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Justice

Roberts Court Shields Another Corporation From Collective Suit

On Tuesday, another group of plaintiffs suing together lost their case against a corporation. This time, it was workers. Two weeks ago, it was consumers. In both decisions, the same five-justice majority supported their decisions to whittle away corporate accountability mechanisms with procedural rationales that were so results-oriented as to seem nonsensical to the four dissenting justices and other court-watchers.

The latest case, Genesis HealthCare Corp. v. Symczyk, involved health care workers who claimed they were being docked pay for a 30-minute lunch break even when they worked. In what is known as a “collective action” (similar to a class action), one worker files a claim under the Fair Labor Standards Act, and others who are similarly situated later join on to seek a complete resolution to the issue.

So here’s what Genesis did. It offered the first representative plaintiff $7,500 to settle her claim and gave her ten days to respond. Laura Symczyk never responded, presuming the case would continue on. But that’s not what happened. Instead, Genesis successfully argued that Symczyk’s case became moot when she rejected the offer, because the sum of money would have resolved her case in its entirety and she no longer had any claim before the court.

Of course, as Justice Elena Kagan so pointedly makes clear in her dissent, it isn’t true that an unaccepted settlement offer ends a case. “As every first-year law student learns, the recipient’s rejection of an offer ‘leaves the matter as if no offer had ever been made,’” she writes. But somehow, several lower courts accepted the defendants’ argument that the offer mooted Symczyk’s individual case, and plaintiffs conceded the point. And because plaintiffs didn’t appeal on that issue, the majority accepts a conclusion that, as Justice Kagan writes, “the facts will show to be ridiculous” and “ensures it will reach the wrong decision.” In fact, according to Kagan and her fellow dissenters, not only is the majority wrong in this case; there is no way that a settlement offer could ever moot a case. So that’s that. This case would have no applicability to any other case, leading Justice Kagan to advise, ”Feel free to relegate the majority’s decision to the furthest reaches of your mind: The situation it addresses should never again arise.”

But let’s assume for a moment that a situation could arise, since that’s the basis of a new U.S. Supreme Court precedent (and dissents, while useful, are not binding precedent). Assume that, instead of Symczyk rejecting the settlement, she had accepted a settlement at the paltry price of $7,500, intending to resolve her own claim but not the claims of others. Or perhaps more likely, assume that another court, guided by the majority opinion’s silence and not the dissent, disagrees with Justice Kagan and decides that a rejected offer can moot an entire collective case. If courts interpret this to mean that all other workers no longer have a claim, corporations can dispense with every collective action against them simply by buying off just one worker at an astronomically lower price than litigating or settling with all the workers. And it’s possible courts could also apply this to the other mechanism that enables plaintiffs to band together, the class action.

The irony here is that collective and class action mechanisms exist because it costs too much and is too inefficient for any one consumer or worker to challenge a company-wide policy. So individuals can’t challenge a policy alone, but corporations can dispense with their collective lawsuit, by resolving the claim with just one person. Another example of the Roberts Court’s brand of access to justice.

Justice

High Court Squelches Ability To Hold Anyone Accountable For Human Rights Violations Abroad

What started out as a case about whether corporations could be held accountable in U.S. courts for human rights abuses against foreigners abroad turned into a case about whether anyone can be held accountable. And on Wednesday, the U.S. Supreme Court held that the answer is, mostly, no.

In a sweeping holding, Chief Justice John Roberts led a splintered court in ruling that several Nigerians alleging an oil company aided an abetted torture, arbitrary killings, and indefinite detention could not sue, because the corporate conduct occurred outside the United States. Roberts reasoned that what is known as the “presumption against extraterritoriality” applies to a 200-year-old statute that authorizes civil lawsuits by “aliens” for “violations of the law of nations,” meaning courts should err against enforcing a law intended to punish egregious foreign conduct in the frequent instances when that conduct takes place in a foreign country.

“[T]here is no indication that the ATS was passed to make the United States a uniquely hospitable forum for the enforcement of international norms,” Justice Roberts wrote for the majority in Kiobel v. Royal Dutch Petroleum.

Roberts’ conclusion is rebutted by the very conduct the Alien Tort Statute was designed to prevent. Piracy was one of the primary torts targeted by Congress at the time of ATS’ passage – conduct that inherently takes place on the high seas. Justice Stephen Breyer explains in a four-justice concurring opinion that would decide the case on significantly narrower grounds:

As I have indicated, we should treat this Nation’s interest in not becoming a safe harbor for violators of the most fundamental international norms as an important jurisdiction related interest justifying application of the ATS in light of the statute’s basic purposes—in particular that of compensating those who have suffered harm at the hands of, e.g., torturers or other modern pirates. Nothing in the statute or its history suggests that our courts should turn a blind eye to the plight of victims in that “handful of heinous actions.”

Now, that handful of heinous actions will have to find remedy elsewhere. This decision not only means that Nigerians cannot sue foreign corporations for their conduct abroad. On this particular point, the four-justice Breyer concurrence agreed that this case did not pass muster. Roberts’ sweeping pronouncement against extraterritoriality may also mean that foreign nationals subject to abuse, for example, at the hands of a U.S. corporation that houses its factories in places whose laws shield it from liability, or an American citizen who commits human rights violations abroad against foreigners, also could not be subject to suit in the United States.

In two recent federal appeals court decisions, lawsuits that challenged torture abroad by two foreign actors were allowed to proceed in U.S. courts because the defendants had lived or were living in the United States. As Justice Breyer points out, Congress is aware that the ATS is the basis for these sorts of lawsuits, and has not sought to amend the act in any way – likely because they recognize that the act was intended to target foreign conduct that is otherwise difficult to reach. But that did not stop the Roberts majority from inferring the narrowest possible congressional intent.

The scope of the opinion will not become clear until it is interpreted by courts. Extraterritoriality is a legal concept that asks not just whether conduct took place abroad, but also whether the claims “touch and concern the territory of the United States” such that a plaintiff can overcome the presumption against them. The only hint the court gives is that lawsuits against corporations will face a particularly heavy burden, noting, “Corporations are often present in many countries, and it would reach too far to say that mere corporate presence suffices.”

What is clear is that the presumption is exceedingly difficult to overcome, and that both individuals and corporations have a high chance of skirting liability simply by doing their dirty work elsewhere.

Justice

Why The Leading Attack Against Labor Secretary Nominee Tom Perez Falls Flat


On Thursday, the Senate Health, Education, Labor and Pensions Committee is scheduled to hold a confirmation hearing for Tom Perez, the current Assistant Attorney General for Civil Rights and President Obama’s nominee to be the next Secretary of Labor. As if on cue, four of the Obama Administration’s perpetual gadflies — Reps. Darrell Issa (R-CA), Patrick McHenry (R-NC) & Bob Goodlatte (R-VA) and Sen. Chuck Grassley (R-IA) — released a report yesterday with the breathless title “DOJ’s Quid Pro Quo with St. Paul: How Assistant Attorney General Thomas Perez Manipulated Justice and Ignored the Rule of Law.” The report accuses Perez of brokering a “quid pro quo” deal where DOJ agreed to keep out of a potential fraud lawsuit against the city of St. Paul if St. Paul agreed to withdraw a civil rights case that was pending before the Supreme Court. Here’s what actually happened:

 

1. Perez’s Actions Likely Saved A Key Prong Of Federal Fair Housing Law

The federal Fair Housing Act forbids most landlords, realtors, mortgage lenders and other people involved in selling or renting housing from engaging in racial, gender, religious or several other forms of discrimination. Like all discrimination cases, however, these lawsuits are notoriously difficult to prove because they turn upon the secret reasons why banks and property owners decide to deal with certain people and not others. There’s nothing illegal about renting to a white couple when a black couple also wanted the same unit, or about denying a home loan to a woman or a minority — unless, of course, the decision not to rent to the black couple or to deny the loan was made because of their gender or minority status.

For this reason, civil rights law provides several mechanisms that allow victims of discrimination to pursue cases without first having to develop a talent for mind-reading. One of the most important of these mechanisms is “disparate impact” lawsuits, which allow a court to infer discrimination if an renter or lender’s policies consistently lead to women or minorities winding up with the short end of the stick. Thus, for example, Perez’s Civil Rights Division won a $335 million settlement from the mortgage lender Countrywide, after it discovered that Countrywide “charged higher fees and rates to more than 200,000 minority borrowers across the country than to white borrowers who posed the same credit risk.” In one year, for example, “Countrywide employees charged Hispanic applicants in Los Angeles an average of $545 more in fees for a $200,000 loan than they charged non-Hispanic white applicants with similar credit histories.” DOJ was able to use this pattern of discrimination to win this settlement, thanks to the concept of disparate impact, even though they never uncovered a smoking gun document where Countrywide’s senior management openly confessed to racial discrimination.

While the Supreme Court has never considered whether disparate impact suits are permitted under the Fair Housing Act, all nine of the federal appeals courts to consider the question held that they are. Chief Justice Roberts, however, crusaded against these kinds of lawsuits for more than 30 years, and when an unusually weak Fair Housing claim reached the Supreme Court in 2011, many court observers feared that the conservative justices would use it an opportunity to gut the Fair Housing Act and forbid disparate impact housing suits. Perez helped convince the city of St. Paul, which brought that very weak case to the Supreme Court’s attention, to withdraw its appeal — potentially saving much of federal fair housing law in the process.

2. DOJ’s Leading Expert On Cases Alleging Fraud Against The Federal Government Called For DOJ To Dismiss The Fraud Lawsuit. In His Words, “This Case Sucks.”

Read more

Health

Judges Threaten To Hold Governor In Contempt For Ignoring Prison Health Care Crisis

California Gov. Jerry Brown (D)

A panel of federal judges in California lambasted Gov. Jerry Brown (D) on Thursday, for attempting to end judicial oversight of inmate health care and refusing to reduce dangerous overcrowding in state prisons. The panel found his lack of action was unconstitutional and presented a public health risk — and could lead to Brown being found in contempt of court.

Under the ruling — which the Brown Administration will appeal — California will have to submit a plan outlining how it proposes to reach safe inmate population levels within 21 days. The decision expands on another judge’s ruling last week that court oversight of California prison health care should not end considering the state’s inability to provide inmates with appropriate mental health care due to overcrowding.

The U.S. Supreme Court ruled less than two years ago that California was failing to meet constitutional standards prohibiting cruel and unusual punishment due to rampant prison overcrowding and the resulting inadequate medical services. Brown and other California officials have argued that their efforts to address the issue have been sufficient, and that they should no longer be forced by courts to meet the population standards since the problem has basically been solved:

Deborah Hoffman, a spokeswoman for the California Department of Corrections and Rehabilitation, criticized the judges’ decision in a prepared statement.

“The truth of the matter is that California has invested more than a billion dollars to transform its prison health care system into one of the best in the country,” her statement said. “Our prisons now provide timely and effective health care to inmates that far exceeds what the Constitution requires.”

Currently, the prisons hold 119,542 inmates, or 149.5% of the number they were designed to hold, according to a report released this week by the corrections department.

The jurists…have ordered the state to reduce crowding to 137.5% of capacity. About 9,500 inmates would have to be removed to meet that goal.

Contrary to Hoffman’s and the Brown Administration’s rosy views on the state of California’s prison health system, the Golden State has a horrible record of providing sufficient services to prisoners. That’s particularly significant for the medically vulnerable prison population, which is comprised of a disproportionate number of minorities and low-income Americans — 37 percent of whom have chronic diseases, 65 to 80 percent of whom have struggled with substance abuse, and 13 percent of whom suffer from severe mental illness. With state cuts to mental health funding and California’s bursting prison population, prisons have also turned into de facto asylums, perpetuating cycles of mental illness and poverty in minority populations while enshrining stigma against ex-convicts and mental patients.

Justice

10 Years After They Were Declared Unconstitutional, 14 States Still Have ‘Sodomy’ Laws

Ten years ago this June, the Supreme Court struck down Texas’ ban on “[d]eviate sexual intercourse” in Lawrence v. Texas, declaring in the process that the law may not criminalize non-commercial sexual activity between consenting adults. As Dana Liebelson reports, however, 14 states still have anti-sodomy laws on the books nearly a decade after the Supreme Court declared them unconstitutional. These include four states — Montana, Oklahoma, Texas and Kansas — which specifically outlaw gay sex, in addition to ten other states outlawing oral or anal sex between any two partners. In 2011, Tim Murphy mapped this out:

Last week, Virginia Attorney General Ken Cuccinelli (R) filed a brief seeking to keep Virginia’s so-called “crimes against nature” law on the books. Although he claims he’s doing so merely to allow prosecutions against adults having sex with children and similar crimes, he had the opportunity to vote for such a narrow and constitutional sex ban when he was a state lawmaker. Instead, he voted to keep Virginia’s broad and unconstitutional ban on the books.

Justice

One Week Out, Supreme Court’s Anti-Consumer Comcast Ruling Is Already Taking Its Toll

In just the first week since the U.S. Supreme Court rejected a class action lawsuit by more than 2 million Comcast costumers, the decision is already having major repercussions in several other cases alleging malfeasance by major corporations.

On Monday, the U.S. Supreme Court kicked two other class action challenges back to the lower court in light of its ruling in Comcast v. Behrend. In both cases, the plaintiffs had secured hard-fought wins just to establish that they could sue as a class. Now, they will have to argue that threshold question yet again — using the new harsher standard imposed by the Court’s five conservative justices — before they even have a chance to make the case that the defendants are liable. And in another case decided just two days after Comcast, a federal trial judge relied upon the decision to reject several claims of a class suing Applebee’s for wage-and-hour law violations.

In the Comcast ruling issued last Wednesday, five justices sided with Comcast in a significant but little-noticed ruling that denied consumers the opportunity to challenge alleged monopolistic practices and further eviscerated the class action, the mechanism that enables multiple individuals to band together with the necessary resources to take on corporate behemoths. The four dissenting justices who fumed at the audacity of the decision took solace in the fact that it should have limited application to other cases. But early indications are that the decision has legs.

In each of the three cases already affected by the ruling, Comcast was the basis for rejecting rulings in favor of the class and instead siding with the defending companies. In one, a class of consumers alleging particular washing machine models were defective will have to re-litigate the claim that individuals can join the class even if their faulty appliance hasn’t yet developed mold and foul odors. In another, a group of RBS Citizens employees will have to invest even greater resources into merely arguing that they should not have to challenge the company’s widespread denial of overtime pay one case at a time.

The plaintiffs in both of these cases won the right to sue as a class both at trial and before the federal appeals panel. In the appeals court decision ruling against Whirlpool, the court cited Judge Richard Posner, a pioneer of the conservative law and economics movement, who upheld a class lawsuit in a case alleging the exact same washer defect. In that case, he rejected claims that each plaintiff had to prove individual damages at such an early stage in order to certify the class, since plaintiffs must later prove their own damages before they can be compensated. Posner explains:

A class action is the more efficient procedure for determining liability and damages in a case such as this involving a defect that may have imposed costs on tens of thousands of consumers, yet not a cost to any one of them large enough to justify the expense of an individual suit. If necessary, a determination of liability could be followed by individual hearings to determine the damages sustained by each class member . . . The class action procedure would be efficient not only in cost, but also in efficacy, if we are right that the stakes in an individual case would be too small to justify the expense of suing, in which event denial of class certification would preclude any relief.

This is precisely the reason why the class mechanism exists, and why it is such a blow to consumers’ rights, employees’ rights, and corporate accountability, that the Supreme Court is steadily eroding its viability. As Reuters reports, several other lawyers are already citing the decision in major lawsuits against the corporations they represent.

Climate Progress

Supreme Court Rejects API’s Challenge To EPA Air Pollution Rules, Everyone Benefits


The Supreme Court rejected a challenge to the Environmental Protect Agency’s air pollution rules this morning.

The case, American Petroleum Institute vs. EPA, saw the oil lobby disputing a rule adopted in 2010 that “set a tighter Clean Air Act standard for short-term spikes in nitrogen dioxide pollution near roads.” This new standard is 100 parts per billion for one hour, compared to the previous annual standard of 53 parts per billion dating back to 1971.

Nitrogen dioxide is a pungent, reddish-brown gas with a strong odor, and is emitted from auto exhaust and fossil fuel power generation. The DC Circuit upheld the rule in July of last year, finding that it addressed a real public health threat. The agency had pointed to scientific data showing the effect of nitrogen dioxide on the public, particularly asthma sufferers.

The Supreme Court’s decision to not hear the case means the DC Circuit’s 2012 decision stands — and its decision was fairly clear:

The unanimous three-judge panel ruled that EPA’s move was not arbitrary and capricious and did not violate the Clean Air Act. On a separate question over EPA’s plan for implementing the standards, the court punted, saying the statement was not final agency action and therefore not subject to review.

On the claim that EPA’s own regulations required it to rely on peer-reviewed studies, Judge Douglas Ginsburg wrote that the challengers were simply incorrect.

Perhaps the API should have had its brief peer-reviewed,” he quipped.

Nitrogen dioxide in the atmosphere produces ozone when acted on by sunlight. The IPCC considers ozone to be the third most important greenhouse gas behind carbon dioxide and methane. A recent study by NASA’s Jet Propulsion Laboratory found that where nitrogen dioxide is cleaned up is crucial:

“When it comes to reducing ozone levels, emission reductions in one part of the world may drive greenhouse warming more than a similar level of emission reductions elsewhere,” said Kevin Bowman, lead author of the study, published recently in the journal Geophysical Research Letters. “Where you clean up ozone precursor emissions makes a big difference. It’s all about — to use a real estate analogy — location, location, location.”

Courtesy of the Supreme Court, EPA monitoring of nitrogen dioxide in this new standard can only help build that understanding of where greenhouse emissions originate.

LGBT

GOP Senator: Republican Presidential Candidate Who Supports Marriage Equality Is ‘Inevitable’

During an appearance on NBC’s Meet The Press Sunday morning, Sen. Jeff Flake (R-AZ) admitted that a Republican presidential candidate who supports marriage equality is “inevitable” and that such a candidate would receive widespread support from across the political spectrum.

While Flake’s statement is reflective of rapidly shifting U.S. attitudes towards support for LGBT Americans — and come at the end of watershed week when the Supreme Court took up cases regarding the constitutionality of anti-gay laws Proposition 8 and the Defense of Marriage Act — it appears that cultural tide hasn’t quite swept up Flake with it yet, as the senator stood by his narrow interpretation of “traditional marriage” between one man and one woman:

CHUCK TODD (HOST): Let me ask you on gay marriage. Could you support a Republican presidential candidate some day who supported same-sex marriage?

FLAKE: Oh, I think that’s inevitable. There will be one and he will receive bipartisan support — or she will. So I think that yes, the answer is yes.

TODD: And where are you on this issue, you say it’s inevitable. Are you — Lisa Murkowski, a Republican colleague of yours called it evolving on the issue. Are you evolving to use her words on this issue?

FLAKE: I believe that marriage should be between a man and a woman I still hold to the traditional definition of marriage.

TODD: Is there something that you — are you thinking about it? Can you imagine changing your position before you left the U.S. Senate?

FLAKE: I can’t. I tell you, in the past I’ve supported repealing Don’t Ask, Don’t Tell. I’ve supported the [The Employment] Nondiscrimination Act as well, but I hold to the traditional definition of marriage.

Flake and other politicians opposing marriage equality find themselves on the wrong side of history and, increasingly, the opinion of the American public. Support for marriage equality has skyrocketed in recent years, and the latest election cycle saw the election of the first openly-gay U.S. senator, as well as the first openly bisexual U.S. congresswoman.

Still, a Republican nominee who supports marriage equality would face significant hurdles from members of their own party, as social conservatives have threatened to revolt if the GOP abandons its hardline views on LGBT rights and marriage equality. In fact, during a separate appearance on Fox News Sunday, former RNC chair Ed Gillespie hinted that the growing support for marriage equality could force Republicans to drop their call for a federal amendment against marriage equality from their platform.

LGBT

Family Research Council: Marriage Keeps Men Over 55 From Cheating With Young Women

Marriage is somehow keeping this man committed to his fun-loving wife so he doesn't get some young girl pregnant.

During Tuesday’s oral arguments about Proposition 8, Justice Elena Kagan challenged attorney Charles Cooper about his claims that procreation is the purpose of marriage. She inquired whether a couple over the age of 55 should be allowed to marry since they could no longer produce a child. Cooper attempted to counter with the absurd argument from his reply brief that men are still fertile and that prevents them from cheating with younger women. Since he didn’t get to fully articulate his point, the Family Research Council’s Peter Sprigg is happy to help him out:

Perhaps Cooper was wary of appearing sexist to Justice Kagan if he stated the truth more bluntly—55-year-old women are virtually always infertile, but 55-year-old men are not. As frustrating as it may be to some feminists, there are some sex differences which cannot be overcome. (Justice Antonin Scalia tried to save Cooper with a joke about Strom Thurmond, the late U.S. Senator who continued to father children well into his 70’s, but it seemed to go over the audience’s heads.)

Society’s interest in promoting “responsible procreation”—the term most commonly used in defending marriage as the union of a man and a woman—involves not just promoting procreation itself, and promoting it in a responsible context (i.e., where the mother and father who make a child are both committed to the child and to each other through marriage). “Responsible procreation” also implies an effort to discourage irresponsible procreation—a quite plausible example of which might be a 55-year-old man going around impregnating fertile women (presumably younger than himself) who are not his wife.

Sprigg does not share Cooper’s concern about appearing sexist. Apparently, the fertility of the marriage is only defined by whether the man can still produce sperm. It also doesn’t seem to matter if women cheat or if men cheat with older women, because cheating only seems to be a problem if it results in “irresponsible procreation.” It’s unclear what the stakes are if the man is sterile, and presumably a vasectomy would immediately nullify a marriage license.

Obviously this is all nonsense, but this is the corner conservatives have painted themselves into in an attempt to avoid sounding like they’re anti-gay. By turning against heterosexuals instead, they prove that these arguments have nothing to do with same-sex marriage. Whether marriage is about children, monogamy, or simply reinforcing sexist gender norms, none of these points explains why same-sex couples shouldn’t have equal access to it.

LGBT

Jon Stewart To Supreme Court: Yes, DOMA Was Passed To Discriminate Against Gays

On Thursday night’s The Daily Show, Jon Stewart took the Supreme Court to task for the Justices’ ambivalence about the discriminatory intent behind the passage of the Defense of Marriage Act, highlighting anti-gay testimony from the House floor in 1996. He also called out Justice Scalia’s claim that there is “considerable disagreement among sociologists,” pointing out that there is actually consensus among medical professionals, “whereas on the opposing side, there’s some fucking guy who put out a thoroughly discredited study, or as that’s known on the right, ‘conclusive proof.’”

Stewart had little patience for Justice Alito’s caution that same-sex marriage is “newer than cell phones or the Internet”:

STEWART: We want you to step in and render a decision based on whether it’s right, and fair, and just under the Constitution — having nothing to do with its “newness” and what you think might happen, which, by the way, what do you think might happen? That they’ll discover that letting two ladies get married is going to rip open a hole in the ozone layer? I got news for you, gay marriage will definitely cause less national harm than cell phones or the Internet.

Here’s one thing I’m pretty sure you don’t have to do: you don’t have to beta-test rights. “Black people have only been here 50 years, I mean, let’s see how the Netherlands does with them before we lift the barriers.”

Watch it:

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