Latest / Bloomberg Law / Judge Skeptical of Trump Suit Against All Federal Judges in Maryland
Transcript
- 0:02Speaker 1: This is Bloomberg Law with June Grossel from Bloomberg Radio.
- 0:08Speaker 2: Attorney General Pam Bondi has repeatedly criticized federal judges who've
- 0:14Speaker 2: held back President Trump's agenda, calling them liberal activists and
- 0:19Speaker 2: out of control.
- 0:20Speaker 3: Judges have used these injunctions to block virtually all of
- 0:24Speaker 3: President Trump's policies. To put this in perspective, there are
- 0:29Speaker 3: ninety four federal judicial districts. Five of those districts throughout
- 0:36Speaker 3: this country held thirty five of the nationwide injunctions. Think
- 0:42Speaker 3: about that, ninety four districts and thirty five out of
- 0:46Speaker 3: the forty opinions with nationwide injunctions came from five liberal
- 0:51Speaker 3: districts in this country.
- 0:53Speaker 2: And one of those so called liberal districts where nationwide
- 0:57Speaker 2: injunctions have been issued is the District of Maryland, and
- 1:01Speaker 2: the Justice Department has picked that district to file an
- 1:05Speaker 2: unprecedented lawsuit against all the sitting federal judges in the district.
- 1:11Speaker 2: It's over a standing order that blocks for two days
- 1:14Speaker 2: the deportation of detained immigrants who file habeas petitions. Of course,
- 1:21Speaker 2: Maryland is also the district that drew national attention in
- 1:25Speaker 2: the case of Kilmar Abrego Garcia, who was wrongfully deported
- 1:29Speaker 2: to El Salvador joining me is constitutional law expert Harold Krant,
- 1:34Speaker 2: a professor at the Chicago Kent College of Law. How
- 1:38Speaker 2: this lawsuit is unprecedented? How much is this ratcheting up
- 1:42Speaker 2: of the Trump administration's power struggle with the judiciary.
- 1:46Speaker 4: The Department of Justice had options here. They could have
- 1:49Speaker 4: easily chosen one of the twelve cases in which the
- 1:52Speaker 4: automatic stay had been opposed to file an appeal, and
- 1:56Speaker 4: they would have been able to obtain an orly fashion
- 1:59Speaker 4: of pelic review of the propriety of the District of
- 2:02Speaker 4: Maryland standing order which imposed the automatic stay in an
- 2:06Speaker 4: immigration habeasts context. They chose not to do that. They
- 2:10Speaker 4: ratcheted up the tension by filing an parallel lawsuit against
- 2:15Speaker 4: all members of the District of Maryland individually as judges,
- 2:20Speaker 4: and that sets the framework for a very important separation
- 2:24Speaker 4: of powish challenge, namely, whether the executive branch can sue
- 2:30Speaker 4: judges get information about them depositions because they don't like
- 2:35Speaker 4: a standing order. So the procedural posture itself is what
- 2:38Speaker 4: is the most troubling aspect of the case, not the
- 2:41Speaker 4: only one that's certainly the most troubling.
- 2:43Speaker 2: The government says that two day pause in deportations in
- 2:47Speaker 2: cases where detained immigrants are challenging their detainment by habeas corpus.
- 2:55Speaker 2: They say that that inhibits the president's ability to enforce
- 2:58Speaker 2: federal immigration laws and that the Chief Judge has no
- 3:02Speaker 2: authority to issue such a blanket order.
- 3:05Speaker 4: Yeah. So many courts of appeals, and in the case
- 3:08Speaker 4: I think they cited five courts of appeals have automatic
- 3:12Speaker 4: stays in certain contexts in order to preserve the jurisdiction
- 3:15Speaker 4: of the court. And so the District of Maryland is
- 3:18Speaker 4: the site which famously gave rise to the Kilmer Abrago
- 3:22Speaker 4: Garcia case, where the government shipped Garcia out of the
- 3:27Speaker 4: country surreptitiously while a challenge was going on. And so
- 3:32Speaker 4: because they had been burned and the Department Justice had
- 3:36Speaker 4: interfered with the jurisdiction of the court previously, that's what
- 3:39Speaker 4: led to this standing order being promulgated. So, I mean,
- 3:44Speaker 4: the Department Justice is right in the sense that an
- 3:47Speaker 4: automatic stay does interfere with cases in which the individual
- 3:52Speaker 4: has no claim whatsoever not to be deported. But you know,
- 3:55Speaker 4: the delay is only for two days, and given what's
- 3:58Speaker 4: happened before in terms of the due process violation that
- 4:01Speaker 4: the government has committed by transporting Garcia and others away
- 4:05Speaker 4: without any kind of chance for hearing, the court followed
- 4:09Speaker 4: the lead of other court's appeals, which said, look, just
- 4:12Speaker 4: give us two days to see if there's any substance here,
- 4:15Speaker 4: and if there's no substance, we'll say go ahead, ship
- 4:17Speaker 4: the person out. So the Department Justice has taking a
- 4:21Speaker 4: very unusual stance in this context to again increase the
- 4:26Speaker 4: pressure on judges by suing them, which is unparalleled. And
- 4:30Speaker 4: the hearing that we had just a couple of days ago,
- 4:33Speaker 4: the Trump appointee seems very dubious as to the validity
- 4:38Speaker 4: of the Department of Justices challenge.
- 4:41Speaker 2: So Judge Colin, who by the way, normally sits in Roanoke, Virginia,
- 4:46Speaker 2: but the Fourth Circuit assigned him to hear this case
- 4:50Speaker 2: because all the Maryland judges were conflicted out and he
- 4:55Speaker 2: is a Trump appointee. And he said, one of the
- 4:58Speaker 2: things about me is I don't have a very good
- 5:00Speaker 2: poker face. He said to the government lawyer, and I
- 5:03Speaker 2: think you've probably picked up on the fact that I
- 5:06Speaker 2: have some skepticism. He had a lot of skepticism if
- 5:09Speaker 2: you look at what happened at the hearing. Also, he
- 5:12Speaker 2: questioned whether this could lead to other executive branch litigation
- 5:17Speaker 2: against federal benches all the way up to the Supreme Court. Yeah.
- 5:21Speaker 4: I mean, we don't want the specter of DJ suing
- 5:26Speaker 4: judges and having other judges than sitting to judge the
- 5:30Speaker 4: lawsuit against judges, and that comes with subpoenas, depositions, discovery.
- 5:36Speaker 4: Not only said unseemly, it would certainly chill independent judging.
- 5:41Speaker 4: So the very fact of rumging around in a judge's
- 5:45Speaker 4: files to determine what lay behind in this case the
- 5:48Speaker 4: standing order, kind of correspondence there was, would inhibit judicial
- 5:52Speaker 4: freedom and really compromise the independence of the judiciary as
- 5:56Speaker 4: we know it. So I think the judge Calme was
- 5:58Speaker 4: was right on saying that even if there were some
- 6:02Speaker 4: kind of issue on the merits here and there's something
- 6:05Speaker 4: of a case that the Department Justice has, this is
- 6:08Speaker 4: not the way to challenge it. Take it normally and
- 6:11Speaker 4: challenge it up to the four Circuit, and if you
- 6:14Speaker 4: need to the Supreme Court, don't sue the judges themselves.
- 6:20Speaker 2: Representing the judges was Paul Clement, a top conservative litigator
- 6:26Speaker 2: and a former Solicitor General in the George W. Bush
- 6:28Speaker 2: administration who's been appearing in many cases challenging the Trump administration.
- 6:33Speaker 2: He warned about a nightmare scenario in which judges could
- 6:37Speaker 2: be deposed, other internal judiciary documents could be reviewed by
- 6:41Speaker 2: the government executive branch lawyers, cross examining judges and lawyers
- 6:45Speaker 2: for the judges, grilling White House officials in open court.
- 6:49Speaker 4: And again, this is not how these dispeech should be resolved.
- 6:53Speaker 4: I think the Department Justice needlessly fanned the flames of
- 6:57Speaker 4: conflict here. I think they'll be repudiator by the courts.
- 7:01Speaker 4: This was a needless exercise, was a thoughtless exercise, and
- 7:05Speaker 4: I think it will be resolved in the court system.
- 7:07Speaker 4: And the question all these on these cases is will
- 7:11Speaker 4: the government comply? Will they not deport people for at
- 7:14Speaker 4: least that two day period to give judges a sneak
- 7:18Speaker 4: peek at the merits to say well, we need to
- 7:20Speaker 4: have a hearing here, or to say no, go ahead
- 7:24Speaker 4: and deport the individual. We'll have to see where they comply.
- 7:27Speaker 2: And the Justice Department's lawyer refused to commit to not
- 7:32Speaker 2: filing similar lawsuits against federal courts in the future, and they.
- 7:37Speaker 4: Will be repeated at predicted. I think that's the only
- 7:39Speaker 4: way I think judges can react to this provocation. But
- 7:43Speaker 4: if they do file again, we are entering into a
- 7:47Speaker 4: very tumultuous period of even more intense conflict between the
- 7:51Speaker 4: Trump Justice Department and the judges. You know, at the
- 7:54Speaker 4: end of the day, that's even going to frighten the
- 7:56Speaker 4: Supreme Court, which is obviously ruled strongly in President Trump's
- 8:01Speaker 4: favor in most cases. They're not going to like this either.
- 8:04Speaker 4: And I think that the Department Justice is very shortsighted
- 8:08Speaker 4: in following these kind of lawsuits, because at the end
- 8:11Speaker 4: of the day, I think the Supreme Court is the
- 8:14Speaker 4: one that can try to trim the president's sales, and
- 8:18Speaker 4: largely that are his side, but this may push a
- 8:21Speaker 4: couple to the other side.
- 8:23Speaker 2: The Clement mentioned a few different grounds for dismissing the suit,
- 8:28Speaker 2: that the government failed to state a claim through which
- 8:30Speaker 2: they could seek to block the standing order, or that
- 8:33Speaker 2: the court could dismiss the case on judicial immunity grounds.
- 8:37Speaker 1: Yeah, I mean, it.
- 8:38Speaker 4: Seems to me that this is just an improvident jurisdictional channel,
- 8:42Speaker 4: that the dj should be able to sue the standing order,
- 8:46Speaker 4: but not by directly challenging judges themselves. And so the
- 8:51Speaker 4: court could, you know, I don't know if you want
- 8:53Speaker 4: to call a judicial immunity to say that the judges
- 8:55Speaker 4: could never be sued, because I think they probably can
- 8:58Speaker 4: be in some context. So without going down that route,
- 9:02Speaker 4: I think the more delimited route would just be saying
- 9:05Speaker 4: that in this particular context there was a jurisdictional they're
- 9:09Speaker 4: made by the court, and that to have jurisdiction over
- 9:13Speaker 4: the standing order, there should be an appeal in a
- 9:16Speaker 4: concrete case. I mean, maybe there's a standing order that
- 9:19Speaker 4: would give rise to a case or controversy, but there's
- 9:22Speaker 4: no sort of immediate chill to the standing order. And
- 9:27Speaker 4: since it can be challenging a case or controversy, I
- 9:31Speaker 4: think the Court might just stay its hand and say,
- 9:33Speaker 4: as a prudential manner, he's going to wait for that context.
- 9:37Speaker 2: And the judge also asked why they didn't take this
- 9:40Speaker 2: after the Supreme Court, saying it would have been decided quicker.
- 9:43Speaker 2: And that's the path they've taken before, and I wonder
- 9:47Speaker 2: why they didn't bring it to the Supreme Court.
- 9:49Speaker 4: You know, I think, as you said, it's not a
- 9:50Speaker 4: matter of them not wanting to sprinqule to do this.
- 9:53Speaker 4: They simply, either negligently or intentionally tried to fan the
- 9:57Speaker 4: flames of the conflict between judges and the Department of
- 10:01Speaker 4: Justice by choosing this procedural route. And so I think
- 10:04Speaker 4: as well within the Court's power to say you chose
- 10:07Speaker 4: the wrong route. We're not saying you can't challenge this.
- 10:10Speaker 4: You should be able to challenge us, but just not
- 10:12Speaker 4: by suing judges directly, but rather by appealing in a
- 10:16Speaker 4: context of a particular case or controversy.
- 10:19Speaker 2: This illustrates the Trump administration's offensive against the federal judiciary.
- 10:25Speaker 2: There's the inflammatory rhetoric, allegations that the administration has ignored
- 10:30Speaker 2: court orders, and they've filed ethics complaints against two federal
- 10:34Speaker 2: judges for things that they said in the courtroom. What's
- 10:38Speaker 2: the administration's strategy. Are they expecting that judges will be intimidated?
- 10:44Speaker 4: Certainly part of the rationale of the Trump administration is
- 10:49Speaker 4: to receive a softer reception in the courts. So the theory,
- 10:55Speaker 4: I guess is that you have a broadside here, and
- 10:57Speaker 4: a broadside there that judges is down the road will
- 11:01Speaker 4: be more receptive to their arguments and treat their claims
- 11:06Speaker 4: with greater receptivity. You know, but it could backfire. And
- 11:09Speaker 4: as I mentioned before, my thought is that this kind
- 11:12Speaker 4: of action will boomerang because it will scare even judges
- 11:18Speaker 4: who would otherwise be sympathetic with the Trump administration peak safe.
- 11:22Speaker 4: We want to have any kind of independent judging left
- 11:24Speaker 4: in this country, we can't have the executive grant suing
- 11:29Speaker 4: and deposing and seeking private correspondence from judges in particular cases.
- 11:36Speaker 4: So that's the spectru of what we have through this lawsuit.
- 11:40Speaker 4: And again I don't think the Trump administration will achieve
- 11:43Speaker 4: their ends at least through this.
- 11:45Speaker 2: Means how You're going to come back a little later
- 11:47Speaker 2: in the show to talk about our next topic. The
- 11:51Speaker 2: DC Circuit Court allowing the Trump administration to block billions
- 11:54Speaker 2: of dollars in foreign aid. This is Bloomberg. It's a
- 12:01Speaker 2: significant win for President Trump in his efforts to dissolve
- 12:05Speaker 2: the US Agency for International Development and with whole funding
- 12:09Speaker 2: from programs that have fallen out of favor with his administration.
- 12:14Speaker 2: The DC's Circuit Court of Appeals has ruled that the
- 12:16Speaker 2: administration can cut billions of dollars in foreign assistance funds
- 12:21Speaker 2: approved by Congress for this year. The nonprofits and businesses
- 12:26Speaker 2: that sued argued that the President and agency leaders couldn't
- 12:30Speaker 2: defy Congress's spending mandates and didn't have discretion to decide
- 12:35Speaker 2: that only some, let alone none of the money appropriated
- 12:40Speaker 2: by Congress should be paid out. Joining me is Zoe Tillman,
- 12:43Speaker 2: Bloomberg News Senior reporter. A lower court had found that
- 12:47Speaker 2: the administration was violating the separation of powers by not
- 12:52Speaker 2: authorizing the money to be paid in line with what
- 12:55Speaker 2: Congress had approved. Why did the appellate court reverse?
- 13:00Speaker 1: The two to one majority of this DC Circuit panel
- 13:04Speaker 1: basically said that the challengers in this case, which included nonprofits, businesses,
- 13:09Speaker 1: private contractors that do foreign aid work, that they don't
- 13:12Speaker 1: have their own separate constitutional challenge path for something like this.
- 13:17Speaker 1: That if the President wants to refuse to spend money
- 13:21Speaker 1: that Congress has appropriated, which is known as impoundment, there's
- 13:24Speaker 1: a US law that says that's not allowed, and the
- 13:28Speaker 1: only party that can enforce that, basically is Congress. That
- 13:32Speaker 1: an official called the Comptrol or General consue to enforce
- 13:35Speaker 1: that Impoundment Control law, but that there isn't a separate
- 13:39Speaker 1: private cause of action for anyone else to bring a
- 13:43Speaker 1: claim like the one brought in this case saying there
- 13:46Speaker 1: was a separation of powers violation. So the court basically said,
- 13:50Speaker 1: you know, we're not going to reach the question of
- 13:52Speaker 1: whether what Trump is doing in refusing to spend this
- 13:56Speaker 1: money is constitutional or is not constitutional. The Court's but
- 14:00Speaker 1: this type of lawsuit just isn't allowed.
- 14:03Speaker 2: I mean, is it the Government Accountability Office that has
- 14:06Speaker 2: to sue?
- 14:08Speaker 1: Right? So, as the majority said that under the Empoundment
- 14:11Speaker 1: Control Act, the Government Accountability Office and the Comptroller General
- 14:15Speaker 1: have separate roles to play. That they have to send,
- 14:18Speaker 1: you know, there's a notice that goes to Congress, you
- 14:21Speaker 1: know there's a violation, and then within statutorily prescribed period
- 14:25Speaker 1: of time I think it's maybe twenty five days after that,
- 14:28Speaker 1: then the Comptroller General can bring a lawsuit against the
- 14:32Speaker 1: administration to enforce the appropriation that Congress approved. And you know,
- 14:37Speaker 1: the odds of that happening very unclear if that's a
- 14:41Speaker 1: thing that could happen or would happen. Republicans control Congress,
- 14:46Speaker 1: and it's not a situation where Congress has at all
- 14:49Speaker 1: been adversarials to the administration, even when this administration has
- 14:53Speaker 1: really tried to, you know, exercise more control over things
- 14:57Speaker 1: that have been traditionally in constitutiontionally the role of Congress,
- 15:02Speaker 1: like deciding how federal money is that.
- 15:04Speaker 2: The Government Accountability Office has found that the Trump administration
- 15:09Speaker 2: illegally impounded funds authorized by Congress a few times, but
- 15:14Speaker 2: they've never sued over it.
- 15:15Speaker 1: That's true, they've played that oversight role. It just would
- 15:18Speaker 1: be really an escalation between the two branches to suit.
- 15:23Speaker 1: It's not that kind of dynamic.
- 15:24Speaker 2: So far, there's been a lot of lawsuits over Trump
- 15:28Speaker 2: failing to use funds as directed by Congress. Has this
- 15:34Speaker 2: type of analysis been done before?
- 15:38Speaker 1: We certainly have not had a ruling like this, and
- 15:42Speaker 1: definitely not from a circuit court, let alone the DC Circuit,
- 15:46Speaker 1: which sets precedent for the nation's capital and where the
- 15:50Speaker 1: majority of cases against the administration over everything from funding
- 15:55Speaker 1: to fire and has played out. Now, it's important to
- 15:57Speaker 1: say that this is about impoundment. It doesn't automatically knock
- 16:03Speaker 1: out from court parties that are suing over other ways.
- 16:06Speaker 1: The administration has so thought to cut spending. You know,
- 16:09Speaker 1: it doesn't apply to cases regarding certain types of grant
- 16:13Speaker 1: cancelations or suspensions. It doesn't deal with cases we've been
- 16:18Speaker 1: over new conditions that the administration has placed on grants
- 16:23Speaker 1: and contracts and how it wants to direct several dollars.
- 16:27Speaker 1: But to the extent, there are cases that sort of
- 16:29Speaker 1: broadly challenge what they say are legal moved by the
- 16:33Speaker 1: President to simply unilaterally refuse to spend money or obligate
- 16:39Speaker 1: it once Congress has appropriated it. If this DC Circuit
- 16:43Speaker 1: decision stands, and that's a very big if, given things
- 16:46Speaker 1: we expect to come soon, it would really complicate efforts
- 16:50Speaker 1: to bring those types of cases, at least in Washington
- 16:52Speaker 1: going forward.
- 16:53Speaker 2: It was a two to one decision, as you mentioned,
- 16:56Speaker 2: with judges appointed by George H. W. Bush and Donald
- 17:02Speaker 2: Trump in the majority and a Biden appointee dissenting. If
- 17:07Speaker 2: they asked the full DC Circuit to hear the case
- 17:11Speaker 2: on bank there there are more judges appointed by Democrats
- 17:16Speaker 2: than judges appointed by Republicans. Is there any indication that
- 17:20Speaker 2: they might ask for a non bank panel.
- 17:23Speaker 1: Yes, we've gotten, you know, statements from groups involved in
- 17:28Speaker 1: this litigation saying that they're going to pursue options to review,
- 17:33Speaker 1: which we understand to mean they're going to ask the
- 17:35Speaker 1: full DC Circuit to reconsider the panel's decision. And you know,
- 17:39Speaker 1: it's interesting this year because of just coincidence the ways
- 17:44Speaker 1: that the wheel has spun in DC. Even though there
- 17:46Speaker 1: are a majority of or liberal leaning Democrat appointed judges
- 17:51Speaker 1: on the circuit, there have been a number of panels
- 17:54Speaker 1: in consequential cases with majority of Republican appointees who are
- 17:58Speaker 1: more conservative leaning, like Judge Henderson who was an H. W.
- 18:03Speaker 1: Bush appoint a Judge cass who was a Trump appointee.
- 18:06Speaker 1: So it's not a guarantee. The Court is supposed to
- 18:10Speaker 1: set a very high bar for when it takes cases
- 18:12Speaker 1: on bank. It's not just supposed to be you know,
- 18:15Speaker 1: whoever loses gets that next step of review. It's supposed
- 18:18Speaker 1: to be a reserved for extraordinary situations, situations where the
- 18:23Speaker 1: Court you know, seas a need to step in and
- 18:25Speaker 1: really set new precedent for the circuit. But you know,
- 18:29Speaker 1: giving the stakes here, it seems like at least a
- 18:32Speaker 1: contender for the judges to vote to take this up
- 18:37Speaker 1: and reconsider what the panel did is.
- 18:39Speaker 2: This case one of the few where the Supreme Court
- 18:43Speaker 2: refused to step in where the administration lost that motion
- 18:49Speaker 2: before the Supreme Court.
- 18:51Speaker 1: That's right, very early on, and it's this case also
- 18:55Speaker 1: has a number of different claims in it, and some
- 18:59Speaker 1: of the early orders that were at issue involved sort
- 19:04Speaker 1: of related but separate issues on a more sort of
- 19:07Speaker 1: emergency temporary restraining order type basis, So you know, there
- 19:11Speaker 1: were sort of claims related to the government's refusal to
- 19:14Speaker 1: pay money for work that had already been done pursu
- 19:17Speaker 1: into contracts, different from the sort of sweeping constitutional claims
- 19:22Speaker 1: that were at issue in this latest opinion. But early on, yes,
- 19:25Speaker 1: there was a situation where the judge entered orders that
- 19:28Speaker 1: said the government could not just simply refuse to pay money,
- 19:31Speaker 1: especially for this work that had been done early in
- 19:34Speaker 1: the administration, and the Supreme Court had refused to step
- 19:38Speaker 1: in and disturb that initial order that you know, required
- 19:42Speaker 1: the government to keep paying out the money that it
- 19:46Speaker 1: was supposed to. But you know, it's not a merit's decision.
- 19:49Speaker 1: It was on the emergency docket, also known as the
- 19:51Speaker 1: shadow docket. And if this case went back up again
- 19:55Speaker 1: now on a merits basis. That's certainly not a guarantee
- 19:59Speaker 1: that the government would fail to sway a majority of
- 20:03Speaker 1: the justices this time around.
- 20:05Speaker 2: So I mean, does this mean that the Trump administration
- 20:08Speaker 2: can use that money for something else right away? Or
- 20:13Speaker 2: is there an injunction in place or right now?
- 20:16Speaker 1: The Circuit's opinion I believe has not formally taken effect yet.
- 20:20Speaker 1: They haven't issued the mandate, which would be sort of
- 20:23Speaker 1: making it official. There's this time window where the plaintiffs,
- 20:27Speaker 1: the nonprofits and the contractors and the businesses could ask
- 20:31Speaker 1: the full court to reconsider. So sort of nothing immediately
- 20:35Speaker 1: changes for the next few weeks at least. You know,
- 20:38Speaker 1: when money is impounded, my understanding is that you know,
- 20:42Speaker 1: it goes back to the treasury. If that's the administration
- 20:46Speaker 1: is free to do whatever it wants with it. It's just
- 20:48Speaker 1: that it doesn't have to spend it in the way
- 20:50Speaker 1: that Congress proved it to be spent for the fiscal year.
- 20:55Speaker 2: Thanks so much for joining me, Zoe. That's Bloomberg News
- 20:58Speaker 2: Senior reporter, Zoey Tillman. It was a significant win for
- 21:04Speaker 2: the Trump administration when the DC Court of Appeals, in
- 21:07Speaker 2: a two to one vote, ruled that the administration can
- 21:11Speaker 2: cut billions of dollars in foreign assistance funds that were
- 21:15Speaker 2: approved by Congress for this year. I've been talking to
- 21:18Speaker 2: Professor Harold Krant of the Chicago Kent College of Law.
- 21:22Speaker 2: How big a win is this for the Trump administration.
- 21:25Speaker 4: So I think this is a huge win on several
- 21:27Speaker 4: different grounds for the Trump administration. And I think that
- 21:30Speaker 4: the long term impact of decision really rests upon which
- 21:34Speaker 4: of two possible rationales the DC Court of Appeals used.
- 21:39Speaker 4: And in this case is a question of releasing one
- 21:41Speaker 4: hundreds of millions of dollars that the Congress has already
- 21:44Speaker 4: appropriated for foreign aid. President decided not to spend it,
- 21:49Speaker 4: and so would be recipients of the foreign aid sued,
- 21:53Speaker 4: arguing that they have standing because they're injured because they
- 21:56Speaker 4: didn't receive the aid, and that the government acted ultra
- 21:59Speaker 4: virusly violation of separation of powers by refusing to spend
- 22:03Speaker 4: the moneys as directed by Congress. So the District Court
- 22:07Speaker 4: agreed with them and ordered the money to be dispersed
- 22:11Speaker 4: and said that Congress was clear the President has no
- 22:14Speaker 4: independent of poundment authority these acting and violation and the
- 22:17Speaker 4: empowerment control Act. Therefore, the district court judge directed the
- 22:22Speaker 4: administration to spend the money, and the two to one
- 22:25Speaker 4: decision the court overturned that, but again on two different rationales.
- 22:30Speaker 4: The first rationale, which I consider to be the broad
- 22:32Speaker 4: one and more frightening, is that the court said that
- 22:36Speaker 4: if you only are arguing that the president violates the statute,
- 22:41Speaker 4: you don't have a cause of action. There is no
- 22:43Speaker 4: power for anybody who's injured by direct presidential action based
- 22:48Speaker 4: upon violation of statute that can be brought in the
- 22:51Speaker 4: federal courts. This is an astounding decision of immense significance
- 22:56Speaker 4: because the argument is whether the president just stonewalls violates
- 23:01Speaker 4: a statute, ignores the statute, et cetera, et cetera, that
- 23:04Speaker 4: no one can sue to challenge that because the president
- 23:08Speaker 4: is immune from suit. So to me, that is a
- 23:12Speaker 4: very consequential, incredibly broad understanding of precedent and will be
- 23:17Speaker 4: very deleterious in terms of establishing constraints on presidential authority.
- 23:23Speaker 4: The majority also use the second rational that's much more
- 23:26Speaker 4: narrow and I think has some plausibility to it. There
- 23:30Speaker 4: the court said that Congress, in creating the Empowerment Control
- 23:34Speaker 4: Act established the very sensitive procedure by which the Controller General,
- 23:40Speaker 4: an agent of Congress, can decide to sue the President
- 23:45Speaker 4: for violation of the directions from Congress. In those procedures
- 23:50Speaker 4: involved correspondence between the Controller General and members of Congress
- 23:55Speaker 4: some time to study the issue prior to filing suit.
- 23:59Speaker 4: And so the Court said that there is an implicit
- 24:02Speaker 4: preclusion of review, that Congress wanted these kinds of empowerment
- 24:06Speaker 4: controversies to be adjudicated only by the Controller General after
- 24:11Speaker 4: consultation with Congress, not by private third parties. The Court
- 24:16Speaker 4: has held in comparable context that there is an implicit
- 24:19Speaker 4: preclusion of review. I think the issue may be closer,
- 24:22Speaker 4: but certainly my point is that this would have a
- 24:25Speaker 4: much more narrow impact upon future cases. This idea of
- 24:29Speaker 4: implicit preclusion review only arises when there is a kind
- 24:33Speaker 4: of alternative review mechanism specified by Congress. In most of
- 24:37Speaker 4: these other cases we have, the federal employee cases, the
- 24:40Speaker 4: grant cases, there is no implicit alternative procedure, at least arguably,
- 24:46Speaker 4: and so there would not be as much of an
- 24:48Speaker 4: impact upon future litigation. But this first rationale forwarded by
- 24:52Speaker 4: the Court is astonishing. Again and they've said, as shocking
- 24:56Speaker 4: as it may be, that no one can sue for
- 24:59Speaker 4: statutory of violation by the president, that the president's simply
- 25:03Speaker 4: immune from that suit because the APA Administrative Procedure Act
- 25:06Speaker 4: doesn't waive his his immunity and there's no other cause
- 25:09Speaker 4: of action available to make sure that the president follows statutes.
- 25:14Speaker 4: I read presidents differently, and I think we would be
- 25:18Speaker 4: not a very happy place if we said that the
- 25:21Speaker 4: president is immune from satutory violations, because, after all, that's
- 25:24Speaker 4: one of the basic assumptions of our entire separation of powers,
- 25:28Speaker 4: is that the president must comply with statutes, and so
- 25:32Speaker 4: this decision would intentive immunize the president from suits not
- 25:37Speaker 4: only about releasing foreign aid as in this case that
- 25:40Speaker 4: you mentioned, but in so many other contexts as well.
- 25:44Speaker 4: You discharging employees, counceling grants, et cetera, et cetera. If
- 25:49Speaker 4: you could sue a subordinate executive granch official, that would
- 25:53Speaker 4: enable the plaintiffs to get into court. But according to
- 25:56Speaker 4: the DC Circuit handle in this case, there could be
- 25:59Speaker 4: no direct claim against the president in this case himself.
- 26:03Speaker 2: So, as you mentioned, there was a two to one
- 26:05Speaker 2: decision with judges appointed by Donald Trump and George H. W.
- 26:10Speaker 2: Bush in the majority and a Biden appointee dissenting. If
- 26:16Speaker 2: the challengers ask the DC Circuit, the entire DC Circuit
- 26:21Speaker 2: to reconsider the decision, judges appointed by Democrats hold the
- 26:25Speaker 2: majority there. I mean, it's sad to look at this,
- 26:28Speaker 2: as you know, democratic appointed judges versus Republican appointed judges.
- 26:32Speaker 2: But that's the way it seems to be breaking down.
- 26:36Speaker 4: Yeah, And in this case, I just find one aspect
- 26:39Speaker 4: of the majority's decision so frightening and so destructive of
- 26:43Speaker 4: our constitutional order. I'm sure that the entire court that
- 26:46Speaker 4: took up this case would at least narrow the scope
- 26:50Speaker 4: of the majority's decision. And again, going back to the
- 26:54Speaker 4: case we discussed with respect to the standing order of
- 26:57Speaker 4: the District of Maryland, they're at least a Trump appointee,
- 27:01Speaker 4: I think, will have the independence of mind seemingly so
- 27:04Speaker 4: far to say no, the Justice Department has gone too far.
- 27:08Speaker 4: And I think that's healthy. It's healthy to have sometimes
- 27:12Speaker 4: Biden judges going against Biden or against democratic sort of
- 27:17Speaker 4: positions and publican judges doing the same. So we'll have
- 27:21Speaker 4: to see what happens and plays out. If the full
- 27:24Speaker 4: Court takes this case as a whole and that remains
- 27:28Speaker 4: to be seen.
- 27:28Speaker 2: Thanks so much, Hall. That's Professor Harold Krent of the
- 27:31Speaker 2: Chicago Kent College of Law. Turning to other legal news,
- 27:35Speaker 2: a foreign adversary targeted sealed documents in espionage and other
- 27:40Speaker 2: sensitive cases in a breach of the federal judiciary's case
- 27:45Speaker 2: management system. Joining me is Bloomberg Law reporter Jacqueline Thompson. Jacqueline,
- 27:50Speaker 2: what do we know about this hack?
- 27:52Speaker 5: So what we know right now is that at some
- 27:55Speaker 5: point over the summer, judiciary officials started noticing increased thattvity
- 28:00Speaker 5: by folks who had apparently breached the case management system
- 28:05Speaker 5: and had been sitting in there for a while. Their
- 28:07Speaker 5: understanding is that they had used past vulnerabilities that existed
- 28:13Speaker 5: within the system to then go through and start grabbing
- 28:18Speaker 5: information about cases. In those cases were ones that were
- 28:22Speaker 5: under sealed, they were past cases, they were current cases,
- 28:26Speaker 5: and there were cases that hadn't been filed yet as well.
- 28:30Speaker 5: So you know, they had been going through and grabbing
- 28:33Speaker 5: this information that wasn't meant to be made public.
- 28:36Speaker 2: Do you know what kind of information they were looking
- 28:39Speaker 2: for or they got access to?
- 28:41Speaker 5: So one of my sources says that they had targeted
- 28:44Speaker 5: cases that were related to espionage and other national security matters.
- 28:49Speaker 5: There were some cases that were fraud cases, some are
- 28:52Speaker 5: money laundering, and some others were related to agents of
- 28:56Speaker 5: foreign government. So it's the sort of cases that you
- 28:59Speaker 5: would act a foreign adversary would have been to fit
- 29:02Speaker 5: someone from their country or an agent of their country,
- 29:06Speaker 5: or facing scrutiny or investigation within a federal system. That
- 29:10Speaker 5: is something another government would want to know about.
- 29:13Speaker 2: Have they been identified as Russian hackers?
- 29:16Speaker 5: The New York Times has reported that it is Russian
- 29:18Speaker 5: hackers that are behind it. I believe Trump referenced it
- 29:22Speaker 5: in a press office as well as response to a questions, saying,
- 29:25Speaker 5: you know, it's no surprise that's the sort of thing
- 29:27Speaker 5: that Russia does, and you know it's something that could
- 29:29Speaker 5: potentially come up with the summit with Vladimir Putin. But
- 29:34Speaker 5: you know, obviously they have other things they want to
- 29:36Speaker 5: talk about. But Russia has always been known as a
- 29:38Speaker 5: major foreign adversary within the cyber space.
- 29:41Speaker 2: The judicial system noticed this first in July. Why didn't
- 29:46Speaker 2: they do anything about it?
- 29:47Speaker 5: So to even go further back in twenty twenty, there
- 29:50Speaker 5: had been a breach of the Federal judiciary s CAPE
- 29:53Speaker 5: management system, which is the same system that was breached
- 29:56Speaker 5: within this more recent activity. So there were vulnerable within
- 30:00Speaker 5: that system. Courts were encouraged to take precautions that would
- 30:05Speaker 5: allow sensitive documents to be safeguarded and not access by
- 30:09Speaker 5: anyone else who was accessing that system like these foreign hackers.
- 30:14Speaker 5: But years later, it turns out that those same vulnerabilities
- 30:17Speaker 5: were never fully addressed, and it was similar weaknesses within
- 30:22Speaker 5: the case management system that we're exploited this time again.
- 30:26Speaker 5: So we don't know why these issues weren't resolved, and
- 30:30Speaker 5: we're expecting there's going to be future briefings about this issue,
- 30:33Speaker 5: and the Federal Judiciary typically does the press conference with
- 30:36Speaker 5: reporters in September, so we're hoping we'll learn more information
- 30:41Speaker 5: about it then as well.
- 30:42Speaker 2: Is the real worry about witnesses being identified or about
- 30:47Speaker 2: cases being derailed by this?
- 30:51Speaker 5: You know, those are all possibilities here. The information that's
- 30:54Speaker 5: under seal attends to be pretty sensitive information, right, because
- 30:58Speaker 5: it's not anything that you want to be made public.
- 31:01Speaker 5: You wouldn't want the name of a confidential informant made public.
- 31:04Speaker 5: You wouldn't want details about how an investigation originated, any
- 31:09Speaker 5: tips involving you know, sources that federal prosecutors are federal
- 31:14Speaker 5: agents who are investigating these issues that then we're resulting
- 31:17Speaker 5: in charges. You know, any of that sort of sensitive
- 31:20Speaker 5: information being made public. So you know, there's a wide
- 31:23Speaker 5: range of concerns out there for why it's important for
- 31:26Speaker 5: this information to stop the accessed by outside entities.
- 31:31Speaker 2: Does the judiciary have one system that covers all the
- 31:36Speaker 2: federal courts or are they separate systems.
- 31:39Speaker 5: My understanding is they are separate. The cm ECS is
- 31:44Speaker 5: what is often called as the case management system that
- 31:47Speaker 5: the judiciary uses internally. That's the one that lawyers when
- 31:52Speaker 5: they go in to make a filing, that's what they
- 31:53Speaker 5: log it too, and they upload whatever document they have.
- 31:57Speaker 5: And then CACER is sort of the public facing side
- 32:00Speaker 5: of it, and that's where you or I were trying
- 32:02Speaker 5: to figure out, Okay, so and so got charged in court.
- 32:05Speaker 5: Let me pull up that court document and read it.
- 32:07Speaker 5: So there are those two aspects of it. The federal
- 32:10Speaker 5: judiciary generally is a very decentralized place. Each court sort
- 32:17Speaker 5: of does its own thing, but there is a push
- 32:21Speaker 5: right now to modernize the case management system is just
- 32:25Speaker 5: taking them quite a bit to do it. It's not
- 32:28Speaker 5: an easy fix for them to be able to go
- 32:31Speaker 5: through and revamp this saying that exists in every federal
- 32:34Speaker 5: district and appeals court within the country.
- 32:38Speaker 2: And also, I mean, is any system not vulnerable to
- 32:43Speaker 2: cyber attacks these dates.
- 32:45Speaker 5: That's absolutely true. If you ever hear a companies say
- 32:48Speaker 5: that they have something that is unhackable, that is sort
- 32:51Speaker 5: of just a dare to a hacker to try to
- 32:53Speaker 5: get it.
- 32:54Speaker 2: So and I understand that instead of technical fixes, some
- 32:57Speaker 2: of the courts are just are going to ask let
- 33:00Speaker 2: these sensitive documents be submitted by paper like the old days.
- 33:05Speaker 5: Right, Yeah, that's something that's been in place almost since
- 33:08Speaker 5: twenty twenty one now for some courts. They've been asking
- 33:12Speaker 5: attorneys saying, hey, if you have a key style that
- 33:16Speaker 5: really has been designated as highly sensitive it really cannot
- 33:20Speaker 5: be made public, just come by the court and hand
- 33:23Speaker 5: it over to us on a piece of paper, and
- 33:25Speaker 5: that way we can mitigate any possibility of someone else
- 33:29Speaker 5: being able to access this. And you know, our understanding
- 33:33Speaker 5: is this could be temporary if it's found that vulnerabilities
- 33:39Speaker 5: can't be fixed within the system. Or that it's going
- 33:43Speaker 5: to take a while to get at the root cause here,
- 33:45Speaker 5: you know, there's always a possibility that it could happen
- 33:48Speaker 5: even longer. And my understanding is that for some courts
- 33:51Speaker 5: it has been happening since twenty twenty that they've been asking,
- 33:54Speaker 5: you know, federal prosecutors or others dealing with these filed
- 33:59Speaker 5: documents to go hand them over in person.
- 34:02Speaker 2: Thanks so much for joining me, Jacqueline. That's Bloomberg Law
- 34:05Speaker 2: reporter Jacqueline Thompson, and that's it for this edition of
- 34:09Speaker 2: the Bloomberg Law Show. Remember you can always get the
- 34:12Speaker 2: latest legal news on our Bloomberg Law Podcast. You can
- 34:15Speaker 2: find them on Apple Podcasts, Spotify, and at www dot
- 34:19Speaker 2: Bloomberg dot com, slash podcast, Slash Law, and remember to
- 34:23Speaker 2: tune into The Bloomberg Law Show every weeknight at ten
- 34:26Speaker 2: pm Wall Street Time. I'm June Grosso, and you're listening
- 34:30Speaker 2: to Bloomberg