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•CFTC staff determined Morgan Stanley's legacy swaps remain exempt from uncleared swap margin requirements after internal merger

CFTC Clarifies Legacy Swap Status Remains Intact After Morgan Stanley Merger

The CFTC's Market Participants Division and Division of Clearing and Risk issued an interpretive letter confirming that Morgan Stanley's legacy swaps retain their exempt status under uncleared swap margin and clearing requirements following an internal merger reorganization.

•Division of Clearing and Risk confirmed the merger will not trigger mandatory clearing obligations for existing swap positions

•Supreme Court 'Martin-ized' Danny Howell, permanently barring him from filing future noncriminal petitions without paying fees

Supreme Court Bars Prisoner From Future Fee-Waived Filings

The Supreme Court dismissed Danny Howell's petition and permanently barred him from filing future noncriminal petitions without paying fees, a practice called 'Martin-izing.' Justice Ketanji Brown Jackson dissented, warning about access-to-justice barriers for incarcerated individuals.

•Justice Jackson issued rare dissent warning about access-to-justice concerns for incarcerated petitioners

2w ago•5 min read

•A Depression-era milk substitute called Milnut triggered a Supreme Court case that revolutionized constitutional law through a single footnote

How Depression-Era Milk Case Created Modern Constitutional Rights Framework

A 1938 Supreme Court case about a milk substitute called Milnut produced a footnote that revolutionized constitutional law. The *Carolene Products* decision's Footnote Four established the framework for heightened judicial scrutiny that now protects civil rights, voting rights, and minority groups.

•The Filled Milk Act was industry-backed protectionist legislation designed to eliminate cheaper dairy alternatives during economic hardship

•Justice Samuel Alito completed 20 years on the Supreme Court with retirement speculation ongoing despite Trump's expressed hope he remains

Alito Marks 20 Years on Supreme Court as Retirement Questions Persist

Justice Samuel Alito reached his 20-year milestone on the Supreme Court on Saturday amid ongoing speculation about potential retirement. President Trump has expressed hope that Alito remains on the court as the justices prepare for a busy spring schedule including arguments on birthright citizenship.

•Supreme Court scheduled major cases for spring arguments including birthright citizenship case Trump v. Barbara set for April 1

Seventh Circuit Court of Appeals

7th Circuit Rules on Retirement Plan Beneficiary Dispute After Divorce

The U.S. Court of Appeals for the Seventh Circuit has issued a decision in a complex case involving retirement plan beneficiary rights after divorce. The case centers on Carl Kleinfeldt's attempt to remove his ex-wife Dena Langdon as beneficiary of his employer retirement plan following their September 2022 divorce, and the legal consequences when he died in January 2023 with the change request apparently unfulfilled.

•Carl Kleinfeldt attempted to remove his ex-wife as retirement plan beneficiary via fax after their divorce in September 2022

•Kleinfeldt died in January 2023 with Langdon still listed as the primary beneficiary on plan records

Second Circuit Court of Appeals

Second Circuit Rules on Foster Care Certification Challenge

The U.S. Court of Appeals for the Second Circuit issued a decision in *B.B. v. Hochul*, a class action lawsuit challenging New York's foster care certification system that prevented relatives from caring for children removed from their biological parents due to criminal history or abuse reports.

•Fourteen children challenged New York's foster care certification system that denied relatives the ability to care for them

•The Second Circuit Court of Appeals issued its decision on Feb. 2, 2026, after hearing oral arguments in December 2024

Fifth Circuit Court of Appeals

5th Circuit Reviews Pro Se Appeal in Trans Union Attorney Fees Case

The Fifth Circuit Court of Appeals is considering an appeal by pro se plaintiff Terrence M. Gore challenging a district court's order awarding attorney fees and costs to Trans Union LLC. Gore seeks to proceed in forma pauperis while appealing both the fee award and denial of his reconsideration motion.

•Pro se plaintiff Terrence Gore appeals district court's attorney fee award to Trans Union LLC

•Original lawsuit under Texas and federal credit reporting laws was dismissed as barred by res judicata

Federal Circuit Court of Appeals

Federal Circuit Affirms Trade Court in Mattress Antidumping Case

The U.S. Court of Appeals for the Federal Circuit issued a decision February 2, 2026, in a trade case involving the International Trade Commission's determination regarding antidumping and countervailing duties on mattresses from eight countries. The ruling affirmed a lower court decision sustaining the Commission's finding of material injury to the U.S. mattress industry.

•Federal Circuit affirmed Court of International Trade ruling sustaining ITC injury determination

•Case involves antidumping duties on mattresses from seven countries and countervailing duties on Chinese mattresses

State Court

•Contract formatting is generally irrelevant to substantive unconscionability analysis

California Supreme Court

California Supreme Court Clarifies Unconscionability Standards

The California Supreme Court ruled February 2, 2026, in Fuentes v. Empire Nissan, Inc., clarifying how courts should analyze illegible contract terms when determining unconscionability. The court held that a contract's format is generally irrelevant to substantive unconscionability analysis but requires close scrutiny of difficult-to-read contract terms.

•Courts must closely scrutinize terms in difficult-to-read contracts for unfairness