will not rely on any

0:19:39.520 --> 0:19:42.840
<v Speaker 1>information outside of the courtroom, that they will not talk

0:19:42.880 --> 0:19:45.840
<v Speaker 1>to anybody or read any media accounts of the trial

0:19:46.080 --> 0:19:48.800
<v Speaker 1>during the course of the trial. And that process may

0:19:48.880 --> 0:19:53.080
<v Speaker 1>take some time, given the high degree of publicity that

0:19:53.200 --> 0:19:56.879
<v Speaker 1>has predated this trial, but eventually they will find a

0:19:57.000 --> 0:20:00.040
<v Speaker 1>set of jurors who meet that criteria. That happens a

0:20:00.160 --> 0:20:02.280
<v Speaker 1>the time, and that will certainly happen in this case.

0:20:02.920 --> 0:20:08.240
<v Speaker 2>And Trump also they've renewed their request, which the judge

0:20:08.280 --> 0:20:11.840
<v Speaker 2>turned down once before, for him to recuse himself because

0:20:11.840 --> 0:20:17.000
<v Speaker 2>of his daughter's political work for Democratic politicians. The judge

0:20:17.080 --> 0:20:20.040
<v Speaker 2>is not going to recuse himself at this point either.

0:20:20.359 --> 0:20:22.520
<v Speaker 2>Why renew this motion? Is it just to put it

0:20:22.560 --> 0:20:23.440
<v Speaker 2>in the public light.

0:20:23.920 --> 0:20:27.399
<v Speaker 1>Well, it's hard to say what motivated this emotion again,

0:20:27.440 --> 0:20:29.600
<v Speaker 1>but as you point out, this is exactly the same

0:20:29.680 --> 0:20:33.320
<v Speaker 1>motion that was made earlier when they challenged the judges

0:20:33.400 --> 0:20:37.840
<v Speaker 1>impartiality and asked for a recusal based on his daughter's

0:20:37.920 --> 0:20:41.439
<v Speaker 1>job and the judge's own small donations to Democrats. In

0:20:41.480 --> 0:20:44.840
<v Speaker 1>that case, the Judicial Ethics Committee had taken a look

0:20:44.920 --> 0:20:48.920
<v Speaker 1>at this issue and decided that the judges impartiality could

0:20:48.920 --> 0:20:54.400
<v Speaker 1>not reasonably be questioned based on his law contribution to Democrats,

0:20:54.680 --> 0:20:57.320
<v Speaker 1>or his daughter's career. And this is basically the same

0:20:57.400 --> 0:21:00.600
<v Speaker 1>motion raised again. There's nothing new about it, But I

0:21:00.640 --> 0:21:03.000
<v Speaker 1>think one thing that may be going on here is

0:21:03.040 --> 0:21:06.480
<v Speaker 1>again playing not to the judge, but playing to the

0:21:06.520 --> 0:21:10.120
<v Speaker 1>greater public. People who are sitting on that jury may

0:21:10.160 --> 0:21:12.320
<v Speaker 1>be aware of this motion. They may come into the

0:21:12.359 --> 0:21:15.199
<v Speaker 1>courtroom and ultimately find their way on a jury. And

0:21:15.240 --> 0:21:18.920
<v Speaker 1>the more that the defense team can project their defense

0:21:19.119 --> 0:21:22.600
<v Speaker 1>arguments to potential jurors even before the trial starts, the

0:21:22.640 --> 0:21:25.560
<v Speaker 1>better they have an opportunity of finding one juror who

0:21:25.600 --> 0:21:27.640
<v Speaker 1>might not be willing to vote for a conviction.

0:21:27.920 --> 0:21:32.720
<v Speaker 2>Finally, Bob, we have the judge expanding his gag order

0:21:33.160 --> 0:21:38.080
<v Speaker 2>because Donald Trump attacked his daughter on social media. The

0:21:38.119 --> 0:21:41.919
<v Speaker 2>district attorney requested this, But is the judge on solid

0:21:41.960 --> 0:21:45.800
<v Speaker 2>ground in expanding the gag order to include family.

0:21:46.720 --> 0:21:49.399
<v Speaker 1>These are rulings that we really have never seen before,

0:21:49.440 --> 0:21:52.640
<v Speaker 1>because we've really never seen a defendant who has attacked

0:21:52.640 --> 0:21:55.600
<v Speaker 1>the judicial system, who have attacked judges, who have attacked

0:21:55.680 --> 0:21:59.240
<v Speaker 1>courtroom employees, who have attacked family members of prosecutors and

0:21:59.680 --> 0:22:03.280
<v Speaker 1>judge before, and certainly not a defendant who has the

0:22:03.440 --> 0:22:07.639
<v Speaker 1>platform that former President Trump has in order to launch

0:22:07.800 --> 0:22:11.639
<v Speaker 1>these attacks on the judicial system. And so we're seeing

0:22:11.640 --> 0:22:15.600
<v Speaker 1>the judge place in a difficult position trying to allow

0:22:15.720 --> 0:22:18.840
<v Speaker 1>for former President Trump's First Amendment rights to be able

0:22:18.840 --> 0:22:21.600
<v Speaker 1>to speak his mind as to the judge, as to

0:22:21.640 --> 0:22:25.200
<v Speaker 1>the prosecutors. But when he talks about people who are

0:22:25.240 --> 0:22:28.159
<v Speaker 1>not directly related to the trial, and there is a

0:22:28.160 --> 0:22:31.480
<v Speaker 1>certain risk of danger based upon some of the comments

0:22:31.480 --> 0:22:33.680
<v Speaker 1>that he makes. That's where I think we're seeing the

0:22:33.760 --> 0:22:37.639
<v Speaker 1>judge try to carefully rein that in we'll begin the

0:22:37.680 --> 0:22:41.520
<v Speaker 1>trials soon and those comments will no longer really be relevant.

0:22:41.560 --> 0:22:43.919
<v Speaker 1>I think once we see the trial start, all the

0:22:43.960 --> 0:22:46.800
<v Speaker 1>talking will go on in the courtroom and we'll see

0:22:46.880 --> 0:22:50.480
<v Speaker 1>less commentary going on outside of the courtroom as the

0:22:50.480 --> 0:22:51.560
<v Speaker 1>trial is unfolding.

0:22:51.880 --> 0:22:55.159
<v Speaker 2>And Bob, why don't the judges ever include themselves in

0:22:55.200 --> 0:22:56.199
<v Speaker 2>these gag orders?

0:22:56.440 --> 0:22:59.680
<v Speaker 1>You know, these gag orders are a difficult balancing act.

0:23:00.240 --> 0:23:03.320
<v Speaker 1>There is a First Amendment right of defendants to speak out,

0:23:03.560 --> 0:23:06.960
<v Speaker 1>but on the other hand, there's also the judge's obligation

0:23:07.240 --> 0:23:10.320
<v Speaker 1>to ensure that the trial proceeds in an orderly way,

0:23:10.840 --> 0:23:14.280
<v Speaker 1>that jury pools are not tampered with, and perhaps most importantly,

0:23:14.640 --> 0:23:17.120
<v Speaker 1>that people who are involved in the case, whether it's

0:23:17.160 --> 0:23:21.040
<v Speaker 1>witnesses or court employees, are not in any way endangered

0:23:21.080 --> 0:23:24.840
<v Speaker 1>by comments that a defendant may make. Generally speaking, the

0:23:24.960 --> 0:23:29.600
<v Speaker 1>judge and the prosecutor are considered public figures. They are

0:23:29.640 --> 0:23:32.959
<v Speaker 1>considered people who are central to the trial. But at

0:23:33.000 --> 0:23:36.320
<v Speaker 1>the same time they have essentially bought into this process.

0:23:36.359 --> 0:23:39.400
<v Speaker 1>It's their job. So you'll almost never find a gag

0:23:39.520 --> 0:23:42.440
<v Speaker 1>order that prevents a defendant from making comments about the

0:23:42.520 --> 0:23:45.440
<v Speaker 1>judge or the prosecution. But when it bills over into

0:23:45.520 --> 0:23:49.120
<v Speaker 1>other people, family members, court employees. That's where we see

0:23:49.160 --> 0:23:50.760
<v Speaker 1>judges draw the line.

0:23:50.480 --> 0:23:53.560
<v Speaker 2>And we'll see if Trump chose the line. Thanks so much, Bob.

0:23:54.000 --> 0:23:57.560
<v Speaker 2>That's former federal prosecutor Robert Mintz coming up next on

0:23:57.600 --> 0:24:01.359
<v Speaker 2>the Bloomberg Law Show. The Baltimore bridge collapse could be

0:24:01.400 --> 0:24:06.000
<v Speaker 2>the most expensive marine insured loss in history, with estimates

0:24:06.000 --> 0:24:09.399
<v Speaker 2>of losses up to four billion dollars, but the owner

0:24:09.440 --> 0:24:12.280
<v Speaker 2>of the cargo ship that struck the bridge is looking

0:24:12.320 --> 0:24:15.359
<v Speaker 2>to limit its liability. I'm June Gross and you're listening

0:24:15.359 --> 0:24:19.560
<v Speaker 2>to Bloomberg. The divers who responded to the Baltimore bridge

0:24:19.560 --> 0:24:23.880
<v Speaker 2>collapse were honored today for their dedication and bravery. County

0:24:23.960 --> 0:24:28.119
<v Speaker 2>Executive Angel Also Brooks praised the divers for jumping into

0:24:28.200 --> 0:24:32.240
<v Speaker 2>action on that tragic day. The rest of our state,

0:24:32.680 --> 0:24:34.960
<v Speaker 2>and I dare say the rest of the nation got

0:24:35.000 --> 0:24:37.119
<v Speaker 2>to see what we see each and every day in

0:24:37.200 --> 0:24:40.360
<v Speaker 2>all of you. It's the bravery, it is the carrying,

0:24:40.440 --> 0:24:44.080
<v Speaker 2>it is the selflessness, it's the sacrifice. The bridge fell

0:24:44.160 --> 0:24:47.479
<v Speaker 2>last Tuesday after being struck by the cargo ship Dolly,

0:24:47.800 --> 0:24:51.959
<v Speaker 2>which lost powers shortly after leaving Baltimore. Bad weather has

0:24:52.080 --> 0:24:55.800
<v Speaker 2>hindered the around the clock salvage operations, joining me is

0:24:55.880 --> 0:24:59.960
<v Speaker 2>maritime law expert Martin Davies, the director of Tulane University

0:25:00.240 --> 0:25:03.800
<v Speaker 2>Maritime Law Center. What's gotten a lot of attention recently

0:25:03.840 --> 0:25:06.400
<v Speaker 2>is that the owner and the manager of the cargo

0:25:06.560 --> 0:25:10.840
<v Speaker 2>ship filed a court petition seeking to limit their legal

0:25:10.880 --> 0:25:12.560
<v Speaker 2>liability for the disaster.

0:25:13.119 --> 0:25:16.680
<v Speaker 4>The law in question dates from eighteen fifty one. There

0:25:16.760 --> 0:25:21.639
<v Speaker 4>are international equivalents based on international conventions, so limitation of

0:25:21.720 --> 0:25:25.000
<v Speaker 4>liability is a very typical thing that occurs in the

0:25:25.040 --> 0:25:29.840
<v Speaker 4>wake of any maritime casualty. And what the law allows

0:25:29.960 --> 0:25:33.880
<v Speaker 4>is for a shipowner to petition to limit its total

0:25:33.960 --> 0:25:37.760
<v Speaker 4>liability for any claims arising out of a single incident

0:25:38.040 --> 0:25:40.320
<v Speaker 4>to the value of the vessel at the end of

0:25:40.359 --> 0:25:44.000
<v Speaker 4>the voyage, plus any pending freight any sums owed to

0:25:44.080 --> 0:25:47.320
<v Speaker 4>it for carriage of cargo or passengers. The other main

0:25:47.359 --> 0:25:52.520
<v Speaker 4>advantage of limitation proceedings is that it enables the shipowner

0:25:52.840 --> 0:25:57.040
<v Speaker 4>to litigate the case in a single forum, in a

0:25:57.080 --> 0:26:00.440
<v Speaker 4>single court of its own choosing, because what happen happens

0:26:00.520 --> 0:26:04.080
<v Speaker 4>is that once the shipowner has petitioned the federal court

0:26:04.200 --> 0:26:08.639
<v Speaker 4>for limitation of liability, it must pay into court or

0:26:08.680 --> 0:26:12.080
<v Speaker 4>give security for the amount of the value of the

0:26:12.160 --> 0:26:14.320
<v Speaker 4>vessel at the end of the voyage. And then once

0:26:14.359 --> 0:26:17.240
<v Speaker 4>that fund has been constituted, and it will be constituted

0:26:17.240 --> 0:26:20.359
<v Speaker 4>by the ship's liability insurer, the P and I Club.

0:26:20.480 --> 0:26:23.560
<v Speaker 4>But once the fund has been constituted, the federal court

0:26:23.560 --> 0:26:26.960
<v Speaker 4>will then issue an order saying that no claimant can

0:26:27.000 --> 0:26:31.520
<v Speaker 4>bring a claim in any other court except that federal court. So,

0:26:31.640 --> 0:26:34.439
<v Speaker 4>for example, the claimants could not bring a claim in

0:26:34.800 --> 0:26:38.320
<v Speaker 4>Maryland State court or New York State Court or California

0:26:38.400 --> 0:26:42.120
<v Speaker 4>State court anywhere. All claims must be brought against the

0:26:42.600 --> 0:26:46.119
<v Speaker 4>fund that has been constituted in the court. So the

0:26:46.200 --> 0:26:48.879
<v Speaker 4>two main advantages from the shipowner's point of view is

0:26:48.920 --> 0:26:52.400
<v Speaker 4>one it has at least a chance of limiting its liability.

0:26:52.760 --> 0:26:56.840
<v Speaker 4>But secondly, it can marshal all the claims into one place,

0:26:57.280 --> 0:26:59.440
<v Speaker 4>the court of its own choosing, which in this case

0:26:59.520 --> 0:27:01.600
<v Speaker 4>is the Federal District Court in Maryland.

0:27:01.720 --> 0:27:04.160
<v Speaker 2>I take it the judge is going to decide whether

0:27:04.240 --> 0:27:07.000
<v Speaker 2>or not to limit liability. So what happens is it

0:27:07.040 --> 0:27:09.560
<v Speaker 2>the plaintiffs who have to come up with reasons why

0:27:09.960 --> 0:27:12.360
<v Speaker 2>the liability should not be limited.

0:27:13.119 --> 0:27:15.960
<v Speaker 4>It's a little confusing in terms of terminology because the

0:27:15.960 --> 0:27:18.480
<v Speaker 4>plaintiff is the shipowner, and the shipowner must show that

0:27:18.560 --> 0:27:22.479
<v Speaker 4>it was not guilty of what is called privity or knowledge,

0:27:22.480 --> 0:27:26.119
<v Speaker 4>that's the expression in the statute, because it's only entitled

0:27:26.160 --> 0:27:29.840
<v Speaker 4>to limit its liability if it itself the shipowner was

0:27:29.960 --> 0:27:32.600
<v Speaker 4>not at fault, and it does have the burden of

0:27:32.640 --> 0:27:36.920
<v Speaker 4>showing that it was not at fault. But it's the plaintiff.

0:27:37.040 --> 0:27:40.640
<v Speaker 4>So the liability claimants, which in this case will be

0:27:40.800 --> 0:27:44.360
<v Speaker 4>the families of those who died, the personal injury claimants,

0:27:44.400 --> 0:27:47.320
<v Speaker 4>and also the cost of the bridge, they are not

0:27:47.440 --> 0:27:51.639
<v Speaker 4>actually the plaintiffs in this limitation proceeding. The procedure is

0:27:52.000 --> 0:27:54.439
<v Speaker 4>a little bit feels a little bit upside down or

0:27:54.440 --> 0:27:57.320
<v Speaker 4>back to front or whatever, because the shipowner must show

0:27:57.880 --> 0:27:59.960
<v Speaker 4>that it was not guilty or fault or privity.

0:28:00.720 --> 0:28:03.560
<v Speaker 2>How does mechanical failure fit in?

0:28:03.680 --> 0:28:07.760
<v Speaker 4>Yes, mechanical failure will be a significant issue in this case,

0:28:07.800 --> 0:28:11.439
<v Speaker 4>I think, because if the incident had occurred because of

0:28:11.480 --> 0:28:15.000
<v Speaker 4>a pure sailing mistake on the part of those navigating

0:28:15.040 --> 0:28:17.800
<v Speaker 4>the vessel, then the shipowner probably would be entitled to

0:28:17.840 --> 0:28:21.879
<v Speaker 4>limit its liability. That was the example that everybody has

0:28:21.920 --> 0:28:24.680
<v Speaker 4>been talking about in relation to the Titanic. The Titanic

0:28:24.920 --> 0:28:28.959
<v Speaker 4>was a perfectly seaworthy, brand new vessel sank because of

0:28:29.280 --> 0:28:33.080
<v Speaker 4>sailing errors. There the shipowner was held to be able

0:28:33.160 --> 0:28:36.320
<v Speaker 4>to limit its liability. But if the incident occurred because

0:28:36.359 --> 0:28:39.800
<v Speaker 4>of some defect in the vessel, that looks much more

0:28:40.120 --> 0:28:43.840
<v Speaker 4>like it might be the responsibility of the shipowner itself.

0:28:44.280 --> 0:28:47.560
<v Speaker 4>It has to be personal fault of the shipowner or manager.

0:28:48.000 --> 0:28:52.000
<v Speaker 4>And well, it's too early to say, but there clearly

0:28:52.040 --> 0:28:55.560
<v Speaker 4>seem to have been some physical problems with the vessel itself,

0:28:55.680 --> 0:28:58.520
<v Speaker 4>which I think will be front and center in the

0:28:58.680 --> 0:29:00.000
<v Speaker 4>limitation proceedings.

0:29:00.160 --> 0:29:02.200
<v Speaker 2>What physical problems have you heard about?

0:29:02.840 --> 0:29:06.320
<v Speaker 4>Well, the engine, the power failed more than once, I believe,

0:29:06.600 --> 0:29:09.440
<v Speaker 4>before the vessel struck the bridge. And there are also

0:29:09.920 --> 0:29:12.880
<v Speaker 4>questions have been raised about the quality of the fuel

0:29:13.040 --> 0:29:16.160
<v Speaker 4>that's been used. Most of that, I must say speculation,

0:29:16.320 --> 0:29:19.040
<v Speaker 4>because none of that has been recorded yet. But if

0:29:19.040 --> 0:29:22.280
<v Speaker 4>the ship's power failed, which it seems clearly that it did,

0:29:22.600 --> 0:29:26.640
<v Speaker 4>that's going to raise questions of whether the shipowner is

0:29:26.720 --> 0:29:30.160
<v Speaker 4>responsible for the condition of the vessel that caused the

0:29:30.200 --> 0:29:30.800
<v Speaker 4>power to fail.

0:29:31.000 --> 0:29:34.880
<v Speaker 2>So this law has been used in the most notable

0:29:34.920 --> 0:29:39.040
<v Speaker 2>maritime disasters. How often has it worked? Does it work

0:29:39.120 --> 0:29:39.960
<v Speaker 2>more often than not.

0:29:40.760 --> 0:29:43.880
<v Speaker 4>No, it fails more often than not. The statistics show

0:29:44.160 --> 0:29:49.040
<v Speaker 4>that the shipowner's petition to limit its liability succeeds in

0:29:49.120 --> 0:29:52.480
<v Speaker 4>only about thirty two percent of the cases, so it

0:29:52.520 --> 0:29:55.080
<v Speaker 4>fails most of the time under US law, as in

0:29:55.640 --> 0:29:58.320
<v Speaker 4>sixty eight percent of the time it fails. But that

0:29:58.400 --> 0:30:02.560
<v Speaker 4>doesn't stop shipowners from petitioning in the event of a casualty,

0:30:02.760 --> 0:30:07.000
<v Speaker 4>because the other benefit of the limitation proceedings, as I've said,

0:30:07.080 --> 0:30:10.040
<v Speaker 4>is to bring all the claims together in one place,

0:30:10.440 --> 0:30:13.120
<v Speaker 4>so that the shipowner then doesn't have to fight lots

0:30:13.120 --> 0:30:17.040
<v Speaker 4>of different lawsuits about the same incident in different jurisdictions.

0:30:18.000 --> 0:30:21.440
<v Speaker 2>President Biden has said that the federal government would bear

0:30:21.480 --> 0:30:25.440
<v Speaker 2>the cost of cleaning the debris and rebuilding the bridge.

0:30:26.120 --> 0:30:28.360
<v Speaker 2>Is that something the federal government should be paying for

0:30:28.480 --> 0:30:30.240
<v Speaker 2>or should the insurance be paying for that?

0:30:30.840 --> 0:30:34.920
<v Speaker 4>Well, that's an interesting question because I believe that the

0:30:35.240 --> 0:30:37.880
<v Speaker 4>bridge did carry an interstate highway, which would be a

0:30:37.920 --> 0:30:41.080
<v Speaker 4>reason for the federal government participating, if you like, in

0:30:41.400 --> 0:30:44.600
<v Speaker 4>the cost of the repairs. But what the maritime law

0:30:44.680 --> 0:30:48.560
<v Speaker 4>says is that only those who have suffered physical damage

0:30:48.760 --> 0:30:52.400
<v Speaker 4>to their property can claim against the vessel. So the

0:30:52.520 --> 0:30:56.560
<v Speaker 4>question will be like who actually owned the bridge, And

0:30:56.560 --> 0:30:59.400
<v Speaker 4>now if it's the State of Maryland, then the state

0:30:59.440 --> 0:31:04.360
<v Speaker 4>of Maryland is the proper claimant, and the federal government

0:31:04.520 --> 0:31:09.120
<v Speaker 4>choosing to pay looks much more like an economic loss.

0:31:09.920 --> 0:31:13.240
<v Speaker 4>And there's a Supreme Court decision that says that purely

0:31:13.360 --> 0:31:17.680
<v Speaker 4>economic losses are not recoverable from the ship itself. So

0:31:17.800 --> 0:31:20.360
<v Speaker 4>all of the economic losses that I'm sure are already

0:31:20.400 --> 0:31:24.280
<v Speaker 4>being suffered in the city of Baltimore are not recoverable

0:31:24.600 --> 0:31:25.640
<v Speaker 4>from the ship.

0:31:26.560 --> 0:31:30.800
<v Speaker 2>How long does a claim like this take to play out?

0:31:31.120 --> 0:31:36.120
<v Speaker 4>Oh gosh, years. It will be years to work out

0:31:36.960 --> 0:31:40.840
<v Speaker 4>exactly what happened and the responsibility for it. Litigation of

0:31:40.920 --> 0:31:44.400
<v Speaker 4>this complexity doesn't move very quickly. Plus it's going to

0:31:44.400 --> 0:31:47.560
<v Speaker 4>be a long time before it's even known how much

0:31:47.640 --> 0:31:51.240
<v Speaker 4>it costs to replace the bridge, so you know, the

0:31:51.280 --> 0:31:54.760
<v Speaker 4>magnitude of the claim will not be clear for years,

0:31:55.120 --> 0:31:59.280
<v Speaker 4>and litigation of this kind generally does not move very quickly.

0:31:59.840 --> 0:32:03.000
<v Speaker 2>Is there anyone besides the owner of the ship and

0:32:03.040 --> 0:32:05.920
<v Speaker 2>the manager that can be sued here?

0:32:06.840 --> 0:32:08.960
<v Speaker 4>Well, there are lots of people that can be sued,

0:32:09.200 --> 0:32:13.080
<v Speaker 4>but I don't think there's anybody other than the owner

0:32:13.080 --> 0:32:17.360
<v Speaker 4>and manager. It seemed to be plausible candidates for litigation

0:32:17.720 --> 0:32:21.880
<v Speaker 4>because the charter of the vessel, Mersk is merely the

0:32:22.040 --> 0:32:27.560
<v Speaker 4>commercial operator. It's not responsible for navigational operation, and whatever

0:32:27.600 --> 0:32:31.920
<v Speaker 4>happened here seems to have been a navigational problem, not

0:32:32.080 --> 0:32:36.800
<v Speaker 4>a commercial problem. There is a possibility I think that

0:32:36.880 --> 0:32:41.160
<v Speaker 4>if the problem is with deficient fuel, then there might

0:32:41.280 --> 0:32:46.320
<v Speaker 4>be the possibility of a cross claim against Mersk, but

0:32:46.480 --> 0:32:50.160
<v Speaker 4>the principal responsibility will lie with the shipowner.

0:32:50.720 --> 0:32:53.360
<v Speaker 2>Could the harbor master be sued, I.

0:32:53.320 --> 0:32:56.400
<v Speaker 4>Mean, someone could try, but I really think that that's

0:32:56.520 --> 0:33:01.200
<v Speaker 4>unlikely because once the ship is off the birth, the

0:33:01.240 --> 0:33:04.680
<v Speaker 4>task of the tugs is done the harbor pilots. The

0:33:04.760 --> 0:33:07.280
<v Speaker 4>ship is responsible for any fault on the part of

0:33:07.280 --> 0:33:09.720
<v Speaker 4>the harbor pilots, although there doesn't seem to be any

0:33:09.760 --> 0:33:12.360
<v Speaker 4>indication of fault on the part of the harbor pilots.

0:33:12.400 --> 0:33:16.480
<v Speaker 4>But the responsibility lies with the ship. And I mean,

0:33:16.520 --> 0:33:19.480
<v Speaker 4>I guess it's conceivable that someone could try to sue

0:33:19.560 --> 0:33:23.400
<v Speaker 4>the port authority for the tugs casting off too soon,

0:33:23.600 --> 0:33:26.280
<v Speaker 4>but the vessel was in in the middle of the channel.

0:33:26.560 --> 0:33:28.280
<v Speaker 4>I don't think it needed tugs anymore.

0:33:28.960 --> 0:33:33.520
<v Speaker 2>So insurance the insurance is about two or three billion.

0:33:33.280 --> 0:33:36.680
<v Speaker 4>Dollars three point one billion, thank you? What it is? Right?

0:33:36.920 --> 0:33:41.400
<v Speaker 2>All right? So will the insurance definitely cover this? Let's say,

0:33:41.600 --> 0:33:44.840
<v Speaker 2>you know, it's found that they can't limit their legal liability.

0:33:45.240 --> 0:33:48.400
<v Speaker 2>Does the insurance cover it, whether it's negligence or not.

0:33:49.240 --> 0:33:52.840
<v Speaker 4>Yes, most definitely. The insurers are what are called a

0:33:52.840 --> 0:33:55.880
<v Speaker 4>P and I club protection and indemnity club, and they

0:33:55.920 --> 0:34:00.280
<v Speaker 4>are mutual self insurance associations of ship owners and they

0:34:00.640 --> 0:34:05.560
<v Speaker 4>don't operate like commercial insurers. Their instinct is to pay

0:34:05.880 --> 0:34:09.040
<v Speaker 4>because they are all shipowners. And so every ship owner

0:34:09.080 --> 0:34:11.040
<v Speaker 4>that's a member of the club, that has got a

0:34:11.080 --> 0:34:13.480
<v Speaker 4>ship entered in the club is both an insurer and

0:34:13.560 --> 0:34:17.799
<v Speaker 4>an assured and so the coverage offered by p and

0:34:17.840 --> 0:34:22.799
<v Speaker 4>I clubs is very comprehensive, has very few exceptions. It's

0:34:22.880 --> 0:34:25.479
<v Speaker 4>not like a commercial insurer where there are all sorts

0:34:25.520 --> 0:34:28.840
<v Speaker 4>of exclusions in the contract. And so the club will

0:34:28.880 --> 0:34:31.840
<v Speaker 4>cover this even if it turns out to be negligence

0:34:31.880 --> 0:34:34.239
<v Speaker 4>on the part of the shipowner, it will definitely be

0:34:34.280 --> 0:34:37.000
<v Speaker 4>covered by the club. And then what happens is the club.

0:34:37.120 --> 0:34:40.719
<v Speaker 4>The particular club that Dari was entered in is Britannia,

0:34:41.000 --> 0:34:44.200
<v Speaker 4>which is one of twelve p and I clubs forming

0:34:44.360 --> 0:34:48.040
<v Speaker 4>something called the International Group, which covers over ninety percent

0:34:48.080 --> 0:34:50.680
<v Speaker 4>of the ships in the world, and they have this

0:34:51.000 --> 0:34:56.200
<v Speaker 4>complicated pooling arrangement if claims exceed a certain level, which

0:34:56.400 --> 0:34:59.800
<v Speaker 4>they most certainly will in this case, the individual club

0:35:00.080 --> 0:35:03.720
<v Speaker 4>longer bears it itself. It's pooled among all the twelve

0:35:03.800 --> 0:35:09.280
<v Speaker 4>clubs in the International Group. They have commercial reinsurance, and

0:35:09.320 --> 0:35:13.520
<v Speaker 4>it's a complicated scheme. But the total pool of insurance

0:35:13.560 --> 0:35:16.600
<v Speaker 4>sitting behind the shipowner is at present three point one

0:35:16.760 --> 0:35:17.640
<v Speaker 4>billion dollars.

0:35:18.080 --> 0:35:22.200
<v Speaker 2>So there's no reason for plaintiffs to rush to file claims.

0:35:22.640 --> 0:35:23.359
<v Speaker 2>There's enough there.

0:35:24.000 --> 0:35:28.200
<v Speaker 4>Well no, because now that the shipowners filed its limitation suit,

0:35:28.200 --> 0:35:32.000
<v Speaker 4>they will have to file suit in those limitation proceedings,

0:35:32.120 --> 0:35:35.279
<v Speaker 4>they'll have to bring claims against the limitation fund. What

0:35:35.360 --> 0:35:37.680
<v Speaker 4>they will want to do is to try and argue

0:35:37.719 --> 0:35:40.400
<v Speaker 4>that the shipowner itself was at faultrom therefore it's not

0:35:40.719 --> 0:35:43.680
<v Speaker 4>entitled to limit its liability, which then gives them access

0:35:43.680 --> 0:35:47.280
<v Speaker 4>to this sort of huge ocean of insurance funds.

0:35:47.640 --> 0:35:50.640
<v Speaker 2>Many are saying that this could be the most expensive

0:35:51.120 --> 0:35:55.800
<v Speaker 2>marine disaster in history. Is there anything to be learned

0:35:55.840 --> 0:35:56.359
<v Speaker 2>from these?

0:35:57.160 --> 0:36:00.880
<v Speaker 4>Well, yes, I mean it's it's a very unusual obviously

0:36:01.360 --> 0:36:04.080
<v Speaker 4>in some respects not unique. I mean ships have knocked

0:36:04.120 --> 0:36:08.080
<v Speaker 4>down bridges before. What is so spectacular about this one

0:36:08.280 --> 0:36:11.799
<v Speaker 4>is that the bridge completely fell down and needs to

0:36:11.840 --> 0:36:15.640
<v Speaker 4>be completely replaced. So in terms of the amount of

0:36:15.800 --> 0:36:19.359
<v Speaker 4>money at stake, yes, it will be more expensive than

0:36:19.600 --> 0:36:23.440
<v Speaker 4>perhaps any other. But in other respect the way that

0:36:23.520 --> 0:36:28.200
<v Speaker 4>maritime casualties work is fairly clear and well settled, and

0:36:28.480 --> 0:36:31.440
<v Speaker 4>I don't think there's any new law likely to be

0:36:31.520 --> 0:36:35.960
<v Speaker 4>made here. You know, this is obviously a spectacular casualty,

0:36:36.120 --> 0:36:39.399
<v Speaker 4>but in other respects, and this sounds like an odd

0:36:39.440 --> 0:36:41.960
<v Speaker 4>way of putting it, there's nothing particularly unusual about it.

0:36:42.040 --> 0:36:45.040
<v Speaker 4>I mean, ships collide with one another, they run into things.

0:36:45.320 --> 0:36:48.239
<v Speaker 4>You know, casualty cases happen all the time, and what

0:36:48.280 --> 0:36:52.600
<v Speaker 4>I've been explaining to many journalists, including you, is fairly routine.

0:36:52.640 --> 0:36:56.120
<v Speaker 4>I mean, there's always a limitation suit. There's always the

0:36:56.200 --> 0:36:59.120
<v Speaker 4>question of whether the ship owner wizard fault. There's always

0:36:59.160 --> 0:37:02.799
<v Speaker 4>the question of the extent to which the club will respond.

0:37:03.120 --> 0:37:07.040
<v Speaker 4>I mean it sounds glib, but we know how this works.

0:37:07.600 --> 0:37:10.399
<v Speaker 2>It seems like such a specialized area of the law.

0:37:10.480 --> 0:37:14.320
<v Speaker 2>Thanks so much for joining us. That's Martin Davies, director

0:37:14.320 --> 0:37:18.160
<v Speaker 2>of Tulane University's Maritime Law Center. And that's it for

0:37:18.160 --> 0:37:20.799
<v Speaker 2>this edition of The Bloomberg Law Show. Remember you can

0:37:20.840 --> 0:37:24.080
<v Speaker 2>always get the latest legal news on our Bloomberg Law Podcast.

0:37:24.360 --> 0:37:27.399
<v Speaker 2>You can find them on Apple Podcasts, Spotify, and at

0:37:27.560 --> 0:37:32.560
<v Speaker 2>www dot Bloomberg dot com, slash podcast, Slash Law, And

0:37:32.640 --> 0:37:35.719
<v Speaker 2>remember to tune into The Bloomberg Law Show every weeknight

0:37:35.800 --> 0:37:39.239
<v Speaker 2>at ten pm Wall Street Time. I'm June Grosso and

0:37:39.320 --> 0:37:40.759
<v Speaker 2>you're listening to Bloomberg