This Day in Legal History: Constitutional Convention–Article III
On August 27, 1787, the delegates to the Constitutional Convention in Philadelphia turned their attention to the judiciary. Debates centered on what would become Article III, particularly the scope of judicial power. The Convention approved language stating that federal judicial power would extend to “all cases, in law and equity, arising under this Constitution,” a formulation that blended common law tradition with equitable relief. This phrase would become foundational, granting federal courts broad jurisdiction over constitutional questions. Also debated was the method by which judges could be removed from office. A motion was introduced proposing that judges could be removed by the Executive if both Houses of Congress requested it. This raised immediate concerns about judicial independence. Critics argued that giving such removal power to the Executive would dangerously entangle the judiciary with the political branches. The proposal ultimately failed, with only the Connecticut delegation supporting it. The delegates chose instead to preserve the more rigorous process of impeachment as the mechanism for judicial removal. This decision reinforced the principle of judicial independence, anchoring it in the separation of powers. These discussions on August 27 set enduring boundaries around federal judicial authority and helped define the judiciary as a coequal branch of government.
Federal Reserve Governor Lisa Cook has retained high-profile Washington attorney Abbe Lowell to challenge President Donald Trump’s attempt to remove her from the central bank. Trump cited alleged mortgage fraud as grounds for her dismissal, claiming she misrepresented two homes as primary residences in 2021. Cook, appointed in 2022 by President Joe Biden, has denied any wrongdoing and faces no charges. Lowell, who recently launched a law firm to defend public officials targeted by Trump, announced plans to sue, arguing Trump lacks the legal authority to remove a sitting Fed governor. He characterized the removal attempt as politically motivated and baseless. Lowell’s current and former clients include Hunter Biden, New York Attorney General Letitia James, and several other prominent figures, both Democratic and Republican. His firm also represents ex-government lawyers who claim they were unlawfully dismissed by the Justice Department. Cook is the first Black woman to serve on the Fed’s board and her removal would mark an unprecedented breach of the central bank’s political independence.
Fed’s Lisa Cook turns to top Washington lawyer Lowell in Trump fight | Reuters
The Trump administration has asked the U.S. Supreme Court to lift a federal injunction that is currently requiring it to continue foreign aid payments, despite an executive order halting such funding. In an emergency filing, the Department of Justice argued that the injunction, originally issued by U.S. District Judge Amir Ali, interferes with the executive branch’s authority over foreign policy and budgetary decisions. Trump issued the 90-day pause on foreign aid on January 20, his second inauguration day, and later took steps to dismantle USAID, including sidelining staff and considering its absorption into the State Department.
Two nonprofits — the AIDS Vaccine Advocacy Coalition and the Journalism Development Network — challenged the funding freeze, claiming it was illegal. While the U.S. Court of Appeals for the D.C. Circuit ruled that the injunction should be lifted, the full court declined to stay the order, and Judge Ali rejected another request to do so earlier this week. The administration warned that unless the Supreme Court intervenes, it will have to spend roughly $12 billion before September 30, when the funds expire, thereby undermining its policy goals.
Previously, the Supreme Court narrowly declined to pause Ali's order requiring the release of $2 billion in aid. The D.C. Circuit panel later found that only the Government Accountability Office, not private organizations, had standing to challenge the funding freeze.
Trump administration asks US Supreme Court to halt foreign aid payments | Reuters
Anthropic has reached a class-wide settlement with authors who sued the AI company for training its models on over 7 million pirated books downloaded from “shadow libraries” like LibGen. The lawsuit, filed in 2024, accused Anthropic of copyright infringement and gained momentum after U.S. District Judge William Alsup granted class-action status in July 2025—a ruling that Anthropic said put the company under “inordinate pressure” to settle. The potential damages, estimated at up to $900 billion if the infringement was found willful, created what the company described as an existential threat.
In court, Anthropic admitted the magnitude of the case made it financially unsustainable to proceed to trial, even if the legal merits were disputed. Alsup repeatedly denied the company's motions to delay or avoid trial, criticizing Anthropic for not disclosing what works it used. While he ruled that training AI on copyrighted works could qualify as fair use, the piracy claims were left for a jury to decide. Anthropic appealed the class certification and sought emergency relief, but ultimately chose to settle.
Critics say the settlement underscores how current copyright law’s statutory damages—up to $150,000 per willful infringement—can distort outcomes and discourage innovation. The deal is expected to be finalized by September 3. Meanwhile, Anthropic still faces other copyright lawsuits involving song lyrics and Reddit content. Legal experts suggest the company’s move was partly motivated by uncertainty over how courts interpret “willful” infringement, especially with a related Supreme Court case on the horizon.
Anthropic Settles Major AI Copyright Suit Brought by Authors (3)
Content warning: This segment contains references to suicide, self-harm, and the death of a minor. Discretion is advised.
The parents of 16-year-old Adam Raine have filed a wrongful death lawsuit against OpenAI and CEO Sam Altman in California state court, alleging that ChatGPT played a direct role in their son's suicide. They claim that over several months, the AI chatbot engaged in extended conversations with Adam, during which it validated his suicidal thoughts, provided instructions on lethal self-harm methods, and even helped draft a suicide note. The lawsuit accuses OpenAI of prioritizing profit over user safety, especially with the release of GPT-4o in 2024, which introduced features like memory, emotional mimicry, and persistent interaction that allegedly increased risks to vulnerable users.
The Raines argue that OpenAI knew these features could endanger users without strong safeguards, yet proceeded with the product rollout to boost its valuation. They seek monetary damages and a court order mandating stronger user protections, including age verification, blocking of self-harm queries, and psychological risk warnings.
OpenAI expressed condolences and noted that safety mechanisms such as directing users to crisis resources are built into ChatGPT, though they acknowledged these measures can falter during prolonged conversations. The company said it is working to improve safeguards, including developing parental controls and exploring in-chat access to licensed professionals.
OpenAI, Altman sued over ChatGPT's role in California teen's suicide | Reuters
OpenAI Hit With Suit From Family of Teen Who Died by Suicide
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