Don’t Blame the SCOTUS DACA Ruling for Difficulties Undoing Trump’s Damage

MICHAEL C. DORF

Cornell law professor Michael C. Dorf responds to claims that the U.S. Supreme Court’s decision last term invalidating the Trump administration’s effort to rescind the Deferred Action for Childhood Arrivals (DACA) program license President Trump to take actions that will be difficult for a future Democratic administration to undo. Dorf argues that characterizing the ruling as a win for Trump and his executive power is far-fetched, and we should instead be concerned with the long-lasting damage to the environment and our nation’s foreign policy caused by the Trump administration.

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Defense Distributed v. Grewal

Docket: 19-50723

Opinion Date: August 19, 2020

Judge: Edith Hollan Jones

Areas of Law: Civil Procedure, Civil Rights, Constitutional Law

Plaintiffs filed suit challenging the efforts of New Jersey's Attorney General and others to thwart plaintiffs' distribution of materials related to the 3D printing of firearms, alleging infringement of plaintiffs' First Amendment rights and state law claims. The district court granted the Attorney General's motion to dismiss for lack of personal jurisdiction, relying on Stroman Realty, Inc. v. Wercinski, 513 F.3d 476 (5th Cir. 2008). The Fifth Circuit held that the Attorney General has established sufficient minimum contacts with Texas to subject him to the jurisdiction of Texas' courts. The court held that Stroman is distinguishable from this case in at least two key respects: first, many of plaintiffs' claims are based on the Attorney General's cease-and-desist letter; and second, the Attorney General's assertion of legal authority is much broader than the public official in Stroman. Furthermore, the Attorney General failed to timely raise arguments regarding whether judgment in plaintiffs favor would offend traditional notions of fair play and substantial justice. The court applied the principles discussed in Wien Air Alaska, Inc. v. Brandt, 195 F.3d 208 (5th Cir. 1999), and Calder v. Jones, 465 U.S. 783, 104 S. Ct. 1482 (1984), and held that jurisdiction over the Attorney General is proper. Accordingly, the court reversed and remanded for further proceedings.

Heinze v. Tesco Corp.

Docket: 19-20298

Opinion Date: August 19, 2020

Judge: Andrew S. Oldham

Areas of Law: Securities Law

The Fifth Circuit affirmed the district court's dismissal of plaintiff's claims in a putative class action alleging that defendants' omissions from a proxy statement led Tesco shareholders to approve an all-stock acquisition by Nabors. Under the heightened pleading requirements of the Private Securities Litigation Reform Act (PSLRA), the court held that plaintiff failed to state a claim upon which relief can be granted. In regard to plaintiff's claims under Section 14(a) of the Securities Exchange Act of 1934 that the proxy statement was misleading because it omitted certain material facts, the court held that plaintiff failed to identify how the four allegedly omitted pieces of information were necessary in order to make the statements therein not false or misleading. The court rejected plaintiff's remaining contentions as to this issue. In regard to plaintiff's claims under Section 20(a) of the 1934 Act that the individual defendants are liable for any violations committed by people they controlled, plaintiff failed to state a predicate claim under Section 14(a) and SEC Rule 14a-9. Finally, the court held that amendment would be futile and that the district court did not abuse its discretion in denying leave to amend.