Are Telcos Still Liable for NSA Cooperation?

As Orin noted below, one of the most significant changes to FISA is that ISPs and Telcos are now required to cooperate with the program. Yet according to today's WSJ (subscription only), the FISA reforms do not resolve questions about ISP and Telco liability for cooperation with the program in the past.

he measure lacks a provision sought by the White House and telecommunications companies: protection from lawsuits filed against phone companies by privacy groups and customers for past cooperation with government spy programs.

Under the expansion of surveillance authority since Sept. 11, 2001, some major phone companies have complained that their cooperation has left them vulnerable to legal liabilities. AT&T Inc. and Verizon Communications Inc. have been sued by civil-liberties groups and state-utility regulators. Some phone companies have curtailed their cooperation with intelligence programs in recent months, according to people familiar with the matter. The new law instead provides a more limited element of legal cover by compelling phone companies to cooperate. . . .

Partly to tackle the companies' concerns, the new law includes language that compels telecommunications providers to cooperate with government intelligence surveillance orders. The compulsion order is critical, because it provides phone companies with a ready-made justification if sued. The law also explicitly gives telecom companies protection for future cooperation with government surveillance programs.

However, absent from the law is a blanket liability protection to absolve companies for any privacy violations that may have occurred during their cooperation with earlier surveillance activities. The White House pushed for such a measure and has promised to try to have it included when a long-term update to FISA is considered, probably later this year.

UPDATE: Jack Balkin notes liability protection remains high on the Administration's wish-list and offers some thoughts.

Crust (mail):
[O]ne of the most significant changes to FISA is that ISPs and Telcos are now required to cooperate with the program. Yet according to today's WSJ (subscription only), the FISA reforms do not resolve questions about ISP and Telco liability for cooperation with the program in the past.
I find that "yet" very strange. The law was changed. If ISPs and Telcos broke the law in the past they should still be liable even though their past behavior might be legal under current law. If a speed limit gets raised from 55mph to 65mph that's not grounds for disputing an old speeding ticket for going 60mph. Why should this be any different?
8.6.2007 11:08am
Crust (mail):
Via Anonymous Liberal, I see that President Bush is using the charmingly Orwellian phrasing that the telcos are "alleged to have assisted our Nation."
8.6.2007 12:33pm
John (mail):
What damages have people suffered by the telco violations in the past? I can't believe anything more than nominal damages are at stake. If injunctive relief has been sought, the new law would moot that. So what's the big deal about past violations?
8.6.2007 1:37pm
Anderson (mail) (www):
I can't believe anything more than nominal damages are at stake.

John, that is probably why the statute provides for fines, rather than requiring those surveilled to prove damages.

Consider the recent case where the police, serving a warrant on the wrong house, required a man and his wife to get out of bed, even though they were naked, and allow themselves to be visually inspected. You may not see any but nominal damages in such a situation, but I think you would be among the minority of Americans in that respect.

So what's the big deal about past violations?

Besides the fact that they broke the law? If that doesn't bother you, then I can't imagine what else I could say that would change your mind.
8.6.2007 2:04pm
Sammy (mail):
Isn’t or wasn’t it the intent to remove the Telco’s which are innocent third parties from the FISA lawsuits since they had every reason to believe the Feds were serving a lawful order?
8.6.2007 2:12pm
Anderson (mail) (www):
since they had every reason to believe the Feds were serving a lawful order?

Sammy, if they *did* "have every reason to believe the Feds were serving a lawful order," then they can prove same in court.

Whether they *did* have such reason, or not, is a disputed question. N.b. that one or more telcos appear *not* to have complied, because they believed the order was *not* lawful.

Normally, where someone may have broken the law, he doesn't get to say "but I thought it was okay" and have the Congress respond with "why, all right then, we'll just pass a statute immunizing you from liability."
8.6.2007 2:27pm
Sammy (mail):

if they *did* "have every reason to believe the Feds were serving a lawful order," then they can prove same in court.


Please explain why the American consumer should pay for the Telco’s court costs.

Maybe this belongs in Overlawyered, but suing the Telco’s smacks of suing every deep pocket in sight no matter how tangentially involved in hopes one of them will chicken out and pay up.
8.6.2007 2:47pm
Garth:
Orin Kerr, a former federal prosecutor and assistant professor at George Washington University, said his reading of the relevant statutes put the phone companies at risk for at least $1,000 per person whose records they disclosed without a court order.

“This is not a happy day for the general counsels” of the phone companies, he said. “If you have a class action involving 10 million Americans, that’s 10 million times $1,000 — that’s 10 billion.”
NYT - 5/11/2006
8.6.2007 3:38pm
John (mail):
Oops. Fines. Didn't know about that. Thanks for the correction.

As to not caring about past violations, I do. But I thought this was just a civil damages matter of little consequence. As I said, I didn't realize there were fines.
8.6.2007 4:49pm
Anderson (mail) (www):
Please explain why the American consumer should pay for the Telco’s court costs.

Breathtaking logic. I guess there's no reason the American consumer should pay for any company's court costs, or for any damages awarded against it in court. So Ford blew off the impact reports on the Pinto -- why should *I* pay more for a Ford because of it?

I might have thought that a telco saddled with huge costs might become less competitive as it struggled to pay them, so that consumers would switch companies and thus *not* pay those increased costs. But then, the violator telco might go out of business, leaving ACTUAL AMERICANS unemployed.

Clearly, the best recourse is never to hold an American company liable for anything.

I think this has real potential as a GOP campaign plank in 2008, and I hope that Sammy will bring it to all the candidates' attention. I can see Giuliani leaping at the idea.

--John, sorry if I was tart with you above; innocent questions sometimes get mistaken for other kinds of questions. My bad.
8.6.2007 5:08pm
Just an Observer:
As I read the bill, the incentive to obtain authority to compel telecom firms' compliance, and immunize them from future liability, is the only reason for the government even to employ the "additional procedures" described in the new FISA section, 105B.

The government is not required to use the new procedures at all. The law says only that the DNI and AG "may" do so.

However, I think administration officials did immunize themselves and the government from prosecution and civil redress with regard to the now-defunct "TSP," by the flat declaration in Section 105A:

Nothing in the definition of electronic surveillance under section 101(f) shall be construed to encompass surveillance directed at a person reasonably believed to be located outside of the United States.


That provision applies flatly, whether or not the new procedures in 105B are invoked in the future.
8.6.2007 6:34pm
Howard Gilbert (mail):
Some claim the TSP was illegal because a warrant was required by the plain language of 101(f) if the point of intercept was inside the US. Normally a new law is not retroactive unless it explictly says so, but if the new law prevents a court from construing that 101(f) covered the TSP (because it was directed at people overseas), doesn't this "clarification" of the old definition have immediate effect on pending cases? Any claim that the TSP violated FISA has to be dropped because it was based on a "misunderstanding" of the definition that Congress has now cleared up. Is this binding on the courts? Has somthing like this happened before?
8.6.2007 7:52pm
Mark Field (mail):

Some claim the TSP was illegal because a warrant was required by the plain language of 101(f) if the point of intercept was inside the US. Normally a new law is not retroactive unless it explictly says so, but if the new law prevents a court from construing that 101(f) covered the TSP (because it was directed at people overseas), doesn't this "clarification" of the old definition have immediate effect on pending cases?


I believe there's a statute which specifically preserves cases under the prior law unless Congress expresses an intent to void them. The statute may only apply to criminal cases (I read it a while ago and can't recall its exact terms).
8.6.2007 10:41pm
wm13:
Jack Balkin offers some "thoughts"?! I guess that kind of hysterical ranting qualifies as "thoughts" among academics, but it's not the kind of thinking an actual paying client would pay you for.
8.6.2007 11:07pm
Just an Observer:
As for the pending civil cases, not all of them are directly dependent on FISA violations. IIRC, the actions against the telcos are based primarily on their alleged violations of privacy statutes. But the actions against the government are based, in whole or in part, on alleged violations of FISA.

There are no criminal cases pending.
8.6.2007 11:17pm
Howard Gilbert (mail):
"I believe there's a statute which specifically preserves cases under the prior law unless Congress expresses an intent to void them." Yes, but in this case Congress didn't void or change the law, it "clarified" the definition that happens to determine the scope of the old law. Given that the new law simply relaxes an internal government regulation, nobody suffered injury by relying on the old interpretation (other than the cost of filing a legal case that just got thinner both as to standing and merit).
8.6.2007 11:33pm