Abc, Inc. v. Martha Stewart, Peter Bacanovic, United States of America

360 F.3d 90, 32 Media L. Rep. (BNA) 1385, 63 Fed. R. Serv. 925, 2004 U.S. App. LEXIS 2592
CourtCourt of Appeals for the Second Circuit
DecidedFebruary 18, 2004
Docket04-0220-cr
StatusPublished
Cited by88 cases

This text of 360 F.3d 90 (Abc, Inc. v. Martha Stewart, Peter Bacanovic, United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abc, Inc. v. Martha Stewart, Peter Bacanovic, United States of America, 360 F.3d 90, 32 Media L. Rep. (BNA) 1385, 63 Fed. R. Serv. 925, 2004 U.S. App. LEXIS 2592 (2d Cir. 2004).

Opinion

KATZMANN, Circuit Judge.

This case calls upon, us to balance two weighty constitutional rights: the First Amendment right of the press and of the public to access criminal proceedings and the Sixth Amendment right of criminal defendants to a fair trial. A conglomeration of news organizations and publications has appealed from an order of the United States District Court for the Southern District of New York (Cedarbaum, J.) barring the media from attending the voir dire examinations of prospective jurors held in the district judge’s robing room but providing for the release of the transcripts of the voir dire examinations. We conclude that, under the circumstances presented here, the district court erred in closing the voir dire proceedings. We therefore vacate the portion .of the district court’s order denying the media contemporaneous access to the voir dire. We recognize that, because voir dire has. already been completed, this remedy has no practical implications with respect to this case. We, nevertheless,- decide the issues presented because the underlying dispute regarding the First Amendment right of access is capable of repetition in future cases yet likely to evade review.

BACKGROÜND

This case stems from the high-profile criminal prosécution of Martha Stewart, the founder and former chief executive officer of Martha Stewart Living Omnime-dia, Inc. and the doyenne of the home-lifestyle industry, and of her former stockbroker, Peter Bacanovic. The criminal charges against Stewart and Bacanovic stem from Stewart’s sale of 3,928 shares of stock in the biotech company, ImClone Systems, Inc., on December 27, 2001. Stewart made this sale just before Im-Clone’s stock price plummeted following an announcement that the Food and Drug Administration had rejected the company’s application for approval of its highly touted cancer-fighting drug. The government subsequently initiated an investigation into whether Stewart undertook this trade in violation of federal securities laws and regulations that prohibit trading on the basis of material, nonpublic information. The Superseding Indictment alleges, inter alia, that, after learning of these investigations, Stewart and Bacanovic “entered into an unlawful conspiracy to obstruct the investigations[,] to make false statements and provide false and misleading information regarding Stewart’s sale of ImClone stock[,] and to commit perjury, all to conceal and cover up” the fact that Baconovic *94 had provided Stewart with non-public information and that Stewart had traded on the basis of that information. Superseding Indictment, dated January 5, 2004 ¶23. Specifically, Stewart stands accused of conspiracy to commit offenses against the United States, in violation of 18 U.S.C. § 371 (2000); making false statements, in violation of 18 U.S.C. § 1001 (2000); obstruction of agency proceedings, in violation of 18 U.S.C. § 1505 (2000); and securities fraud, in violation of 15 U.S.C. § 78j (2000). Bacanovic is charged with conspiracy to commit offenses against the United States, in violation of 18 U.S.C. § 371 (2000); making false statements and documents, in violation of 18 U.S.C. § 1001 (2000); perjury, in violation of 18 U.S.C. § 1621 (2000); and obstruction of agency proceedings in violation of 18 U.S.C. § 1505 (2000).

From the start, the Stewart case found itself the focus of an unusually high level of media attention. Recognizing the problems presented in empaneling an unbiased jury under these circumstances, the district court, with the consent of both sides, devised a two-part voir dire process. Prospective jurors would first be screened based on their responses to a lengthy questionnaire. Members of the remaining venire panel would then be individually questioned, outside the presence of other prospective jurors, in the district judge’s robing room. Before jury selection began, the government wrote to the court, expressing concern that members of the media would attempt to interview prospective jurors during jury selection on January 6, 2004, when questionnaires were to be distributed. As a result, the government requested, on behalf of all parties to the case, that the court remind representatives of the media that such contact was forbidden. In response, the district court issued an order, dated January 2, 2004, prohibiting the media from communicating with jurors or prospective jurors or with their family members until such time as that juror’s or potential juror’s service was complete. According to the district court, this measure was “necessary to ensure the integrity of [the] proceedings” as well as “the public’s and the parties’ overriding interest in a fair trial.”

Following the distribution of questionnaires on January 6, 2004, counsel for Stewart, by letter dated January 7, 2004, advised the court that a posting had appeared on the website www.gawker.com, paraphrasing certain portions of the jury questionnaire. The author of the entry purported to be a prospective juror, and there is no evidence in the record to suggest otherwise; nor is there any indication that the media played a role in the disclosure. Nevertheless, citing this incident in support of its request, the government, by letter dated January 14, 2004, which was not docketed or made public until after the entry of the order here at issue, asked the district court to exclude the media from the voir dire proceedings scheduled to be conducted in the robing room and to prohibit the media from publishing or otherwise disclosing the identity of prospective jurors. This measure, the government represented, was necessary to ensure juror candor and thereby protect the “parties’ right to a fair trial.” That same day, several reporters wrote to the district court to inquire whether subsequent voir dire proceedings would be held in open court and, if not, to request that the court consider allowing pool reporters to attend the sessions. 1 The reporters noted that *95 pool reporters had been effectively employed during voir dire examinations in the prosecutions of Imelda Marcos and of Sheik Omar Abdel Rahman and his co-conspirators.

Notwithstanding this request, without affording members of the media notice or an opportunity to be heard, the' district court issued an order on January 15, 2004 (the “January 15 Order”) providing that “no member of the press [could] be present for any voir dire proceedings [to be] conducted in the robing room” and that, instead, “a transcript of each day’s voir dire

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360 F.3d 90, 32 Media L. Rep. (BNA) 1385, 63 Fed. R. Serv. 925, 2004 U.S. App. LEXIS 2592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abc-inc-v-martha-stewart-peter-bacanovic-united-states-of-america-ca2-2004.