Legal News for Thurs 1/9 - DOJ Withholds Smith Trump Report, Trump Appeals to SCOTUS for Hush Money Case, Tech-Law Firm Merger and a Tax Proposal for Oil Wells
This Day in Legal History: Birth of Nixon On January 9, 1913, Richard Milhous Nixon was born in Yorba Linda, California, a man destined to leave a complicated and indelible mark on American history. Nixon is perhaps the most paradoxical of U.S. presidents—on one hand, he created the Environmental Protection Agency, championed detente with the Soviet Union, and opened diplomatic relations with China. On the other hand, the man also gave us Watergate, wiretapping, enemies lists, and enough shady political machinations to keep conspiracy theorists busy for decades. Nixon’s "greatest hits" of questionable decisions include the secret bombing of Cambodia, illegally expanding the Vietnam War while publicly claiming to wind it down, and the sabotage of peace talks to ensure his election in 1968. Let’s not forget his role in orchestrating the War on Drugs, a policy whose consequences are still felt today, particularly in communities of color. And, of course, he made liberal use of “plausible deniability,” whether it was about spying on political opponents or using government resources for personal vendettas. While Nixon may have soothed the environment by founding the EPA, he simultaneously polluted the political landscape, cementing cynicism in American politics for a generation. If you're struggling to reconcile his good deeds with his transgressions, don’t worry—you’re not alone. Historians, politicians, and everyday Americans have been wrestling with the Nixon conundrum for decades. Was he a political genius or a paranoid megalomaniac? Probably both, in addition to being a raging narcissist and, by all accounts, a deeply unpleasant man. His favorite breakfast? Cottage cheese with ketchup – or black pepper if he was feeling spicy. On this day in legal history, we remember Richard Nixon—a … man. He would have been 112 had a blood clot not cut him down as he prepared dinner in his Park Ridge, New Jersey home in 1994. The U.S. Justice Department announced that it will not publicly release Special Counsel Jack Smith's full report on Donald Trump’s handling of classified records, citing ongoing prosecutions against two Trump associates, Waltine Nauta and Carlos De Oliveira. While the report’s section addressing Trump’s alleged efforts to overturn the 2020 election will be made public, the documents-related portion will remain accessible only to specific members of Congress responsible for oversight. Attorney General Merrick Garland confirmed that Smith completed a two-volume report on Trump, with the Justice Department stating that limited disclosure would balance public interest with protecting the legal rights of Nauta and De Oliveira. U.S. District Judge Aileen Cannon temporarily blocked the release of the report upon a request by the two defendants. Previously, Trump was charged with illegally retaining classified records and obstructing government efforts to retrieve them, as well as attempting to interfere with the certification of President Joe Biden's election victory. However, the department dismissed these charges after Trump’s November election, adhering to its policy against prosecuting a sitting president. Despite these dismissals, prosecutors are seeking to revive the obstruction case against Nauta and De Oliveira, who have pleaded not guilty. The Justice Department emphasized that its actions comply with federal regulations requiring a final report from special counsel investigations. US Justice Dept will not publicly release all of special counsel report on Trump President-elect Donald Trump has petitioned the U.S. Supreme Court to halt his sentencing in a New York criminal case involving hush money payments to adult film star Stormy Daniels. In a filing made public on Wednesday, his lawyers argued that further proceedings in the Manhattan state court would harm the presidency and federal government operations, citing presidential immunity. The New York appeals court recently rejected Trump’s effort to delay sentencing, scheduled for Friday. His legal team has requested similar emergency relief from both the Supreme Court and New York’s highest court. The Supreme Court has asked prosecutors to respond by Thursday, suggesting a swift decision is likely. Trump was convicted of falsifying business records to conceal a $130,000 payment by his former attorney Michael Cohen to Daniels before the 2016 election. He denies any wrongdoing or the alleged sexual encounter with Daniels. His sentencing judge indicated Trump would likely face an unconditional discharge, leaving a judgment of guilt on record but imposing no jail time, fines, or probation. Trump’s lawyers contend the case violates principles of presidential immunity established by a Supreme Court ruling granting former presidents broad protection from prosecution for official acts. They argue this immunity applies during the transitional period between his election and inauguration. Manhattan prosecutors have vowed to respond to Trump’s request, marking the latest development in a historic case that made Trump the first U.S. president to be criminally convicted. Trump asks Supreme Court to halt sentencing in New York hush money case | Reuters ZwillGen, a law firm specializing in technology and privacy law, has expanded into artificial intelligence with the acquisition of Luminos.Law, a Washington, D.C.-based firm focused on AI and analytics risk. The merger adds six attorneys and data scientists to ZwillGen’s team, enabling the firm to offer services in AI bias and cybersecurity testing, which are increasingly in demand amid regulatory scrutiny. ZwillGen, founded in 2010, now employs over 45 attorneys across offices in Washington, New York, Chicago, and San Francisco, with a total headcount of about 125, including subsidiaries specializing in subpoenas and gaming licensing. Its high-profile clients include Airbnb, Bose, DoorDash, NBCUniversal, and The New York Times. Luminos.Law, established five years ago, spun off a separate software company, Luminos.AI, in 2024 to offer custom AI risk management software on an enterprise platform. While Luminos.AI remains independent, Andrew Burt, co-founder of Luminos.Law, will focus on the software company while serving as a legal advisor to ZwillGen’s new AI unit. Brenda Leong, also from Luminos, will lead ZwillGen’s AI division. The deal is part of a broader trend of law firm mergers in 2025, particularly among small firms, as demand for legal expertise in emerging technologies grows. Tech, AI lawyers join forces in latest US law firm merger | Reuters In my latest piece for Forbes, I talk about taxing oil wells. The United States is grappling with a crisis of orphaned and uncapped oil wells—sites with no accountable owner and no proper closure. These wells pose significant environmental and public health risks, leaking methane, a potent greenhouse gas, and contaminating groundwater. Estimates suggest there are between 310,000 and 800,000 undocumented orphan wells, with over 120,000 already identified as uncapped. Addressing this problem is critical, but the cost—ranging from tens of thousands to millions of dollars per well—is increasingly falling on taxpayers. The root of this issue lies in systemic regulatory failures and cost-shifting practices within the oil and gas industry. Older wells are often sold to smaller operators who lack the resources to maintain or cap them. When these operators go bankrupt, liabilities are abandoned. Bonding requirements meant to ensure cleanup funds are woefully inadequate, typically covering less than 2% of the actual cost. To tackle this crisis, I propose an Environmental Liability Tax (ELT) on oil and gas extraction. Levied per barrel, this tax would ensure that cleanup costs are collected upfront, placing the financial responsibility on the companies benefiting economically from the wells. Funds from the ELT could be held in state or federal trusts dedicated to plugging orphaned wells and restoring lands. The ELT could also incentivize better practices by offering tax credits to companies proactively addressing environmental risks. By taxing extraction rather than chasing bankrupt operators, the ELT would create a sustainable, enforceable funding mechanism to address this growing environmental liability. As the U.S. approaches peak oil, the time for systemic reform is now—before the cleanup bill comes due with no one left to pay. Towards An Environmental Liability Tax For Oil And Gas Wells 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