Ninth Circuit Narrowly Vindicates First Amendment in Bellwether Compelled Speech Case

Featured Expert Contributor, First Amendment

By Megan Brown, a Partner with Wiley Rein LLP, with Jeremy Broggi, an Associate with the firm.*  Wiley Rein LLP represents the United States Chamber of Commerce as amicus in American Beverage Ass’n v. San Francisco.

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The tide may be turning on commercial free speech in the context of forced disclosures and warnings, as parties wait for further clarification from the Supreme Court on the level of protection due private speech.  The Ninth Circuit’s recent en banc decision in American Beverage Association v. City and County of San Francisco, No. 16-16072 (9th Cir. Jan. 31, 2019), is a limited step in the right direction, though as concurring opinions make clear, much more needs to be done to fix the doctrinal confusion about compelled speech and properly limit the power of government. Continue reading “Ninth Circuit Narrowly Vindicates First Amendment in Bellwether Compelled Speech Case”

With Emulex Corp., Supreme Court Could Raise Bar for “Merger Tax” Securities Suits

bainbridgeFeatured Expert Contributor, Corporate Governance/Securities Law

Stephen M. Bainbridge, William D. Warren Distinguished Professor of Law, UCLA School of Law.

In the wake of the Delaware Chancery Court’s pathbreaking decision in the Trulia case,1 which sharply increased the scrutiny given settlements of cases challenging mergers and other takeovers, there has been a dramatic shift of M&A litigation to federal courts.2 How receptive federal courts will be to this flood of new claims will be determined in part by Emulex Corporation, et al., v. Varjabedian, which is currently pending before the U.S. Supreme Court. Emulex turns on whether scienter is an element of the private-party cause of action under § 14(e) of the Securities Exchange Act of 1934. Section 14(e) prohibits fraud in connection with tender offers and thus will be a key provision in assessing the survivability of these new M&A lawsuits.3 Continue reading “With Emulex Corp., Supreme Court Could Raise Bar for “Merger Tax” Securities Suits”

The Judiciary Can Corral the Administrative State, but Only the People Themselves Can Tame It

madison
James Madison

The executive power of this nation would, James Madison wrote in Federalist 48, be “restrained” within a “narrow compass.” The judicial power could, in his view, be “described by landmarks still less uncertain.” It was against “the enterprising ambition” of the legislature, he believed, that “the people ought to indulge all their jealousy and exhaust all their precautions.” Unless the other departments and the people remained vigilant, Madison warned, the legislature would draw “all power into its impetuous vortex.”

This outlook was informed by the excesses of the ancient Athenian mob, which, as Madison put it in Federalist 63, decreed “to the same citizens the hemlock on one day and statues on the next.” But although he still talks, on occasion, like a fanatic, the modern congressman pushes much of his power away with both hands. That power is gladly accepted by the modern bureaucrat, an upstart bent on steering the ship of state off the course set by the Founders. Continue reading “The Judiciary Can Corral the Administrative State, but Only the People Themselves Can Tame It”

Knick v. Scott Township: Whack-a-Mole at the Supreme Court

whackToday’s Supreme Court argument in Knick v. Scott Township made clear that state and local governments are playing Whack-a-Mole with private property rights. Whack-a-Mole is the arcade game in which every time a mole is whacked down, a new one pops up. At issue in Knick is whether to overturn the Court’s 1985 Williamson County decision, which held that Fifth Amendment Takings Clause claimants are generally relegated to state court.

When property rights advocates subsequently pointed out that Williamson County effectively barred property owners from ever asserting their Fifth Amendment rights, state and local governments persuaded the Court to re-interpret the nature of a Takings Clause violation (in its 2005 San Remo Hotel decision) to eliminate the no-right-to-assert problem. But when Justice Gorsuch suggested at today’s oral argument that this revised interpretation of the Takings Clause undercuts Williamson County’s rationale, the attorney for Scott Township denied the validity of the revised interpretation—in effect arguing that San Remo ought to be overruled. Continue reading Knick v. Scott Township: Whack-a-Mole at the Supreme Court”

Update: Solicitor General Encourages SCOTUS to Review Vast Expansion of Clean Water Act

supreme courtA November 2018 commentary by our Featured Expert Contributor on environmental-law matters, Samuel Boxerman (with Ben Tannen), discussed two related petitions for certiorari pending at the U.S. Supreme Court that presented a novel Clean Water Act question: whether a discharge through groundwater is an addition of a pollutant to waters of the United States from a point source.  Decisions from the U.S. Courts of Appeals for the Fourth and Ninth reasoned that the groundwater qualifies as a point source. Other appeals courts, including the Sixth Circuit, disagree.

In December, the Court invited the Solicitor General of the United States to present the government’s view on whether to grant the petitions. Yesterday, the Solicitor General filed its brief with the Court, urging it to resolve the circuit split.

The brief doesn’t express the government’s legal position on the groundwater-discharge issue, but it does explain why the Ninth Circuit decision, Hawai’i Wildlife Fund v. City of Maui, offers a better vehicle for circuit-split resolution. The Solicitor General also explained that the Environmental Protection Agency’s ongoing review of groundwater’s status as a point source under the CWA (see WLF’s comments here) is not a reason for the justices to deny certiorari.

The question before the Court is a critical one for free enterprise. As Mr. Boxerman and Mr. Tannen wrote in a February 2018 commentary on the Maui decision:

Left as is, the Maui decision could present significant issues across industry.  By holding that the Clean Water Act regulates discharges through groundwater without providing a limiting principle as to when the connection to U.S. waters is too remote, the Ninth Circuit has exponentially increased a source’s risk of liability under the Act.

 

Games People Play: Supreme Court Can Put a Stop to an Obvious CAFA Workaround

Featured Expert Contributor, Litigation Strategies

Joe G. Hollingsworth, a Partner at Hollingsworth LLP, with Katharine R. Latimer, a Partner at the firm and a member of WLF’s Legal Policy Advisory Board.

A printer-friendly PDF version of this commentary is available here.

Earlier this fall, the Supreme Court took up the Class Action Fairness Act of 2005 (CAFA) when it granted certiorari in Home Depot U.S.A., Inc. v. Jackson, 880 F.3d 165 (4th Cir. 2018).  We’re hoping for a slap-down because the Home Depot decision and its ilk improperly deny an entire sub-category of defendants protection from abusive state court class actions.

CAFA is an important statutory safeguard that Congress enacted to rectify serious class action abuses in state courts.  See CAFA, S. Rep. No. 109-14, at 13 (2005).  Congress expressly found that ungainly and abusive interstate class actions “(A) harmed class members with legitimate claims and defendants that have acted responsibly; (B) adversely affected interstate commerce; and (C) undermined public respect for our judicial system.”  CAFA § 2(a)(2) (codified at 28 U.S.C. § 1711 notes). Continue reading “Games People Play: Supreme Court Can Put a Stop to an Obvious CAFA Workaround”

Kimberly-Clark Seeks Supreme Court Review in “Flushable” Wipes Case

roibal_lucia_webGuest Commentary

By Lucía Roibal, an Associate with Morrison & Foerster LLP in the firm’s San Francisco, CA office. This commentary is reposted with permission, originally appearing on November 30, 2018 in the firm’s Class Dismissed  blog.

On September 6, 2018, Kimberly-Clark and affiliates filed a petition for writ of certiorari in Kimberly-Clark, et al. v. Davidson, No. 18-304, following a decision in the Ninth Circuit denying Kimberly-Clark’s motion to dismiss.  As noted in previous posts (here and here), the Ninth Circuit had resolved a split among district courts in the circuit and held that a previously deceived consumer may have standing to seek an injunction against false advertising or labeling if he or she sufficiently alleges intent to repurchase the product in the future.  In Kimberly-Clark’s petition, the companies ask the Supreme Court to resolve the issue of whether a consumer, who after using a product and determining that a representation concerning that product is allegedly misleading, can plausibly allege a “real and immediate threat” that she will be deceived by the same representation in the future so as to establish standing to seek an injunction. Continue reading “Kimberly-Clark Seeks Supreme Court Review in “Flushable” Wipes Case”