Minimum Competence - Daily Legal News Podcast
Minimum Competence
Legal News for Tues 1/20 - Hawaii Gun Case at SCOTUS, Judge Restarts Offshore Wind, FL Limits ABA Oversight and IRS Partnership Audits Move to States?
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Legal News for Tues 1/20 - Hawaii Gun Case at SCOTUS, Judge Restarts Offshore Wind, FL Limits ABA Oversight and IRS Partnership Audits Move to States?

Hawaii gun case at the Supreme Court, a judge restarting offshore wind, Florida limiting ABA oversight, and my Bloomberg Tax IRS audit column

This Day in Legal History: Marbury v. Madison

On January 20, 1803, the U.S. Supreme Court decided Marbury v. Madison, a case that began as a minor dispute over an undelivered judicial commission and ended by redefining American constitutional law. The story traces back to the final days of the Adams administration, when outgoing President John Adams rushed to appoint Federalist judges before Thomas Jefferson took office. John Marshall, then serving simultaneously as Secretary of State and incoming Chief Justice, sealed the commissions but failed to deliver several of them. One of the would-be judges, William Marbury, petitioned the Supreme Court for a writ of mandamus to force Jefferson’s Secretary of State, James Madison, to hand over the commission.

The case placed Marshall in a precarious position, as he was being asked to rule on a problem he had helped create. Marshall first held that Marbury had a legal right to his commission and that the law ordinarily provided a remedy when such rights were violated. He then turned to the Judiciary Act of 1789, which appeared to grant the Supreme Court original jurisdiction to issue writs of mandamus. Marshall concluded that this provision conflicted with Article III of the Constitution, which strictly limits the Court’s original jurisdiction. Rather than ordering Madison to act, Marshall declared that the statute itself was unconstitutional.

By denying Marbury his commission while simultaneously asserting the power to strike down an act of Congress, Marshall executed a strategic legal maneuver that avoided a direct confrontation with the executive branch. The Court emerged stronger despite losing the immediate case. In explaining why the Constitution must prevail over conflicting statutes, Marshall articulated the principle of judicial review. That reasoning transformed the Supreme Court from a relatively weak institution into the ultimate interpreter of constitutional meaning.


The U.S. Supreme Court is set to hear a challenge to a Hawaii law that restricts carrying handguns on private property open to the public without the owner’s explicit permission. The case was brought by three licensed concealed-carry holders and a local gun rights group after Hawaii enacted the law in 2023. Under the statute, individuals must have clear verbal or written authorization, including posted signage, before bringing a handgun onto most business premises. A lower federal court initially blocked the law, but the Ninth Circuit later ruled that the measure likely complies with the Second Amendment.

Hawaii has argued that the law appropriately balances gun rights with property owners’ authority to control access to their premises. The challengers contend that the rule effectively prevents lawful gun owners from engaging in everyday activities such as shopping, dining, or buying gas. The challengers are supported by the Trump administration, which claims the law severely burdens the practical exercise of Second Amendment rights. The Supreme Court declined to review other portions of the law involving bans in sensitive places like beaches and bars.

The dispute unfolds against the backdrop of the Court’s recent expansion of gun rights, particularly its 2022 ruling in New York State Rifle & Pistol Association v. Bruen, which recognized a right to carry handguns outside the home for self-defense. That decision also reshaped how courts evaluate gun regulations by focusing on historical analogues rather than modern policy goals.

US Supreme Court to hear challenge to Hawaii handgun limits | Reuters


A federal judge has allowed Dominion Energy to resume construction on its $11.2 billion offshore wind project off the coast of Virginia, marking another courtroom loss for President Donald Trump’s efforts to curb offshore wind development. Judge Jamar Walker of the U.S. District Court for the Eastern District of Virginia ruled that Dominion could restart work while it continues to challenge a stop-work order issued by the Interior Department. That order had halted several offshore wind projects based on newly cited, classified national security concerns related to radar interference.

Walker found that the government’s suspension was overly sweeping as applied to Dominion’s project and emphasized that the cited security risks related to turbine operations, not ongoing construction. Earlier in the week, other offshore wind developers had secured similar rulings, allowing their projects to move forward despite the administration’s objections. Dominion has already invested close to $9 billion in the Coastal Virginia Offshore Wind project, which is expected to supply electricity to hundreds of thousands of homes. The company said it would focus on safely resuming construction while continuing to pursue a long-term resolution with federal regulators.

The decision underscores the legal and financial stakes for the offshore wind industry, as project delays can threaten multi-billion-dollar investments. At the same time, lawsuits challenging federal actions and the administration’s opposition to offshore wind continue to create uncertainty for the sector. Several states, particularly along the East Coast, view offshore wind as critical to meeting growing energy demand and reducing emissions as electricity use increases.

US judge allows Dominion offshore wind project to restart, another legal setback for Trump | Reuters


Florida has joined Texas in scaling back the American Bar Association’s role in determining which law school graduates may sit for the state bar exam. In a 5–1 decision, the Supreme Court of Florida ruled that the ABA will no longer serve as the sole accrediting body for Florida bar eligibility, though graduates of ABA-accredited schools will remain eligible. The court said it plans to allow graduates of law schools approved by other federally recognized accrediting agencies to take the bar, even though no such agencies currently specialize in law school accreditation.

The court framed its decision as an effort to expand access to affordable legal education while protecting academic freedom and nondiscrimination. Florida Governor Ron DeSantis praised the move, criticizing the ABA as overly partisan and arguing it should not control entry into the legal profession. The ABA responded that the ruling reaffirms state authority over licensing and said it would continue to promote the value of national accreditation standards.

Florida’s decision follows a similar move by the Supreme Court of Texas, which recently announced plans to develop its own criteria for approving non-ABA law schools. Other states, including Ohio and Tennessee, are also reviewing their accreditation rules. These developments come amid escalating conflict between the ABA and President Donald Trump’s administration, which has taken steps to reduce the organization’s influence across multiple areas, including judicial nominations and legal education.

Within the ABA, the controversy has prompted internal reforms aimed at reinforcing the independence of its law school accreditation arm. One Florida justice dissented, warning that abandoning exclusive reliance on the ABA was an unnecessary and risky departure from a system that had functioned well for decades.

Florida joins Texas in limiting ABA’s law school oversight role | Reuters


In my column for Bloomberg Tax this week, I argue that the Internal Revenue Service’s partnership audit program has effectively been dismantled under the second Trump administration, with specialized auditors fired, pushed out, or leaving altogether. These weren’t ordinary revenue agents but highly trained experts who understood the most complex partnership structures and could spot abuse hidden deep inside tiered entities. Once that kind of institutional knowledge walks out the door, it can’t simply be rebuilt by restoring funding later. There is no meaningful private-sector substitute for this expertise, and when these specialists leave government, they often stop doing enforcement work entirely.

I explain that this collapse isn’t just a federal tax problem—it’s a looming state budget issue. High-income states that rely heavily on progressive income taxes are especially vulnerable when wealthy taxpayers shift income through opaque pass-through structures. For decades, states have relied on federal audits and enforcement as a backstop, but that dependency has now become a serious liability. I suggest that states step into the vacuum by hiring former IRS partnership specialists and building dedicated partnership audit units within their own revenue departments.

With relatively modest investment, states could recover revenue that would otherwise vanish into complex and lightly monitored structures. I also propose a multistate enforcement compact that would allow states to share audit resources, staff, and findings, creating a decentralized alternative to federal enforcement. The core message is that while federal capacity has been allowed to wither, the expertise still exists—and states may be the last institutions capable of preserving it.

IRS Partnership Audit Brain Drain Is an Opportunity for States

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