Legal News for Fri 10/11 - Trump Legal Woes Continue, Boeing's Unfair Labor Practice Charge and Italy's Potential Expansion of its DST

Minimum Competence

This Day in Legal History: Anita Hill Testifies in Clarence Thomas Confirmation Hearing

On October 11, 1991, law professor Anita Hill testified before the U.S. Senate Judiciary Committee during the confirmation hearings for Supreme Court nominee Clarence Thomas. Hill, who had worked under Thomas at the Department of Education and the Equal Employment Opportunity Commission (EEOC), accused him of harassment. Her testimony detailed allegations of inappropriate behavior by Thomas, igniting a national conversation about sexual harassment in the workplace.

The hearings were televised and widely watched, drawing public attention to issues of power dynamics and gender in professional settings. Hill’s testimony was met with intense scrutiny, and she was questioned by the all-male committee, led by Senator Joe Biden. Despite the controversy, the Senate ultimately confirmed Thomas to the Supreme Court by a narrow vote of 52-48.

Hill’s courage to speak publicly about her experiences had a profound and lasting impact. It helped raise awareness of sexual harassment and workplace rights, influencing the way such cases were viewed and addressed in the years to come. Her testimony is often seen as a pivotal moment in the evolution of the #MeToo movement, decades before it formally emerged.

Donald Trump’s legal troubles are far from over, with seven significant cases involving him still in the lower courts. These include two federal criminal cases, two state-level criminal prosecutions, and three civil lawsuits. The federal criminal charges, pursued by Special Counsel Jack Smith, focus on Trump’s attempts to overturn the 2020 election and his retention of classified documents. If Trump regains the presidency, he may try to pardon himself or have the Justice Department drop these cases. However, state criminal charges, such as his conviction in New York over hush money payments and the Georgia election interference case, are beyond the reach of a presidential pardon.

Civil cases against Trump include a New York fraud judgment related to his business practices and two defamation lawsuits from writer E. Jean Carroll. If Trump loses the 2024 election, these cases are likely to proceed and could eventually reach the Supreme Court. The Court has already ruled that former presidents have immunity from prosecution for actions taken as part of their official duties. The outcome of these cases, particularly any involving the Court, may depend heavily on the results of the November election. If Trump wins, the state cases will at least ostensibly remain–but it is likely that his administration would move to end some or all of the federal cases against him.

Election may decide if Trump's legal woes reach US Supreme Court or wither | Reuters

On October 10, 2024, Boeing filed an unfair labor practice charge with the National Labor Relations Board against the International Association of Machinists and Aerospace Workers, the union representing around 33,000 striking workers on the U.S. West Coast. The strike, which has lasted four weeks, involves workers at Boeing's factories, including its facility in Renton, Washington.

Boeing accused the union of failing to negotiate in good faith, alleging a pattern of bad faith bargaining and spreading misinformation to union members about the status of negotiations. This comes amid an ongoing labor dispute, with Boeing workers demanding better terms, while the company attempts to resolve the strike and resume production. The outcome of the charge could influence future labor negotiations between Boeing and the union.

Boeing files unfair labor practice charge against striking union | Reuters

Italy is considering expanding its digital services tax (DST) in the 2025 budget, which could reignite trade tensions with the United States. The DST, originally introduced in 2019, imposes a 3% tax on revenue from digital transactions by large tech companies like Google, Meta, and Amazon, many of which are American. The tax currently generates around €400 million annually, but Italian policymakers are exploring ways to increase revenue by raising the tax rate or lowering the revenue thresholds for companies subject to the tax.

The U.S. has consistently opposed unilateral DSTs, viewing them as unfairly targeting American companies, and previously threatened tariffs in response to similar taxes in Europe. Although a prior agreement prevented such retaliation, Italy’s new DST expansion could bring this issue back to the forefront. If the U.S. imposes tariffs, it could harm key Italian industries like manufacturing and agriculture, potentially straining diplomatic relations and weakening Italy’s influence in international tax reform discussions.

Italy's move reflects frustrations over stalled global tax reforms under the OECD’s Pillar One framework. While expanding the DST might provide short-term fiscal relief as Italy faces rising debt and inflation, it risks further damaging trade and diplomatic relations with the U.S.

Italy’s Digital Tax Gambit—Will US Trade Retaliation Follow?

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