Daily Dicta: Shutdown Woes; Kirkland Wins One for Facebook (But Pity the Plaintiffs' Counsel)
What the shutdown could mean for litigators; a brutal opinion by Judge Garaufis in Facebook case.
January 22, 2018 at 12:22 PM
9 minute read
On Sunday night, the U.S. Senate failed to reach a deal. The government remains closed, and for me, it's personal—my husband is among the hundreds of thousands of federal workers who will be furloughed. And when you've got a mortgage to pay, college tuition for your son, a dog that needs to go to the vet, an oven that needs repairing … let's just say it's a problem to suddenly lose a paycheck.
Depending on how long the lapse in appropriations lasts, it's going to hit the litigation community too.
My colleague Cogan Schneier reported that the federal courts have enough money to stay open until Feb. 9, funded by a mix of revenues from fees and long-term appropriations.
But if the 2013 shutdown is any guide, the impact on litigation will be widespread nonetheless. Almost all of the Justice Department's civil cases will be stayed. A few may proceed—last time, civil forfeiture cases continued, as did a major antitrust case, the $11 billion merger of American Airlines and US Airways, which was headed for trial the following month.
Likewise, U.S. District Judge Richard Leon, who is overseeing the pending AT&T/ Time Warner merger challenge, has already indicated he would not be inclined to stay the case during the shutdown.
The immigration courts will be closed, with the exception of most cases involving people who are being held in detention.
Private practice lawyers appointed by the courts to represent indigent criminal defendants won't get paid. Payments from the Judgment Fund will halt.
Agencies such as the International Trade Commission, the Federal Trade Commission, the Commodities Future Trading Commission and the Equal Employment Opportunity Commission will be at a near-standstill.
The U.S. Securities and Exchange Commission managed to stay open in 2013—unlike most other agencies, its appropriations language provides that its funds “remain available until expended.” But the 2013 shutdown was in the fall, when the SEC still had leftover money from the prior fiscal year. This time, it's less clear: The SEC on its website just says it will remain open and fully staffed “for a limited number of days.”
The Consumer Financial Protection Bureau, which is funded by fees from the Federal Reserve, will presumably be unaffected by the shutdown. Besides, its new director, Mick Mulvaney, last week asked for $0 to cover its second quarter expenses because the agency still has $177 million in a reserve fund.
Yes, essential functions will continue—air traffic will be controlled, prisons will be guarded, borders will be patrolled. But the government (that would be us, the taxpayers) can expect to face liability for forcing these “essential” workers to work without pay during the shutdown, even if they eventually get paid when the government reopens.
After the 2013, shutdown, the feds were hit with a class action for violating the Fair Labor Standards Act. Last year, U.S. Court of Federal Claims Judge Patricia Campbell-Smith ruled that the government owed damages to the 25,000 federal workers who opted into the suit and worked during the shutdown.
In short, this is a frustrating, inefficient and irrational way to govern. I just hope it ends soon—for myself, my family, my country.
See also: Government Shutdown? SCOTUS Is Unfazed.
|
After Rocky Start, Kirkland Lands on Judge's Good Side with Win for Facebook (But Pity the Plaintiff's Counsel)
Lest there be any doubt, Senior U.S. District Judge Nicholas Garaufis is not to be trifled with.
As in, this judge is sort of terrifying.
First, the Brooklyn-based Garaufis in 2016 blasted Kirkland & Ellis for sending junior associate Aulden Burcher-DuPont solo to a pre-motion conference on behalf of Facebook, which was being sued for supporting terrorist organizations by letting them use its platform.
“You tell your folks back at Kirkland & Ellis that I don't much like the idea that they think so little of this court that they didn't send a partner. … I think it is outrageous and irresponsible and insulting,” Garaufis told poor Burcher-DuPont, according to a transcript of the proceedings. “I've been a lawyer for 41 years and I've been a judge for 16 years and I'm not having this discussion with you.”
Last week, the lawyer for one set of plaintiffs suing Facebook, Robert Tolchin of The Berkman Law Office, suffered his own humiliation at the hands of Garaufis—albeit in a more conventional way. That is, the judge ripped his argument to shreds.
In May of 2017, Garaufis dismissed Tolchin's suit against Facebook by U.S. citizen victims of past attacks by the Palestinian terrorist organization Hamas. The suit alleged that Facebook “knowingly provided material support and resources” to Palestinian terrorists who have used the social media site to incite, organize and dispatch would-be killers.
In dismissing the case, Garaufis found Facebook was shielded by the Communications Decency Act. However, he tossed the complaint without prejudice.
So Tolchin tried again—not a shocker, considering his clients claimed $3 billion in damages.
Garaufis was having none of it. In his Jan. 18 opinion, he spent 25 pages tearing down every attempt by Tolchin to persuade him to alter his judgment or permit a second amended complaint.
A sampling:
“Plaintiffs' arguments on this point do not come close to meriting reconsideration.”
“Plaintiffs identify no contrary authority that the court overlooked or misapplied.”
“Plaintiffs plainly misread the court's opinion.”
“Plaintiffs' contention is completely disingenuous.”
“Plaintiffs' contention is flatly refuted by Facebook's briefing on the original motion to dismiss.”
“For Plaintiffs to now turn around and argue that its allegations are largely about content that Facebook itself created borders on mendacious.”
“The court sees no reason to permit relitigation of issues already decided simply because Plaintiffs are dissatisfied with the court's prior decision.”
“Even if Plaintiffs' argument is not waived, however, it is meritless.”
“[T]he argument is unsupported in law or logic.”
“Plaintiffs' suggestion appears to be fundamentally at odds with supremacy of federal law over state law.”
“Plaintiffs are merely attempting to rehash arguments that the court has already considered and rejected.”
“The court sees no reason to reconsider its previous decision dismissing the first amended complaint.”
There are now three women on the executive committee—up from zero before October 2017—and a mix of lawyers who have relationships with some of Boies Schiller's most important clients.
All the cool kids are on Microsoft's side.
So this guy—who has hypertension, diabetes, a stroke, and hurt his back at work six weeks before—gets $734,563 for back and neck pain after a teenage girl on her way home from Christian school taps the bumper of his Range Rover in heavy traffic. WHO ARE THESE LAWYERS?
“This is a case of a young lawyer having no idea what he is doing and causing tremendous harm to clients, who went to him looking for legal advice and had their careers destroyed as a result of his bad advice.”
These appointments have been launching pads for numerous Supreme Court advocates—including Chief Justice John Roberts himself, as well as Maureen Mahoney, now a retired partner at Latham & Watkins.
Employees are not allowed to speak about their work with anyone, potentially even co-workers who aren't explicitly authorized to know that information. Wow. Who knew Snapchat and the CIA had so much in common?
The first case ended after a juror, who was excused from deliberations due to vacation plans, told the media that the panel was deadlocked.
“Everyone involved in this case agrees we need a global solution and, as Judge Polster has said, people are dying every day. We need to do something now.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllShould It Be Left to the Plaintiffs Bar to Enforce Judicial Privacy Laws?
7 minute readA Reporter and a Mayor: Behind the Scenes During the Eric Adams Indictment News Cycle
Of Predictive Analytics and Robots: A First-Year Federal Judge's Thoughts on AI
Trending Stories
- 1'It Refreshes Me': King & Spalding Privacy Leader Doubles as Equestrian Champ
- 2Class Action Filed Against Houston Health Savings Account Firm for Allegedly Confiscating Client Funds
- 3These 2 Lawyers Just Became Florida Judges
- 4'Disease-Causing Bacteria': Colgate and Tom’s of Maine Face Toothpaste Class Action
- 5Trump's SEC Overhaul: What It Means for Big Law Capital Markets, Crypto Work
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250