News

Case Summaries

Administrative Law

[09/02] Bale Chevrolet Co. v. US
In a petition for review of intentional disregard penalties issued against petitioner for failing to file required Forms 8300 information returns with the IRS, the petition is denied where the government's positions were substantially justified.

[09/01] Morse v. Merit Sys. Prot. Bd.
In plaintiff's action claiming that the Transportation Security Administration violated his veterans' preference rights when it declined to waive its maximum entry age requirement in connection with his application for employment as a Federal Air Marshal, the Merit Systems Protection Board's dismissal for lack of jurisdiction is affirmed as the TSA is exempt from section 3330(a) of Title 5, which provides Board appeal rights for preference eligible veterans.

[09/01] Western Watersheds Project v. Kraayenbrink
In a National Environmental Policy Act (NEPA) challenge to eighteen amendments to the Bureau of Land Management's (BLM) grazing regulations, partial summary judgment for plaintiffs is affirmed in part where: 1) the BLM failed to address concerns raised by its own experts, the Fish and Wildlife Service, the EPA, and state agencies; and 2) there was resounding evidence from agency experts that the eighteen amendments to the BLM's grazing regulations may affect listed species and their habitat. However, the order is vacated in part where the district court failed to consider plaintiffs' Federal Land Policy and Management Act claim under the framework and with the deference set forth in Chevron.

More...

Civil Procedure

[09/02] US v. Ritchie Special Cred. Invs., Ltd.
In intervenor's application to intervene in an adversary proceeding initiated by the government pursuant to 18 U.S.C. section 1345 against the alleged author of a Ponzi scheme, the denial of the application is affirmed where: 1) the litigation progressed substantially between the initiation of these proceedings and intervenor's second motion to intervene; and 2) intervenor had knowledge of all the facts surrounding the district court's injunction, and failed to take issue with it when first presented with an opportunity to do so.

[09/02] Ritchie Special Cred. Invs., Ltd. v. US Trustee
In a creditor's objection to the appointment of a bankruptcy trustee, arguing that the trustee did not qualify as a “disinterested person” as required by 11 U.S.C. section 1104(d), the denial of the objection is affirmed where: 1) the bankruptcy court did not abuse its discretion in concluding that the trustee's role and interests as a receiver did not predispose him towards forfeiture or amount to a disqualifying material adverse interest; and 2) there was no abuse of discretion in the bankruptcy court’s determination that creditor failed to show that it would be prejudiced by the trustee's appointment as trustee in the jointly administered estates.

[09/01] Mwasaru v. Napolitano
A Kenyan citizen's appeal of a district court's order dismissing her petition for a writ of mandamus, seeking a court order compelling U.S. Immigration and Customs Enforcement to transfer her file to an immigration judge to commence removal proceedings, review by the IJ of the denial of adjustment status, and the issuance of a diversity visa should the IJ approve her application, is dismissed for lack of jurisdiction as section 1154 rendered petitioner ineligible for a DV-2007 visa as of midnight on September 30, 2007, and therefore, she is likewise ineligible for adjustment of status under section 1255 because no visa is immediately available.

More...

Commercial Law

[09/01] Hollander v. Copacabana Nightclub
In a 42 U.S.C. section 1983 action brought against several New York City nightclubs for discriminating against men on “Ladies’ Nights," dismissal of the complaint is affirmed where the nightclubs were not state actors and thus were not subject to section 1983.

[08/31] Sinoying Logistics Pte Ltd. v. Yi Da Xin Trading Corp.
In an action seeking to attach defendant's property in New York as pre-judgment security for a pending arbitration in Hong Kong, dismissal of the action for lack of personal jurisdiction is affirmed where the district court did not err in declining to fashion an equitable remedy in circumstances where it was clear that the original attachment order could not be sustained in light of Shipping Corp. of India Ltd. v. Jaldhi Overseas Pte Ltd., 585 F.3d 58 (2d Cir. 2009).

[08/30] Princo Corp. v. Int'l Trade Comm'n
In plaintiff's patent infringement suit related to two types of digital storage devices, recordable discs (CD-Rs) and rewritable compact discs (CD-RWs), claiming that defendant was violating section 337(a)(1)(B) of the Tariff Act of 1930 by importing CD-Rs and CD-RWs that infringed its patents, the International Trade Commission's decision that the doctrine of patent misuse does not bar intervenor-U.S. Philips Corporation from enforcing its patent rights against defendant is affirmed as, even if Phillips and Sony engaged in an agreement not to license the patent at issue for non-Orange-Book purposes, that hypothesized agreement had no bearing on the physical or temporal scope of the patents in suit, nor did it have anti-competitive effects in the relevant market. Therefore, the asserted agreement between Phillips and Sony did not constitute misuse and cannot justify rendering all of Phillips' Orange Book patents unenforceable.

More...

Constitutional Law

[09/02] Carlson v. Bukovic
In plaintiff's civil rights action under 42 U.S.C. section 1983 against an officer for excessive force and the city for failure to train the officer, district court's judgment in favor of the defendants is affirmed where: 1) mere physical contact by an officer, although significant factor, does not automatically qualify an encounter as a Fourth Amendment seizure; 2) district court correctly submitted the question of whether a seizure took place to the jury; 3) the jury was entitled to determine that, at the time the officer touched plaintiff's arm, officer's action was more exhortatory than commanding; 4) because plaintiff's section 1983 Fourth Amendment excessive force claim failed, her failure-to-train claim against the city fails as well; and 5) plaintiff's claim that the district judge was biased need not be addressed as recusal was unnecessary in this case.

[09/02] Goldhamer v. Nagode
In plaintiffs' 42 U.S.C. section 1983 suit alleging violations of their rights under the First, Fourth, and Fourteenth Amendments and under state law, challenging a city ordinance's failure-to-disperse provision of section 8-4-010(d), district court's judgment permanently enjoining the city from enforcing the provision on the ground that it imposes too great a burden on protected free speech and is unconstitutionally vague is vacated and remanded as, plaintiffs lack standing to challenge the facial validity of the ordinance at issue as they were not even arguably violating the failure-to-disperse provision when they were arrested for demonstrating against military recruitment, and plaintiffs have not shown a reasonable prospect of future arrest for again violating that same provision.

[09/01] Warf v. Bd of Elections of Green County
In plaintiffs' 42 U.S.C. section 1983 action claiming unconstitutional disenfranchisement against a county elections board and individuals, alleging that their voting rights under the Fourteenth Amendment were violated by a Kentucky state trial court judgment that declared void all 542 votes cast by absentee ballot in the 2006 General Election for the office of Green County Clerk, grant of summary judgment in favor of the defendants is affirmed as the Green Circuit Court's decision to void the absentee ballots does not rise to a level of fundamental unfairness in violation of Due Process as it is evident that the decision to void all absentee ballots cast in the election reasonably applied applicable Kentucky case law, and the court appropriately looked to analogous state cases and applied the careful scrutiny to incumbent clerks described therein.

More...

Contracts

[09/02] Travelers Prop. Cas. Ins. Co. of Am. v. Nat'l. Union Ins. Co.
In an action by one insurer against another seeking $10 million in subrogation proceeds, summary judgment for defendants is affirmed in part where plaintiff waived certain rights by refusing repeated invitations to participate in subrogation discussions. However, the judgment is reversed in part where, as the excess insurer, plaintiff was entitled to a priority interest in the subrogation proceeds representing insured losses.

[09/02] Bodum USA, Inc. v. La Cafetiere, Inc.
In a suit for common law trade dress of a French-press coffee maker known as the Chambord, district court's judgment in favor of the defendant is affirmed as, Article 4 of the parties' contract is clear and precise as it allows defendant to sell the coffee maker design anywhere except France - provided that it does not use the Chambord or Melior names and does not use plaintiff's supply channels for four years.

[09/01] US ex rel. SNAPP v. Ford Motor Co.
District court's denial of plaintiff's motion to file a second amended complaint concluding that the proposed amended complaint, which included a list of contracts that the government allegedly entered into as a result of fraudulent representations on the part of Ford, did not allege with sufficient particularity the existence of a "claim" as defined by the False Claims Act (FCA), is affirmed as, because no holding of Bledsoe II affected the circuit's law on the questions at issue before the district court, the district court did not abuse its discretion in holding that its original rationale for not permitting plaintiff to file its second amended complaint pursuant to Rule 59(e) still obtained and that permitting such a filing was not otherwise "required in order to prevent an injustice."

More...

Dispute Resolution & Arbitration

[08/31] Cent. States Southeast & Southwest Areas Pension Fund v. O'Neil Bros. Transfer & Storage Co.
In a multi-employer pension fund administrator's suit against an employer seeking interim payment of withdrawal liability under the Employee Retirement Income Security Act, district court's grant of summary judgment for administrator is affirmed as defendant's default is governed by the provisions of 29 U.S.C. section 1399(c)(5)(B), and under that section, as interpreted reasonably by the Pension Benefit Guaranty Corporation (PBGC), the entire amount of the withdrawal payment is immediately payable upon default and that obligation is not deferred because of the pendency of arbitration.

[08/31] Cotchett, Pitre & McCarthy v. Universal Paragon Corp.
In defendant's suit against a law firm, claiming that an arbitrator's award of $7,554,149.13 in attorney fees and expenses for the law firm, related to its representation of defendant in an underlying complex environmental litigation, is unconscionable and violates public policy, superior court's affirmance of the award is affirmed as, assuming that defendant's claim of unconscionability is subject to judicial review as a predicate for determining whether the arbitration award violates public policy, the claim is rejected on the merits as neither the fee agreement nor the award actually issued by the arbitrator is unconscionable under rule 4-200 of the Rules of Professional Conduct.

[08/30] Next Step Med. Co., Inc. v. Johnson & Johnson Int'l

More...

Evidence

[09/02] Weber v.Universities Research Ass'n, Inc.
In plaintiff's suit against her former employer for sex discrimination and retaliation in violation of Title VII, district court's grant of summary judgment in favor of the defendant is affirmed where: 1) plaintiff has waived her discrimination and retaliation arguments under the direct method of proof; and 2) plaintiff has failed to establish a prima facie case of sex discrimination, because even if she does not have to show that she was meeting defendant's legitimate business expectations, defendant is still entitled to summary judgment as she has failed to show that there were similarly situated men who were treated more favorably than she was.

[09/02] US v. Rea
District court's conviction of defendants for conspiracy to distribute in excess of 500 grams of a mixture containing methamphetamine and other related offenses, and their sentences are affirmed in part and vacated in part where: 1) because the government concedes defendant's argument, that the conspiracy alleged in his indictment is a lesser included offense of the continuing criminal enterprise (CCE) and that, along with a special assessment for each, his concurrent sentences thus amount to cumulative punishment not authorized by Congress, defendant's conviction and sentence for conspiracy are vacated; 2) the evidence presented against defendant was sufficient to justify his continuing criminal enterprise conviction; 3) district court did not abuse its discretion by admitting the statements made by defendant's co-conspirators and any error related to an agent's testimony was harmless; 4) district court did not plainly err by imposing the firearm sentencing enhancement upon the defendant as the government demonstrated that the guns were found in close proximity to drug paraphernalia and that defendant dealt in large quantities of meth on a frequent basis; 5) sufficient evidence supported co-defendant's conviction for conspiracy as based on the evidence, any reasonable juror could find that the relationship between the defendants exceeded that of a buyer-seller relationship; and 6) district court's calculation errors did not affect co-defendant's substantial rights.

[09/02] US v. Slaight
Conviction of a defendant for receipt and possession of child pornography shipped in interstate or foreign commerce, and sentenced to a mandatory minimum of 15 years by reason of a previous conviction for aggravated sexual abuse of a minor, is reversed as, defendant's motion to suppress incriminating statements that he had made when questioned by federal officers at a police station should have been granted as facts are incontrovertible and show that the average person in defendant's position would have thought himself in custody, and any other conclusion would leave Miranda in tatters.

More...

Government Contracts

[09/01] US ex rel. SNAPP v. Ford Motor Co.
District court's denial of plaintiff's motion to file a second amended complaint concluding that the proposed amended complaint, which included a list of contracts that the government allegedly entered into as a result of fraudulent representations on the part of Ford, did not allege with sufficient particularity the existence of a "claim" as defined by the False Claims Act (FCA), is affirmed as, because no holding of Bledsoe II affected the circuit's law on the questions at issue before the district court, the district court did not abuse its discretion in holding that its original rationale for not permitting plaintiff to file its second amended complaint pursuant to Rule 59(e) still obtained and that permitting such a filing was not otherwise "required in order to prevent an injustice."

[08/31] Great W. Contractors, Inc. v. Irvine Unified Sch. Dist.
In plaintiff-contractor's suit against a school district (District), challenging the District's rejection of plaintiff's bid to remodel two elementary schools, trial court's judgment in favor of the District is reversed where: 1) trial court was incorrect in rejecting plaintiff's lowest bid as nonresponsive as, under D.H. Williams, 146 Cal.App.4th 757 (2007), a public agency cannot reject the bid of the lowest bidder on a public works project on the theory that the bid is nonresponsive to the agency's request for bids when, in substance, the real reason for the rejection is that the agency thinks the lowest bidder is "not responsible" - at least not without giving the lowest bidder the chance for a hearing on whether the lowest bidder really is "not responsible"; and 2) the trial court abused its discretion in rejecting plaintiff's admittedly belated request to amend.

[08/27] Kirby Lake Dev., Ltd. v. Clear Lake City Water Auth.
In developers' suit against a water authority for inverse condemnation, the judgment of the court of appeals in favor of the water authority is affirmed in part and reversed in part where: 1) the authority's refusal to include a reimbursement measure in every bond election constituted a breach of its contracts with the developers; 2) because the Legislature has waived the authority's immunity from suit for this breach, the court of appeals' judgment is reversed and remanded to consider authority's remaining issues; and 3) court of appeals' judgment that the authority's actions did not rise to the level of a taking is affirmed.

More...

International Law

[09/02] Bodum USA, Inc. v. La Cafetiere, Inc.
In a suit for common law trade dress of a French-press coffee maker known as the Chambord, district court's judgment in favor of the defendant is affirmed as, Article 4 of the parties' contract is clear and precise as it allows defendant to sell the coffee maker design anywhere except France - provided that it does not use the Chambord or Melior names and does not use plaintiff's supply channels for four years.

[09/02] Bakalar v. Vavra
In an action seeking a declaration that plaintiff was the owner of a drawing by Egon Schiele, judgment for plaintiff is vacated where: 1) although it is unclear whether a cause of action comparable to the counterclaims of defendants could be successfully brought in Austria, allowing the claims to go forward under New York law was consistent with the principles underlying the decision of the Supreme Court of Austria; and 2) the district judge, by applying Swiss Law, erred in placing the burden of proof on defendants to show that the Nazis looted the drawing.

[09/01] Funai Elec. Co., Ltd. v. Daewoo Elec. Corp.
In a patent infringement suit pertaining to various electrical and mechanical components of video cassette players and recorders (VCRs), judgment of the district court is affirmed in part, reversed in part and remanded where: 1) district court's judgment of infringement of three patents and the damages for the infringement are affirmed; and 2) district court's determination of no successor liability in applying the South Korean law is reversed and remanded.

More...

International Trade

[08/30] Princo Corp. v. Int'l Trade Comm'n
In plaintiff's patent infringement suit related to two types of digital storage devices, recordable discs (CD-Rs) and rewritable compact discs (CD-RWs), claiming that defendant was violating section 337(a)(1)(B) of the Tariff Act of 1930 by importing CD-Rs and CD-RWs that infringed its patents, the International Trade Commission's decision that the doctrine of patent misuse does not bar intervenor-U.S. Philips Corporation from enforcing its patent rights against defendant is affirmed as, even if Phillips and Sony engaged in an agreement not to license the patent at issue for non-Orange-Book purposes, that hypothesized agreement had no bearing on the physical or temporal scope of the patents in suit, nor did it have anti-competitive effects in the relevant market. Therefore, the asserted agreement between Phillips and Sony did not constitute misuse and cannot justify rendering all of Phillips' Orange Book patents unenforceable.

[08/27] Gen. Protecht Group, Inc. v. Int'l Trade Comm'n
The International Trade Commission's determination that the importation into the United States of certain ground fault circuit interrupters (GFCI) violated section 337 of the Tariff Act of 1930, in issuing limited exclusion orders against the importation of GFCI products from the petitioners and judgment finding that these products infringe the '340 patent is affirmed in part, reversed in part, and remanded where: 1) GPG's 2003 and 2006 FCIs and ELE's 2006 GFCIs do not infringe the '340 patent, because they do not have a "detection circuit" as claimed in the patent; 2) Trimone's 2006 GFCIs and ELE's 2006 GFCIs do not infringe the '340 patent because the "load terminals" of the patent do not include receptacle outlets; 3) GPG's 2006 GFCIs do not infringe the '398 patent because GPG performs the function of the "latching means" in a substantially different way than the structure disclosed in the patent; and 4) the Commission's determination is affirmed in all other respects.

[08/27] Pass & Seymour, Inc. v. Int'l Trade Comm'n.
In plaintiff's suit against various defendants claiming infringement of its patents related to circuit interrupters for use with household electrical appliances, the International Trade Commission's judgment in favor of the defendants is affirmed as, because the accused products at issue here do not meet the "mounting means" limitation as properly construed, and thus do not meet every limitation of the asserted claims, there can be no infringement. Accordingly, Commission's finding of no violation of section 337 of the Tariff Act of 1930 is affirmed.

More...

Labor & Employment Law

[09/02] Weber v.Universities Research Ass'n, Inc.
In plaintiff's suit against her former employer for sex discrimination and retaliation in violation of Title VII, district court's grant of summary judgment in favor of the defendant is affirmed where: 1) plaintiff has waived her discrimination and retaliation arguments under the direct method of proof; and 2) plaintiff has failed to establish a prima facie case of sex discrimination, because even if she does not have to show that she was meeting defendant's legitimate business expectations, defendant is still entitled to summary judgment as she has failed to show that there were similarly situated men who were treated more favorably than she was.

[09/02] Branham v. Gannett Satellite Info. Network, Inc.
In plaintiff's suit under the Family Medical Leave Act (FMLA) against her former employer for being terminated from her job as a receptionist, district court's grant of summary judgment in favor of the employer is reversed and remanded where: 1) the district court erred when it granted summary judgment to defendant based on the submission of negative medical certification indicating that plaintiff could return to work; 2) plaintiff has produced sufficient evidence to create a genuine issue of material fact about her entitlement to FMLA leave, and defendant was not permitted to deny her leave based on the certification requirement when it never properly requested certification or informed her of the consequences of failing to provide the same, as required by Department of Labor regulations.

[09/01] Polycarpe v. E&S Landscaping Serv., Inc.
In consolidated Fair Labor Standards Act (FLSA) actions claiming that during plaintiffs' employment they worked more than forty hours per week and defendant employers failed to pay them either a federally mandated minimum wage, federally mandated overtime pay, or both, summary judgment for defendants is reversed where: 1) if a district court, ruling for a defendant, applied the "coming to rest" doctrine -- for instance, by looking at where defendant bought an item instead of where an item was produced, the court must vacate the judgment for the defendant if there was a question about where the "goods" or "materials" were produced or where they moved; and 2) for the purposes of the FLSA's handling clause, an item will count as "materials" if it accords with the definition of "materials" -- tools or other articles necessary for doing or making something -- in the context of its use and if the employer has employees "handling, selling, or otherwise working on" the item for the employer's commercial (not just any) purposes.

More...

Securities Law

[08/26] Bank of Am., N.A. v. UMB Fin. Servs., Inc.
In an appeal from a series of orders in which the district court declined to compel plaintiff to submit to arbitration and declined to stay litigation pending the outcome of such arbitration, the orders are affirmed where: 1) plaintiff never signed an agreement containing an arbitration clause, and the document plaintiff did sign, the employment agreement, did not incorporate the arbitration clause of the FINRA contracts by reference or otherwise; and 2) the court need not reach the question of waiver since the district court properly determined there was no existing right to arbitration in this case.

[08/20] Lustgraaf v. Behrens
In an action for damages arising out of a Ponzi scheme perpetrated by a registered representative of one defendant and general agent of another, the dismissal of the complaint is affirmed in part where the complaint did not allege the additional facts necessary to demonstrate that defendant actually exercised control over its subsidiary's general operations rather than merely possessing the ability to do so. However, the order is reversed in part where plaintiffs met their burden of alleging falsity under the Private Securities Litigation Reform Act.

[08/20] Schleicher v. Wendt
In a securities-fraud suit against some managers of a large, publicly traded financial-services holding company, district court's conclusion that investors can use the fraud-on-the-market doctrine as a replacement for person-specific proof of reliance and causation in granting the class certification is affirmed as, the district court assured itself that the market for the company's stock was thick enough to transmit defendants' statements to investors by way of the price, and as such, the district court did not commit a legal error, or abuse of discretion, in deciding that the fraud-on-the-market doctrine should not be conscripted to serve some other function.

More...

Trade Secrets

More...