Minimum Competence

Legal News for Tues 5/26 - Bipartisan Support for Transportation Bill, DOJ Pushes Ballroom Project for "Security" Purposes, and Taxing Cloud Dependent Software

This Day in Legal History: Andrew Johnson Impeachment Trial EndsOn May 26, 1868, the United States Senate ended the impeachment trial of President Andrew Johnson, bringing one of the most dramatic constitutional confrontations in American history to a close. Johnson had been impeached by the House of Representatives earlier that year after clashing repeatedly with Congress over Reconstruction. At the center of the dispute was the future of the defeated South and the legal status of formerly enslaved people after the Civil War. Johnson favored a more lenient approach toward former Confederate states, while the Republican-controlled Congress sought stronger protections for freedmen and stricter conditions for reentry. The immediate trigger for impeachment was Johnson’s attempt to remove Secretary of War Edwin Stanton, which Congress argued violated the Tenure of Office Act. The Senate had already voted on one article of impeachment on May 16, and Johnson survived by a single vote. Ten days later, on May 26, the Senate voted on two more articles, with the result again falling one vote short of the two-thirds majority required for conviction. The final vote of 35 to 19 meant Johnson would remain in office.After that result, the Senate adjourned as a court of impeachment and the trial came to an end. The acquittal did not make Johnson politically strong, but it preserved the principle that removing a president required more than intense political disagreement. The trial also tested the separation of powers during a period when Congress and the presidency were fighting over who would control Reconstruction. In later years, the Tenure of Office Act was repealed, and its constitutionality remained deeply suspect. Johnson’s impeachment became a lasting example of how legal rules, political conflict, and constitutional design can collide in moments of national crisis.The House Transportation and Infrastructure Committee has advanced a major five-year transportation funding bill that would send about $580 billion toward roads, bridges, transit, rail projects, and highway safety programs. The measure, called the BUILD America 250 Act, passed the committee by a 62-2 vote after a lengthy markup and now heads to the full House. The bill is meant to replace the current surface transportation law, which was part of the 2021 infrastructure package and is set to expire at the end of September. Supporters from both parties framed the proposal as a way to keep infrastructure funding moving while giving states flexibility and speeding up project delivery.One of the most closely watched additions is a rail safety package inspired by the 2023 Norfolk Southern derailment in East Palestine, Ohio. That section would require at least two crew members on many trains, add inspection requirements, regulate defect detectors, and place limits on certain hazardous-material trains. Rail labor groups and the White House have backed stronger rules, while the major railroads argue the proposal is driven more by politics and labor demands than by the causes of the East Palestine crash.The bill would also create a first federal regulatory structure for autonomous commercial vehicles, including automated trucks, buses, and other larger vehicles. Industry supporters say that framework would help the United States compete globally in autonomous transportation, while transit labor leaders say the bill includes important human-oversight protections to keep workers involved and improve safety. Another contested provision would impose a new annual federal registration fee on electric vehicle owners, starting at $130 and later rising to $150, to help support the Highway Trust Fund.Backers say EV drivers should contribute to road funding because they do not pay federal gas taxes. Electric vehicle advocates, however, call the fee punitive and argue it would discourage EV adoption without meaningfully solving the trust fund’s long-term funding gap.What’s In The House Surface Transportation Funding Bill? - Law360The Justice Department has asked a federal court to lift an injunction blocking work on President Donald Trump’s ballroom project, arguing that a recent shooting outside the White House shows why stronger security is needed. In a short filing Sunday, DOJ said the incident highlights the need for high-level security upgrades at the White House, including the ballroom, and again sought dismissal of the lawsuit challenging the project. The case was brought by the National Trust for Historic Preservation, which has opposed the project and previously refused to withdraw its suit after an alleged foiled attack connected to the White House Correspondents’ Association dinner in April. DOJ had already cited that earlier incident in asking the court to end the case. According to the Secret Service, the person who fired at a White House checkpoint on Saturday was shot by officers and later died at a hospital. The filing ties the shooting to the government’s broader argument that the project is important for national security.US Justice Department seeks to lift injunction on ballroom project after shooting | ReutersMy column for Bloomberg this week argues that Tennessee’s recent decision in SAP America, Inc. v. Gerregano shows how poorly traditional state tax categories fit modern software. The court treated SAP’s software licenses as nontaxable intangible property, while allowing Tennessee to tax cloud hosting and cloud-based services delivered electronically into the state. That split made sense because SAP’s products were cleanly separated into licenses, hosting, and cloud services. But the column argues that most modern software is not so tidy. Even products that seem local often rely on remote tools for logins, updates, syncing, storage, analytics, customer support, or payment processing. As AI becomes built into ordinary software, the line between software and cloud-based service will become even harder to draw.The column focuses on the “true-object” test, which asks what the customer is really buying when a transaction has multiple elements. That test works when the taxable and nontaxable pieces are visible and separately priced, but it becomes much harder to apply when remote processing is hidden inside a product the customer experiences simply as software. The piece argues that states should adopt a software-specific safe harbor rather than treating every remote feature as taxable cloud access. Under that approach, software would be presumed to remain software when remote functions are limited to things like authentication, updates, syncing, security, or modest product enhancements. A state could rebut that presumption if the customer is really buying hosted processing, managed infrastructure, AI model access, inference, or other platform-level functionality. The point is not to abandon the true-object test, but to give it a clearer threshold for hybrid software. Without that guardrail, AI could give states an easy but flawed path to reclassify almost any software product with a remote model feature as taxable cloud access. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Fri 5/22 - Bad Spaniels at 9th Circuit, Meta Mental School Health Settlement, OpenAI Law Firm Associations

2w ago00:06:45Tap to summarize

This Day in Legal History: Truman DoctrineOn May 22, 1947, President Harry S. Truman signed legislation authorizing American aid to Greece and Turkey, giving legal force to what became known as the Truman Doctrine. The law provided economic and military assistance to both countries at a moment when U.S. leaders feared that instability in the eastern Mediterranean could expand Soviet influence. Greece was in the middle of a civil war, while Turkey faced pressure over control of strategic territory and access between the Black Sea and the Mediterranean. Britain had previously played the leading role in supporting Greece and Turkey, but after World War II it told the United States it could no longer bear that burden.Truman responded by asking Congress to approve aid, arguing that the United States had to support “free peoples” resisting outside pressure or armed minority movements. By signing the bill, Truman transformed that broad statement of foreign policy into statutory authority backed by federal money. Legally, the act mattered because it showed how Cold War policy would often be made: the president would identify a global threat, and Congress would authorize funds and tools to respond. It also helped normalize large peacetime commitments abroad, a sharp change from earlier American reluctance to enter long-term foreign entanglements. The statute became an early foundation for the national security state that grew through later aid programs, alliances, intelligence activities, and military commitments.The Truman Doctrine also raised enduring questions about the balance of power between Congress and the president in foreign affairs. Congress approved the aid, but the broader doctrine gave presidents a flexible language for intervention that could be invoked well beyond Greece and Turkey. In that sense, May 22, 1947, was not just a date in diplomatic history; it was a legal turning point in how the United States authorized, funded, and justified its Cold War role in the world.A Ninth Circuit panel appeared uncertain about whether Jack Daniel’s proved enough to win its trademark dilution-by-tarnishment claim against VIP Products over the “Bad Spaniels” dog toy. The judges focused especially on whether Jack Daniel’s had shown that anything beyond the words “Jack Daniel’s” was famous enough to qualify for dilution protection. Judge Andrew Hurwitz pressed Jack Daniel’s counsel on whether the company could rely on the fame of its name to protect broader elements of its label and bottle design. Jack Daniel’s argued that the court should consider the full context of the toy, including its bottle-like appearance and bathroom-humor references. VIP, by contrast, argued that the analysis should be limited to the famous mark itself and the allegedly diluting mark, not the entire product presentation.The case began after VIP made a dog toy parodying a Jack Daniel’s bottle with poop-themed jokes, prompting years of litigation over trademark infringement, dilution, parody, and free speech. The U.S. Supreme Court previously ruled that VIP could not use the Rogers test because the toy used another company’s trademark-like features to identify VIP’s own product. On remand, the district court rejected Jack Daniel’s infringement claim but again found dilution by tarnishment, which VIP appealed. VIP also raised a First Amendment challenge to the federal tarnishment law, though both VIP and the federal government suggested the Ninth Circuit could decide the case without reaching that constitutional issue. The Justice Department intervened to defend the law’s constitutionality while also acknowledging that waiver or insufficient proof could let the panel avoid the First Amendment question.9th Circ. Questions Jack Daniel’s’ TM Win Over ‘Bad Spaniels’ - Law360Meta has settled a closely watched lawsuit brought by Breathitt County School District in Kentucky over costs allegedly tied to youth mental health harms from social media. The case was important because it was the first school-district case against social media companies scheduled for trial on these claims. Breathitt had accused Meta, YouTube, Snap, and TikTok of designing platforms that kept young users engaged in harmful ways and contributed to anxiety, depression, self-harm, and other student mental health problems. The district sought more than $60 million, including money for a 15-year mental health program and an order requiring changes to allegedly addictive platform features. Meta’s settlement follows earlier settlements by YouTube, Snap, and TikTok, meaning Breathitt’s case is now fully resolved.The case was a bellwether, meaning it was chosen as a test case to help courts and parties evaluate similar lawsuits. About 1,200 school districts are pursuing related claims, and thousands of other social-media addiction lawsuits are pending in California state and federal courts. Meta said it resolved the case amicably and pointed to teen-safety tools such as Teen Accounts and parental controls. Lawyers for the school district said they remain focused on claims brought by the other districts. The settlement avoids a June 15 trial that could have shaped settlement talks and strategy across the broader litigation. Other major school systems, including Los Angeles and New York City, have filed similar lawsuits, while DeKalb County, Georgia, has claimed billions in future mental health costs.Meta settles first US case over school costs tied to youth mental health, court filing shows | ReutersOpenAI has expanded its group of outside law firms as it faces major litigation, complex business deals, and a possible future IPO. Reuters reports that the company, recently valued at $852 billion, now works with more than a dozen large U.S. law firms. OpenAI, CEO Sam Altman, and lawyers from Wachtell Lipton and Morrison & Foerster recently defeated Elon Musk’s lawsuit claiming that OpenAI had departed from its original nonprofit mission. That ruling removed one potential obstacle to a possible IPO, which sources have said could happen as soon as September. Wachtell has also handled major OpenAI transactions since ChatGPT launched, including large fundraising deals involving Microsoft, Nvidia, and other investors.Wachtell is a central player for OpenAI in both deal work and litigation. The firm is defending OpenAI in a lawsuit from Musk’s xAI alleging that OpenAI and Apple monopolized markets involving smartphones and generative AI chatbots. In a separate xAI trade secrets case, OpenAI hired Munger, Tolles & Olson. Latham & Watkins has worked on OpenAI deals, including a $4 billion credit line, and is also helping defend the company in copyright lawsuits brought by authors, comedians, and news organizations. OpenAI is arguing in those copyright cases that using material to train AI systems is protected by fair use. Wilson Sonsini is defending OpenAI in a case claiming ChatGPT engaged in unauthorized practice of law, an allegation OpenAI rejects by arguing that ChatGPT is not a lawyer and does not practice law.OpenAI grows stable of law firms for high-stakes lawsuits, deals | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Thurs 5/21 - MN Sued Over Prediction Market Ban, 1/6 Slush Fund Lawsuit, Peanuts Copyright Fight Over Snoopy Music

2w ago00:06:16Tap to summarize

This Day in Legal History: First Speed Limit LawOn May 21, 1901, Connecticut became the first U.S. state to pass a law regulating the speed of motor vehicles. The law set a speed limit of 12 miles per hour in cities and 15 miles per hour on country roads. That may sound almost comically slow now, but at the beginning of the twentieth century, the automobile was still a new and disruptive technology. Roads were shared by pedestrians, horses, carriages, bicycles, and early automobiles, often without clear rules about who had priority or how fast anyone could travel. Connecticut’s law reflected a growing legal problem: the common law of negligence could punish dangerous driving after an accident, but legislatures increasingly saw the need to prevent danger before it happened. Speed limits were one of the earliest ways states tried to turn automobile use from a private novelty into a regulated public activity. The law also showed how technological change often forces legal systems to create new categories of public safety regulation.Before automobiles, road law had developed around animals, wagons, and local travel; cars introduced greater speed, heavier machinery, and new risks of injury. By setting numerical limits, Connecticut moved toward a more modern model of traffic law, where drivers could know in advance what conduct was illegal. This kind of rule also made enforcement easier for police and courts because the question was no longer only whether someone drove “recklessly,” but whether they exceeded a stated limit. Other states and municipalities soon followed with their own automobile rules, licensing systems, registration requirements, and broader traffic codes. The Connecticut statute is a reminder that everyday legal rules often begin as responses to unfamiliar technologies. What started as a modest speed limit helped lay the groundwork for the complex system of motor-vehicle regulation that now shapes daily life on American roads.The U.S. Commodity Futures Trading Commission has sued Minnesota to stop the state from enforcing a new law banning prediction markets. Minnesota became the first state to enact a total ban on platforms such as Kalshi and Polymarket, which let users trade contracts based on the outcome of future events, including sports and elections. Governor Tim Walz signed the law on May 18, 2026, and it is scheduled to take effect on August 1. The CFTC argues that Minnesota’s law conflicts with federal authority because prediction-market contracts are derivatives regulated by the agency under federal law. CFTC Chairman Michael Selig said the law would effectively turn lawful market operators and users into criminals.Minnesota Attorney General Keith Ellison said his office is reviewing the lawsuit and raised concerns that prediction markets can be addictive and harmful, especially to young and low-income people. Kalshi and Polymarket both welcomed the federal challenge, arguing that state bans undermine the federal regulatory system and may push users toward offshore platforms. The dispute is part of a broader fight between state gambling regulators and prediction-market companies over whether these products are financial contracts or illegal wagering. The CFTC has also sued other states to block enforcement actions against prediction-market operators. It recently obtained an order stopping Arizona from pursuing a criminal case against Kalshi, while Nevada remains the only state with a court-enforced ban against Kalshi. Massachusetts is also considering whether to uphold an injunction that would block Kalshi from offering sports-event contracts there.US regulator sues to block Minnesota’s first-in-nation ban on prediction markets | ReutersTwo police officers who defended the U.S. Capitol during the January 6, 2021 attack have sued to stop a nearly $1.8 billion fund created under President Donald Trump’s administration. Former Capitol Police officer Harry Dunn and Metropolitan Police Department officer Daniel Hodges filed the lawsuit in federal court in Washington, D.C. They argue that the fund is an improper use of taxpayer money and could be used to compensate January 6 defendants or groups tied to political violence. The complaint describes the fund as a “slush fund” and seeks a court order blocking any payments from it. The fund was created after Trump settled a lawsuit against the Internal Revenue Service over the leak of his tax returns during his first term.As part of that settlement, the Justice Department established a fund to compensate people who claim they were victims of political “weaponization.” Acting Attorney General Todd Blanche told lawmakers that the fund is not limited to January 6 defendants and could apply to people from any political party. He also said the eligibility standard is broad and tied to claims of having experienced political weaponization. Dunn has publicly described the physical and racist abuse he faced during the Capitol attack, as well as his later struggles with PTSD. Hodges was seriously assaulted during the riot in an incident captured on widely circulated video and has also testified before Congress about his experience.Police officers who guarded Capitol sue to block Trump’s $1.8 billion ‘slush fund’ | ReutersLee Mendelson Film Productions, the company behind A Charlie Brown Christmas, has sued GameMill Entertainment in Manhattan federal court over music used in the video game Snoopy & The Great Mystery Club. The company claims GameMill copied or closely imitated Vince Guaraldi’s well-known Peanuts music without getting the proper license. According to the lawsuit, GameMill had permission to use Peanuts characters in the game but not Guaraldi’s compositions.The complaint focuses on music that allegedly resembles “Linus and Lucy” and “Skating,” two songs strongly associated with the 1965 holiday special. Mendelson argues that GameMill wanted the emotional and nostalgic effect of the original Peanuts soundtrack while avoiding the cost of licensing it. The lawsuit says the game’s background music is substantially similar to Guaraldi’s work and could make players think they were hearing the actual songs or recordings. A Charlie Brown Christmas remains a major part of American holiday culture, and Guaraldi’s soundtrack has sold millions of copies. GameMill’s game, released in 2025, follows Snoopy as he solves mysteries. The production company is accusing GameMill of copyright infringement and is seeking monetary damages. Neither side had immediately commented on the complaint when the article was published.‘A Charlie Brown Christmas’ maker sues over music in ‘Snoopy’ video game | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Wed 5/20 - Trump IRS Slush Fund, Wells Fargo Union Retreat, Anthropic Fights Supply Chain Risk Label, Morgan and Morgan in Harvard Morgue Case

2w ago00:08:47Tap to summarize

This Day in Legal History: Homestead ActOn May 20, 1862, President Abraham Lincoln signed the Homestead Act into law, creating one of the most consequential land distribution systems in American history. The statute allowed eligible settlers to claim 160 acres of federal land, so long as they lived on it, improved it, and cultivated it for a required period of time. At a basic level, the law treated land ownership as something that could be earned through residence and labor rather than purchased outright. That idea made the act especially powerful for many farmers, immigrants, formerly enslaved people, and poor white settlers who otherwise had limited access to property. But the promise of “free land” was never as simple as it sounded.Much of the land made available under the Homestead Act had already been occupied, used, or governed by Native nations, and federal land policy often operated alongside removal, broken treaties, and military force. The act therefore expanded private property rights for some while deepening dispossession for others. It also reflected the federal government’s growing role in shaping settlement, agriculture, and economic development across the West. By requiring claimants to improve and farm the land, Congress used property law to encourage a particular vision of citizenship: independent, landowning, agricultural, and tied to national expansion. Over time, the law transferred vast amounts of public land into private hands. By the 1930s, roughly 270 million acres had been distributed under the Homestead Act, about 10% of the land area of the United States. Its legal legacy can be seen in debates over public lands, Indigenous sovereignty, property ownership, and the federal government’s power to define who gets access to opportunity.Acting Attorney General Todd Blanche told senators that a nearly $1.8 billion “Anti-Weaponization Fund” tied to President Trump’s IRS settlement is “not a slush fund,” but there are several reasons to treat that assurance cautiously. The DOJ says Trump, his sons, and the Trump Organization will accept only a formal apology and no direct damages, while the fund will be available to other people who claim they were victims of government “weaponization” or “lawfare.” The problem is that DOJ has not clearly defined who qualifies, what proof is required, or what would disqualify someone from receiving money. When Sen. Chris Van Hollen asked whether people who assaulted police officers on January 6 could apply, Blanche did not rule it out and instead said anyone could apply if they believed they were a victim. Blanche also said he would not personally write the eligibility rules, though senators noted he will appoint most of the commissioners who will oversee the fund. DOJ’s public announcement says the fund was created as part of Trump’s settlement with the IRS after Trump agreed to drop his lawsuit over the leak of his tax documents.The comparison to the Obama-era Keepseagle settlement is shaky. Keepseagle involved a discrimination case brought by Native American farmers and was approved by a federal judge, while this fund appears to be created through a settlement involving the sitting president and the IRS, without the same kind of judicial approval described here. Democrats also objected that Obama was not personally a plaintiff in Keepseagle, while Trump is directly connected to this settlement. The most legally significant part may be the addendum saying the IRS is permanently barred from examining certain Trump-related tax matters, including returns filed before the settlement’s effective date. That makes the deal look larger than a privacy settlement over leaked tax documents, because it may also limit future tax enforcement. Even Senate Majority Leader John Thune said there are “a lot of questions” the administration will have to answer, which is a notable sign that concern is not limited to Democrats.$1.8B IRS Deal Fund ‘Not Slush Fund,’ Blanche Tells Senators - Law360Workers at another Wells Fargo branch have moved to drop their union, showing that a once-fast-moving labor campaign inside the bank has lost momentum. The Communication Workers of America gave up representing nine employees at a Wilmington, Delaware, branch after one worker sought a vote to decertify the union. That branch had voted unanimously to unionize in early 2024 and was part of a broader organizing push that brought hundreds of Wells Fargo workers at 28 locations into the union. The campaign was notable because union representation is extremely rare in U.S. banking, where less than 1% of workers are unionized. Organizers had focused on complaints about understaffing, flat wages, sales pressure, and the lingering effects of Wells Fargo’s fake-accounts scandal.The recent Delaware development is the fifth Wells Fargo branch where workers have ousted the union, with other decertifications in Florida, New Jersey, and North Carolina, and another petition pending in Wyoming. Wells Fargo said it supports employees’ right to choose whether they want union representation. The anti-union National Right to Work Legal Defense Foundation, which has helped workers challenge union representation, framed the decertifications as evidence that employees are rejecting CWA involvement. The CWA, for its part, has blamed Wells Fargo for slowing contract talks and has accused the bank of retaliating against union supporters and cutting benefits at unionized branches. Wells Fargo denies wrongdoing and says delays are tied partly to the difficulty of negotiating some of the first union contracts in retail banking. The broader context is also unfavorable for unions, with fewer union elections held in 2025 than in 2024 and labor advocates arguing that changes at the National Labor Relations Board under President Trump have made organizing harder.Wells Fargo workers nix another union as tide turns in novel labor campaign | ReutersAnthropic is challenging the Defense Department’s decision to label it a supply chain risk and bar it from government contracting, arguing that the move was an extreme response to a contract dispute over how its Claude AI models could be used. The dispute began during negotiations over the department’s GenAI.mil platform, where the government wanted contract terms allowing all lawful uses of Claude, while Anthropic sought exceptions for mass domestic surveillance and fully autonomous weapons systems. Anthropic argued that the department’s main theory was wrong because once Claude was deployed on the department’s classified network, it would be air-gapped and Anthropic could not secretly interfere with it during a military operation. The company also said the government had less drastic options, such as declining to buy future Claude models, instead of using a blacklisting authority that had apparently never been used this way before. One D.C. Circuit judge seemed strongly skeptical of the government’s action, calling the supply-chain-risk designation a major overreach. Other judges were less certain, asking whether the opaque and unpredictable nature of AI models could justify the government’s concern that hidden limits might affect military uses.The government argued that Anthropic’s own proposed red lines created a real operational risk, especially if the company expected officials to seek real-time exceptions during military activity. But the judges also pressed the government on why it needed such broad freedom to use AI, including for fully autonomous weapons, given known concerns about AI reliability. They also questioned why the department went straight to a supply-chain-risk designation instead of simply ending or narrowing the relationship. Anthropic said the government skipped required procedural steps, including a joint recommendation and a 30-day response period, before issuing the designation. The government claimed it had to act quickly because Claude was already being used on several Defense Department platforms. Anthropic countered that this urgency argument was weakened by the department’s decision to phase out Claude over six months rather than immediately remove it.Anthropic Says Defense Dept. Smeared It Over AI Red Lines - Law360A Massachusetts judge refused to let Morgan & Morgan lawyer T. Michael Morgan appear in civil litigation against Harvard Medical School over the theft and sale of body parts from donated cadavers. The judge said Morgan’s earlier sanction in a Wyoming case, where court filings included fake AI-generated case citations, showed a failure to meet basic ethical duties. Morgan had disclosed the prior sanction when asking to appear as an out-of-state lawyer in the Harvard case, but the judge said he did not explain enough about how he had changed his practices to prevent the same problem from happening again. The judge also criticized Morgan for procedural problems with the Massachusetts application, including not having local counsel submit it and paying the wrong fee.Morgan & Morgan said Morgan had accepted responsibility for the earlier mistake and that the firm had added safeguards around AI use. The underlying Harvard litigation involves families who say Harvard mishandled donated bodies after its former morgue manager, Cedric Lodge, stole and sold body parts; Harvard has condemned Lodge’s actions but denies civil liability. Lodge was sentenced to eight years in prison in December. The ruling adds to a growing line of cases where lawyers have been sanctioned or warned for relying on AI tools without verifying the accuracy of legal cit...

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Legal News for Tues 5/19 - Title IX at Supreme Court, Mangione Backpack Evidence Partially Out, MAHA Vaccine BS Losses, and Gas Tax Holidays are Bad Policy

2w ago00:07:17Tap to summarize

This Day in Legal History: 27th AmendmentOn May 19, 1992, the 27th Amendment to the United States Constitution was officially published in the Federal Register, ending one of the longest and oddest ratification stories in American legal history. The amendment provides that any law changing the compensation of members of Congress cannot take effect until after an election for the House of Representatives has taken place. Put more simply, Congress may vote to change its own pay, but it cannot make that change immediate. The rule gives voters a chance to respond before the pay change takes effect.What makes the 27th Amendment unusual is not only what it says, but how long it took to become law. It was originally proposed by James Madison in 1789 as part of the same set of amendments that produced the Bill of Rights. Most of those amendments were ratified quickly, but this one lingered for more than two centuries. Because Congress had not set a ratification deadline, the amendment remained legally available for state approval. In the 1980s, a renewed ratification campaign helped bring it back to public attention. Michigan became the 38th state to ratify it in May 1992, giving it the three-fourths approval required by Article V of the Constitution.The amendment’s publication in the Federal Register on May 19 marked the formal public recognition that it had become part of the Constitution. Its ratification raised a serious legal question about whether an amendment proposed in the 18th century could still be valid in the 20th century. The answer, at least for amendments without a deadline, was yes. The 27th Amendment stands as a reminder that constitutional change can move slowly, sometimes across generations, and still become binding law.The Supreme Court agreed to hear a case about whether Title IX’s protections against sex discrimination in federally funded education programs extend to employees, including college professors and coaches. The case was brought by former Augusta University professor Thomas Crowther and former Georgia Tech women’s basketball coach MaChelle Joseph, both of whom lost their jobs after workplace-conduct investigations. Crowther claimed Augusta University retaliated against him and discriminated against him based on sex after it suspended him and declined to renew his contract. Joseph argued that Georgia Tech fired her in retaliation for her complaints about unequal treatment of women’s athletics and female athletes. Their cases reached the Eleventh Circuit together, where the court ruled that Title IX clearly protects students, but that its application to employees is less certain. That ruling placed the Eleventh Circuit on one side of a broader circuit split.The Fifth, Seventh, and Eleventh Circuits have taken a narrower view of Title IX employment claims, while the First, Second, Third, and Fourth Circuits have allowed employees to bring certain Title IX claims. The solicitor general agreed with the Eleventh Circuit’s narrower reading but urged the Supreme Court to take the case because lower courts are divided. The case gives the justices a chance to decide whether professors, coaches, and other school employees can use Title IX directly to sue for workplace sex discrimination or retaliation.High Court To Examine Title IX Protections For Coaches, Profs - Law360A New York state judge partially granted Luigi Mangione’s request to keep certain evidence out of his upcoming murder trial. Mangione is accused of killing UnitedHealthcare CEO Brian Thompson outside a Manhattan hotel in December 2024 and has pleaded not guilty. Justice Gregory Carro ruled that police unlawfully searched Mangione’s backpack during his arrest in Pennsylvania without a warrant. Because of that, some items found during the first search, including a loaded handgun magazine, a cellphone, and a computer chip, will be suppressed. But the judge allowed other evidence from a later police-station search of the backpack, including a gun, silencer, USB drive, and red notebook.Carro also rejected Mangione’s effort to suppress his initial statements to police, finding that they were not obtained through an illegal interrogation. The ruling gives the defense a partial win, but prosecutors say they still have substantial evidence tying Mangione to the shooting, including DNA, fingerprints, video footage, and other items. Mangione’s state trial is scheduled to begin on September 8 and is expected to last about six weeks. He also faces separate federal charges, though earlier rulings in that case removed the possibility of the death penalty.Judge grants accused CEO killer Mangione’s bid to suppress evidence due to unlawful search | ReutersState lawmakers have rejected dozens of anti-vaccine bills backed by Make America Healthy Again supporters, showing limits to the movement’s influence in state legislatures. The bills sought to roll back or end policies such as school vaccination requirements, but public health groups and medical associations mounted successful opposition campaigns. Groups including American Families for Vaccines and the American Academy of Pediatrics argued that vaccine mandates remain broadly supported and are important for public health. Their strategy focused especially on Republican-controlled states, where advocates used polling and personal appeals to persuade lawmakers that opposing vaccines could be both medically risky and politically unpopular. Anti-vaccine proposals increased this year because MAHA-aligned groups coordinated efforts across multiple states. Still, bills failed in places including Idaho, West Virginia, Tennessee, South Dakota, Florida, and Iowa. The debate is unfolding as Health Secretary Robert F. Kennedy Jr., a longtime vaccine skeptic, has taken steps against mandatory immunization policies, though some changes have been paused in litigation. Both sides expect the issue to continue, with anti-vaccine advocates encouraged by hearings and organizing momentum, while public health advocates say more legislation is likely to appear in future sessions.US states reject anti-vaccine bills as public health groups fight MAHA | ReutersMy column for Bloomberg this week argues that a federal gas tax holiday would be a poor answer to rising gas prices because it would do little for household affordability while further weakening transportation funding. Gas prices are being driven by forces Congress cannot easily fix by statute, including conflict involving Iran and instability around the Strait of Hormuz.Lawmakers are nevertheless showing bipartisan interest in suspending the federal gas tax, including President Donald Trump, Sen. Josh Hawley, and House Speaker Mike Johnson. The political appeal is clear because gas prices are highly visible and give lawmakers a simple way to say they are responding to voters’ economic pain. But the federal gas tax has been frozen at 18.4 cents per gallon since 1993, even as infrastructure costs have continued to rise. Suspending it would take revenue away from the Highway Trust Fund, which helps pay for highways, roads, bridges, and mass transit.The column argues that Congress should separate the problem of household hardship from the problem of transportation finance. Instead of cutting the gas tax, lawmakers could provide targeted help through refundable credits, direct payments, commuter assistance, or flexible transportation support for low- and moderate-income households.If Congress insists on a gas tax holiday, it should at least pair it with an immediate dedicated backfill and longer-term reforms such as indexing the gas tax to inflation, adopting mileage-based fees, or modernizing road-use charges. The larger point is that high gas prices are real, but a gas tax holiday is a badly targeted discount financed by a transportation system that is already financially strained. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Mon 5/18 - Amazon Sued for Tariff Refunds, Fed Circuit Theme Song Debuts, and Trump Drops Suit vs. IRS

2w ago00:09:50Tap to summarize

This Day in Legal History: Plessy v. FergusonOn May 18, 1896, the U.S. Supreme Court decided Plessy v. Ferguson, a case that became one of the most infamous constitutional decisions in American history. The dispute arose from a Louisiana law requiring separate railroad cars for Black and white passengers. Homer Plessy, who was of mixed race, deliberately sat in a whites-only rail car to challenge the law. After he was arrested, Plessy argued that the statute violated the Thirteenth and Fourteenth Amendments. The Supreme Court rejected that argument and held that racial segregation did not violate the Constitution as long as the separate facilities were considered equal. This became known as the “separate but equal” doctrine.In practice, the doctrine gave legal cover to segregation across the South and helped support the broader Jim Crow system. The Court treated segregation as a matter of public policy rather than as a badge of racial inferiority imposed by law. Justice Henry Billings Brown wrote the majority opinion, reasoning that enforced separation did not necessarily imply inequality. Justice John Marshall Harlan dissented, warning that the Constitution should be color-blind and that the ruling would become as harmful as the Court’s decision in Dred Scott. His dissent later became one of the most important statements in American civil-rights law. For nearly six decades, Plessy allowed governments to maintain racially separate schools, transportation, and public facilities.The decision was finally undermined in 1954, when the Supreme Court decided Brown v. Board of Education and rejected segregation in public education. Plessy remains a stark example of how constitutional interpretation can either protect civil rights or help entrench systems of inequality.A proposed class action filed in Washington federal court accuses Amazon of keeping money it allegedly collected from customers through prices inflated by now-invalidated Trump administration tariffs. The plaintiffs say Amazon could seek refunds from the federal government after the U.S. Supreme Court struck down the tariffs, but has refused to do so because it wants to stay in President Trump’s good graces. The lawsuit claims Amazon passed tariff costs on to shoppers, then failed to commit to returning that money even though other retailers have allegedly pursued refunds. The customers point to Amazon’s abandoned plan to show tariff-related price increases on product pages as evidence that the company can identify both the tariff amounts and the consumers who paid them. They also claim Amazon backed away from that plan after criticism from the Trump administration and a call involving Amazon CEO Jeff Bezos.The complaint alleges violations of the Washington Consumer Protection Act, unjust enrichment, and money had and received. The plaintiffs say Amazon misled consumers by suggesting tariffs were not increasing prices, while allegedly raising prices on certain low-cost goods after the tariffs took effect. They also argue Amazon failed to tell customers it would not seek tariff refunds even if the tariffs were later found unlawful. The proposed class would include Amazon customers who paid tariff-related surcharges from February 4, 2025, through February 20, 2026. The suit estimates the class could include tens of millions of buyers and seeks to recover money the plaintiffs say belongs to consumers. Similar lawsuits have been filed against other major companies, including Nike, Sony, Nintendo, Costco, Temu, and FedEx.Amazon Skipped Tariff Refunds To Appease Trump, Suit Says - Law360The Federal Circuit held its biennial judicial conference in Washington, D.C., bringing together its active judges, agency leaders, district judges who have recently sat by designation, Chief Justice John Roberts, and Solicitor General D. John Sauer. Chief Judge Kimberly Ann Moore opened the event with lighter moments, including praise for Senior Judge Raymond C. Clevenger and the debut of an AI-generated Federal Circuit theme song meant to make the court feel more accessible. The conference did not address the ongoing suspension of Judge Pauline Newman, although she attended the event while continuing to challenge the suspension at the Supreme Court. Judge Moore said the court issued 630 opinions in 2025, its highest total in a decade, and noted an effort to use fewer one-line Rule 36 affirmances. Still, court leaders and practitioners criticized Rule 36 decisions, especially because they give lower courts and litigants little explanation.The judges also discussed en banc arguments, emphasizing that lawyers must stay focused because full-court arguments leave little time for extended exchanges with any one judge. A major theme was the renewed use of district judges sitting by designation, with 23 visiting judges helping decide nearly 200 cases since February 2024. Visiting district judges said the experience gave them a new appreciation for appellate work, the quality of Federal Circuit advocacy, and the process of narrowing trial records into appealable issues. Federal Circuit judges also described sitting on other courts, including in criminal sentencing matters, which several said gave them a deeper appreciation for the workload and human stakes faced by district judges. The judges offered practical advice to lawyers, urging them to narrow issues, address weaknesses directly, provide full context for citations, and make appropriate concessions. USPTO Director John Squires also appeared and defended his approach to discretionary denials of inter partes review petitions, saying he is returning the process to what Congress intended under the America Invents Act.Fed. Circ. Drops A Theme Song, Talks Guest Judges - Law360President Donald Trump has dropped his $10 billion lawsuit against the IRS and Treasury Department, a move linked to discussions about creating a $1.8 billion compensation fund for people who claim they were unfairly investigated by prior administrations. The court filing did not describe any settlement, but Trump’s lawyers said the case was still early enough that he could dismiss it without court permission or IRS approval.The dismissal was filed “with prejudice,” meaning Trump cannot bring the same claim again. Trump and his sons filed the lawsuit in January, accusing the IRS of failing to protect confidential tax information after his tax records were leaked. A former IRS contractor, Charles Littlejohn, was sentenced to prison for leaking Trump’s tax information as well as records belonging to many others. Trump brought the case as a private citizen, not in his official role as president. The federal judge overseeing the case had already questioned whether a sitting president could properly seek personal monetary damages from an agency inside the executive branch.The dismissal follows settlements in lawsuits brought by Trump allies, including Michael Flynn and Carter Page. Shortly after Trump’s filing, House Democrats submitted a brief accusing him of self-dealing and arguing that any attempt to use the court process to support a settlement should be closely reviewed.Trump drops lawsuit against IRS amid talks of establishing a $1.8 billion fund for allies | CNN Politics This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal news for Fri 5/15 - Musk Case Goes to Jury, Major Crypto Bill Advances in Senate, Trump Law Firm Orders Face Skeptical Judiciary

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This Day in Legal History: Abe Fortas Resigns SCOTUSOn May 15, 1969, Justice Abe Fortas resigned from the United States Supreme Court, becoming the first justice to leave the Court under the threat of impeachment. Fortas had been appointed to the Court in 1965 by President Lyndon B. Johnson, a close friend and political ally. His reputation had already been damaged in 1968, when Johnson tried to elevate him to Chief Justice and the nomination failed after senators criticized his outside income and ties to the president. The controversy deepened when it became public that Fortas had accepted a financial arrangement from the family foundation of Louis Wolfson, a financier who was later convicted of securities violations. Although Fortas returned the money, the arrangement created the appearance that a sitting Supreme Court justice might be financially entangled with someone who had legal troubles. That appearance alone was enough to cause a major crisis for the Court’s legitimacy.Members of Congress began discussing impeachment, and Fortas ultimately resigned before a formal impeachment process could remove him. His departure became an important example of how judicial ethics are not limited to actual corruption, but also include conduct that undermines public confidence in judicial independence. The episode also showed the tension between life tenure and accountability for federal judges. Article III judges are protected from political pressure through lifetime appointments, but they can still face removal through impeachment for serious misconduct.Fortas’s resignation left a lasting mark on debates over Supreme Court ethics, outside income, recusals, and financial disclosure. More than fifty years later, the Fortas controversy is still cited when questions arise about whether Supreme Court justices should follow clearer and more enforceable ethics rules.Closing arguments ended Thursday in Elon Musk’s federal trial against OpenAI, Sam Altman, Greg Brockman, and Microsoft, with the case now headed to a nine-member jury. Musk’s lawyer argued that OpenAI violated its charitable mission by shifting assets, employees, and value from its nonprofit structure into a for-profit enterprise now worth hundreds of billions of dollars. He focused heavily on Altman’s credibility, telling jurors that OpenAI’s defense depends on believing Altman and pointing to testimony and documents that Musk says show dishonesty, conflicts, and self-enrichment. Musk’s side also attacked Brockman’s large equity stake and cited old journal entries as evidence that OpenAI insiders were thinking about personal wealth while controlling a nonprofit mission. Microsoft was portrayed by Musk’s team as helping the alleged breach by investing billions and gaining major access to OpenAI’s intellectual property and business structure. OpenAI’s lawyers responded that Musk’s claims are late, unsupported, and driven by his status as a competitor rather than by concern for charitable law. They argued Musk’s donations were not legally restricted gifts, that he once sought control of OpenAI himself, and that he did not object to earlier restructuring documents. OpenAI also emphasized that the nonprofit remains in control and now holds a stake worth roughly $200 billion, which its lawyers described as enormous value created for the charity, not stolen from it. Microsoft’s lawyer argued the company did not know of any specific conditions on Musk’s donations and was not involved in the core events Musk complains about. In rebuttal, Musk’s lawyer said OpenAI and Microsoft were distracting the jury from documents and texts showing that Musk funded OpenAI based on a specific nonprofit safety mission. The jury is scheduled to begin deliberations Monday.‘Who’s Telling The Truth?’ Musk-OpenAI Fight Goes To Jury - Law360 UKMusk accused of ‘selective amnesia,’ Altman of lying as OpenAI trial nears end | ReutersThe Senate Banking Committee advanced the Clarity Act, a major crypto regulation bill that would set clearer rules for digital assets and define which regulators oversee different parts of the industry. The Republican-led committee approved the bill with support from all Republicans and two Democrats, Senators Ruben Gallego and Angela Alsobrooks, giving the measure a better chance of reaching the full Senate. Even so, both Democrats warned they may not support the final version unless negotiations change. The bill is important to the crypto industry because it would help determine when tokens are treated as securities, commodities, or something else, which companies say is necessary for growth and legal certainty. Several Democrats objected that the proposal does not go far enough on anti-money laundering protections and should do more to stop public officials from profiting from crypto ventures. Banks are also fighting part of the bill because they fear crypto companies could use stablecoin rewards to compete with traditional deposits. The dispute led to tense committee negotiations, including a late compromise that Chairman Tim Scott allowed while rejecting some other Democratic amendments. Crypto groups have pushed hard for the legislation after spending heavily to support pro-crypto candidates in 2024. The White House is also backing crypto reform, and the House already passed its version of the Clarity Act last year. Supporters see the committee vote as a milestone after years of work, while critics, including Senator Elizabeth Warren, warn the bill favors the crypto industry at the expense of consumers, investors, national security, and the financial system. The bill now moves to the full Senate, where lobbying from crypto companies, banks, and consumer-protection advocates is likely to intensify.US Senate committee advances crypto bill in milestone for digital assets | ReutersA federal appeals court in Washington heard arguments over the Trump administration’s attempt to revive executive orders targeting four major law firms: Perkins Coie, Jenner & Block, WilmerHale, and Susman Godfrey. The firms had previously won in lower court, where judges found the orders unconstitutional. The executive orders punished the firms over issues including their legal work, hiring practices, diversity policies, and political connections. They also sought to restrict the firms’ lawyers from federal buildings, cancel government contracts held by their clients, and remove security clearances from firm employees. The Justice Department argued that the firms’ business relationships and hiring decisions are not protected by the First Amendment, and that courts should not second-guess presidential decisions involving national security. Judges on the D.C. Circuit appeared skeptical of the administration’s broad view of presidential authority, especially the claim that security clearance decisions are unreviewable even when allegedly made for improper reasons. Paul Clement, arguing for the firms, said the orders threatened the First Amendment and the ability of lawyers to represent unpopular clients without government retaliation. He warned that accepting the administration’s theory could allow presidents to punish lawyers or firms based on political affiliation. Judge Neomi Rao, a Trump appointee, seemed more receptive to the administration’s argument that courts have limited power to review security clearance decisions. The case is part of a broader fight over presidential power and whether the government can use executive authority to punish lawyers and firms viewed as political opponents. The appeals court also heard a related case involving lawyer Mark Zaid’s security clearance. Any ruling from the D.C. Circuit could eventually be appealed to the Supreme Court.US appeals court questions Trump’s push to punish major law firms | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Thurs 5/14 - PayPal DOJ Settlement, Musk and SEC Strike Deal, Law Firm Revenue and Expenses Up, Trump's Global Tariff Pause Paused

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This Day in Legal History: Frontiero v. RichardsonOn May 14, 1973, the U.S. Supreme Court decided Frontiero v. Richardson, a major case in the development of constitutional protections against sex discrimination. The case began when Sharron Frontiero, a lieutenant in the United States Air Force, sought dependent benefits for her husband. Under federal law at the time, a male service member could automatically claim his wife as a dependent, but a female service member had to prove that her husband depended on her for more than half of his support. Frontiero argued that this rule treated women in the military as less legitimate breadwinners than men. The Supreme Court agreed that the policy violated the Due Process Clause of the Fifth Amendment. A plurality of the Court reasoned that sex-based legal classifications often reflected outdated assumptions about women’s roles in family and public life.The decision came only a year after Congress passed the Equal Rights Amendment and sent it to the states for ratification, giving the case a larger political and constitutional backdrop. Ruth Bader Ginsburg, then working with the ACLU Women’s Rights Project, filed an amicus brief urging the Court to treat sex discrimination with the same suspicion it applied to race discrimination. The Court did not produce a majority for strict scrutiny in sex-discrimination cases, but Frontiero still marked a sharp move away from judicial tolerance of laws based on gender stereotypes. Justice William Brennan’s plurality opinion emphasized that women had long faced legal and social discrimination, including restrictions on property ownership, voting, employment, and civic participation.The ruling helped establish that administrative convenience was not a sufficient reason for the government to impose unequal burdens on women. It also signaled that servicewomen were entitled to equal treatment within institutions, including the military, that had historically been structured around male service members. In later cases, the Court would settle on an intermediate scrutiny standard for sex-based classifications, but Frontiero remains one of the key cases that pushed constitutional law in that direction.The U.S. Department of Justice has settled an investigation into PayPal over a 2020 investment program aimed at supporting Black- and minority-owned businesses. The DOJ said PayPal’s Economic Opportunity Fund gave preferences based on race, color, and national origin without being tied to a specific remedy for past discrimination. PayPal did not admit liability, and the settlement says the DOJ did not make a formal finding that the company violated the Equal Credit Opportunity Act or other federal law. As part of the agreement, PayPal will create a new small business initiative that waives processing fees on $1 billion in transactions.The fee waivers are valued at about $30 million and will apply to small businesses in farming, manufacturing, and technology, as well as businesses certified through the SBA’s Veteran Small Business Certification Program. PayPal must also submit plans for the initiative, train employees on ECOA requirements, and report annually to the government. Acting Attorney General Todd Blanche framed the settlement as part of the Trump administration’s broader effort to challenge corporate DEI programs. PayPal said it was pleased to launch the new initiative and emphasized its long history of helping small businesses use digital financial tools. The settlement follows another recent DOJ resolution with IBM over workforce diversity-related allegations, showing continued federal scrutiny of corporate DEI practices.PayPal Settles Gov’t DEI Probe With Small Biz Program - Law360The SEC and Elon Musk are scheduled to appear before a federal judge in Washington, D.C., to defend their proposed $1.5 million settlement over Musk’s 2022 purchase of Twitter. The SEC’s lawsuit accused Musk of delaying his disclosure that he had acquired a 5% stake in Twitter, allegedly allowing him to save about $150 million before the market reacted. Musk later bought Twitter for $44 billion.U.S. District Judge Sparkle Sooknanan has not automatically approved the deal and said she must evaluate whether it is fair, in the public interest, and free from improper collusion or corruption. She ordered both sides to appear in court and be ready to suggest a schedule for briefing in support of the settlement. The SEC filed the case in January 2025, shortly before President Biden left office. Musk has argued the case was politically motivated and has said the late disclosure was accidental.The proposed settlement would not require Musk to admit wrongdoing or surrender the money the SEC claimed he saved. Although the amount is much lower than what the SEC initially sought, a source told Reuters it was still the largest SEC penalty for that type of disclosure violation.US SEC, Musk to argue for Twitter settlement before DC judge | ReutersU.S. law firms saw strong client demand and higher billing rates in the first quarter of 2026, but those gains were limited by rising expenses and lower productivity. According to the Thomson Reuters Institute’s latest Law Firm Financial Index, the quarter was healthy overall but not as financially impressive as firms might have expected given the level of demand. The report suggests that 2026 may not match the strong profit growth many firms saw in 2025, though analysts said it is still too early to draw firm conclusions. Average demand rose 2.7% from the same period last year, which the report described as an unusually strong increase. M&A work grew 4.4%, while litigation and overall corporate work each rose 2.9%. Large firms continued to push billing rates sharply higher, with Am Law 100 firms raising rates by 9.8%, while midsized firms increased rates by 5.3%. But expenses climbed almost as quickly, with direct expenses up 8.1% and overhead up 8.3%. A major driver of overhead growth was spending on technology, including artificial intelligence tools.Geopolitical instability, including the war in Iran, has also created uncertainty, with deal activity slowing in March and restructuring work not rising as expected. The report frames the market as still strong, but with enough warning signs that firms may need to watch costs, productivity, and client demand closely in the next quarter.Rising US law firm expenses offset strong demand and rate hikes in first quarter - report | ReutersA U.S. appeals court has temporarily paused a lower court ruling that had favored three challengers to the Trump administration’s 10% global tariff. The pause means the tariffs remain in effect for two businesses and Washington state while the appeal continues. The U.S. trade court had ruled against the tariffs last week but did not issue a broad order stopping their collection nationwide. The Trump administration appealed that decision, and the U.S. Court of Appeals for the Federal Circuit issued a short-term administrative stay while it considers whether to grant a longer pause. The challengers now have seven days to argue against keeping the lower court ruling on hold. Washington state qualified as an importer in the case because the University of Washington, a public research institution, paid tariffs. The tariff was imposed in February under Section 122 of the Trade Act of 1974, after the Supreme Court struck down most of Trump’s 2025 tariffs. Unless Congress extends it, the 10% global tariff is scheduled to expire in July.US appeals court pauses ruling against Trump’s 10% global tariff | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Weds 5/13 - TX vs. Netflix, Criminal Charges in Baltimore Bridge Crash, Refundable Adoption Tax Credit

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This Day in Legal History: Mexican-American WarOn May 13, 1846, Congress approved President James K. Polk’s request for a declaration of war against Mexico, formally beginning the Mexican-American War. Polk had told Congress that Mexico had “invaded our territory and shed American blood on American soil,” after a clash between Mexican forces and American troops near the Rio Grande. The problem was that the land where the clash occurred was disputed: the United States claimed the Rio Grande as the border of Texas, while Mexico maintained that the border was farther north at the Nueces River. Congress accepted Polk’s framing and passed the war declaration, but the vote did not settle the legal question of whether the president had maneuvered the country into war. Many Whigs saw the conflict not as a defensive war, but as a war of expansion designed to seize Mexican territory.One of the sharpest critics was a young Whig congressman from Illinois, then serving his only term in the House of Representatives. In December 1847, a one Abraham Lincoln introduced what became known as the Spot Resolutions, demanding that Polk identify the precise “spot” where American blood had supposedly been shed. Lincoln wanted to know whether that spot was truly American soil, or whether U.S. troops had been sent into disputed territory first. In one of the resolutions, he asked whether “the particular spot of soil on which the blood of our citizens was so shed” was actually American soil at the time. The challenge was simple but devastating: if Polk could not prove the location was within the United States, then his legal justification for war began to fall apart.Lincoln’s attack did not stop the war, and it made him unpopular with many voters who thought he was undermining American soldiers in the field. Critics even mocked him as “Spotty Lincoln.” But the episode revealed an early version of the Lincoln who would later become president: a lawyer-politician who focused on the exact words used to justify government power. The May 13 declaration therefore stands not only as the beginning of a war, but as an early constitutional fight over presidential war-making, disputed borders, and whether Congress had been asked to approve a war on a false premise.Texas has sued Netflix in state court, accusing the company of misleading subscribers about how it collects and uses viewing data. The lawsuit claims Netflix built its reputation by presenting itself as a paid, ad-free alternative to companies that rely heavily on user tracking and advertising. According to Texas, Netflix nevertheless collected large amounts of information about what users watched, how they browsed, and how they interacted with the platform.The state alleges that Netflix profited from that data by using it for advertising and sharing or selling it to outside companies without proper consent. The petition also criticizes features such as autoplay, describing them as design choices that push users toward binge-watching by removing natural stopping points. Texas further claims that Netflix marketed itself as family-friendly while still tracking children’s viewing and browsing behavior, even if it has not yet targeted children with ads. Attorney General Ken Paxton said the company misrepresented itself as safer and more privacy-protective than it really was.The lawsuit brings claims under the Texas Deceptive Trade Practices Act and seeks civil penalties, an injunction, and an order requiring Netflix to delete data allegedly collected through deceptive practices.Texas Sues Netflix Over ‘Staggering’ Data Logging - Law360Federal prosecutors have brought the first criminal charges against companies involved in operating the M/V Dali, the container ship that struck Baltimore’s Francis Scott Key Bridge in March 2024. The indictment names Singapore-based Synergy Marine, India-based Synergy Maritime, and Radhakrishnan Karthik Nair, who served as technical superintendent for the ship. Prosecutors accuse them of recklessly operating the vessel, falsifying inspection records, failing to report a hazardous condition to the Coast Guard, obstructing agency proceedings, and lying to National Transportation Safety Board investigators. The crash killed six construction workers, destroyed the bridge, disrupted access to the Port of Baltimore, and allegedly caused billions of dollars in economic losses. According to prosecutors, the Dali had electrical and mechanical problems that made it vulnerable to blackouts, and Synergy employees improperly used a flushing pump as a regular fuel supply pump for generators.The government claims that if the proper pumps had been used, the ship could have regained power in time to avoid the bridge. The indictment also includes environmental allegations tied to pollutants released into the Patapsco River, including oil, shipping containers, and bridge debris. Synergy denies wrongdoing and says the Justice Department is wrongly treating a tragic accident as a crime. The company argues that the crash was caused by a loose wire, consistent with the NTSB’s findings, and says the DOJ’s theory conflicts with maritime experts’ conclusions. Separate civil litigation over liability is still moving forward, including claims by Maryland, Baltimore, cargo interests, insurers, and others. Maryland also finalized a $2.25 billion settlement with Grace Ocean and Synergy Marine, while continuing claims against the shipbuilder, HD Hyundai Heavy Industries. Planning for the Key Bridge replacement is underway, with the new bridge expected to cost between $4.3 billion and $5.2 billion and be completed by late 2030.Ship Managers Indicted Over Baltimore Bridge Disaster - Law360In my column for Bloomberg this week, I wrote about how Congress made the adoption tax credit partially refundable beginning in 2025, a change that could help families manage the high costs of adoption. The policy is meant to make the credit more useful when families actually need the money, since adoption can involve major expenses such as agency fees, legal bills, travel, and other costs that arrive long before any tax benefit is received. But refundable credits also raise fraud concerns for the IRS because they can result in direct payments from the government.The column warns that the IRS may respond by delaying refunds, issuing broad documentation requests, and placing legitimate families through lengthy reviews. That concern is based on what happened in 2010 and 2011, when the adoption credit was fully refundable and the IRS subjected many claims to extra scrutiny. During the 2012 filing season, 90% of returns claiming the credit received additional review and 69% were selected for audit. Adoption claims are often complex, not suspicious, because they can involve international agencies, state courts, amended documents, failed placements, special-needs rules, and unusual expense records. The IRS should issue clear guidance before filing season so families know what documents they need to submit with Form 8839.It should also create a standardized checklist or attachment and a dedicated review track staffed by employees trained on adoption-credit rules. Without better guidance and staffing, the refundable portion of the credit may become less useful because families could face audits, professional fees, delayed refunds, or fear of claiming the benefit at all. The broader point is that Congress cannot expand a benefit, demand fraud prevention, reduce administrative capacity, and then be surprised when taxpayers get stuck in delays.Adoption Credit’s Refundability Makes It Valuable—and Vulnerable This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Tues 5/12 - Short Seller on Trial, Law Students Race to Beat Federal Loan Caps and Judge Scrutinizes Musk's SEC Settlement

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This Day in Legal History: Anti-Spitting LawsOn May 12, 1896, New York City adopted one of the country’s best-known early anti-spitting laws, aimed at stopping the spread of tuberculosis. At the time, tuberculosis was one of the deadliest diseases in American cities, and public health officials were increasingly focused on sputum as a source of infection. The new rule made it illegal to spit in public places, including streets, sidewalks, public buildings, and transit spaces. That may sound like a small matter today, but in the late nineteenth century it was part of a much larger legal campaign to use city power to fight disease.The law reflected the growing belief that personal habits could become public harms when they created risks for others. It also showed how local governments were beginning to treat public health as a matter of regulation, enforcement, and criminal penalty. Violators could face fines, and in some cases arrest, which turned a common social habit into a legally punishable act. The ordinance was not just about cleanliness; it was about using law to change behavior before illness spread.New York’s approach influenced other cities, which passed similar anti-spitting rules as tuberculosis campaigns expanded across the country. The measure also raised a familiar legal question: when does protecting public health justify limiting individual freedom in public spaces? That question would appear again in later fights over quarantine, vaccination, sanitation, smoking bans, and other health regulations.Anti-spitting laws are a reminder that public health law often develops through ordinary, everyday conduct rather than dramatic courtroom battles. The legal element here is the police power, because the ordinance shows how local governments used their authority to protect health, safety, and welfare by regulating conduct in shared public spaces.Andrew Left, the founder of Citron Research and a well-known short seller, is set to go on trial in Los Angeles over federal criminal charges that he manipulated the market and misled investors. Prosecutors say Left used his public profile, including social media posts and television appearances, to announce trading positions in companies such as Nvidia and Tesla while secretly closing those positions soon after price moves. The government alleges that this strategy allowed him to make at least $16 million.Prosecutors also claim Left gave hedge funds advance notice of his public calls in exchange for compensation and hid those arrangements through fake invoices. Left has pleaded not guilty, and his lawyers argue that he made honest market commentary in good faith. They also say there is no law requiring an investor to hold a position for any particular amount of time after speaking publicly about it. Jury selection is expected to begin this week, and the trial could include testimony from retail investors and other witnesses. The case has drawn attention because short sellers often argue that their work is protected speech and that they help expose fraud or overvaluation in public companies.Some legal experts see the prosecution as an aggressive theory, especially because investors are generally allowed to change their minds about trades. At the same time, the Justice Department appears to be trying to prove more than ordinary opinion or trading strategy by alleging deception, secret coordination, and knowingly false statements. If convicted of securities fraud, Left could face a lengthy prison sentence.Short seller Andrew Left to stand trial in LA over manipulation charges | ReutersSome incoming law students are starting school in May or June instead of waiting until the fall so they can qualify under the current federal student loan system before new limits take effect on July 1. A few law schools already had summer start programs, but demand has increased as students try to avoid the new loan caps for professional degrees. Stetson University College of Law and Rutgers Law School even created summer start options specifically to help students borrow under the existing rules. Under the expiring system, graduate and professional students can borrow up to the full cost of tuition and living expenses through federal loans.The new system will cap federal borrowing for professional programs at $50,000 per year and $200,000 total, which could leave some law students needing private loans. That is a major concern because private loans may have higher interest rates, stricter credit requirements, and fewer protections than federal loans. Stetson’s dean said the early start option may be especially helpful for students with poor credit or existing debt. The Education Department has defended the new caps as a way to reduce excessive borrowing and pressure schools to lower costs. Several schools, including Seattle University, Rutgers, Ave Maria, and Drexel, report increased interest in summer programs. Administrators say the loan changes are driving much of that demand, though some worry that many applicants still do not understand how much the new rules could affect them.Some US law students enroll early to beat the federal loan clock | ReutersA federal judge in Washington, D.C., refused to immediately approve Elon Musk’s $1.5 million settlement with the SEC over his delayed disclosure of a large Twitter stake. The SEC had accused Musk of waiting too long to report that he had acquired more than 5% of Twitter’s shares before later revealing a 9.2% stake in April 2022. According to the agency, that delay allowed Musk to save about $150 million before he ultimately bought Twitter for $44 billion. Judge Sparkle Sooknanan said she needs more information before approving the deal, including whether it is fair, serves the public interest, and is free from improper collusion or corruption. She ordered Musk and the SEC to appear in court on May 13 and be ready to propose a schedule for briefs defending the settlement. The proposed deal would not require Musk to admit wrongdoing or return the money the SEC says he saved. Musk has said the delayed filing was accidental and has argued that the lawsuit was politically motivated. The case also comes as the SEC, now under Chairman Paul Atkins, is shifting its enforcement priorities under the Trump administration. The timing of the settlement talks has drawn attention because they were disclosed shortly after the SEC’s enforcement chief left her post. For now, the judge made clear that she will not simply sign off on the agreement without scrutiny.US judge will not rubber-stamp Elon Musk settlement with SEC | Reuters This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe

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Legal News for Tues 5/26 - Bipartisan Support for Transportation Bill, DOJ Pushes Ballroom Project for "Security" Purposes, and Taxing Cloud Dependent Software

Legal News for Fri 5/22 - Bad Spaniels at 9th Circuit, Meta Mental School Health Settlement, OpenAI Law Firm Associations

Legal News for Thurs 5/21 - MN Sued Over Prediction Market Ban, 1/6 Slush Fund Lawsuit, Peanuts Copyright Fight Over Snoopy Music

Legal News for Wed 5/20 - Trump IRS Slush Fund, Wells Fargo Union Retreat, Anthropic Fights Supply Chain Risk Label, Morgan and Morgan in Harvard Morgue Case

Legal News for Tues 5/19 - Title IX at Supreme Court, Mangione Backpack Evidence Partially Out, MAHA Vaccine BS Losses, and Gas Tax Holidays are Bad Policy

Legal News for Mon 5/18 - Amazon Sued for Tariff Refunds, Fed Circuit Theme Song Debuts, and Trump Drops Suit vs. IRS

Legal news for Fri 5/15 - Musk Case Goes to Jury, Major Crypto Bill Advances in Senate, Trump Law Firm Orders Face Skeptical Judiciary

Legal News for Thurs 5/14 - PayPal DOJ Settlement, Musk and SEC Strike Deal, Law Firm Revenue and Expenses Up, Trump's Global Tariff Pause Paused

Legal News for Weds 5/13 - TX vs. Netflix, Criminal Charges in Baltimore Bridge Crash, Refundable Adoption Tax Credit

Legal News for Tues 5/12 - Short Seller on Trial, Law Students Race to Beat Federal Loan Caps and Judge Scrutinizes Musk's SEC Settlement