+ States allege funding halt is political retaliation

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The Daily Docket

The Daily Docket

A newsletter by Reuters and Westlaw

 

By Shruthi Krishnamurthy.

Good morning. A federal judge will hear an emergency request by New York and New Jersey to restore funding for the Hudson River tunnel. Meanwhile, the D.C. Circuit will take up the Trump administration’s appeal of an order blocking it from imposing a sweeping federal funding freeze. Plus, this week's Billable Hours highlights critical tension in whistleblower law. And here's a black hole that continues to belch years after chewing up a star. Cosmic indigestion, perhaps? Wishing you a stellar Friday!

 

US judge sets Friday hearing on suit to restore New York tunnel funding

 

REUTERS/Kevin Lamarque

U.S. District Judge Jeanette Vargas in Manhattan will hold a hearing at 1 p.m. ET on an emergency request by New York and New Jersey to force the restoration of funding for the $16 billion Hudson River tunnel, a linchpin of rail travel between the two states, before construction is set to halt today.

Why it matters: Any failure of the existing Hudson tunnel, which was heavily damaged by Hurricane Sandy in 2012, would cripple commuting in the metropolitan area that produces 10% of U.S. economic output.

Context: The states claim the U.S. Department of Transportation suspended funding to retaliate against New York Senate Democratic Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries for rejecting President Trump's budget. They are seeking a temporary restraining order to stop the DOT from withholding funding for the Biden-era project. Read the complaint.

 

Coming up today

  • Government: The D.C. Circuit will hear the Trump administration's appeal of an injunction blocking an effort early in the president's tenure to freeze federal loans, grants and other financial assistance. 
  • Immigration: The Trump administration faces a deadline to inform U.S District Judge Richard Stearns in Boston whether it will on its own rectify an admitted mistake it made by deporting a college student to Honduras in violation of a court order after she was detained while traveling home to spend Thanksgiving with her family in Texas. 
  • SCOTUS: Retired U.S. Supreme Court Justice Anthony Kennedy is scheduled to speak at the Society of the Four Arts in Palm Beach, Florida.
  • Luigi Mangione, the man accused of gunning down a health insurance executive outside a Manhattan hotel, is due in the New York Supreme Criminal Court after a judge called a hearing for unspecified reasons. Last week, U.S. District Judge Margaret Garnett in Manhattan dismissed murder and weapons charges against Mangione.

Court calendars are subject to last-minute docket changes.

 

More top news

  • Trump administration names 33 new immigration judges, many with military backgrounds
  • Treasury's Bessent defers to DOJ on Trump's lawsuit against IRS
  • Pardoned January 6 rioter pleads guilty to threatening US Democratic leader Jeffries
 
 

Industry insight

  • A group of U.S. states is fighting a whistleblower’s bid for a cut of their multibillion-dollar opioid settlement with retail pharmacy giant Walgreens, arguing the deal was negotiated to fund opioid-crisis response and not to reward a private tipster. Find out more in this week’s Billable Hours.
  • The U.S. Senate confirmed two of President Trump's latest nominees to serve as federal judges, including a former law clerk to U.S. Supreme Court Justice Clarence Thomas, and a lawyer who challenged the participation of transgender athletes in collegiate women's sports. Find out more.
  • Federal prosecutors plan to increase incentives for companies that cooperate during criminal investigations, including promises not to prosecute them, U.S. Attorney in Manhattan, Jay Clayton said. Read more here.
  • Jurors at the criminal tax trial of Thomas Goldstein heard key parts of an interview he gave to legal affairs journalist Jeffrey Toobin, whose news article profiling the former U.S. Supreme Court lawyer explored his side career as a high-stakes poker player. Read more here.
  • About two dozen partners have left Perkins Coie to help start up Seattle offices for two competing law firms, Morrison Foerster and McGuireWoods. Read more here.
 

$8.5 million

That's how much a federal jury in Phoenix ordered Uber to pay after finding it liable in a lawsuit brought by a woman who said she was sexually assaulted by a driver, a verdict that could impact thousands of similar cases against the ride-hailing company. Read more here. 

 
 

In the courts

  • U.S. District Judge John Ross in Missouri dismissed a lawsuit by the Republican-led state accusing Starbucks of using its commitment to DEI as a pretext to systematically discriminate based on race, gender and sexual orientation. Read more here.
  • Medtronic owes rival medical device manufacturer Applied Medical Resources $382 million in damages for unlawfully monopolizing the market for blood-vessel sealing surgical devices, a jury found in federal court in California. Read more here.
  • An Illinois man pleaded guilty to phishing the Snapchat access codes of nearly 600 women in order to hack their accounts and steal nude photos, which he kept, sold or traded on the internet. Read more here.
 

Attorney Analysis