In the Pandemic, Only the Rich Get a Safety Net

JOSEPH MARGULIES

Cornell law professor Joseph Margulies debunks the notion that the poor are poor because they are lazy, while the rich are rich because they are industrious. Margulies distinguishes the stock market, in which 84 percent of all stocks owned by Americans are held by the wealthiest ten percent of American households, from the general economy and point out that for the poorest half of Americans—roughly 160 million people—the stock market is meaningless.

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Federal Deposit Insurance Corp. v. Belcher

Docket: 19-31023

Opinion Date: October 26, 2020

Judge: Carl E. Stewart

Areas of Law: Banking

This action is one of many related to the collapse of First NBC Bank of New Orleans. The FDIC filed an action in the district court seeking to enforce an administrative subpoena that ordered defendant to submit to a deposition. The district court granted the motion to enforce the subpoena and defendant appealed. In the interim, the district court denied defendant's request for a stay pending the outcome of this appeal. Defendant then sat for the deposition. The Fifth Circuit vacated the district court's judgment enforcing the FDIC's subpoena and remanded for further proceedings. The court held that the district court erred by holding that the FDIC, in its capacity as the Bank's receiver, was "the appropriate Federal functional regulator" in this case, entitling it to receive otherwise confidential and privileged documents from the Public Company Accounting Oversight Board (PCAOB). Rather, the FDIC was not "the appropriate Federal functional regulator" in this case, and the PCAOB lacked the authority under 15 U.S.C. 7215(b)(5)(B) to share transcripts of defendant's deposition testimony before it with the FDIC.

Libersat v. Sundance Energy, Inc.

Docket: 20-30121

Opinion Date: October 26, 2020

Judge: Edith Brown Clement

Areas of Law: Civil Procedure

Plaintiffs filed suit against Sundance, SEA Eagle, Noble, and others for royalties pursuant to a Texas mineral lease. Plaintiffs allege that defendants negligently calculated royalty distributions and attempted to coerce them to sign an indemnity agreement when the error was brought to their attention. The Fifth Circuit affirmed the district court's dismissal of all claims against Sundance, SEA Eagle, and Noble without prejudice for lack of personal jurisdiction. After splitting defendants into two groups, the court held that the district court correctly found that defendants do not have sufficient minimum contacts with the state of Louisiana to support an exercise of specific personal jurisdiction.

Londono-Gonzalez v. Whitaker

Docket: 16-60766

Opinion Date: October 26, 2020

Judge: Jennifer Walker Elrod

Areas of Law: Immigration Law

Two years after the Fifth Circuit held that it lacked jurisdiction to review the denial of petitioner's motion to reopen because he had committed an offense covered in 8 U.S.C. 1227(a)(2)(A)(iii), the Supreme Court issued Guerrero-Lasprilla v. Barr, 140 S. Ct. 1062, 1068 (2020). In Guerrero-Lasprilla, the Court held that even in cases involving aliens who are removable for having committed certain crimes, courts of appeals have jurisdiction to consider constitutional claims or questions of law. Therefore, the Supreme Court concluded that courts of appeals have jurisdiction to determine whether an undisputed set of facts demonstrates diligence on the part of an alien requesting equitable tolling. On remand from the Supreme Court, the Fifth Circuit held that the BIA did not err in measuring petitioner's diligence from the issuance of Carranza-De Salinas v. Holder, 700 F.3d 768, 773–75 (5th Cir. 2012), in which this court held that the repeal of former Section 212(c) of the Immigration and Nationality Act could not be retroactively applied to aliens in petitioner's position. The court rejected petitioner's contention that the extraordinary circumstances that stood in his way was the fact that he was prohibited from filing a motion to reopen prior to this court's decision in Lugo-Resendez v. Lynch, 831 F.3d 337, 339 (5th Cir. 2016). The court explained that, contrary to petitioner's view, Lugo-Resendez resolved an open question. However, it did not constitute an intervening change in binding precedent. Rather, the intervening changes that affected petitioner's ability to obtain relief were Vartelas v. Holder, 566 U.S. 257, 273–75 (2012), and Carranza-De Salinas.