March 2010

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The Court’s ruling today was in Padilla v. Kentucky, here.  Padilla is a 40 year permanent resident of the U.S. who honorably served in the Vietnam War. He pled guilty to transporting a large amount of marijuana. Padilla’s attorney told him before the guilty plea that he did not have to worry about his immigration status because he had been in the U.S. for such a long period of time.

The Court ruled that a lawyer who fails to inform his client that the consequence of a guilty plea is automatic deportation is incompetent under Strickland v. Washington. The case was sent back to Kentucky to determine whether Padilla is entitled to relief under Strickland’s prejudice prong.

Concurrence by Alito, who thinks that counsel is only incompetent when he affirmatively misinforms the client about deportation consequences. 

Scalia (joined by Thomas) dissents along classic textualist/originalist grounds.

From the Majority Opinion:

We agree with Padilla that constitutionally competent counsel would have advised him that his conviction for drug distribution made him subject to automatic deportation. Whether he is entitled to relief depends on whether he has been prejudiced, a matter that we do not address.
 
***
 
Immigration law can be complex, and it is a legal specialty of its own. Some members of the bar who represent clients facing criminal charges, in either state or federal court or both, may not be well versed in it. There will, therefore, undoubtedly be numerous situations in which the deportation consequences of a particular plea are unclear or uncertain. The duty of the private practitioner in such cases is more limited. When the law is not succinct and straightforward…a criminal defense attorney need do no more than advise a noncitizen client that pending criminal charges may carry a risk of adverse immigration consequences. But when the deportation consequence is truly clear, as it was in this case, the duty to give correct advice is equally clear.
 
From the Dissent: 
 
In the best of all possible worlds, criminal defendants contemplating a guilty plea ought to be advised of all serious collateral consequences of conviction, and surely ought not to be misadvised. The Constitution, however, is not an all-purpose tool for judicial construction of a perfect world; and when we ignore its text in order to make it that, we often find ourselves swinging a sledge where a tack hammer is needed. 
 
The Sixth Amendment guarantees the accused a lawyer”for his defense” against a “criminal prosecutio[n]“—not for sound advice about the collateral consequences of conviction.

Christopher Matthews over at Main Justice has written this excellent piece discussing the Daimler FCPA criminal charges, deferred prosecution agreements, and guilty pleas. All of the bribed officials in the Daimler case were employees of Chinese government-owned companies. According to the article, no judicial ruling has ever confirmed DOJ’s expansive view that employees of state-owned companies can constitute foreign officials under FCPA.

Vanderbilt Law Review hosts an excellent En Banc Roundtable here on the Enron-related case of Skilling v. United States, currently before the Supreme Court. Articles on the historical evolution of honest services fraud by Ellen Podgor and the unconstitutional vagueness of the honest services statute by Julie O’Sullivan are particularly outstanding.

Yesterday’s Washington Post reports here on the withdrawal of President Obama’s second nominee to head the Transportation Security Administration. Retired U.S. Army Major General Robert A. Harding withdrew his nomination after Senators raised questions about his contracting firm’s $1.8 million over-billing of the government. The Post article also reveals that Harding’s firm won a set-aside contract valued at almost $100 million dollars. The set-aside was for firms owned by service disabled veterans. Harding’s service related disability is purportedly sleep-apnea. The withdrawal caught the Obama Administration by surprise. No word on whether an investigation of Harding is in the offing. The previous nominee, Errol Southers, withdrew his nomination in January after providing misleading information to Congress about an incident in which he improperly accessed official information.

In a partial victory for the criminal defendants in the R. Allen Stanford case, the Fifth Circuit today upheld but modified Judge Hittner’s preliminary injunction ordering D&O carriers to pay coverage costs. The carriers must pay defense costs unless and until a separate judicial proceeding determines that the policy’s money laundering exclusion applies. The carriers had sought to make that determination unilaterally. The opinion can be found here. The case was remanded for assignment to another judge, since Judge Hittner will preside over the criminal trial and it would be awkward for him to have to assess the strength of the Government’s case in making a coverage determination. The carriers will be able to introduce extrinsic evidence of fraud in the coverage action.

Today’s Washington Post has a good story here by Robert Barnes on Monday’s argument in U.S. v. Skilling, the last of three honest services fraud cases heard at the Supreme Court this term.  Skilling involves former Enron CEO Jeffrey Skilling’s appeal of his conviction in the main Enron trial. Other issues in the appeal include the trial court’s refusal to change the venue as well as its rapid selection of a jury. The Court apparently continues to be skeptical of the constitutionality of the honest services fraud statute.  Professor Ellen Podgor  has an excellent commentary on the Skilling arguments, here, over at the White Collar Crime Prof Blog.