On Monday, October 29, the Supreme Court heard oral argument in Clapper v. Amnesty International (No. 11-1025), a challenge brought by the American Civil Liberties Union (ACLU) against the FISA Amendments Act (FAA) of 2008.  The FAA amended the Foreign Intelligence Surveillance Act (FISA) of 1978 by authorizing new procedures for electronic surveillance targeting non-United States persons located outside the United States.  The suit was brought on behalf of attorneys, journalists, and labor, legal, media, and human rights organizations who feared that under the FAA, the government would intercept their international communications without an individualized warrant and in violation of the Fourth Amendment.  The Plaintiffs based this argument on the fact that the FAA, unlike FISA, permits the government to apply for mass surveillance authorizations pursuant to certified “targeting procedures.”

The issue before the Court on Monday was not the merits of Plaintiffs’ claim.  Rather, the question was whether the Plaintiffs lacked standing to seek relief because, as the Court put it, “they proffered no evidence that the United States would imminently acquire their international communications” using the FAA.  In March 2011, a panel of the Second Circuit concluded that Plaintiffs did have standing to challenge the law, and in September 2011, the full Second Circuit declined to revisit the case en banc in an evenly divided 6-6 vote.

During Monday’s oral argument, several Justices reportedly seemed sympathetic to the argument that Plaintiffs did have standing because they incurred costs (such as traveling internationally for face-to-face meetings) based on a fear that their international communications would be monitored under the FAA.  Justice Sotomayor, in particular, appeared concerned that if the Court rejected Plaintiffs’ standing argument, then no one would have standing to challenge the law.  Solicitor General Donald B. Verrilli Jr., who appeared for the government, sought to address this concern by explaining that there might be standing if the government attempted to introduce FAA intercepts in a criminal proceeding.  As Justice Ginsburg pointed out, though, this scenario is relatively unlikely because the FAA is designed for intelligence gathering, not law enforcement.

Photo of David Fagan David Fagan

David Fagan co-chairs the firm’s top ranked practice on cross-border investment and national security matters, including reviews conducted by the Committee on Foreign Investment in the United States (CFIUS), and is a partner in the firm’s data privacy and cybersecurity practice.

David has…

David Fagan co-chairs the firm’s top ranked practice on cross-border investment and national security matters, including reviews conducted by the Committee on Foreign Investment in the United States (CFIUS), and is a partner in the firm’s data privacy and cybersecurity practice.

David has been recognized by Chambers USA and Chambers Global for his leading expertise on bet-the-company CFIUS matters and has received multiple accolades for his work in this area, including being named The American Lawyer’s Dealmaker of the Year three times. His work includes successfully securing three of the four Presidential approvals in the history of CFIUS; securing the only Presidential order protecting a client against a proposed hostile takeover; and negotiating the only “golden share” the U.S. government has taken in a U.S. company. Clients laud him for “[seeing] far more matters than many other lawyers,” his “incredible insight,” and “know[ing] how to structure deals to facilitate regulatory reviews” (Chambers USA).

For more than two decades, David has handled transactions for clients across every sector subject to CFIUS review, including some of the most sensitive and complex matters that have set the template for CFIUS compliance and security agreements in their respective industries. He is also routinely called upon to rescue transactions that encounter challenges in CFIUS; provide strategic counsel to clients on navigating and addressing U.S. national security considerations in commercial transactions; and negotiate solutions with the U.S. government, including equity arrangements, that protect national security interests while preserving shareholder value and U.S. business interests.

In the enforcement area, David has represented clients in numerous enforcement actions pursued by CFIUS, including two of the three largest penalty cases resolved with CFIUS.

Reflecting his experience on complex U.S. national security matters intersecting with China, David is regularly engaged by the world’s leading multinational companies to advise on emerging legal issues, including outbound investment restrictions and regulations governing information and communications technologies and services (ICTS), as well as strategic legal projects related to the evolving U.S.-China competitive landscape. 

In addition, in the foreign investment and national security area, David routinely advises clients on matters requiring mitigation of foreign ownership, control, or influence (FOCI) under applicable national industrial security regulations. His work includes advising many of the world’s leading aerospace and defense companies and private equity firms, as well as telecommunications transactions subject to public safety, law enforcement, and national security review by Team Telecom.