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Good morning. The COVID pandemic emergency may be over, but the court fights rage on. Plus, the Yale Law-educated founder of the Oath Keepers is sentenced after his seditious conspiracy conviction, and JPMorgan Chase levels new allegations against the U.S. Virgin Islands in the fight over Jeffrey Epstein. It’s Memorial Day weekend — we’ll see you on Tuesday.
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COVID litigation will last for years
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A U.S. appeals court ruling that revived a challenge to a COVID-19 vaccine mandate for healthcare workers in Maine shows that although the pandemic might be over, litigation over the virus is anything but. The Boston-based 1st Circuit said a judge should not have thrown out the lawsuit, our colleague Daniel Wiessner reports.
Myriad issues remain unresolved, guaranteeing further litigation for years. Last month, a 9th Circuit panel said the Biden administration had the power to require employees of federal contractors to receive COVID-19 vaccinations. That decision created a split with three other appeals courts that have said Biden likely exceeded his authority.
It’s still uncertain even how much liability employers will face, if any, for COVID infections that their workers take home from their jobs. At a hearing this month, the California Supreme Court expressed some concern that allowing employers to be sued in such circumstances would unleash “an avalanche of litigation” against businesses.
Businesses are fighting over insurance coverage and real estate lease agreements, drugmakers are locked in patent fights, students are suing over disruptions, and there’s an open question whether a U.S. judge will vacate her order against Biden’s mask mandate for travel. Lawyers for the plaintiffs in that case said dismissing the case “would give CDC the ability to do this — or something like it — again while evading review in this court.”
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- Bryan Cave Leighton Paisner laid off 47 business services professionals globally, becoming the latest firm to trim its employee ranks in recent months. The firm said the cuts will mainly affect secretary and administrative positions in the U.S. (Reuters)
- U.S. District Judge Joshua Wolson dismissed a Republican Pennsylvania judge’s lawsuit that accused The Daily Beast of defaming her for an article headline that stated she was “linked” to the conspiracy group QAnon. Judge Paula Patrick’s lawyer, Jim Beasley, said he disputed Wolson’s ruling and planned to appeal it. The Daily Beast and its lawyers at Ballard Spahr did not immediately respond to messages seeking comment. Patrick has denied any affiliation with the fringe group. (Reuters)
- Texas state legislators have recommended that the state’s Attorney General Ken Paxton be impeached and removed from office following a hearing where investigators detailed allegations he committed felonies to help a donor and then fired staffers who spoke out. If a majority of state House representatives approve the measure, the state Senate would have to hold a trial. Paxton has called the inquiry “illegal” and an effort to subvert the will of the voters. (Texas Tribune)
- In Michigan federal court, U.S. District Judge Shalina Kumar appointed John Yanchunis of Morgan & Morgan and Norman Siegel of Stueve Siegel Hanson as interim lead co-counsel in consolidated lawsuits brought by alleged victims of the 2021 data breach at Flagstar Bank. The bank’s report to the Michigan attorney general said the network intrusion affected more than 1.5 million customers. A team from Skadden represents the bank.
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That’s how many feet separate a plot of undeveloped land from Idaho’s Priest Lake, the centerpiece of a U.S. Supreme Court ruling and one of the largest lakes in the state. The justices’ opinion overturned a lower court’s ruling against property owners Mike and Chantell Sackett. That earlier decision had upheld the EPA’s determination that the Sacketts’ property near the lake contained wetlands protected by the Clean Water Act of 1972. The Sacketts have battled with the EPA for years over their plans to build a home on the property. The high court’s ruling was the latest to back a challenge to the scope of the EPA’s regulatory authority.
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“The taxpayer must render unto Caesar what is Caesar’s, but no more.“
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— Chief Justice John Roberts Jr, writing in a unanimous U.S. Supreme Court decision that will curb state and local governments from seizing and selling the homes of people with unpaid property taxes and keeping the proceeds beyond the amount owed. The justices ruled in favor of a 94-year-old woman who waged a battle with tax authorities in a Minnesota county. Hogan Lovells provided pro bono legal services to Hennepin County, and Neal Katyal argued for the local government against Pacific Legal Foundation’s Christina Martin. The high court’s order overturned a decision that threw out Tyler’s proposed class action.
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What to catch up on this weekend
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- U.S. District Judge Casey Rodgers in Pensacola, Florida, is holding the second of two days of mediation talks aimed at resolving nearly 260,000 lawsuits alleging that 3M military earplugs caused hearing loss. Rodgers, who said negotiations have reached a “critical juncture,” ordered 3M CEO Michael Roman to attend mediation talks so that he may “listen and engage directly with the mediators.” The mediation so far has been “encouraging,” but it requires 3M senior leadership to push ahead, Rodgers said in her order.
- Two more members of the right-wing group Oath Keepers — Kenneth Harrelson and Jessica Watkins — will appear in D.C. federal court for sentencing after being convicted at trial of obstructing an official proceeding on Jan. 6, 2021. Watkins and Harrelson were acquitted of seditious conspiracy charges. Prosecutors are seeking an 18-year prison term for Watkins and 15 years for Harrelson. “Watkins has derided the charges against her and eschewed any responsibility for her actions,” prosecutors said. The government called Harrelson “an early member of the group who held a leadership role.” Watkins and Harrelson had pleaded not guilty.
- U.S. District Judge Jed Rakoff will hear oral arguments in Manhattan over whether to certify a class of people who accuse sex offender Jeffrey Epstein of abuse in lawsuits claiming JPMorgan Chase & Co enabled Epstein’s sex trafficking. The bank also faces a lawsuit by the U.S. Virgin Islands over the sex trafficking. Meanwhile, JPMorgan is suing its former executive Jes Staley, whom it blames for dealing with Epstein and claims should be held liable for losses in the other two lawsuits.
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Court calendars are subject to last-minute docket changes.
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- Steve Bannon, a one-time adviser to Donald Trump, is set to go on trial in May 2024 on criminal charges over a push to fund the former U.S. president’s signature wall along the U.S. southern border. Bannon has pleaded not guilty to charges of money laundering, conspiracy and scheming to defraud. (Reuters)
- Motif Foodworks told a Delaware federal court that plant-based meat rival Impossible Foods improperly hired private investigators who assumed fake identities to solicit information about Motif’s products during their patent dispute. Motif said investigators who falsely claimed to represent potential partners started approaching them to obtain samples and other information about its meat substitute shortly after Impossible Foods filed a lawsuit accusing Motif of patent infringement. (Reuters)
- Bankrupt crypto lender Celsius Network chose Fahrenheit’s proposal as the winning bid to manage a new entity to be owned by its creditors, directing itself out of bankruptcy. Fahrenheit, a consortium that includes blockchain-based venture capital firm Arrington Capital, will provide the capital, management team and technology to establish and operate the new company, NewCo, Celsius said. (Reuters)
- Bank of America must face cardholder allegations that it bungled its response to unauthorized transactions on unemployment and disability benefits cards in California during the pandemic, U.S. District Judge Larry Alan Burns said. The ruling means benefits recipients can move forward with a class action claiming the bank violated state law by issuing cards to millions of Californians that lacked standard security measures. The cardholders also claim Bank of America broke federal law by failing to investigate fraud claims and freezing tens of thousands of accounts. (Reuters)
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- Jeffrey Haidet, chairman of Dentons’ U.S. branch, joined Bryan Cave Leighton Paisner as an Atlanta-based partner in the corporate and financial transactions department. (Reuters)
- Lowenstein Sandler added Melissa Wiley as a D.C.-based tax partner from Caplin & Drysdale. (Lowenstein Sandler)
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Correction: The Daily Docket’s explanation for Quote of the Day on May 25 misstated the U.S. appeals court weighing claims in an EPA case. The hearing was in the 3rd Circuit.
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