A legal fight over what should happen to records the FBI seized from US President Donald Trump's personal attorney took a surprise twist Monday when the lawyer, Michael Cohen, was forced to reveal a secret _ that he had also done legal work for Fox News host Sean Hannity.

The disclosure came as a New York judge disappointed a lawyer for Trump by letting prosecutors proceed with the cataloguing of evidence including multiple electronic devices that were seized in raids while a system is set up to ensure they are protected by attorney-client privilege.

Lawyers for Cohen and prosecutors had reason to claim success after three hours of arguments left U.S. District Judge Kimba Wood saying she may appoint a special master to help decide how much of the materials are subject to the privilege.

The only disappointed party seemed to be Trump's attorney, Joanna Hendon, who said she was objecting to any plan by prosecutors to search for how many times Trump's name appears in documents as they try to decide how many might be subject to attorney-client privilege.

Prosecutors promised not to study the contents of the materials while the process of protecting privileged materials is resolved.

Wood also denied Hendon's request that lawyers for Trump and Cohen get the first crack at designating documents and other evidence that might be subject to the privilege.

The Hannity revelation came after Wood required Cohen to divulge the names of the clients he's worked with since the 2016 election.

One, of course, was Trump himself.

Another was Elliot Broidy, a Trump fundraiser who resigned from the Republican National Committee on Friday after it was revealed that he paid $1.6 million to a Playboy Playmate with whom he had an extramarital affair. The Playmate became pregnant and elected to have an abortion.

With Cohen by their side on Monday, lawyers initially resisted revealing the name of the third client for privacy reasons, saying it would be embarrassing for the client and that the client had asked that they immediately appeal any request to divulge his name.

But Wood pressed on.

When the name was announced, there were gasps and some laughter in a courtroom packed with journalists. A few of them raced from the courtroom.

Cohen's lawyers did not detail the type of legal work he did for Hannity.

On his radio show, Hannity said Cohen was never involved in any matter between him and any third party.

Hannity, an outspoken supporter of Trump, has been a fierce critic of special counsel Robert Mueller, who is looking into Russian interference in the 2016 U.S. presidential election.

Monday's hearing began with an appearance by porn actress Stormy Daniels, who was swarmed by photographers and nearly fell as she was hustled into the courthouse, a scene that captured the sensational atmosphere around the case.

The last to enter court, she was among the first to leave.

While in court, she smiled several times as she observed the proceedings from a folding chair near the back of the room.

Outside afterward, she said Cohen has acted like he's above the law and that she and her lawyer are committed to making sure everyone learns the truth.

The April 9 raid on Cohen sought information on a variety of matters, including a $130,000 payment made to Daniels, who alleges she had sex with a married Trump in 2006.

New York – 16 April 2018

1. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Prosecutors were saying that lawyers for Michael Cohen and President Donald Trump were just trying to delay proceedings by asking for a process where they would look at all the evidence that was seized last week first, and then decide what was not violated by attorney-client privilege, and what prosecutors could use in their criminal investigation. Prosecutors say that's not the way to do it. They want a process whereby attorneys for Donald... President Donald Trump and Michael Cohen have a role in the process but aren't able to control the process. The judge seems eager, she said, to make whatever occurs not to...not slow up the process so that the government can do what it needs to do in its investigation, and yet, the attorney-client privilege is protected."

++BLACK FRAMES++

2. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"The judge did say that she may, and this is something that Michael Cohen's lawyers were requesting, that she may appoint a special master to at least have a limited role in deciding how the evidence is viewed and how they ultimately decide what is subject to attorney-client privilege. But she seemed also to be giving the government what it wants in letting the prosecutors, the special taint team they have –not their criminal prosecutors—get a look at all the evidence of putting it together so that they can hand it over to the attorneys for Michael Cohen and President Donald Trump to look at and for them to flag whatever they think should be subject to attorney-client privilege."

++BLACK FRAMES++

3. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Prosecutors revealed that when they did the raids on Michael Cohen's residence and his office, that they had numerous electronic devices, including telephones, and that for what they could, the computer devices, they actually took images. So, his lawyers, they say, already have much of the evidence and know what's there."

++BLACK FRAMES++

4. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"The surprise moment in court came when the lawyers for Michael Cohen did not want to divulge one client who had asked to remain anonymous, saying that it could be embarrassing being associated with someone who's under criminal investigation. The judge forced them to divulge the name, it turned out to be Sean Hannity, a Fox News personality. And as soon as that name was announced, there was an audible gasp in the courtroom that's largely crowded with journalists, and some journalists immediately ran outside court, and you could see Stormy Daniels smiling on the side of the courtroom in the back, a little bit after this happened."

++BLACK FRAMES++

5. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Stormy Daniels has a role in this because Michael Cohen played a part in ultimately a payoff that she got to remain silent after what she says was an affair with the president."

++BLACK FRAMES++

6. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"So, I think, ultimately, she has a role in the investigation because the settlement that was paid out to her. Michael Cohen says he paid her the money and he did it out of a home equity loan. So that's presumed to be part of the government's investigation."

++EDIT ENDS ON A SOUNDBITE++

Special counsel Robert Mueller did not find evidence that President Donald Trump's campaign "conspired or coordinated" with Russia to influence the 2016 presidential election but reached no conclusion on whether Trump obstructed justice, Attorney General William Barr declared Sunday.

That brought a hearty claim of vindication from Trump but set the stage for new rounds of political and legal fighting.

House Judiciary Committee chairman Congressman Jerrold Nadler said Sunday night that Congress needs to hear from Attorney General Barr about his decision and see "all the underlying evidence."

Mueller clearly and explicitly is not exonerating the president, said Nadler but Barr is telling the American people that while the president is not exonerated, there will be no action by DOJ.

"I would hope that it would not be necessary to use subpoena power to get the attorney general to appear before the committee," Nadler told reporters at a news conference in New York.

"We also want to see the full report and if necessary we'll use subpoena power to get that too."

In a statement, two other top Democrats, Nancy Pelosi and Chuck Schumer, said Barr was "not a neutral observer" and they also urged the full release of special counsel Robert Mueller's report.

New York - 24 March 2019

1. Pan Rep. Jerrold Nadler walks to microphones

2. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

"Good evening, earlier today I received a four-page letter from Attorney General Barr outlining his summary of Special Counsel Robert Mueller's report while making a few questionable legal arguments of his own. I take from this letter, three points. First, President Trump is wrong. This report does not amount to a so-called total exoneration. Special Counsel Muller was clear that his report quote does not exonerate close quote the president. The special counsel spent 22 months uncovering evidence of obstruction and other misconduct. Attorney General Barr, who auditioned for his role with an open memorandum suggesting that the obstruction investigation was unconscionable and that a president and that it was almost impossible for any president to commit obstruction of justice since he is the head of the executive branch, made a decision about that evidence in under 48 hours. His conclusions raise more questions than they answer. Given the fact that Mueller uncovered evidence that in his own words does not exonerate the president.  It is unconscionable that President Trump would try to spin the special counsel counsel's findings as if his conduct was remotely acceptable. Second, given these questions it is imperative that the attorney general release the full report and the underlying evidence. The entire unfiltered report, as well as the evidence underlying that report, must be made available to Congress and to the American people. As much information can be as can be made public should be made public without delay. I intend to fight for that transparency. We will ask the attorney general to testify before the House Judiciary Committee. We will demand the release of the full report. The American people are entitled to a full accounting of the President's misconduct referenced by the special counsel. Third, the attorney general's comments make it clear that Congress must step in to get the truth and provide full transparency to the American people. The president has not been exonerated by the special counsel, yet the attorney general has decided not to go further or apparently to share those findings with the public. We cannot simply rely on what may be a hasty partisan interpretation of the facts. Earlier this month the House passed a resolution calling for a full and complete release of the special counsel's report by a vote of 420 to nothing. We now call on the attorney general to honor that request, to release the report and the underlying evidence and to appear before the Judiciary Committee to answer our questions without delay. "

3. Wide news conference

4. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

"Reporter: Would you be willing to use subpoena power if necessary?

Sure.  I would hope that it would not be necessary to use subpoena power to get the attorney general to appear before the committee. We also want to see the full report and if necessary we'll use subpoena power to get that too."

++SOUNDBITES SEPARATED BY BLACK++

5. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

"Now, it is as far as I know unprecedented for a special prosecutor not to make that decision one way or another one way or the other and certainly unprecedented for an attorney general to arrogate himself that decision and certainly precedent for an attorney general who campaigned for the role by saying presidents can hardly ever commit obstruction of justice. All right. Thank you very much everybody."

6. Pan Nadler walks away

A legal fight over what should happen to records the FBI seized from US President Donald Trump's personal attorney took a surprise twist Monday when the lawyer, Michael Cohen, was forced to reveal a secret _ that he had also done legal work for Fox News host Sean Hannity.

The disclosure came as a New York judge disappointed a lawyer for Trump by letting prosecutors proceed with the cataloguing of evidence including multiple electronic devices that were seized in raids while a system is set up to ensure they are protected by attorney-client privilege.

Lawyers for Cohen and prosecutors had reason to claim success after three hours of arguments left U.S. District Judge Kimba Wood saying she may appoint a special master to help decide how much of the materials are subject to the privilege.

The only disappointed party seemed to be Trump's attorney, Joanna Hendon, who said she was objecting to any plan by prosecutors to search for how many times Trump's name appears in documents as they try to decide how many might be subject to attorney-client privilege.

Prosecutors promised not to study the contents of the materials while the process of protecting privileged materials is resolved.

Wood also denied Hendon's request that lawyers for Trump and Cohen get the first crack at designating documents and other evidence that might be subject to the privilege.

The Hannity revelation came after Wood required Cohen to divulge the names of the clients he's worked with since the 2016 election.

One, of course, was Trump himself.

Another was Elliot Broidy, a Trump fundraiser who resigned from the Republican National Committee on Friday after it was revealed that he paid $1.6 million to a Playboy Playmate with whom he had an extramarital affair. The Playmate became pregnant and elected to have an abortion.

With Cohen by their side on Monday, lawyers initially resisted revealing the name of the third client for privacy reasons, saying it would be embarrassing for the client and that the client had asked that they immediately appeal any request to divulge his name.

But Wood pressed on.

When the name was announced, there were gasps and some laughter in a courtroom packed with journalists. A few of them raced from the courtroom.

Cohen's lawyers did not detail the type of legal work he did for Hannity.

On his radio show, Hannity said Cohen was never involved in any matter between him and any third party.

Hannity, an outspoken supporter of Trump, has been a fierce critic of special counsel Robert Mueller, who is looking into Russian interference in the 2016 U.S. presidential election.

Monday's hearing began with an appearance by porn actress Stormy Daniels, who was swarmed by photographers and nearly fell as she was hustled into the courthouse, a scene that captured the sensational atmosphere around the case.

The last to enter court, she was among the first to leave.

While in court, she smiled several times as she observed the proceedings from a folding chair near the back of the room.

Outside afterward, she said Cohen has acted like he's above the law and that she and her lawyer are committed to making sure everyone learns the truth.

The April 9 raid on Cohen sought information on a variety of matters, including a $130,000 payment made to Daniels, who alleges she had sex with a married Trump in 2006.

New York – 16 April 2018

1. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Prosecutors were saying that lawyers for Michael Cohen and President Donald Trump were just trying to delay proceedings by asking for a process where they would look at all the evidence that was seized last week first, and then decide what was not violated by attorney-client privilege, and what prosecutors could use in their criminal investigation. Prosecutors say that's not the way to do it. They want a process whereby attorneys for Donald... President Donald Trump and Michael Cohen have a role in the process but aren't able to control the process. The judge seems eager, she said, to make whatever occurs not to...not slow up the process so that the government can do what it needs to do in its investigation, and yet, the attorney-client privilege is protected."

++BLACK FRAMES++

2. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"The judge did say that she may, and this is something that Michael Cohen's lawyers were requesting, that she may appoint a special master to at least have a limited role in deciding how the evidence is viewed and how they ultimately decide what is subject to attorney-client privilege. But she seemed also to be giving the government what it wants in letting the prosecutors, the special taint team they have –not their criminal prosecutors—get a look at all the evidence of putting it together so that they can hand it over to the attorneys for Michael Cohen and President Donald Trump to look at and for them to flag whatever they think should be subject to attorney-client privilege."

++BLACK FRAMES++

3. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Prosecutors revealed that when they did the raids on Michael Cohen's residence and his office, that they had numerous electronic devices, including telephones, and that for what they could, the computer devices, they actually took images. So, his lawyers, they say, already have much of the evidence and know what's there."

++BLACK FRAMES++

4. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"The surprise moment in court came when the lawyers for Michael Cohen did not want to divulge one client who had asked to remain anonymous, saying that it could be embarrassing being associated with someone who's under criminal investigation. The judge forced them to divulge the name, it turned out to be Sean Hannity, a Fox News personality. And as soon as that name was announced, there was an audible gasp in the courtroom that's largely crowded with journalists, and some journalists immediately ran outside court, and you could see Stormy Daniels smiling on the side of the courtroom in the back, a little bit after this happened."

++BLACK FRAMES++

5. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"Stormy Daniels has a role in this because Michael Cohen played a part in ultimately a payoff that she got to remain silent after what she says was an affair with the president."

++BLACK FRAMES++

6. SOUNDBITE (English) Larry Neumeister, Associated Press Reporter:

"So, I think, ultimately, she has a role in the investigation because the settlement that was paid out to her. Michael Cohen says he paid her the money and he did it out of a home equity loan. So that's presumed to be part of the government's investigation."

++EDIT ENDS ON A SOUNDBITE++

Special counsel Robert Mueller did not find evidence that President Donald Trump's campaign "conspired or coordinated" with Russia to influence the 2016 presidential election but reached no conclusion on whether Trump obstructed justice, Attorney General William Barr declared Sunday.

That brought a hearty claim of vindication from Trump but set the stage for new rounds of political and legal fighting.

House Judiciary Committee chairman Congressman Jerrold Nadler said Sunday night that Congress needs to hear from Attorney General Barr about his decision and see "all the underlying evidence."

Mueller clearly and explicitly is not exonerating the president, said Nadler but Barr is telling the American people that while the president is not exonerated, there will be no action by the Department of Justice.

"I would hope that it would not be necessary to use subpoena power to get the attorney general to appear before the committee," Nadler told reporters at a news conference in New York.

"We also want to see the full report and if necessary we'll use subpoena power to get that too."

In a statement, two other top Democrats, Nancy Pelosi and Chuck Schumer, said Barr was "not a neutral observer" and they also urged the full release of special counsel Robert Mueller's report.

New York - 24 March 2019

1. Pan Rep. Jerrold Nadler walks to microphones

2. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

"Good evening, earlier today I received a four-page letter from Attorney General Barr outlining his summary of Special Counsel Robert Mueller's report while making a few questionable legal arguments of his own. I take from this letter, three points. First, President Trump is wrong. This report does not amount to a so-called total exoneration. Special Counsel Muller was clear that his report quote "does not exonerate" close quote, the president. The special counsel spent 22 months uncovering evidence of obstruction and other misconduct. Attorney General Barr, who auditioned for his role with an open memorandum suggesting that the obstruction investigation was unconscionable, and that a president - and that it was almost impossible for any president to commit obstruction of justice since he is the head of the executive branch - made a decision about that evidence in under 48 hours. His conclusions raise more questions than they answer, given the fact that Mueller uncovered evidence that in his own words does not exonerate the president.  It is unconscionable that President Trump would try to spin the special counsel counsel's findings as if his conduct was remotely acceptable. Second, given these questions it is imperative that the attorney general release the full report and the underlying evidence. The entire unfiltered report, as well as the evidence underlying that report, must be made available to Congress and to the American people. As much information can be as can be made public should be made public without delay. I intend to fight for that transparency. We will ask the attorney general to testify before the House Judiciary Committee. We will demand the release of the full report. The American people are entitled to a full accounting of the President's misconduct referenced by the special counsel. Third, the attorney general's comments make it clear that Congress must step in to get the truth and provide full transparency to the American people. The president has not been exonerated by the special counsel, yet the attorney general has decided not to go further or apparently to share those findings with the public. We cannot simply rely on what may be a hasty partisan interpretation of the facts. Earlier this month the House passed a resolution calling for a full and complete release of the special counsel's report by a vote of 420 to nothing. We now call on the attorney general to honor that request, to release the report and the underlying evidence and to appear before the Judiciary Committee to answer our questions without delay. "

3. Wide news conference

4. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

Reporter: "Would you be willing to use subpoena power if necessary?

Sure. I would hope that it would not be necessary to use subpoena power to get the attorney general to appear before the committee. We also want to see the full report and if necessary we'll use subpoena power to get that too."

++SOUNDBITES SEPARATED BY BLACK++

5. SOUNDBITE (English) Rep. Jerrold Nadler, Democrat - New York, House Judiciary Committee chairman:

"Now, it is as far as I know unprecedented for a special prosecutor not to make that decision one way or another one way or the other and certainly unprecedented for an attorney general to arrogate himself that decision and certainly precedent for an attorney general who campaigned for the role by saying presidents can hardly ever commit obstruction of justice. All right. Thank you very much everybody."

6. Pan Nadler walks away