⚖️ LWIL #109: Boeing’s Stolen Tech, Data Breaches, Fraud Trial Bribes, and More
What's on the docket this week:
Featured Story
Judicial Shenanigans: NC Supreme Court Gives GOP Judges a Free Pass on Violations
The North Carolina Supreme Court, with a Republican majority, decided to let off two GOP judges who openly admitted to breaching judicial conduct codes. This move defied the Judicial Standards Commission’s recommendations for public reprimands for the judges. One judge wrongfully jailed a witness, while the other exacerbated a courtroom altercation, resulting in a defendant's death. This selective leniency underscores the troubling politicization within the judiciary. Judges are meant to be the ultimate impartial umpires. When partisan considerations seem to outweigh justice and accountability, it raises serious questions about impartiality a
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🗄 IP/Transactional
Boeing’s Stolen Tech
A Seattle jury handed Boeing an $81 million slap on the wrist for misappropriating trade secrets from the failed electric airplane startup Zunum, which the judge could triple to nearly a quarter of a billion dollars. Zunum accused Boeing of underhandedly pilfering its proprietary technology under the guise of investment, only to sabotage its business plans and woo potential investors like Safran and United Technologies. The jury agreed, branding Boeing's actions as “willful and malicious.” Boeing, predictably, plans to appeal, dismissing the case as a tale of a startup that promised the sky but delivered nothing but vapor trails. Judge Robart now faces the daunting task of finalizing the damages, with Zunum poised for a potentially hefty payout unless Boeing’s appeal manages to clear the runway. Meanwhile, Boeing's development of electric aircraft remains purely theoretical, proving that in this high-stakes drama, reality sometimes bites harder than fiction.
🤺 Litigation
Data Breach Suit Against ABA Tossed
In a case that likely left the American Bar Association (ABA) sighing in relief, a federal judge in New York dismissed a class action lawsuit brought by two members over a 2023 data breach. U.S. District Judge Nicholas G. Garaufis ruled the plaintiffs, Tiffany Troy and Eric John Mata, failed to pinpoint specific security lapses beyond the ABA's use of hashed and salted passwords, which transform plain text passwords into secure cybertext. While Troy and Mata alleged breach of an implied contract and violations of consumer fraud laws in New York and Texas, Garaufis found their claims lacked the necessary detail. The judge noted the plaintiffs didn't specify which of Texas' 34 banned deceptive practices were at play, nor did they allege actually reading the ABA's privacy policy pre-breach. Thus, the ABA emerged unscathed, at least for now, as the plaintiffs can still amend their complaint.
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📲 Legaltech
Google’s AI Answers Could Come Back To Bite
Google’s latest AI trickery promises to answer your burning questions directly, rather than simply linking you to websites. Introducing "AI Overviews," Google aims to dazzle U.S. users by responding to queries right at the top of search results, eliminating the old-fashioned need to click through pages of links. This innovation, fresh out of their developer conference, is touted as a game-changer but comes with its own set of legal headaches. While Google historically hid behind Section 230 for linking users to potentially dodgy info, this legal shield might not cover AI-generated answers. Legal eagle James Grimmelmann from Cornell warns that if Google’s AI "hallucinates" (yes, that’s a technical term) and delivers faulty advice, Google could be directly in the firing line. With cases already cropping up, like ChatGPT’s misstep involving a conservative radio host, the risks are far from hypothetical. Google's own demo blunder—misadvising on film camera maintenance—showed just how easily AI can err. As AI answers become the norm, the legal landscape will need a serious makeover, and whether that spells progress or peril depends on whom you ask.
🔪 Criminal/Politics
Fraud Trial Juror Reports Bribe Attempts
A juror was dismissed for reporting a $120,000 bribe to acquit seven defendants accused of pilfering $40 million from a pandemic food program. Assistant U.S. Attorney Joseph Thompson aptly called this an “outrageous” act, more fitting for Hollywood than a real trial. This case is the tip of the iceberg in a $250 million fraud involving 70 defendants, with 18 already pleading guilty. The scheme saw funds meant to feed children during the pandemic instead lavished on luxury items, while defense lawyers argue it’s merely a case of sloppy bookkeeping amid fast-changing program rules. The jury remains sequestered as Judge Nancy Brasel ensures no further tampering, though defense attorneys find the bribery claim “troubling and upsetting.” The accused, linked to a restaurant involved in the aid program, now face increased scrutiny, with their phones confiscated and the trial’s integrity hanging by a thread. The scandal underscores the abuse of pandemic relief funds, with nonprofits allegedly creating fake invoices and laundering money, leaving taxpayers footing a hefty bill.
💰 Finance/Econ/Regulatory
Homelessness Coast To Coast
Boise, Idaho, a picturesque city nestled against scenic foothills, hides a less charming reality in its alleys and dead ends, where Robert Martin spent 15 years of intermittent homelessness. With shelters often full, Martin found refuge under overpasses and on cement stairwells, despite Boise's law against sleeping on public property. Enter Howard Belodoff of Idaho Legal Aid Services, who saw this as a constitutional issue and filed the landmark case Martin v. Boise, arguing the city's actions violated the 8th Amendment's ban on cruel and unusual punishment. The 9th Circuit Court of Appeals agreed, ruling in 2018 that cities cannot criminally prosecute people for sleeping in public if no shelter is available. This decision, however, has drawn criticism from city officials like San Francisco's Mayor London Breed, who blame it for exacerbating local homelessness issues. The Supreme Court is now poised to decide whether this precedent will stand, impacting homeless policies nationwide. As the nation awaits the decision, the core legal question remains: can cities criminalize homelessness without providing alternatives?
⚖️ Ethics
When You Show Up To Your DUI Sentencing…Try Not To Be Drunk
Discipline: In jail.
Until next week, adjourned.
Keith & Tracey
p.s. - please send me your stories, news, & tips for inclusion in future editions keith@lawsidebar.com