Breaking: Last Two Cases of the Term

June 30, 2014

In Harris v. Quinn, No. 11-0681, the U.S. Supreme Court has distinguished between full-fledged public employees and home health care workers with respect to any obligation to pay union dues. More tonight/tomorrow, but the decision was 5-4, and does not appear to be the death knell for public unions that you may be reading about elsewhere. No good news for unions anymore, but the decision looks like it could have been much worse.

And Burwell v. Hobby Lobby, No. 13-354? Bad, bad news! Another 5-4 outcome, and the Court has seemingly made a hash of corporate law.

More by tomorrow morning!

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Court Tomorrow … and a Primer on Business Entities

June 29, 2014

Two cases await decisions at the Supreme Court for this term, Burwell v. Hobby Lobby and Harris v. Quinn. Hobby Lobby should address whether a for-profit corporation can have religious beliefs which it can express in the context of an Affordable Care Act provision which requires that health insurance policies include contraception benefits, where the corporation need not purchase insurance for its employees. Think I loaded the deck? Really, I didn’t, for this is the fact-pattern associated with Hobby Lobby and its companion cases.

Harris involves an Illinois statute that affects whether home health care workers must join a union, where the state pays those people through Medicaid. Hard to imagine the Court not finding the law unconstitutional, given

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Less Pissed Off … But Still!

June 29, 2014

Less pissed off I am! I understand—and will try to explain—the majority decision in McMullen v. Coakley; still, the decision troubles me.

The First Amendment provides, expressly, that “Congress shall make no law … abridging the freedom of speech … .” (Not important, here, is the means by which the First Amendment applies to a law adopted by the Commonwealth of Massachusetts.) Political speech gets special protections, for the First Amendment was designed to protect it.

Time, place and manner restrictions are permissible. Justice Oliver Wendell Holmes, in Schenck v. United States, stated what seems obvious:  “The most stringent protection of free speech would not protect a man in falsely shouting fire in a theatre and causing

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Pissed Off, and … Professionalism!

June 26, 2014

Prefatory comments:

Below, you will read the Friday post. But I’m pissed off, really, really, and almost postponed ”Heart of the Matter” to focus on McMullen v. Coakley, No. 12-1168. McMullen is the Supreme Court case that deals with 35-foot buffers from facilities which provide lawful abortions. The Court, in a unanimous decision, relied on pretty traditional First Amendment analysis to reach the conclusion that a state cannot limit the rights of strangers to get in the faces of women seeking a lawful procedure, so that the strangers can share literature and provide information about alternatives to abortion.

Only the attorney in me—the part that says “calm down, read the opinion, know what you’re talking about”—has kept me from

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Court

June 24, 2014

The Supreme Court issued three opinions yesterday. Here’s SCOTUSblog’s Tuesday Round-Up, with a brief summary of each case, along with links to commentary.

The big news related to Utility Air Regulatory Group v. EPA, No. 12-1146. The case involves the Clean Air Act and the EPA’s authority to regulate stationary sources of greenhouse gases. If I understand the decision correctly—a somewhat dubious proposition, and the major theme to this post—the EPA designed a regulatory scheme that amounted to a “less than allowed” amount of regulation, as adherence to the authority it was given would have created an unadministrable program. “No, no,” said Justice Antonin Scalia, the law neither permits nor compels such an outcome.

The day job calls,

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Recess (Appointments)

June 20, 2014

Article II, Section 2 states, in part:  “The President shall have the power to fill up all vacancies that may happen during the recess of the Senate, by granting commissions which shall expire at the end of their next session.” The power to make recess appointments has been relatively non-controversial for more than two centuries. Until now!

The recess appointment provision was included in the Constitution to allow the government to function during times when the Senate was not in session. Over the past two-plus centuries the process has evolved. Appointments are made when the Senate is out of session for the year, but also during “intra-session” periods, when the Senate leaves for a week or two. Further, the

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Machines v. Lawyers, Etc.

June 18, 2014

Winton Woods was my small section professor at the University of Arizona College of Law in 1978-9. Woody was a great teacher, and a delightful man (and he’s still delightful, after all of these years)! He also came early to tech stuff, leading the Courtroom of the Future effort at the law school in Tucson, and provided sound advice to an attorney—me—who started a solo practice more than 14 years ago.

Woody posted Machines v. Lawyers, by John McGinnis, written for City Journal. Depressing it was, mostly. Read it for yourself, and even if you’re not an attorney, the conclusions translate to most any other fields. (The article brought to mind Changing Times, the name for

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Court Stuff

June 17, 2014

It’s Court-time, that busy time in June when the U.S. Supreme Court gets ready for its summer vacation. (Is there any hope for getting away from the ag-based, nine-month school year, when one of our three governmental branches has the summer off?)

Here are a few cases recent cases that caught my attention.

In Clark v. Rameker, No. 13-299, the Court issued a unanimous opinion holding that an inherited IRA does not qualify as an exempt asset. Justice Sotomayor, in her opinion, looks at the characteristics of an inherited IRS—no money can be added, money must be withdrawn, and all money can be withdrawn at any time without penalties—and reached the conclusion that the assets belongs to creditors in

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Business Court in Arizona? Maybe!

June 15, 2014

On May 8, 2014, the Arizona Supreme Court issued an order establishing the Business Court Advisory Committee. The order direct the Advisory Committee to investigate establishing a division of the Superior Court—our trial court—to handle business disputes. The Arizona Republic ran Arizona Panel to Study Idea for Business Courts a few days later, and it provides a decent overview.

One of the great challenges for a business litigator involves deciding whether to arbitrate and, if not, whether a jury should be involved. In many instances these choices are made when a contract or other business agreement gets signed.

Arbitration is often a default choice, too often because it carries positive connotations and courts don’t. In fact, in many cases arbitration

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Rule against Perpetuities! (Really!!!)

June 12, 2014

I attended a dinner at a bank—as it happens, my bank—on Tuesday night. The topic?  Current Trends in Trust and Estate Planning. ‘Twas a fine presentation, with decent wine, a good meal, and a speaker worth listening to. And an hour of continuing education credit.

The speaker, a banker, focused his talk on dynasty trusts. There is no particular definition for a dynasty trust:  in simple terms it’s a trust that lasts a long time.

Now, I was in law school between 1978 and 1981, many years ago. I learned about the Rule against Perpetuities. This rule, as I learned it, held that no property in a trust could vest in a beneficiary after all lives in being

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