Archive for September, 2017

Banking and finance roundup

  • “The Rise of Financial Regulation by Settlement” [Matthew C. Turk, Columbia Law School Blue Sky Blog]
  • Before buying into the idea that fractional reserve banking has some sort of fraudulent roots, consider the common law concepts of detinue, bailment, and debt [George Selgin, Cato]
  • Cato files brief urging Supreme Court to clarify constitutional status of SEC’s use of in-house administrative law judges [Thaya Brook Knight on Lucia v. SEC]
  • Between FATCA and the Patriot Act, American extraterritorial banking rules keep wreaking havoc on other countries [Ernesto Londoño, New York Times on Uruguay legal marijuana businesses]
  • “Congress Can Rescind the CFPB’s Gift to Trial Lawyers” [Ted Frank, WSJ]
  • “Absent Reform, Little Relief in Sight from Chronic “Merger Tax” Class-Action Litigation” [Anthony Rickey, WLF]

Ted Frank enters the monkey arena

Mike Masnick, TechDirt:

As we highlighted earlier this week, while it was no surprise that PETA and photographer David Slater worked out a settlement agreement to end the ridiculous lawsuit PETA had filed, it was deeply concerning that part of the settlement involved PETA demanding that the original district court ruling — the one saying, clearly, that animals don’t get copyrights — should be thrown out.

It took just a few days for Frank, on behalf of CEI, to file a wonderful and hilarious amicus brief with the court. There are a bunch of reasons why vacatur is improper here, but the real beauty of this brief is in pointing out that Naruto — the monkey — has been left out of the settlement, and thus not “all parties” have agreed. No, really.

More: CEI. Earlier here, etc.

Food roundup

  • Why manufacturers often push for the government to define food terms like “natural” [Peter Van Doren, Cato]
  • The curse of Prohibition: how government nearly killed the cocktail [Peter Suderman]
  • “Judge tosses class action suits over ‘100 percent grated Parmesan cheese’ label” [ABA Journal] “Food Court Follies: Fraud Suits Fall Apart after Plaintiffs’ Candid Admissions During Discovery” [Glenn Lammi, WLF] “Will a class-action suit really benefit those who bought Starburst [candies] expecting eight-percent fewer calories?” [Baylen Linnekin]
  • Farmers are good at replenishing their flying livestock: “How Capitalism Saved the Bees” [Shawn Regan]
  • “Menu labeling rules have not proven to have a significant effect on the amount of calories people consume” [Charles Hughes, Economics21 on FDA decision to proceed]
  • More reactions to the Seventh Circuit’s caustic ruling (“no better than a racket”) on the Subway footlong settlement [George Leef, Cory Andrews, earlier]

N.D.: no heightened duty of care for designated driver

Via Eugene Volokh, the Eighth Circuit has ruled [Hiltner v. Owners Insurance Co.] that a North Dakota trial court improperly assigned a heightened duty of care to a driver following an accident on the grounds that she had been a designated driver at a social outing. Noting contrary rulings in several jurisdictions, it ruled that North Dakota law would not impose such a heightened duty: as a Tennessee court observed in 2008, “[t]o hold a driver liable for the irresponsible actions of an intoxicated passenger would cut against this important social policy of encouraging the use of designated drivers.” More: T. Thomas Metier, Northland Injury Law.

September 13 roundup

  • Scranton, Pa. federal judge “denies ‘exorbitant’ request for nearly $1M in attorney fees after $125K recovery” [ABA Journal; arose from bad faith insurance action on underlying uninsured motorist claim that settled for $25,000]
  • As PETA settles monkey selfie case with hapless photographer, details confirm that “Naruto is really just a prop to be deployed in the case as PETA sees fit.” [Ted Folkman, Eriq Gardner, earlier] A sad catalogue of litigation abuse enabled by PETA’s donors [Frank Bednarz thread]
  • Lively First Circuit opinion upholds extortion conviction of small town police chief [Bob Dunn, Berkshire Eagle, U.S. v. Buffis via IJ’s John Ross, “Short Circuit“; Lee, Mass.]
  • She beat DOMA and the IRS too, and all in great style. My appreciation of Edith Windsor [Cato at Liberty]
  • “North Carolina’s Fickle Finger of Redistricting” [also by me at Cato at Liberty]
  • Me: “Posner was the judge lawyers really didn’t want to run into if they had bad class action settlements to defend” [Jonathan Bilyk, Cook County Record, earlier]

DeVos, Title IX, and sex on campus, cont’d

Part II of Emily Yoffe’s investigation for The Atlantic is if anything more explosive than the first: the campus assault survivor movement promotes concepts of the effect of trauma on memory (contradictory, fragmentary, belatedly-retrieved and even suggestion-induced memories ought not be discounted as forensically probative) that replicate key elements of the repressed childhood memory/dissociation scandal of a generation past (“believe the victims”). And Part III and last: What role does race play?

Debra Saunders quotes me in her new column on Secretary of Education Betsy DeVos’s new decision to reconsider the Dear Colleague and Blueprint policies of the Obama years: [Las Vegas Review-Journal/syndicated]:

Their decision [four Harvard law professors’] to release this memo, said Walter Olson, a senior fellow at the Libertarian-leaning Cato Institute, sends the message that if you want to defend the policy, “you’re not going to have to argue with Libertarians and conservatives” only, you are going to have to argue with left-leaning legal scholars who also care about fairness and due process….

“So much momentum has built up for federally driven changes in campus discipline and rules, so much momentum for unreasonableness,” Olson said, but the unfairness was so striking that it brought together feminists, Libertarians and Trump supporters.

Still, he added, “It took a great deal of courage for [Education Secretary Betsy DeVos] to do this. It would have been easy for her to find some way to dodge it, or postpone it.”

More accounts of discipline at particular campuses: Jesse Singal, New York magazine (USC, Matt Boermeester case, putative victim denies abuse); Nicholas Wolfinger, Quillette (University of Utah).

Constitutional law roundup

  • Even if troublesome for other reasons, discussion of nominees’ religious beliefs does not violate the Constitution’s Religious Test Clause [my post at Secular Right]
  • I’m quoted toward the end of this report: Congress rather than courts likely to get ultimate say on defining “emoluments” [NPR with Peter Overby, audio and related article, earlier]
  • Convention of the States? Federalist Society panel video with Thomas Brinkman, Jennifer Brunner, David Forte, Matt Huffman, Larry Obhof, Matthew Byrne [earlier on Article V conventions]
  • Supreme Court opened — and should now close — “dual sovereignty” exception to rule against double jeopardy [Ilya Shapiro, Cato]
  • Encyclopedia of Libertarianism, 2008, has articles on the U.S. Constitution by David Mayer and on the rule of law by Norman Barry;
  • Following big First Amendment win in Slants case Matal v. Tam, feds drop effort to void trademark of Washington Redskins [Ilya Shapiro, Eugene Volokh, earlier]

Drug company hands patents over to Indian tribe

Allergan: we’ve transferred the patents for our dry-eye drug Restasis to the St. Regis Mohawk tribe, so now the Patent Trial and Appeal Board and our competitors can just go take a hike. The move follows a January decision by the PTAB to drop “a case against the University of Florida citing its sovereign immunity as a state institution. After that ruling, Michael Shore, a lawyer at Shore Chan DePumpo LLP in Dallas that represented the university, said the firm began looking for an Indian tribe that was interested in taking advantage of the ‘arbitrage opportunity.'” Rivals can still challenge the patents’ continuing validity in federal court, but that is a more cumbersome process. [Jonathan D. Rockoff, WSJ]