Minimum Competence

Andrew and Gina Leahey

Minimum Competence is your daily companion for legal news, designed to bring you up to speed on the day’s major legal stories during your commute home. Each episode is short, clear, and informative—just enough to make you minimally competent on the key developments in law, policy, and regulation. Whether you’re a lawyer, law student, journalist, or just legal-curious, you’ll get a smart summary without the fluff. A full transcript of each episode is available via the companion newsletter at www.minimumcomp.com. www.minimumcomp.com

  1. 13 HR AGO

    Legal News for Thurs 3/12 - Live Nation Antitrust Trial Stalled, ExxonMobil Explores Move to TX, and Sony Sued in UK over Playstation Store

    This Day in Legal History: SCOTUS Impeachment On March 12, 1804, the U.S. House of Representatives voted to impeach Supreme Court Justice Samuel Chase. Chase, a Federalist appointed to the Court in 1796, had become a controversial figure during a period of intense political division between the Federalists and the Democratic-Republicans. Members of Congress accused him of allowing his political views to influence his conduct on the bench. Much of the criticism focused on Chase’s behavior during trials brought under the Alien and Sedition Acts, where he was alleged to have treated defendants and their lawyers unfairly. The House approved several articles of impeachment claiming that Chase’s courtroom conduct showed bias and undermined the impartial administration of justice. The impeachment moved to the Senate for trial in early 1805, with Vice President Aaron Burr presiding over the proceedings. After weeks of arguments and testimony, the Senate failed to reach the two-thirds majority required for conviction on any article. As a result, Chase was acquitted and remained on the Supreme Court until his death in 1811. The outcome established an important precedent about the limits of impeachment as a tool against federal judges. Although Congress has the constitutional authority to impeach judges, the Chase trial suggested that impeachment should not be used simply because legislators disagree with a judge’s legal or political views. In the years that followed, the case came to symbolize a commitment to judicial independence within the federal system. By declining to remove Chase from office, the Senate reinforced the idea that judges should be protected from political retaliation for their rulings. The episode remains the only time a sitting Supreme Court justice has ever been impeached by the House of Representatives. Today, the Chase impeachment is often cited in discussions about the balance between judicial accountability and the need for an independent judiciary. A federal antitrust case against Live Nation Entertainment has stalled as negotiations over a proposed settlement continue and several states resist the deal. The lawsuit, brought by the U.S. Department of Justice Antitrust Division and numerous state attorneys general, alleges that Live Nation used monopolistic practices to dominate the live concert industry after acquiring Ticketmaster in 2010. During a recent court hearing, Arun Subramanian criticized both sides for failing to notify him earlier that settlement discussions were underway. He said the parties waited until just before trial to reveal that negotiations were close to completion, which he suggested was improper conduct. The proposed settlement would require Live Nation to allow competitors to sell tickets at some of its venues, limit certain ticket service fees to 15%, sell control of at least 13 amphitheaters, and loosen exclusivity arrangements. The company would also create a settlement fund exceeding $280 million to resolve state claims. However, attorneys general from many of the states involved have objected because the agreement does not require Live Nation to divest Ticketmaster. More than two dozen states have asked the court to declare a mistrial and restart proceedings later, though others support or are still evaluating the settlement. Judge Subramanian has not yet ruled on the mistrial request and instead urged the parties to continue negotiations immediately at the courthouse. He indicated that if a broader agreement cannot be reached soon, the court will determine the next procedural step. Live Nation maintains that the industry remains competitive and argues that the plaintiffs have selectively used data to support their allegations. The dispute highlights the complexity of resolving large antitrust cases involving both federal and state enforcement authorities. Judge Fumes As Live Nation Antitrust Trial Remains In Limbo - Law360 ExxonMobil has announced plans to move its legal incorporation from New Jersey to Texas, citing the state’s increasingly business-friendly legal environment. In a proxy statement to shareholders, the company explained that most of its senior leadership and corporate functions have already been located in Texas for decades, making the change largely formal rather than operational. Executives said Texas offers a more predictable, statute-based framework for corporate governance and regulation. A major factor behind the move is the creation of the Texas Business Court in 2024. Exxon also pointed to recent updates to the Texas Business Organizations Code that clarify standards for corporate decision-making and director conduct. Company leadership believes these reforms create a legal climate that supports economic growth and shareholder value. Exxon joins other companies that have relocated their corporate domicile to Texas, including Tesla and Coinbase. State officials have promoted these moves as evidence that Texas is becoming a strong alternative to traditional corporate hubs such as Delaware. Recent reforms include legislation codifying the Business Judgment Rule, which limits liability for corporate directors unless misconduct like fraud is proven. Texas has also launched broader initiatives to attract corporations, including approval for the upcoming Texas Stock Exchange, expected to begin operations in 2026. Supporters argue these efforts strengthen the state’s reputation as a center for corporate formation and governance. Exxon’s relocation reflects this broader trend of companies seeking jurisdictions with legal systems designed to favor corporate decision-making and reduce litigation risk. ExxonMobil Plans Move To Texas, Citing Biz-Friendly Milieu - Law360 ExxonMobil Board unanimously recommends redomiciling the company from New Jersey to Texas Millions of PlayStation users have begun a major antitrust class action in the United Kingdom against Sony Interactive Entertainment, seeking about £5 billion in damages. The case is being heard before the Competition Appeal Tribunal and is expected to last around ten weeks. The lawsuit is led by consumer advocate Alex Neill, who represents millions of PlayStation customers. The claim alleges that Sony unlawfully controls the digital PlayStation ecosystem, limiting competition and forcing users to buy games and add-ons only through the company’s online store. According to the plaintiffs, Sony pre-installs the PlayStation Store on its consoles and prevents users from installing alternative software or accessing other digital marketplaces. As a result, consumers allegedly become locked into Sony’s platform and cannot shop for cheaper options. Lawyers for the consumers argue that these restrictions allow Sony to charge higher prices and maintain strong profit margins. A major issue in the case is how the relevant market should be defined. Sony plans to argue that its consoles and digital services operate as part of a single “systems market,” where hardware and software function as one integrated product. The plaintiffs disagree, claiming the console is only the initial purchase and that digital games and add-ons form separate “aftermarkets” where Sony exercises additional control. They argue consumers often cannot predict future costs for games or downloadable content when they buy the console, making them vulnerable to higher prices later. Sony is expected to argue that it simply created a platform that enables game publishers to sell products efficiently and that it is entitled to control access to its own storefront and intellectual property. The company maintains that these practices are legitimate business decisions rather than anticompetitive conduct. The tribunal will ultimately decide whether Sony’s control of its platform amounts to unlawful market dominance under U.K. competition law. PlayStation Users Say Sony Made Them ‘Captives’ In £5B Trial - Law360 UK PlayStation Officially Facing $2.7bn Lawsuit That Could Change It Forever 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

    7 min
  2. 1 DAY AGO

    Legal News for Weds 3/11 - Federal Judiciary Software Upgrade, Bayer Pushes State Limits on Roundup Lawsuits, Judge Weighs Deal to End Turkish Bank Sanctions Case

    This Day in Legal History: Confederate States Constitution On March 11, 1861, delegates of the newly formed Confederate States adopted the Constitution of the Confederate States of America in Montgomery, Alabama. The document closely resembled the United States Constitution in structure, language, and institutional design, reflecting the Confederacy’s claim that it was preserving the original constitutional order rather than rebelling against it. But the similarities masked a fundamental and disturbing difference: the Confederate Constitution explicitly protected and entrenched slavery. Unlike the U.S. Constitution, which used indirect language around the institution, the Confederate document openly required that slavery be recognized and protected in Confederate territories. It also prohibited any law impairing the right of property in enslaved people, making the protection of slavery a central constitutional commitment rather than a political compromise. The constitution also attempted to limit certain federal powers, reflecting long-standing Southern arguments about states’ rights and suspicion of centralized authority. For example, it restricted tariffs and internal improvements, policies many Southern leaders believed favored Northern industrial interests. The document also changed the structure of the executive branch by providing for a single six-year presidential term instead of allowing reelection. These provisions were intended to prevent what Confederate leaders viewed as excessive federal power or political manipulation. Despite these structural adjustments, the document largely replicated the American constitutional framework while placing slavery at its legal core. The legal significance of the Confederate Constitution lies in how clearly it reveals the central constitutional dispute of the Civil War era. While defenders of the Confederacy often framed secession as a fight over federalism or states’ rights, the constitutional text itself makes clear that preserving slavery was a primary objective. By embedding the protection of slavery directly into its governing charter, the Confederacy transformed the defense of human bondage into a foundational legal principle. The document therefore stands as a stark example of how constitutional law can be used not only to secure liberty, but also to entrench injustice. Federal judicial officials announced plans to speed up development of a new electronic case management system after a major cyber breach exposed weaknesses in the courts’ existing technology. The decision was discussed during a closed meeting of the Judicial Conference, the federal judiciary’s main policymaking body, held at the U.S. Supreme Court building. Judge Michael Scudder, who leads the conference’s information technology committee, said recent cyber intrusions made it clear that modernization can no longer proceed at its previous pace. The breach, disclosed in July 2025, raised concerns that foreign actors may have accessed sensitive materials, including sealed files and information about confidential informants. The incident followed an earlier cybersecurity breach involving the federal courts in 2020. In response, the judiciary plans to begin testing components of the upgraded system in six courts during 2026. Officials hope to begin rolling out parts of the new system to federal district courts nationwide next year. Appellate and bankruptcy courts would receive updates afterward. Judiciary leaders now expect that most of the modernization work could be completed within two to three years, a faster timeline than originally planned. The project also aims to improve the search tools used in PACER, the public database that allows users to access federal court filings. Despite long-standing criticism from lawmakers and transparency advocates, the judiciary does not currently plan to eliminate PACER’s user fees. Court officials say those fees provide roughly 85 percent of the funding for the modernization effort. US judiciary to fast-track court records system upgrade after hacking | Reuters Federal and state lawmakers are considering measures that could reshape lawsuits involving the weedkiller Roundup as Bayer continues to face large-scale litigation over the product. In Kansas, legislators debated a bill supported by Bayer that would prevent individuals from suing pesticide manufacturers for failing to warn that their products might cause cancer or other illnesses. The proposal is part of a broader legislative strategy by the company, which has supported similar bills in roughly a dozen states. These efforts come as Bayer prepares a proposed $7.25 billion settlement aimed at resolving most of the roughly 65,000 remaining lawsuits alleging that Roundup caused non-Hodgkin lymphoma. Bayer inherited the litigation when it purchased Monsanto for $63 billion in 2018. Since then, the company has faced extensive legal costs and large verdicts, contributing to significant financial losses. Supporters of the Kansas bill argue that without such protections, pesticide manufacturers might remove widely used products from the market or raise prices, which could affect farmers and agricultural businesses. Critics, however, question the Environmental Protection Agency’s conclusion that glyphosate—the main ingredient in Roundup—is unlikely to cause cancer and argue the legislation would shield companies from accountability. The debate is occurring alongside other legal developments. The U.S. Supreme Court is scheduled to hear arguments in April about whether federal pesticide law requires Bayer to warn consumers about potential cancer risks. Meanwhile, members of Congress are considering a farm bill provision that would require uniform pesticide labels nationwide, preventing states or local governments from mandating warnings different from those approved by the EPA. A Missouri judge has also given preliminary approval to Bayer’s proposed $7.25 billion class-action settlement, with a final decision expected later this year. Bayer takes its multi-front battle on pesticide liability to Kansas | Reuters A federal judge in Manhattan is set to review a proposed agreement that would end the U.S. government’s criminal prosecution of Turkey’s state-owned Halkbank. The case accused the bank of helping Iran bypass U.S. economic sanctions through financial transactions. Prosecutors and the bank reached a deferred prosecution agreement, which would pause the case while the bank demonstrates compliance with new restrictions. Under the proposal, Halkbank must avoid transactions benefiting Iran and hire an independent monitor to review its sanctions and anti-money-laundering controls. The agreement does not require the bank to pay a fine or admit wrongdoing. If Halkbank complies with the conditions, the criminal charges would likely be dismissed after the monitoring period. Prosecutors have asked the judge to pause the proceedings for 90 days so the bank can begin demonstrating compliance. Although judges generally have limited authority to reject deferred prosecution agreements, the court may still review the deal to ensure it follows established legal precedent. The resolution could ease tensions between the United States and Turkey, which had been strained by the case. U.S. officials indicated that resolving the prosecution also carried diplomatic importance during negotiations related to Turkey’s role in securing a ceasefire between Israel and Hamas in 2025. The announcement of the deal caused Halkbank’s share price to rise sharply. Turkish President Recep Tayyip Erdoğan had previously criticized the case as politically motivated. Judge to weigh Halkbank, US prosecutors’ resolution to criminal case | 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

    7 min
  3. 2 DAYS AGO

    Legal News for Tues 3/10 - Live Nation Settlement, FCPA Bribery Statute Extension, Court Blocks Ending of TPS for Haitians and Renewable Energy Policy in 2025 vs. 2027

    This Day in Legal History: Blue Sky Laws On March 10, 1911, Kansas enacted the first “blue sky law” in the United States, marking a significant development in the regulation of securities markets. The statute was designed to protect investors from fraudulent investment schemes that had become increasingly common in the early twentieth century. At the time, promoters frequently sold speculative securities with little oversight and few consequences if the ventures failed. Kansas lawmakers responded by creating a system that required securities offerings to be reviewed before they could be sold to the public. State officials were given authority to examine proposed investments and determine whether they were legitimate. The name “blue sky law” reflected the legislature’s concern that many promoters were selling investments backed by nothing more than empty promises. Lawmakers wanted to prevent the sale of securities that had no real value or financial foundation. Kansas banking commissioner Joseph Norman Dolley played a central role in advocating for the law and persuading the legislature to adopt stronger investor protections. His efforts reflected growing public concern about financial fraud and the need for government oversight of securities markets. The Kansas statute quickly became a model for other states. Within a few years, many states adopted their own versions of blue sky laws, creating a patchwork system of state-level securities regulation. These laws helped establish the principle that governments could require disclosure and review before securities were sold to the public. The idea later influenced the development of federal securities regulation during the New Deal era. In particular, the framework helped shape the Securities Act of 1933, which created nationwide disclosure requirements for securities offerings. Live Nation Entertainment has reached a proposed settlement with the U.S. Department of Justice in a major antitrust case challenging the company’s dominance in concert promotion and ticketing. The agreement was disclosed during a court hearing and could resolve part of a lawsuit brought by federal regulators and more than two dozen states. Live Nation is also negotiating separately with state attorneys general in an effort to reach a broader nationwide resolution of related claims. Under the proposed deal, the company would pay roughly $200 million in damages to participating states and accept structural reforms aimed at reducing its market power. Regulators had argued that Live Nation’s control of venues, artist promotion, and ticketing—particularly through Ticketmaster—allowed the company to inflate prices and limit competition. The lawsuit was filed in 2024 and initially sought to break up the company by forcing a sale of Ticketmaster. The settlement instead focuses on changing how the ticketing market operates. Ticketmaster would be required to open parts of its technology platform to competing ticket sellers, allowing third-party companies to list tickets directly through its system. The deal would also limit the length of Live Nation’s exclusive contracts with venues to four years and permit venues to allocate some ticket inventory to rival platforms. The case gained political attention after widespread complaints about long online queues and high prices during the 2022 Taylor Swift Eras Tour ticket sales. A federal judge had allowed the antitrust case to proceed to trial after rejecting Live Nation’s attempt to dismiss it earlier this year. If finalized, the settlement would impose oversight and competition requirements on the company rather than break it up. Live Nation reaches settlement with DOJ in antitrust case | Reuters Democratic U.S. senators plan to introduce legislation that would extend the time prosecutors have to bring foreign bribery cases from five years to ten. The proposal, called the FCPA Reinforcement Act, is led by Senators Elizabeth Warren and Dick Durbin along with several other Democratic lawmakers. It responds to recent Justice Department decisions to scale back enforcement of the Foreign Corrupt Practices Act (FCPA), a 1977 law that prohibits companies operating in the United States from bribing foreign officials. Supporters of the bill argue that international corruption investigations are complex and often take years to uncover, making the current five-year statute of limitations too short. The proposed law would temporarily extend the deadline for bringing anti-bribery charges to ten years for an eight-year period. Lawmakers say the change is meant to ensure companies can still be held accountable for misconduct even if enforcement priorities shift. The proposal also signals to corporations that compliance obligations remain important despite the current enforcement slowdown. Some legal experts worry that reduced federal enforcement could lead companies to scale back anti-corruption compliance programs or stop voluntarily reporting violations. Although the bill may face difficulty passing in the current Congress, it indicates that some lawmakers want to preserve strong anti-bribery enforcement and may pursue stricter oversight in the future. US lawmakers plan bill allowing 10 years to bring bribery cases | Reuters A divided federal appeals court has refused to allow the Trump administration to end immigration protections for more than 350,000 Haitians living in the United States. In a 2–1 decision, the U.S. Court of Appeals for the D.C. Circuit declined to pause a lower court ruling that blocked the Department of Homeland Security from terminating Haiti’s Temporary Protected Status (TPS). The ruling means the protections will remain in place while the administration continues its appeal. TPS is a humanitarian program that allows people from certain countries facing crises—such as armed conflict, natural disasters, or political instability—to remain in the United States temporarily and obtain work authorization. Haitians first received TPS after the devastating 2010 earthquake, and the designation has been repeatedly renewed because of ongoing instability in the country. The Trump administration sought to end Haiti’s TPS designation as part of a broader effort to scale back the program, arguing that it was never intended to function as long-term legal status. But a federal district judge previously ruled that the government’s attempt to terminate the protection likely violated both TPS procedures and constitutional equal-protection principles. The appeals court majority agreed that sending Haitian migrants back now could expose them to severe violence and humanitarian risks due to Haiti’s deteriorating conditions. One judge dissented, arguing the case was legally similar to disputes where courts allowed the administration to end TPS protections for Venezuelans. The Department of Homeland Security said it plans to appeal the ruling to the U.S. Supreme Court. For now, the decision preserves legal status and work authorization for hundreds of thousands of Haitian immigrants while the litigation continues. Trump cannot end protections for 350,000 Haitians, US appeals court rules | Reuters My column for Bloomberg this week examines the surprising milestone that renewable energy generated 26% of U.S. electricity in 2025—even as federal clean-energy incentives were being rolled back. At first glance, that record share might suggest the transition to renewables is unstoppable. In reality, much of the current growth reflects investment decisions made years earlier, when generous subsidies from the Inflation Reduction Act and related policies were still in place. Large wind and solar projects often take three to seven years to move from financing and permitting to full operation. That means many facilities coming online today were funded under a very different policy environment than the one developers face now. Recent changes to federal tax policy have scaled back or eliminated several incentives that previously supported renewable development and electric vehicle adoption. These changes do not immediately halt construction, but they alter the financial calculations for the next generation of projects. Renewable energy projects rely heavily on financing structures that incorporate tax credits, equity partnerships, and long-term debt. When incentives shrink or become uncertain, developers must either accept greater risk or secure more expensive capital. At the same time, unresolved federal rulemaking and regulatory uncertainty are adding another layer of caution for investors. Although wind and solar technology costs have declined and can remain competitive with fossil fuels, policy instability can still erode project margins. The key point is that energy statistics describe what is already built, while investment decisions determine what the energy system will look like years from now. Current renewable growth may therefore reflect past policy rather than present conditions. Financing data already shows signs of slowing investment in green energy. To maintain steady development, policymakers should avoid abrupt tax-credit expirations and instead adopt predictable, multi-year phaseouts that allow markets to adjust. Agencies could also reduce uncertainty by finalizing or withdrawing proposed energy regulations within clear timelines. Stable rules make it easier for investors to commit capital to projects designed to operate for decades. The next investment cycle will reveal whether today’s policy environment supports continued energy expansion or discourages it. 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

    9 min
  4. 3 DAYS AGO

    Legal News for Mon 3/9 - Anna's Archive Sued, CA Climate Disclosure Laws Up in the Air, Social Media Addiction Trial and $166b in Tariff Refunds

    This Day in Legal History: The Amistad On March 9, 1841, the U.S. Supreme Court decided United States v. The Amistad, ruling that a group of Africans who had seized control of the Spanish ship La Amistad were free individuals who had been illegally enslaved. The case began after the captives, led by Sengbe Pieh—often called Cinqué—revolted against the ship’s crew while being transported from Cuba in 1839. They had originally been kidnapped in West Africa and sold into slavery in violation of international agreements banning the transatlantic slave trade. After the revolt, the ship was intercepted near Long Island and the Africans were taken into U.S. custody. Spanish officials demanded that the United States return both the ship and the captives to Cuba. The U.S. government supported Spain’s request, arguing that the captives were property under Spanish law. Abolitionists rallied to the Africans’ defense and secured legal representation for them in American courts. The case eventually reached the Supreme Court, where former President John Quincy Adams joined the legal team arguing for the captives’ freedom. Adams delivered a lengthy and passionate argument emphasizing natural rights and the illegality of the slave trade that had brought the Africans to Cuba. Writing for the majority, Justice Joseph Story concluded that the captives had been unlawfully enslaved and were therefore not property. Because they were free individuals, the Court held that they had the legal right to resist their captivity and fight for their liberty. The Court ordered that the Africans be released rather than returned to Spanish authorities. The ruling was celebrated by abolitionists as an important moral and legal victory in the fight against slavery. Although it did not end slavery in the United States, the decision demonstrated that courts could recognize limits on the slave trade and acknowledge the legal claims of enslaved people. Thirteen major U.S. book publishers have filed a copyright lawsuit against Anna’s Archive, a website they describe as one of the largest “shadow libraries” distributing pirated books and academic papers. The publishers—including HarperCollins, Wiley, McGraw Hill, and Cengage—filed the complaint in federal court in New York, alleging that the site hosts more than 63 million books and 95 million research papers without authorization. According to the lawsuit, Anna’s Archive allows users to download these materials directly or through torrent networks, making copyrighted works widely available for free. The publishers claim the site openly presents itself as a pirate platform and intentionally violates copyright law. The complaint also alleges that Anna’s Archive was created in 2022 after copying entire collections from other illegal book repositories and has continued expanding its database. The publishers say the site operates anonymously and frequently changes domain names across different countries to avoid enforcement efforts. They further claim the platform targets artificial intelligence developers by offering large datasets of books and papers. While free users can access files slowly, the complaint states that faster downloads are available to users who make donations through untraceable methods like cryptocurrency or gift cards. The publishers allege that these donations can reach roughly $200,000 for high-speed bulk access. In response, the plaintiffs are asking the court to shut down the site and award statutory damages of up to $150,000 for each infringed work. The lawsuit follows a separate case brought by Atlantic Recording Corp., which earlier obtained a preliminary injunction preventing Anna’s Archive from distributing millions of music files allegedly copied from Spotify. That case resulted in a default after the site failed to respond to the complaint. However, the publishers argue that the earlier injunction does not cover books, allowing the alleged book piracy to continue. The Association of American Publishers has publicly supported the lawsuit, describing the scale of digital piracy as extremely large and urging legal action to stop the operation. Publishers Sue ‘Shadow Library’ For ‘Staggering’ Book Piracy - Law360 Companies that operate in California are facing uncertainty as the state moves forward with major climate disclosure laws while a federal appeals court considers whether the rules should be blocked. The laws—California Senate Bills 253 and 261—require large companies doing business in the state to disclose information about greenhouse gas emissions and climate-related financial risks. In late February, the California Air Resources Board approved initial regulations explaining how the reporting system will be administered and how companies will pay implementation fees. At the same time, the Ninth Circuit has temporarily blocked enforcement of S.B. 261 and is reviewing a request from business groups to halt both laws entirely. Because of this parallel regulatory and legal process, many companies are unsure whether they should invest heavily in compliance or wait for the courts to rule. S.B. 253 applies to companies with more than $1 billion in annual revenue and requires reporting of Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, which include direct emissions, energy-related emissions, and emissions from supply chains. S.B. 261 applies to companies with more than $500 million in revenue and requires disclosure of climate-related financial risks and mitigation strategies. Attorneys say collecting this data could be difficult, especially for companies that only have limited operations in California or that must gather information from suppliers and partners in other regions. The reporting requirements could also affect businesses outside California because companies subject to the law may need emissions data from their partners and vendors. Regulators have begun setting deadlines for initial reporting, including an August deadline for certain emissions data, but many details about how the system will function remain unresolved. Meanwhile, business groups including the U.S. Chamber of Commerce argue the laws violate the First Amendment by forcing companies to speak on controversial issues related to climate change. With rulemaking still underway and litigation ongoing, companies are left trying to prepare for possible compliance while waiting to see whether the courts ultimately uphold or invalidate the laws. Companies In Limbo Over Calif. Climate Disclosure Laws’ Fate - Law360 In a major California bellwether trial over claims that social media harms children’s mental health, the plaintiff has finished presenting her case against Instagram and YouTube. The plaintiff, a 20-year-old referred to as Kaley G.M. to protect her identity, alleges that features on the platforms contributed to anxiety, depression, and body dysmorphia she experienced as a minor. Her attorney, Mark Lanier, chose not to call Kaley’s mother to testify live, instead presenting a brief portion of her deposition to the jury. The decision appeared partly influenced by strict time limits imposed by the judge during the trial. In the deposition testimony, the mother acknowledged she had little knowledge of her daughter’s social media use and did not monitor her phone because she viewed it similarly to a household landline. Defense attorneys have argued that Kaley’s mental health problems were caused by difficulties at home rather than the platforms themselves. Evidence introduced at trial suggested the plaintiff had conflicts with her mother, including allegations of neglect, verbal abuse, and limited supervision of internet use. The defense also pointed to bullying and other personal issues as alternative explanations for the plaintiff’s struggles. Meanwhile, a former Meta employee testified that internal company information suggested Instagram could be addictive and harmful to young users, although defense lawyers challenged his credibility and the extent of his involvement with safety issues. The plaintiff’s final expert witness discussed ways social media companies could design safer platforms for children. After the plaintiff rested, Meta began presenting its defense with testimony from school administrators connected to the plaintiff. The case is the first bellwether trial among thousands of similar lawsuits consolidated in California, with outcomes potentially shaping settlement negotiations and future trials. TikTok and Snap previously settled with this plaintiff, but the broader litigation against social media companies continues. Meta, Google Begin Defense As Mental Harm Plaintiff Rests - Law360 UK The U.S. Customs and Border Protection (CBP) agency told a federal trade court that it expects to create a system within about 45 days to process refunds for tariffs that were previously imposed under President Donald Trump and later ruled unconstitutional by the U.S. Supreme Court. The tariffs generated roughly $166 billion in payments from about 330,000 importers, and the Court’s decision did not specify how those funds should be returned. As a result, government lawyers and a judge from the U.S. Court of International Trade are working to establish a practical process for issuing refunds. Under the proposed plan, importers would submit a declaration through CBP’s electronic system detailing the tariffs they paid. The agency would verify the information and then issue a single payment from the Treasury Department to each importer, including interest. Officials say this approach would avoid forcing businesses to file individual lawsuits to recover their money. The judge overseeing the matter recently modified an earlier order that required immediate refunds, acknowledging that the agency needs time to build a workable system. CBP explained that its current administrative system cannot automatically process refunds on the massive scale

    10 min
  5. Legal News for Fri 3/4 - ChatGPT, Esq., 24 States Challenge New Tariffs, Refunding $175b and Refugee Bans Upheld

    6 DAYS AGO

    Legal News for Fri 3/4 - ChatGPT, Esq., 24 States Challenge New Tariffs, Refunding $175b and Refugee Bans Upheld

    This Day in Legal History: FDR Declares Bank Holiday On March 6, 1933, just two days after taking office, President Franklin D. Roosevelt declared a nationwide bank holiday in response to the escalating financial panic of the Great Depression. At the time, banks across the country were collapsing as frightened depositors rushed to withdraw their savings. The closures threatened to completely destabilize the American financial system. Roosevelt used emergency executive authority to temporarily shut down the nation’s banks in order to stop the flood of withdrawals. The pause allowed federal officials to inspect financial institutions and determine which were stable enough to reopen. Although the order began as an executive action, Congress quickly moved to support the president’s efforts. On March 9, lawmakers passed the Emergency Banking Act, which retroactively approved Roosevelt’s bank holiday and expanded federal oversight of banks. The law allowed only financially sound banks to resume operations and provided additional confidence to depositors. In the days that followed, many banks reopened under stricter supervision, and public trust gradually returned to the banking system. Roosevelt reinforced this confidence through his first “fireside chat,” explaining the reforms directly to the American public. Legal challenges later tested the government’s authority to take such sweeping action during a crisis. Courts ultimately upheld many emergency financial measures adopted during the early New Deal period. These rulings helped establish the principle that the federal government has broader power to respond to national economic emergencies. The bank holiday of March 6, 1933, therefore became an important early example of how executive initiative and congressional support can combine to address a national crisis. An insurer has filed a lawsuit accusing OpenAI of engaging in the unauthorized practice of law after its AI chatbot allegedly provided faulty legal assistance to a disability benefits recipient. According to the complaint, Nippon Life Insurance Co. of America had settled a long-term disability dispute with Graciela Dela Torre in January 2024. About a year later, she questioned the agreement and asked her attorney about reopening the case due to alleged documentation problems. When her lawyer explained that the settlement was final, Dela Torre consulted ChatGPT, asking whether her attorney had dismissed her concerns. The insurer claims the chatbot suggested that her attorney had invalidated her feelings and deflected responsibility. After receiving that response, Dela Torre fired her lawyer and attempted to reopen the case on her own. The lawsuit alleges that ChatGPT generated legal arguments asserting that her former counsel had pressured her into signing a blank signature page. She filed a motion based on those arguments, which Nippon says violated the settlement agreement releasing the company from future claims. According to the complaint, Dela Torre then submitted numerous additional filings drafted with the chatbot’s help, including more than twenty motions and other court documents. The court rejected her attempt to reopen the case and upheld the settlement as valid. Despite that ruling, she allegedly used ChatGPT again to prepare a new lawsuit asserting claims such as fraudulent misrepresentation and interference with disability benefits. Nippon says she has filed dozens of motions that serve no legitimate legal purpose, forcing the company to spend significant time responding. The insurer is now seeking damages and an injunction preventing OpenAI from providing legal assistance to Dela Torre, while OpenAI has dismissed the claims as meritless. OpenAI Practices Law Without A License, Insurer Alleges - Law360 A coalition of 24 states has filed a lawsuit challenging new global tariffs imposed by President Donald Trump. The case was brought in the U.S. Court of International Trade and seeks to block tariffs introduced on February 20 under Section 122 of the Trade Act of 1974. The states argue the administration rushed to impose the tariffs only hours after the U.S. Supreme Court invalidated an earlier set of trade measures that had been issued under a different statute. According to the complaint, the new tariffs were an attempt to revive similar trade restrictions using a separate legal authority. The policy first imposed a 10% tariff on imports worldwide and was raised to the statute’s maximum 15% the following day. The administration justified the move by claiming it was necessary to address serious U.S. balance-of-payments deficits. However, the states argue that such deficits do not actually exist and that the government selectively relied on negative data while ignoring overall positive financial inflows. They claim this misuse of the statute mirrors the earlier tariffs that the Supreme Court struck down. The lawsuit also argues that the tariffs violate the Constitution because the authority to impose taxes and duties belongs to Congress. The Supreme Court recently emphasized this principle when it ruled against the administration’s earlier tariff policy. According to the states, Section 122 was originally enacted to address problems tied to an outdated international currency system that no longer exists today. Because the statutory conditions cannot be met, the coalition argues the president’s tariffs are unlawful. The states are asking the court to invalidate the measures before they remain in effect through the summer. Two Dozen States Sue Trump to Halt New Global Tariffs - Law360 Twenty-four US states file lawsuit to stop Trump’s latest global tariffs | Reuters A federal trade judge is meeting privately with government lawyers to determine how the United States will refund billions of dollars in tariffs that courts recently ruled unconstitutional. Judge Richard Eaton of the U.S. Court of International Trade scheduled the closed-door meeting as a settlement conference to discuss a practical process for returning money to importers. The tariffs at issue were a major part of President Donald Trump’s trade policy but were struck down by the U.S. Supreme Court in February for exceeding presidential authority. Because the Court did not provide guidance on how refunds should be handled, lower courts are now working to establish a workable procedure. The scale of the refunds could be enormous, potentially reaching $175 billion and affecting more than 300,000 importers. Government attorneys have warned that processing the reimbursements will be unusually complex because it may involve manual review of tens of millions of tariff payments. Many of the affected importers are small businesses concerned about the cost and administrative burden of seeking repayment. Judge Eaton has indicated that he wants a system that avoids forcing companies to file individual lawsuits. The issue arose in a case filed by Atmus Filtration Inc., which claims it paid $11 million in unlawful tariffs. Eaton recently ordered U.S. Customs and Border Protection to begin using its internal processes to refund tariffs not only to Atmus but potentially to all affected importers. The upcoming conference is expected to focus on how the agency can efficiently review roughly 79 million shipments and distribute refunds. Attorneys involved in related cases believe the meeting could lead to a standardized process that allows most businesses to receive reimbursements without extended litigation. Exclusive: US judge to meet parties on Trump-tariff refunds in closed-door ‘settlement conference’ | Reuters A federal appeals court has ruled that President Donald Trump has the authority to suspend refugee admissions to the United States, reversing most of a lower court decision that had blocked the policy. The ruling came from a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit. The judges concluded that federal law gives the president broad power to restrict the entry of foreign nationals when he believes it serves national interests. As a result, the panel allowed Trump’s halt of the U.S. Refugee Admissions Program to remain in place. The policy was introduced shortly after Trump took office in 2025 and paused the admission of refugees while the administration reviewed whether the program ensured proper assimilation. Refugees, their family members, and several resettlement organizations filed a class action lawsuit challenging the move. A federal judge in Seattle had previously issued injunctions blocking the suspension and related actions. However, the Ninth Circuit determined that most of those rulings exceeded the district court’s authority. Writing for the panel, Judge Jay Bybee acknowledged that the decision could have serious real-world consequences for thousands of refugees who had already completed years of vetting and were awaiting resettlement. Despite those concerns, the court emphasized that Congress granted the president sweeping authority over immigration entry decisions. The judges said policy judgments about refugee admissions belong to the executive branch rather than the courts. The panel did leave some portions of the lower court’s order in place. It upheld injunctions that prevent the government from cutting services to refugees who have already been admitted to the United States and from terminating certain agreements with refugee support organizations. One judge dissented in part, arguing that the district court’s injunctions should have been entirely overturned. Trump can suspend refugee admissions, US appeals court rules | 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

    9 min
  6. 5 MAR

    Legal News for Thurs 3/5 - SCOTUS Allows NJ Transit Injury Suits, State Crackdowns on Algorithmic Pricing, Federal Workforce Down 12% Since 2024

    This Day in Legal History: Boston Massacre On March 5, 1770, a confrontation between British soldiers and American colonists in Boston turned deadly in what became known as the Boston Massacre. Tensions had been rising for months as British troops occupied the city to enforce parliamentary taxes that many colonists believed were unjust. On that evening, a crowd gathered near the Boston Custom House and began taunting a British sentry, shouting insults and throwing snowballs and debris. As the situation escalated, additional soldiers arrived to support the guard, but the crowd continued to press in. In the confusion and fear of the moment, the soldiers fired into the crowd. Five colonists were killed and several others were wounded, including Crispus Attucks, who is often remembered as the first casualty of the American Revolution. The incident quickly became a flashpoint in colonial politics, with patriot leaders using it as evidence of British tyranny. Yet the legal response that followed was notable for its commitment to due process despite intense public anger. British Captain Thomas Preston and eight soldiers were arrested and charged with murder. Future president John Adams agreed to defend the soldiers, arguing that the rule of law required even deeply unpopular defendants to receive a fair trial. During the proceedings, Adams emphasized the evidence suggesting the soldiers had been surrounded and threatened by a hostile crowd. The jury ultimately acquitted six soldiers and convicted two of the lesser charge of manslaughter. The trials demonstrated an early American commitment to the principle that legal judgments should be guided by evidence rather than public pressure, even during moments of political upheaval. The U.S. Supreme Court ruled that New Jersey cannot use sovereign immunity to protect New Jersey Transit from personal injury lawsuits filed by riders injured outside the state. The unanimous opinion, written by Sonia Sotomayor, resolved a conflict between the Pennsylvania Supreme Court and the New York Court of Appeals over whether the transit agency qualifies as an “arm of the state.” The dispute arose from two lawsuits filed by passengers injured in NJ Transit bus crashes that occurred outside New Jersey. The justices focused heavily on how the agency was structured. During oral argument, several members of the Court questioned why New Jersey created NJ Transit as a corporation with the ability to sue and be sued while also disclaiming responsibility for its debts. Some justices suggested those design choices undermined the state’s argument that the agency should receive sovereign immunity protections. New Jersey’s lawyers argued that the agency’s independence is largely formal and that the governor maintains significant control over the system. They also warned that allowing such lawsuits could subject the state to litigation in other states’ courts. However, the Court appeared unconvinced by those arguments and emphasized that the plaintiffs were private individuals seeking compensation rather than other states trying to regulate New Jersey. The ruling ultimately sided with the New York court’s earlier decision and overturned the Pennsylvania ruling, allowing the personal injury lawsuits to proceed. Supreme Court Rejects NJ Immunity Defense In NY, Pa. Suits Regulators are increasingly focusing on dynamic or algorithmic pricing, a practice that uses personal data—such as location, browsing history, and purchasing behavior—to set individualized prices for consumers. The approach has raised concerns among privacy and consumer protection regulators because it relies on large amounts of personal data and may affect price transparency. Although grocery pricing has drawn the most attention, the practice is also used in industries like travel, financial services, and online retail. The Federal Trade Commission has been studying the issue but has not clearly stated whether dynamic pricing violates any specific federal law. In 2024, the agency issued subpoenas to companies that develop pricing algorithms to learn how they collect consumer data, train their systems, and influence the prices consumers see. A preliminary research summary released in 2025 confirmed that these tools rely heavily on consumer data and can adjust prices in real time, but it did not identify specific legal violations. While the federal approach remains uncertain, state regulators are taking more direct action. The office of Rob Bonta, the California attorney general, launched an investigative sweep in January 2026 to examine how companies use consumer data to personalize prices. Investigators sent letters to retailers, grocery stores, and hotels requesting information about pricing algorithms, data sources, and disclosures to consumers. Meanwhile, the New York Attorney General’s Office is investigating companies’ compliance with the state’s new Algorithmic Pricing Disclosure Act. The law requires businesses to clearly inform consumers when prices are generated using algorithms that rely on their personal data. Regulators have warned that disclosures hidden behind hyperlinks may not satisfy the law’s requirement that notices be clear and conspicuous. Other states are considering similar legislation, including proposals targeting surveillance-based pricing or banning dynamic pricing in certain industries. As scrutiny increases, companies that use personalized pricing tools are being urged to review their data practices, pricing disclosures, and compliance with emerging state privacy laws. Amidst uncertainty from FTC, states zero in on dynamic and algorithmic pricing | Reuters The U.S. civilian federal workforce decreased by about 12% between September 2024 and January 2026, according to newly released government data. The reductions reflect efforts by Donald Trump’s administration to shrink federal agencies, a policy he promoted as a way to reduce government size and increase efficiency. Several major departments experienced significant staffing losses. The U.S. Department of the Treasury saw its workforce drop by roughly 24%, while the U.S. Department of Health and Human Services lost about 20% of its employees during the same period. These reductions represent some of the largest declines across federal agencies. One notable exception was the U.S. Department of Homeland Security, which slightly increased its workforce by less than 1%. The agency’s growth reflects the administration’s continued focus on immigration enforcement and deportation efforts. Overall, the data indicates that the administration’s push to cut federal staffing has had a broad impact across much of the government, significantly reducing the number of civilian employees in many departments. US government workforce shrunk by 12% since September 2024 | 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

    6 min
  7. 4 MAR

    Legal News for Weds 3/4 - Epstein Testimony Request for Gates, DOJ Reversal in EO Law Firm Litigation, Abbott's Premature Infant Formula Trial and CA's SALT Workaround

    This Day in Legal History: Lincoln’s Second Inaugural On March 4, 1865, Abraham Lincoln delivered his Second Inaugural Address as he began his second term as President of the United States. The speech came during the final weeks of the Civil War, when Union victory was increasingly likely but the country remained deeply divided. Instead of celebrating the nearing end of the war, Lincoln used the moment to reflect on the deeper causes of the conflict. He identified slavery as the central issue that had brought the nation into war, describing it as both a legal institution and a moral injustice embedded in American law for generations. Lincoln noted that both the North and South had participated in a system that allowed slavery to endure within the nation’s constitutional framework. In one of the address’s most striking passages, Lincoln suggested that the war itself might be understood as divine judgment for the nation’s long tolerance of slavery. He observed that slavery had existed in the Americas for centuries and reflected on the possibility that the immense suffering of the war was a form of punishment for that history. Lincoln famously stated that if divine providence willed that the war continue “until every drop of blood drawn with the lash shall be paid by another drawn with the sword,” then such judgment might still be just. This reflection framed the war not simply as a political conflict but as a reckoning with a deeply rooted legal and moral wrong. Lincoln’s remarks also pointed toward the constitutional transformation already underway through the pending Thirteenth Amendment to the United States Constitution. Congress had passed the amendment earlier in 1865, and it awaited ratification by the states. If adopted, it would permanently abolish slavery across the United States and fundamentally alter the constitutional order. Lincoln’s speech emphasized that the war’s conclusion would also mark a legal turning point, ending a constitutional system that had protected slavery. At the same time, he called for reconciliation in rebuilding the nation, urging the country to move forward “with malice toward none.” Only months later, the Civil War ended and the Thirteenth Amendment was ratified in December 1865, permanently outlawing slavery in the United States. The House Oversight Committee has asked several high-profile figures to testify about their connections to Jeffrey Epstein as part of a broader investigation into how the federal government handled the case. Those requested to appear include departing Goldman Sachs Chief Legal Officer Kathryn Ruemmler, Microsoft co-founder Bill Gates, and Apollo Global Management co-founder Leon Black. The request to Ruemmler comes shortly after she announced plans to step down from Goldman Sachs and after Justice Department records brought renewed attention to her past communications with Epstein. Emails show that she sought career advice from him while exploring a move from Latham & Watkins to Facebook in 2018 and referred to him in messages as “Uncle Jeffrey.” The correspondence also mentioned gifts she received from him. Reports previously revealed that the two had numerous meetings during the 2010s, years after Epstein had served a prison sentence related to prostitution offenses involving minors. The committee’s inquiry focuses on whether Epstein and his associate Ghislaine Maxwell used relationships with influential individuals to gain protection or influence while operating their sex-trafficking scheme. Lawmakers are also examining the federal government’s handling of the investigation and the circumstances surrounding Epstein’s death in a Manhattan federal jail in 2019. Along with Ruemmler, Gates and Black received similar requests for testimony. Gates has indicated he is willing to cooperate and answer questions from the committee. Black, meanwhile, is also facing a proposed class action accusing Apollo and its leadership of misleading investors about their connections to Epstein, allegations the firm has publicly denied. Other individuals asked to appear include Epstein’s former assistants, political adviser Doug Band, and Gateway co-founder Ted Waitt. The committee has already interviewed several prominent figures, including former President Bill Clinton and former Secretary of State Hillary Clinton, as it continues reviewing the scope of Epstein’s network and the government’s response to his crimes. Goldman’s Departing CLO, Gates Asked To Testify On Epstein - Law360 UK The Justice Department quickly reversed course in an ongoing legal fight over executive orders issued by President Donald Trump targeting several prominent law firms. Late Monday, government lawyers told a federal appeals court they planned to drop their appeal after multiple federal judges ruled the orders unconstitutional. But the next day the department asked the court for permission to withdraw that dismissal request and continue defending the orders. The executive orders targeted firms including Perkins Coie, WilmerHale, Susman Godfrey, and Jenner & Block. The measures sought to restrict the firms’ security clearances, government contracts, and access to federal buildings, citing concerns about their clients and hiring practices. The firms challenged the orders in court, arguing they were unconstitutional retaliation against legal advocates. Federal judges consistently sided with the firms, with one ruling describing the order against Perkins Coie as an unprecedented attack on the legal system. After those rulings, the Justice Department initially appeared ready to abandon the appeal. Its sudden reversal, however, would allow the administration to continue fighting the cases before the U.S. Court of Appeals for the D.C. Circuit. The law firms criticized the shift, saying the government offered no explanation for changing its position so quickly. They reiterated their commitment to challenging what they view as an unconstitutional attempt to punish law firms for representing disfavored clients. Civil liberties advocates echoed that criticism, arguing the orders represent a misuse of presidential power. The litigation highlights a broader dispute over the limits of executive authority and the independence of the legal profession. As the appeals process continues, the courts will ultimately decide whether the executive orders can survive constitutional scrutiny. BREAKING: DOJ Nixes Plan To Drop Law Firm EO Appeals In About-Face - Law360 In quick reversal, DOJ seeks to continue Trump’s battle with law firms A trial beginning in Chicago will examine claims that baby formula made by Abbott Laboratories caused premature infants to develop a serious and potentially deadly intestinal condition known as necrotizing enterocolitis (NEC). The case consolidates lawsuits from four families whose premature children were born in Chicago-area hospitals between 2012 and 2019 and later developed the disease. Although the infants survived, the lawsuits say several required surgery and continue to face long-term health complications. The case is part of a much larger wave of litigation against Abbott and Mead Johnson, the manufacturer of Enfamil. Nearly 1,000 lawsuits have been filed across the country alleging that the companies failed to warn doctors that cow’s milk-based formulas used in hospitals may increase the risk of NEC in premature infants. Many of those cases are consolidated in federal court in Illinois, while others are pending in state courts. Abbott denies that its formulas cause the disease and maintains that the products are medically necessary when mothers cannot produce enough breast milk. The company and other researchers point to evidence suggesting that the higher risk of NEC is linked to the absence of breast milk rather than exposure to formula itself. Previous trials involving similar claims have produced mixed results. Some juries have awarded large verdicts to families, including multimillion-dollar judgments against both Abbott and Mead Johnson, though those decisions are currently under appeal. Other cases have resulted in defense wins or retrials, and several potential bellwether cases in federal court have been dismissed. The Chicago trial, which begins with jury selection, is expected to last several weeks and could influence how the remaining lawsuits move forward. With hundreds of similar claims still pending, the outcome may play an important role in shaping the broader litigation over infant formula and NEC. Abbott set to face trial over claims premature infant formula caused deadly disease | Reuters In this week’s column, I look at a new California proposal that attempts to sidestep the federal cap on state and local tax (SALT) deductions by reclassifying vehicle sales taxes as licensing fees. The idea is simple: if the charge is treated as a property-style fee instead of a sales tax, it could fall into a category that allows taxpayers to make greater use of their federal SALT deduction. Supporters frame the proposal as middle-class tax relief and a way to reduce the amount of federal revenue flowing out of California. But while the policy is clever, its practical benefits would be limited and uneven. The proposal follows a familiar strategy used since the 2017 tax law capped SALT deductions: when one type of tax becomes less deductible, lawmakers try to redesign the tax structure so the revenue flows through a category that remains deductible. California’s approach focuses on vehicle purchases, where sales taxes are currently difficult to deduct for many residents. By redefining those charges as licensing fees, lawmakers hope taxpayers could claim them alongside property taxes under the federal deduction cap. In practice, though, most lower-income taxpayers wouldn’t benefit at all. Many households take the standard deduction rather than itemizing, especially after recent tax reforms increased its size. For those

    10 min
  8. 3 MAR

    Legal News for Tues 3/3 - SCOTUS Weighing Gun Bans on Marijuana Users, SEC Proxy Rule, Rejected Appeal Over AI-Created Art

    This Day in Legal History: Tenth Circuit Act On March 3, 1863, Congress passed the Judiciary Act of 1863, quietly reshaping the structure of the United States Supreme Court in the middle of the Civil War. The Act increased the number of Supreme Court justices from nine to ten. This expansion created an additional seat that President Abraham Lincoln could fill at a critical moment in the nation’s history. Lincoln soon appointed Justice Stephen J. Field to occupy the new position. The timing of the law was not accidental. The country was deeply divided, and major constitutional questions about executive power, wartime authority, and civil liberties were moving through the courts. By enlarging the Court, Congress ensured that Lincoln would have greater influence over the judiciary’s direction. Although altering the size of the Court was constitutional, it carried clear political implications. The Constitution does not fix the number of Supreme Court justices. Instead, Congress has authority to determine the Court’s size through legislation. This structural flexibility has allowed lawmakers to adjust the Court in response to political and practical concerns. The Judiciary Act of 1863 stands as one example of how institutional design can intersect with national crisis. The legal element worth highlighting is Congress’s constitutional power to set the size of the Supreme Court. Article III establishes the Court but leaves its structure largely to Congress. This separation of powers detail is significant because it shows that the judiciary’s composition is not self-defining. I chose this element because it explains how a simple statute, passed during wartime, could alter the balance of influence within the highest court in the country without amending the Constitution. The U.S. Supreme Court heard arguments over whether a federal law prohibiting illegal drug users from possessing firearms violates the Second Amendment. The case arose after federal prosecutors charged Ali Hemani, a Texas resident who admitted to regular marijuana use, with unlawful gun possession under the Gun Control Act. A lower court dismissed the charge, and the 5th U.S. Circuit Court of Appeals upheld that decision, concluding there was no historical basis for disarming a sober person who was not under the influence at the time of possession. The Justice Department, under President Donald Trump, appealed to the Supreme Court. The administration argued that the restriction is comparable to 19th-century laws that allowed authorities to disarm habitual drunkards. Hemani, supported by the American Civil Liberties Union, countered that regular marijuana users are not historically analogous to those groups and that the statute is too vague because it does not clearly define who qualifies as an “unlawful user.” The dispute comes as the Court continues to apply the history-focused test it announced in New York State Rifle & Pistol Association v. Bruen, which requires modern gun regulations to align with the nation’s historical tradition of firearm regulation. The case also echoes the 2024 conviction of Hunter Biden under the same statute, though he was later pardoned. With a 6–3 conservative majority, the Court has recently taken an expansive view of gun rights and is weighing multiple challenges to firearm regulations. US Supreme Court scrutinizes gun ownership ban for illegal drug users | Reuters A recent policy shift by the U.S. Securities and Exchange Commission has given public companies greater control over which shareholder proposals appear on annual meeting ballots. In November, the agency stopped its long-standing practice of having staff formally review and approve companies’ decisions to exclude certain proposals. Instead, corporate executives now have more discretion to determine what goes into proxy statements. Investor advocates say the change has created confusion and weakened shareholder rights, especially in disputes involving environmental, social, and governance issues. The new approach has already led to lawsuits against companies including PepsiCo, AT&T, and Axon Enterprise. In several instances, companies initially declined to include shareholder proposals but reversed course after being sued. For example, PepsiCo agreed to allow a vote on an animal-welfare proposal shortly after litigation was filed. AT&T similarly settled a lawsuit brought by New York City pension funds by permitting a vote on workforce diversity disclosures. Other disputes remain pending, including a case against Axon over a proposal related to political contributions. Activists argue that without clearer guidance from regulators, shareholders must turn to the courts to protect their ability to file resolutions. Despite concerns that the rule change would dramatically increase exclusions, early data suggests companies have blocked proposals at roughly the same rate as in prior years. Trump’s SEC gave companies more power over investors. Lawsuits pushed them back | Reuters The U.S. Supreme Court declined to hear an appeal from computer scientist Stephen Thaler, leaving intact a lower court ruling that works created solely by artificial intelligence are not eligible for copyright protection. The decision lets stand a ruling from the U.S. Court of Appeals for the D.C. Circuit that agreed with the U.S. Copyright Office that only human authors can register copyrighted works. Thaler sought protection for a two-dimensional image titled “A Recent Entrance to Paradise,” which was generated by his AI system known as the Creativity Machine. He argued that the Copyright Act does not explicitly require human authorship and that the agency improperly read that limitation into the statute. The D.C. Circuit rejected that claim, reasoning that multiple provisions of the law assume an author is a human being, particularly sections dealing with lifespan and inheritance rights. Thaler also contended that, as the system’s owner and programmer, he should qualify for copyright under work-for-hire principles or property law concepts. The government responded that a valid work-for-hire arrangement requires a written agreement and cannot apply to a nonhuman creator. This dispute echoes Thaler’s earlier, unsuccessful effort to secure patent rights for an AI-generated invention, which the Supreme Court also declined to review in 2023. Justices Reject Appeal Over Copyright For AI-Created Art - Law360 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

    6 min

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Minimum Competence is your daily companion for legal news, designed to bring you up to speed on the day’s major legal stories during your commute home. Each episode is short, clear, and informative—just enough to make you minimally competent on the key developments in law, policy, and regulation. Whether you’re a lawyer, law student, journalist, or just legal-curious, you’ll get a smart summary without the fluff. A full transcript of each episode is available via the companion newsletter at www.minimumcomp.com. www.minimumcomp.com

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