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An Epic Supreme Court Decision on Employment
Court Watch | 2018/05/02 13:23
False dichotomy, meretricious piety, and pay-no-attention-to-that-man-behind-the-curtain misdirection are vital arrows in the quiver of any lawyer or judge, no matter of what persuasion.

These tricks were on particularly egregious display in Epic Systems Corp. v. Lewis, a 5-4 decision announced Monday in which the Supreme Court’s conservative majority continued its drive to narrow protection for employee rights. (The opinion, written by Justice Neil Gorsuch, was joined by Chief Justice John Roberts and Justices Anthony Kennedy, Clarence Thomas, and Samuel Alito; the dissent, by Justice Ruth Bader Ginsburg, was joined by Justices Stephen Breyer, Sonia Sotomayor, and Elena Kagan.)

The issue in Epic Systems was this: Can an employer require its employees, as a condition of keeping their jobs, to submit to individual arbitration of wage-and-hour and other workplace-condition claims—not only without an option to go to court, but without an option to pursue even private arbitration in common with other employees making the same claim?

Employees’ objection to a “no group arbitration” clause is that individual arbitration may concern amounts too small to make pursuing them worthwhile. Thus, these clauses make it easier for employers to maintain unfair or even unlawful employment structures and salary systems.

The question required the court to interpret two federal statutes—the Federal Arbitration Act (1925) and the National Labor Relations Act (1935). The FAA says that “a written provision in a contract evidencing a transaction involving commerce” requiring the parties to arbitrate instead of litigate disputes “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” The NLRA provides that “employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”

Begin with text: the NLRA states that it is designed to counter “inequality of bargaining power between employees who do not possess full freedom of association or actual liberty of contract and employers who are organized in the corporate or other forms of ownership association.” There is no language like this in the FAA. The best histories of the FAA’s adoption suggest that it was designed to efficiently settle disputes among merchants—business interests with comparable bargaining power. The Act itself says it should not be read to affect “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” The sponsors stated during deliberations that it was not designed to cover labor agreements.

Thus, the issue is whether the no-group-arbitration clause, by violating that provision of the NLRA, provides “grounds as exist at law” to bar the employer-imposed requirement of individual arbitration.

Gorsuch accused Ginsburg, author of the dissent, and the other three moderate liberals—Breyer, Sotomayor, and Kagan—of improperly consulting their own policy preferences, refusing to harmonize two easily reconcilable federal statutes, and illicitly smuggling extra-legal commentary—legislative history—into judicial decisions. But this was purest rhetorical Pecksniffery. Gorsuch himself quite cheerfully invoked a pro-arbitration policy preference; did no more to harmonize the two statutes t


Supreme Court seems divided over Texas redistricting
Court Watch | 2018/04/21 10:43
The Supreme Court appeared divided Tuesday over Texas' appeal to preserve congressional and legislative districts that a lower court struck down as racially discriminatory.

The justices heard arguments in the latest round of court action over Texas electoral districts that began in 2011.

At issue are two congressional districts and statehouse districts in four counties, and what the challengers say are efforts by Texas Republicans who control the state government to restrain the political influence of a growing Hispanic and African-American population.

The liberal justices seemed favorable to minority voters and civil rights groups that sued over the districts. The court's conservatives appeared to lean toward the state, which also has the support of the Trump administration. Justice Anthony Kennedy said nothing to indicate where his potentially decisive vote would fall.

The justices last year kept the challenged districts in place, even after the lower court ruling. Texas held primary elections in those districts in March.

Max Renea, Hicks, a lawyer for the plaintiffs told the justices Tuesday that even if his side wins at the high court, it is unlikely that new districts would be used before the 2020 elections, the last voting cycle before the next census.

The case is the third major dispute this term that is focused on redistricting, the drawing of electoral maps following the once-a-decade census. The high court's other cases, from Maryland and Wisconsin, focus on the drawing of political districts for partisan advantage.

The Texas situation is unusual. Based on the 2010 census, Texas was awarded four new congressional districts, attributable mainly to the influx of Hispanics.

After the state's original electoral maps were found to be probably unconstitutional, a three-judge federal court produced interim districting plans that were used in the 2012 elections.

In 2013, Republicans rushed to permanently adopt those maps to use for the rest of the decade.

But opponents criticized the adopted maps as a quick fix that didn't purge all districts of the impermissible use of race.

In 2017, the same judges who approved the interim maps in 2012 agreed with the challengers that the maps were the product of intentional discrimination.



Supreme Court wrestles with administrative law judge case
Court Watch | 2018/04/21 10:43
The Supreme Court wrestled Monday with a case brought by a former financial adviser known for his "Buckets of Money" strategy who is challenging the appointment of the administrative law judge who ruled against him.

The case involves the Securities and Exchange Commission's administrative law judges, who conduct hearings on alleged securities law violations and issue initial decisions. The federal government employs administrative law judges in more than 30 agencies, however, giving the case the potential to have a broader impact.

During arguments Monday, Justice Anthony Kennedy wanted to know "what effect, if any" the case would have on administrative law judges in other agencies. Attorney Mark Perry suggested that the court's decision could impact some 150 administrative law judges in 25 agencies.

The question the justices are being asked to decide is whether the SEC's administrative law judges are SEC employees or instead "inferior officers" of the United States. The answer is important in determining who can appoint them to their positions.

The case before the Supreme Court involves former financial adviser Raymond J. Lucia, who as a radio show host, author and seminar leader promoted a retirement strategy he called "Buckets of Money." Lucia's strategy was that in retirement investors should first sell safer investments, giving riskier investments time to grow.



Cosby defense team lobs attacks in court of public opinion
Court Watch | 2018/04/18 10:44
Jurors weren't allowed to hear testimony that Bill Cosby's chief accuser was once hooked on hallucinogenic mushrooms or had her sights set on becoming a millionaire, but that hasn't stopped the defense from airing the explosive claims about Andrea Constand in the court of public opinion.

With Cosby's sexual assault retrial heading for deliberations this week, the 80-year-old comedian's lawyers and publicists are increasingly playing to an audience of millions, not just the 12 people deciding his fate.

They're hitting at Constand's credibility in the media with attacks that Judge Steven O'Neill is deeming too prejudicial or irrelevant for court, and they're holding daily press briefings portraying Cosby as the victim of an overzealous prosecutor and an unjust legal system.

Cosby spokesman Andrew Wyatt has decried Constand's allegations of drugging and molestation as "fantastical stories" and deemed District Attorney Kevin Steele an "extortionist" for spending taxpayer money on the case.

Lawyer Dennis McAndrews, who's been in court following the retrial, said prominent defendants like Cosby almost always play to the court of public opinion when there's no gag order, but that his team's approach hasn't been "particularly effective or convincing."

"It is so strident, and it is so hyperbolic, I think most people will turn it off," said McAndrews, who prosecuted chemical heir John E. du Pont for murder in 1997 and is not associated with either side in the Cosby case.

O'Neill is expected to rule Monday on what could be the Cosby team's last line of attack in the courtroom: whether jurors can hear deposition testimony that Cosby's lawyers say could have insights into what led Constand to accuse him.

Constand's confidante, Sheri Williams, gave the testimony as part of Constand's 2005 lawsuit against Cosby, which he wound up settling for nearly $3.4 million. Cosby's lawyers said that testimony is vital because Williams is not responding to subpoena attempts.


Clicking 'checkout' could cost more after Supreme Court case
Court Watch | 2018/04/15 05:38
The Supreme Court is hearing a case this week that could affect how much customers pay for online purchases.

At issue is a rule saying that businesses don't have to collect state sales taxes when those businesses ship to a state where they don't have an office, warehouse or other physical presence.

Large retailers with brick-and-mortar stores have to collect sales taxes nationwide, but smaller online sellers can often avoid doing so.

Large retailers say the rule puts them at a competitive disadvantage. States say they're losing out in billions of dollars in tax revenue.

But small businesses that sell online say the complexity and expense of collecting taxes nationwide could drive them out of business.



Ohio court to decide if ex-player can sue over concussions
Court Watch | 2018/04/05 12:28
The Ohio Supreme Court will decide whether the widow of a former University of Notre Dame football player can sue the school and the NCAA over allegations her husband was disabled by concussions from his college career in the 1970s.

Steve Schmitz was suffering from dementia and early onset Alzheimer's disease when he and his wife, Yvette, filed a lawsuit in Cuyahoga County in October 2014. The lawsuit alleged both institutions showed "reckless disregard" for the safety of college football players and for their failure to educate and protect players from concussions.

The lawsuit said the link between repeated blows to the head and brain-related injuries and illnesses had been known for decades, but it was not until 2010 that the NCAA required colleges to formulate concussion protocols to remove an athlete from a game or practice and be evaluated by doctors.

Steve Schmitz died in February 2015. The lawsuit said the Cleveland Clinic diagnosed him in 2012 with chronic traumatic encephalopathy, or CTE, a brain disease attributed to receiving numerous concussions.

A judge ruled that too much time had passed for Schmitz to sue, a decision overturned by a state appeals court. The state's high court planned to hear arguments from both sides on Wednesday.

A ruling in favor of Schmitz's widow would allow her to return to court and argue the specific allegations regarding the impact of concussions on her husband, a running back and receiver.

Notre Dame and the NCAA argue the statute of limitations for Schmitz to have sued date back to his playing days when he first realized he suffered head injuries. As such, the two-year window for filing a personal injury claim had long passed, the institutions say.


Sales of diesel cars in Germany drop after court permits ban
Court Watch | 2018/04/04 11:35
German officials say there's been a sharp drop in sales of new diesel cars, following a court decision that allows cities to ban the use of heavily polluting vehicles.

Figures released Wednesday by the Federal Motor Transport Authority show new registrations of diesel-powered cars dropped by 25.4 percent in March to under 109,000, compared with about 146,000 during the same month a year earlier.

Germany's top administrative court ruled Feb. 27 that cities can ban diesel cars and trucks to combat air pollution. The decision is a further blow to diesel fuel technology after the revelations that German automaker Volkswagen cheated on U.S. emissions tests.

The value of diesel vehicles in Germany already had fallen significantly, and their market share has fallen since the VW scandal broke in 2015.


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