Tag Archives: Takings Clause

The Supreme Court and the War on the New Deal

Back when I was in law school, the fringier aspects of conservative legal thought were laying the ground work for attacking several key doctrines of the New Deal.  Now those fringier elements are at the core of the conservative theory, and we are seeing the fruits of those efforts.  This week, there were several key decisions by the Supreme Court in cases dealing with the “Administrative State” and labor unions.

Prior to the New Deal, the Supreme Court had stood in the way of attempts empower executive branch agencies.  By the 1940s, the Supreme Court had made several key decisions that allowed independent agencies and executive branch departments to operate.  These decisions included:  1) limiting the scope of the non-delegation doctrine (the doctrine that Congress could not delegate the power to make laws to administrative agencies); 2) deference to the decisions of executive branch agencies; 3) the  existence of independent agencies (agencies whose heads could only be removed for cause); and 4) quasi-judicial administrative hearings in which “administrative law judges” reviewed the claims of parties with their decisions reviewed by courts rather than political appointees.  In recent years, we have seen cases calling into question all of these doctrines.  This week, we got decisions in two cases involving two of these issues.

Up first is Collins.  This case, in which Justice Alito wrote the majority opinion, is the latest involving the independence of executive branch agency heads.  For certain agencies, Congress has attempted to protect the agencies from political interference by giving the agency head a set term with the president only being able to remove that appointee for cause.  This case involves some of the reforms enacted in response to the mortgage crisis.  The specific statute created the Federal Housing Finance Agency as part of the rescue of two private companies — the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Association (Freddie Mac) — to oversee those two corporations.  The agency is managed by a single director who is removable for cause.  Part of this director’s authority is to act as a receiver for these two organizations.   In that capacity, the director negotiated changes to the terms of the loan that the U.S. Treasury made to Freddie Mac and Fannie Mae.  Because these two organizations are technically private organization (although chartered by the federal government to serve specific roles in the housing market), they have private investors who sued to challenge the renegotiated agreement.  Following up on prior decisions, the Supreme Court continued its war on limitations on the power of the president to remove an  agency head.  At some point, this war will have serious policy impact when a president chooses to remove an agency head for following the law and replaces that agency head with somebody who will not follow the law. Continue Reading...

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Supreme Court — Two Weeks to Go

As I noted in my post on Thursday’s decisions, we are nearing the end of the active part of the Supreme Court term.  (Technically, the term starts in October, but the Supreme Court is in recess over the summer barring any emergency case.)  While the Supreme Court does not list opinion days far in advance, they have fifteen argued cases left to decide.  Based on past practice, we are likely looking at four to six opinion days over the next two weeks to wrap everything up — likely Monday of both weeks and Thursday of this week with the other dates depending on when things are ready.

The easy part of this post is that the Supreme Court has now wrapped up October and November.  And we have most of the cases from December and January.    But this year’s docket offers several complications.  First, while the Supreme Court tries to keep each month’s opinion assignments balanced (and the term as a whole balanced), we have multiple months with fewer than nine opinions.  Second, we have several unsigned opinions from December and two opinions that covered multiple argued cases.  Third, Justice Barrett did not start until the November docket.  Based on what we know, there should be six opinions per justice (54 signed opinions for the term.)  As Justice Thomas has seven opinions, it looks like Justice Barrett will only have five opinions.

October and November had 18 cases which should have meant two opinions per justice which held true for every justice except Justice Breyer who had three opinions and Justice Barrett had one opinion which seems to reflect that Justice Breyer picked up the extra October opinion that would have gone to Justice Barrett.  (Justice Breyer may end up with seven opinions and somebody may have lost an opinion in light of Justice Thomas’s seven opinions or the court might just have altered who got the extra case as the term went along.) Continue Reading...

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Supreme Court — Eight Down, Twelve to Go

On Thursday and Friday, the Supreme Court issued eight opinions in cases.  That leaves twelve cases still pending (including the two partisan gerrymander cases from March and the census case from April) heading into the last week.  Given that the Supreme Court has been issuing four opinions per day, it is likely that they will be adding two more opinion days to Monday’s opinion/order day.

The big story of this term continues to be that know precedent is safe from reconsideration by the “conservative” majority.  In four separate cases, there was a suggestion that the governing case be overruled or, at least, substantially modified. 

Gundy involved a provision of the Sex Offender Registration and Notification Act.  The provision occurs in the section governing when individuals subject to the Act need to register.  The other provisions in this section dictate when new offenders have to register.  The questioned provision leaves it up to the Attorney General to establish the rules for when prior offenders have to register.  For the first time in decades, the Supreme Court was considering whether such a delegation violated the non-delegation doctrine (barring giving legislative power to an executive official).  Prior to 1940, this doctrine was used to undermine the early regulatory agencies.  Currently, the rule is that — as long as the statute granting the power to adopt regulations contains some “intelligible principle” — the delegation is merely about how to implement the legislative scheme and is valid.  This case resulted in a 4-1-3 split (as it was argued in the first week of October before Justice Kavanaugh joined the Supreme Court).  The four in the majority found — given the rest of the act and the rest of the section — that the Act had the goal of eventually requiring all sex offenders to register and that the delegation to the Attorney General was merely to establish the timing of when prior offenders would have to register.  The three in the dissent declined to infer such a principle — broadly reaffirming the validity of the non-delegation doctrine and strictly reading the requirement for an “intelligible principle.”  The fifth vote in the majority came from Justice Alito who indicated that he wanted to reconsider the last eighty years of cases on the non-delegation doctrine and only voted in the majority because there are worse examples than the Act.  (Basically a dissenting opinion styled as concurring in the judgment because a 4-4 vote would have resulted in an order showing the lower court affirmed by an equally divided court without opinions setting the stage for a drastic revision of the non-delegation doctrine once Justice Kavanaugh is able to sit on one of these cases (which may take some time as many of the regulatory cases come from the D.C. Circuit).  Only time will tell what these revisions might mean for the Securities Exchange Commission, the Environmental Protection Agency, the Food and Drug Agency, and the Equal Employment Opportunity Commission. Continue Reading...

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June and the Supreme Court

As the calendar flips to June, the Supreme Court tends to move to center stage of political life in America.  While, technically, the annual term of the Supreme Court runs from October to September, the Supreme Court tries to finish issuing opinions in its cases by the end of June.  As a result, June has most of the opinions on the most divisive and politically important cases. 

At this point, we have some information on what to expect for this month.  We know the cases that were argued (as the last argument was on April 24). We also know which cases have been decided and which cases remain to be decided and when those cases were argued.  That is a key fact because of how the Supreme Court usually operates.  At the Supreme Court, cases are argued in a two-week argument session (followed by a period of at least two weeks without argument).  In each argument week, the cases are discussed at a weekly conference (typically on Friday) and a tentative vote is taken.  After that vote, the senior justice in the majority (either the Chief Justice or the longest serving Associate Justice) assigns a justice to write the case.  (With the current splits on the court, in most cases, the senior justice will be either Chief Justice Roberts or Justice Ginsburg.)  Regardless of who assigns the cases, the assigning justice tries to keep the assignments balanced within the argument session (no more than two per argument session) and over the term as a whole.  This year, the argument sessions ranged from six cases to thirteen cases.  When all of the argument sessions are combined, there were sixty-nine argued cases (actually seventy, but one was quickly dismissed without opinion) for which an opinion either has been or will be issued.  Thus, we expect each justice to have seven or eight opinions for the entire term. 

At this point in time, we have the most information on the first four argument sessions.  Typically, opinions are issued between three and five months after the argument; so the Supreme Court has issued opinions in most of the “early” cases.  In October, there were nine cases argued (technically ten, but one of the cases was argued during the first week before Justice Kavanaugh was on the court and was quickly set for reargument in January implying a 4-4 split).  Of those nine cases, eight have an opinion.  In November, there were twelve cases argued; and opinions have been issued in eleven cases.  In December, there were ten cases argued; and opinions have been issued in eight cases.  Finally, in January, there were eleven cases argued; and opinions have been issued in eight cases.  On the opposite side, we only have a total of three opinions from the cases argued in February and March and none from the April arguments. Continue Reading...

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Supreme Court: Mid-term Update

The  Supreme Court is set for a somewhat early start for its January arguments session.  While the Supreme Court has yet to release its calendar for the March and April argument sessions, we do have some idea of the general numbers for the remainder of the term.  There will be ten new cases (and one reargument) in January, eight new cases in February, and up to nine in March.  There are still some opportunity to add cases to the April docket, but for now there are four additional cases that could be set for argument in April.


Starting with the rearument case for January, that case is a Takings Clause case.  In 1985, the U.S. Supreme Court essentially held that a person claiming an improper takings without adequate compensation had to pursue their claim for adequate compensation in state court.  Because every state provides a mechanism for litigating the adequacy of compensation, this requirement essentially eliminates the ability to raise the federal aspect of the claim in federal court.  Conservatives do not like this rule and have been questioning it since it was created.  This case was originally argued in front of an eight-justice court in October.  Then it got set for re-argument in January.  While the order scheduling the case for reargument includes the fig-leaf of requesting additional briefing on a point raised during the first argument, it doesn’t take a rocket scientist to guess that the justices were split 4-4 and that it is now up to Justice Kavanaugh to break the tie. 

Also up for argument in January is Merck.  As the party name should suggest, this case is about pharmaceuticals.  Federal law controls the contents of the warnings that a drug company must give about the side effects, but that law also requires the drug companies to provide adequate information to the FDA.  If the company complies with these rules and the FDA determines that the label need not warn about a potential side effect, then injured patients may not bring a cause of action based on the failure to warn.  The problem is that the FDA does not always provide a conclusive rejection of any warning and merely turns down the warning as drafted.   The injured patients are contending that the rejected warning was poorly drafted and that a properly drafted warrant might have been accepted.  As such, the company may not use the rejection of its warning to bar a claim based on a slightly different warning. Continue Reading...

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Supreme Court 2017-18 Term Preview: Part III (Remaining Cases)

In Part I and Part II, we looked at the cases that have already been scheduled for an argument.  This post will look at the cases for the remainder of the term.

As of this point in time, the Supreme Court has not yet announced the schedule of the cases that will be argued in December.  (The December argument session actually begins the Monday after Thanksgiving, November 27.)  There are six available dates for argument and ten cases available.  (To get to ten available cases, the Supreme Court granted review in the middle of August to replace one case that was dismissed.)  It is possible that some of the ten cases may end up in January, particularly if they do not accept many cases over the next several weeks for January.  (The briefing schedule typically requires at least three months between the Supreme Court granting review and the argument.  As such, the January argument docket will come from the cases already granted and the additional cases added between now and October 16.)

As with the previous posts, some of the cases available for argument in December are somewhat technical issues that will not get a lot of public attention.

The big case for the remainder of the term is Masterpiece Cake.  This case involves the balancing of the civil rights of gays and lesbians against the First Amendment rights of vendors (here a cake for a wedding ceremony.)  I will have more on this case as it approaches.  The bottom line is that the result of this case will depend on how the Supreme Court frames the case.  Like with the earlier decisions on contraceptive coverage, if the Supreme Court views this case as being about the furnishing of goods and services to consumers — than the baker loses.  If the Supreme Court views this case as being about how the baker views the meaning of their action in selling the product, the baker probably wins and people will be free to assert religious and political opposition to homosexuality as a reason to be exempt from anti-discrimination laws.

While I rarely comment on criminal cases, an exception needs to be made for Carpenter.  Generally speaking, parties (including the government) can subpoena business records if the subpoena is reasonably related to a pending case.  For example, the government can subpoena utility records if a person’s residence is an issue in a case.  The business records of cell phone companies, however, includes the tower used by a cell phone during a phone call.  And that tower information can be used to figure approximately where the user was when they made or received that call.  The defendant in this case contends that this information is different from the typical information conveyed by a business record, and the government should have to meet the same level of proof that would be required for a search warrant (probable cause) to get that data rather than mere reasonable suspicion (the level set by federal statute).  Given that almost everybody uses cell phones today, this case will be one of the bigger criminal cases of the decade.

A third significant case pits New Jersey against the NCAA, professional sports leagues, and the federal government.  Approximately twenty years, Congress passed a law saying that states could not legalize gambling on sports unless they did so prior to a certain date (essentially allowing legal gambling in Nevada and giving the remaining states a very short time period to decide if they wanted to join Nevada).  Several years back, New Jersey passed a law establishing a regulated sports gambling industry in New Jersey.  The federal courts found that the federal law barred the state law.  In response, New jersey simply repealed their law that banned gambling on sports activity, leaving them with no law on sports gambling.  The lower federal courts found that the federal law barred this action too.  The issue in front of the Supreme Court is whether Congress can force a state to have a specific law.  (There is no dispute that Congress could pass a federal law making sports gambling a federal offense, but the issue is whether it can force a state to make gambling a state offense.)

The last major case involves collecting judgments against Iran.  While the issue in the case is a technical question involving what assets can be reached to collect on a judgment against a foreign sovereign.  The claims involve terrorist activities, and anything dealing with the U.S. seizing or releasing Iranian assets raises significant foreign policy issues.

Besides the ten cases already accepted for review, there are always a long list of cases in the pipeline (around seven hundred requests for Supreme Court review are filed each month.)  Because the Supreme Court only grants argument in less than one percent of the cases, predicting which cases will join the current group of cases is next to impossible.

One possible case involves a takings clause claim (Jarreau).  The issue is how to measure compensation when the taking impacts a business.  Is the measurement limited to the lost value to the real estate or do you include the lost value of the business.  (Taking part of the property may have little impact on some businesses which only use part of the property (e.g., a grocery store that loses twenty parking spaces) but might have significant impact on another business (a gas station that loses half of its pumps).)

Another case, involving Microsoft, deals with whether U.S. companies that store electronic communications have to comply with a search warrant when the server on which the company stores e-mails is outside the U.S.

Finally, there are pending appeals from decisions on the redistricting plans in Texas.  Technically, the Supreme Court has to issue a ruling on the merits of these appeals.  However, the Supreme Court can choose to issue a brief opinion — sometimes just one line — summarily affirming or reversing the lower court.  As such, while we will see something on these cases, it’s not clear that there will be full briefing and argument on these cases.

When you look at the cases already granted, this upcoming term is looking very significant.  It will take another couple of months to see how significant it will be.  As the arguments approach or take back, we will be back with more comments on several of the cases including Gill and Masterpiece Cake.

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Supreme Court Preview Part Three — December (?) Arguments

As noted in Part One of this series, the Supreme Court has not yet announced its December argument schedule.  However, they have eleven cases that they have accepted for review and six argument dates in December.  While it is possible that the Supreme Court might postpone some of these cases to January, there are enough available argument slots in December to hear all of the cases currently on the argument docket.

Looking at the cases accepted, there are the three cases from last January that have been postponed to December (discussed more below).  In addition from the cases accepted in June, there are two re-districting cases, an intellectual property case, a bankruptcy case, a capital punishment case, an anti-trust case involving credit cards, an immigration case, and a federal criminal case.   The contentiousness of these eleven cases might result in some of these cases being pushed even further back in the hope that a ninth justice might arrive this term.

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