This actually looks more like the system working to me. There are now two important judges who disagree in their interpretation of the issue. The system failed when this was kept secret such that it could not be ruled on by the legal system (and I don't believe a "secret court" is a part of a "legal system"), but now that it is being ruled on, it's expected and proper that judges may disagree.
Please keep in mind the very actions being described themselves have implications of undermining the entire judicial system, up to and including the SCOTUS. It's easy to say, "Well, yeah it was shitty they hid it from us, but now the courts will all take care of it as they do, and I'm sure SCOTUS won't rule wrongly, no no, they would never do that." but if you ignore the fact that there are allegations that judges are largely appointed based on the ability for the appointee to control via various methods including blackmail and bribery.
I'll let you follow the implications from there, but I'm afraid this situation is much more serious than you seem to realize.
