[MUSIC PLAYING] JEFF HABENICHT: Good
evening, everyone. Good evening. On behalf of the
Board of Student Advisers and Dean Minow, I
would like to welcome all of you here. Welcome to the 102nd
Ames Final Round. Before we begin, I would like
to ask a couple of logistics. First, please
remember that there's going to be no photography
in here during the event. We also ask that you please
remain seated during arguments. Please turn off all
of your cell phones. And please hold your
applause until both sides are done arguing. And as a reminder,
there will be a rebuttal after the Respondents. Tonight's arguments
represent the culmination of a long journey for
all of the participants. The journey began over a
year ago in the Q Round, followed into the spring
and the Semi-Finals, and then it's probably
been, I imagine, a majority of the participants'
fall semester this year. At each step of the
way, both of the teams have been phenomenal and worthy
exemplars of those to come. And tonight, we celebrate
all of their hard work. [APPLAUSE] The case before
the court tonight is called Go Glow,
Inc. v. Sheila Simpson, and was written by Elizabeth
Prelogar and Tejinder Singh, both of the Harvard
Law Class of 2008. They were unable
to join us, but I do want to say that they are
phenomenal and some of the best people that I've worked with. And again, want to
say thank you to them. Eight months ago,
the state of Ames passed a law entitled The Ames
Buy American Green Technologies Act. This law prohibits
government entities in Ames from purchasing green
technologies that are not manufactured by
American companies using American-made materials. The current dispute arose
when the University of Ames tried to install solar
panels across this campus. Originally, the
University of Ames contracted with a petitioner,
Go Glow to install those panels. However, the University
later discovered that Go Glow was owned
by a Chinese company and used foreign-made
parts in violations of the Ames Buy Green Act. Subsequently, the
University terminated the contract and Go Glow
brought the current legal action against the respondent,
Sheila Simpson, who is the Vice President for
Capital Planning and Facilities at the University of Ames. This case revolves
around the question of whether or not a state
can pass a law preventing government entities from
purchasing items not made in America. In particular, there
are two issues. First, whether the Ames Buy
American Green Technologies Act is invalid as an intrusion
on the federal foreign affairs power. And second, whether the same
act is invalid under the Dormant Foreign Commerce Clause. Petitioner Go Glow is
represented by the William J. Stuntz Memorial Team, consisting
of Ryan Doerfler, Cormac Early, Conor Mulroe, Josh Segal,
Vivek Suri and Allison Trzop. Vivek Suri and
Cormac Early will be presenting the oral arguments
on behalf of their team. This is how the team
describes their name. Bill Stunz was a professor
here at Harvard Law School. He joined our faculty
in 2000 and became the Henry J. Friendly
Professor of Law in 2006. In March 2011, aged
52, he died of cancer. Professor Stuntz's scholarship
explored the causes of the many pathologies
of criminal justice in the United States-- erroneous convictions,
harsh sentencing, prison overcrowding, racial
disparities in incarceration, and more. But Professor Stuntz brought
more than a sharp critical eye to the criminal justice system. His scholarship combined
empathy with erudition. A devout evangelical
Christian, Professor Stuntz counted mercy among
the priorities that the criminal justice
system often ought to have but did not. Our team strives
to honor his memory and the thoughtful,
compassionate life he lived. Sheila Simpson, the respondent,
is represented by the Gordon Hirabayashi Memorial Team,
consisting of Yaira Duden, Emma Freeman, Benjamin Jackson,
Michael Lieberman, William Milliken, and Michael Springer. Emma Freeman and
Michael Lieberman will be presenting
the oral arguments on behalf of this team. The team describes
their name as follows. Gordon Hirabayashi
was a civil rights icon who stood up
for the Constitution and the rule of law. Subject to a Japanese exclusion
order during World War II, Hirabayashi purposefully
violated the decree in order to challenge
its constitutionality. He ultimately appealed
his case all the way to the Supreme Court. Although the court ruled
unanimously against him, Hirabayashi's bravery
inspires those who believe that fundamental
civil liberties should not be abridged on the basis
of racial prejudice. In 1987, the Ninth Circuit
overturned his conviction due to newly discovered evidence
proving that the government had known that there was no military
reason for the exclusion order but had withheld that knowledge
from the Supreme Court. Gordon Hirabayashi passed
away on January 2, 2012. Our team honors his
memory and the courage he possessed in fighting for
justice, no matter how lengthy the struggle or
how high the cost. Tonight, the Honorable
David Sorter, Associate Justice of the
United States Supreme Court, will preside as Chief Justice
of this final round argument. Joining him will be the
honorable Reena Raggi, who is currently serving on the
United States Court of Appeals for the Second Circuit
and the honorable Mark Wolf who is currently the
Chief Judge of the District of Massachusetts. Best of luck to both
the teams, and we hope you enjoy the evening. [APPLAUSE] BAILIFF: All rise. The Honorable, the Chief Justice
and the Associate Justices of the Supreme Court
of the United States. Oyez, oyez, oyez! All persons having business
before the Honorable, the Supreme Court of
the United States, are admonished to draw near
and give their attention, for the Court is now sitting. God save the United States
and this Honorable Court. DAVID SOUTER: I
guess it's up to me. Please be seated. [LAUGHTER] We will hear argument now in
case number 12-152, Go Glow versus Sheila Simpson. Before the arguments
begin, I would like to hear from
counsel on each side just about the
disposition of their time. Counsel for the petitioner? VIVEK SURI: Mr. Chief Justice,
and may please the Court. We will each be taking 15
and a half minutes of time, and we will be reserving
four minutes for rebuttal. DAVID SOUTER: 15 and a half? VIVEK SURI: That's right. Mr. Chief Justice, the Ames
Buy American Act is invalid-- DAVID SOUTER: Excuse me. I'd like to just hear about time
disposition from your friends on the other side
before we begin. EMMA FREEMAN: Mr.
Chief Justice, we'll be splitting our time
evenly, 17 and a half minutes between me and my colleague. DAVID SOUTER: OK. Counsel? VIVEK SURI: Mr. Chief Justice,
the Ames Buy American Act is invalid because it
intrudes into the field of international relations. The principal reason
for that conclusion is that the state
has taken a position on a question of foreign
policy with no serious claim to be addressing any
local responsibility. The act's impermissible
objective, changing the nation's
economic relationship with the rest of the world
from one of interdependence to one of independence, is
reflected by the act's text, is confirmed by the
statements of its sponsors, and its put beyond all doubt by
the mechanics of its operation. If the federal exclusivity in
foreign affairs means anything, it must mean the
invalidation of this law. Now Respondent denies that
the federal foreign affairs power is exclusive. So on Respondent's
view, states are free to initiate hostilities
that don't amount to war, to set up an
international spy network, and to establish
foreign embassies. This is an astonishing
proposition that this Court's precedents
have repeatedly rejected. REENA RAGGI: Well,
they're willing to see that power limited by preemption
of the federal government whenever it chooses to exercise
its superior authority. Why isn't that adequate? VIVEK SURI: They are
indeed willing to do so, but just because Congress
can step in and enforce a constitutional
guarantee doesn't follow that this Court shouldn't
enforce that guarantee as well. There are three
reasons that's so. REENA RAGGI: Well, the
guarantee you're talking about is Congress's power to
exercise, to involve foreign affairs, right? VIVEK SURI: I would phrase
it as the states' disability to intervene in foreign affairs. REENA RAGGI: And where
does the Constitution refer to the states'
disability to intervene? VIVEK SURI: It's not
explicit in the text, just as the anti-commandeering
rule, or the coercion doctrine, or the state sovereign
immunity are not explicit in the Constitution. All of these are
structural guarantees. Now this structural
guarantee doesn't just protect the interests of
the federal government. There are three other actors
whose interests it protects. It protects the states,
it protects the president, and it protects the voters. So let's start with the states. Other states in the Union
have an interest in Ames not inviting retaliation
against the whole country. If a state intervenes in the
field of foreign affairs, then those actions
will have repercussions that the entire
nation will feel. And states should not
be allowed to impose those risks on sister states
until Congress has consented. Second, let's talk
about the voters. Voters have an
interest in holding the government
accountable, and they can't do that if they don't know
which government is producing these foreign policy effects. Now here if states,
in the aggregate, end up producing
foreign policy effects, then voters across the
country won't necessarily be able to hold those
states accountable because they won't live there. This Court has said in its
anti-commandeering decisions and also in NFIB
against Sebelius that protecting
accountability is a function of constitutional structure. REENA RAGGI: So is
what you're urging us to conclude that there are
no limits on a state's ability to intrude itself
into foreign affairs unless and until Congress acts? VIVEK SURI: The
precise doctrinal test you use to implement the state's
disability in foreign affairs is a subject of
reasonable dispute. Now what we've proposed is
that if a state has no claim to be addressing any
local responsibility, if the sole purpose of its law
is foreign, is international, then that law must
fall because there is no conflict between local
values and foreign values, in that context. DAVID SOUTER: Let me ask you
a question, which in one sense goes beyond, I think, at least
the obviously record material. And it's a question
that you may not have an immediate
answer for, and feel free to defer your answer
to rebuttal if you wish to. But I think it goes to sort of
a fundamental difficulty, which I will confess that I have
with your position here. We don't have in the record
the certiorari material beyond the grant of
cert, but I think we can assume that we
took this case, made a discretionary judgment
to take the case, because there are at this point,
as I understand, 20 state Buy American laws out there. And it seemed to
the Court that that was enough of a
critical mass that there should be a comprehensive review
of this growing phenomenon. The remarkable thing
about the case, however, as it
comes to us now, is that the political entity
whose power is being protected, either by the Foreign Affairs
Doctrine or the Foreign Commerce Clause, the United
States of America, is not here. There is no amicus
brief, there is no representation on the
part of the State Department. And my question is, when we
are asked to make doctrine on an issue as fundamental
as this and affected entity is totally absent, wouldn't
the better view on our part be simply to dismiss
the case because for want of the
guidance that the United States might be able to give? This is a judgmental question. And so my question to you is,
what-- in existing doctrine or in any specific argument
that you're prepared to make, what is the best
argument for continuing in effect to take this case
and deal with it on the merits? And as I said, if you wish
to defer that to rebuttal, you may. VIVEK SURI: I'll
answer right now. The best reason
for this Court not to take the views of the
United States into account is that even if the
United States weighed in on Respondent's side,
we should still prevail. That's exactly what happened
in Zschernig, where the State Department filed a
brief saying this law doesn't pose any foreign
relations problems at all. The Court still concluded,
independently, that it did. So silence by the United
States is at least better than weighing in on their side. So in that sense, it doesn't
matter that the United States hasn't participated. DAVID SOUTER: That
may have been-- Zschernig may have been
rather an adventurous attitude on the part of
the Supreme Court. The opinion was
certainly written by a justice who
was no shrinking violet when it came to the
exercise of judicial power. And maybe that kind of audacity
is not the best course for us. If we decide that audacity
is not the best course here, is there a doctrinal or other
argument saying that we should in fact charge ahead? VIVEK SURI: Let me
answer that in two ways. First of all, audacious
or not, Zschernig was relied on by this Court, in
an opinion you wrote in 2003. And secondly-- DAVID SOUTER: Not for
that proposition, however. VIVEK SURI: And secondly, we-- [LAUGHTER] --we don't have to rely
solely on Zschernig. We can rely more generally on
the principle well-established in this Court's cases where
the federal foreign affairs power is exclusive. MARK WOLF: Well, actually I
would like to pick up on that. On page 11 of the
respondent's brief, they say that your assertion
that the states may not intrude into the realm of
foreign affairs because of the federal government's
exclusive responsibility relies on a series of
cases other than Zschernig, in which there was either a
statute, an executive compact, or a treaty-- in other words,
some manifestation from the political branches. Now I've read those cases. That appears to be
factually accurate. Do you dispute that
characterization of those cases? VIVEK SURI: Two
responses to that. First of all, that's not
accurate with respect to Sabbatino and Holmes
against Jennison. Second, even if it is accurate
with respect to the other cases they mentioned-- the Chinese
Exclusion Case and the Hines against Davidowitz and so on-- the Court still did say
that the foreign affairs powers exclusive. That's not mere dictum. That was part of the
court's reasoning. The Court said because
of the exclusivity of the foreign affairs
power, the degree of conflict necessary between
federal and state law is lower. In any event, even
if it were dictum, it's not some obscure
dictum in a case that's buried and forgotten
in the United States Reports. It's dictum that's been
repeated over and over in this Court's jurisprudence. MARK WOLF: But Zschernig,
as far as I can tell, is the primary case and
the one case in which there is no statute or treaty or
other manifestation of intent from the executive branch. And I have a question related to
Justice Souter's question as to whether Zschernig
should really be afforded respect under the
doctrine of stare decisis or not. It was decided by
Justice Douglas on constitutional grounds. There is, to me, a compelling
dissent from Justice Harlan. And as Justice Ginsburg said
in one of her recent dissents, it's hardly ever really been
relied upon by anybody else. So if we're thrown
back on Zschernig, a decision of this Court,
isn't it a fine candidate, under Brandeis's view
of stare decisis, to being corrected now by us. VIVEK SURI: No, it's not because
it's not the only case that states that proposition. You mentioned Justice Harlan. Justice Harlan wrote this
Court's opinion in Sabbatino, where you invalidated a
state law, even though there was no conflict between the
state policy and the federal, and any particular federal
statute, federal treaty, or federal agreement. So Zschernig is
not the sole case. But even sticking just
to Zschernig, the fact that this Court
relied on that case quite substantially
just five years ago-- excuse me, nine years ago
shows that this Court certainly doesn't think that
it's outdated. DAVID SOUTER: In which decision? VIVEK SURI: Garamendi. DAVID SOUTER: But remember that
in Garamendi the case came up in which there
was in fact action by the executive branch in the
form of executive agreements. In this case, we have no action
by the executive on the one doctrine, we have no action by
Congress on the other doctrine, and we have not so much as a
whimper even as to their views in this Court. So this is not
another Garamendi. VIVEK SURI: All right. Let me deal with
Garamendi first and then talk more broadly
about why the structure and purposes of the Constitution
would lead to the same result. So in footnote 11
of Garamendi, you wrote that there are two types
of foreign affairs preemption, one in which there
is a conflict not necessarily with a specific
statute but with federal policy generally. And that type of preemption
might be appropriate when a state is addressing
some local responsibility. But then you also wrote that if
a state is not addressing any local responsibility--
and it is not here-- then Zschernig style
field-style preemption might be more appropriate. Now moving more broadly to why
you shouldn't just leave it to Congress to act here. Congress can act either way. If Congress wanted to validate
state Buy American laws, it could just consent to
them, and we wouldn't be here. So you're essentially
setting a default rule, and you have to ask
yourself, which side do you want to put the weight
of legislative inertia on? And I think it's more
reasonable to put it on the side where states won't be allowed
to impose risks on other states, to infringe on the field
of foreign policy, which is usually reserved for
the federal government, in a way that'll make them
less accountable to the voters until Congress-- DAVID SOUTER: If I-- I think you were
first off the mark. REENA RAGGI: Mr.
Suri, I want to be certain I understand
why you think we need to go into this area at all. Is there any way that we would
reject your Dormant Commerce Clause argument in
this case and yet be persuaded by your Dormant
Foreign Affairs argument? VIVEK SURI: I suppose that is
possible, although we think both arguments are persuasive. No, you don't have to-- REENA RAGGI: No, no. But I'm trying to figure out
what it is about the Foreign Affairs Doctrine, in particular,
that we need to pay attention to in this case that goes beyond
anything that the Commerce Clause gives you. VIVEK SURI: Now under
the Commerce Clause, you might decide that the
state's potential reliance on the market participant
exception might be relevant. But here that isn't
relevant because the state doesn't have any
viable domestic purpose that it can peg its hat on. So no matter what you rule
about the market participant exception in a few
moments, the law is still invalid because
it has no domestic purpose. REENA RAGGI: And you don't think
that the market participant doctrine, if we were to
still find it persuasive, would have a role to play in the
foreign affairs area as well? VIVEK SURI: No, I don't
think you would because this is a context in which whether
a state acts as a market participant or
not, either way, it can cause harm to
the entire nation by inviting retaliation
against the United States. And this Court has said that
just because the Commerce Clause contains a market
participant exception, other clauses don't
necessarily do so as well. REENA RAGGI: Do you think
the Foreign Affairs Doctrine that you're urging goes
so far as to preclude a state from sending a trade
mission to another country and urging it to buy the
products of, you know, Florida oranges or Idaho
potatoes or anything like that? VIVEK SURI: Florida and
Idaho could, perhaps, pass those particular
laws because those would be serving local
interests, namely the economy of Florida or Idaho. But I don't think states
could send ambassadors abroad to promote trade with the
United States as a whole because that's no business
of any particular state. DAVID SOUTER: Do you believe
that a federal Buy American Act is unconstitutional? VIVEK SURI: No, we do not. DAVID SOUTER: Why
is that serving a legitimate public purpose
when the Ames Act is not? VIVEK SURI: Because
different purposes are legitimate for
the federal government and for the state government. And the best case for that is
Nyquist against Mauclet which held that encouraging
naturalization was not a legitimate purpose
for the state of New York, even though, obviously, it
is legitimate purpose for-- DAVID SOUTER: Well, I-- you know, I'll
grant your premise. But what in fact are
the facts in this case? What is the national
interest that is served as distinct
from the state interest, which is absent? VIVEK SURI: The national
interest-- which, of course, must be balanced against
the risk of retaliation-- is an interest in promoting the
economy of the United States and in protecting American jobs. DAVID SOUTER: Why
can't Ames do that? VIVEK SURI: Because Ames
isn't protecting itself. It's protecting the
nation as a whole, and that is not a traditional,
local responsibility. MARK WOLF: The-- you seem
to argue in your brief that article 1, section 8-- when
it says Congress has the power to regulate foreign commerce-- gives it the exclusive power. But I'm not sure how
that's reconcilable with the 10th
Amendment that says all powers not provided
to the national government are retained by the state. Certainly, it appears to me,
that the Constitution was intended to diminish the
authority of the states, but I don't see anything
of the Constitution that expresses the intention to
prohibit the states from doing things that have some impact
on international affairs as well as perhaps on national
and local affairs, including discouraging global
warming, for example. VIVEK SURI: May I answer? I'm over time. DAVID SOUTER: You may. VIVEK SURI: I have
two answers to that. The first is the
10th Amendment says that all powers not prohibited
to the several states are reserved. It doesn't say
expressly prohibited, which is what the Articles
of Confederation did. And we're arguing for
an implicit prohibition. Secondly, you said in the
term limits decision in 1994 that a state can only
reserve those powers that it had to begin with. And then in Curtiss-Wright
you said, states never had the power to
affect foreign affairs or intervene in foreign
affairs in the first place. So when you put those
two decisions together, the 10th Amendment
doesn't even come into play in the first place. Thank you. DAVID SOUTER: Thank you. Counsel. CORMAC EARLY: Mr. Chief Justice,
and may please the Court. The Commerce Clause
forbids the states from imposing discriminatory
burdens and regulations on commerce, whether with other
states or with other nations. But that is precisely what the
Ames Buy American Act does. It turns away foreign
green technologies solely because they are
foreign, and it closes markets even to American
green technologies if they contain
foreign raw materials. Now the state claims
that because it is acting as a
market participant this discrimination is excused. But that argument
does not salvage this law for two reasons. First of all, this
Court has never extended the market
participant exception to international commerce
and should not do so now. DAVID SOUTER: Well,
how do we refuse to do it with coherence
to the text of the statute of the provision? CORMAC EARLY: This
Court has repeatedly recognized-- in cases, like
Japan Line, Barclays Bank, and Nordair-- that
although textually hooked to the same power to
regulate commerce, the international commerce power
and the domestic commerce power are distinct And that, in
particular, when it comes to state regulations of
international commerce, they should be subject
to higher scrutiny. And that's because
there's a greater risk to the nation as
a whole, and there's a lower state interest. And so if I could turn
to the greater risk to the nation as
a whole, there's a greater risk for two reasons. States actions that discriminate
against international commerce are more likely to
invite retaliation than state actions
that discriminate against both international
and other domestic commerce. DAVID SOUTER:
Well, let me let me ask you a question, maybe
short of the retaliation that you have in mind. If your argument is
sound, let's assume there is no Buy American
statute in Ames. But when Ames comes to
make its decision as to what green technology
it's going to buy, it engages in exactly
the discrimination that is going on now. No foreign green technology. Does that give the let's
say-- or I'll make it an easier question. No Chinese green technology. Is that action, on the
part of Ames, a violation of the Constitution? CORMAC EARLY: If
that action rose to the level of being
a consistent state policy and practice,
it would, Your Honor. DAVID SOUTER: No it's a one
time buying opportunity. Ames is building, whatever
it is here, a gymnasium. And Ames simply says, we're not
going to buy the Chinese stuff. Is that a constitutional
violation? Would it give China
a bivens action? CORMAC EARLY: We don't
believe it would, your Honor. It requires something
on the level of a statute or consistent
state practice or policy. REENA RAGGI: But
the Foreign Commerce Clause, the Dormant provision
of the Foreign Commerce Clause would be violated by
such a contractual term? Why couldn't they? Why couldn't they sue? CORMAC EARLY: Well, they'd need
a cause of action, Your Honor. And conceivably, that could
arise under section 1983. The difficulty there is
that when it comes down to an individual discretion. So for example, if it turns out
that Sheila Simpson is simply bigoted against
Chinese companies and refuses to buy their
products on that basis, and we could convincingly
prove that, then conceivably we would
have a cause of action. Fortunately, we
don't need to get into the difficulties
of that nature here because we've got a statute
that on its face discriminates against foreign commerce. REENA RAGGI: Why isn't this
akin to White v. Massachusetts Council that instead of wanting
employees to be residents, the materials have
to be residents? Why isn't it like that
under the Commerce Clause? CORMAC EARLY: A couple
of reasons, Your Honor. First of all, White,
even on its own terms, was a regulation of
domestic commerce, and so all of the
arguments about why international commerce is
different would still apply. But even if we accept-- REENA RAGGI: That's
it's broader. That it's broader,
and somehow it shouldn't be looked at as
narrowly as you're saying we look at the Interstate
Commerce Clause? CORMAC EARLY: That's
correct, Your Honor, because there the state
interest is substantially lower because the state doesn't
have an interest in protecting the United States as a whole. It has an interest in
protecting its own citizens. And so when it discriminates
in favor of its own citizens, that's one of the justifications
that this Court has recognized for the market
participant exception that would be absent in that case. MARK WOLF: I would like
to clarify whether I understand your position. Is it your position that the
market participant exception is appropriate with regard
to interstate commerce but should not be applied with
regard to foreign commerce? CORMAC EARLY: Our position--
we don't take a position on whether or not it's appropriate
to interstate commerce. As you may have noticed
from our briefs, we have several
problems with it. But that doesn't
necessarily mean, we think it should be overruled. There could be
reliance interest, interest on other stare
decisis arguments. MARK WOLF: Well, this is part
of what I want to get at. I mean first you characterize
the market participant doctrine as badly
reasoned and unworkable and suggest that it
ought to be reversed. You're not relying
on stare decisis with regard to market
exception while relying on it, in my view, heavily, too heavily
with regard to Zschernig, or however you pronounce it. That's one, and it's
something that I think we need to
decide whether we feel the jurisprudence should
be consistent in this area or whether there's a
justifiable inconsistency. But I have trouble
with the following. Let's say the statue
was written to say that solar panels have to be
produced exclusively in Ames. That would-- in
that circumstance, arguably Ames would be
a market participant for the purposes of
interstate commerce but would be equally
excluding the Chinese. And if you took
it a step further, if virtually all of the solar
panels in the world that were any good were
made in Ames or China, well, facially it might look
like a domestic prohibition. Practically, it
would be permissible if we maintain the market
participant distinction. So how can we logically
and reasonably not extend market participation
to foreign commerce when, in this global
economy, the distinction between interstate and
foreign is often illusory? CORMAC EARLY: Well I think
the premise of your question, Your Honor, which we
dispute is that the effect on foreign nations of a Buy
Ames law and a Buy American law would be the same. And we don't think that's
true for two reasons. First, economically, it
can be substantially worse for foreign competitors
to face a Buy American law than a Buy Ames law. And that's because
under a Buy Ames law, both the Chinese
solar panel manufacturer and its American counterparts
who are not based in Ames, are equally shut
out of the market and are equally disadvantaged. But under a Buy American law,
those American counterparts have greater opportunity
to have uncontested access to the American market. That can give them economies
of scope and of scale, which can lock in the structural
advantages for them in terms of, for example,
having larger factories, in terms of negotiating
rates with their raw material suppliers, which can allow them
to build their solar panels more cheaply. And that can give them
an insurmountable lead in competition in other markets,
such as, for example, Europe. And so purely on economic
terms this kind of law is, at least conceivably,
depending on the technology and depending on the
size of the state market and depending on the
nature of the competition in this industry, substantially
worse for foreign competition. DAVID SOUTER: But that will also
vary with the size of the state as I think has been pointed out. California may very well
be considerably larger than any foreign country
that is in the competitive manufacturing business. So would the application
of your argument vary depending on
whether we're dealing with a Buy California Act, or
Buy Ames Act, or a Rhode Island Act? CORMAC EARLY: No, Your Honor. It wouldn't. And it's worth pointing out that
Respondent's argument would. They argue that Ames is
distinct because it's the 31st largest state. This is only $145 million
of commerce involved. But we don't believe
that's an argument that this Court should accept. Because if this Court were
to accept that argument, it will be drawn into
trying to distinguish, what's a big enough state? What's a big enough market? Our argument is
that states enjoy equal footing in
the Union, that they have the same powers
as each other, and that's been the
case since the framing. And so if Ames can do this,
California can do this. And if California
can do this, so can Texas and New
York and Illinois. And collectively, they can shut
off a very great deal of trade with foreign nations. And those foreign
nations are very likely to be offended by this,
particularly when it is-- when the distinction is
on the basis of foreign or not foreign. DAVID SOUTER: Let me go back
to a point I raised earlier. The argument you are
making is basically an argument about fact. There will be a
certain significance if this is allowed. And if your fact argument
about significance is sound, why isn't the United
States in this case telling us that? CORMAC EARLY: Oh. Well, the United States has
been silent in this case, and we don't know
why, Your Honor. But it's worth pointing
out that, for example, in Sabbatino, this
Court was careful to-- part of the reasoning
in that case, that the judiciary would
respect foreign acts of state without asking for the views
of the State Department, is that diplomacy is a
delicate and ongoing process. And it's not always appropriate
to force the hand of the State Department, to ask them, how
are you doing with Canada on this particular issue? Because it might be indelicate
or inappropriate for the State Department to state,
on the record, we're having
trouble with Canada, and they're being obstructionist
on our other priorities. Because that's the
kind of dirty laundry that we don't
necessarily want to force the executive to air in public. REENA RAGGI: I want to take you
back to your suggestion to us that adopting your
argument doesn't require us to also address
the Dormant Commerce Clause in the market exception. But if we are prepared to
tolerate a market exception for the Interstate
Commerce Clause, doesn't that necessarily
mean that there won't be foreign competition either? I mean, if you favor Ames
products under the Interstate Commerce Clause, you can exclude
not only California products but also foreign products. CORMAC EARLY:
Certainly, Your Honor. REENA RAGGI: So how
do we avoid coping with whether we can
allow this market exception to exist at all if we
go down the road you're urging? CORMAC EARLY: Well, again,
stare decisis interests would be the analysis
that we would apply to the existing domestic
market participant exception. But that exception doesn't-- REENA RAGGI: But I'm
not making myself clear. As soon as you exclude
anyone other than Ames, you exclude foreign
as well as state. How would that be permissible? CORMAC EARLY: That would
be permissible, Your Honor, on an existing doctrine
because the distinction we're arguing for is when
the statute on its face distinguishes foreign
from domestic. And so for example, in Cook
against Pennsylvania in 1878, the case that announced
this doctrine, that was a state tax that
was imposed on foreign goods but not on American goods. And so when the state statute
discriminates on its face on the basis of
foreign or not foreign, that's the distinction
that we're arguing for. Certainly, we accept
that if it's Ames and Not Ames, in the Not
Ames bucket, you have other states
and foreign nations. But that distinction is actually
less likely to invite backlash. First, because of
the economic argument I was making earlier,
that it can be worse for foreign competition to face
a Buy American law rather than a Buy Ames law. But also because simply
when it comes to retaliation from foreign nations, there are
also political considerations. And when foreigners feel
they've been singled out for being foreign, that's
more likely to give rise to a potentially justifiable
inference of animus. If the state of Massachusetts
passes a Buy Massachusetts law, it's unlikely that
it's suffering from animus towards
Connecticut or Rhode Island. But if it passes a
Buy American law, it could potentially be
suffering from animus towards China or India. And those countries-- DAVID SOUTER: What if every
state passes a Buy State law? CORMAC EARLY: A Buy State law? DAVID SOUTER: Yeah. 50 states have their versions
of Buy Massachusetts law. What's the result? CORMAC EARLY: Well, under
existing market participant doctrine, Your Honor,
that would be OK. And we certainly--
if our clients were disadvantaged
by that situation, we might come back
on another case and make many of the same
arguments we made in our briefs and throw in some analysis
of reliance interest for whether or not
we should eliminate the doctrine entirely. DAVID SOUTER: Well,
let me ask you just to switch hats for a second. Let's go back to your brother's
subject of foreign affairs power. Every state passes a
Buy Domestic statute. Under the foreign
affairs power, is that beyond constitutional
possibility? CORMAC EARLY:
Potentially, Your Honor. And here we look to analysis
in cases like Garamendi, where this court mentioned that
by imposing its own sanctions-- or excuse me, in
Crosby, that by imposing its own sanctions the
state of Massachusetts had taken away the
ability of the executive to impose federal
sanctions and had thus weakened the federal
executive's hand in negotiations with foreign countries. So potentially,
depending on the nature of the kind of laws
that are passed by the states in
that hypothetical, it could be a problem under
the foreign affairs power. Under existing Dormant
Commerce Clause doctrine, it would be OK because that
would be market participation. But this law
discriminates on its face against foreign
commerce, and this Court has never extended the market
participant doctrine that far. In fact in Reeves
against Stake, this Court explicitly withheld
judgment on the question. And it did so with good reason. MARK WOLF: But isn't there
a very vivid distinction between this case and Crosby,
where Justice Souter did not rely on the broad grounds
relied upon by the First Circuit but very expressly on
the fact that Congress had given the president
authority expressly over economic sanctions
concerning Burma? And therefore, there was
implied preemption of state acts that would interfere. But in this case,
Congress and the president have enacted to,
for example, decide where to strike the
most appropriate balance between foreign
policy considerations and domestic considerations,
such as employment or environment. CORMAC EARLY: Well, two
points in that, Your Honor. First, we agree that
in cases like Crosby and other such
cases, this court has relied on statutory preemption. Respondents claim that this is
because the Court has retreated from documents, such
as Zschernig that are more constitutional in nature. We don't agree with that. We think that that's
simply an exercise of constitutional avoidance. It's more easy to decide
a statutory question. And when that's
available, it's entirely appropriate for
the Court to do so. That's not available here. But second, on the specific
question you answered, the analysis in
Crosby is the same. Because whether or not Congress
has yet given the president the authority to conduct
these negotiations, that authority still
depends on being able to bring the entire
weight of the national economy to bear in negotiations. And when states pass
those kinds of laws, they weaken the
president's hand, either actually or potentially. Thank you. DAVID SOUTER:
Thank you, Counsel. Ms. Freeman. EMMA FREEMAN: Mr. Chief Justice,
and may it please the Court. My name is Emma
Freeman, and I represent respondent, Sheila Simpson. I will be discussing the
dormant foreign affairs power, and my colleague,
Michael Lieberman, will address the Dormant
Foreign Commerce Clause. Petitioner's sweeping
interpretation of the federal government's
foreign affairs power is a solution in
search of a problem. Ames is but one
of 20 states that has enacted Buy American
statutes over the past three decades. Yet there is little
evidence to suggest that these statutes
have any harmful effect on foreign relations. Indeed, the-- REENA RAGGI: Well, we don't
have a factual record on that, do we? There was no hearing on that
or evidentiary development. EMMA FREEMAN: No, not that the
record reflects, Your Honor. But there is little to
any evidence in the record to suggest that the political
branch's view, the Ames Act, or other acts like
it as unduly interfering with their power
to set trade policy and establish foreign relations
under the Constitution. REENA RAGGI: I'm not
sure I understand your constitutional argument. Are you urging us to
construe section 10, to take the view that
if section 10 doesn't limit the state's
powers, then any section 8 powers are concurrent? EMMA FREEMAN: Not
necessarily, Your Honor. REENA RAGGI: What's the
interaction between 8 and 10? EMMA FREEMAN:
Certainly, your Honor. Our understanding of
Article 1, section 10 is that it prohibits
the states explicitly from engaging in
certain high agenda questions of foreign affairs. It's well-established, and we
concede that states may not conduct war, states may
not enter into treaties independently. These are well-established
principles. But when the federal
government has not acted in the broad field of
foreign affairs generally, states may act, under
Zschernig, in ways that do not more than indirectly
affect foreign relations. And the Ames Act has
not done so here. REENA RAGGI: So section 8 powers
can be exercised by the states unless and until the federal
government takes action? EMMA FREEMAN: Yes, Your Honor. Generally speaking. REENA RAGGI: Is that
a use it or lose it principle for the
federal government? EMMA FREEMAN: Here you
could say that, Your Honor. We believe that the
Constitution contemplates the foreign relations powers
specifically-- not every power in Article 1, section
8, but foreign affairs specifically-- to lie primarily
with the political branches because they are informationally
and institutionally superior. As an organization, they are
well aware of foreign relations questions. Lobbyists-- such as the
NFTC, which was a party this Court's case in Crosby-- bring
these high agenda questions to the attention of
the political branches, and that's-- DAVID SOUTER: Well, Counsel. Counsel, may I interrupt
you here for a second? I understood your
argument a moment ago not to be that in the
face of inaction on the part of the
political branches, the states could do anything. You referred it to the-- I forget what the test is-- not more than incidental
effect as a limitation. So you're not saying that
they can do anything, and if the national
government remains in a state of inanition, it stands. You're not saying that, are you? EMMA FREEMAN: No, Your Honor. Under the Dormant Foreign
Relations Doctrines and the Dormant Foreign Affairs
Power as it currently exist, Zschernig and its
lower court progeny suggest a two-part inquiry for
assessing the constitutionality of state statutes under the
dormant foreign affairs power. And ultimately, that boils down
to Zschernig's threshold test. States may act in ways that
touch on foreign affairs so long as they do not
more than incidentally or indirectly do so. REENA RAGGI: But that's
different from what you're urging, which is allowing
the state to act if the federal government doesn't? Are you are you
willing to cabinet to only incidental
activities by the state? EMMA FREEMAN: Yes, Your Honor. We do believe that there are
limitations on state action, but we believe
that they are most primarily realized and
most appropriately realized via the preemptive power
of the political branches, not via the implementation
of dormant doctrines by this Court. REENA RAGGI: How
is that practical? MARK WOLF: So does that-- are you-- you get it in stereo. So there was nothing
that you could point to to preempt Zschernig. Are you arguing that
Zschernig should stand? Are you arguing that
we should reverse it? EMMA FREEMAN: Your Honor,
in the first instance, we do believe this
Court would be well within its stare
decisis precedent to disavow Zschernig and
the Dormant Foreign Affairs Doctrines. They are unnecessary in light
of the political branches' preemptive power,
and moreover, they interfere with the
principles of federalism and separation of power that
animate our federal scheme. But even under the Dormant
Foreign Relations Doctrines as they currently stand, the
Ames Act is constitutional. And I'd first like to turn to
the first prong of our test. The Ames Act does not single out
a foreign country for criticism or invite politicized
inquiries into the policies or politics of other countries. MARK WOLF: Is there any case-- you've got a two-part test. They have more
parts to your test. Has your test ever been
used in that two-part form to decide any case? EMMA FREEMAN: Yes, Your Honor. In Mujica, the Court engaged
in just such an inquiry. It asked whether the statute
singled out and then proceeded to balance the state
and federal interests. But broadly, Your
Honors, our test is an articulation of
the way that lower courts have found it easiest
and simplest to implement Zschernig's holding. And we believe it
is more faithful to Zschernig and to
precedent under Zschernig than petitioner's proposed test. REENA RAGGI: Why is-- DAVID SOUTER: Now go-- I'm sorry. You've tried once before. REENA RAGGI: Why is-- what basis is there for limiting
it to criticism of one country? Why isn't it you know
criticism of the Soviet bloc in the past or
countries that all manufacture certain products
with child labor, whatever? Why should the test be
criticism of one country? EMMA FREEMAN: Two
points, Your Honor. The first from precedent,
and the second from policy. First, particularly
the Ninth Circuit has made clear that
singling out tends to refer to only one or
two countries at a time. You point to the Soviet bloc. That might likely fail
the singling out test. Countries involved
in World War II have been considered
singling out, especially in [INAUDIBLE] and
[INAUDIBLE],, a recent Ninth Circuit decision. REENA RAGGI: OK. So now we're to a group test? We've moved from single
country to groups? EMMA FREEMAN: Your Honor,
under the precedent, one or two countries has been
able to be considered singling out, as we understand it. But even if, under
your hypothetical, there was a statute that singled
out a broader bloc of countries or policies, even if it survived
the first prong of our inquiry, it would likely fail the
second because it's unlikely that the state interests
in that situation would be so strong
as to outweigh the federal government's
policy interests in the foreign affairs
arena in that situation. DAVID SOUTER: Before you
get into the strength of the interest, let me go
back to the singling out. As I understand it, the way
the doctrine stands right now, it is not that the statute
itself must single out-- though that would suffice to
fail for the first prong-- but that the statute invites
action that singles out. That's correct, isn't it. EMMA FREEMAN: Yes, Your Honor. DAVID SOUTER: Why,
then, do we not have a perfect example here
in which the statute has in fact invited exactly that? The reason that this
case is before us is that domestic political
pressure in the United States, in Ames rather, exercised
by a group of students who raised the issue are singling
out the domestic labor policy of China. Why isn't this a perfect example
of an invitation to single out? It's quite true. Tomorrow, they may be
singling out Burma. Next week, it may be Albania. I don't know. But there certainly is a
demonstrated invitation in the statute to single out. And why, therefore,
doesn't the statue fail? EMMA FREEMAN: Your
Honor, we submit that the record in
this case does not reflect that the Ames
University singled China out in its application
of the Ames Act. And I have two reasons
why that's the case. First, page 30 of
the record made clear that the only
inquiry the General Council of Ames
University engaged in was to ask whether the
materials Go Glow used were produced domestically or
were not produced domestically. China did not come into
play in the text the Act, it's not apparent in
the preamble found on page 18 of the record, and-- DAVID SOUTER: Why does
the university have to be the one that singles out? EMMA FREEMAN:
Because, Your Honor, there's an important
distinction between the reason the violation of Go Glow came to
the attention of the university and the reason the
statute was implemented. That student protests
brought the violation to the attention
of the university, it's constitutionally
insignificant. DAVID SOUTER: OK. But that-- I mean, you're
drawing a fine distinction. But the fact is, on the
record that we have, there is only one
reason to believe that in fact the statute
was invoked by Ames. And that reason was criticism
publicly of the university and of the enterprise of buying
through Go Glow based upon the domestic policy of China. Whether the university would
have originated that criticism itself doesn't seem to me to
make any difference at all. In fact, its opposition
to China and, if you will, an accession of that
opposition on the part of the university that
explains what happens here. Why isn't that enough? EMMA FREEMAN: Your
Honor, respectfully, we disagree that the
protests of the students reflect the position of the
university or the reason that the act was implemented. DAVID SOUTER: Well, you
can't disagree with the fact that the university didn't
want to take them on and say, no, you kids
are absolutely wrong. The university-- I
don't know whether you can say the university
buckled or the university suddenly realized,
as it had not before, that there was a violation
of the statute going on. But the reason for the
university's action was the criticism revealed in
the protest about Chinese labor policy. EMMA FREEMAN: Your Honor, the
reason for the implementation of the act was not meant as
a criticism of Chinese labor policy, though that was the
subject of the student protest. Instead, I return again
to page 30 of the record. The General Council's
only consideration, was not to criticize
China, was not to implement some sort of
change in Chinese labor policy, but was instead to implement
the act because Go Glow's materials were manufactured
in a place that was not the United States. That was the beginning and
the end of the inquiry. The statute does not
on its face invite any sort of singling
out a criticism that Zschernig was
concerned with. In Zschernig, there was
a substantial record of courts implementing
the Oregon probate statute in ways that criticized
other countries, in ways that targeted
other countries, and in ways that were likely
to provoke foreign controversy and provoke retaliation
by those other countries. The same is not true here. There is a substantial amount of
territory between the Ames Act, both in its text and in its
application, and the statute at issue in Zschernig. I'd like now, Your
Honors, to turn to-- MARK WOLF: I actually
have a question as to whether in
Zschernig there was that kind of evidence at all. Justice Douglas wrote in
part, "as one reads the Oregon decisions, it seems that foreign
policy attitudes, the freezing or thawing of the
Cold War, and the like are the real desiderata. They, of course, are matters
for the federal government, not for local probate courts. I didn't discern from
reading this decision-- that's not as long as
decisions these days-- that there was any vast record. It just seemed to
me, perhaps, that was a pronouncement from
particular views and possibly general principles, but
that the factual record wouldn't distinguish
that case from this one. EMMA FREEMAN: Respectfully,
Your Honor, we disagree. And just several pages later in
that same opinion in Zschernig the Court did focus on the
fact that other probate courts implementing the same
statute had repeatedly done so in ways that
were violative of what would come to be known as
the Zschernig principle. They criticized. They made statements about
whether certain governments were communist or whether
they were democratic. They inquired into
Marxist regimes. None of these considerations
is present here. And though quote you point
to is certainly accurate, it doesn't reflect the heart
of the decision in Zschernig. MARK WOLF: Well, none of them-- if none of them are
present, then there is a footnote with quotes
from various cases. But perhaps people-- legislators
are more skillful now and less candid. Or indeed, we don't know whether
this is the very first case under the Ames statute, do we? And perhaps, there hasn't
been the opportunity for the same repeated criticism. But it does seem
fairly pointed when China has such a substantial
portion of solar panels, in any event, that
this forseeably would have a dramatic material effect
on sales from China where-- we could take judicial notice-- there's well-founded
and widespread concern about human rights abuses
and about unfair competition in the form of very cheap,
and in some respects, subsidized labor
and other costs. So I could understand why you
might argue that Zschernig should be overruled. And you did say under
principles of stare decisis. Precedents are overruled. We no longer have
Plessy v. Ferguson. We no longer have
Swift v. Tyson. And those were decided on
constitutional grounds. But I'm still struggling
to find material differences between
this case and Zschernig, if we should apply it. EMMA FREEMAN: Your
Honor, I'd like, in order to answer your question, to
turn to the substantial state interests implicated by the act. And I'd like to do so to
counter Petitioner's assertion that the Ames Act in no way
furthers any traditional state prerogative. We respectfully submit that on
the record in this case that is simply not true. Page 18 of the record,
the preamble to the act, reflects three important
traditional state prerogatives that differ
this case from Zschernig. The Ames Act seeks to
environmentally protect Ames by achieving the governor's goal
of climate neutrality by 2050. It seeks quality control
over the goods used in its public works projects. And finally, it pursues
public works procurement, which this court in
[? Hines ?] v. McCall recognized to be
an area that falls within the state's
traditional and exclusive area of competence. REENA RAGGI: Can you tell
me how the act furthers the first and the second,
given that it doesn't require the purchase of the best
or the most environmentally advanced products? It requires the purchase
of American products, presumably even if
another country's product has a better
environmental impact or is of a higher quality. So I'm not sure I see how
it furthers the first two. EMMA FREEMAN:
Certainly, Your Honor. And because we're dealing
here with state legislation, we don't have on the record the
formal legislative history that might otherwise shed some light
on the legislature's thinking in terms of how the Ames
Act furthers these goals. And in situations
like that, the Court traditionally infers
possible rational bases for such legislation. And in this instance, it would
be a reasonable conclusion for this Court to draw to think
that domestic goods would help environmental protection in Ames
because it would reduce carbon emissions from transporting
green technology goods from other countries. It's also reasonable to assume
that the Ames legislature felt that domestically produced goods
would be of the highest quality and would best serve
the interests of Ames and its public works projects. DAVID SOUTER: Why? EMMA FREEMAN: Your
Honor, again, we are working with a
record that gives us very little on this question. DAVID SOUTER: Yes,
but you also have to work with the
responsibility that you had the opportunity under your
motion for summary judgment to get this kind of
material into the record, if you had an
opportunity to do it. EMMA FREEMAN: That's absolutely
true, Your Honor And there simply is less
legislative history available under
state legislation than there is for federal. But I would also draw
this Court's attention to Minnesota v.
Clover Leaf Creamery, where it declared the
principle that courts tend to prefer not to question
findings of legislative fact. And at the end of
the day, what we have here is the best judgment
of the Ames legislature as reflected in the
preamble of the act. REENA RAGGI: Why would that
be so when the question is whether this is constitutional? I understand where we might
do rational basis analysis in any of a number of contexts. But we now have the state
invoking these principles to support it's
discrimination against and-- as your adversaries put it--
intrusion into foreign affairs. Why shouldn't that
get a higher scrutiny? EMMA FREEMAN: Your
Honor, traditionally in dormant foreign
affairs cases-- and I see my time is up. May I answer? REENA RAGGI: I think so. DAVID SOUTER: Yes, yes. EMMA FREEMAN: Thank you. Traditionally, these
cases have fallen outside of the traditional
rational intermediate strict scrutiny spectrum
and have deserved their own traditional scrutiny. But here at the end
of the day, petitioner has not borne its burden under
the summary judgment standard to demonstrate that this
court should invalidate the act based only on
its purported purpose to affect foreign affairs. Thank you, your Honors. DAVID SOUTER:
Thank you, Counsel. Mr. Lieberman. MICHAEL LIEBERMAN:
Mr. Chief Justice, and may it please the Court. The market participant
exception is well established in the Dormant
Commerce Clause area, and so the fundamental
question before this Court is whether it should also
apply in the foreign commerce context. We submit that it should
apply, and every lower court to address the question has
held that it does apply. This consensus among
the lower courts is unsurprising because the
exact same justifications for the market participant
exception that this Court has enumerated in the
interstate context apply with full force in the
foreign commerce context. In both contexts,
federal interference with a state's decisions about
how to spend its own money is a particularly
offensive invasion of a state sovereignty. And so this Court has
channeled the decision-- about whether a
state's law should take a backseat to federal law-- has channeled that decision
to the political branches, who are accountable to the states
and in the foreign policy area, have a wider range of
information or resources available to determine how that
balancing act should turn out. REENA RAGGI: Your
adversaries seem to at least admit
the possibility that if this were just a
contract with these terms there might not
be an issue here. It's that there's a law. And if I understand their
brief, it's a law with penalties that they say go
beyond what a market participant could impose. Do you want to tell us why
we shouldn't be concerned about that distinction? MICHAEL LIEBERMAN:
Absolutely, Your Honor. As to the penalties,
the penalties that the Ames Act imposes are
no different than a penalty that a private party could
impose in a contract. There are two
types of penalties. The first is a simple
commitment by the state itself to no longer do
business with a party that violates the Act or breaches
a contract with the city. REENA RAGGI: How would
a private party do that? I mean, this is a law
now that precludes any contractor for the
state from doing otherwise. A private party
might say, I'm not going to deal with you for seven
years, but then in two years, you know, rethink it. MICHAEL LIEBERMAN: You're
correct, Your Honor. A private party could
not reduce it to law and make it as policy,
but a private party could honor such a commitment. And it's no different than
what the state of Ames is doing here. It has simply made the
decision in advance rather than after the breach. As to the damages that
are in the Ames Act, the act imposes
liquidated damages, and the liquidated
damages are nothing other than what a private party
could also put into a contract. DAVID SOUTER:
Well, except that-- I mean, the theory of liquidated
damages in contract actions starts with the
proposition, number one, that there are damages,
and number two, that they would be
difficult, perhaps, in these circumstances
to ascertain or at least time consuming to do so, and
that the liquidated damage provision does not rise to the
level of something punitive. The trouble with
applying that concept here is that, to begin with,
there aren't any damages. We know, in fact, that
the subcontractor-- I'm sorry, that the
general contractor was able to buy his panels
for $250,000 or less than he would have had
to pay if, in fact, he had complied with the act. There is no reason to
believe that his bid was not, therefore, accordingly
favorable, and therefore, that whatever the savings was
in some measures or some degree, it was passed on to Ames. So that to begin with, there
are no damages whatsoever. And I don't see how
you can turn that into an analogy with
private liquidated damages. MICHAEL LIEBERMAN: Your
Honor, there are damages here. The damages are not economic. As you say, this actually would
have saved the state money. The damages are the
same intangible harms that motivated the Ames
legislature to pass the act in the first place. As Ms. Freeman-- DAVID SOUTER: Harms to whom? MICHAEL LIEBERMAN: Harms
to the state of Ames and to its citizens, your Honor. DAVID SOUTER: The
liquidated damages provision in private contracts
are for the benefit of the private contractor,
not third parties. You made the argument, as
I recall in your brief, that, in fact, the
ultimate damages here are to American manufacturing,
and that they are very difficult to ascertain. Liquidated damages provisions
in private contracts do not protect the
broad body politic. They simply protect the
specific contracting party who has been hurt. Isn't that the end of the
argument for an analogy here? MICHAEL LIEBERMAN: Your Honor,
in this case, the party that is contracting is
the state itself, and the citizens of the state
are who make up the state. So it's one entity. The citizens-- REENA RAGGI: But if you want
to be treated as a market participant, we have to
look at you as a contracting party, not as a policy maker. You want compensation
through these provisions for public policies,
not for the contract, and that seems to be different
from a market participant. What are we missing? MICHAEL LIEBERMAN: Your
Honor, the harms here are intangible and
difficult to calculate, but just because the harms are-- REENA RAGGI: But to whom? MICHAEL LIEBERMAN: The
harms are to the state and to the citizens
of the state. REENA RAGGI: As a contractor? MICHAEL LIEBERMAN:
When the state of Ames enters into a contract
with a private party and the private party violates
the terms of that contract, which has the Ames
Act embedded into it, then those harms are suffered
by the state and its citizens. And those harms are
damage to the environment from using lower quality
green technologies, they are damage to the
quality of goods received. REENA RAGGI: What if they're
not in lower quality? MICHAEL LIEBERMAN: The Ames
legislature made a judgment in passing the Ames
Act that domestically produced green technologies
were of a better quality than those produced-- REENA RAGGI: A
private contractor might be able to have
a preference for one item over another and
provide a specification for that provision. And when somebody didn't
provide it, then how would you decide damages? MICHAEL LIEBERMAN: If there
was not a liquidated damages provision within the contract? REENA RAGGI: Right. How would you assess damages
if you asked for product X and they substituted product Y? MICHAEL LIEBERMAN: A
court would presumably look at the relevant
factors and determine what the damages were, and those
damages would not be limited just to economic damages. The state could put--
or the private party could put forth the
types of intangible harms it has suffered. And that's simply
what's happening here. There are intangible
harms that would be suffered by
the state of Ames, and those are just put into
the contract in the form of liquidated damages. DAVID SOUTER: Aren't
we entitled to be very skeptical about a claim for-- an amorphous claim for
intangible damages, when it's based on a series
of purposes and findings that include, for
example, the statement that the object
of the statute is to give the American
manufacturers an even playing field, when, in fact,
that is precisely the thing that the act precludes? The act is overtly
discriminatory. When a legislature engages
in those kinds of virtually nonsensical statements,
shouldn't the court frankly say, OK, we're not going
to put any weight on the fines? MICHAEL LIEBERMAN: Two
points, Your Honor. The preamble of the act on page
18 lists a number of findings by the legislature,
and we believe that the ones that
serve local purposes are the ones that
should control here to show that the act does
pursue the local purposes that my colleagues claim
that does not pursue. Now to the extent that the
domestic green technology industry has helped
here, the parts of that industry that
are located in Ames will itself be helped, which
is another local interest. DAVID SOUTER: Do we know
whether there are any? MICHAEL LIEBERMAN: We do not
on this record, Your Honor. However, the state
of Ames sees itself as a leader in the green
technology field, which is in some of the
sponsor statements, so we can presume
that the state of Ames does have some of this
industry within it. MARK WOLF: It seems to me that
the questions my colleagues have been asking you,
and respectfully, to some extent the
responses, indicate that there's a fundamental difference
between a governmental entity and a private corporation,
which to me raises the question as to whether the market
participant rule that we've adopted for interstate
commerce with regard to-- say, states and municipalities-- should be applicable at all? There are certain
things in other areas-- say, the First Amendment area-- that a private actor can do. Harvard University could
have a hate speech policy, and the University
of Massachusetts, as an arm of the
government, should not. Why, given all the
difficulties that are emerging from this
colloquy, should we maintain any market participant
exception for states? MICHAEL LIEBERMAN:
Your Honor, this Court has traditionally justified the
market participant exception on three grounds-- history, federalism,
and fairness. As for history, this
court has recognized that the Commerce Clause itself
was aimed at state regulations and state taxes that
were discriminatory against other states. But this Court has
noted that there is no indication of
any constitutional plan to limit the ability
of the states to operate freely
in the free market. And so in recognition of
that principle from history, this Court has created the
market participant exception. In terms of federalism,
as I mentioned earlier, intruding on a state's
decisions about how to spend its own money,
its own resources, and the collectively owned
property of its citizens, is particularly offensive
to that state's sovereignty. And so those decisions
have been channeled to the political branches, which
are accountable to the states. And then in terms
of fairness, which I think was at the
heart of your question, we certainly agree that states
are not private businesses. But what the market participant
exception recognizes is that when states go into
the marketplace and purchase things-- purchase
goods and purchase services-- they are, in that moment, like
a private market participant. They are subject
to market forces, they have to pay minimum wage,
they're subject to OSHA health and safety regulations. MARK WOLF: They're not
subject to market forces because they're not
trying to get the best quality at the best price. They're using this policy
to serve other purposes-- promote the environment, perhaps
promote local employment. And they have resources,
with regard to sanctions, that no private
actor could impose in commercial relationship. So that, I think, is
at the heart of this. And listening to
questions and the answers causes me to wonder whether this
market participant concept is indeed unworkable, with
regard to municipalities, and ought to continue
to be viable at all. MICHAEL LIEBERMAN:
Your Honor, we believe that it is still viable. And we agree that if a state
government goes beyond what a private party could impose
in terms of sanctions, it would no longer be acting
as a market participant. And I took that
the colloquy I had with Justices Souter
and Raggi to be whether that was the case here. And our position is
that the state has not gone further than a private
market participant could, and so it is still acting
as a market participant. Now if Your Honors were to
believe that the state was acting in a way in opposing the
sanctions that a private market participant could
not, that still would not be a grounds to
strike down the Ames Act because those
sanctions are easily severable from the
rest of the act. And so because
they're severable, I'd like to turn back to
my colleague's arguments about why the market
participant exception should not apply in the foreign commerce
context, specifically if this Court will retain it in
the dormant interstate commerce context. And the bulk of the argument
was that in the foreign commerce context a state spending policy
might provoke retaliation from foreign nations. And there are two problems
with that argument. The first is that the prospect
of foreign retaliation from a state spending
policy is far less pronounced than the prospect
of foreign retaliation from a state discriminatory
regulation or tariff, and that is because the
effects are limited. A state spending policy,
like the Ames Act, only applies when
the state itself is going into the
marketplace, using its money, and making a purchase as opposed
to a regulation or a tariff, which is generally
applicable to all business activity within the state,
whether or not the state is actually a party
to that transaction. REENA RAGGI: Does
that argument require us to consider the play that the
state has in the world economy? I mean, California is the ninth
largest economy in the world. So the argument seems a
little more difficult there, and I don't see a principle
on which we would decide this case, based on the
fact that you're not as big a state as California. MICHAEL LIEBERMAN:
Your Honor, we agree that the
policy would apply the same regardless
of which state it was or the size of the
market, and that's simply because market
participation on a wide scale is still market participation. And the fact remains that
when a state-- if California has a spending policy, that
spending policy will apply only when the state
itself spends money, not when the many, many
other private businesses that do business in
California conduct their private activities. So the Ames Act, for
example, applies only when the state of
Ames spends its money. REENA RAGGI: But now
we've got 20 states that do this and more
could be on the way. At what point do
we have to consider that there are so
many states doing this that it could, in fact, have
an effect on foreign commerce as well? MICHAEL LIEBERMAN: This
Court's market participant jurisprudence has channeled that
decision, that very decision, to the political branches. It is the political branches who
can look not just at the case or controversy before it but
also at the wide range of state policies and the wide range
of federal foreign policies that might be implicated
by one of these acts. And so the market
participant exception doesn't make state policies
immune from federal oversight, not by any means. What it simply does is ask
the political branches, who are accountable to the states
and have more information, it asks the political
branches to make the decision. And that is simply
all we ask here. And the political branches here,
despite being aware of the Ames Act and being aware of state
Buy American acts in general, have not taken any action and
have not expressed any concern about our foreign policy. Now I'd like to turn
to the specific act and clarify its scope a
little bit more because, both in the briefing and
today, my colleague referred to it as an embargo or
as shutting companies out of the market entirely. And I'd like to reiterate
that the act doesn't do that. Go Glow, the company
here, is still free to do business in
Ames just as it was the day before the act was passed. The only change is that it
has one less customer now-- the state of Ames itself. It is still free to
sell its products to anyone else it pleases
in any state it pleases. And that is the key
difference between regulation and a spending policy here. And that is what the
market participant exception recognizes. And so because of
those limited effects, the concerns about foreign
retaliation are less, the concerns about
creating disuniformity with federal policy are less. And all of those
concerns don't come to bear when a state is
simply spending money. On top of that, state
spending policies are far less worrisome
because they're not coercive. They don't apply to everyone. Someone can simply opt out. Go Glow can decide,
we're not going to do business with the state. This act no longer affects us. And so for all of those
reasons, the Ames Act is not something that will cause
foreign policy concerns, will not provoke foreign
retaliation, and that is, indeed, reflected on
the record before us. The act has been in
existence for two years, and yet only one
country has issued a statement of mild
concern and seems to have moved on from that. REENA RAGGI: I want to ask
you a preemption question. It applies to both the Foreign
Affairs and the Commerce Clause argument. To the extent that 20 states
now have this legislation, it seems to me there's
a real question whether the federal
Congress could muster the votes to preempt. And to that extent, are
either of these principles-- either the Dormant
Foreign Affairs Principle or the Dormant Foreign
Commerce Clause-- really just a matter
of majority rules? Or do they occupy the
field, regardless of whether or not Congress
is prepared to preempt? MICHAEL LIEBERMAN:
Your Honor, as you say, the individuals in
Congress have interest both for the state and for
the national government. But even if many, many
states passed these laws, those Congresspeople
will be able to assess the foreign policy consequences. And even if their own home
state has a Buy American Act, or a Buy Local Act,
if the effects of that act, and the cumulative effect
of that and similar acts, were enough to jeopardize
our foreign policy, then Congress would
act to preempt it. DAVID SOUTER: Well, you
say Congress would act. And yet the part of the
premise of my sister's question is, realistically,
can Congress act? The fact is that we are
considering this case at a time in which
the possibility of congressional
action on anything is greatly diminished
from what it has been in other circumstances. And for this purpose,
it doesn't matter who-- if any one or the other
party is to blame-- it just is a fact of life. And therefore, if
you're putting weight on the capacity of
Congress to act, isn't that implicitly
an argument to us that, I guess, you,
the Court, better act? Because Congress may
very well not be able to. MICHAEL LIEBERMAN: Two points
in response, Your Honor. The first is that
there is good reason to believe that
Congress can overcome these collective action
hurdles, specifically in the foreign context
because foreign policy and foreign relations
are particularly of national concern,
and Congress-- DAVID SOUTER: You think we have
a bipartisan foreign policy right now? MICHAEL LIEBERMAN:
Not specifically. No, Your Honor. I wouldn't go that
far, certainly. But Congress has shown an
ability and willingness to respond when
something is so, so contrary to our foreign
interest and causes so much foreign harm that would-- let me finish if I may. DAVID SOUTER: Will you
please finish your answer? MICHAEL LIEBERMAN: That if
something were so serious as to warrant a
court's intervention, it would also be serious
enough to warrant Congress's intervention, and Congress is
the act that is best equipped to make that judgment. Thank you. DAVID SOUTER: Thank you. Counsel. VIVEK SURI: Mr.
Chief Justice, let's begin with a few words about
the purposes of this statute. Now my colleague
on the other side said that we don't
really know what the purposes of the statute
are because we're working with a very limited record. Well, that's a great
argument for reversing the grant of summary
judgment and having a trial on this very issue. DAVID SOUTER: How can
you make that argument? These were cross motions
to summary judgment. Each side had an opportunity
to make a record as good as each side could. VIVEK SURI: Because
this case is here because summary judgment
was granted to them so all inferences should
be drawn in our favor. But let's turn-- DAVID SOUTER: Except
that the entire record would be considered by the Court
in granting summary or denying summary judgment in
each respective case. VIVEK SURI: Sure. And then if you look
at the entire record, you'll find that
these assertions of purpose that the
state has made here don't have an empirical basis. Essentially, they're saying,
trust the state legislature because it has asserted that
American solar panels are better in quality or
friendlier to the environment. That might be appropriate if
you're applying rational basis review under the Equal
Protection Clause or substantive due process. But that's not appropriate
in a federalism case, and that follows
from your decisions in Lopez and Morrison,
where you said there must be some
empirical basis for a congressional judgment
to receive deference. DAVID SOUTER: Have
Lopez and Morrison been followed in the last 10 years? Or did the sea change
that they were thought to signal prove to be illusory? VIVEK SURI: Right. I mean, we can debate whether
this was a holding or not a holding, but the
Chief Justice did follow the Lopez and Morrison
in the recent health care decision. The point of those
decisions is there must be some empirical
basis for the claim. "We say so" is not
a sufficient basis. Now it's been hypothesized
that this statute might serve an environmental purpose because
foreign products are going to have to travel
a longer journey and therefore, will consume
more energy along the way. Well, if the state were
concerned about that, it should have
enacted a distance rule-- like no products
from more than so many miles from the state. I don't know where Ames is, but
let's suppose it's around here in Massachusetts. Ontario is closer
to here than Hawaii. But under this statute
an Ontarian solar panel is excluded, but a
Hawaiian one is included. That is not how a state
goes about protecting the environment. Finally, there's been
some dispute here about whether Zschernig
should be interpreted as prohibiting state purposes to
intervene in foreign relations. Now the Ninth Circuit has
interpreted Zschernig as we do. But set that aside. Returning to first
principles, when a state has no purpose
whatsoever except to affect foreign relations, there is no
traditional state prerogative being intruded upon. There is no local
interest being violated. There is no conflict of
constitutional values. DAVID SOUTER: Well-- REENA RAGGI: That might be
relevant to the Foreign Affairs argument, but I'm not sure
that the Commerce Clause argument when what they're doing
is spending their own money, I mean, just as a private
party would decide it's going to buy American. If it's its own money,
why can't the state? VIVEK SURI: All right. Let's turn to the
Commerce Clause. There have been two
justifications for this market participant exception. The first justification
is that a state should be able to protect the
interests of its own citizens. The second is some sort of
even-handedness between states and private traders. Neither of those rationales
is applicable here. So a state-- the
state is not acting as the guardian of its
people because it's not protecting its people. It's trying to protect the
people of the United States as a whole. So that's rational one gone. The second rationale, which is
acting like a private trader, is also out of the
picture because what the state has done here-- I mean, leave aside
all of the penalties in the seven-year bans. They have made
something illegal. That is something no
private actor could do. That's why neither of the
rationales for the market participant exception is
applicable in this case. So that's why the grant
of summary judgment should be reversed. REENA RAGGI: Well,
let me ask you about that with the penalties. They seem to suggest we
could sever the penalties, and then it would
just be a requirement. It operates on their bargainers,
not assigning a stigma to anyone. Why wouldn't that be enough? VIVEK SURI: May I answer? I'm over time. DAVID SOUTER: Yes. VIVEK SURI: So two
answers to that. First, even if you got
rid of the penalties and just left, as it were,
the mandate in place, that is something that no
private party could impose. No one could make
it illegal for you to not engage in a
particular type of activity. Secondly, the penalties
and the mandate exist as an
interlinked provision. It's not like one exists for a
purpose other than the other. So under this Court's
severability precedence, when two parts of a law are
inextricably intertwined, they stand or fall together. Thank you. DAVID SOUTER:
Thank you, Counsel. And thank you, all Counsel. It's been very helpful to us. We'll take recess. BAILIFF: All rise. [APPLAUSE] All rise. DAVID SOUTER: Please be seated. We have a difficulty in
announcing the judgments here, and the difficulty
doesn't always afflict moot court judges. But it afflicts us tonight,
and that is the risk of seeming to be too nice. That is usually not
the fault that people attribute to judges. But as you will see
in a moment, there is something facially
lopsided about the rankings that we have to announce. It is lopsided because there
is no such thing as, let's say, judgments of proportional merit. It's all or nothing on each of
the categories of the judgments that we have to render. But this was one
of those cases, one of those sets of briefs and sets
of the arguments, in which we are not being polite when we
say what is so frequently said in moot courts, and that
is that Counsel in all their performances,
written and oral, were so extraordinarily good
that we had to draw some very, very fine lines in there. We didn't spend
all night doing it. But in fact, we had very
difficult judgments to make. And as I said, we
are not engaging in some kind of
professional courtesy when we both thank and
express our admiration, for both the people on
both sides of this case. That said, let me tell you what
the judgments are, and then my colleagues and I
will expand a little bit on what we have concluded. And we will then
recess the court. With respect to
the best brief, we believe that the
respondent's brief was the better of the two. And by the way, our
format is to say best, and I guess that's proper. There were three briefs. In any case, we
think the respondent side had the better of it. The respondent's brief
sort of respected the rule that, as they say, that
God is in the details. And the details were very
good and very concrete. With respect to
the best argument, we believe that
the best argument was Ms. Freeman's argument. And once again, this was
a tough call to make. We don't, in a
courtroom, day in and day out, hear anything of the
quality that we heard here. And so it was a tough call. As you can tell from the
two that we have made, it necessarily has to
follow that the best overall was in fact the
respondent's argument. We would also like to add,
although there is no one, I think, in the
room this evening to receive personally
this commendation, we would simply like
to add that this was a case in which the
bench memorandum that was prepared for us
seemed to all of us to be extraordinarily good. And we trust that those
who did the bench memo will hear at some
point our expressions of thanks for the work
that was done there. With those specific
judgments made, let me turn first to Justice
Raggi for her comments. REENA RAGGI: Thank you. I want to speak
for a moment first about this extraordinary
competition. All of us on the
bench are invited to judge at many schools
around the country, and their moot court programs
are all wonderful, even ones that take place in New Haven. [LAUGHTER] But there's nothing like Ames. On this, I really do speak
from a wealth of experience as an Ames participant,
as a judge, and even as an Ames parent. I know that the task of that
is, how long can a parent really hold his or her breath? But what I wanted
to say about Ames is that I just don't know of
any other competition that puts contestants or competitors
through such a rigorous ordeal, none that emphasizes
brief writing as Ames does with its sequence
of three briefs. And then of course,
the glamor event here in the Ames courtroom. I mean, there's nothing
that's as electric as this. So I am just delighted to be
asked again to participate, and particularly
tonight, when I thought that the quality of the
briefs and the advocacy was so excellent. Now when the Chief Justice said
that we came to this decision with some difficulty, I will
say it was because, in part, we were not unanimous. I am the outlier. I would have thought that
the petitioner's brief had it over the respondents by a hair. Both briefs were
excellent, to the point where I could not decide on one
reading whose I would favor. But for myself, on a second
reading, I gave it to you all. And to the extent that you
look for some consolation, I share that with you. I also would have chosen you,
Mr. Suri, the best advocate. I thought there were many things
about your advocacy tonight that were really exemplary. And while I thought all
of you were terrific, I just wanted to share with you
that that was my view on this. Now, in saying that, I
also want to share with you that the Dean was
nice enough not to say that when I was an
Ames participant, I was a losing Ames participant. So the petitioners
have my heart tonight. And I want to say
that on the night I found out that the decision
did not go for my team, I was convinced my
life was over and spent days walking around bridge
convinced of that fact. If this happens,
to you rest assured there's life after
Ames, sometimes even on the federal bench. [LAUGHTER] DAVID SOUTER: Justice Wolf? MARK WOLF: I can
certainly reinforce that having my main distinction
at the Harvard Law School being one of two people,
as far as I know, who never took first year exams
and nevertheless graduated. And I don't think I made it
out of the first round of Ames during my second year when I
returned from the military. But I really had to
discipline myself. It's an honor as
well as a challenge to come off the bench to pinch
hit on an occasion like this. And I regularly say
to my law clerks, I'm not judging a moot
court competition. When I'm in court, I'm aiming
to get the legally correct decision, and I
actually don't want to be unduly influenced
or influenced by the quality of the lawyering. I want to be influenced by
the merits of the subject. And I think it took
some discipline for me, which I hope I achieved,
because I actually sort of philosophically
have more sympathy with the
respondent's view and who should be deciding. Should it be courts or
the political branches? When I read the petitioner's
brief this morning, I said, this is really good. I don't get many briefs
that are this good. And then I read the
respondent's brief, and I said, this is superb. And I tested it. For example, the
argument on page 11, getting into the facts of
the particular cases on which the petitioner was relying
and distinguishing them impressed me. And the petitioner's reply
brief made good points but did not have the
restrained dispassionate tone of the original brief. There were a number
of characterizations that rather than being
conclusory, rather than, in my view, being the
most effective form of advocacy in some respects, to me,
distracted from the merits of the argument. And that's part
of what influenced me to think overall the
respondent's brief in briefing was superior, although both
were at an extraordinarily high level. And like my
colleagues, I think I went through the
exact same evolution. I thought Mr. Suri was hit with
some very hard questions very quickly, and you didn't flinch. I thought you were
responsive to them. And Mr. Early took the baton
and did quite the same. And I'm thinking well this has
got to be very hard to beat. And by a slight margin,
it was extremely difficult for me to distinguish between
Ms. Freeman and Mr. Lieberman, the respondents were
marginally better orally, too. I think a number
of us came at you with an emphasis
on certain issues that those who drafted the
case didn't anticipate, including my interest in the
questions of stare decisis that permeated the matter. And I thought Ms Freeman had
a particularly good response on that. So my dominant
impression is I'm sure glad I got my Harvard Law School
degree and my judgeship decades ago because I don't think
I'd fare well in competition with any of you. And William Faulkner once
said that his generation would be judged by the
splendor of its failures. And you haven't got the prize
now, but to get to this point, despite that disappointment,
is a splendid failure. You stretched yourselves in the
way Faulkner was talking about. And something I regularly
say to younger people, because I've experienced
it over and over myself, that those who-- well, if you look
at the basketball, it's not since Red Auerbach's
great Boston Celtics that anybody's been able
to win five or six or nine championships in a row. The people who prevail one
year don't the next year. And there's no
question, in my mind, that every single one of you
who worked on these briefs and argued today are going
to have great success, and I hope and trust,
fulfillment, in our calling as lawyers. DAVID SOUTER: Well,
I guess I want to start on a couple
of very personal notes, and the first is that
Justice Raggi is not the only person on this bench
who lost an Ames argument. I didn't get as-- I didn't get as far as the
finals, I can assure you. But I can also assure you
that when my side did lose, unlike her, I did not think
that life's prospects were coming to an end at all. I simply said, I've got
to find better judges. [LAUGHTER] I won't say that's the
reason I went on the bench. But the second
personal note is maybe something that should be
confined to a footnote, if at all, but I
can't resist it. One test of Mr. Early's
brilliance as an advocate came in response to a question
I asked him, a rather fanciful question about the
possibility of bringing bivens actions here. And I seem to have overlooked
the fact that we were dealing with the actions by states
so that if anybody was suing, it wasn't going to
be bivens actions. It was going to be 1983 actions. Mr. Early's brilliance
consisted of the fact that he gave no signal
that he had noted my gaffe. He did not correct me. And you can go far in life by-- [LAUGHTER] It reminds me of what Justice
Ginsburg told me at the time she and her husband were
celebrating their 50th wedding anniversary. She said that on the
morning they were married, her mother-in-law said to
her, would you like the secret of a long and happy marriage? And Justice Ginsburg said,
well, yes, I would like to know. And her mother-in-law said,
it helps to be a little deaf. [LAUGHTER] I don't know whether
there is a Mrs. Early yet, but if you treat her,
the way he treated me, you're-- [LAUGHTER] --you got a happy
future ahead of you. [LAUGHTER] The somewhat less personal
thing that I'd like to add is a note, not about
doctrine, but a note about-- I was going to say tactics. Perhaps, this is
sufficiently global even to be regarded as strategy. But it's this. This, like a lot of very
well thought out moot court arguments, was an argument
that, of course, was addressed to the development of doctrine. It's very difficult,
however, to divorce cases on the development of doctrine
from cases or considerations on the strategy of litigation. In this case, as in
all others, if an issue is before the Supreme
Court of the United States, there's one thing you can
be reasonably sure of. And that is it was not
taken merely to fine tune little doctrinal statements. We don't have the
cert petitions here, and there's no reason we
necessarily should have had them in a record like this. But I think we can
reasonably assume that the Supreme Court
of the United States granted cert in this case
because there were 20, now 20 Buy American Acts
out there in the states, and the time had come for a
kind of global examination of the wisdom of allowing
these things to proliferate as they apparently were doing. In the actual world of practice,
if a cert petition in this case had come before
the Supreme Court, there's one thing I
think we can assume the Court would have done. It would not have acted
on the cert petition without doing what, in Supreme
Court jargon, is called a CVSG. The Court would have called
for the views of the Solicitor General on the question of
whether or not to grant cert. And if the court had done that,
the Solicitor General would either have said,
don't touch it, or would have
revealed the position which, if it were touched,
the United States would take. We do not have an indication
here that there was any CVSG. And the fact is then that it's
difficult to find in this case a great, big issue. There are loads of legitimate
doctrinal questions here, and we've heard
them bruited about. But where is the
great, big issue, which is going to dwarf
everything else in the argument if you can find it? As I suggested a moment
ago, the original big issue was simply the proliferation
of Buy American Acts. But once we get to
the posture that we're in here, in which the
United States has not filed an amicus brief,
there is no statement on record of the position
either of the State Department, or the executive more
generally, or perhaps of the Solicitor
General, even reflecting the views of Congress. Once we get to that point,
the big issue in the case is the silence of
the United States on an issue in which it is the
power of the United States, after all, which is the subject
of the case, whether it be under Foreign Relations
Powers or whether it be under Foreign Commerce Clause. This presents a
problem for the Court and a problem for
the respondents-- I'm sorry, for the
petitioners who managed to get their case up here. The problem for the
Court is that we're not that good at foreign policy. We're not that good at
foreign commercial relations. We need help, and we got into
the, perhaps, adventuresome character of the-- I keep saying Zschernig and
Justice Douglas's opinion. But in all
seriousness, to me, it is inconceivable that
the Supreme Court would decide this case today
without a position stated and argued by the Supreme
Court of the United States-- I'm sorry, by the government
of the United States. And that's why I
suggested at the beginning that perhaps the proper
disposition of this case would have been to
dismiss it on the grounds that cert was improvidently
granted, that the improvidence having been indicated by the
silence of the United States on an issue of great
national interest involving judgments of fact,
that, in fact, a Court unaided is very difficult to
make despite instances in the past of the court's
willingness to suggest that it would make them anyway. How, then, does this
difficulty of the Court translate into what
Counsel should do? Well, to begin
with, it translates into a huge difficulty
for the petitioner. And the brunt of
this on the merits is a problem for the petitioner. For the respondent,
it's relatively easy. The respondent can
say, hey, look, there are 20 of these
things, and the United States has not said a word about this. How can anyone seriously
claim, whatever may be the fine tuned standards
either of review on either of these clauses, that
there is something invasive of the
federal power here and therefore unconstitutional? That's the obvious
position for respondents, in a case like this, to take. So I thought, what could
the petitioners have done? And this is what I was trying
to get at by the question. And I will be the
first to say that if I had been arguing
this case in Ames, I would not have
thought of this. And the reason I
did think of it was that I've been through enough
litigation to realize that we wouldn't decide this case. Here's what I think the
petitioners could have done, even though I wouldn't
have done it either. The petitioners
could have argued that the very silence
of the United States indicates the invasive manner
in which the Ames Buy American Act and others like it
has for federal power. And at one point,
Mr. Early started going in this direction. And the fact that the
United States is not here is, itself, extraordinary. So you say, well, why isn't it? Why wouldn't it be here? Well, one way to answer
that question, which I would have urged if I had been
making an Ames ar-- if I could go back 50 years and make
another argument, the answer I would have given was this. The fact that the
United States is not being heard on an issue of
national policy like this is, itself, proof of the
invasion of federal power. The government of
the United States does not have to make formal
preemptive acts through, let's say, executive agreements
on the foreign policy-- Foreign Relations Power or
preemptive acts of legislation under the Commerce Clause. The government can still speak. That's what friends
of the courts do. When the government
didn't, and that is proof that something has skewed the
processes of government here. Otherwise, the United
States would have spoken. One possible explanation,
plausible explanation, I think, for the fact that the
government did not speak here is the history of the
case that actually brought the case into court. It didn't come into court simply
because the University of Ames suddenly discovered
that the act was being would be violated by
the use of foreign technology. The case arose because there
was a lot of very public student protest, the focus of which was
the internal policy of China, its labor policy. It was claimed to
be unduly low wage. It was deemed to be oppressive
in several respects. Therefore, if Ames comes
in and says, I'm sorry-- if the United States
comes in and says, oh yes, these Buy American
Acts are great, it could very well be cast-- the government
could very well be cast publicly as taking a
position on Chinese labor policy. And if, in fact, the
government comes in and says just the opposite,
throw these things out, once again the
government could be cast in taking the contrary
position on Chinese labor policy. It is perfectly true that
the government frequently does take positions that
reflect on the domestic policies of other nations. But when it does,
it normally does so in the exercise
of its judgment that it is an appropriate
time to do so. The very fact that the
United States did not come into this case is as an
amicus curiae is an indication that it felt pressed to take
a position when it did not want to take a position,
and in the best judgment of the executive branch of
the United States at least, it was inappropriate
to take a position. What could be a more
obvious interference with the conduct of the United
States in its foreign policy at very least than the silence
of the United States here. How plausible that will
seem to me a week from now, I don't know. [LAUGHTER] But that would have been a
way to get a great, big issue in front of the Court would
that would dwarf and would drive all the smaller points
of doctrine and doctrinal articulation. And that is, as I said, that
was what I was driving at. I wouldn't have
thought of it when I was arguing, if
I had been arguing this case, on either side. And as I said, Mr. Early moved
in that direction in response to one of my questions. And of course, the
respondents did emphasize. Ms. Freeman began the argument
by emphasizing 20 states. The emphasis was not placed
so heavily, as you know, on silence. But the general rule-- what
at least motivates me just to have gone into this
is-- the general rule is, if you are arguing
a case like this, find a big thing to
argue if you can. Maybe you can't. But needless to say if
you get to the Supreme Court of the United
States, somebody thinks there's a
big thing there, or the case wouldn't
have been taken. And see if you can find it. That it would have been
my candidate for changing, let's say, the character
of the litigation from one of doctrinal
detail to one of sort of an overarching
fact-based demand for some action by
the Supreme Court, needless to say,
whichever side you're on, action in your favor. So the one lesson I hope
you will take from this is look for something big. And with that, we
are going to adjourn, and I believe the drill will
be that we'll have a chance to talk with Counsel for
a while before we go over and Counsel get a well-earned
glass of wine later on. We'll stand adjourned. [APPLAUSE]