Camp David Clash: Trump Hammered Hegseth For Misleading Him On Arms Supply, WaPo Reports

Camp David Clash: Trump Hammered Hegseth For Misleading Him On Arms Supply, WaPo Reports

Following reports that US forces have “used up virtually all” of their precision, long-range missiles in futile attempts to first trigger an Iranian regime change and then to compel Iran to open the Strait of Hormuz, now comes reporting that an angry President Trump confronted Defense Secretary Pete Hegseth in recent days, accusing the Pentagon of misleading him on critical munitions shortages that leave Trump increasingly powerless in the five-month-old fiasco of a war. 

According to sources cited by the Washington Post, who spoke on condition of anonymity due to concern about retaliation, Trump’s ire erupted alongside a cabinet meeting held Friday at Camp David. Trump expressed consternation that he’d been assured that the weapon shortage “had been fixed” when that is apparently far from true.     

The Post’s administration sources portrayed Hegseth as one of the biggest and most persuasive proponents of launching a regime-change war on Iran (Photo: The Hill)

According to “multiple officials” who — reading between the lines — clearly seem to have had it with Fox News talking-head-suddenly-turned-Defense-secretary, Hegseth defended his own actions and tried redirecting the blame to Deputy Defense Secretary Steve Feinberg, a billionaire GOP donor whom Trump plucked out of his role as co-CEO of Cerberus Capital Management to give him the number-two job at the Pentagon. Hegseth was said to have thrown Feinberg under the bus for both the shortages and failing to keep Trump fully informed.  

The officials characterized Trump as increasingly exasperated by Hegseth, whom they describe as one of the most enthusiastic supporters of launching a war on Iran, saying he persuaded Trump that victory would come quickly and easily. The war that the administration once projected to last three or four weeks is now in its sixth month. Iran has used both its sophisticated missile technology and its inexpensive but huge arsenal of drones to wreak havoc on US and allied forces around the Gulf. Hammered by a shock and awe campaign peppered with the multiple incidents involving mass casualties among innocents — including scores of elementary schoolgirls — the Iranian people have rallied around the Islamic regime, for all its faults. At least 18 US service members lay dead, several hundred have been wounded, and some estimates of the war’s cost to date exceed $100 billion.  

Sources tell Reuters the Pentagon has blown through “virtually all” of its long-range ATACMS missiles 

The White House and Pentagon denied the account given by the Washington Post’s sources. “This is 100% fake news. Literally never happened. And President Trump has the utmost confidence in Secretary Hegseth,” White House press secretary Karoline Leavitt told the Post. Speaking more broadly, Pentagon chief spokesman Sean Parnell said “claims about depleted stockpiles, internal disagreements, [and] the Secretary’s position on Iran” are “fictional.” As for Hegseth’s job security, Parnell said he “isn’t going anywhere.”

On Tuesday, Reuters reported that the US munitions crisis is even worse than previously understood. In particular, the Army Tactical Missile Systems (ATACMS) and Precision Strike Missiles (PrSM) are said to be running critically low. “Washington has used virtually all of these weapons,” two sources told Reuters, after several media reports and think tank studies had already sounded the alarm over dwindling missiles amid both the Iran war and in the years-long process of supplying Ukraine. Low Patriot defense missile supplies have also been a persisting issue in the headlines.

Over the weekend, Trump’s backtracking on his threat to launch “the biggest attack since World War II” was widely attributed to Saudi Crown Prince Mohammed bin Salman urging Trump to refrain, fearing a large attack would accomplish little more than triggering massive and devastating retaliation against the kingdom and other Gulf states. Trump’s calculus also likely reflected Pentagon warnings about its shrinking capacity to attack. On Saturday, the Post reported that the commander of US European Command told superiors, in writing, that his forces were stretched thin, and that he might be put in a position where he’d have to choose between defending his “homeland” or the State of Israel.

His candor was praiseworthy, but it may have put a dent in his prospects for advancement. 

Tyler Durden
Thu, 08/06/2026 – 11:25

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Anti-Trump GOP Governors Plot To Undermine President’s Immigration Crackdown With Work-Visa Scheme

Anti-Trump GOP Governors Plot To Undermine President’s Immigration Crackdown With Work-Visa Scheme

Two Republican governors with a long history of clashing with Donald Trump are working with Democrats on a plan to hand migrant workers state-issued work permits instead of deportation notices, a direct challenge to the president’s immigration crackdown that the four laid out on camera. Utah Gov. Spencer Cox and Oklahoma Gov. Kevin Stitt joined Democratic Govs. Wes Moore of Maryland and Matt Meyer of Delaware for a joint interview with Bloomberg, describing a shared position that has far more in common with the Democratic Party and the labor lobby than with the Trump administration’s approach to the border.

Left to right: Oklahoma Gov. Kevin Stitt, Maryland Gov. Wes Moore, Utah Governor Spencer Cox

The vehicle for that position is the National Governors Association’s Task Force on Immigration Policy, which Stitt built after noticing a pattern among his colleagues. “The reason I set this task force up is because I realized by talking to my colleagues that they’re having the same issues,” Stitt told Bloomberg reporter Christina Ruffini. “Let’s actually have the governors issue workforce permits.”

That last line is the whole ballgame. The task force wants Congress to hand governors the discretion to issue migrant work permits at the state level, a proposal that treats illegal immigration less as a legal violation and more as a labor supply problem for agriculture, construction and hospitality. It resembles former President George W. Bush’s immigration reform approach, which sent the message to illegal immigrants, “If you’re doing a job an American won’t do, you’re welcome here, for a period of time, to do that job.”

Cox framed the alliance as a breakthrough four decades in the making. “For 40 years, we’ve been trying to do immigration reform and nobody’s ever been able to get it done,” he said. “But what’s different this time is that we have a secure border.” He credited that border security to the current administration while working, in the same breath, to carve states out from under its enforcement arm. “We all care – Republicans and Democrats – about a secure border,” Cox said, a sentiment that gets considerably murkier once the conversation turns to what happens to people already inside it.

Cox described a February meeting among the governors as almost startling in its unity. “We were together in February and having a conversation about immigration, and we were all shocked at the level of bipartisanship, cooperation, and agreement,” he said. “We were really stunned that everybody had kind of the same opinions on what needed to be done.” Bipartisan agreement among governors on loosening enforcement is not the reassurance Cox seems to think it is.

Ruffini asked the group for a show of hands on whether ICE and the Department of Homeland Security have been effective. Neither Cox nor Stitt raised one. Cox pointed to enforcement actions in Minnesota as a specific concern, citing “the violence and the deaths that we’ve seen” and calling the incidents “deeply problematic.” Stitt was even more blunt about his overall assessment. “We’re not using common sense right now,” he said.

Stitt’s example centered on a green card holder from Vietnam who has lived in Oklahoma City for 25 years. “We had a person from Vietnam that’s been in Oklahoma City for 25 years, legally in the United States, with a green card, working at Hobby Lobby,” he said. The man had self-deported after a marijuana arrest then returned to the country legally. “They’ve been a great citizen chasing the American dream, but they’ve been picked up for deportation now,” Stitt said. Gov. Moore added an economic gloss to the argument, saying a deportation agenda focused on criminals ought to travel alongside pro-growth policy rather than replace it.

Neither Republican governor has a great relationship with Trump, and both have clashed with him politically in recent years, which explains their break with him on immigration enforcement.

The Trump administration clearly isn’t on board. Trump won a second term in 2024 in part by promising to close a border that sat wide open for four years under Biden. Immigration has generally been the strongest issue for him, outperforming his approval numbers on the economy and foreign policy.

DHS Secretary Markwayne Mullin set the tone from inside the administration at the same NGA gathering, sitting beside Stitt and offering his own verdict on the odds of any of this actually happening. “Is immigration reform possible? No,” Mullin told the assembled governors. “Do you really need immigration reform? Yes, you do, but can we work with the system we have? Yes.”

Tyler Durden
Thu, 08/06/2026 – 10:45

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Musk Responds To French Green Leader’s Demand That X Be Shut Down

Musk Responds To French Green Leader’s Demand That X Be Shut Down

Update (1100ET): Upon seeing this exclamation from the dismally-polling Green leader. Elon Musk took to X (the platform she demands be shutdown for too much free-speechifying) to make some demands of his own…

As Remix News detailed earlier, French Green leader Marine Tondelier has reiterated her calls for social media platform X to be temporarily shut down, claiming its owner Elon Musk is using it to interfere in French politics and promote Marine Le Pen ahead of the 2027 presidential election.

Tondelier, general secretary of the Ecologists and a declared presidential candidate, suggested that suspending X for one month would improve political debate in France.

“If X were to stop for a month, it would do a world of good for the French public debate,” she said, as cited by Libération.

She claimed the platform could not be treated merely as a question of freedom of expression or freedom of enterprise because it was controlled from the United States by an owner seeking to influence European politics.

“This tool is owned by someone based in the United States, with a supremacist ideology, who clearly wants to push Europe into total submission to the United States,” Tondelier said.

She also accused Musk of wanting Le Pen elected and argued that his intervention exposed what she described as the “hypocrisy” of the National Rally’s patriotism.

“The algorithm of this social network is rigged,” she claimed.

“The ‘ratings’ meant to indicate the veracity of posts are now a source of further fake news.”

Tondelier also complained that environmental claims she posts on the platform are routinely challenged and said female politicians face persistent cyberbullying.

In January last year, she said, “This network must be banned in Europe. Whether I leave it or not, it will still have an impact on the real world. It will contribute to destabilizing the next elections,” adding that X was a “source of suffering, as a politician and as a woman.”

Her comments followed Musk’s public endorsement of Le Pen last month.

Responding to an American account discussing her polling strength and the possibility of mass deportations under a National Rally government, Musk wrote, “She is France’s last hope.”

Despite the outburst, Tondelier remains a marginal contender in the presidential race.

Recent IFOP polling places her support at about 4 percent, with other surveys putting her between 3 and 5 percent.

Le Pen, by contrast, is polling at approximately 35 percent and is strongly positioned to reach the second round of the election.

Read more here…

Tyler Durden
Thu, 08/06/2026 – 10:30

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Hyperscaler Bond Spreads Blow Out After Google Shocks With Another $25 Billion Bond Offering

Hyperscaler Bond Spreads Blow Out After Google Shocks With Another $25 Billion Bond Offering

After tightening sharply following last week’s (pre-Situational Awareness) rout which sent hyperscaler CDS to the widest on record, AI bond spreads are blowing out again this morning – with SpaceX bonds – which have quickly emerged as the fulcrum bond security of the AI world – plunging this morning on news that for the third time in a year, Alphabet which has emerged as the credit (both on and off balance sheet) nexus of the AI supercyle, is looking to raise another $25 billion from its latest US investment-grade bond offering, a deal that will again test investor appetite for AI-related debt following a July selloff when bond AI-linked bond spreads exploded to all time wides.

The offering, which will very likely be upsizied (just as the illl-fated SpaceX bond offering) will be Alphabet’s third since November.

In February, the Google parent issued more than $30 billion in new debt, including multiple non-US tranches. The offering followed a similar bond issuance from November 2025, when Alphabet sold $25 billion in debt, quadrupling its long-term debt to $46 billion. Since then Google’s debt has surpassed over $100 billion and is rising at an astronomic pace; one can only hope the rating agencies don’t notice. 

According to Bloomberg, Alphabet is offering notes in as many as 10 parts, with maturities ranging from two to 40 years. Initial price talk for the longest-tenored tranche is a premium of about 1.55 percentage points above Treasuries. No final decision has been made on the size, according to people familiar with the matter, however it is likely that – as always – there will be excess demand leading to significant oversubscription, with the bond then sliding after it starts trading.

Virtually every bank is an underwriter on the offering which will need all the help it can get: Bank of America, Citigroup, Goldman, JPMorgan, Morgan Stanley and Wells Fargo are managing the sale, Bloomberg said.

Alphabet’s offering comes one month after Amazon issued an identical amount of debt, and just two weeks after the company again raised its 2026 spending outlook, which triggered fresh worries about whether massive artificial-intelligence investments will pay off. Investor appetite for bonds to help fund capex cooled in July as Alphabet increased its forecast to as much as $205 billion, more than double 2025’s outlays.

Meanwhile, as the market finally started paying attention to good, old on-balance sheet debt, the flood of off-balance sheet continued with BlackRock last week selling $12.5 billion of bonds tied to a Meta data center SPV in Texas. Initial demand was very poor, following soft interest for an offering by Amazon.com.

Immediately afterward, bond spreads across the Hyperscaler sector blew out to record wides in the secondary market, as we reported on multiuple occasions. 

However, following the historic short squeeze in the past week (sparked by…. nobody really knows) sentiment improved again as August began, helped by gains in US Treasuries.

“We’ve had a few days now of positive reactions from investors across corporates and especially technology,” said Brett Kozlowski, portfolio manager at GW&K Investment Management. “But another large debt deal will still test the depth of that and be worth watching.”

Sure enough, after sliding by almost 20bps in the past week, hyperscaler spreads have already cut their gains in half after blowing out by almost 10bps since Tuesday, a move that is set to accelerate as even more debt comes to market.

Alphabet, which sold more than $50 billion of debt in the first half of 2026, and Amazon have led the AI-infrastructure borrowing spree. Alphabet last tapped the US high-grade debt market in February, before selling bonds in Swiss francs, British pounds, euros, Canadian dollars and Japanese yen. It also issued nearly $85 billion of shares two months ago.

The explosive growth in CapEx is why Alphabet posted its first quarter of negative cash flow since its 2004 initial public offering.

The hope is that at some point, all this massive investment will lead to a surge in EBITDA. The only problem is what happens if nearly-free Chinese open-weight models end up dominating the market while US hyperscalers duke it out in the biggest spending spree since the Nuclear arms race. And, as we reported overnight, that’s precisely what is happening. 

Tyler Durden
Thu, 08/06/2026 – 10:14

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“What the 2025-2026 Supreme Court Term Revealed About the Roberts Court”

This week I recorded an episode of the National Constitution Center’s “We the People” podcast on “What the 2025-2026 Supreme Court Term Revealed About the Roberts Court.” I was joined by Masha Hansford of Davis Polk & Wardwell, and the conversation was moderated by the NCC’s Julie Silverbrook. I enjoyed the discussion. I hope VC readers find it worthwhile.

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“What the 2025-2026 Supreme Court Term Revealed About the Roberts Court”

This week I recorded an episode of the National Constitution Center’s “We the People” podcast on “What the 2025-2026 Supreme Court Term Revealed About the Roberts Court.” I was joined by Masha Hansford of Davis Polk & Wardwell, and the conversation was moderated by the NCC’s Julie Silverbrook. I enjoyed the discussion. I hope VC readers find it worthwhile.

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Socialist Moment


Abdul El-Sayed | Andrew Roth/ZUMAPRESS/Newscom (edited)

Socialist calculation problem: Remember the libertarian moment? Well, this feels like the socialist moment. 

Young insurgent candidates on the left, many of whom have current or former ties to the Democratic Socialists of America, are winning in the Democratic Party. It’s basically the “socialism” rap from the 1998 Warren Beattie movie, Bulworth, played out in real life. And rather than fight back, the party’s leadership seems to be mostly embracing those left-of-center wins. 

Yes, as Shane Goldmacher reports in The New York Times, some avowedly moderate Democratic activist groups like Third Way want to fend off the takeover of what the group calls “radical, far-left candidates.” 

But the same article also notes that after progressive insurgent Abdul El-Sayed won yesterday’s big Senate primary in Michigan on a campaign that harshly critiqued the party’s center, “most party leaders—from Gov. Gretchen Whitmer of Michigan to Senator Chuck Schumer of New York to former Vice President Kamala Harris—quickly embraced Dr. El-Sayed’s Senate candidacy, given the stakes of the Michigan seat at the play.”

There are real questions, however, about whether El-Sayed can actually win that seat in November.

A separate Times story frames the upcoming midterm as a test of a long-running argument inside the party: “Since Senator Bernie Sanders exploded onto the national stage in 2016, progressives have argued that their party’s path to victory runs through a populist economic agenda that can attract a broad coalition of working-class voters. Centrists have pushed back, saying such proposals alienate the moderate voters the party must sway to win back areas where it has lost ground in recent years.” The centrists may have a point. 

In the days leading up to the vote, El-Sayed’s radical campaign looked like it would coast to victory. Some polls had him up by double digits. But in the end, he only won the primary by a narrow margin. 

His problem, it turns out, is that like so many of the party’s new radical-left up-and-comers, he doesn’t perform well with the party’s key voting blocks. Democrats know this. Puck reports that “Democratic lawmakers repeatedly pushed the D.S.C.C. [Democratic Senate Campaign Committee] to fund attack ads against El-Sayed,” focusing on his dicey associations with controversial characters like Hasan Piker.

One question going into the primary was whether a loudly left-leaning candidate would play outside of deep blue, highly educated coastal metro areas—places like New York’s so-called commie corridor

So who is the constituency for El-Sayed’s brand of fiery populism? Turns out that even in Michigan, it’s basically the same demographic that lives in New York’s commie corridor. 

As The Wall Street Journal notes: “El-Sayed topped [moderate rival Haley] Stevens in counties where bachelor’s degrees are plentiful, including those that are home to the University of Michigan and Michigan State. But he lagged behind in counties with lower educational attainment, a sign that working-class voters might be skeptical of candidates modeling themselves as champions of the working-class.” El-Sayed is not an outlier in this respect. The new working-class populism, it turns out, is not very popular with the working class. But with El-Sayed’s win, and others, Democratic leaders are standing behind it. 

Burrito Wars. Socialism is dividing the left. So what’s dividing the right? Burritos. Specifically, burritos that supposedly cost $20.

As is often the case with social media arguments, this one takes some twists and turns and doesn’t exactly proceed in an easy-to-follow, linear fashion. 

But Matt Yglesias had a terse, reasonably useful summary of how things went. 

In many ways, this is a debate about inflation.

Burritos don’t quite cost $20, unless you have them delivered (or you’re eating really fancy burritos).

And there are ways to economize on food, though they require some advance planning and responsibility. 

But food prices really have gone up since COVID-19, thanks first to inflation resulting from former President Joe Biden’s overspending, and then to price increases stemming from President Donald Trump’s tariffs, war in Iran, and labor crackdowns. 

But look deeper, and it’s really an argument between the right’s domestic populists and more internationally focused conservative hawks. 

The intra-right burrito debate basically has two camps: On the one hand, there are folks like Ben Shapiro, who are more supportive of the war in Iran (at least in theory, if not necessarily the precise way it has been executed), but who would also like to see an end to Trump’s tariffs and a revitalized focus on market-friendly domestic economic policy.

On the other side are right-wing war skeptics, some of whom have supported populist domestic economic policies, like tariffs. 

So which is the more important conservative priority: Trump’s unpopular tariffs or Trump’s unpopular war

Under Trump, it turns out, we get both


Scenes from the greater Boston area: Boston’s restaurants are in deep, deep trouble, reports The Boston Globe. I recently visited The Baldwin Bar, a fantastic Chinese bar/tiki bar hybrid in Woburn, Massachusetts, about half an hour from Boston proper. I’ve been several times before, and the food and drinks remain excellent. But even on a weekend night, it felt half empty. It’s a shame; Boston could use a great food scene. But regulations, taxes, and overall food-price inflation have made it tougher than ever to operate a restaurant. 


QUICK HITS

  • University of Cambridge professor Jason Arday, once vaunted as the youngest black professor in the university’s history, has resigned after mounting questions about plagiarism and fabrication in his academic work and personal history. Arday has denied academic malfeasance. But it has been pretty obvious that there were multiple serious problems with his work and his biographical claims; what’s notable is how long Cambridge and others stood by him. Arday has a book scheduled to come out next week. When The New York Times asked about the book in light of the scandal, the publisher “had no comment beyond the statement about Arday it released last week, citing ‘the professionalism and integrity he has brought to every stage of the publication.'” We’ll see how long that position can hold.
  • A Senate panel has obtained a copy of the iPhone Anthony Fauci used during COVID-19, reports The Wall Street Journal
  • The Department of Government Efficiency (DOGE), the government savings effort headed by Elon Musk, got a lot of details wrong, including touting some spending cuts that never actually happened, according to a new report from the Government Accountability Office. 
  • James Cameron, the blockbuster director behind Aliens, the first two Terminator films, True Lies, and Titanic, might finally be moving on from the Avatar films. I hope he makes some non-Avatar movies! 

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Supreme Court Term to Start Hot

Suncor Energy (USA), Inc. v. County Commissioners of Boulder County, the dispute over whether federal law preempts claims against fossil fuel companies for alleged harms from climate changes exacerbated by the companies’ alleged conduct, will be the very first case heard by the Supreme Court this October.

Grok

Suncor is obviously an important environmental case, but its significance is far broader. If the claims are allowed to proceed–and if the plaintiffs are able to overcome the other hurdles to making their case (a significant if)–quite a bit of money could be at stake. In addition, if the justices reach the merits, the case could dramatically alter the law of federal preemption.

Given the significance of the case, it should be no surprise that waves of amici filed briefs. By my count, there are forty top-side briefs supporting the fossil-fuel companies’ preemption claims, including a brief by the Solicitor General. There are also twenty-eight bottom-side briefs arguing against preemption (including mine).

Most discussion of the case–and, indeed, many of the amicus briefs–focus on the policy context. Accordingly, folks who want urgent action to address climate change tend to support the respondents, and those who are skeptical of such policies (or who are concerned about energy prices), support the petitioners. This is understandable, but threatens to obscure the underlying legal issues, as does conspiratorial talk about what shadowy interests are supporting one side or the other.

As I try to show in my brief, there is no statute or precedent that supports wholly preempting these cases. This does not mean the claims should succeed, nor does it mean there are no constitutional or other grounds to force a narrowing of the claims. But those other grounds are not encompassed by the question presented and are not being advanced by the petitioners. What is before the Court is whether federal law or the constitution wholly precludes bringing claims under state-law for interstate harms of the sort alleged here. It is a narrow question. It is also one that I think is relatively easy and straightforward. We will see if a majority of the Court agrees.

for those interested, here are my prior posts on this subject:

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#TheyLied Defamation Suit Over Sexual Assault Claims Involving High School Special Ed Students Can Proceed

From O.A. v. Devita, decided June 25 by L.A. Superior Court Judge Dean Kitchens, but just recently posted to Westlaw:

The following summary is derived from the allegations in Plaintiff’s complaint. Plaintiff is a high school boy with a disability who had a long-standing friendship with Defendant’s son, M.S., another boy with a disability. Plaintiff is diagnosed with rare and serious genetic conditions causing neurocognitive delays. He also has a language disorder, anxiety, and specific learning disabilities…. Plaintiff has known M.S. for seven years and have been in many of the same special education classes. They also were a part of the same soccer league.

On October 10, 2022, Plaintiff went to M.S.’s home for a playdate allegedly supervised by Defendant and M.S.’s stepfather …. On November 4, 2022, the boys had another playdate allegedly supervised by Defendant. On May 12, 2023, M.S. reported to his teacher that Plaintiff had pressured him to do “sexual things.” Plaintiff was suspended after the report pending an investigation.

During the initial investigation, Defendant allegedly posted several negative statements about Plaintiff on her Twitter account which were recognized by other members of the community. Defendant also allegedly called the coach of the boys’ soccer league and stated that Plaintiff had sexually assaulted M.S. After calling the coach, Plaintiff alleges that Defendant approached them at a softball game and stated that Plaintiff had pulled a knife on M.S. and been physically and verbally abusive since grade school. Plaintiff also alleges that Defendant used the soccer league’s member list to call other parents and warn them about him.

Plaintiff alleges that Defendant also called the director of Beyond Karate, where Plaintiff has been a participant, and told her that Plaintiff had assaulted M.S. She also allegedly communicated with other participants of the program, stating that Plaintiff had raped M.S. She also allegedly circulated a link containing documents related to her request for a restraining order against Plaintiff.

On June 16, 2023, the school concluded its investigation and determined that the actions between Plaintiff and M.S. were not forced. Defendant instituted separate proceedings that effectively expelled Plaintiff from high school for multiple months.

Plaintiff sued for, in relevant part, defamation, and the court allowed the case to go forward:

First, Defendant argues that the absolute defense of truth applies to each of her statements…. Here, Defendant presents evidence that Plaintiff admitted to the school principal he had not thought M.S. wanted to engage in sexual activity and that Plaintiff regretted his actions and admitted to “being dumb.” This evidence would tend to show the veracity of Defendant’s accusations that Plaintiff engaged in non-consensual sexual activity with her child.

Indeed, Defendant need not show the literal truth of every statement made. By proving that Plaintiff engaged in non-consensual sexual activity, Defendant would prove that the gist of her remarks were truthful. Thus, Defendant has met her burden of demonstrating the application of the complete defense of truth to Plaintiff’s cause of action for defamation.

Plaintiff must then demonstrate the existence of a triable issue of material fact. Plaintiff presents evidence that M.S. did not accuse Plaintiff of rape or sexual assault. Additionally, Defendant acknowledged that the principal did not believe the conduct described by M.S. was forced.

Indeed, Plaintiff’s suspension was later overturned, and he was exonerated of misconduct. This substantial evidence alone creates a triable issue of material fact as to the veracity of Defendant’s statements. Thus, the Court finds that Plaintiff has met his burden as well. Accordingly, the Court does not grant summary adjudication based on Defendant’s defense of truth.

Second, Defendant argues that her defamatory statements were opinions which are not provably false or true…. Here, Defendant presents evidence that she reconveyed the opinion of mental health professionals that M.S. had experienced “assault” and “physical abuse.” While it is true that whether certain actions qualify as assault or abuse may be a matter of opinion, accusations of the same imply facts capable of proof…. While sexual assault can describe a range of conduct, it is not a matter of opinion as it declares or implies facts. Thus, Defendant has not met her burden of demonstrating that her statements were a matter of opinion.

Third, Defendant argues that she acted with reasonable care in making her statements. To prove defamation, a private individual plaintiff must show that the defendant did not act with reasonable care in checking the truth or falsity of information before publishing it. Here, Defendant offers evidence that at the time she made alleged defamatory statements, she had been briefed by the school of Plaintiff’s assault and had been told by M.S. of the events. Based on this information from multiple sources, Defendant has met her burden of demonstrating that she acted with reasonable care in making the defamatory statements.

Plaintiff must then demonstrate the existence of a triable issue of material fact. Plaintiff submits evidence that Defendant failed to investigate what occurred on November 4, 2022, before accusing Plaintiff of assault. This was one of the dates on which M.S. allegedly reported he was assaulted. Yet Plaintiff submits evidence that Defendant did not ask M.S. what occurred that day or discuss the matter with Jason DeVita, even though he had been supervising the playdate.

A jury could determine that Defendant did not act reasonably in failing to properly investigate the matter before making accusations. Thus, Plaintiff has demonstrated that triable issues of material fact exist with respect to whether Defendant acted with reasonable care. Accordingly, the Court does not grant summary adjudication on this ground either.

Fourth, Defendant argues that her statements were privileged. Communications are privileged if made without malice to a person interested in that matter by one who is also interested. The privilege is recognized “where the communicator and the recipient have a common interest and the communication is of a kind reasonably calculated to protect or further that interest.” Once a common interest is demonstrated, it is the plaintiff’s burden to show that the defendant acted with actual malice in making false statements.

Here, Defendant has failed to demonstrate that all her statements are protected by the common interest privilege. Defendant argues that she made statements to a community of parents in the Santa Monica area with children with disabilities who fraternized together. These parents shared the interest of keeping their children safe.

However, whether these various individuals, including school parents, personnel, teachers, community members, and other people connected to the disability-serving program in which Plaintiff participated qualify as sharing a common interest is a disputed factual issue. Indeed, Plaintiff maintains that these individuals did not share a common interest under Civil Code section 47, subdivision (c). Defendant has not presented legal authority demonstrating that a common interest exists between all individuals who know or associate with Plaintiff. Thus, summary adjudication is not appropriate on this ground, either….

A plaintiff may recover punitive damages where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice…. In defamation cases, malice may be shown through Defendant’s having reasons to doubt the truth or having relied on unreliable sources or failed to verify them. Here, Plaintiff presents evidence that Defendant failed to check with witnesses to the alleged assault before making accusations. This evidence suggests potential malice through Defendant’s failure to verify her sources….

Ariel Harman-Holmes represents plaintiff.

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No Religious Exemption from Forum Selection Clause in Employment Agreement

From Luzingu v. Abbott Labs., Inc., decided Friday by Chief Judge Lance Walker (D. Me.):

Plaintiff came to Maine from Angola in 2016, following persecution based on his work as a Christian pastor. He took a position as a Production Group Leader at Defendant’s facilities in Westbrook and Scarborough, Maine, in November 2019. In April 2022, Defendant terminated his employment. Plaintiff alleges that Defendant discriminated against him on the basis of his race in the course of his employment and termination. He also alleges that Defendant retaliated against him after he engaged in protected conduct by making a scheduling decision that accommodated the needs of his Muslim subordinates during Ramadan.

The matter is currently before the Court because Plaintiff electronically signed Defendant’s Employee Agreement as a precondition to his employment, and the Agreement contains a forum-selection clause stating that only the federal and state courts of Illinois will have jurisdiction to hear Plaintiff’s claims….

Plaintiff argues that transfer would be unfair, unjust, and against public policies that favor the free exercise of religion and nondiscrimination. As alleged, Plaintiff is “the sole pastor at his church” and “leads three services per week.” Because of his religious calling and his duties, he maintains, “[t]raveling to Illinois for a deposition or trial would make it far more difficult for him to fulfill his pastoral duties than if the deposition or trial occurred in Maine.”

I am not persuaded that Plaintiff’s religious practices and duties as a pastor justify giving him a special dispensation to avoid application of the Forum-Selection Clause of the Employee Agreement that he acknowledges signing as a precondition to his promotion to a supervisory position. And as for the burden itself, assuming that a special dispensation might be appropriate based on individual needs pertaining to the inconvenience of a particular forum, the Defendant has indicated that Plaintiff’s deposition will take place in Maine.

Moreover, Defendant fairly observes that a trial in Illinois should take only a few days and that telecommunications technology enables Plaintiff to remain connected to his parishioners when court is not in session. I agree with Defendant that the limited time required to conduct a trial of this case in Illinois will not unduly disrupt Plaintiff’s religious observance, even if religious observance is a proper basis to nullify the consequences of a forum-selection clause.

As for Maine law or policy concerning discrimination based on religion, it is unreasonable to suspect that Defendant is enforcing the Forum-Selection Clause against Plaintiff in a selective manner based on the burden that litigation in Illinois would impose on his pastoral duties. Defendant has similarly moved to enforce its forum-selection clause in cases brought by plaintiffs who do not point to their religious practice as cause to avoid the consequences of the Forum-Selection Clause.

In any event, Plaintiff has not identified in Maine law a strong public policy that individuals should be spared the ordinary burdens of contract compliance in matters involving, for example, forum selection or mandatory arbitration because of a temporary interruption in their religious practices….

Plaintiff argues that being forced to litigate this case in Illinois would effectively deprive him of his day in court. In support, he argues that both the emotional and the financial toll of litigating in another state are too much for him. Plaintiff’s protests do not amount to a showing of grave difficulty or inconvenience tantamount to the practical denial of his day in court.

The plaintiffs’ bar in Chicago no doubt includes attorneys who would be enthusiastic to champion Plaintiff’s cause or help Plaintiff’s current counsel to do so. The rules and procedures that will be applied by a federal court in Illinois will be familiar if Plaintiff’s current counsel keeps the case. There is no reason to think that Plaintiff would be subject to any local prejudices in Illinois in terms of the jury pool.

Nor is it apparent that Plaintiff’s case imposes a substantial financial burden that contingent-fee counsel would be unwilling to assist with, particularly as discovery proceedings will look much if not entirely the same in either forum. Plaintiff’s arguments concern the ordinary toll associated with travel in support of litigation, which do not suffice as “grave.”

This leaves individual considerations related to Plaintiff’s religious practice and immigration status. Ultimately, I am unpersuaded that these considerations can fairly be leveraged to favor Plaintiff as compared to any other employee of Defendant who could not claim a special status based on religious practice or ethnicity or immigration status.

The import here is that Plaintiff should be treated like any other employee in his position, not that he should be favored based on his identity….

Hillary Joy Massey, Anthony S. Califano, and Christopher W. Kelleher (Seyfarth Shaw LLP) represent defendant.

The post No Religious Exemption from Forum Selection Clause in Employment Agreement appeared first on Reason.com.

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