Archive for April, 2017

The power to describe what a ballot proposition does

State attorneys general aggressively use, and frequently misuse, the legal authority often vested in them to sum up in language for voters what a ballot measure would do or mean. One chronic area of frustration: AG summaries of measures intended to bring California public pensions under better fiscal control [Judy Lin, L.A. Times via Steve Greenhut, California Policy Center]

Banking and finance roundup

  • “The real-world impact of Dodd-Frank, stress tests and other regs” [M&T Bank slideshow, American Banker] “Six feet of new mortgage regulations help explain slower housing market” [Ira Stoll]
  • Will Trump administration allow banking for cannabis-related businesses? [Kevin Funnell]
  • “‘Sustainability Standards’ Open A Pandora’s Box Of Politically Correct Accounting” [Howard Husock and Jim Copland]
  • An assumption of complete transparency would take away “the reason for financial intermediation in the first place” [Arnold Kling]
  • Statutes of repose in securities actions are important in protecting interests on both sides [WLF on CalPERS v. ANZ Securities, Inc.]
  • Encrypted messaging services allow Wall Streeters to bypass all sorts of regulatory scrutiny and speak freely, can’t have that [Bloomberg]

Free speech loses a round Down Under, 18C unchanged for now

In a defeat for free expression in Australia, the country’s Senate has rejected the Turnbull government’s proposal to soften elements of Section 18C of the Racial Discrimination Act, which bans so-called hate speech based on race [The Guardian, ABC] Opposition to the change was led by the opposition Labor Party, whose spokesman for multicultural affairs, Tony Burke, said “Any change that results in more permission being given for racial hate speech is bad for Australia.” In 2011, an Australian federal court found commentator Andrew Bolt guilty under the law over remarks in which he is said to have implied that some fair-skinned persons of part-aboriginal descent elect to classify themselves as aboriginal for career advancement.

By coincidence — although not really so, if you see what I mean — a planned lecture tour of Australia by AEI’s Ayaan Hirsi Ali, a vocal critic of female genital mutilation, sharia law, and jihadism, has been called off following calls to venues and insurers threatening “trouble.” Ali, who was born Muslim but came to disagree with the religious tenets of Islam, already travels with armed guards because of the credible threat of assassination [Kay Hymowitz, City Journal]

Relaxing the ABA’s rules on law school faculty structure

The American Bar Association is proposing easing its mandate that law schools use full-time faculty for at least one-half of courseload; the new minimum would be one-third. The shift would be a step toward reviving the once-common and generally less expensive model of law school oriented more toward training-for-practice and less toward scholarship and research. I recommended similar reforms in Schools for Misrule. [Paul Horwitz; Paul Caron and links]

Labor and employment roundup

  • Just another day on the one-way-attorney’s-fee beat: after $87K cop-discrimination verdict, lawyer wants $2.2M award [NJ.com]
  • U.S. Chamber white paper on needed fixes in labor law [Jon Hyman and report, “Restoring Common Sense to Labor Law: 10 Policies to Fix at the National Labor Relations Board”]
  • California employee-seating class actions begin paying off, $700,000 against Abercrombie & Fitch [Ford Harrison, earlier]
  • And good riddance: Trump signs CRA bill repealing labor blacklisting rule for federal contractors [Kathy Hoekstra/Watchdog, Trey Kovacs/CEI, Ford Harrison, earlier, background via PLF]
  • Trend worth resisting, if true: transnational norms emanating from International Labour Organization etc. said to be increasingly shaping U.S. labor law [James Brudney via Employment Law Prof]
  • To protect free speech and jobs, cut the EEOC’s budget [Hans Bader]

Third Circuit: neighbors who criticized condo residents over emotional support dogs must face civil rights suit

In blog posts and comments, two residents of a Virgin Islands condominium complex criticized two other residents who were (in line with rights prescribed to them under federal law) keeping emotional-support dogs despite a no-dog rule in the complex. Among other statements, one or the other of the two said dog owners would be “happier in another community,” speculated that “diploma mill” paperwork could certify any canine whose owner cared to claim stress, suggested the complex should “lawyer up” and be prepared to go to court to defend its rule against “known violators,” and proposed the dog owners be “ostracized” by other residents.

The dog-owning residents sued the neighbors, along with the condo association and other defendants. They cited federal legal interpretations, which have since been buttressed by a regulation issued in the Obama administration, that hold it “hostile environment harassment” under the Fair Housing Act to make statements that “interfere” with another’s exercise of rights under the law.

Now the Third Circuit, as part of a decision resolving numerous issues about the case, reversed grants of summary judgment in favor of the two blog writers and ruled that they could properly be sued for damages for creating a hostile environment under the Fair Housing Act. It described as “harassment” various instances of their critical speech and noted that a single instance of harassing speech could give rise to liability under the law. It is not clear whether the parties raised, and the court did not make any gesture toward considering, whether some or all of the statements involved might be protected by the First Amendment, which is mentioned nowhere in the opinion. [Revock v. Cowpet Bay West Condominium Association et al., see relevant section VI, pp. 31-41 of opinion via John Ross, Short Circuit]

As Hans Bader of the Competitive Enterprise Institute has pointed out, the Ninth Circuit in 2000 slapped down federal officials for having investigated Berkeley, Calif. residents who had fought a housing project that they believed would bring mentally ill residents or recovering substance abusers (both protected as disabled under the Fair Housing Act) to their neighborhood. “It found this principle was so plain and obvious that it denied individual civil rights officials qualified immunity for” having investigated the citizens. That case [White v. Lee] would appear to stand for the proposition that the First Amendment provides robust protection for much speech that criticizes, opposes, and disparages others’ exercise of rights under the Fair Housing Act, and that the speech does not lose protection just because others regard it as retaliatory or discouraging to the exercise of rights.

More: Hans Bader, Scott Greenfield, and Eric Goldman, who got to the case before either of us.

April 12 roundup

  • Judge denies motion to dismiss in Kentucky Trump rally violence suit, now try explaining what that means to some headline writers [Ken White, Popehat]
  • False liens, threats of “arrest” cited in indictment of eight Colorado sovereign citizens [Boulder Daily Camera]
  • How virtual reality (VR) may give rise to tort claims [2-part Volokh Conspiracy: first, second]
  • D.C. Circuit: no, the FCC can’t enable lawsuits over “unsolicited” faxes that recipients did in fact agree to [NFIB]
  • Economist seems glad free online Berkeley courses got saved; ADA fans in comment section urge his firing, call him felon [Alex Tabarrok, MargRev]
  • With one in four of all patent cases going to a single federal judge in east Texas, forum-shopping is a menace to judicial impartiality [Jonas Anderson, SSRN]

When Truman seized the steel mills

65 years ago this week President Harry Truman by executive order seized control of the U.S. steel industry, then facing a labor impasse. The Supreme Court didn’t let him get away with it, despite his lawyers’ claims that the emergency arising from the Korean War, then in progress, gave him inherent power to act in the national interest. The case of Youngstown Sheet & Tube v. Sawyer was to set an outer bound on Presidential power, which continues to be felt in cases to this day. I’ve got a write-up at Cato at Liberty.