Legal News for Thurs 9/26 - Eric Adams Indicted, Trump Appeals $500m Fraud Judgment, CA Lawsuit Against ExxonMobil and EPA Fluoride and IQ Ruling

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This Day in Legal History: John Jay Commissioned as first Chief Justice

On September 26, 1789, John Jay was commissioned as the first Chief Justice of the United States, marking a pivotal moment in American legal history. Nominated by President George Washington and confirmed by the Senate, Jay’s appointment came just months after the Judiciary Act of 1789 established the framework for the federal judiciary. As the leader of the newly formed Supreme Court, Jay faced the monumental task of defining the role of the judiciary in the young republic. He served from 1789 to 1795, during which time the Court heard few cases but laid foundational principles for its future authority.

Jay’s influence extended beyond the bench. He played a key role in shaping foreign policy, including negotiating the 1794 Jay Treaty with Great Britain. His tenure helped establish the Supreme Court as an independent branch of government, though the Court’s full power would only be realized in later decades. Jay resigned from the Court in 1795 to become Governor of New York, but his legacy as the first Chief Justice remains integral to the evolution of the U.S. judiciary. His commission set a precedent for the development of a robust and coequal judiciary, a cornerstone of the American system of checks and balances.

New York City Mayor Eric Adams has been indicted following a federal corruption probe, raising questions about his political future. The investigation, which began after an FBI raid on a campaign fundraiser's home, has expanded in recent months. Key members of Adams' administration, including his chief counsel and police commissioner, have resigned amid the scrutiny. The charges remain unclear, as the indictment is sealed. Investigations reportedly involve allegations that Adams' campaign accepted illegal donations tied to the Turkish government and pressured officials to approve permits despite safety concerns. Federal agents recently searched the mayor's official residence, Gracie Mansion.

Adams, who has denied any wrongdoing, vows to remain in office and fight the charges. Calls for his resignation are growing, including from prominent figures like U.S. Representative Alexandria Ocasio-Cortez and mayoral challengers. The probes come as Adams seeks re-election and amid challenges like rising crime rates, absenteeism in schools, and the ongoing migrant crisis in New York City.

NYC Mayor Eric Adams Indicted After Federal Corruption Probe

New York Mayor Adams faces criminal indictment, vows to fight charges | Reuters

Donald Trump’s legal team is appealing a nearly $500 million civil fraud judgment related to his real estate dealings. The case, brought by New York Attorney General Letitia James, resulted in a February 2024 ruling by Judge Arthur Engoron, who found Trump guilty of inflating his net worth to secure better loan terms. Trump was ordered to pay $454.2 million, which has since increased to $478.3 million due to interest. His lawyers argue that the financial statements submitted to banks understated his wealth and claim the case is politically motivated.

James’ office countered that the lawsuit's goal was to maintain the integrity of New York’s commercial markets, and proof of financial losses by the banks was not required under the law. The judgment threatens Trump’s business empire and includes a ban on him leading New York companies or seeking loans from state-registered banks. Trump has denied wrongdoing and posted a $175 million bond to prevent asset seizures while his appeal is pending. This case is one of several legal challenges he faces as he campaigns for the 2024 presidential election.

Trump to ask New York appeals court to toss nearly $500 mln civil fraud judgment | Reuters

California has filed a landmark lawsuit against ExxonMobil, accusing the company of misleading the public by promoting plastics as recyclable when few are. Filed on September 23, 2024, the case argues that ExxonMobil's actions fueled increased consumption of single-use plastics, worsening the global plastic pollution crisis. This case stands out by targeting the root of the problem—plastic producers—rather than downstream companies. It seeks a multibillion-dollar abatement fund for recycling education and other penalties. The lawsuit is part of a broader push for "extended producer responsibility," which holds manufacturers accountable for the environmental impacts of their products.

Experts suggest the false advertising and unfair competition claims in the case have strong backing, but public nuisance claims could be tougher to prove. ExxonMobil is expected to argue that it didn't mislead consumers and that California's own recycling policies are at fault. This lawsuit may inspire other states, such as New York and Massachusetts, to file similar cases, depending on how California’s case progresses. The case reflects a growing trend of states using the courts to address environmental concerns amid weakening federal regulations.

California's ExxonMobil Suit Marks New Front in Plastics Fight

A federal court has ruled that the Environmental Protection Agency (EPA) must take action to address the risk that fluoride in drinking water poses to children’s IQ. The case, decided by Judge Edward M. Chen in the Northern District of California, found that adding fluoride to water at the currently recommended level of 0.7 milligrams per liter (mg/L) could lower children's IQ, creating an "unreasonable risk" that requires a regulatory response. While the court did not conclude definitively that fluoridated water is harmful, it mandated that the EPA assess the risk and determine appropriate measures under the 2016 Toxic Substances Control Act amendments.

The ruling follows a lawsuit from groups like Food & Water Watch and the Fluoride Action Network, who argued that fluoride’s neurotoxic effects pose a public health danger. Scientific studies have shown a significant association between higher fluoride levels and decreased IQ in children. Judge Chen noted that the population exposed to fluoride in the U.S. is vast, including two million pregnant women and 300,000 formula-fed infants. Despite past recommendations to lower the maximum contaminant limit, the EPA has not yet revised its standards.

The court's decision, which bypasses the EPA's earlier denials of citizen petitions, marks a historic moment in the long-standing debate over water fluoridation.

EPA Must Reduce Fluoride's IQ Risks to Children, Court Says (1)

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