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Trump administration defends Keystone XL pipeline in court
Court Watch | 2018/05/02 13:35
Trump administration attorneys defended the disputed Keystone XL oil sands pipeline in federal court on Thursday against environmentalists and Native American groups that want to derail the project.

President Barack Obama rejected the 1,179-mile (1,800-kilometer) line proposed by TransCanada Corporation in 2015 because of its potential to exacerbate climate change.

President Donald Trump revived the project soon after taking office last year, citing its potential to create jobs and advance energy independence.

Environmentalists and Native American groups sued to stop the line and asked U.S. District Judge Brian Morris to halt the project. They and others, including landowners, are worried about spills that could foul groundwater and the pipeline's impacts to their property rights.

Morris did not immediately rule following a four-hour Thursday hearing in federal court in Great Falls.

U.S. government attorneys asserted that Trump's change in course from Obama's focus on climate change reflected a legitimate shift in policy, not an arbitrary rejection of previous studies of the project.

"While the importance of climate change was considered, the interests of energy security and economic development outweighed those concerns," the attorneys recently wrote.

Morris previously rejected a bid by the administration to dismiss the lawsuit on the grounds that Trump had constitutional authority over the pipeline as a matter of national security.

Keystone XL would cost an estimated $8 billion. It would begin in Alberta and transport up to 830,000 barrels a day of crude through Montana and South Dakota to Nebraska, where it would connect with lines to carry oil to Gulf Coast refineries.

Federal approval is required because the route crosses an international border.

TransCanada, based in Calgary, said in court submissions that the pipeline would operate safely and help reduce U.S. reliance on crude from the Middle East and other regions.

The project is facing a separate legal challenge in Nebraska, where landowners have filed a law


Michigan Democrats back Nessel for state attorney general
Court Watch | 2018/04/17 05:40
Thousands of fired-up Michigan Democrats endorsed Dana Nessel on Sunday in a hotly contested race for state attorney general, backing the former prosecutor-turned-civil rights lawyer to wrest back control of an office the party last held 16 years ago.

If elected in November, Nessel — who helped mount a successful legal challenge to the state's same-sex marriage ban — would be Michigan's first openly gay statewide officeholder. She defeated Pat Miles, the former U.S. attorney for western Michigan in the Obama administration, in a fight that drew a record number of delegates to Detroit.

"I want to bring empathy back to the office of Michigan attorney general," Nessel said after her victory inside a packed convention hall in the Cobo Center, where she became the rare candidate to win a convention fight despite not being supported by the influential United Auto Workers union and Michigan AFL-CIO, which had backed Miles. "With the help of not just Democrats in the state but independents and yes, even Republicans, I think we can do that and I look forward to being able to try."

The 48-year-old Nessel, who was a Wayne County assistant prosecutor for 11 years, co-owns a small Detroit law firm that among other things focuses on criminal defense, family law and adoptions for same-sex couples. Barring a surprise, she will be officially nominated at Democrats' next convention in August and face a Republican nominee — either state House Speaker Tom Leonard or state Sen. Tonya Schuitmaker — in the November election. GOP Attorney General Bill Schuette cannot run again due to term limits and is instead vying for governor.

Nessel's win sets the stage for a female-dominated Democratic statewide ticket if favorite Gretchen Whitmer wins the gubernatorial primary election in August. Democrats, who flooded the convention despite icy, rainy weather, also endorsed Jocelyn Benson for secretary of state in an uncontested race, and U.S. Sen. Debbie Stabenow is running for re-election to a fourth term.


Retailers hope for certainty as Supreme Court hears tax case
Court Watch | 2018/04/08 12:25
Retailers are hoping for a resolution this year from the Supreme Court, which hears arguments Tuesday in a decades-old dispute: Whether companies must collect sales tax on items sold in a state where they don't have a store or other building.

If the court backs government officials who say they're losing billions of dollars in uncollected taxes, thousands of small companies could be forced to start charging their out-of-state customers for them. Some businesses fear that could alienate customers used to tax-free shopping. On the other side: Retailers who do collect sales tax and believe those who don't have an unfair advantage.

The justices will hear online retailers Wayfair, Overstock.com and Newegg challenging a South Dakota law enacted last May requiring out-of-state retailers that have sales of more than $100,000 or over 200 transactions a year in the state to collect sales tax. Their decision could have national implications on e-commerce, although Congress can pass legislation afterward that broadens or narrows the law.

It's not only about the money, says Stephanie Harvey, owner of exit343design in Conshohocken, Pennsylvania. There are more than 10,000 sales tax jurisdictions in the United States: 35 states, the District of Columbia, counties and municipalities.

"Adding this sales tax isn't just about the tax itself — it's about the cost of time to navigate and file (taxes) or the additional expense of hiring someone to do so on behalf of the business," says Harvey, whose design and printing company has an online store and sells merchandise to other retailers.

The justices are likely to rule by June on whether to overturn a 1992 decision, Quill v. North Dakota, that said companies cannot be forced to collect sales tax from customers in a state where they don't have a physical presence like a store or distribution center. Collecting tax from online sales hasn't been a question for big online retailers like Walmart or Macy's since they have physical stores in most or all states. They also have accounting systems and financial staffs to handle the work.

Small retailers have software options to help collect taxes and do the administrative work, but it's an added cost. Whether it's worth it may depend on how much revenue a seller gets from other states. The most comprehensive software can work with the programs retailers use to process sales transactions. The software sellers determine the correct sales tax rate and submit payments and reports to tax authorities.


Supreme Court rejects appeal from Middle East attack victims
Court Watch | 2018/04/04 12:14
The Supreme Court is rejecting an appeal from American victims of terrorist attacks in the Middle East more than a decade ago.

The justices are not commenting Monday in ending a lawsuit against the PLO and Palestinian Authority in connection with attacks in Israel in 2002 and 2004 that killed 33 people. A lower court tossed out a $654 million verdict against the Palestinians.

The Trump administration sided with the Palestinians in calling on the high court to leave the lower court ruling in place. The federal appeals court in New York said U.S. courts can't consider lawsuits against foreign-based groups over random attacks that were not aimed at the United States.

The victims sued under the Anti-Terrorism Act, passed to open U.S. courts to American victims of international terrorism.



Liberal Dallet easily takes Wisconsin Supreme Court race
Court Watch | 2018/04/04 12:14
Rebecca Dallet, a liberal Milwaukee judge, easily defeated conservative Michael Screnock on Tuesday in the race for Wisconsin Supreme Court, fueling optimism among Democrats for more victories in the fall midterms.

The win in the first statewide general election in the country this year forced Gov. Scott Walker, who endorsed Screnock, to warn his fellow Republicans.

"Tonight's results show we are at risk of a #BlueWave in WI," Walker, who is up for re-election in November, tweeted. "Big government special interests flooded Wisconsin with distorted facts & misinformation. Next, they'll target me and work to undo our bold reforms."

Although the race was viewed by some as a bellwether, results of past Supreme Court elections have not consistently proven to be predictive of what will happen in November. President Donald Trump won the state by less than 1 percentage point in 2016, while Dallet thumped Screnock by double digits.

She won by a nearly 12-point margin with 87 percent of precincts reporting, based on unofficial results.

The race for a 10-year seat was nonpartisan in name only, with millions in ad spending and public endorsements from the likes of Joe Biden, Eric Holder and the National Rifle Association.

Dallet said her victory, which Democrats quickly seized on as another sign of momentum, was a rejection of special interest influence on Wisconsin's Supreme Court.

"The candidate with the most experience in our courts and standing up for the fairness of our courts won," she said. "I think people are tired of what's been going on in our state in terms of the money coming in to buy these elections and people spoke out tonight."

Screnock said he was proud of his campaign, in the face of "tremendous outside influence from liberal special interest groups that were willing to say and spend anything to elect their preferred candidate to the bench."

Wisconsin Democratic Party Chairwoman Martha Laning said the win was a warning shot to Walker, calling it a "huge loss" for him because his "endorsement, philosophy and politics were on the ballot."

One of the Democratic challengers to Republican House Speaker Paul Ryan, of Wisconsin, immediately tried to raise money off the Dallet win. Randy Bryce called the Dallet win "a rallying cry for working folks."

Screnock, a Sauk County circuit judge, was endorsed by Walker and backed by about $400,000 from the state GOP.



Drug companies want Supreme Court to take eye drop dispute
Court Watch | 2018/04/01 12:14
Eye drop users everywhere have had it happen. Tilt your head back, drip a drop in your eye and part of that drop always seems to dribble down your cheek.

But what most people see as an annoyance, some prescription drop users say is grounds for a lawsuit. Drug companies' bottles dispense drops that are too large, leaving wasted medication running down their faces, they say.

Don't roll your eyes. Major players in Americans' medicine cabinets — including Allergan, Bausch & Lomb, Merck and Pfizer — are asking the Supreme Court to get involved in the case.

On the other side are patients using the companies' drops to treat glaucoma and other eye conditions. Wasted medication affects their wallets, they say. They argue they would pay less for their treatment if their bottles of medication were designed to drip smaller drops. That would mean they could squeeze more doses out of every bottle. And they say companies could redesign the droppers on their bottles but have chosen not to.

The companies, for their part, have said the patients shouldn't be able to sue in federal court because their argument they would have paid less for treatment is based on a bottle that doesn't exist and speculation about how it would affect their costs if it did. They point out that the size of their drops was approved by the Food and Drug Administration and redesigned bottles would require FDA approval. The cost of changes could be passed on to patients, possibly resulting in treatment that costs more, they say.

Courts haven't seen eye to eye on whether patients should be able to sue. That's why the drugmakers are asking the Supreme Court to step in. A federal appeals court in Chicago threw out one lawsuit over drop size. But a federal appeals court in Philadelphia let the similar case now before the Supreme Court go forward. That kind of disagreement tends to get the Supreme Court's attention.

And if a drop-size lawsuit can go forward, so too could other packaging design lawsuits, like one by "toothpaste users whose tubes of toothpaste did not allow every bit of toothpaste to be used," wrote Kannon Shanmugam, a frequent advocate before the Supreme Court who is representing the drug companies in asking the high court to take the case.


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