Episode Transcript
Transcripts are displayed as originally observed. Some content, including advertisements may have changed.
Use Ctrl + F to search
0:00
If only life had a remote control, you could
0:02
pause or rewind. Well,
0:05
life doesn't always give you time to change
0:07
the outcome. But prediabetes does. Take the one-minute
0:09
risk test today at Do I Have prediabetes.org.
0:11
Brought to you by the Ad Council and
0:13
its prediabetes awareness partners. From
0:18
the opinion pages of the Wall Street
0:20
Journal, this is Potomac Watch. The
0:24
Supreme Court hears oral arguments in
0:26
two big cases, one on a
0:29
judge-made constitutional right to homeless camping,
0:32
and the other that could limit the
0:34
power of union complaints to strong arm
0:36
businesses into settlements. Welcome, I'm
0:38
Kyle Peterson with the Wall Street Journal. We
0:41
are joined today by my colleagues, columnists
0:43
Alicia Finley and Kim Strassl. Let's
0:46
start with the argument at the
0:48
Supreme Court on Monday. That one
0:50
was City of Grants Pass, Oregon
0:52
versus Johnson. Grants Pass is
0:55
a town of about 38,000 people
0:57
that is being blocked by the federal courts
1:00
from enforcing its ban on
1:02
homeless encampments. And here is
1:04
a piece of what it says in its brief to the justices.
1:07
The Eighth Amendment's cruel and unusual
1:09
punishments clause prohibits certain methods of
1:11
punishment. Those that are cruel and
1:13
unusual, but the Ninth Circuit has
1:15
held that the clause forbids governments
1:18
from imposing any punishment, not fines,
1:20
not short jail terms, not anything,
1:22
for camping on public property when
1:25
such conduct flows from the purported
1:27
status of being involuntarily homeless. And
1:30
here is the reply from Gloria
1:32
Johnson and John Logan to homeless
1:34
residents of Grants Pass. They say,
1:36
the challenged ordinances are not camping
1:39
regulations in any ordinary sense of
1:41
the word. By design, they define
1:43
camping so expansively that it is
1:45
physically impossible for someone without access
1:47
shelter to live in Grants Pass
1:49
without risking punishment. Alicia, what do
1:51
you make of this case and
1:53
the argument that the judges heard
1:55
on Monday? So this case
1:58
actually expands on another. case
2:00
that was also determined in the
2:02
Ninth Circuit that involved the city
2:04
of Boise, Idaho, that
2:07
was known as Martin. And in the
2:09
Supreme Court, it essentially extended the logic
2:11
there that it is, quote unquote, cruel
2:13
and unusual punishment under the Eighth Amendment
2:16
to enforce any kind of laws that
2:18
ban camping on public streets and property.
2:21
In this case, it extended to
2:23
criminal sanctions rather than nearly
2:25
civil fines or civil sanctions.
2:28
And also added that the
2:30
way to determine if somebody
2:33
is, quote unquote, involuntarily homeless,
2:35
if the number of people
2:37
who are on the streets
2:39
exceed the number of available
2:41
beds. And here, the
2:43
Ninth Circuit hilariously determined that
2:45
beds at religious shelters like
2:47
Salvation Army or those, those
2:49
really don't count as available
2:51
beds because that would violate
2:53
the establishment clauses of
2:56
the Constitution and the Supreme Court's
2:58
lemon test, requiring a strict
3:00
separation between church and state. So
3:03
those beds don't count as available. Neither
3:06
do any kind of space in the
3:08
warming shelters like during the winter, because
3:10
while those are only really open during
3:12
the winter, there were any places in
3:14
sobering centers, so places where people would
3:16
be required to stay sober, not use
3:18
drugs or alcohol. Those aren't
3:20
available because they would require people to
3:23
change their behaviors. I
3:25
cannot understand how radical this
3:27
ruling is. And
3:30
to emphasize and stress that almost
3:32
all major cities on the West
3:35
Coast and in the Ninth Circuit
3:37
jurisdiction weighed in with friend of
3:39
courts' briefs saying that this is
3:42
severely impairing our ability to
3:44
enforce public order and to keep
3:46
our streets clean. Let's listen
3:48
to a piece of the oral argument. First
3:50
here is Chief Justice John Roberts asking
3:53
a question to the attorney for Grants Pass, DeAni
3:56
Evangelis. What will
3:58
the city do if you don't prevail here? The
4:00
city's hands will be tied. It will be forced
4:03
to surrender its public spaces
4:05
as it has been. Unfortunately,
4:08
beds are going unused at the
4:10
gospel rescue mission. People are not
4:12
getting the help that they need.
4:14
The city is under an injunction
4:16
here, and it's unable
4:18
to rely on these basic
4:20
ordinances. And the Ninth
4:23
Circuit's decisions give cities, like Grants
4:25
Pass, no guidance about how they
4:27
can navigate this very challenging area.
4:30
The Ninth Circuit has effectively
4:33
imposed a municipal
4:35
code under the Ninth Circuit's
4:38
Martin rule to regulate what the
4:40
city can do in its public
4:42
spaces. And here's that
4:44
same attorney tangling with Justice Sonia
4:46
Sotomayor. We think that it is
4:48
harmful for people to be living
4:51
in public spaces on streets and
4:53
in parks, whatever bedding materials. And
4:55
humans are living in those conditions.
4:57
We think that that's not
5:00
compassionate and that there's no safety in the
5:02
house. Oh, it's not, but neither is providing
5:04
them with nothing to alleviate
5:06
that situation. This is a
5:08
difficult policy question, Justice Sotomayor.
5:11
It is. Where do we put them as every city,
5:14
every village, every town lacks
5:18
compassion? And Pass is
5:20
a law identical to this. Where
5:23
are they supposed to sleep? Are they supposed
5:25
to kill themselves, not sleeping? So
5:28
this is a necessity defense, as I
5:31
mentioned, under Oregon law is available. States
5:34
are able to address these concerns.
5:36
This is a complicated policy
5:39
question. Kim, I guess I come out sort
5:41
of where that attorney does that. Maybe this
5:43
is a question for people in those
5:45
cities, for people in those states.
5:48
What is the best way to deal with the problem
5:50
of homelessness? I find myself
5:52
scratching my head trying to figure out
5:54
how Justice Sotomayor thinks that that's
5:56
going to be decided by these nine judges at
5:58
the Supreme Court. Yeah, I think there's
6:01
a couple of things to address here. I mean,
6:03
first of all, I just would like to drill
6:05
into the illogic of what
6:07
Sonia Sotomayor was saying there, when
6:09
she's saying there's no place to
6:11
go. And I want to
6:14
underline one thing that Alicia said when
6:16
she was making the point about how
6:18
radical this is, is that to believe
6:20
the argument that's being put forward by
6:22
advocates for be homeless, you
6:25
have to actually buy into that
6:27
argument that this is entirely an
6:30
involuntary state and that there really
6:32
is no option. But as
6:34
Alicia pointed out and as the attorney
6:36
pointed out for Grants Pass, there are
6:38
beds available. There are lots of beds
6:40
available. When people say that
6:42
the homeless should be able to have
6:44
a place to stay, we need
6:46
to be very clear about what they're actually
6:48
saying. They're saying they should have a bed,
6:51
but they should also not be subject
6:53
to any rules whatsoever. They shouldn't have
6:55
to be asked to deal
6:58
with a drug or alcohol abuse
7:00
situation. They shouldn't have to be asked
7:02
to maybe take part in a program
7:05
that would try to get them back
7:07
on track into regular housing with a
7:09
job. They should be able
7:11
to just simply either have that bed or
7:13
camp on the street, no matter what
7:16
kind of consequences there are for the
7:18
broader community. So that's
7:20
one argument, which is just simply the
7:22
fallacy of the claim that this is
7:24
involuntary, because it also doesn't get to
7:26
the fact that there are many people
7:28
who prefer to not go into
7:31
shelter. They want to be living on the
7:33
street. And that is something that the homeless
7:35
community has long told us that we're meant
7:37
to respect the fact that if they don't
7:39
want to be housed, then why should they
7:41
have to be housed? The question then becomes,
7:43
why should the rest of the community have
7:45
to have them on public property when there
7:48
are other alternatives? But you bring
7:50
up another question, Kyle, which was a
7:52
big focus of many of the justices
7:54
and the questions, which was the complexity
7:57
of this and also the dueling obligations
7:59
of... city officials. There are lots
8:01
of things that money must be
8:03
spent on in the name of civil
8:06
society and many of them are also
8:08
very important too. Justice John Roberts said,
8:10
are we really going to make the
8:12
decision here at the Supreme Court about
8:14
whether or not a community
8:16
like Grants Pass has to spend its
8:19
money on more shelter beds or
8:21
whether or not it's going to fix its lead
8:23
pipe problem. I mean, not saying Grants Pass has
8:25
one, but for example, or give
8:27
out food assistance to people or for
8:30
instance, more health care dollars. So
8:33
it's a very complex question also about who
8:35
decides how many beds there are and how
8:37
does that work. And that I think the
8:39
Supreme Court in some ways, just at a
8:41
very broad level, many of
8:43
the justices were pointing out the ridiculousness
8:46
of the notion that nine people sitting
8:48
in Washington can sort out the homeless
8:50
situation in a place like Grants Pass.
8:53
Hang tight. We'll be right back in a minute. If
8:56
only life had a remote control, you
8:58
could pause or rewind. Well, life doesn't
9:00
always give you time to
9:02
change the outcome, but prediabetes does take the
9:05
one minute risk test today at do I
9:07
have prediabetes.org brought to you by the ad
9:09
council and that's prediabetes awareness partners. Welcome
9:15
back. A couple other thoughts that I
9:17
would throw out here. Here is the
9:19
full text of the eighth amendment. Excessive
9:21
bail shall not be required nor excessive
9:23
fines imposed nor cruel and
9:26
unusual punishments inflicted. And
9:29
so the idea that you can
9:31
read into that some sort of
9:33
prohibition on making camping in
9:35
public illegal if there is not
9:37
a certain number of shelter beds
9:39
defined in a certain way, it
9:41
strikes me as pretty atextual. And
9:43
I get that not everyone on
9:46
the Supreme Court is a textualist first, but
9:48
it seems to me that a majority of
9:50
those justices probably are. Another
9:53
is that my understanding is that these kinds
9:55
of laws, at least are often used as
9:57
a way of giving cities
9:59
some leverage to get people into drug treatment
10:01
programs and so forth. If it's Kim described
10:03
before the break, they don't want to do
10:06
that. If they kind of like being on
10:08
the streets and they don't want to quit
10:10
using whatever substances they might be abusing, these
10:12
kinds of ordinances are one way to get
10:14
them the help that they need instead of
10:17
just allowing them to
10:19
continue existing on the
10:21
streets or in public parks. Another
10:23
thought, and Alicia you mentioned this a
10:25
minute ago, is the remarkable cross-partisan
10:29
support here for Grants
10:31
Pass' position, the mayor of San Francisco.
10:33
I think Governor Gavin
10:35
Newsom, California's governor, who is no
10:37
conservative, has been backing up Grants
10:39
Pass here. But there is a
10:42
brief by a different set
10:44
of states. This is Maryland, Illinois,
10:46
Massachusetts, Minnesota, New York, and
10:48
Vermont, another set of blue states
10:51
that is going against Grants Pass.
10:53
And they make kind of a
10:55
fascinating argument, which is that this
10:58
is not really a restriction
11:00
on the ability of cities
11:02
to deal with the homeless
11:04
problem because they argue, Alicia,
11:06
that cities could restrict the
11:08
sites of encampments, they
11:10
could limit fires and so forth, they
11:12
could provide security for these places, and
11:14
then they have this line, a town
11:17
near Sacramento gives camp residents $20 gift cards in
11:20
return for begging their trash,
11:23
saving the town thousands in
11:25
public cleaning costs while maintaining
11:27
a working relationship between the residents
11:29
and town authorities. And so
11:31
kind of an amazing argument to my
11:33
eye, Alicia, they're saying that Grants Pass
11:35
is just not being creative enough in
11:38
trying to solve this homelessness problem. Well
11:40
I think this is a little bit of the
11:42
pot calling the kettle black. These states, Illinois, New
11:44
York in particular, but some of the others that
11:47
signed on to this brief, Maryland
11:49
and Massachusetts, are not exactly paragons of
11:51
clean streets. They're homeless people all
11:53
over New York City
11:55
subways and lying on the
11:57
streets. Some of them aren't
11:59
dangerous. but many of them are mentally
12:01
ill, addicted to drugs, and do pose
12:03
a public threat. And they, these cities
12:06
have, well, they also, they've tried to
12:08
deal with these numerous ways and tried
12:10
to provide shelter, but it hasn't worked.
12:12
And the same is true in California,
12:14
which has undertaken perhaps the
12:16
biggest experimentation or experiment with
12:19
this housing first policy that
12:21
Governor Newsom has rolled out,
12:23
which is basically you need
12:25
to provide housing for anyone
12:27
who's homeless. And you can't
12:29
attach any kinds of strings or conditions, which is
12:31
what these other states argue in their
12:33
amicus briefs is that, well, if
12:36
only these cities provided cool housing
12:38
first, and they didn't attach these
12:40
difficult conditions of providing them to
12:43
stay sober or follow certain behavior
12:45
rules, then they wouldn't have homeless
12:47
problems, which is just a hooey, because
12:49
if you look at California, it's done
12:51
that. In fact, there was a state
12:54
auditor report that came out a couple
12:56
weeks ago that showed that the state has
12:58
spent $24 billion basically
13:00
on this housing first policy. And
13:02
what has gotten in result? Well,
13:04
homelessness has increased by more than
13:06
a third since 2013. And
13:09
now again, some of that is
13:11
because of Prop 47 would decriminalize
13:14
any kind of use of drugs
13:16
and shoplifting and such, and made it
13:18
easier for a lot of people to just stay
13:20
out on the streets. But a lot
13:22
of that, by the way, has also
13:24
to do with this Ninth Circuit ruling
13:27
that has made it harder for the
13:29
city leaders to leverage any kind of
13:31
criminal penalties or civil
13:34
citations for lying on
13:36
the streets or camping out on
13:38
sidewalks, parks or whatnot, and force
13:41
them into treatment, as you first
13:43
noted. This has been the housing
13:45
first policy that Newsom and some
13:47
other liberal states have championed. It
13:50
has been a terrible failure. And
13:53
we keep seeing that in Santa
13:55
Monica is now paying $1 million
13:57
per housing unit to put up
13:59
homeless people. They're spending billions
14:01
of dollars when the real problem
14:03
is again the incentives and other
14:06
policies that encourage homelessness. Kim,
14:08
do you think the writing is on the
14:11
wall here, not only because of this coalition
14:13
across the aisle in support of the City
14:15
of Grants Pass here, but because we have
14:17
a pretty textualist Supreme Court that is going
14:20
to be looking at the actual words of
14:22
the Eighth Amendment. And I
14:24
doubt that they will find some sort of protection for public
14:26
camping in it. I don't know about you. Yeah,
14:29
I agree with that. I think there's
14:31
a number of reasons for it, not
14:33
just that they are textualists, not just
14:35
the complexity argument. But I
14:38
think that there was a creeping understanding
14:40
here too that behind the push
14:42
for this and the homeless advocates who
14:44
are arguing this case, and you heard
14:47
this word a lot in the oral
14:49
arguments, was that they want to essentially
14:52
create what they call a new status
14:54
of people, which is the
14:56
homeless community, and that that
14:58
status provides you or requires
15:01
that you be given certain things
15:03
as a result, constitutionally as it
15:05
were. And I
15:08
think that there's a wariness about that.
15:10
You actually had John Roberts on the
15:12
court said, are we really talking about
15:14
a status here versus a situation of
15:16
conduct? And there was a
15:18
lot of discussion about the fact that this choice
15:21
was involved in this. That
15:23
does make things a little bit different than
15:25
declaring a status on a certain sort of
15:27
issues that truly are beyond their
15:30
control. And there's an
15:32
almost slippery slope argument here to be
15:34
made that if you're going to go
15:36
down the road of declaring a whole
15:39
new status of a community and certain
15:41
rights that they must be afforded, what
15:44
else could you read into the
15:46
Constitution that would also require government
15:49
to provide certain things or give up
15:52
all of its other ability to engage
15:54
in public safety and
15:56
other duties that it had.
15:59
So I guess you could. You can argue that that's
16:01
a textualist reading, but also a
16:03
concern about if you decide to
16:05
abandon that textualism, where things lead
16:07
and the chaos that could come.
16:09
Hang tight, we'll be right back after one more
16:11
break. WSJ Special Access gives
16:14
you a front row seat to
16:16
some of the Wall Street Journal's
16:18
most exciting content, like The Quirkier
16:20
Side of Life, a new series
16:22
that features the fun, surprising stories
16:24
our reporters come across. The
16:27
chief executive walks 10,000 barefoot steps
16:29
every day. He recalls stepping on a
16:31
bee, which put him off earthing for
16:33
a couple of days, but he got
16:35
back to it. Check out The
16:37
Quirkier Side of Life on WSJ
16:40
Special Access, only for WSJ subscribers.
16:45
Don't forget you can reach the latest
16:47
episode of Potomac Watch anytime. Just ask
16:49
your smart speaker, play the opinion of
16:52
Potomac Watch podcast. From
16:56
the opinion pages of the Wall Street
16:58
Journal, this is Potomac Watch. Welcome
17:03
back. Let's turn to the oral argument
17:05
at the court then on Tuesday. This
17:07
was a case called Starbucks versus McKinney.
17:10
And I gather that this has to do with whether
17:12
the National Labor Relations Board gets a shortcut
17:15
in federal court when it wants an
17:17
injunction after a union
17:19
complaint. And let's listen
17:21
to the piece of the oral argument.
17:24
This is Justice Katanji Brown Jackson asking
17:26
a question of Lisa Blatt, the lawyer
17:28
arguing for Starbucks. They have
17:30
only asked for this kind of injunction
17:32
in a very, very
17:34
small number of cases. 20,000
17:38
complaints are filed with the board. 700
17:41
results in board action. And
17:43
of those 700 that the board is investigating
17:45
and doing and determining, they've asked this for
17:48
this kind of injunction 14 times. So
17:51
I mean, I appreciate that maybe
17:53
the standards we need to look at
17:55
and I understand four factors versus two factors, but
17:57
this is not sounding like a huge problem. Well,
18:01
restraint is not a basis for deference and
18:03
whether or not it's a huge problem,
18:05
what petitioner wants is just a level playing
18:08
field, the normal injunctive factors that agencies
18:10
and private parties should get. So even if
18:12
the board only sought one injunction, can
18:15
you please hold that the four factors apply? Alicia,
18:17
what's your read of this case and maybe the place to
18:19
start is with what was the complaint
18:22
that was lodged against Starbucks? So
18:24
what happened here is SEIU
18:27
worker affiliate called Workers United
18:29
has been seeking to unionize
18:31
and organize a bunch of its
18:33
stores across the country. And I would just
18:36
point out this is a pretty radical
18:38
progressive union and they've been
18:41
pretty out front in
18:43
terms of the anti-Israel protests. But
18:45
that aside, what happened
18:48
at Starbucks in Memphis, Tennessee
18:50
is six Starbucks employees wants
18:53
their plans to unionize the store. And
18:55
when stores closed, these employees unlocked
18:58
the door and let in a
19:00
news crew, a local news crew
19:02
without the management authorization to interview
19:04
some workers to kind of draw attention
19:06
to the union cause. Now
19:09
this essential break in violated
19:11
the company policy and
19:13
Starbucks fired several workers who were
19:15
responsible. So what did the union
19:17
do? Well, they filed a complaint
19:20
with their friends at the NLRB
19:22
and claimed that firing the workers
19:24
constitute an unfair labor practice because
19:26
they were retaliating against their right
19:28
to engage in concerted activity. These
19:31
NLRB regional directors are generally very
19:34
sympathetic to the unions, issued
19:36
an administrative complaint and then
19:38
petitioned a federal judge for an
19:41
injunction ordering Starbucks to
19:43
reinstate the employees and expunge
19:45
an unrelated discipline citation for
19:47
one of them. And
19:49
then among other things require that essentially
19:52
would have hemmed Starbucks in in
19:54
various respects. And
19:57
as it happens, the district court ruled in...
20:00
of the unions actually as typically
20:03
happens under a two-part
20:05
test rather than the Supreme
20:08
Court's traditional four-part test for seeking
20:10
a preliminary injunction. In the
20:12
standards that usually apply for almost every
20:14
case, when a party seeks a
20:17
preliminary injunction you have to demonstrate that
20:19
you're likely to see the succeed on
20:21
the merits that you will suffer irreparable
20:23
harm in the absence of preliminary reason.
20:26
There's a balance of equity tips in your
20:28
favor and then injunction is in the public
20:30
interest. Now the Sixth
20:33
Circuit going back decades set
20:35
a more lenient standard for the
20:37
NLRB and said that while the
20:39
NLRB merely must show that there
20:41
is reasonable cause to believe that
20:43
unfair labor practices have occurred and
20:45
injunctive relief is just improper. Now
20:47
this again is far easier
20:49
to meet for the NLRB than the
20:52
four-part test and really
20:54
use the equities or tips the
20:57
scales in favor of the NLRB.
20:59
So the district court judge deferred
21:01
to the NLRB and Starbucks
21:04
ended up contesting this in an
21:06
administrative proceeding that continues actually to
21:08
this day and actually also saw
21:10
legal discovery to show that the
21:12
NLRB was
21:15
kind of acting in concert with
21:17
the union and what did the
21:19
NLRB or general counsel do? Well
21:22
then she actually accused Starbucks of
21:24
committing an unfair labor practice act
21:26
by subpoenaing some records and
21:28
all this just goes to show how
21:31
the due process rights of employers are
21:33
really violated by this
21:35
anomalous two-part standard that the Sixth
21:37
Circuit has created. And the
21:39
importance of this is that if
21:42
a lower standard allows union complaints
21:44
to get easier junctions within
21:46
the jurisdiction of the Sixth Circuit
21:49
that makes settlements and so forth much
21:51
more likely because it gives these labor
21:53
unions more leverage against
21:55
the employers that they're complaining about.
21:58
And Kim by the way if this is a
22:01
Sixth Circuit rule only. It seems like the
22:03
Supreme Court is maybe overdue in stepping in
22:05
and cleaning up what they call a circuit
22:07
split, which is a different of interpretation of
22:09
the law that is reigning in one area
22:12
of the country versus the rest of the
22:14
country. Yeah, absolutely. And one that
22:16
has given the NLRB just way
22:18
too much power because what happens
22:20
is essentially under this standard, the
22:23
lower courts when you have these
22:25
end up having to defer to
22:27
the board allegations, even if those
22:29
allegations are later contradicted, and injunctions
22:33
also interfere with the kind of
22:35
day-to-day operations of an employer's ability
22:37
to do their work. They, you
22:39
know, often they, again, they have
22:42
to rehire back employees at expensive
22:44
levels, and these things can
22:46
stay in effect as well until
22:48
the NLRB has time to fully
22:50
adjudicate the case, and that can
22:52
take absolutely years. And so what
22:54
the NLRB does is uses these
22:56
injunctions as a bludgeon against companies
22:58
to get them to simply settle
23:01
and not see the cases all the way
23:03
through, and they actually brag about this. The
23:05
agency does them. I think half of all
23:07
cases with injunctions since 2010 have
23:10
resulted in settlements, and they're proud of
23:12
that fact. They say, you know, injunctions
23:14
are a strong catalyst for settlement. So
23:17
it's clear that they're using them and abusing
23:19
them, and this situation is
23:21
giving them the power in certain
23:24
situations to really beat on
23:26
corporations in a way that just isn't
23:28
allowed in some other places. So it
23:31
would be great to put them in
23:33
place, especially because there are dozens of
23:35
other federal agencies that are required to
23:38
follow the traditional injunctive relief standard, and
23:40
there seems to be no reason whatsoever
23:42
why the NLRB has this carve-out in
23:44
this one district. Thank you, Kim
23:47
and Alicia. Thank you all for
23:49
listening. You can email us at
23:51
pwpodcastatwsj.com. If you like the show,
23:53
please hit that subscribe button, and
23:55
we'll be back tomorrow with another
23:57
edition of Potomac Watch.
Podchaser is the ultimate destination for podcast data, search, and discovery. Learn More