courts – Page 16 – Lone Candle

The Supreme Court decides not to trigger a second Great Depression

Posted on June 1, 2024June 1, 2024 by Lone Candle

“The Supreme Court delivered a firm and unambiguous rebuke to some of America’s most reckless judges on Thursday, ruling those judges were wrong to declare an entire federal agency unconstitutional in a decision that threatened to trigger a second Great Depression.
In a sensible world, no judge would have taken the plaintiffs arguments in CFPB v. Community Financial Services Association seriously. Briefly, they claimed that the Constitution limits Congress’s ability to enact “perpetual funding,” meaning that the legislation funding a particular federal program does not sunset after a certain period of time.

The implications of this entirely made-up theory of the Constitution are breathtaking. As Justice Elena Kagan points out in a concurring opinion in the CFPB case, “spending that does not require periodic appropriations (whether annual or longer) accounted for nearly two-thirds of the federal budget” — and that includes popular programs like Social Security, Medicare, and Medicaid.

Nevertheless, a panel of three Trump judges on the United States Court of Appeals for the Fifth Circuit — a court dominated by reactionaries who often hand down decisions that offend even the current, very conservative Supreme Court — bought the CFPB plaintiffs’ novel theory and used it to declare the entire Consumer Financial Protection Bureau unconstitutional.

In fairness, the Fifth Circuit’s decision would not have invalidated Social Security or Medicare, but that’s because the Fifth Circuit made up some novel limits to contain its unprecedented interpretation of the Constitution. And the Fifth Circuit’s attack on the CFPB still would have had catastrophic consequences for the global economy had it actually been affirmed by the justices.

That’s because the CFPB doesn’t just regulate the banking industry. It also instructs banks on how they can comply with federal lending laws without risking legal sanction — establishing “safe harbor” practices that allow banks to avoid liability so long as they comply with them.

As a brief filed by the banking industry explains, without these safe harbors, the industry would not know how to lawfully issue loans — and if banks don’t know how to issue loans, the mortgage market could dry up overnight. Moreover, because home building, home sales, and other industries that depend on the mortgage market make up about 17 percent of the US economy, a decision invalidating the CFPB could trigger economic devastation unheard of since the Great Depression.

Thankfully, that won’t happen. Seven justices joined a majority opinion in CFPB which rejects the Fifth Circuit’s attack on the United States economy, and restates the longstanding rule governing congressional appropriations. Congress may enact any law funding a federal institution or program, so long as that law “authorizes expenditures from a specified source of public money for designated purposes.””

https://www.vox.com/scotus/24158216/supreme-court-cfpb-clarence-thomas-community-financial

The New York Case Against Trump Relies on a ‘Twisty’ Legal Theory That Reeks of Desperation

Posted on May 29, 2024May 29, 2024 by Lone Candle

“When Trump lawyer Michael Cohen paid porn star Stormy Daniels $130,000 shortly before the 2016 presidential election to stop her from talking about her purported 2006 sexual encounter with Trump, that transaction was “not illegal,” Trump’s lead defense attorney, Todd Blanche, said during his opening statement last week. “Entering into a nondisclosure agreement is perfectly legal. Companies do that all the time….Executives, people who are wealthy, people who are famous enter into nondisclosure agreements regularly, and there’s nothing illegal about it.”

…

“Trump is not charged with “conspiracy” or “election fraud.” He is charged with violating a New York law against “falsifying business records” with “intent to defraud.” Trump allegedly did that 34 times by disguising his 2017 reimbursement of Cohen’s payment to Daniels as compensation for legal services. The counts include 11 invoices from Cohen, 11 corresponding checks, and 12 ledger entries.

Ordinarily, falsifying business records is a misdemeanor. But it becomes a felony when the defendant’s “intent to defraud includes an intent to commit another crime or to aid or conceal the commission thereof.” Bragg says Trump had such an intent, which is why the 34 counts are charged as felonies.

Bragg had long been cagey about exactly what crime Trump allegedly tried to conceal. But during a sidebar discussion last week, Colangelo said “the primary crime that we have alleged is New York State Election Law Section 17-152.” That provision says “any two or more persons who conspire to promote or prevent the election of any person to a public office by unlawful means and which conspiracy is acted upon by one or more of the parties thereto, shall be guilty of a misdemeanor.”

In other words, Bragg is relying on this misdemeanor to transform another misdemeanor (falsifying business records) into a felony. But the only “unlawful means” that he has identified is Cohen’s payment to Daniels. And while Cohen pleaded guilty in 2018 to making an excessive campaign contribution by fronting the hush money, Trump was never prosecuted for soliciting that contribution.

There are good reasons for that. The question of whether this arrangement violated federal election law hinges on whether the hush money is properly viewed as a campaign expense or a personal expense. That distinction, in turn, depends on whether Trump was motivated by a desire to promote his election or by a desire to avoid embarrassment and spare his wife’s feelings.

The former hypothesis is plausible, especially given the timing of the payment to Daniels. But proving that allegation beyond a reasonable doubt would have been hard”

…

“Convicting Trump of soliciting an illegal campaign contribution would have required proving that he “knowingly and willfully” violated the Federal Election Campaign Act. Federal prosecutors evidently concluded that they could not meet that requirement. But to violate Section 17-152 of the New York Election Law, the provision on which Bragg is relying for “another crime,” Trump would have had to “conspire” with Cohen to influence an election through “unlawful means,” which suggests he knew the payment to Daniels was illegal.”

…

“The fact that Bragg is relying on an obscure offense that apparently has never been prosecuted speaks volumes about his eagerness to convert the Daniels hush payment into 34 felonies. That strategy will prove “twisty,” Connor said, because “you’re having an underlying crime within an underlying crime to get to that felony.”
If Trump did not recognize the hush payment as “unlawful,” it is hard to see how his “intent” in falsifying business records could have included an intent to conceal “another crime.” And that’s assuming a purported violation of federal campaign finance restrictions counts as “unlawful means” under Section 17-152.”

https://reason.com/2024/05/03/the-new-york-case-against-trump-relies-on-a-twisty-legal-theory-that-reeks-of-desperation/

The Absurd Apple Antitrust Lawsuit

Posted on April 17, 2024 by Lone Candle

“As far as consumer complaints go, of course, there’s nothing wrong with some of the DOJ’s concerns. We might wish that every product we owned was compatible with every other product we owned and that they worked in perfect tandem. We might wish we never had to consider tradeoffs between price, function, design, compatibility, etc.
Where this gets crazy is the federal government saying: Consumers being able to choose whether to use a product is not good enough. We’re going to step in and say that this business has to make a competitor’s products more accessible. It has a legal duty to undermine its own business interests to help outside—and many would argue inferior—products compete.

In the vein of other recent antitrust actions against tech companies, particularly under the Biden administration, the Apple suit relies on an absurd conception of how the law should work. And it’s a conception that could seriously harm innovation, weaken the position of U.S. tech companies, and mess with products many people like.

And many people really, really love Apple products, including iPhones.

The bottom line: Nobody has to use an iPhone, and no developer has to distribute its app through the App Store. There are other ways to communicate, other smartphone options, and other ways to distribute apps (including other ways to distribute apps to iPhone users). That many people still carry iPhones and distribute their apps through the App Store speaks to the fact that many people find the phone’s upsides and the App Store’s upsides stronger than any downsides.”

https://reason.com/2024/03/25/the-absurd-apple-antitrust-lawsuit/

The Supreme Court may let Texas get away with a totally unconstitutional deportation law

Posted on March 14, 2024March 14, 2024 by Lone Candle

“For well more than a century, the federal government has enjoyed near exclusive authority over immigration policy, while states have largely been restricted to assisting in carrying out federal policies. The Supreme Court has reinforced this rule many times over many decisions, such as Truax v. Raich (1915), which said that “the authority to control immigration — to admit or exclude aliens — is vested solely in the Federal Government.”
Texas, however, now wants the Supreme Court to abandon this longstanding constitutional rule, and it thinks that the political tumblers have finally aligned in a way that would lead the Court to do just that.

Texas seeks to upend the longstanding balance of power between the federal government and the states through a law, known as SB 4, which allows Texas state courts to issue deportation orders that will be carried out by Texas state officials. The law is now before the Supreme Court in two “shadow docket” cases, known as United States v. Texas and Las Americas Immigrant Advocacy v. McCraw.”

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“The reason why the federal government has historically had exclusive authority over nearly all questions of immigration policy is to prevent a single state’s mistreatment of a foreign national from damaging US relations with another nation. Indeed, Hines v. Davidowitz (1941) warned that “international controversies of the gravest moment, sometimes even leading to war, may arise from real or imagined wrongs” committed against foreign nationals.

Which isn’t to say that the United States must always treat foreign citizens with caution or deference — just that a decision that could endanger the entire nation’s relationship with a foreign state should be made by a government that represents the entire nation.”

…

“the current Supreme Court has only a weak attachment to following precedent, especially when a precedent is widely disliked by modern-day Republicans. So there is at least some risk that the Court’s GOP-appointed majority will allow SB 4 to go into effect.”

https://www.vox.com/scotus/2024/3/12/24097438/supreme-court-texas-deportation-sb4-unconstitutional-border-migrants