Apparently you can teach an old dog new tricks.

On March 23, 2018 the President signed into law the Clarifying Lawful Overseas Use of Data Act, also known as the “CLOUD Act.” The CLOUD Act amended the outdated Stored Communications Act (“SCA”), 18 U.S.C. § 2701 et seq. to require email service providers to disclose emails in its possession, custody or control. Specifically, the amendment now includes emails that are stored outside of the United States.

After the new law was enacted, the government served Microsoft with a new warrant. In compliance with the CLOUD Act, the parties were compelled to agree that the new warrant effectively replaced the old warrant under the prior law. Accordingly, because a live dispute between the parties no longer existed, the case became moot.

In response, the Supreme Court vacated the ruling on review and remanded the case to the Second Circuit ordering the lower court to vacate the District Court’s contempt finding and its denial of Microsoft’s motion to quash, then to direct the District Court to dismiss the case as moot.

The CLOUD Act is a long-awaited effort by the government to close the loopholes allowing parties to evade the probable cause requirements of a search warrant for digital data. The CLOUD Act’s expansive reach may be viewed as a small victory for prosecutors seeking to use digital data stored abroad in the prosecution of a criminal defendant. However, doing so could diminish an individual’s Fourth Amendment right to be protected against unreasonable searches and seizures.

Read more from Gallet Dreyer & Berkey’s White Collar Criminal Defense blog or contact an attorney in our White Collar Crime practice.