Mar 26, 2010

Posted in FantasySCOTUS

FantasySCOTUS.net: Predictions for Bilski, American Needle, Stop the Beach, PCAOB, Black, and Graham


The Supreme Court has yet to decide 56 cases for the October 2009 term . In this installment, we will provide predictions for Bilski v. Kappos, American Needle Inc. v. NFL, Free Enterprise Fund and Beckstead and Watts, LLP v. Public Company Accounting Oversight Board, Black v. United States, and Graham v. Florida.

American Needle considers whether the National Football League, its teams, and their licensing agent’s function as a single entity for purposes of the Sherman Act. A majority, 60% of the  members of the league are predicting an affirmance of the lower court, at a 95% confidence.  The SMRs show a tendency for the liberal justices to join with the conservatives in this decision, with Sotomayor most likely to join in the majority.

Stop the Beach considers the limits on state authority to restore storm-eroded beaches or lakefronts. Eighty-four percent of the members of the league are predicting that the Supreme Court affirms the Florida Supreme Court.  In this case, the SMRs show that there is a strong potential for a conservative objection to the majority position, with Thomas possibly being the most vocal objection. This is not a big surprise in light of Justice Thomas’ staunch defense of property rights. The liberal justices are really strong for this case. Though Stevens’ low SMR is due to the fact he has already recused himself from this decision. Though, not everyone has followed this news, and some have cast votes for Stevens.

Predictions for PCAOB, Black, Graham, and Bilski, after the jump at JoshBlackman.com.

Public Company Accounting Oversight Board, or PCAOB (pronounced Peek-A-Boo) considers the constitutionality of the Sarbanes-Oxley Act’s creation of accounting review board. Sixty-seven percent of our members are predicting an affirmance at a 99% confidence level.  The data suggest that the liberal justices may join the conservative judges in the majority, and Stevens and Breyer are most likely to join the majority. Thomas and Scalia’s SMRs are not significantly different than one, but their low value might indicate a concurring opinion as opposed to the pure objections of a dissent.

Black v. United States considers the application of “honest services” fraud law to private conduct. In this case, the statistics are inconclusive, and the case is too close to call. The SMRs point to Stevens as the objector, but all Justices in general indicate a tendency to join in the majority. Thomas and Scalia are more likely to join than Alito. The SMRs are not as informative for direction, but they do show that whatever the outcome, it will probably be another large majority, and not be closely divided.

Graham considers the constitutionality of life prison sentence for a juvenile convicted of a non-homicide crime. The statistics in this case are also indeterminate. This one is also too close, as the SMRs indicate that the liberal justices are likely to stay in their ideological camp, except for Sotomayor who may cross over into a conservative majority. However, the SMRs also show that Roberts has a much higher chance of joining the majority than ideology would indicate.

Finally, Bilski, a potentially landmark intellectual property case, considers the definition of modern inventions for purposes of patent eligibility. Our members suggest that this case will likely affirm the Federal Circuit. The SMRs are interesting for this ase, since the liberal justices all have SMRs close to five, indicating an extremely strong potential for joining in any eventual majority. Thomas’s SMR indicates that he has the weakest potential, but is still not significantly different from 1, possibly indicating that he will issue a concurring opinion. This does not seem to be a particularly partisan case.

Many thanks to Corey Carpenter for his assistance with this post.

Print Friendly
Share
  • Pingback: Tweets that mention FantasySCOTUS.net: Predictions for Bilski, American Needle, Steep the Beach, PCAOB, Black, and Graham « Josh Blackman's Blog -- Topsy.com

  • ErikF

    Patent law cases are rarely the subject of splits, much less ideological splits. In this case the betting should be on scope. What are they going to do with the machine-or-transformation test. In particular, do they adopt the narrow construction taken by the Federal Circuit, or go back to keeping the door open to machine-transformation-and-maybe-something-else established in prior Supreme Court case law?

    Do they invalidate patents for methods that do not have a concrete embodiment? Do they rule on all method patents, even if it is a method of operating a machine? Do they get into software patents on a non-software fact pattern?

    My pick is fairly narrow rejection of disembodied business method patents, leaving software for another day.

    The Supreme Court will affirm. What rule they issue, and its scope of application, roll your own dice.

  • Mike

    I think the 60% might be totally wrong on American Needle. As much as I enjoy a good Easterbrook-based antitrust opinion, the 7th Circuit took a bunch of his dicta (albeit pretty awesome dicta) and applied it as settled law. Copperweld–the SCOTUS opinion from whence this debacle came–merely held that a parent company and its wholly-owned subsidiary acted as a single entity for purposes of section one of the Sherman Act. American Needle (the opinion below) relied on Bulls II for the proposition that Copperweld could potentially apply to professional sports leagues on a “facet-by-facet” basis. So the District Court took that and ran with it, granting summary judgment after applying the “facet-by-facet” approach to IP licensing for the purpose of promoting the league’s collective product: NFL football. When the 7th Circuit reviewed the R.56 grant de novo, they essentially found that, in the end, the whole question turned on the purpose of the teams in forming NFL Properties. Because Petitioners all but stipulated to that purpose (they cited NFL Properties’ statement of f-ing purpose from its bylaws in their brief), there was no genuine issue of material fact which would preclude summary judgment.

    I think the case is pretty much bullet-proof when you ask the purely procedural question, thanks to some crappy lawyering on American Needle’s part. But the problem is that the Court has a good amount of precedent that would seem to foreclose any amount of per se immunity for the NFL. Radovich v. NFL, L.A. Mem’l Coliseum v. NFL (Raiders II), Brown v. Pro-Football Inc. . . . These and more all expressly hold that the NFL is subject to rule of reason analysis under section one of the Sherman Act.

    (I could write a lot more… unfortunately.) But anyway, the Court during oral argument seemed to come down pretty heavily against the theory that the NFL might be entitled to some level of immunity at all, let alone the blanket immunity that was argued for. The Justices spent most of their time going back and forth amongst themselves articulating different ways to use the rule of reason to perhaps do away with the single-entity defense altogether, while affording some other protection (Twombly, anyone?) against the vexatious types of antitrust claims that are brought where the league is clearly acting reasonably.

    In sum, my reading of the precedent, nearly unanimous case law among the other circuits, the shaky grounds for extending Copperweld to joint ventures, and the oral argument transcript, all lead me to the following:
    The NFL will NOT get the broader immunity they wanted when they SUPPORTED the cert petition after they had won below. But, adding insult to injury (and hubris), the Court is likely to reverse altogether. I’m guessing 6-3… think along Raich lines, but maybe Roberts even joins to making it 7-2.

    The issue that will seem to come out of nowhere will probably be what they do with pleading standards. I’ll make a bold prediction and say that CivPro casebooks published after 2010 will discuss American Needle v. NFL as part of “Twombly and its progeny.” Unfortunately, this might do away with the “Twombleyed in the Iqbals” line.