India, China, Brazil Abstain From UN Vote Condemning Russian Annexation

India, China, Brazil Abstain From UN Vote Condemning Russian Annexation

Russia on Friday vetoed a Western bid to condemn its annexations of four occupied Ukrainian regions following controversial referendums – and while this move was expected from the Kremlin, China, India, Brazil and Gabon abstained.

Russia’s veto came after the United States and Ukraine co-sponsored the resolution hours after Russian President Vladimir Putin announced that Moscow would take over areas of Ukraine seized during the invasion following referendums organized by the Kremlin.

This is exactly what the Security Council was made to do. Defend sovereignty, protect territorial integrity, promote peace and security,” said US ambassador to the United Nations, Linda Thomas-Greenfield, adding “The United Nations was built on an idea that never again would one country be allowed to take another’s territory by force.”

Russian ambassador Vassily Nebenzia said that it was unprecedented to try and condemn a permanent member of the Security Council.

“Do you seriously expect Russia to consider and support such a draft? And if not, then it turns out that you are intentionally pushing us to use the right of the veto in order to then wax lyrical about the fact that Russia abuses this right,” he said.

This is exactly what the Security Council was made to do. Defend sovereignty, protect territorial integrity, promote peace and security,

Read more at: https://www.deccanherald.com/international/world-news-politics/unsc-res…

This is exactly what the Security Council was made to do. Defend sovereignty, protect territorial integrity, promote peace and security,

Read more at: https://www.deccanherald.com/international/world-news-politics/unsc-res…

This is exactly what the Security Council was made to do. Defend sovereignty, protect territorial integrity, promote peace and security,

Read more at: https://www.deccanherald.com/international/world-news-politics/unsc-res…

Tyler Durden
Fri, 09/30/2022 – 16:12

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Pivot-Hope-Punisher Powell Leaves Q3 Global Market Bloodbath In His Wake

Pivot-Hope-Punisher Powell Leaves Q3 Global Market Bloodbath In His Wake

What a week, month, quarter, year! Q3 saw the end of the beginning of the end of the fun and games and Powell peeing in the punchbowl at Jackson Hole went full Leeroy Jenkins on global markets…

The S&P 500 Index is ending this quarter deep in the red (back below 3600), fully erasing an earlier 14% gain that occurred in July through mid-August. All the majors are back in bear market territory, but Small Caps and the Nasdaq are the ugliest horses in this glue factory… (Nasdaq is now below the June 16 lows)

As Bloomberg notes, this will mark the first time since 1938 that the benchmark is closing a quarter with a negative return after earlier rising more than 10% and posting the biggest drawdown from a quarterly high in recent decades.

The turnaround shows how much hawkish central banks and economic fears are weighing on risk assets, making any rally susceptible to a quick burnout.

The S&P 500 has lost $10 trillion in market value…

The global bond market is currently undergoing its worst drawdown ever… by along way!

Source: Bloomberg

While weakness spread across global bonds, it was the US Treasury market that led the way in September with the short-end up over 70bps in yield…

Source: Bloomberg

‘Fed Pivot’ hopes were dashed mid-quarter, sending yields surging higher and the yield curve deeper into inversion…

Source: Bloomberg

As BofA’s rates guru Marc Cabana warns:

“Thin UST liquidity & limited demand may make the US market vulnerable to a market functioning breakdown, similar to UK…. Fed could follow BoE in event of extreme UST market functioning breakdown”

Rate-hike expectations surged during the quarter, and at the same time, expectations for subsequent recession-saving rate-cuts languished…

Source: Bloomberg

And as yields rose – and rate-hike expectations soared –  stocks tumbled unable to find enough ‘bad news’ in macro to prompt more hype/hope of a pivot in September…

But the quarterly performance for stocks shows the real swing around Powell’s Jackson Hole speech…

Source: Bloomberg

This week saw all the majors trade lower (despite BoE saving the world midweek briefly) with a notable decoupling between Small Caps (outperforming) and the rest…

European stocks were just as ugly in September with UK’s FTSE suffering worst…

Source: Bloomberg

Q3 is the 3rd quarter in a row during which a ‘balanced’ stock/bond portfolio lost money (if it wasn’t for July’s gains, this would have been the worst quarter ever for a stock/bond portfolio)

Source: Bloomberg

The dollar rose for the 4th straight month (and 8th of the last 9) to its strongest since April 2002…

Source: Bloomberg

Interestingly, Russia’s Ruble was the best performing currency (along with the Mexican Peso) while the rest of the world’s fiat faded against the greenback…

Source: Bloomberg

Cryptos ended the quarter higher with Ripple and Ethereum outpeforming (bitcoin was the laggard)…

Source: Bloomberg

In commodity-land, the strong dollar weighed on everything with Bloomberg’s Spot Commodity Index down for the 3rd month of the last 4 and back at its lowest since Jan 2022…

Source: Bloomberg

Crude and Copper were down hard in September amid global growth fears and hawkish monetary policy talk. Silver managed gains on the month, significantly outpeforming gold…

Source: Bloomberg

After dropping 13% and 9% respectively in July and August, Americans pump prices for gas were unchanged in September and are now up 10 days in a row…

Source: Bloomberg

Finally, we note that US financial conditions have tightened dramatically in the last quarter as Powell punched the ‘pivot-hopers’ in the face…

“This week has told us a lot about the transitions going on,” said El-Erian, who is also president of Queens College, Cambridge and a Bloomberg Opinion columnist.

“The next few weeks are going to be pretty volatile.”

Tyler Durden
Fri, 09/30/2022 – 16:00

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We Will Now Find Out What Putin Does When It Is “Sovereign Russia” That Is Being Attacked

We Will Now Find Out What Putin Does When It Is “Sovereign Russia” That Is Being Attacked

By Michael Every of Rabobank

Really Trussing Up

Yesterday saw stocks slump and key bond yields rise slightly, the US dollar remain on the back foot, and commodities –or at least oil– fail to go anywhere. We also got some market-moving events and statements: we just haven’t seen the matching moves happen yet.

Russia announced it will annex parts of Ukraine today. This will then introduce a global split between the likely small number of states that will recognise this decision, given the doors it opens to other contested borders being changed by force, and the entire western world, which will reject the move. Then we find out what Russia will do when it is “sovereign Russia” that is being attacked. Risk is unlikely to be on as a result, especially into a weekend.

Far from unrelated, the EU saw major developments in its energy crisis. Even if the Twitterfication of it might have been unfairly reductive, how about: “EU official: President of the EU Council Michel believes the EU needs to tackle high gas prices and electricity prices; it’s up to the experts to figure out the details.” Such royal hand-waving unlinked to how reality works is how we got into this mess in the first place. But things were figured out. Not, as former BOE Governor Carney said of the UK, a needed rush for nuclear power. Rather, Germany –where inflation hit 10.9%, and the government warned the energy crisis is becoming a broader social crisis– offered a EUR200bn “protective shield” to keep the price of electricity down.

That means massive state subsidies and debts; for years; with no energy rationing in place; as the country starts to run dreaded twin deficits; and as the ECB raises rates. Those Europeans talking about Schadenfreude looking at the UK should be aware that while Nos. 10 and 11 are acting like the Mad Hatter and March Hare at the Tea Party, Europe is also living in Wünderland.

In fact, it’s hard to make an argument that the EU is not risking becoming the UK with a lag. To hammer home the point, the ESRB regulators report the EU faces ‘severe risks’ to its financial system, with the Ukraine war possibly (only possibly?!) creating a combination of slow growth, falling prices, and market stress. I don’t think the dollar will be down, or the EUR up, for long.

Of course, the same is true for GBP. More so when Pill yesterday claimed the BOE did not intervene in the Gilts market to push yields lower (as 30-years collapsed 106bp!), and will not do QE or Yield Curve Control; and neither will it fund the government, or MMT. The only logical function left is a bailout: except that is supposed to be on Bagehot terms: “Lend without limit, to solvent firms, against good collateral, at high rates.” I didn’t see that – did you?

As if that was not enough UK “More Tea! More Tea!”, and as suggested earlier this week, PM Truss is now going to push for aggressive state spending cuts to show markets that she is serious about fiscal discipline. So, tax cuts for the rich remain and bankers’ bonuses are back, etc., but we will see huge real-terms declines in social spending across the board into a recession, and even on “geoliberalism” UK soft power like the BBC World Service. In the ultimate marketplace of ideas, democracy, Labour is now up between 17 and 33 points up in the polls, which would imply the Tories will be entirely wiped off the political map.

Following the lead of using Macron as a verb in Russian (“Macronit” meaning to talk a lot and then do nothing useful), yesterday saw market chatter of how “to Truss” or to “Truss up” might be used in idiomatic English. (“They really Trussed that up, didn’t they?”) All I would add is that it also works with a Germanic “Truß” – with a lag.  

Meanwhile, the Fed sent the message rates are going to keep rising regardless, even if we see a recession, that UK wobbles have as little to do with it as the UK claims its budget has to do with its wobbles, and whispers are that may include only a hairshirt “the discount window is available if you need it” Bagehot safety net ahead. This is revolutionary stuff for markets coddled with liquidity since Greenspan.

Are they Trussing up too? Larry Summers, who is being mentioned so often it surely cannot be a coincidence, is saying he sees the present backdrop looking like August 2007. Some think August 2008.

In either case, the PBOC is now leaning back towards bubbles again regardless, allowing nearly two dozen cities to lower mortgage rates for purchases of a primary property. The problem is that everyone can see that aside from a few hotspots, property is over-priced and over-supplied, and prices are going to fall anyway now the mania has faded – so why rush to buy? The other problem is that if the PBOC succeed, it means inflation for everyone else. The PMI reading of 50.1 today, up from 49.4, is neither here nor there, but the private Caixin PMI at 48.1 vs. 49.5 expected was there not here.

As Mexico just hiked rates 75bp to 9.25%, Bloomberg also notes the RBA faces an uphill battle to not be as hawkish as everyone else. (And does not note “because housing.”) It quotes there are “some lingering issues around credibility and communication,” which reminds me of the quip from Gandhi: “What do you think of Western civilisation?” “I think it would be a good idea.”

Of course, the BOJ is still doing its own sweet thing, boosting regular bond purchases this morning to try to cap upwards pressure on yields – which can only mean downwards pressure on JPY.

I would write more, but it’s been a hell of a week for me personally, and I am too Trussed up to do so. End of the month, end of the quarter, end of our tethers.

Tyler Durden
Fri, 09/30/2022 – 15:45

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‘Just Kidding’: Biden Yanks Student Loan Forgiveness From 770,000 Borrowers

‘Just Kidding’: Biden Yanks Student Loan Forgiveness From 770,000 Borrowers

In a jarring reversal, the U.S. Department of Education on Thursday quietly revised its online guidance on who qualifies for the $10,000 of student loan forgiveness that President Biden announced in August. In doing so, it pulled the rug out from under at least several hundred thousand people.  

At issue: Borrowers who have Perkins loans and Federal Family Education Loans (FFEL). Those earlier-generation loans were guaranteed by the federal government but were issued and are managed by private lenders. The FFEL program ran from 1965 to 2010; Perkins loans ended in 2017. 

Previously, the Department of Education’s online guidance said Perkins and FFEL loans could be consolidated into federal direct loans and then qualify for debt forgiveness.

On Thursday, however, the Department of Education — without fanfare or a press conference — changed the rules by adding this content to its website: “As of Sept. 29, 2022, borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans.”

This is no marginal change: An anonymous Biden administration official told Reuters it will affect 770,000 borrowers. That estimate relies on the fact that many of the 4 million total FFEL borrowers also have direct loans and can still qualify for consolidation.  

“This is a gut punch, to say the least,tweeted Betsy Mayotte, president of the Institute of Student Loan Advisors. “This is one of the most harmful decisions I’ve seen come out of the Ed in a long time.”

The Education department says it’s “assessing whether there are alternative pathways to provide relief to borrowers with federal student loans not held by ED.”  

The harsh withdrawal of the debt forgiveness from nearly a million or more Americans came on the same day that Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina asked a federal judge to impose an immediate temporary restraining order on entire the debt forgiveness scheme. 

The suit specifically attacks the forgiveness of FFEL loans, arguing that doing so deprives private lenders of assets and “the ongoing payments that those loans generate.” 

In their lawsuit, the states also more broadly allege that Biden is overstepping his authority by using the 2003 HEROES Act to wipe away the debt. That legislation focused on aiding active duty military service members serving in the war on terror. 

“It is inconceivable, when it passed the HEROES Act, that Congress thought it was authorizing anything like the Administration’s across-the-board debt cancellation, which will result in around half a trillion dollars or more in losses to the federal treasury,” the six state attorneys general wrote in their filing

The estimated cost of the debt forgiveness scheme has already soared in just the first month after it was announced. The Congressional Budget Office says it will cost at least $400 billion over three decades, far above earlier estimates of $300 billion. 

Biden’s loan forgiveness proclamation was in keeping with a 2020 campaign pledge, and the announcement was clearly timed to maximize its impact on the midterm election. However, after Thursday’s jolting move by the Biden administration, some 770,000 to 4 million borrowers may be feeling a little less confident in Democratic governance. 

Tyler Durden
Fri, 09/30/2022 – 15:30

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Laura Loomer Must Pay CAIR Florida Nearly $125K in Attorney Fees

From Illoominate Media, Inc. v. CAIR Florida, Inc., decided today by Judges Charles Wilson, Britt Grant, and R. Lanier Anderson III:

This suit over attorney’s fees and costs stems from allegations that the CAIR Foundation and CAIR Florida, Inc. (CAIR) had a hand in convincing Twitter to ban Loomer’s account. CAIR removed the first amended complaint to federal court on August 22, 2019. Counsel for Loomer and her corporation (Illoominate) moved for a remand to state court the next day. In its response two weeks later alleging fraudulent joinder of CAIR Florida, Inc., CAIR filed a sworn statement from Nathan Bernard. He explained that he pranked Illoominate by fabricating evidence to convince “Loomer that CAIR Foundation was the reason Twitter banned her account.” In the interim, CAIR had filed a motion to dismiss in late August.

On October 2, 2019, CAIR sent Illoominate an “offer of judgment” proposing to settle the entire case for a nominal $1, including costs and attorney’s fees. Illoominate had 30 days to respond. On October 22, the district court dismissed CAIR Florida from the suit and scheduled a hearing on CAIR’s motion to dismiss for November 18. Nevertheless, Illoominate chose litigation over settlement. On October 31—shortly before the offer of judgment deadline—Illoominate filed a response to CAIR’s motion to dismiss, where it voluntarily dismissed all its claims except Count II (for tortious interference with an advantageous business relationship). Once the deadline passed, the district judge dismissed the remaining claim at the November hearing, and this Court affirmed the dismissal in December 2020. On April 12, 2021, CAIR filed a motion seeking reimbursement from Illoominate pursuant to a Florida law requiring select parties who decline an offer of judgment to pay their opponent’s reasonable costs and attorney’s fees. Fla. Stat. § 768.79(1).

The lower court referred the matter to a magistrate judge, and both parties had the opportunity to brief the issue in full. The magistrate judge issued an order granting CAIR’s motion for costs and attorney’s fees, but reducing their magnitude to comport with federal and state laws limiting recovery. Illoominate appealed to the 11th Circuit again, though we dismissed for lack of a final dispositive order to review.

This (third) appeal flows from a motion Illoominate filed in the district court in opposition to the magistrate judge’s order. The district judge allowed CAIR to submit a written response to Illoominate’s objections. In disposition, the district court adopted the magistrate judge’s order in full, awarding CAIR recompense for fees and expenses incurred while litigating all aspects of the case from October 2, 2019 (when the offer of judgment was made) through the end of the first appeal. Illoominate now asks that we review and reconsider.

First, Illoominate claims that Florida’s cost-shifting law is inapplicable because its suit was for both money damages and injunctive relief. Fla. Stat. § 768.79(1); see also Diamond Aircraft Indus., Inc. v. Horowitch (Fla. 2013) (“Courts have also held that when a plaintiff seeks both monetary and nonmonetary relief, and a party makes a general offer of settlement, section 768.79 is not applicable.”). In Illoominate’s view, all they “had a chance to do was plead, and they clearly pled non-monetary relief.”

Not quite. The prayer for relief in Illoominate’s complaint seeks “damages in an amount to be proved at trial” and (without elaboration) “preliminary and permanent injunctions to prevent defendants from continuing their unlawful conduct.” Yet as the magistrate judge correctly pointed out, in the eight-and-a-half-month period between the filing of the amended complaint and the district court’s decision to dismiss, Illoominate “never filed a motion for a preliminary injunction or temporary restraining order” in state or federal court.

Nor could it have. Three of the four counts directed at CAIR conclude that Illoominate has been injured in an “amount to be proved at trial,” completely synonymous with the prayer for relief’s phrasing of the damages claim. The fourth count, a restraint of trade claim, does not specify the relief sought. But the harm is phrased entirely in the past tense: Illoominate and Loomer “have been injured in their business or property by reason of defendants’ unlawful act.” There is no ongoing harm to be enjoined. The request for injunctive relief only makes sense in the context of Count I, which is directed solely against never-served defendant Twitter. Illoominate seeks “recission or reformation of those provisions of the Twitter Terms of Service which, as a matter of equity, might otherwise prevent or limit this Court’s ability to provide just and complete remedies for defendants’ unlawful conduct.” Without Twitter, the suit reads as a claim for money damages from CAIR.

The Florida Supreme Court has approved of applying section 768.79 to cases that involve a notional nonmonetary claim, but that actually involved disputes solely over monetary damages. Diamond Aircraft. Florida state courts interpret Diamond Aircraft by looking beyond the procedural posture of a complaint to assess the “true relief” a party seeks, and apply section 768.79 if it is damages.

Viewed through this prism, the lower courts appropriately applied the statute here. Illoominate made only a glancing gesture toward injunctive relief directed at another defendant, and then totally failed to pursue it when that defendant was not served. Instead, as the magistrate judge correctly pointed out, the language of their complaint against CAIR sounds entirely in damages…. Illoominate … cannot dodge responsibility for its own choice to continue litigation by pointing to a single throwaway line in its complaint. To hold otherwise would defeat the entire purpose of the Florida statute—any party could upend the law by inserting a single sentence into its pleadings….

If section 768.79 applies, “the sole basis on which a court can disallow an entitlement to an award of fees is if it determines that the offer was not made in good faith.” Unsurprisingly, Illoominate argues that CAIR’s offer of judgment was not made in good faith. That contention is wrong, for two reasons.

First, Illoominate waived this argument through inaction. In this fact-bound inquiry, we review the lower court’s finding of good faith for clear error. The district court, in turn, also reviews the magistrate judge’s order for clear error or to assess if it is contrary to law. But the magistrate judge was clear: “there is no dispute as to whether Defendants’ offer was made in good faith.” Illoominate did not raise the good-faith issue until its objections to the magistrate judge’s order—which was too late to afford it meaningful relief, given the district court’s mandate to review record-based factual arguments for clear error. This is reason enough for us to affirm the judgment under clear error review, too.

If Illoominate’s bad-faith argument is not waived, the only question of law presented by it is whether a nominal offer of judgment—here, $1—can be made in good-faith. Yes it can. “Although nominal offers are suspect where they are not based on any assessment of liability and damages, they can be valid if the offerors have a reasonable basis at the time of the offer to conclude that their exposure was nominal.” Offerors need not have the kind of evidence necessary to support a judgment when they propose settlement, only “some reasonable foundation on which to base an offer.”

Here, CAIR had introduced sworn statements showing that its purported involvement in Illoominate’s claims derived from a hoax. Those statements should have given Illoominate pause about pressing its claims. And apparently they did: during the 30-day window to accept the offer of judgment, Illoominate voluntarily dismissed three of its claims (and the district judge dismissed CAIR Florida, Inc. from the case). That left only one of Illoominate’s five counts operative, and that claim too was dismissed within three weeks after the settlement window closed. Given this context, CAIR had a wholly sufficient basis to conclude a nominal settlement was appropriate. So even if the argument had been properly presented, the district court did not err in concluding that CAIR’s offer was made in good faith….

[W]e affirm the holding of the district court that Illoominate must pay the full amount of costs and fees ordered by the magistrate judge: $124,423.37….

The post Laura Loomer Must Pay CAIR Florida Nearly $125K in Attorney Fees appeared first on Reason.com.

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Missouri Libertarian Party Declines To Endorse Marijuana Legalization Initiative


A marijuana leaf and the state of Missouri.

In November, Missouri will vote on Amendment 3, which, if passed, will legalize the recreational possession of marijuana in the state. Currently, 19 states and Washington, D.C. allow recreational pot, with the possibility of more on the ballot this year. But ironically, the Missouri initiative is getting pushback even from otherwise-sympathetic sources.

Amendment 3 is sponsored by Legal Missouri 2022, a marijuana advocacy group. According to the group’s website, the proposed initiative would “legalize adult-use marijuana,” “boost state tax revenues,” and reduce the “illicit market” for weed. As written, the proposal would remove state laws against “purchasing, possessing, consuming, using, delivering, manufacturing, and selling” marijuana for adults 21 and older. It would also allow anyone convicted of nonviolent marijuana-related offenses to petition for expungement and, if necessary, release from incarceration, parole, or probation. Sales would be taxed at 6 percent, and Missourians would be limited to 3 ounces for personal use.

Earlier this week, despite supporting legalization, the Libertarian Party of Missouri voted overwhelmingly against endorsing the measure. Chairman Bill Slantz told the St. Louis Post-Dispatch, “We just don’t believe that any government at any level should have any legislation against drugs.”

Slantz singled out the complexity of the initiative’s language, saying “The fewer the words, the better off we are.” Specifically, he cited the 3-ounce cap as undermining the goal of legalization: “If you have 3.2 ounces or 3.1 ounces…has the scale been…checked to make sure it’s accurate?”

Notably, Slantz indicated that while the party made no endorsement, he would be voting for the measure personally. Jonathan Dine, the party’s candidate for Senate, indicated his support as well.

Earlier this month, the Democratic Party of Missouri also declined to endorse the proposal, citing the complicated expungement provisions and the manner in which it would allocate licenses for marijuana businesses. The party worried that Amendment 3 “may negatively impact minorities, people of color, and low-income earning Missourians.” Like the state Libertarian Party, the Democrats support legalization in general, and some party leaders indicated they would be voting for it.

Dan Viets, a Missouri attorney and chair of Legal Missouri 2022’s advisory board, tells Reason that both parties are “making a big mistake” by not endorsing Amendment 3. He cited its support by the American Civil Liberties Union of Missouri and “at least four NAACP chapters” as evidence of its appeal to those who favor both legalization and anti-racism.

As for the 3-ounce limit, Viets says that there is an irony in the Libertarian Party’s opposition to it: “Most legal states do not allow as much as 3 ounces.” Indeed, of the 19 states, plus D.C., that allow recreational use, only six—Connecticut, Massachusetts, Michigan, New York, Oregon, and Rhode Island—allow at least 3 ounces of recreational pot.

Viets admits that the limit was a compromise: “The reason for limits in general is that we hope to actually pass this law… Certainly, there are compromises in Amendment 3, and they’re there so it will pass.”

Despite the major parties’ neutrality, and opposition from Republican Gov. Mike Parson, the measure looks likely to pass: A recent poll showed 62 percent of Missourians support legalization, including “double digits [support] among all demographic groups.”

As more and more states soften their marijuana laws to varying degrees, Amendment 3 provides an interesting consideration: Is an imperfect bill that still gets nonviolent drug offenders out of jail and prevents convicting new ones better than no bill at all?

For his part, Viets says, “You can’t expect to get everything you want all at once, and if you don’t take the progress that you can achieve, you never make any progress.”

The post Missouri Libertarian Party Declines To Endorse Marijuana Legalization Initiative appeared first on Reason.com.

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An Iowa Jury Awards $12 Million in Damages to a Man Who Was Wrongly Imprisoned for Sexual Abuse


A former guidance counselor was wrongly convicted of sexual abuse thanks to an incompetent public defender.

An Iowa jury yesterday awarded $12 million to a former elementary school guidance counselor who served six years of a 25-year prison sentence after a student accused him of molestation. Donald Lyle Clark’s 2010 conviction was overturned in 2016 after he persuaded a judge that his lawyer, who died in 2013, had blatantly failed to do his job properly and that new evidence cast doubt on his accuser’s truthfulness.

The case vividly illustrates the perils of relying on the diligence of overtaxed public defenders, especially in rebutting sexual abuse allegations supported by nothing more than an alleged victim’s claims. It also suggests that the emotions triggered by such charges can make it difficult for a defendant to get a fair trial even with competent representation.

A 2011 appeals court summary of the case against Clark suggests how shaky it was. During the 2003–04 school year, Clark’s accuser, then a fifth-grader who “had been diagnosed with attention-deficit disorder and was having some motivation problems,” met with Clark once a week for about 20 minutes. The boy, identified as “C.B.” in court documents, “became angry and withdrawn after his fifth-grade year” and “began drinking and using drugs in seventh grade.” As a teenager, he “engaged in self-harming behavior and attempted suicide.” When he was 16, his parents “sent him to a school for troubled youth.”

During his stay at the school, C.B. “revealed during a group session that he had been sexually abused” but did not identify an attacker. In a June 2009 email to his parents that became a point of contention in Clark’s appeals, he likewise did not say who had molested him, although he said it was not a priest at church, as his parents had suspected. C.B. said he had been “seeing and hearing things,” which he thought could be symptoms of “schizophrenia” but his parents had attributed to “spirits.” He also mentioned that he was a habitual liar.

The boy later told social workers that Clark had “touch[ed] his genitals over and underneath his clothing” in “two distinct incidents.” There were no witnesses and no physical evidence, so the trial came down to the boy’s word against Clark’s. Yet Clark’s public defender, John Robertson, chose not to present any character witnesses. Nor did he ever visit Clark’s office, where he could have taken photographs showing that anything happening inside would have been visible to passers-by in a heavily trafficked hallway through a window in the door. Robertson also did not inform Clark about depositions of witnesses who could have testified about the layout of the school, the location of the office, and the line of sight from the corridor.

After the jury convicted Clark of second-degree sexual assault, he was sentenced to 25 years in prison. The sentence required him to serve 17½ years before he would be eligible for parole. Clark also was ordered to pay $11,000 in court fees and $67,000 in restitution to C.B.

Clark’s initial appeal focused on the June 2009 email, which the prosecution did not share with the defense until five days before the trial, and then only in a redacted version. Clark did not have access to the full text until three days before the trial, and the judge rejected his request for additional depositions in light of the information disclosed in the email. The judge also refused to postpone the trial. As a dissenting appeals court judge noted in 2011, the trial began “about six business hours after the State finally provided the first written disclosure that the alleged victim believed he was suffering from schizophrenia.”

The appeals court nevertheless upheld Clark’s conviction, and the Iowa Supreme Court concurred in 2012. Clark then filed a petition for post-conviction relief, arguing that his trial had been compromised by ineffective counsel and that new information showed his accuser was untrustworthy. The latter claim was based on a deposition that C.B. gave as part of a civil case against Clark, during which he admitted that he had lied on the stand during Clark’s trial about certain aspects of the case.

In 2016, Johnson County District Judge Sean McPartland agreed that Clark was entitled to a new trial. The Johnson County Attorney’s Office instead decided to drop the charges.

McPartland heard testimony from several witnesses, including Steven Exley-Schuman, an investigator in the Iowa City Public Defender’s Office. Exley-Schuman said Robertson, who handled 450 to 500 cases a year, “preferred to represent clients at trials in a ‘seat of the pants’ manner, rather than relying on an organizational scheme.” He testified that visiting the crime scene, which Robertson failed to do, was “very important” in preparing a case. Exley-Schuman, who said he had been surprised by Clark’s conviction, recalled that Robertson had confessed to him that “he had been ineffective in his representation” of Clark, which Exley-Schuman “testified is not a typical admission made by attorneys at the Public Defender’s Office.”

McPartland agreed with Exley-Schuman that Robertson’s failure to visit and photograph Clark’s office or contest the prosecution’s misleading description of the setting was inconsistent with his responsibilities as a defense attorney. “In failing to visit the scene of the alleged crime and to take photographs of the crime scene, and in failing to object to the entry of the State’s photos of the crime scene,” the judge said, Robertson “fell well below an objective standard of reasonableness.” Robertson thereby “failed to perform an essential duty owed to his client.”

McPartland also concluded that “Robertson’s failure to timely inform Mr. Clark about the scheduled discovery depositions, or to obtain and document Mr. Clark’s consent to waiver of his presence at the discovery depositions, fell below an objective standard of reasonableness.” Likewise, his failure to “investigate, discover and introduce character evidence in favor of Mr. Clark at the time of the criminal trial.”

Regarding the new evidence of C.B.’s dishonesty, the state admitted it was “undisputed” that C.B. “failed to some extent to uphold his oath at trial.” In his civil deposition, McPartland noted, C.B. “testified that he lied under oath at the criminal trial; that he also had lied under oath in a prior deposition in the criminal proceedings; and that he knew he was lying under oath when he did so.” Those lies concerned “the very subject which was the basis for the charges—the nature and frequency of sexual contacts initiated by Mr. Clark.”

McPartland unsurprisingly thought “the fact that C.B. did not provide completely truthful testimony regarding the alleged incidents of abuse at trial is material to the question of Mr. Clark’s guilt.” Since “this was primarily a ‘he said, he said’ case,” he noted, “the jury’s credibility assessments made with regard to C.B.’s testimony were critical to the outcome.”

After McPartland’s ruling, the Johnson County Attorney’s Office moved to dismiss the charges against Clark “in the interests of justice.” Assistant Johnson County Attorney Anne Lahey nevertheless implied that prosecutors were motivated by concern for C.B. “We usually have a lot of victim input into decisions about cases,” she told the Des Moines Register, “especially since obviously they’re the ones that suffered, and he chose not to go through it again.”

The reversal of Clark’s conviction and dismissal of the charges made him a free man, relieved him of the obligation to register as a sex offender, and eliminated the state’s demand for $67,000 in restitution, although he had already paid $2,000 of that bill, along with $11,000 in court fees. But Clark’s exoneration did not restore the six years he lost or compensate him for the ignominy and suffering caused by the state’s prosecution and Robertson’s egregious failures as a defense attorney.

In 2017, Clark sued the state for violating his right to effective legal counsel, saying Robertson’s “negligent representation” resulted in the conviction of a defendant who was “actually innocent.” Yesterday’s judgment, which included $8 million for “past emotional distress” and $4 million for “future damages,” validated that complaint.

“We’re grateful that this jury was moved to do justice for and honor a member of their community,” said Mel C. Orchard III, one of Clark’s attorneys. “This verdict for a good man reinforced my belief that the jury system is the most important part of our democracy.”

The jury system, of course, also delivered Clark’s conviction, based on the word of a deeply troubled and manifestly unreliable teenager. Even taking into account the substandard defense, it is hard to understand how 12 people could have agreed that the prosecution had proven its case beyond a reasonable doubt. Their verdict suggests that the lurid and shocking nature of the charges overwhelmed the skepticism they were obligated to apply.

A 1997 study published in the journal Law and Human Behavior examined the attitudes of 849 prospective jurors in 25 Canadian criminal cases involving allegations of sexual abuse. “Knowing only the nature of charges against the accused,” the researchers reported, “approximately 36 percent of jurors stated they could not be impartial. Some jurors explained they had been victims of abuse, others expressed fears for children, while others simply stated they could not set aside a presumption of guilt.”

Those findings were based on prospective jurors who candidly admitted their “generic prejudice.” Given the social pressures of this situation, it seems likely that others were not inclined to recognize or publicly announce that they could not set aside their strong feelings about the alleged crime to fairly determine whether it had actually happened. When enough jurors succumb to those emotions, the presumption of innocence becomes a presumption of guilt that is hard to overcome even with the best lawyer.

The post An Iowa Jury Awards $12 Million in Damages to a Man Who Was Wrongly Imprisoned for Sexual Abuse appeared first on Reason.com.

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The Woman King Rewrites History for a Feminist Twist on the Slave Trade


Viola Davis in "The Woman King"

It’s difficult to watch The Woman King and not conclude it’s a masterfully made movie. It has soaring action scenes—the sort that will make you squirm and scream—unconventionally led by a cast of female Amazonian warriors. It has Viola Davis, whose reputation as one of the most formidable actresses alive needs little explanation. And it has a riveting, relevant plot, centered around a kingdom in West Africa that begrudgingly participates in the 19th-century slave trade while it makes moves behind the scenes to hamstring it.

That it’s based on an unbelievable true story should only add to the film’s appeal. Instead, it destroys it.

That’s because the unbelievable true story is truly unbelievable, in that it’s false. The film is indeed based on history. But it’s a revisionist one and not one that can be hand waved away.

The movie takes place in the area that is now southern Benin, known as the Kingdom of Dahomey, which existed from the beginning of the 17th century to the beginning of the 20th. Davis plays Nanisca, the leader of an army called the Agojie composed entirely of women. We see them train and fight and capture people from nearby villages. Their prisoners are then sold to the Oyo Empire, which brokers deals with European slave traders.

But behind the facade we see in battle, Nanisca—loosely based on a real person—is wrought with guilt over enslaving her fellow man and woman. She pleads with King Ghezo, who ruled Dahomey from 1818 to 1859, to withdraw from the trade, suggesting he instead assert economic dominance in the region by relying on the kingdom’s share of palm oil. Epic battles between the Agojie and the Oyo fighters ensue, and (spoiler alert) the (surviving) European slavers are sent packing.

It’s a tale that makes for a compelling, mostly sympathetic watch. But it requires you go into the theater blind, as I did. And it requires that you stay that way—and stay away from Google—after you leave, which I did not.

Absent from the film is that the Kingdom of Dahomey’s success did not hinge on the abolition of slavery. Its demise did, which came about when Great Britain crippled the trade. After Ghezo rebuffed their insistence that he stop buying and selling human beings, the British instituted a naval blockade in the early 1850s, forcing his hand. It was then that he transitioned to heavy reliance on palm oil—not because he wanted to leave the slave trade but in spite of his desire to continue it.

As the movie progresses, viewers watch as the Portuguese—who arrived in Africa to purchase slaves—are vanquished by Davis and company. It’s hard not to cheer when a group of African men, recently freed from bondage, take the European leader Santo Ferreira (played by Hero Fiennes Tiffin) and drown him in shallow water. Missing from the conversation is that Ferreira appears to be based on Francisco Félix de Sousa, who, in reality, helped King Ghezo execute a coup d’etat so the two men could together reinvigorate the slave trade.

Hollywood has often taken liberties in telling historical dramas; this isn’t new. But there’s an important distinction to be made between poetic license and historical revisionism. To portray Dahomey as a kingdom of freedom fighters would be akin to producing a movie about the Confederacy as an anti-slavery republic, starring Robert E. Lee as the primary abolitionist. Society would rightfully reject such a film, at least in today’s day and age.

But The Woman King has received a warm critical reception in reviews from the country’s largest media outlets that fail to reckon with or even mention the historical conflict when evaluating its merits. “Viola Davis reigns supreme,” writes The Washington Post, whose critic adds that whether or not the slave-driven moral quandary “is literally true to life is beside the point.” OK. “She slays,” says The New York Times. The movie is not only “truly inspiring,” says a review on ABC News, but “no white saviors need apply.” The slave trade, but make it feminist.

Such evaluations don’t necessarily land as a surprise. The movie has several elements to please the crowd: fierce female warriors, intersectionality, and racial justice chief among them. “The women are their own greatest weapons, and among everything else it addresses,” the Times writes, “‘The Woman King’ is about strong, dynamic Black women, their souls, minds and bodies.” We are supposed to forget that this kingdom we are glorifying did so via the subjugation and suffering of other black people, which, apart from slavery, included killing thousands upon thousands of their prisoners in human sacrifice rituals each year.

This is the central problem here: The Woman King all but encapsulates the values that take precedence in popular culture. But the producers had to rewrite the history books to get there, because telling a more respectfully-accurate story would’ve required them to buck how we are supposed to talk about such things. Everything must be black and white; there can be no gray. (It is rumored that the actress Lupita Nyong’o, who was originally cast in the film, dropped out over reservations about the historical presentation.)

And yet, such revisionism is not confined to one subject or one political faction. That much is clear, ironically, in ongoing debates around the history of the Confederacy and its relationship to slavery here in the U.S. I’ve written quite frequently about the need to present such history with precision and to not glorify Confederate military leaders with public monuments, which represent perhaps the largest participation trophies in modern times. But to argue it’s kosher to rewrite history for The Woman King simply because others have unfortunately rewritten history on similar topics is to say that historical integrity doesn’t matter at all. Revisionism isn’t just wrong when done by your ideological foes.

After all, history is best when interrogated and questioned—not sanitized or, in this case, redrafted for the sake of convenience. A great movie would have presented that history in full, likely leaving many viewers exiting the theater unsure of how to feel. In The Woman King, you know how to feel, because you’re told how to feel. It’s decidedly less rewarding than the alternative.

The post <em>The Woman King</em> Rewrites History for a Feminist Twist on the Slave Trade appeared first on Reason.com.

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Short Circuit: A Roundup of Recent Federal Court Decisions

Please enjoy the latest edition of Short Circuit, a weekly feature written by a bunch of people at the Institute for Justice.

New cert petition: Anthony Novak was jailed for four days and prosecuted for making a fake Facebook page satirizing the Parma, Ohio police dept.—an obvious First Amendment violation! And yet the Sixth Circuit granted qualified immunity to the officers involved, so IJ is asking the Supreme Court to step in and settle a deep split among the circuits on what to do when probable cause rests on speech. Or, better yet, the Court could nuke the doctrine of qualified immunity into the sun. Read all about it at Cleveland.com.

  • In 2019, President Trump publicly denied a woman’s accusation that he raped her in a department store changing room in the 90s. She sues him in his personal capacity for defamation, but the feds intervene, seeking to substitute the federal gov’t as the defendant, which would mean the case is toast (since the feds have sovereign immunity in defamation cases). District court: No dice, feds. Second Circuit (over a dissent): Actually, we’d like to ask the D.C. Court of Appeals whether, under D.C. law, the president’s comments to the press were within the scope of his official duties. (If so, this case is toast.)
  • Connecticut police wish to transfer a mentally disturbed inmate to a padded cell. The inmate gets mouthy and learns what happens when you bring words to a baton/K9/taser fight. Second Circuit: Qualified immunity. Dissent (Calabresi, J.): Not only shouldn’t there be qualified immunity in this case, there shouldn’t be qualified immunity in any case.
  • New Jersey highway cops find three plastic bags with heart-shaped candies and arrest the motorist—but do not test the candies for two months. Whoops! They are not drugs. And even knowing that, it takes an additional four months to drop the charges. District court: Could be false arrest and malicious prosecution. No qualified immunity. Third Circuit: And the officers can’t appeal that just yet because the motorist subsequently amended his complaint (at the district court’s invitation), and that’s not interlocutorily appealable.
  • Fort Worth, Tex. officer shoots allegedly unarmed septuagenarian dead after going to wrong home to investigate burglar alarm. Plaintiffs: And the city is liable because of its policies: pairing rookie cops together on the midnight shift, not training officers that odd-numbered and even-numbered houses are on opposite sides of the street, and more. District court: Those things are all too attenuated from the actual shooting. The city is off the hook, but the excessive force claim against the officer can go to a jury. Fifth Circuit (unpublished): Sounds right to us.
  • Last year, Texas officials flagged over 11k registered voters as potential noncitizens. Must the state turn over info identifying these folks in response to a public records request from the ACLU and other groups? District court: Yup, turn over the records. Fifth Circuit: Reversed. The plaintiffs may be entitled to the info, but they haven’t shown how they—as opposed to the public at large—would be injured if it’s withheld. No standing. Judge Ho, concurring: But that should be pretty easy to get around in a subsequent suit and, unlike the rest of the panel, I don’t think it’s gratuitous to say so.
  • Allegation: Texas Justice of the Peace—a former Pentecostal preacher—opens court with a prayer delivered by a local faith leader. During the prayer, the judge scans the audience to see who is participating. Half-hearted participants can expect a surly reception when their case comes up for argument. Fifth Circuit: The evidence of bias is too speculative to support an Establishment Clause violation. Dissent: There’s at least enough to go to a jury.
  • In which Kim Davis—of Kentucky-clerk-cum-marriage-license-denier fame—loses her second bid for qualified immunity in the Sixth Circuit (unpublished). Back the case goes to the district court for a trial on damages, after which Ms. Davis gets to appeal to the Sixth Circuit for a third time.
  • If law enforcement from eight different federal, state, and local agencies ever raid your home (with a warrant), search your place of business (without a warrant), and ignite a flashbang grenade near your sleeping 1-year-old, the Seventh Circuit has some (published and unpublished) advice on how and whether your suit for damages might proceed if, among other odds and ends, the roles and identities of the officers involved is a tad unclear—and irrespective of whether you are now serving a lengthy sentence for drug dealing. (Ethics query: Should the magistrate judge who signed the allegedly defective warrant recuse from these proceedings? Or is it okay because he isn’t making dispositive rulings?)
  • In 1989, the director of the Oregon Dept. of Corrections, who’d been brought in to root out corruption, is murdered at work—stabbed through the heart. A parolee confesses to the murder several times on different days, giving details not publicly known and corroborated by physical evidence. Nevertheless, investigators shift their attention to another man who steadfastly maintains his innocence. No physical evidence ties him to the crime, but he’s barred from introducing evidence of the parolee’s admissions and is convicted on the basis of witness testimony. He’s sentenced to life and spends nearly thirty years in prison before the district court grants habeas and orders him released. Ninth Circuit: Nearly all the witnesses have recanted, claiming they lied because of police misconduct, and it was super unconstitutional to exclude the parolee’s confessions. No reasonable juror would’ve voted to convict with the recantations and other confessions. (Yes, there is a podcast and movie about the crime.)
  • Grants Pass, Ore. has more homeless residents than shelter beds, forcing some homeless to sleep in public spaces. Easy fix, says the town, we’ll just make that illegal. Ninth Circuit: You can’t ticket the involuntarily homeless just for being homeless. Dissent: Even if that’s right, it has to be assessed person by person, not on a class basis.
  • Police seize cash hidden in Las Vegas armed robbery suspect’s attic (in 2014) and then in his mattress (in 2017). But wait! Charges in first matter are thrown out due to prosecutorial misconduct, and he’s never charged with anything to do with the second. (He is, however, convicted of a different armed robbery.) But the gov’t just sits on the cash, a cool $65k, taking none of the steps necessary to civilly, criminally, or administratively forfeit it. Ninth Circuit: Neither the robber nor the gov’t can have it.
  • Does federal law preempt California’s attempt to regulate prisons run for the federal gov’t by private contractors? Ninth Circuit (en banc): Have you read McCulloch v. Maryland? This is not too different from that.
  • Congress authorizes a California dam in 1954 and seems to say it shouldn’t let water go downstream to help the local steelhead. Two decades later Congress passes the Endangered Species Act, which, once the steelhead is listed as endangered, seems to mean that perhaps the dam should do just that. Ninth Circuit: Some expansive language in the original act means it doesn’t contradict the ESA, so back to the district court to work out maybe releasing some more water. Dissent: That’s not what the language says. But if it does it’s nondelegation doctrine time.
  • Without a warrant, Long Lake Twp., Mich. officials repeatedly fly a drone over family’s home, curtilage, and five-acre wooded property, recording in HD. (They discover some old cars that can’t be seen from a public vantage point.) Michigan Court of Appeals: Which is not a problem because the Fourth Amendment only protects against police searches, and this was code enforcement.
  • And in cert grant news, the Michigan Supreme Court will consider whether the state’s civil forfeiture statute authorizes the forfeiture of a vehicle based on Detroit police’s allegations that a nursing student transported—not drugs—but a person who bought and immediately consumed a small amount of drugs in her car. (Not for nothing, but the allegations are applesauce. This is an IJ case.)

In the nearly 10 years since Los Angeles entrepreneur Ryan Crownholm started MySitePlan.com, he’s created over 40,000 informal maps, called site plans, to help people with a huge variety of projects—hotels looking to guide guests from the lobby to their rooms, homeowners and contractors showing local building departments where they’ll build a fence or shed, and much more. Basically anytime someone needs a handy map, MySitePlan.com can make one using publicly available information. But California licensing officials are trying to shut Ryan down because they say he is illegally practicing land surveying. Which is madness. Ryan doesn’t claim to be making the authoritative legal surveys necessary for bigger projects, and no one has ever been confused. Taken literally, the state’s position would mean anytime someone hand-draws a map on a napkin, they’d risk criminal liability. So this week IJ and Ryan filed suit in federal court. Click here to learn more.

The post Short Circuit: A Roundup of Recent Federal Court Decisions appeared first on Reason.com.

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The Grey’s Anatomy Writer Hoax

I had missed this story by Evgenia Peretz when it came out in early May in Vanity Fair (“Scene Stealer: The True Lies of Elisabeth Finch,” Part 1 and Part 2), and only saw it because of this MedPage Today (Emily Dwass) piece (“Was I Conned by a ‘Grey’s  Anatomy‘ Writer? — Her alleged duplicity could make things tougher for female patients”). It’s fascinating and chilling, and a reminder of how even people we’re predisposed to trust are sometimes untrustworthy.

One item, by the way, from the MedPage piece:

I get why no one doubted her cancer journey—who would lie about having a deadly disease? According to Peretz, Finch was given time off from work whenever she requested it to take part in treatments and clinical trials at the Mayo Clinic in Minnesota.

What I can’t wrap my head around is why Finch’s colleagues apparently didn’t question the escalating and extreme crises that tormented her. Peretz writes about the string of calamities that afflicted Finch, “some of which she chronicled for the world, some of which she talked about in select company.” There was a doomed pregnancy, a failing kidney, a friend murdered in the Tree of Life synagogue mass shooting (Finch claimed to help clean up the body parts), an abusive brother who attempted suicide. Peretz’s article calls into question whether any of these things actually occurred.

How was it possible that no one at “Grey’s Anatomy” saw these catastrophes as red flags that something was off, and that Finch needed some kind of mental health intervention?

It seems to me the answer is clear: It’s naturally always hard to accuse someone of lying, especially about circumstances to which most people are normally inclined to react with sympathy. But when skepticism and failure to #Believe… is often condemned as a moral failing, who wants to “question”?

The post The <i>Grey's Anatomy</i> Writer Hoax appeared first on Reason.com.

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