Archive for November, 2016

Trump’s business interests and the Emoluments Clause

Given the complex ongoing dealings between the Trump Organization and foreign governments, the Emoluments Clause of the Constitution will require Congress to “decide what it is willing to live with in the way of Trump conflicts” — and it should draw those lines before the fact, not after. That’s what I argue in a new Philadelphia Inquirer piece. Excerpt:

…Trump points out that the president is exempt from the conflict-of-interest laws that bind Congress and the judiciary, but that doesn’t mean he will escape scrutiny from public opinion or from the body of federal law as a whole, including the Emoluments Clause.

That clause reads in relevant part: “And no Person holding any Office of Profit or Trust under [the United States] , shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.”…

The wording of the clause itself points one way to resolution: Congress can give consent, as it did in the early years of the Republic to presents received by Ben Franklin and John Jay. …

…it can’t be good for America to generate a series of possible impeachable offenses from a running stream of controversies about whether arm’s-length prices were charged in transactions petty or grand. …

There is no doubt that doing the right thing poses genuine difficulties for Trump not faced by other recent presidents. If he signals that he understands the nature of the problem, it would not be unreasonable to ask for extra time to solve it.

For more detail, Randall Eliason has a helpful explainer, e.g. on why Emoluments Clause issues do not map well onto the concept of “bribery.” (Bribery is subject to a separate ban, while both presents and some other payments can violate the Emoluments Clause even if given and received with the purest of motives.)

Update: With Trump’s announcement this morning that he intends to step back from management involvement with the Trump Organization, I’ve adapted this post into a longer piece at Cato at Liberty on what comes next. I quote Prof. Bainbridge, who’s got a second round of observations here.

Yet more: memos shed light on how the Department of Justice has construed the obligations of the Emoluments Clause over many decades. And the Washington Examiner, which recently welcomed Tim Carney as new opinion editor, suggests an “occluded trust.”

English Court of Appeal: litigation funders on hook for fee shift

Casting aside traditional prohibitions on champerty and maintenance, the United Kingdom has of late thrown open its doors to “litigation finance” enterprises that fund legal actions as an investment in exchange for a share of the proceeds. But now a very important constraint may be developing as a corollary: backers of legal action may find themselves on the hook for the fee shifts that are payable to successful opponents under the country’s loser-pays (“costs follow the event”) rules. “Litigation funders will be liable for indemnity costs where these are awarded against their funded client, even if the funder itself has been guilty of ‘no discreditable conduct’, the Court of Appeal ruled today in Excalibur Ventures v Texas Keystone and others [2016] EWCA Civ 1144.” [Law Gazette]

“The $20 Million Bucket of Chicken”

KFC’s menu states that its “Fill-Up” $20 deal includes eight pieces of chicken plus a variety of sides that it thinks will serve a party of four. A Hudson Valley, N.Y. woman says she was misled by advertising materials that showed an overflowing bucket. The company offered her a coupon in recompense for her disappointment, but she wants $20 million instead in individual (not class) damages. [Nick Farr, Abnormal Use; Fortune] More: Baylen Linnekin rounds up poultry-related litigation.

Supreme Court roundup

Environment roundup

  • Major new Proposition 65 regs spell plenty of new compliance and litigation issues for those doing business in California [Cal Biz Lit, first post in series]
  • For-the-kids federal climate lawsuit on “public trust” theory represents, among other things, giving up on democratic persuasion [Ian Adams, R Street, to which might be added that lawsuits pretending to represent the future interests of children in general act as power transfers to lawyers and the judiciary] A different view: David Bailey and David Bookbinder, Niskanen Center;
  • “Why Don’t We Allow Markets to Dictate Parking Policy?” [Ike Brannon, Cato]
  • “Once, protesters threatened to burn Bryson and his family in their home.” [Billings Gazette on Standing Rock standoff; Radley Balko on a prosecutor who might be blurring sympathetic coverage of protests with legal responsibility for them; Shawn McCoy/Inside Sources pushes back against popular narratives on Dakota Access Pipeline]
  • Think our law-based eminent domain system has problems? In Brazil, where poor favelas often lack formal land titling, compulsory public acquisition of land can play out as a matter of discretion [Gregory Dolin and Irina Manta, SSRN]
  • Obama administration plans for drastically more severe fuel efficiency standards are prime target for early rollback [Ronald Bailey]

Circuit court strikes down CPSC rule on adult magnet sets

A Tenth Circuit panel has sent the Consumer Product Safety Commission back to the drawing board in its attempt to ban tiny magnet sets intended for adult use as a desk toy or creative outlet accessory. It ruled that the commission had not conducted an adequate cost-benefit analysis of the ban in line with the requirements of its enabling statute. We covered the CPSC’s legal vendetta against the defiant maker of BuckyBalls; the last surviving company to sell the product is Zen Magnets, which now is allowed to resume operations while the Commission goes back to the drawing board, assuming it decides to do so. [Nancy Nord] And: Nov. 29 statement from Zen Magnets; Abby Schachter, Weekly Standard; Brian Doherty, Reason.

Rules vs. standards in Supreme Court jurisprudence

Better than law school: Frank Easterbrook, John Harrison, Akhil Amar, and Victoria Nourse on rules versus standards in jurisprudence, with particular attention to the work of Justice Antonin Scalia, who made the subject a particular theme of his. The video is from the Federalist Society National Lawyer’s Convention last weekend, which had a Scalia theme.

Can and should the classroom remain politically neutral?

It’s a common hope that public schools will maintain some semblance of broad political neutrality between the great parties and causes in U.S. society. But many have been failing badly at this [Frederick Hess and Chester Finn/U.S. News, AP/Fox News (San Francisco teachers’ union lesson plan)] Related: Washington Post [Montgomery County, Maryland; liberal excused-absence policy following street protests by high school students; dissident student injured]

I’ve got a letter in the Frederick News-Post responding to the paper’s editorial on these topics, which begins with the unfortunate headline “Hate speech is not free speech” and never recovers its footing from there. Related, from Eugene Volokh last year: “No, there’s no ‘hate speech exception to the First Amendment.” (& welcome Instapundit readers)

November 23 roundup

  • Wikipedia founder Jimmy Wales speaks at Cato about standing up to Chinese censors, Friedrich Hayek’s influence on the encyclopedia’s design, and legislative ignorance [video via David Boaz post, related]
  • Unlikelihood of confusion: NJ’s Garden State Parkway sends cease and desist over winery logo [Timothy Geigner, TechDirt]
  • Occupational licensing rules make it hard to move from state to state [Eric Boehm, related Ilya Somin/USA Today and podcast]
  • Lawyers who sued Volkswagen over emissions want $175 million [Joe Mullin]
  • “Top ten dodgy lawyers in literature” [Alex Wade, Guardian]
  • Useful maxim: “Never support any government power you would not want your ideological enemy wielding” [Coyote]

Ohio court: repeated accidents adequate reason to dismiss truck driver

Despite Fred Hartman’s claims of age discrimination, disability discrimination, and retaliation, a state appellate court found that the Ohio Department of Transportation was within its rights to dismiss him. After a series of three preventable truck accidents within a three-week period, the department had put him on a “last-chance agreement,” which was followed several months later by another accident. Hartman “had submitted a doctor’s note requesting accommodation for hearing loss in one of his ears.” [Jon Hyman]