Glimpse of SCOTUS Arguments Seen in Tobacco’s Motion for Stay of Mandate
October 13, 2009 11:55 pm by Gene BorioOn September 28, 2009, the tobacco Defendants asked the US Court of Appeals, DC Circuit to stay issuance of its mandate, pending Defendants’ filing and disposition of petitions for writs of certiorari to the Supreme Court.
The Court’s mandate would require Defendants to:
In arguing for a stay, Defendants’ motion briefly delineates themes likely to be presented in their petitions to SCOTUS, i.e., in the words of their motion:
– whether a court of appeals is required to undertake de novo review of factual findings in a case that squarely implicates a defendant’s First Amendment rights;
– whether corporations can be part of an “association in fact” RICO enterprise; and
– whether jurisdiction over this case was extinguished by the enactment of new federal legislation [ie, the FDA bill] that imposes comprehensive regulation on every aspect of Defendants’ business. . . .
– The balance of equities also weighs strongly in favor of a stay because, in the absence of a stay, Defendants would be required to incur substantial, unrecoverable expenses to comply with the district court’s injunctions during the pendency of their petitions for certiorari. . . .
–whether the fraud statutes and First Amendment permit allowing a corporation’s specific intent to defraud to be proven through the collective knowledge of various employees, instead of the actual specific intent of one or more particular employees;
–and whether the district court’s injunctions are impermissibly vague and overbroad.
This paragraph is intriguing:
The [Appeals Court] Panel held that Defendants had formed an “association in fact” RICO enterprise, and concluded that Defendants were likely to commit future RICO violations–even though they had entered into the MSA with the States in 1998, which categorically prohibited Defendants from engaging in the racketeering activity alleged by the Government.2 In reviewing the district court’s findings on this (and every other) issue, the Panel applied the clearly erroneous standard of review (slip op. 45), rather than undertaking an independent review of the district court’s factual findings. The Panel applied this “highly deferential” standard (id.) despite the fact that the Government’s RICO allegations were premised on Defendants’ constitutionally protected speech, including statements that Defendants had made in legislative and regulatory forums as part of the public-health debate about smoking.
The FDA argument was to be expected:
Shortly after the Panel issued its opinion, Congress enacted the Family Smoking Prevention and Tobacco Control Act (”FDA Act”), Pub. L. No. 111-31, 123 Stat. 1776 (June 22, 2009), which subjects every aspect of Defendants’ business to comprehensive oversight by the Food and Drug Administration (”FDA”). On July 31, 2009, Defendants petitioned for rehearing or rehearing en banc on the grounds that both the Panel and the full Court should consider the effect of that intervening legislation and reconsider several aspects of the Panel’s decision.
Fans of secret documents will be interested in this:
The district court also expanded the document disclosure obligations already imposed on Defendants under the terms of the MSA, which requires all Defendants to maintain publicly accessible physical depositories of litigation-related documents and all Defendants other than BATCo to maintain Internet Document Web- sites. The district court ordered “Defendants to provide complete and accurate information about any documents they withhold [from these depositories] on grounds of privilege or other protection, including confidentiality.” Philip Morris USA Inc., 449 F. Supp. 2d at 931. In that regard, the court required Defendants “to provide full bibliographic information for all withheld documents,” including titles and a summary of the basis for the privilege or confidentiality assertion. Id. To satisfy this obligation, Defendants will be required to undertake the time- consuming and financially burdensome task of reviewing and redacting–line by line–hundreds of thousands of privileged and trade secret documents.
Read on for a preview of Defendants’ certiorari filings:
Tobacco’s Stay Mandate Request (PDF)
Full text of Tobacco’s Stay Mandate Request: