Jerry Solovy Successfully Dismantles "Antediluvian" Law that Flouted the First Amendment
April has been dubbed “First Amendment Awareness Month” by some universities; in recognition, we recall Jerry Solovy’s successful argument before the Supreme Court in Bolger v. Youngs Drug Products Corp. Jerry defended Youngs Drug Products Corp, which in the early 1980s wanted to send unsolicited advertisements for contraceptive devices through the U.S. mail. Unfortunately for Youngs, its plan ran afoul of the 1865 Comstock Act, a federal law that made it a crime to sell or distribute materials that could be used for contraception or abortion or to send materials or information about such materials through the mail. Calling the Act “antediluvian,” Jerry argued that it was an unconstitutional restriction of commercial speech. In June 1983, the Court ruled that the government’s interest in purging mailboxes of contraceptive advertisements was outweighed by the harm that results from denying mailbox owners the right to receive truthful information on birth control.
David Savner Builds on Firm's Long Relationship with General Dynamics
On this day in 1998, David Savner, partner and former chair of the Corporate Department, was appointed chief legal officer for the firm’s long-time client General Dynamics. At GD, David led an 80-attorney legal team in the company’s acquisitions of more than 50 businesses worldwide with an estimated value, during his tenure, of more than $20 billion. In 2010, David returned to the firm, where he serves in the Corporate, Corporate Transactions for Government Contractors and Securities Practices.
Albert Jenner Argues before Supreme Court on Behalf of Serbian Diocese
Albert Jenner successfully represented the Serbian Eastern Orthodox Diocese of the United States and America in a dispute between the Diocese and a defrocked bishop. The matter dated back to 1964, when the Mother Church, based in Yugoslavia, defrocked Bishop Dionisije Milivojevich, based in Libertyville. Bishop Dionisije sued, seeking to have the courts declare him the “true diocesan bishop” of the undivided diocese. The Illinois Supreme Court sided with the bishop, determining that the Mother Church had violated its own procedures and internal regulations in defrocking him. On this day in 1976, Bert argued on behalf of the Diocese before the U.S. Supreme Court. On June 21, 1976, the firm secured its victory for the Diocese when the Supreme Court reversed the Illinois Supreme Court, holding that its ruling violated the First and Fourteenth Amendments. “For where resolution of the disputes cannot be made without extensive inquiry by civil courts into religious law and polity,” the majority opinion read, “the First and Fourteenth Amendments mandate that civil courts shall not disturb the decisions of the highest ecclesiastical tribunal within a church of hierarchical polity, but must accept such decisions as binding on them, in their application to the religious issues of doctrine or polity before them.”
First Women’s Forum Formalizes Long-time Efforts Helping Women Lawyers Develop their Careers
The first official meeting of the firm’s Women’s Forum was held on this day in 2002. Its stated mission was to “foster opportunities for professional, social and personal growth for our women attorneys, communicate the firm’s strong commitment to the success of its women attorneys and enhance the visibility and recognition of Jenner & Block’s leadership in support of women in the legal profession.” Susan Levy was the first official chair, and its first steering committee consisted of Susan, Debbie Berman, Lynn Grayson, Linda Listrom, Lorie Masters and Barb Steiner. The Women's Forum is a formalized effort of what pioneering partner Joan Hall had begun years before, and it continues today.
Court Strikes Down "Repugnant" Railroad Bankruptcy Law after Firm's Challenge
On this day in 1982, the U.S. Supreme Court ruled in favor of our client Henry Crown, the largest bond holder in the Chicago, Rock Island and Pacific Railroad Co., in Railway Labor Executives' Assn. v. Gibbons. The case arose out of the railroad’s bankruptcy reorganization, which commenced on March 17, 1975. In 1980 -- three days before the bankruptcy court would order the railroad abandoned, with no obligation on the part of the railroad to pay employee labor protection out of its assets -- Congress passed special legislation called the Rock Island Railroad Transition and Employee Assistance Act (RITA), which required the railroad to pay employee benefits of up to $75 million, to the detriment of its secured bond holders, including Col. Crown. In oral argument before the Supreme Court, Dan Murray argued that RITA represented an uncompensated taking of private property and an unconstitutional non-uniform law in bankruptcy. The Supreme Court declared RITA “repugnant to … the Bankruptcy Clause of the Constitution” because it was a non-uniform bankruptcy law. In its unanimous opinion authored by then-Justice William Rehnquist, the Court called RITA “nothing more than a private bill such as those Congress frequently enacts under its authority to spend money.”
Bill Von Hoene Joins Exelon
Many firm alumni remain connected to the firm through in-house positions for clients and colleagues. Bill Von Hoene worked at Jenner & Block for nearly 20 years, from 1983 to 2002, focusing on complex civil and white-collar criminal litigation and serving on the Management, Pro Bono and Diversity Committees. In 2002, Bill joined Exelon as deputy general counsel. He held a variety of positions before being named Exelon’s senior executive vice president and chief strategy officer two years ago this month. In that role, Bill oversees corporate development, corporate strategy, legal, regulatory, government affairs, investments and communications for the major energy provider.
Contract Buyers League
In honor of “Black History Month,” we look back at the Contract Buyers League (CBL) cases of the late 1960s and 1970s. It was a time when racial segregation still marred one foundation of the American Dream for hundreds of Chicago African-American families: buying a home.
Read More It is impossible fairly to summarize in a few paragraphs the extensive litigation, in both federal and state courts, spanning more than 15 years, involving hundreds of African-American home owners who were our clients. They purchased homes on the west and south sides of Chicago after the end of World War II. On the west side, the sellers engaged in blockbusting-panic tactics, purchasing from frightened white owners with predictions that black buyers were moving into their neighborhoods. The houses were then sold at highly inflated prices to unsophisticated black families. Owing to racial prejudice, the buyers were unable to obtain regular mortgage financing, because Chicago-area banks were unwilling to make mortgage loans to African-Americans, and the federal supervisory agencies were not authorized to take corrective action. As a result, the buyers were required to make significant down payments and sign contracts that extended for many years. The terms of the contracts provided that if the buyers missed a single payment, the sellers were entitled to declare the contracts terminated, retain all previous payments, and repossess the homes. The same situation existed on the south side, except that the homes were newly built, but were sold at similarly inflated prices on land contracts with the same harsh forfeiture provisions.
We filed two cases in the federal District Court in Chicago, one for the west side buyers, and the other for the south side buyers. We also brought suit against the federal lending agencies, alleging illegal racial discrimination in refusing to provide mortgage financing. We litigated the cases in the Court of Appeals for the Seventh Circuit.
To prepare the cases for trial, we held countless weekly meetings at churches located on the west and south sides. The lawyers from Jenner & Block included Tom Sullivan, John Tucker (deceased), Dick Franch, John Stifler (deceased), Carol Thigpen (deceased), Jeff Colman, and many others, including paralegals who served without fee. We were assisted by several Jesuit seminarians, including Jack Macnamara, the instigator of the CBL movement, and the young lady who later became his wife, Peggy. We were assisted by two of the finest lawyers in Chicago, William R. (Bob) Ming (deceased) and Thomas J. Boodell, Jr.
When we were unable to settle the cases or obtain a trial, the clients staged what became known as “the hold outs” — they refused to make their monthly payments, thus risking being foreclosed and evicted. Wide publicity followed. We sought relief from evictions from both the Illinois Supreme Court and then Mayor Richard J. Daley. Many of the evictions were halted, and settlements obtained. Eventually, we renegotiated contracts for over 450 families, which yielded a savings to the buyers of at least $7 million, or more than $30 million in today’s dollars.
The CBL cases resulted in two jury trials and a bench trial in the federal court. The publicity engendered by these cases, including that related to the holdouts, contributed to the end of exploitive contract sales, the availability of mortgage financing for African-American home buyers, and significant restrictions on racial profiling in the housing market.
The CBL cases have been the subject of numerous news and magazine articles, several books, and have been the subject of master and doctoral theses. We made lifelong friends of many of the client members of the Contract Buyers League.
Apart from the savings obtained by our CBL clients, the publicity engendered by the CBL cases were a major influence in bringing about a number of major reforms:
• Changes to the Illinois Forcible Entry and Detainer Act(the eviction law), to allow buyers to raise defenses for non-payment, and to remove the requirement that they post an appeal bond of one year’s payment.
• Passage of an Illinois statute requiring contracts to be treated like mortgages.
• Passage of the federal Home Mortgage Disclosure Act, which forced banks to disclose where they made their loans, thereby making it possible to prove that banks were racially discriminating in their lending policies.
• Passage of the federal Community Reinvestment Act, which by the early 1990s was responsible for the reinvestment of $18 billion dollars in more than 70 U.S. cities.
The Stamler Case and the Demise of HUAC
When the 94th Congress opened on this day in 1975, one of its first moves was to officially abolish the Internal Security Committee, born in 1938 as the House Un-American Activities Committee (HUAC). Charged with investigating alleged Communists, HUAC’s influence peaked during the anti-Communist fervor of the Cold War. By the 1960s, Americans had for a generation witnessed the damage the Committee inflicted on innocent lives. In 1965, the firm began representing a prominent Chicago cardiologist whose long fight against the Committee would endure up to its dying days. Rather than bow to the Committee’s subpoena, Dr. Jeremiah Stamler engaged Albert Jenner and the firm to sue the Committee, seeking to have its mandate declared unconstitutional. After eight and a half years of litigation, the government agreed to drop its indictment against Dr. Stamler for contempt of Congress, and the doctor agreed to drop his civil suit against the Committee. By this time, “the Committee, under pressure from impending judicial review, had sharply curtailed its activities and mandate. A year after the Stamler case ended, the House voted to terminate the Committee altogether,” wrote Tom Sullivan, Chet Kamin and Arthur Sussman in a law review article about the matter.