---
type: source
title: "DC Circuit Same Panel for Merits Hearing — Court Watchers Signal Unfavorable Anthropic Outcome at May 19 Oral Arguments"
author: "InsideDefense.com, Federal Judges (Henderson, Katsas, Rao), Civil Rights Litigation Clearinghouse"
url: https://insidedefense.com/insider/court-watchers-notice-suggests-unfavorable-outcome-anthropic-pentagon-fight
date: 2026-04-20
domain: ai-alignment
secondary_domains: []
format: thread
status: null-result
priority: high
tags: [dc-circuit, anthropic, pentagon, supply-chain-designation, judicial-review, mode-2, governance]
intake_tier: research-task
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

On April 20, the DC Circuit posted an updated court calendar assigning the May 19 oral arguments on the merits of Anthropic's petition to the same three-judge panel (Henderson, Katsas, Rao) that denied the stay on April 8. Court watchers interpret this as an unfavorable signal for Anthropic.

**The Panel:**
- Judge Karen LeCraft Henderson
- Judge Gregory Katsas (Trump appointee, former WH Counsel)
- Judge Neomi Rao (Trump appointee, former OIRA head)

**Why it's unfavorable:**
The same panel retaining the case means the judges who already weighed equities against Anthropic will now rule on the merits. Legal experts predict: Anthropic loses at the panel level, requiring en banc review or Supreme Court appeal. The April 8 stay denial reasoning ("equitable balance" favors government, wartime military AI procurement interest outweighs financial harm to private company) signals how the panel views the substantive claims.

**Expert prediction (CCIA analysis):**
Anthropic is "likely to lose on the merits" at this panel. Options after panel loss: petition for en banc review (full DC Circuit), certiorari to the Supreme Court.

**Briefing schedule:**
- April 22: Petitioner Brief (Anthropic) — filed
- May 6: Respondent Brief (Government) — due TODAY
- May 13: Petitioner Reply Brief — due
- May 19: Oral arguments

**The April 8 reasoning:**
The panel explicitly declined to address the merits ("we do not broach the merits at this time"). The May 19 arguments will be the first merits ruling. Key questions: Does 10 U.S.C. § 3252 authorize designating a domestic American company? Were the procedural requirements satisfied in a 3-day process? Is there a First Amendment claim when the government punishes contractual restrictions?

**Four legal flaws (Lawfare analysis, already archived May 4):** Statutory authority exceeded; procedural deficiencies (3-day process); pretext (ideological language contradicts required technical findings); logical incoherence (simultaneously indispensable and grave risk).

**InsideDefense note:**
The "notice" that suggests unfavorable outcome is a procedural signal: same-panel retention after a stay denial, especially in a case where the panel's equitable reasoning clearly favored the government.

## Agent Notes

**Why this matters:** Mode 2 analysis: the coercive instrument (supply chain designation) is being tested by the judicial check (Mode 2 Mechanism B from Session 39). The same judges who said the government's interest outweighs Anthropic's financial harm will now rule on whether the government had statutory authority to make the designation. If they defer to executive authority in wartime AI procurement, Mode 2 Mechanism B (judicial self-negation) is definitively confirmed — courts won't constrain AI governance coercive instruments during active military conflicts. This is the largest governance outcome pending in the Anthropic case.

**What surprised me:** Government brief is due TODAY (May 6). If I search for it, it may be available. But the content is less important than the outcome — what matters is whether the panel accepts the four Lawfare-identified flaws.

**What I expected but didn't find:** Expected at least one Trump-appointed judge to create distance from the "political theater" framing. The panel composition (two Trump appointees) cuts both ways — they may be more sympathetic to executive authority, which is the government's argument.

**KB connections:**
- [[government designation of safety-conscious AI labs as supply chain risks inverts the regulatory dynamic by penalizing safety constraints rather than enforcing them]] — this case is the legal test of that claim
- voluntary safety pledges cannot survive competitive pressure — if courts confirm the designation, safety constraints in government contracts are legally unenforceable as a result of the statutory framework
- Mode 2 documented in Session 39 (archived source, May 4 session)

**Extraction hints:**
- This source is process/signal, not substantive claim. Don't extract a claim from the unfavorable signal alone.
- Extract claim POST-ruling (May 19 outcome). Flag for immediate extraction after May 20.
- If panel rules against Anthropic: CLAIM CANDIDATE: "Judicial review of AI governance coercive instruments defers to executive authority in wartime AI procurement — the DC Circuit ruled that government's interest in wartime AI capability outweighs both private companies' financial harm and procedural irregularities in the designation process." (Confidence: pending outcome)

**Context:** The DC Circuit is the most important federal court for government-agency disputes. Cases here are often the last judicial word — SCOTUS rarely grants cert in administrative law disputes. An adverse DC Circuit ruling would make the supply chain designation legally entrenched.

## Curator Notes
PRIMARY CONNECTION: [[government designation of safety-conscious AI labs as supply chain risks inverts the regulatory dynamic by penalizing safety constraints rather than enforcing them]]
WHY ARCHIVED: Tracks the most important pending judicial test of whether courts can constrain AI governance coercive instruments. Don't extract claims until post-ruling (May 20 at earliest).
EXTRACTION HINT: Archive the process now; extract from the outcome later. The signal value is high — if the prediction is correct, Mode 2 Mechanism B (judicial self-negation) is confirmed.
