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Canadian Wildfire Damage & Trump's Multibillion Dollar Lawsuits | Bloomberg Law

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Canadian Wildfire Damage & Trump's Multibillion Dollar Lawsuits | Bloomberg Law

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0:02

This is [music] Bloomberg Law with June

0:05

Graasso from Bloomberg Radio.

0:08

Canada's wildfire crisis remains

0:11

critical. About 900 wildfires are

0:14

currently burning in Canada and more

0:16

than 9 million acres of land have been

0:19

burned. The crisis has spilled across

0:21

the border, sending dangerous smoke that

0:24

has turned the skies over cities like

0:26

New York, Chicago, and DC into a toxic

0:30

haze. Smoke from wildfires carries

0:33

noxious gases and particulate matter

0:35

that can trigger severe respiratory and

0:38

heart problems in people living

0:40

thousands of miles away. Last week, more

0:43

than a 100 million Americans were under

0:45

air quality alerts. It's just gotten so

0:48

so so bad.

0:50

>> It's affecting everybody's physical

0:52

activity. No doubt.

0:54

>> It's terrible. And I feel like you go

0:55

inside, you could still smell it.

0:57

>> In post this weekend, President Trump

1:00

called Canada's handling of the

1:01

wildfires willful negligence and said

1:04

the cost of the pollution should be

1:06

added to tariffs on that country. My

1:09

guest is Columbia Law School professor

1:11

Michael Gerard, an expert in

1:13

environmental law and director of the

1:15

Sabbin Center for Climate Change Law.

1:18

How much of a danger do the Canadian

1:20

wildfires pose?

1:22

>> These Canadian wildfires are enormous.

1:24

They're spreading unhealthy air

1:26

throughout North America. And we know

1:28

that this wildfire smoke causes all

1:31

kinds of negative health effects. So,

1:33

this is a very serious event. The number

1:35

of wildfires in both Canada and the

1:38

United States seems to be growing every

1:41

year. Is that because of climate change?

1:44

>> Yes, they're sparked mostly by

1:46

lightning, but climate change is making

1:48

them much worse. When you have extreme

1:50

heat conditions, which is what we've

1:52

been having, it dries out the trees and

1:54

the other vegetation. And when the

1:57

lightning hits, it causes a major fire.

2:00

So, we've always had wildfires, but

2:02

they're much worse. And the smoke

2:04

conditions are now much worse than they

2:06

had been in the past.

2:08

>> This situation with smoke crossing

2:10

borders, that's not just limited to

2:14

Canada and the US is it's a global

2:16

thing.

2:17

>> That's right. This has happened for a

2:18

long time all over the world. There have

2:21

been efforts to address it legally, but

2:23

there really isn't anything effective

2:25

that the law can do in terms of imposing

2:28

liability over this kind of smoke. If it

2:30

were coming from a discrete factory or

2:32

something, that could be a different

2:34

story. But these wildfires coming from

2:36

immense areas, there's not really a

2:38

legal remedy.

2:39

>> Would the wildfires be considered a

2:42

natural disaster like an earthquake?

2:44

>> Yes, like an earthquake or a volcano or

2:47

something like that. a country is not

2:48

liable for a natural disaster that

2:51

happens within its borders that causes

2:53

harm in other countries. There are other

2:56

things that countries are doing that is

2:58

increasing these wildfires, most notably

3:01

greenhouse gas emissions, but we don't

3:03

have an effective legal remedy for this

3:05

kind of thing.

3:06

>> Over the weekend, President Trump

3:09

expressed criticism of Canada's handling

3:11

of the wildfires, calling it willful

3:13

negligence. We're holding Canada

3:15

responsible for the fact that they're

3:17

not properly maintaining their forests

3:18

and brushed therein. And the United

3:21

States is being unnecessarily invaded by

3:23

filthy, polluted, and unhealthy air.

3:27

>> Well, it's true that a lot of bad air is

3:29

coming down from Canada, but that's the

3:30

only part of it that's true. The

3:32

Canadian northern forest, the boreal

3:34

forests are about seven times the size

3:37

of Texas. So, what do you do? How do you

3:40

control that? It's naturally occurring.

3:42

As I say, it's lightning that sparks the

3:45

wildfires. If anybody wants to complain

3:48

about the causes of the wildfires, it's

3:50

mostly climate change. And the US is

3:53

responsible for something like 10 times

3:56

the greenhouse gases in the atmosphere

3:58

than Canada. So if anybody could sue

4:01

anybody, it would be Canada suing the

4:03

US. But of course, they can't either.

4:04

>> Is that because there's no jurisdiction?

4:07

>> That's right. The international court of

4:08

justice in the HEG can adjudicate

4:11

disputes between countries that have

4:13

consented to that kind of jurisdiction.

4:15

Uh the US has not consented to the

4:18

jurisdiction of the ICJ for this kind of

4:21

case. Even if it had, what would the

4:23

remedy be? It's not as if Canada can go

4:26

in with 10 million airplanes and put out

4:28

the the wildfires. There really isn't an

4:30

effective remedy for that.

4:32

>> Trump says he's going to increase the

4:35

tariffs. I mean, that is something I

4:37

guess he can do, right?

4:38

>> Well, there's actually a legal dispute

4:39

about that, whether he has the authority

4:41

to increase the tariffs, but he he can

4:44

try and it may not succeed in courts.

4:46

But what does it do to help the wildfire

4:48

situation? It does nothing.

4:49

>> I guess it's like a tit for tat. We'll

4:51

get some money from you, you know, just

4:53

recompense, I guess.

4:55

>> But, you know, the wind goes in both

4:56

directions. Uh, sometimes the smoke from

4:58

the US goes north, and so it is tit for

5:01

tat and it could start going in the

5:03

other direction. Singapore has a law on

5:05

the books,

5:06

>> right? In in Southeast Asia, there's a

5:09

great deal of wildfire smoke coming

5:11

primarily from agricultural burning in

5:14

Indonesia and Malaysia. So, Singapore is

5:18

one of the places that especially badly

5:21

hurt by that. Sometimes they have to

5:22

shut down their airports, close their

5:24

schools. There's a regional agreement in

5:27

Southeast Asia to try to deal with this,

5:30

but it hasn't accomplished much. The one

5:32

thing that has happened is that

5:34

Singapore passed a law saying that any

5:36

Singaporean companies that engage in

5:39

this kind of burning uh in other

5:41

countries can be liable. So there's a

5:43

big pulp and paper company based in

5:46

Singapore that has engaged in this kind

5:49

of burning in Indonesia and Singapore

5:51

has taken some actions against that

5:53

company but it's it's a very very small

5:55

and limited kind of action. Let's say

5:58

there's a business that's been damaged

6:00

in some way because of the wildfire

6:04

smoke. For example, some camps have

6:06

experienced declining numbers. Can they

6:09

sue Canada in a Canadian court?

6:11

>> Canada and other countries have

6:12

sovereign immunity for most kinds of

6:15

liability unless they have specifically

6:18

waved their immunity for this kind of

6:21

case. And I don't believe that Canada

6:24

has waved its immunity here. Uh when you

6:27

do have a waiver of sovereign immunity,

6:29

it's usually because the country has

6:30

been negligent or you know like a

6:33

somebody gets hit by a postal truck,

6:35

they can sue the postal service. But

6:37

this is not the kind of thing that

6:39

results from negligence of the kind that

6:42

typically invokes the waiver of

6:44

sovereign immunity.

6:45

>> So we have an agreement with Canada, the

6:49

Canadian United States Air Quality

6:51

Agreement of 1991.

6:54

What's that about? Does it have anything

6:56

to do with what's happening now?

6:58

>> Well, it provides that the two countries

7:00

can reach agreements on specific kinds

7:02

of air pollutants and what they're going

7:04

to do about it. So, there's now a

7:06

specific agreement on sulfur dioxide,

7:08

which causes acid rain. There's an

7:10

agreement on mercury. Uh so, when there

7:12

is an agreement on specific substances,

7:15

then the country can be legally

7:18

obligated to take certain actions to

7:20

reduce those kinds of pollutants. But

7:22

there's no such agreement between the

7:24

United States and Canada covering

7:26

wildfire smoke. Someday theoretically

7:28

they could do that. They could negotiate

7:30

that. But that hasn't happened.

7:32

>> Most countries with this crossborder

7:34

pollution, how do they handle it? I

7:36

mean, do they work together? Do they

7:38

make agreements?

7:39

>> If it's a controllable kind of

7:41

pollutant, they can reach agreements on

7:43

how to handle it. So with with acid

7:45

rain, the United States now has a law to

7:47

reduce the use of high sulfur coal to

7:49

generate electricity. with mercury there

7:51

are other specific things that could be

7:53

done but with wildfires particularly the

7:55

kind of wildfires that are coming down

7:57

from Canada there isn't there are

7:58

certain forest management things that

8:01

could be done in different kinds of

8:03

forests to try to reduce the wildfires

8:06

on that neither the United States nor

8:08

Canada have done a terrific job but

8:11

these wildfires are of such a magnitude

8:14

that international agreements can have

8:15

only a very very limited impact

8:17

>> in the US is that because the

8:19

administration has dismantled key

8:22

agencies in fields such as climate and

8:25

conservation work through mass firings

8:28

of federal workers.

8:30

>> One of the things that can be done in

8:32

certain kinds of forests is called

8:33

prescribed burning. Uh you go in and you

8:36

start small fires that clear away the

8:39

underbrush and so forth so that other

8:41

fires can't get so large. The United

8:43

States for many years had a policy that

8:46

largely inhibited prescribed burning.

8:48

And that's one of the reasons some of

8:50

the fires in the Pacific Northwest had

8:52

been so bad. Very recently, there were

8:54

some prescribed fires planned for

8:56

Minnesota that would have reduced fires

8:58

there, but under Elon Musk's Doge, they

9:02

greatly cut back on that. They did not

9:04

engage in the prescribed burning, and so

9:06

the fires in Minnesota seemed to be much

9:09

worse than they might have been

9:10

otherwise. Looking toward the future, it

9:12

does it seem as if the wildfire

9:15

situation may get worse in both Canada

9:18

and the US?

9:19

>> Yes, it'll clearly get worse as the

9:22

planet gets hotter and you have worse

9:25

fires. There's no question that the

9:26

wildfire situation and the smoke

9:29

situation will get worse. Clearly, the

9:32

governments can act to help protect

9:34

their citizens, have better early

9:36

warning systems, have clean air rooms

9:39

that are provided for people who don't

9:40

have air conditioning and so forth, or

9:42

provide masks. There are a number of

9:44

things that can be done to help protect

9:46

people from the wildfire smoke, but only

9:48

a very limited amount can be done to

9:50

reduce the smoke itself over the short

9:53

and medium term. Over the long term, we

9:55

need massive reductions in greenhouse

9:58

gas emissions, which is mostly involving

10:00

massive reductions in the use of fossil

10:02

fuels, but it takes a very long time for

10:04

that to have a positive impact on

10:06

wildfires.

10:07

>> I mean, the Trump administration is

10:09

trying to advance fossil fuel

10:11

development, right?

10:12

>> Of course, they're moving in exactly the

10:14

opposite direction of where we need to

10:16

be. Oh, they're all about trying to

10:18

maximize both the demand for and the

10:21

supply of fossil fuels. They're denying

10:23

that climate change is a serious

10:24

problem. They're trying to wipe out all

10:27

US policies to address climate change.

10:29

>> Can you get insurance for smoke damage?

10:32

>> There's actually some dispute about

10:33

that, about whether conventional

10:35

insurance policies cover smoke damage.

10:38

You can certainly buy a policy that has

10:41

a smoke rider, but that's an exception

10:43

rather than the rule.

10:45

>> Biden tried to leave an environmental

10:47

legacy. And has Trump undone it already?

10:51

You know, there have been a lot of areas

10:52

that he's tried to roll back what Biden

10:55

did.

10:56

>> Trump is certainly working hard to undo

10:58

Biden's environmental legislation and

11:00

his other legacy. Now, sometimes the

11:03

courts have stood in the way. There are

11:04

lots of litigation pending. In some

11:06

cases, what Trump has tried to do has

11:09

been halted, but in other cases, it's

11:11

gone forward. I would say the the action

11:13

that has had the most serious effect is

11:15

the roll back on the motor vehicle

11:16

standards. Transportation is the largest

11:18

source of greenhouse gas emissions in

11:20

the United States. The Biden

11:21

administration worked very hard to clean

11:24

up both the passenger cars and the heavy

11:26

duty vehicles like trucks and buses and

11:29

to move toward electric vehicles which

11:31

are ultimately this the way we need to

11:33

go. And Trump has greatly cut back on

11:36

that has damaged the US electric vehicle

11:39

industry. greatly helped the Chinese

11:42

electric vehicle industry since they're

11:44

making terrific EVs that are very

11:46

inexpensive but you can't buy in the US.

11:49

Trump has also slowed down or stopped

11:51

the closure of a lot of coal fired power

11:53

plants which another major source of

11:56

greenhouse gas emissions in the United

11:57

States. So, he's done a lot of damage.

12:00

>> And he speaks out against wind and solar

12:02

power every chance he gets.

12:04

>> At a time when he's encouraging data

12:06

centers, which are greatly increasing

12:09

the demand for electricity, he's trying

12:11

to wipe out the principal new source of

12:14

electricity, which is wind and solar.

12:16

It's completely irrational.

12:17

>> Thanks so much for joining me. That's

12:19

Colombia Law School Professor Michael

12:20

Gerard. Coming up next, Trump's lawsuits

12:24

against the media and banks. This is

12:26

Bloomberg.

12:28

President Donald Trump is suing the Wall

12:30

Street Journal, the New York Times, the

12:33

BBC, JP Morgan Chase, and Capital One,

12:37

each for between 5 and $15 billion. And

12:41

there have been some highstakes hearings

12:43

in Florida after major setbacks in a few

12:46

of the cases. Joining me is Bloomberg

12:48

legal reporter Eric Larson, who has been

12:51

following all these cases. Eric, before

12:54

we get to the cases where Trump is

12:56

suing, let's talk about the civil cases

12:59

where he lost and verdicts were returned

13:02

against him and those involve writer

13:04

Eugene Carol. Tell us about the huge

13:07

verdict in her defamation case against

13:09

Trump.

13:10

>> A big verdict uh that she won against

13:13

Trump. $83.3 million is what the jury uh

13:17

put the damages at. Of course, Trump

13:19

appealed. it was upheld on appeal and

13:22

he's expected to very soon uh ask the

13:24

Supreme Court to hear the case. Of

13:27

course, unclear if the justices will

13:29

take it, but he is going to ask. And of

13:33

course his other case with Egene Carol,

13:35

the $5 million sexual abuse civil case

13:39

that uh she also won against Trump.

13:41

Trump also appealed that and the Supreme

13:43

Court uh declined to hear his appeal and

13:47

uh the president has asked the justices

13:49

to reconsider that decision. A pretty

13:51

remarkable request that they have not

13:53

responded to yet.

13:54

>> What is his claim in the defamation

13:56

case? What might the issue be that he

13:58

takes to the Supreme Court? So Trump

14:01

argues that at the trial, the jury heard

14:04

improper evidence uh that should not

14:07

have been in the trial. Uh specifically

14:10

the testimony and allegations of two

14:12

other women who had accused Trump of

14:14

sexual assault years ago and the

14:18

so-called Access Hollywood tape um in

14:21

which Trump is on a hot mic speaking

14:23

crudely about uh women and being able to

14:26

grab the genitals of women without

14:29

consent. if you're a star, that sort of

14:31

thing. Trump argues that that was

14:33

inappropriate to have in in the case.

14:35

>> So, let's turn now to the cases where

14:38

Trump is suing over defamation, the $10

14:42

billion lawsuit against the Wall Street

14:45

Journal.

14:46

>> He's alleging that the Wall Street

14:48

Journal defamed him with an article

14:49

related to Jeffrey Epstein. specifically

14:52

this article about Trump allegedly uh

14:55

sending a birthday note to Epstein for

14:58

his 50th birthday years ago that uh

15:01

contained, you know, a personal note to

15:04

to Epstein that was sort of typed out

15:07

within a a handdrawn uh shape of a woman

15:11

and with Trump's signature forming the

15:13

pubic region of the drawing. So, this

15:16

was a Wall Street Journal story that

15:18

said that this was from Trump. Trump

15:20

denied that and filed this lawsuit. I

15:23

>> mean, there was a dismissal of the suit.

15:25

Why did the judge dismiss the complaint?

15:28

>> Right. So, the first version of the

15:30

complaint was dismissed because it did

15:32

not have enough details in the complaint

15:35

backing so-called actual malice, which

15:38

is a higher standard for public figures

15:40

like Trump to file defamation lawsuits.

15:42

They have to show they have to show that

15:44

the Wall Street Journal in this case

15:46

knew that what it was reporting was

15:48

false or had reckless disregard for the

15:51

truth and that's actual malice. The

15:53

judge dismissed the the suit, granted

15:55

the journal's motion to dismiss it,

15:57

saying that there wasn't enough detail

15:59

in there to prove actual malice. But the

16:02

judge dismissed it without prejudice and

16:04

said that Trump could refile a new

16:05

version if he wanted to try again, which

16:07

he did. The journal has moved to dismiss

16:09

that version as well. And there's

16:12

actually a hearing on that motion to

16:13

dismiss on August 5th in Miami.

16:16

>> As we said, it's a very high bar to

16:18

prove actual malice. Did Trump in the

16:21

complaint in the new complaint make a

16:24

case for actual malice?

16:26

>> I mean, that's really what the what the

16:28

hearing is going to be about, what the

16:30

the judge is going to have to decide. I

16:33

all I can say is that in the motion to

16:34

dismiss the second complaint, the

16:36

amended complaint, the journal said that

16:38

there was no new detail backing up

16:41

actual malice and and said the new

16:43

complaint suffered from all the same

16:45

problems that what uh Trump was saying

16:47

in it was not really factual, that it

16:50

was just including more details about

16:52

how the journal purportedly uh did not

16:55

support its story sufficiently, did not

16:57

give enough weight to Trump's denial

16:59

that he wrote that note that he had

17:01

signed it um and that you know the

17:04

headline and other parts of the story

17:06

you know explicitly said that you know

17:08

it was Trump's note to Epstein when they

17:11

allegedly did not back that up in the

17:12

story.

17:13

>> We should say that truth is a defense

17:16

and didn't a lot of media outlets

17:18

describe that note as being from Trump.

17:21

>> Well, I think the key here on the

17:24

falsity angle is that the House

17:27

Democrats, you know, released the this

17:29

actual letter. uh came in as part of

17:31

their Epstein investigation. The Epstein

17:34

estate handed over a lot of, you know,

17:36

stuff of of Epstein's and including um a

17:39

big book that compiled all of these uh

17:42

birthday notes from other people for

17:44

Epstein's 50th birthday. So that's part

17:46

of the record that was handed over to

17:47

Congress and the Journal argues that,

17:50

you know, that proves that it was true.

17:53

And Trump doesn't see it that way. We'll

17:55

see if the journal gets a dismissal and

17:58

if the dismissal is with prejudice. So

18:01

now he's also suing, surprise surprise,

18:03

the New York Times for 15 billion,

18:07

>> right? And that this complaint alleges

18:09

defamation from several articles and

18:12

also a book uh written by a Times

18:14

reporter called Lucky Loser. Um, and

18:18

generally the complaint alleges that uh

18:20

the New York Times just had a a policy

18:23

of treating him unfairly in their

18:25

stories that the the articles and book

18:28

demeaned his success as a businessman

18:30

and uh in various ways suggested that he

18:33

hadn't earned his fortune um or fame

18:36

that it was just sort of handed to him.

18:38

This case, you might recall it was not

18:41

dismissed. was basically thrown out of

18:44

court a few days after it was filed by a

18:46

judge who said that it it violated court

18:48

rules by containing way too much detail

18:51

about Trump's fame and fortune and his

18:53

rise in politics and and and other

18:55

details that the judge said was

18:56

completely irrelevant to the lawsuit

18:58

such that it violated court rules and

19:01

Trump's lawyer had to uh refile a

19:03

version uh that was half as long. He was

19:05

given a page limit and the Times has

19:08

moved to dismiss it and it's the same

19:10

general arguments as the Wall Street

19:11

Journal cases. They say that that their

19:13

reporting is accurate. They stand by it

19:15

and that Trump hasn't properly alleged

19:17

actual malice. And so this was a a case

19:21

that they just had a hearing on the

19:23

motion to dismiss uh last week in Tampa,

19:26

Florida uh before a federal judge who um

19:29

did not give any hint one way or the

19:32

other how he was thinking during that

19:33

hearing. um and reserve judgment and

19:35

we're expecting a decision on that at

19:37

any time.

19:38

>> That's unusual. Usually there's a little

19:40

bit of a hint. Okay. And he's also suing

19:42

the BBC for $10 billion.

19:46

>> Yes. This is over that edit of Trump's

19:49

uh so-called stop the steel speech at

19:52

that stop the steel speech rally before

19:55

the January 6th attack on the capital in

19:58

late 2024. the BBC did a a panorama

20:00

documentary about uh Trump's supporters

20:03

uh and how he you know continues to keep

20:06

support um despite his various legal

20:09

issues and controversial incidents like

20:12

January 6th. Um and in that documentary

20:15

they spliced together two different

20:17

parts of his speech into a 12-second

20:19

clip uh that made it seem like he had

20:22

made a direct call for violence. And

20:24

that's actually something that the BBC

20:27

chairman apologized for. or he issued an

20:29

apology trying to I think avoid this

20:32

lawsuit being filed cuz Trump had

20:34

threatened to sue. Uh the apology was

20:36

issued but they stood by their argument

20:38

that they hadn't defamed him. So Trump

20:40

did file the suit and it's a really

20:42

unusual case. Uh frankly it's it's going

20:45

in some different directions uh than the

20:47

typical defamation case would at this at

20:49

this point. And namely because uh the

20:52

BBC has decided to issue dozens of

20:54

subpoenas uh to members of Trump's inner

20:57

circle, former cabinet members, federal

20:59

agencies, trying to uh build a picture

21:02

of Trump's communications

21:05

um before leading leading up to that

21:07

speech. Essentially, they're arguing on

21:09

the on the matter of falsity, you know,

21:11

whether or not the implication of the 12

21:14

second edited clip, notwithstanding the

21:17

apology, whether it might have actually

21:19

been accurate regardless that Trump

21:21

really was calling for or inciting

21:24

violence that day. What? And so, they

21:26

are arguing that the case really Trump

21:29

has to prove that he did not incite the

21:31

January 6th riot in order to win this

21:34

defamation case. That's what the BBC has

21:36

said in court and in court filings. Um,

21:38

so that's the point of all of these

21:40

subpoenas. There was a hearing on those

21:42

subpoenas last week in Miami. and Trump,

21:46

his lawyer, fought very hard over a

21:48

couple of hours to get those subpoenas

21:50

thrown out uh not only to members of the

21:52

inner circle, but another subpoena to

21:54

the Trump Organization for all kinds of

21:56

financial documents because uh the BBC

21:59

wants to see evidence that Trump really

22:02

has suffered billions of dollars in

22:05

damage to his business and his brand and

22:08

his future financial prospects as his

22:10

complaint claims. So, the judge upheld

22:13

those subpoenas. Um, but she did

22:15

indicate that she might be narrowing

22:17

those subpoenas to the Trump inner

22:19

circle because she said she doesn't want

22:21

this case to become a new, you know,

22:23

trial over January 6th. So, she's going

22:26

to issue a written order later where

22:28

we'll see what the subpoenas might be

22:30

narrowed down to. But, I feel like it

22:32

could be a long fight over these

22:33

subpoenas is what I'll say. I don't

22:35

think this is the last ruling that we'll

22:36

we'll get on those, but it is an

22:39

interesting angle for the BBC's defense.

22:41

Yeah. And also I mean Trump's wealth

22:44

increased by almost $2 billion about

22:47

since he's been president. So

22:49

>> BBC's lawyer did raise that fact in the

22:52

court hearing saying that uh you know

22:54

Trump he had put the figure at 1.4

22:56

billion or so. Um and also the fact that

22:59

Trump won the election shortly after

23:02

that that documentary went out. So they

23:05

argue it didn't harm him anyway. But it

23:08

was interesting to see Trump's lawyer

23:10

arguing this particular point in court

23:13

because especially on the Trump

23:14

Organization financial documents

23:16

subpoena, the judge made it clear that

23:18

it seemed reasonable to subpoena those

23:20

those records if Trump was claiming so

23:22

much harm. And Trump's lawyer

23:24

essentially said that he would be

23:25

willing to correct the record and amend

23:27

the lawsuit. to basically file a new

23:30

complaint in order to uh focus the

23:33

alleged financial damages only on

23:35

Trump's reputation. The BBC argues that

23:38

the Trump or Trump's reputation are one

23:40

and the same. But at any rate, it was a

23:42

magistrate judge who isn't the official

23:45

judge overseeing this case, and she said

23:46

that she wouldn't allow Trump to amend

23:49

the complaint at this point. He'd have

23:50

to go back to the the main judge

23:52

overseeing the case and request

23:53

permission to do that, which would be

23:55

remarkable to have to walk back a

23:56

complaint like that. That request hasn't

23:58

been made yet.

23:59

>> That is an interesting lawsuit. To me,

24:02

the most interesting of the three so

24:03

far. And Eric, there have been some

24:06

defamation lawsuits where the defendants

24:09

have settled with Trump,

24:10

>> right, with ABC and CBS, you know, after

24:13

the election or after he took office.

24:16

Each of those settled for about 156

24:18

million. So, I mean, a lot less money

24:21

than we're talking about in these other

24:22

cases. But, you know, there were a lot

24:24

of companies that settled with Trump

24:26

around that time. And you know, there

24:28

there's long-running cases involving

24:30

Twitter, now X, Facebook, Meta,

24:33

Facebook, Google's YouTube, you know,

24:35

that he had sued over his accounts being

24:38

frozen or cancelled after January 6th,

24:40

that sort of thing. And all all of those

24:42

settled.

24:43

>> We should just take note of the timing

24:45

of those settlements. Stay with me,

24:47

Eric. Coming up next on the Bloomberg

24:50

Law Show, we'll take a look at Trump's

24:52

suits against two banks for debanking.

24:56

I'm June Grao and this is Bloomberg.

25:01

We're taking a look at the status of

25:03

President Donald Trump's lawsuits

25:05

against three media companies and two

25:07

banks, each for between five and 15

25:11

billion dollars. I've been talking to

25:13

Bloomberg legal reporter Eric Larson.

25:15

Eric, let's turn to the suit that's

25:17

gotten the most attention, I think, and

25:19

that's Trump versus the IRS.

25:23

That $ 1.8 billion dollar so-called

25:26

anti-weaponization

25:27

fund was the subject of much questioning

25:31

during the confirmation hearings of Todd

25:34

Blanch for attorney general. He

25:37

testified the fund is not going forward,

25:39

but Trump talks about it positively

25:42

nonetheless.

25:43

>> It was settled. It's worth noting that

25:46

Trump filed this $10 billion lawsuit to

25:49

get $10 billion for the leak of his tax

25:53

information, unauthorized leak of his

25:55

tax information to the press uh by an

25:58

IRS contractor in 2019. The contractor

26:01

who by the way pleaded guilty and was

26:03

sentenced to 5 years in prison. So the

26:05

case didn't really achieve what the

26:08

stated purpose of the case was to

26:10

achieve, which is to get $10 billion.

26:12

Instead, they settled it, as you as you

26:14

said, for a $1.8 billion

26:17

anti-weaponization fund, which uh

26:20

everyone was complaining about because

26:22

it appeared likely to benefit Trump

26:24

supporters. And even January 6th

26:26

writers. Uh so, as you said, that got

26:29

scrapped. There was a bipartisan outcry.

26:32

But a day after that settlement, there

26:33

was a new settlement was also announced

26:35

that gave Trump and his family and

26:37

business entities a broad release from

26:40

audits over past tax information. So, so

26:43

that there wouldn't be any future

26:45

actions brought over past tax audits.

26:48

So, it was pretty remarkable and they've

26:51

kept that in place for now. So, so that

26:54

is still an active part of the

26:56

settlement. But the judge who oversaw

26:58

the IRS case at the urging of a group of

27:01

uh dozens of former federal judges

27:03

looked back into the case and how her

27:06

court was used to achieve this

27:08

settlement and decided that Trump had

27:11

attempted to manipulate the court by

27:12

filing a lawsuit in which he controlled

27:14

not only his side but the other side as

27:17

the president overseeing the IRS and the

27:19

US Treasury which was also a defendant.

27:22

So, uh, she said that that was wholly

27:24

inappropriate and she issued an order

27:26

barring Trump or the administration from

27:28

ever citing that settlement, that audit

27:31

immunity settlement in any sort of

27:34

proceeding, effectively making it

27:36

useless. So, we don't know if the

27:39

government or Trump are going to appeal

27:41

that. Um, it's just been sitting there

27:43

since it was issued. Obviously, uh,

27:45

Trump, you know, that's something that

27:47

he would be likely to appeal, but we

27:49

don't know that for for sure yet. Yeah,

27:51

maybe he's waiting until the Blanch

27:54

nomination gets out of committee. So now

27:56

he's suing JP Morgan for only $5

28:00

billion,

28:01

the lowest sum he's suing for, I think.

28:04

>> Yes. Yes. This is a debanking lawsuit.

28:08

Uh he's saying that JP Morgan closed his

28:11

personal accounts out of political

28:13

animus uh toward him as an

28:16

anti-onservative

28:17

discrimination. So, it wasn't long after

28:21

January 6, you know, after Trump left

28:23

office that that this occurred. So,

28:25

we're at a pretty early stage in that

28:27

case, honestly. They're they're still

28:29

waiting for a ruling on the bank's

28:31

request to move the case from federal

28:34

court in Florida to federal court in

28:37

Manhattan where they say it should be uh

28:40

the case has to go under their customer

28:42

agreements. But Trump is arguing against

28:44

that. wants to keep it in Florida and

28:45

also wants to move it back to state

28:47

court from federal court where where

28:48

where Chase moved it right after it was

28:50

filed. So, we've got this whole argument

28:53

going over venue. Part of it has to do

28:55

with whether Jamie Diamond, the CEO,

28:57

who's also a defendant, would be part of

28:59

the case. So, it's still very early days

29:02

on on that one and we're just waiting

29:04

for this ruling on on the venue.

29:06

>> The Trump Organization is suing Capital

29:08

One. Is that also debanking?

29:11

that is it's the same type of lawsuit

29:13

that we just discussed except it's uh

29:15

filed by Trump or instead of Trump.

29:17

Capital One canceled hundreds of of

29:19

Trump Organization uh accounts uh I

29:22

think around March 2021. Uh so it's very

29:27

similar very similar allegations. That's

29:30

a lawsuit that was also dismissed uh by

29:32

actually a Trump appointed judge. But

29:35

then he allowed Trump to actually do

29:38

discovery into Capital 1 and then file

29:41

an amended complaint uh which Capital

29:43

One was not too pleased about, but they

29:46

they went along with that and and have

29:48

been engaging in in discovery for months

29:50

now. And uh that allowed Trump to file

29:54

an amended complaint. I wish I could

29:56

tell you what was different about it or

29:58

what they found in their discovery, but

30:00

it's just pages and pages and pages of

30:02

redactions in the amended complaint.

30:06

Some pages don't have anything viewable

30:07

on them

30:08

>> really.

30:09

>> So, I think that those redactions might

30:10

get lifted after some negotiations, but

30:14

I don't think I've ever seen that quite

30:16

before. But, uh, and you've seen a lot

30:18

of redactions.

30:19

>> Yeah. It does suggest though that maybe

30:21

uh Trump found uh something interesting

30:23

to put in their complaint to to back

30:26

their um assertion that Capital One

30:29

closed the accounts for improper

30:31

political reasons. Uh so we'll have to

30:34

wait and see cuz that was the reason

30:36

that the judge dismissed it. He said

30:37

that there just wasn't enough in the

30:40

complaint to back this assertion that

30:42

they were clo the accounts were closed

30:44

for out of political bias.

30:46

So, one of Trump's lawyers has actually

30:50

been referred to the Florida Bar. Tell

30:53

us about

30:54

>> Alejandro Breurto is Trump's main

30:56

personal lawyer in all of these cases

30:59

and also in the Capital One case uh by

31:02

Trump or in the IRS case that that

31:05

ruling that said that the IRS case uh

31:08

was an abuse of the court. That is the

31:11

ruling in which Breurto was referred to

31:13

the Florida Bar for potential

31:16

disciplinary action. Um, nothing's

31:18

happened on that yet and Breurto hasn't

31:21

commented on it either.

31:22

>> Have we gone through all the current

31:23

suits? Oh, no, no, no, we haven't, Eric,

31:26

because coming back to New York from

31:28

Florida. So, Trump is appealing the hush

31:32

money conviction.

31:34

>> Yes, that has been going on for a while.

31:38

We're expecting soon that the New York

31:41

uh district attorney Alvin Brag will

31:43

file his brief in that appeal arguing

31:46

why the verdict um should be upheld.

31:49

That's in the New York state court

31:51

appeal track. Uh but they're also trying

31:53

to get the federal court to to throw it

31:57

out, arguing again that that the case

31:59

should have been in in federal court and

32:01

that the the evidence at trial was not

32:04

appropriate because the judge uh

32:07

allegedly did not fully consider the

32:09

implications of the Supreme Court's

32:11

immunity ruling for Trump. that some of

32:13

the things that came up in the hush

32:14

money trial should not have been

32:16

presented to the jurors because it was

32:19

um related to Trump's presidential

32:22

activities uh or conversations. So that

32:26

is something that we're also waiting

32:27

waiting on a decision for.

32:29

>> And these cases are going to be around

32:31

for a long long time because I mean is

32:36

there ever a case where he doesn't take

32:39

an appeal? He seems to always appeal to

32:42

the state appellet courts or the federal

32:44

appellet courts and then as we've

32:47

discussed he's gone to the Supreme Court

32:48

as well.

32:49

>> I think Trump's legal team has strongly

32:52

indicated that they don't consider any

32:54

verdict or ruling in any case to be

32:57

final until every possible appeal route

33:00

has been exhausted. So I think even all

33:03

these defamation cases, you know, if

33:06

these complaints are dismissed, we can

33:08

expect pretty drawn out appeals on that.

33:10

And actually, as we were discussing

33:12

actual malice, that's standard that was

33:15

set, you know, in the landmark New York

33:17

Times versus Sullivan. It's a big free

33:19

speech case as I said that that set a

33:21

higher standard for public figures to

33:23

file uh defamation lawsuits with the

33:25

idea being that you know the press needs

33:28

to be free to look into these public

33:30

figures to do their jobs and not be

33:32

afraid of being bogged down by

33:34

defamation lawsuits you know to be

33:36

chilled by the the prospect of that. So

33:39

that's a standard that uh I think you

33:41

know Trump's side and plenty of others

33:43

are hoping maybe the Supreme Court will

33:45

do away with and I suppose one of these

33:47

cases would be a way for them to try to

33:49

make that happen.

33:49

>> I think Justice Clarence Thomas is

33:52

someone who has advocated for that as

33:54

well. Thanks so much Eric for going

33:56

through all these suits with us. That's

33:59

Bloomberg legal reporter Eric Larson.

34:01

And that's it for this edition of the

34:03

Bloomberg Law Show. Remember, you can

34:05

always get the latest legal news on our

34:07

Bloomberg Law podcast. You can find them

34:09

on Apple Podcast, Spotify, and at

34:12

www.bloomberg.com/mpodcast/law.

34:16

And remember to tune in to the Bloomberg

34:18

Law Show every week night at 1000 p.m.

34:21

Wall Street time. I'm June Graasso and

34:23

you're listening to [music] Bloomberg.

Interactive Summary

The video provides an overview of the ongoing Canadian wildfire crisis and its environmental impact, followed by a comprehensive legal analysis of the various lawsuits initiated by former President Donald Trump. It details the environmental factors contributing to wildfires, the legal challenges regarding international air quality issues, and an in-depth breakdown of Trump's defamation cases and "debanking" lawsuits against media organizations and financial institutions.

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