Sotomayor Worse for Business Than Souter

Iain Murray has some thoughts on the potential impact of Justice Sotomayor on American business:

Sotomayor is just as liberal as Souter on social issues like affirmative action and abortion, but far more liberal even than Souter on economic issues, such as punitive damages, preemption, and employment law. The Supreme Court, including Justice Souter, unanimously reversed her decision in the Dabit case, where she allowed lawsuits that were preempted by a federal law (SLUSA).

Business will likely lose billions of dollars over time as a result of her replacing Souter. That probably won’t bother Obama, given that “Obama has regretted that the Supreme Court ‘didn’t break free’ from legal constraints to bring about ‘redistribution of wealth.’”

Judge Sotomayor has managed to take already liberal, redistributionist areas of the law and push them even further down the road in the direction of redistributing wealth to constituencies favored by government offficials. The Supreme Court ruled in the Kelo case that governments can take private property and give it to developers as part of a general redevelopment plan that they rationally believe will benefit the public good (My colleague Hans Bader argued at the time that that violated basic axioms of constitutional construction, and rendered the Constitution’s “public use” clause redundant).

But Judge Sotomayor went well beyond that, to hold that property owners have no legal redress even in the face of what legal commentators have called extortion, in Didden v. City of Port Chester. In that case, a developer told a property owner to either give him $800,000 or half his property, or he would seize it by having the Village of Port Chester condemn it. When the property owner refused, the developer promptly had the town condemn it and transfer it to him. Judge Sotomayor and two of her colleagues upheld this seizure against a constitutional challenge in an unpublished opinion. George Mason University law professor Ilya Somin called this case an example of judicially sanctioned extortion.

Judge Sotomayor has also sided with environmental extremists against businesses, trying to stop the EPA from considering cost-benefit analysis in permitting decisions, another decision that the Supreme Court overturned. See Steve Milloy's Green Hell blog for the full story.

In short, Judge Sotomayor will be much more liberal than Justice Souter when it comes to cases involving business.

I still don't think she can be stopped, but all of this needs to be publicized to the greatest extent possible. It not only reveals who Sotomayor is, but reveals who Obama is as well.