One
law firms outsized influence
on the Trump White House
How lawyers from one giant DC firm influenced Trump's
Supreme Court picks
Heard
on Fresh Air
September 13 2022
Terry Gross
President Trump
appointed three Supreme Court justices and nominated 274 individuals to federal
judgeships. Journalist David Enrich says many of those picks were influenced by
lawyers from the firm of Jones Day.
Editor's note: Jones Day is an underwriter for NPR and has done work for
NPR in the past.
While
campaigning for president in 2016, Donald Trump famously cast himself as a
Washington outsider, someone who would "drain the swamp"
of special interests and cronyism. But New York Times journalist
David Enrich notes that both Trump's candidacy and his administration were
shaped, in no small part, by Jones Day, one of the most politically connected
law firms in DC.
For
much of Jones Day's history, it was a juggernaut in the field of corporate
litigation, raking in billions a year in fees from tobacco, opioid, gun and oil
companies, among many other giant corporations. But, as Enrich writes in his
book, Servants of the Damned, the firm became particularly
embroiled in politics during the Trump administration.
"They were more embedded in the Trump administration than any law firm I
can think of in any past presidential administration," Enrich says.
"Throughout the White House and the Justice Department, as well as other
agencies, basically, everywhere you looked, you would find a once and future Jones
Day lawyer."
Enrich
points out that Don McGahn, a prominent Jones Day lawyer, left the firm to
become Trump's White House counsel. McGahn assumed the responsibility of
picking the judges Trump would nominate to the federal courts, including the
Supreme Court.
"One of the core kind of tenets of McGahn's judicial philosophy was this
real antipathy toward what he calls derisively 'the administrative
state,'" Enrich says. "And one of the biggest results of that is that
it translates into judges who no longer give nearly as much deference to the
rights and authority of federal agencies as had been the norm."
Enrich says lawyers from Jones Day cycled back and forth between the Trump administration and private practice, where they would go right back to representing corporate clients — in some cases with interests before the Trump administration.
Leonard
Leo & Barre Seid (Creator of Marble Freedom Trust) “the little spiders that
you find at the center of the dark money web.”
By Kenneth P. Vogel
Oct. 12, 2022
Millions
of dollars in television advertisements blasting schools for teaching
critical race theory and assailing corporations like BlackRock, Uber and American
Airlines for catering to “woke politicians.”
A
lawsuit pending before the Supreme Court to radically reshape how federal
elections are conducted. Complaints against President Biden for violating
election law and against school districts that allow information to
be withheld from parents about children’s gender identities.
These
initiatives were advanced in the past year or so by a handful of new or
reconfigured conservative groups — each with their own leadership and mission.
Behind
the scenes, though, these groups have something in common: They are part of an
ambitious coalition developed in recent years by the conservative activist
Leonard A. Leo, who until now has been best known for his role in pushing the
appointments of conservative judges to the center of the Republican Party’s
agenda.
Most
of the initiatives were financially supported, or in some cases launched, by an
opaque, sprawling network shaped by Mr. Leo and funded by wealthy patrons,
usually through anonymous donations that critics call “dark money.”
An
investigation by The New York Times of Mr. Leo’s activities reveals new details
of how he has built that network, with relatively little public attention, into
one of the best-funded and most sophisticated operations in American politics,
giving him extraordinary influence as he pushes a broad array of hot-button
conservative causes and seeks to counter what he sees as an increasing leftward
tilt in society.
The
network represents a dramatic expansion of tactics and focus for Mr. Leo, who
spent nearly three decades working mostly behind the scenes to pull the
judiciary to the right as an executive at the Federalist Society. His success
in that effort, and expansion into other polarizing fights, is rapidly making
him a leading target of criticism from the left.
His
philosophy is defined by a belief that the federal government should play a
smaller role in public life and religious values a larger one, and that
institutions and individuals should be challenged for embracing what he sees as
subversive liberal positions.
While
his efforts to put conservatives on the courts found a powerful ally in
President Donald J. Trump, Mr. Leo, an Ivy League-educated lawyer, has steered
clear of the most virulent strains of Mr. Trump’s right-wing populism, as well
as his baseless claims that the 2020 election was stolen from him, and he has
navigated past most of the fissures in the Republican Party.
Among
leading political figures, Mr. Leo is more aligned with Senator Mitch McConnell
of Kentucky, who as Republican leader in the Senate has worked with him closely
on judicial nominations and shares an animus for laws restricting the flow
of money into politics.
Mr.
Leo’s approach blends cutting-edge political financing techniques — some of
which he says are copied from the left — with deep connections to the
Republican establishment and a willingness to harness some of the culture-war
issues animating the base.
Mr.
Leo had begun quietly building the new operation in 2016, but its scope and
intensity ramped up substantially when he stepped down in January 2020 from
day-to-day leadership of the Federalist Society and shifted his attention to
building the conservative advocacy and donor network full time.
The
network is made up of a loosely affiliated and evolving set of nonprofit and
for-profit entities, through which Mr. Leo helps raise huge sums of money from
donors, steers the cash to groups promoting issues he supports and then shapes
the resulting initiatives.
To
help administer the enterprise, the network’s nonprofits, including the 85 Fund
and Concord Fund, have paid millions of dollars in consulting fees to private
firms in which he has a financial interest, like CRC Advisors and the BH Group,
enriching Mr. Leo in the process.
The
network’s nine core groups have spent nearly $504 million on policy and
political fights, including grants to about 150 allied groups, between mid-2015
and last year, with roughly half of that spending since mid-2019, according to
an analysis by The Times of dozens of tax filings. And his efforts have been
turbocharged by an unusual $1.6 billion infusion from a Chicago electronics
manufacturing magnate in late 2020 that was revealed by The Times this
year, giving Mr. Leo the cash to match his ambitions going forward.
At
a time when some of the most influential financial supporters of the Republican
Party have shifted their focus or been diminished, Mr. Leo’s network is shaping
the conservative movement with decisions about which causes, groups and
politicians get funded.
His
influence stems largely from the credibility he built with conservative donors
and politicians during his decades-long crusade to put conservatives on the
federal bench, most apparent in Supreme Court decisions this year that eliminated
the constitutional right to abortion and limited a crucial federal
government tool to fight climate change.
His
expanded effort focuses on a variety of causes, including restricting abortion
rights in the states; ending affirmative action; defending religious groups
accused of discriminating against L.G.B.T.Q. people; opposing what he sees
as liberal policies being espoused by corporations and schools; electing
Republicans; and fighting Democratic efforts to slow climate change,
increase the transparency of money in politics and expand voting access.
“The
idea behind the network and the enterprise we built is to roll back liberal
dominance in many important sectors of American life,” Mr. Leo said in an
interview last month. “I had a couple of decades or more of experience rolling
back liberal dominance in the legal culture, and I thought it was time to take
the lessons learned from that and see whether there was a way to roll back
liberal dominance in other areas of American cultural, policy and political
life.”
Since
2016, the grant-making hubs in his network and the recipients of their money
have paid more than $30 million to the firms owned at least partly by Mr. Leo,
CRC Advisors and BH Group, according to the Times analysis. It shows that he
also has been paid more than $2.7 million in personal salary and consulting
fees during roughly that time period by nonprofit groups in the network and
their grantees, including more than $2.2 million from the Federalist Society,
where he remains co-chairman.
For
those upset by the increasing flow of dark money into politics and rightward
drift of the Supreme Court — critics include both his neighbors in an idyllic seaside
Maine town and the president of the United States — Mr. Leo has become a
boogeyman.
In
calling for Senate passage of legislation to increase disclosure of dark money
spending, Mr. Biden singled out Mr. Leo last month as the
personification of “a serious problem facing our democracy” wherein money
“flows in the shadows to influence our elections.”
Without
naming Mr. Leo, the president referred to “a conservative activist who spent,
as was his right, decades working to put enough conservative justices on the
Supreme Court to overturn Roe v. Wade” and who “now has access to $1.6 billion
in dark money to do more damage and — from our perspective — and restrict more
freedoms.”
The
bill went down to defeat in a procedural vote in which every Republican voted
with their leader, Mr. McConnell of Kentucky, who in a speech on the Senate
floor accused Democrats of trying “to erode the First Amendment and make
political speech more difficult.”
In
an interview later, Mr. McConnell praised Mr. Leo’s “ability to attract
significant resources to the right-of-center world.” He called Mr. Leo’s plans
“quite ambitious,” adding: “That sounds like transforming society, which is not
easy. But look, I have a lot of confidence in his judgment and his
convictions.”
Mr.
Leo’s network is helping shape the conservative movement with decisions about
which causes, groups and politicians get funded.Credit...Erin Schaff for The
New York Times
Challenging
‘Woke Capitalism’
The
ambition, tactics and impact of Mr. Leo’s network are illustrated by its
campaign to punish some of the country’s biggest corporations for pushing
environmental, social and governance causes, known as E.S.G., that generally
align with a Democratic agenda.
The
campaign has been pushed by two groups — Consumers’ Research and the State
Financial Officers Foundation — that came to the issue relatively recently and
have helped elevate it within the Republican Party. Both groups are
clients of CRC Advisors, a firm with about 80 employees that Mr. Leo co-founded
in January 2020, building on an earlier operation run by his allies for many
years, that helps groups in the network raise money and execute their
strategies.
Consumers’
Research dates back to the 1930s, when it focused on identifying and
publicizing defective or unsafe consumer products. It had gone largely dormant
by the early 2000s, but it was resuscitated a decade later as a
Republican-aligned group working partly to topple federal environmental laws,
using millions of dollars from donors with connections to Mr. Leo.
Among
them, according to files obtained in a hack of a foundation and analyzed
by the progressive researcher Lisa Graves, was Barre Seid, the Chicago
electronics magnate. In late 2020, Mr. Seid donated his company to Marble
Freedom Trust, one of the nonprofits controlled by Mr. Leo. The trust sold the
company in March 2021, reaping more than $1.6 billion in proceeds.
About
two months later, Consumers’ Research began an anti-E.S.G. campaign on which it
says it has spent nearly $10 million — more than it had spent in the previous
seven years combined.
The
campaign was launched under the stewardship of Will Hild, a former Federalist
Society official who is close to Mr. Leo and became executive director of
Consumers’ Research in 2020. He would not say where the group’s sudden influx
of cash came from. But a person involved in Mr. Leo’s network said it provided
at least some of the money — funding that has not been previously reported.
Mr.
Leo has no formal role with Consumers’ Research, but Mr. Hild, in an email,
called him an “adviser to the organization.” Mr. Leo said “the woke capitalism
battle is a very high priority for me, and I am very excited about what Consumers’
Research is doing.”
The
group paid about $113,000 for public-relations consulting to CRC Advisors in
2020, before the start of the anti-E.S.G. campaign, according to a tax filing.
Consumers’
Research was listed this year as a top donor to the State Financial
Officers Foundation, a little-known nonprofit organization based in Shawnee,
Kan.
The
foundation has helped coordinate efforts by Republican state treasurers to
withdraw government pension funds from investment firms that focus on E.S.G. initiatives.
Mr.
Hild has spoken at the foundation’s conferences about China and E.S.G., and
this year, the foundation told allies that it had hired CRC Advisors, which
worked with the treasurers’ offices to facilitate media coverage of the efforts
to discourage E.S.G. investing, according to emails reviewed by The Times that
were obtained through public records requests by the left-leaning investigative
watchdog group Documented.
It
is difficult to trace the support from Mr. Leo’s network and CRC for the
anti-E.S.G. campaign. Filings that might shed light on it likely will not
become public until next month or possibly next year. Even then, the flow of
cash could be obscured since dark money is often routed through multiple
entities.
CRC
Advisors has corporate clients as well, though little is known about them,
because there are fewer disclosure requirements. In one case, the firm seems to
have unintentionally revealed a client — the oil giant Chevron — that
could benefit from the campaign against environmental commitments by other
corporations.
Bill
Turenne, a spokesman for Chevron, said the company has “communications advisory
relationships” with CRC and “a number of firms.”
A
particular focus of the anti-E.S.G. campaign has been BlackRock, the world’s
largest asset manager, which has been at the forefront of an effort to push
companies to respond to climate change by reducing carbon emissions.
Consumers’
Research has spent millions of dollars on advertising accusing BlackRock of “propping
up Chinese Communist leaders,” having a hand in “soaring gas prices” by urging
energy companies to divest from fossil fuels and contributing to “outrageous
housing prices” by buying up single-family homes as rental properties.
In
December, Consumers’ Research sent a letter to the governors of the
10 states with the largest pension fund investments in BlackRock, warning that
the firm’s business in China, which has drawn criticism from across
the political spectrum, is “putting American security at risk, along with
billions of dollars from U.S. investors.
Three
weeks later, one of the recipients of the letter, Gov. Ron DeSantis of
Florida, a leading figure in conservative politics, ordered an
audit of his state’s investments in Chinese assets. And in August, he and
other state officials approved a resolution directing the state’s
fund managers to invest to maximize returns, and not to take E.S.G. criteria
into account.
In
Arkansas, Louisiana, Texas, Utah and West Virginia, Republican officials have
taken steps to pull hundreds of millions of dollars of state
government investments from BlackRock, and officials in other states are
considering actions against the company.
In
Congress, Republicans are pledging hearings and investigations into BlackRock
and other companies touting E.S.G. policies next year if they take control of
one or both chambers in November.
“Consumers’
Research does great work, and I rely on them frequently,” said Senator Tom
Cotton of Arkansas, referencing a number of targets of the group that he has
criticized — including companies that pushed for emissions reductions and objected
to a Republican election law in Georgia, as well as BlackRock and its
investments in China.
BlackRock
has formed internal working groups to determine how to respond. Its chief
executive, Laurence D. Fink, held meetings this year with oil companies BlackRock
has invested in, and has clarified that he sees reducing carbon emissions as a
gradual process.
Brian
Beades, a spokesman for BlackRock, called the campaign “politically driven
misinformation,” pushing back on claims about the firm’s involvement in
the housing market and climate change efforts. He added, “We are
not going to allow dark money actors with a political agenda to stop us from
doing the right thing for our clients.”
Other
targets of Consumers’ Research have included Coca-Cola and Ticketmaster,
which came under fire last year after they or their parent
companies objected to a Republican election law in Georgia that
placed limits on absentee and drop-box voting.
Mr.
Cotton said he expected Republicans would seek to hold oversight hearings to
determine whether corporate E.S.G. efforts were running afoul of antitrust
laws.
“To
the extent the Republican Party ever was more closely aligned with big
business, those days are long since past,” he said.
The
attacks on corporations are reminiscent of a memo written in the early
1970s for the U.S. Chamber of Commerce by the future Supreme Court Justice
Lewis F. Powell Jr. He argued that to offset a leftward tilt in “the college
campus, the pulpit, the media, the intellectual and literary journals, the arts
and sciences and from politicians,” the business community needed to fund
conservative political institutions.
Now,
though, influential conservatives believe the Chamber of Commerce and big
business are no longer reliable backers of Republicans.
“When
you start looking across America — at business, media, education and lots of
the other major institutions — you see a pattern of liberal dominance,” Mr. Leo
said. “And some of those institutions had a strong liberal presence at the time
Powell wrote his memo, but the dominance was not as pervasive and not as
widespread as it is today.”
Forging Powerful Alliances
Raised
in an observant Catholic family in New Jersey, Mr. Leo found his calling while
enrolled at Cornell University’s law school, where he formed a chapter of the
Federalist Society in 1989. Its mission was to push back on what its founders saw
as the leftward tilt of American law schools.
After
a clerkship on the U.S. Court of Appeals for the District of Columbia Circuit
and a stint helping with the Supreme Court confirmation of Justice Clarence
Thomas, whom he had gotten to know on the appeals court, Mr. Leo went to work
for the Federalist Society full time in 1991.
Under
Mr. Leo’s leadership, the group attracted funding from some of the biggest
donors on the right.
Mr.
Leo worked closely with President George W. Bush’s White House, including
on efforts to confirm the Supreme Court nominees, Samuel A. Alito Jr. and John
G. Roberts Jr., both of whom had ties to the Federalist Society. And Mr. Leo
teamed up with Mr. McConnell, then the Senate majority leader, and other Senate
Republicans, to oppose the confirmation of President Barack Obama’s
nomination of Merrick B. Garland, who is now serving as attorney general, to
fill a Supreme Court vacancy.
While
Mr. Leo was working to keep the seat vacant, he was meeting behind closed doors
with Mr. Trump, who was then closing in on the Republican presidential
nomination. Two months later, Mr. Trump would release a list of Supreme Court
candidates developed by Mr. Leo, a move that Mr. McConnell later said “reassured
a lot of skeptical Republicans” about Mr. Trump.
But
even as the 2016 election played out, Mr. Leo was starting to build political
infrastructure to expand his influence regardless of who won the presidency,
setting up three nonprofits to collect and disseminate funds from wealthy
donors, as well as the for-profit consulting firm BH Group.
When
Mr. Trump won the White House, Mr. Leo joined the transition team, BH Group
donated $1 million to the inaugural committee and Mr. Leo advised on judicial
nominees for an administration that would give conservatives a 6-3 majority in
the Supreme Court.
Vacuum on the Right
As
Mr. Leo’s role in reshaping the Supreme Court built his credibility and profile
among conservatives, something of a vacuum was developing on the big-money
right. The industrialist Charles G. Koch, who once led the most influential
major donor infrastructure network, expressed regret for years of backing
Republicans, and his operation emphasized a bipartisan push for leniency
in the criminal justice system.
Some
of the party’s top donors — leery of helping Mr. Trump but also concerned about
invoking his ire — were either recalibrating their giving or scaling
back, and one of the party’s biggest donors, Sheldon Adelson, the Las Vegas
casino magnate, died last year. The National Rifle Association has
been weakened by legal problems.
In
2018, Mr. Leo started the Rule of Law Trust, a nonprofit funding hub. In short
order, it received $80 million in untraceable cash.
Then,
in January 2020, with Mr. Trump headed into a tough re-election campaign, Mr.
Leo went public as the head of the new network, though details were scant.
He stepped down as day-to-day leader of the Federalist Society and joined CRC
Advisors as a partner and chairman.
Around
the same time, two other groups that he had worked with on confirmation fights
— the Judicial Education Project and a group that had been known as the
Judicial Crisis Network — changed their names to the 85 Fund and the Concord
Fund. The change seemed to reflect a broadening of their focus beyond the
courts.
Mr.
Leo does not have an official role in the 85 Fund or the Concord Fund, but
since the beginning of 2016, they paid more than $7.4 million to the BH Group,
and more than $41 million to CRC.
Some
conservative operatives have grumbled about what they feel is an expectation
that they have to hire CRC as a condition of getting money from Mr. Leo’s
network, and say that in some cases he has boxed out other groups from raising
money from donors with whom he is close — complaints that people in Mr. Leo’s
network reject.
Some
allies of Mr. Trump privately complain that Mr. Leo’s unwillingness to embrace
the false claim that the election was stolen hindered their ability to sign top
lawyers and firms to litigate the issue. They are closely watching Mr. Leo for
signs that he or his network might align behind a Republican challenger to Mr.
Trump in 2024.
Mr.
Leo’s allies say he will support the party’s nominee, regardless of who it is.
Confronting
Critics
Mr.
Leo’s network has not been shy about taking on critics in Washington, like
Senator Sheldon Whitehouse, Democrat of Rhode Island, who has repeatedly
spotlighted him in speeches, including one last month in which he
described Mr. Leo as “the little spider that you find at the center of the
dark money web.”
But
as Mr. Leo has become more prominent, the scrutiny also has hit closer to home.
Over the summer, there were weekly demonstrations outside his mansion on the
Maine coast where he and a limited liability company linked to him have
purchased nearly $5 million worth of property in recent years, according to
government records and interviews.
Mr.
Leo has called the police on the protesters, and his hired security team has
filmed participants. The guards have accompanied him when he walked his dog or
ventured out. A young man who yelled obscenities at Mr. Leo while he was
walking with his family in town was subsequently charged with disorderly
conduct while participating in one such protest.
Early
on a Monday morning last month, Mr. Leo was spotted along with one of the
security guards outside his home where messages had been written in chalk on
the street during the previous night’s protest, including “Dirty money lives
here.”
Mr.
Leo was bent at the waist, scrawling in chalk the names of women who the local
newspaper had identified as participants in the protests. Mr. Leo told people
that he was exercising his First Amendment rights.
One
of the protesters, Bettina Richards, said she happened to jog past while Mr.
Leo was writing the list of names, which included her own. Mr. Leo did not
acknowledge her, she said, though the guard waved and wished her a good
morning.
Ms.
Richards, 57, said she was surprised that Mr. Leo had felt compelled to take up
a piece of chalk.
“You
have $1.6 billion to be throwing around — don’t you have bigger things to do
with your day?” she said she wondered. “You can write my name all over the
road. I’m not embarrassed to be objecting to your positions.”
Ken
Vogel covers the confluence of money, politics and influence from Washington.
He is also the author of “Big Money: 2.5 Billion Dollars, One Suspicious
Vehicle, and a Pimp — on the Trail of the Ultra-Rich Hijacking American
Politics.” More about Kenneth P. Vogel
Marble Freedom Trust, advocacy group headed by Leo, has received vast
$1.6bn donation to push conservative causes
4 Sep 2022
As the US supreme court justice Clarence
Thomas prepared to take questions from members of the rightwing legal advocacy
group the Federalist Society, a few years back, he turned to the moderator.
Thomas joked that the nondescript man in the blue suit and
white shirt was the “No 3 most powerful person in the world”, and then fell
about laughing. The target of the judge’s mirth, Leonard Leo, grinned and
remarked: “God help us.”
Yet both men understood at that moment in
2018 just how influential Leo was, in ways that few Americans knew. Most had
never even heard of Leo, even though he was at that time instrumental in
maneuvering Donald Trump to reshape the court on which Thomas sits, and so
deliver one of its most politically sensitive rulings of recent times by
overturning the right to abortion.
Leo, a 56 year-old whose opposition to
abortion is rooted in his Catholic faith, remains an obscure figure to much of
the US public, even after revelations that he heads a political group that has
received an astonishing $1.6bn donation to push conservative causes, including
election manipulation ahead of this year’s midterm votes.
Earlier this month the
New York Times revealed that the money, said to
be one of the largest single contributions to a political pressure group,
arrived in a circuitous route from a figure who is equally obscure to most
Americans: Barre Seid.
Seid, who has spent tens
of millions of dollars funding conservative and libertarian organizations,
donated an entire company last year to a newly founded political advocacy group
run by Leo, the Marble Freedom Trust. Marble sold the firm, the Chicago
electronics manufacturer Tripp Lite, this year for $1.6bn, according to
tax records.
The roundabout process has prompted
speculation Seid was sidestepping tax on the sale to maximize the funding for
Leo.
The Marble Freedom Trust has already
distributed nearly a quarter of a billion dollars, including $153m to the Rule
of Law Trust to push the appointment of conservative judges. That still leaves
more than $1bn to fund political causes close to Leo’s heart, including his
interest in helping Republican officials manipulate elections ahead of the
midterm vote and the next presidential ballot.
Leo defended the injection of a huge amount
of “dark money” into the political process by claiming it merely levels the
playing field against Democrats funded by liberal billionaires.
“It’s high time for the conservative movement
to be among the ranks of George Soros, Hansjörg Wyss, Arabella Advisors and
other leftwing philanthropists, going toe-to-toe in the fight to defend our
constitution and its ideals,” he said in a statement.
Leo’s close relationship with Thomas goes
back to 1991 when he worked to gather evidence to support the judge during his
confirmation hearing for the supreme court.
Leo went on to work for the Federalist
Society, founded in 1982 to counter what conservatives claimed was liberal
dominance of US courts and law schools. He rose to become the society’s
co-chair and oversaw the rise in its influence at the expense of the more
liberal American Bar Association, in part through the effectiveness of his
fundraising to back conservative judicial nominees.
As the conservative
lawyer Ed Whelan wrote six years ago in the National Review:
“No one has been more dedicated to the enterprise of building a supreme court
that will overturn Roe v Wade than the Federalist Society’s Leonard Leo.”
In 2005, George W Bush nominated Harriet
Miers, his deputy chief of staff, for a vacant seat on the supreme court. She
was widely regarded as a weak candidate in any case, but when conservatives
turned on her, and Miers withdrew, Leo saw to it that she was replaced by a
figure far more acceptable to the right and opponents of abortion, Samuel
Alito.
Senator Sheldon Whitehouse, one of the most
outspoken critics of dark money’s influence on politics, told the Guardian
earlier this year that was a turning point.
“It was at that point
that the grip of this little donor elite and Leo, its Federalist Society
operative, really took hold. Justice Samuel Alito was the product of that and
he has proven himself on the court as being a faithful workhorse for
that dark money corporate rightwing crew,” he said.
New opportunities presented themselves with
Trump’s election in 2016.
Leo drew up a list of 11 potential supreme
court nominees to help Trump, a man who had previously claimed to be
pro-choice, woo conservative and evangelical voters by committing to nominate justices
who were hostile to abortion rights.
After Trump’s victory, Leo took time away
from the Federalist Society to work as an advisor to the president. All three
of those eventually seated on the US’s highest court during Trump’s tenure and
who voted to overturn Roe v Wade – Neil Gorsuch, Brett Kavanaugh and Amy Coney
Barrett – were named on the list Leo drew up during the campaign.
Now Leo has turned his
attention to pushing conservative moves to manipulate elections in favour of
Republicans through the Honest Elections Project,
a recent addition to a web of interlinked groups funded with dark
money, including from the libertarian Koch brothers.
Among other things, Leo is pushing a
contentious legal theory that the US constitution gives state legislatures the
power to decide how to run elections without intervention from the courts. The
Honest Elections Project has made multiple legal submissions on the issue with
the aim of removing the power of state courts to block gerrymandering and voter
suppression measures to manipulate elections.
Earlier this year, Leo told the Washington
Post that in using dark money for political ends he is not doing anything that
has not been done before.
“Let’s remember that in this country, the
abolitionist movement, the women’s suffrage movement, the American Revolution,
the early labor movement, the civil rights movement of the 1950s and 1960s were
all very much fueled by very wealthy people and oftentimes wealthy people who
chose to be anonymous. I think that’s not a bad thing. I think that’s a good
thing,” he said.
Interview
highlights
On the
outsized role Jones Day played in the Trump administration
Servants of the Damned, by
David Enrich
Harper Collins
Starting in 2015, the law firm represented his campaign, and they did so
through the 2016 cycle and then again the 2020 campaign, that was work that
basically started on Inauguration Day of 2017. And so they were front and
center on both of his presidential campaigns, but they were not representing
him personally. ...
The
White House counsel, Don McGahn, was a very prominent Jones Day lawyer, and he
surrounded himself in the White House with several senior Jones Day partners
and associates who he brought with him. At the Justice Department, the
solicitor general, Noel Francisco, was once and future Jones Day partner. And
in the upper echelons of both in the civil division of the Justice Department
you had some of the people right beneath the attorney general were from Jones
Day. You had someone at the Consumer Product Safety Commission, the Federal Energy
Regulatory Commission, the Commerce Department, on and on the list goes.
On Jones Day
accomplishing political interests once Trump was in office
Shortly
after Trump became president, Jones Day lawyers, both inside the administration
and outside the administration, those still at the firm, started accomplishing
things that they had long sought to accomplish but had not been able to do. And
the clearest example of this to me is a series of lawsuits that Jones Day had
brought on behalf of a bunch of Catholic organizations that were basically
challenging an important provision of Obamacare, the Affordable Care Act. ...
One of the first things that [the Trump] administration does with the help of
Don McGahn, is they basically say they're going to end an Obama administration
policy that sought to require employers to provide contraception coverage for
their employees, which was part of Obamacare. And this was the subject of the
lawsuit. So right on the face, it represented a big win for Jones Day and its
clients.
On Jones Day's
political agenda
The law
firm isn't a monolith, and I think it's important to kind of say that at the
outset. And this is a law firm that has something like 2,500 lawyers in dozens
of countries all over the world. And like any large organization or large law
firm, there are employees and lawyers at Jones Day that have, I think, a wide
range of political views ranging from far left to far right. What sets Jones
apart is the degree to which the leadership of the firm is fairly uniform in their
conservative thinking. ...
Their
agenda ... ranged from lots of deregulation and really getting the government
out of the affairs of businesses to a very large extent, and then also an
agenda of what I think the right people on the right would call "religious
liberty." And I think people on the left and to a certain degree, people
in the center would say much dramatically eroding the separation of church and
state in a way that allows religion to play a much more prominent role in
public and political life.
On how Don
McGahn, former Jones Day lawyer, ended up picking SCOTUS nominees for Trump
Shortly
after Trump was elected, Mitch McConnell gave some advice to Don McGahn. The
advice was that instead of relying on a committee at the White House to debate
and pick nominees for the Supreme Court and other federal courts, McConnell's
advice was, "Look, you should get Trump's permission to just do this by
yourself. You alone should have the power to pick the judges that Trump will
nominate." McGahn liked the sound of that. He proposed it to Trump and
Trump when he offered McGahn, the job of White House counsel, readily agreed to
this. And so McGahn, very quickly, before Trump even was sworn in as president,
all of a sudden was sitting on this enormous power that was really quite
unusual historically. And he was the one who would be picking the people that
Trump nominated to all sorts of federal courts.
On McGahn
going back to Jones Day after working in the Trump administration
He came
right back, got a big promotion, got a bunch more money. And he was kind of the
first in what would become a whole parade of people who went from the Trump
administration back into the law firm. A lot of these were people who had
started off of Jones Day, then went to the Trump administration and then
returned. But there were also a lot of people who had not previously worked at
Jones Day, had worked at maybe at other law firms. And with the return of
McGahn, Jones Day became essentially a refuge for veterans of the Trump administration,
who many of whom had really developed quite controversial backstories and had
taken quite controversial and polarizing and legally dubious actions while in
the Trump administration and therefore, I think, were pretty radioactive for
many other big law firms. But Jones Day welcomed many of them with open arms.
On Jones Day
taking advantage of the judicial revolution it set in motion
It's
now bringing cases through the Supreme Court and through the lower courts that
were basically made possible by this deluge of very conservative federal judges
that are now on the benches of many courts. So just in the Supreme Court's past
term, which was obviously one of the most radical and farthest reaching the
Supreme Court terms, certainly of my lifetime, and Jones Day played pivotal
roles in some of these cases. And I think the biggest one was the case,
the West
Virginia versus EPA case that dramatically hemmed in the power of the EPA to
regulate carbon emissions. And that was brought on behalf of the Jones Day
client, a big coal company.
Jones
Day was the law firm that basically ended the eviction moratorium during the pandemic that the Biden administration had imposed.
And Jones Day, just reading the tea leaves and talking to their lawyers now, it's
quite clear that they are plotting a wide range of attacks on the power of the
federal government to oversee private businesses and private companies in a way
that goes back to Don McGahn and his colleagues' hatred of the so-called
administrative state. And they are now in a position to be able to much more
forcefully advocate those positions and be successful in their advocacy —
thanks to all of the judges that Trump, at McGahn's direction and with
McConnell's support, managed to get on to virtually every federal court in the
country.
Sam Briger and Seth Kelley produced and edited this interview for broadcast. Bridget Bentz, Molly Seavy-Nesper and Meghan Sullivan adapted it for the Web.
How
Abbott Kept Sick Babies From Becoming a Scandal
Abbott’s lawyers at Jones
Day negotiated secret settlements and used scorched earth tactics with families
whose infants fell ill after consuming powdered formula.
By David Enrich
David Enrich, the business investigations editor for The New York Times,
is the author of the forthcoming book, “Servants of the Damned: Giant Law Firms, Donald Trump, and the Corruption of Justice,” from
which this article is adapted.
Sept. 8, 2022
Early on a Saturday
morning in 2013, Mark Bennett, a federal judge, walked into his chambers in the
courthouse in Sioux City, Iowa. He’d been out of town for a speaking engagement
and was hoping to catch up on work. A surprise awaited him as he entered his
office: Cardboard boxes were stacked everywhere. His immediate thought was that
another judge might be moving in.
Another judge was not
moving in. Judge Bennett was presiding over a case in which Abbott
Laboratories, the sprawling health care company that dominated the market for
infant formula, was being sued on behalf of a girl, Jeanine Kunkel, who five
years earlier had suffered severe brain damage after consuming the company’s
powdered formula. Jeanine couldn’t speak, sit up or even swallow, and the
tragedy had nearly destroyed her family.
The boxes cluttering
Judge Bennett’s chambers were filled in large part with evidence that Abbott’s
lawyers wanted to be able to introduce at the upcoming trial.
After more than two
decades on the federal bench, Judge Bennett had a pretty good guess as to what
was going on. The accusations in the lawsuit posed a threat to Abbott, which
had staked its reputation on being family-friendly and devoted to health and
safety. Judge Bennett figured that to protect an important client, the
company’s outside lawyers, from the international law firm Jones Day, were
trying to snow their opponents with tens of thousands of pages of paperwork.
Even if the materials were only tangentially related to this particular case,
the plaintiffs’ lawyers would need to spend countless hours poring over the
documents to see what they contained.
A couple of days
later, at a meeting in his chambers, the judge laced into Abbott’s lawyers.
Their conduct, he told me, was “the worst by a factor of 10” that he had seen
in his 20 years as a judge.
Judge Bennett, who
retired in 2019 and now teaches at Drake University’s law school, may not have
liked it, but the lawyers were effective. Over the ensuing months, Abbott
prevailed in court, the poisoning of a newborn baby went largely unnoticed and
the company continued making and selling its powdered formula just as it had
done before.
Nobody was prepared
for what would happen nearly a decade later. In early 2022, after several
infants fell ill and regulators found unsanitary conditions at an Abbott
factory in Sturgis, Mich., the company voluntarily recalled its powdered
formula and shut the plant. (No proof has emerged that the problems at the
Sturgis factory caused the infant illnesses and deaths.)
The closing caused a
severe shortage of the formula that most American infants are
fed. Desperate parents struggled to feed their
children. Angry lawmakers convened hearings. Government agencies opened
investigations. The Biden administration organized an airlift to
import formula from overseas. The crisis focused attention on shortcomings with
food safety and industry oversight.
The scrutiny was new,
but the phenomenon wasn’t. Over the years, newborns on rare occasions have
fallen sick or died after being fed powdered formula. Until recently, however,
the pattern largely lurked below the public and political radar. One big reason
is that Abbott and its lawyers, at times deploying scorched earth legal
tactics, have repeatedly beaten back attempts to hold the company liable.
Several lawyers who have
worked on baby-formula cases said they were not aware of a plaintiff ever
beating Abbott or its competitors at trial. “These are tough, tough cases,”
said William Marler, a Seattle lawyer who has sued companies for spreading
food-borne illnesses.
Much of this, of
course, comes down to good lawyering. Jones Day — a 129-year-old law firm with
roots in Cleveland and a powerful political practice in Washington — is a
goliath in corporate litigation, having represented companies like R.J.
Reynolds, Purdue Pharma, General Motors and Smith & Wesson.
Often Jones Day dukes
it out with other giant law firms that are also representing enormous
companies. When the opposing sides shower each other in paperwork, discovery
requests, venue changes and objections, it usually resembles a fair fight. But
as the Abbott cases illustrate, when the resources and tactics of Big Law are
brought to bear against poor families and their overwhelmed lawyers, the
results tend to be lopsided.
Jones Day lawyers
told me the firm didn’t do anything unusual or untoward as it sought to fend
off families like Jeanine’s. Kevyn Orr, the partner in charge of Jones Day’s
U.S. offices, said the firm’s only goal “was to prove the truth that Abbott’s
infant formula was not contaminated when it was opened.”
Daniel Reidy, who
until his retirement as a Jones Day partner represented Abbott, disputed
elements of Judge Bennett’s critique, noting, for example, that the boxes in
his chambers also contained the plaintiff’s evidence. Mr. Reidy said the judge
was “deeply and irrevocably prejudiced against ‘big firms.’”
There is little
doubt, though, that Abbott’s victory streak was one of the forces that kept the
connection between infant illness and the powdered formula from becoming a
scandal sooner. “If there had been a large verdict, it would’ve gotten a lot of
national publicity,” Judge Bennett said. When that didn’t happen, “what’s the
focus for the public? Not much.”
I learned about Jones
Day’s work for Abbott as I conducted research for my forthcoming book, “Servants of the Damned: Giant Law Firms, Donald Trump, and the
Corruption of Justice.” (This article is largely based on my
reporting for the book.)
In January, I asked
an Abbott spokesman, Scott Stoffel, for comment. “Healthy infants and children
are at the heart of what we do and ensuring the quality and safety of our
products is a top priority,” he replied in an email on Jan. 25. “Our products
undergo rigorous quality checks,” he went on, “to ensure that they meet both
the nutritional and safety needs of infants and children.” In a follow-up
email, Mr. Stoffel noted that the company was “very sympathetic to the families
in these situations” but that juries had concluded Abbott was not to blame.
Barely three weeks
later, Abbott agreed to begin recalling its powdered formula.
A few large companies
control the $2.1 billion market for infant formula — none more so than Abbott,
which before this year’s crisis accounted for nearly half of
formula sales.
Unlike bottled
formula, the powdered version is not sterile. (Its advantages include being
less expensive than the ready-to-pour variety.) Academic and government studies
have repeatedly found that powdered formula can be a breeding ground for a type
of bacteria, Cronobacter sakazakii, that in babies can cause meningitis. Even
when treated swiftly, the illness can lead to severe brain damage or death.
A study in 2012, by a
longtime official at the Centers for Disease Control and Prevention, found that
it was “extremely unusual” for Cronobacter infections to
occur in babies who were not fed powdered formula.
In another paper, published in 2020, other C.D.C. officials
studied scores of cases of infant meningitis since 1961 and found that in the
vast majority — 79 percent — the baby had recently consumed powdered formula.
But in any individual
case, it can be hard to prove what caused an infection. The potentially deadly
bacteria resides in dirt and water; studies have found it in kitchens. Because
the bacteria can clump together in formula containers, it’s possible for a
sample to test negative even if Cronobacter was in the powder that went into a
baby’s bottle.
Nick Stein, a lawyer
with a small practice in Indiana, recalled the first time he encountered a case
involving contaminated formula. A woman walked into his office with her
toddler, limp in her arms, and explained that the child had suffered brain
damage after being fed formula. Mr. Stein negotiated a settlement. More cases
followed, and they, too, resulted in settlements that required Mr. Stein and
his clients to keep quiet.
In 2005, Mr. Stein
received an email from Kimberly Sisk in rural Pisgah Forest, N.C. Her son,
Slade, had suffered debilitating brain damage after consuming Abbott’s Similac
powdered infant formula in 2004. Ms. Sisk, who lived in a mobile home and
worked as a house cleaner, faced a lifetime of medical costs. In February 2007,
Mr. Stein and a colleague, Stephen Meyer, sued Abbott in state court in North
Carolina.
The ensuing
seven-year battle would become a case study for how firms like Jones Day use
their mastery of the legal system to grind down — and in some cases attack —
plaintiffs who have limited money and time on their hands.
The first volley came
in late 2007. Jones Day filed a motion seeking to remove Mr. Stein and Mr.
Meyer from the case. The rationale was that, in an unrelated infant-formula
case in Kentucky, Mr. Meyer had been in touch with an expert witness that
Abbott had used in a different case. It turned out the expert had an ongoing
relationship with Abbott. None of this had anything to do with Ms. Sisk’s case.
But the trial judge concluded that the contact with the expert “constitutes the
appearance of impropriety” and granted Abbott’s motion. An appeals court
reversed the decision. Then, in 2010, the State Supreme Court upheld the
initial ruling.
More than three years
had passed since Ms. Sisk’s lawsuit was filed, and the case hadn’t progressed.
Now she had no lawyers. Mr. Stoffel, the Abbott spokesman, denied that the
company was trying to delay the legal proceedings, but Ms. Sisk was skeptical.
“Time is on their side,” she said. “It behooves them to stretch it out.”
Mr. Stein, for his
part, sounded a little awestruck by Jones Day’s hardball tactics. “It’s a
different league than we all play in,” he told me. “It was brutal.”
Ms. Sisk hired
another lawyer, Stephen Rathke, a former local prosecutor in Minnesota. He
refiled the suit in state court. Abbott then removed the case to federal court,
which essentially restarted the legal process.
Abbott’s strongest
defense was that the powdered formula that Ms. Sisk had in her possession when
Slade got sick had tested negative for Cronobacter. At the same time, a test of
her kitchen sink had turned up traces of the bacteria.
Ms. Sisk — who
described herself as a neat freak who obsessively sanitized Slade’s bottles and
used store-bought distilled water to mix with the powdered formula — said this
was because she’d dumped her son’s unfinished milk down the drain. Jones Day
argued that it was a sign that the Cronobacter that infected Slade came not from
Abbott’s formula but from Ms. Sisk’s home. There is no way to know for sure who
was right.
The case dragged on.
At one point in 2012, when Jones Day objected to a routine filing made by Mr.
Rathke, a federal magistrate judge slammed the firm for making “nonsensical”
claims that are “a waste of judicial resources.”
The trial was
scheduled to get underway in early 2014 — nearly a decade after Slade fell ill.
In late 2013, Abbott offered to settle the case for $900,000, Ms. Sisk said.
She and her lawyers regarded that as inadequate; by their math, she was staring
at something like $3 million in expenses associated with Slade’s care. Plus,
Ms. Sisk said, “they told me if I settled, I had to keep everything hush-hush.”
That was a nonstarter.
After Ms. Sisk turned
down the settlement, Abbott cranked up the heat. Shortly before the trial
began, two Jones Day lawyers, June Ghezzi and Paula Quist, informed the court
that they planned to introduce as evidence a restraining order that had been
imposed against a member of the Sisk family in 2012 — about eight years after
Slade got meningitis. The restraining order stemmed from an assault that
involved neither Ms. Sisk nor Slade. Jones Day argued it was relevant because
it caused stress that may have contributed to a seizure Slade had.
Mr. Rathke, Ms.
Sisk’s lawyer, wrote in a court filing that this was “nothing more than an
attempt to smear this family” and that “Abbott and its attorneys should be
ashamed.” Jones Day ended up not mentioning the restraining order at trial.
The firm didn’t need
it to win. Jones Day managed to sow doubt about the source of the bacteria.
After a weeklong trial, the jury concluded that Abbott was not liable.
Immediately
afterward, Jones Day sought a court order sealing some trial testimony and
evidence on the grounds that they contained confidential information about
Abbott’s testing and food safety protocols and “its sanitation, housekeeping
and hygiene.” It wasn’t an unheard-of request, but when the judge granted it,
details about Abbott’s factory in Sturgis, Mich. — the one that was shut down
earlier this year — vanished from public view. (Late last month, Abbott
announced that it would resume making Similac infant formula in
Sturgis and that the product would begin shipping in about six
weeks.)
‘Not Going to Answer’
As he worked on the
Sisk lawsuit, Mr. Rathke was also battling Abbott in a similar case in Iowa.
This one involved Jeanine Kunkel, and it would highlight how corporate litigators
can flatten outmatched opponents — and potentially cross ethical lines in the
process.
Years earlier, when Jeanine
and her twin brother were 12 days old, she’d been diagnosed with meningitis
after being fed Abbott’s powdered formula, which her parents had received in a
Similac-branded gift bag from St. Luke’s Regional Medical Center in Sioux City.
Jeanine’s parents,
Troy Kunkel and Megan Surber, told me that her twin did not drink the formula
and did not fall ill.
Mr. Kunkel and Ms.
Surber didn’t have much money. They lived in a small house, which Troy had
spruced up with carpet and other materials he procured through his job as a
construction worker. Their marriage was buckling under the pressure of caring
for their brain-damaged child.
Ms. Surber’s mother
had seen a TV ad for Mr. Stein and urged her daughter to call him. Mr. Stein,
who had lost his appetite for fighting Abbott and Jones Day, referred the
Kunkels to Mr. Rathke. In 2011, Mr. Rathke sued Abbott, seeking $16 million in
compensatory damages to cover a lifetime of caring for Jeanine.
The case was assigned
to Judge Bennett, who soon became troubled by what he saw from Jones Day. First
there was the mountain of evidence in his chambers. Then he began flipping
through the transcripts of depositions that Mr. Rathke and Ms. Ghezzi, the
Jones Day partner, had taken of witnesses. “I was shocked by what I read,” the
judge told me.
Time after time, as
Mr. Rathke questioned Abbott employees, Ms. Ghezzi had interrupted with
objections that seemed intended to steer the witnesses’ testimony. That was
potentially a violation of the federal rules of civil procedure, which require
objections to be “stated concisely in a nonargumentative and nonsuggestive
manner” and warn that “an excessive number of unnecessary objections may itself
constitute sanctionable conduct.”
In August 2012, for
example, Mr. Rathke deposed two Abbott employees, a research scientist
specializing in neonatal nutrition and a quality-assurance manager at Abbott’s
Arizona factory. Over the course of about seven hours, Ms. Ghezzi lodged
objections 115 times — an average of once every three or four minutes. And that
didn’t count what Judge Bennett said in a subsequent court filing were hundreds
of other interruptions by Ms. Ghezzi. The overall volume, he wrote, was
“astounding.”
To determine the
safety of its powdered baby formula, Abbott draws small samples from large
batches of the product at its factories. At one point, Mr. Rathke asked a
witness whether she thought there was any correlation between what was found in
those samples and the finished product that was shipped to customers. It was,
as Judge Bennett later put it, a “completely reasonable” question.
Ms. Ghezzi
interjected: “Objection — vague and ambiguous.”
“That would be
speculation,” the witness echoed. Mr. Rathke rephrased. Ms. Ghezzi interrupted
again: “Object to the form of the question. It’s a hypothetical; lacks facts.”
“Yeah, those are
hypotheticals,” the witness parroted. Mr. Rathke rephrased the question one
more time.
Ms. Ghezzi: “Same
objection.”
“Not going to
answer,” the witness stated.
“You’re not going to
answer?” Mr. Rathke asked.
“Yeah, I mean, it’s
speculation. It would be guessing.”
“You don’t have to
guess,” Ms. Ghezzi chimed in.
Over and over, this tag-team
routine played out. During a break in one deposition, Mr. Rathke’s co-counsel,
a Sioux City lawyer named Tim Bottaro, took Mr. Rathke aside. Ms. Ghezzi was
dominating what was supposed to be the plaintiff’s deposition. “Why don’t you
just let June do the deposition?” Mr. Bottaro recalled saying. “You’re getting
steamrolled!”
The depositions were
important. Before the trial, Abbott sought a summary judgment ruling based in
part on them. Portions would be read aloud to jurors during the trial. There
was no telling what the witnesses might have said if Ms. Ghezzi hadn’t objected
every few minutes, and Judge Bennett said he found it “inconceivable” that her
interruptions had not influenced their testimony.
At trial, Mr. Rathke
and his expert witnesses argued that the sole logical explanation of how
Jeanine got sick was that the bacteria was in the powdered formula. That was
the only thing Jeanine had consumed, and it was a common carrier of
Cronobacter.
Jones Day’s strategy,
as is the norm in product liability cases, was to raise doubts and cast blame
elsewhere. An expert witness testified that Jeanine’s symptoms showed up so
soon after she consumed the formula that she must have already been infected at
the time of the feeding. The lawyers noted that the formula that the government
tested didn’t contain Cronobacter. Maybe visitors had brought the bacteria into
the house? Perhaps it was on the bottle that Megan had used or in the water
that she had mixed with the powder. Really, it could have come from anywhere.
The jury deliberated for seven hours before delivering its verdict:
Abbott was not liable.
Mr. Rathke called Jeanine’s parents. “I hate to tell you this, but we
lost,” he said.
A Slew of Lawsuits
Judge Bennett was not
stunned by the verdict — he’d been impressed by the Jones Day team’s lawyering
during the trial — but he told me it was the wrong outcome. “If it had been a
bench trial, I would have ruled for the plaintiffs in all likelihood,” he said.
(Mr. Stoffel, the Abbott spokesman, said that if the judge felt that way, he
could have entered a verdict in the plaintiff’s favor or granted a new trial.)
After its recall of
formula this year, Abbott has been sued at least 30 times in federal courts
around the country. Lawyers representing plaintiffs in those cases said the
amount of evidence that has recently entered the public domain — including
a lawsuit that the Justice Department filed against
Abbott and a whistle-blower complaint submitted to the F.D.A. by
a former employee — makes them optimistic that they will fare better against
Abbott than their predecessors did.
Abbott, though,
already appears to be laying the groundwork for a robust defense,
repeatedly stating that there is no proven link between its
formula and the infants who recently fell sick or died. (Mr. Stoffel said Jones
Day is not representing Abbott on any of the recently filed lawsuits.)
For the Kunkel
family, all of this has been an infuriating reminder of their legal ordeal —
and how Abbott managed to avoid public attention to their child nearly dying
after consuming powdered formula.
“They didn’t want
nobody to know” about the risks, Mr. Kunkel told me in August. “How many more
families have been hurt since then?”