Timlick filed a class action complaint, alleging that after defaulting on a loan, Timlick received a collection letter from a third-party debt collector (NES) that did not comply with section 1812.701(b) of the Consumer Collection Notice law because certain statutorily-required language was not in a type-size that was at least the same as used to inform Timlick of the debt, or 12-point type. NES moved for summary judgment on the basis that it cured the alleged violation within the 15-day period prescribed by section 1788.30(d) and sent a letter to Timlick’s attorney, enclosing a revised collection letter. Timlick did not dispute NES’s facts but argued section 1788.30(d) should not apply. The trial court granted NES summary judgment. The court of appeal reversed. A debt collector that violates the minimum type-size requirement for consumer collection letters can utilize the procedure for curing violations under the Rosenthal Fair Debt Collection Practices Act, but the trial court erred by dismissing the entire putative class action, as this allowed the debt collector to unilaterally “pick off” the named plaintiff and avoid class action litigation. View "Timlick v. National Enterprise Systems, Inc." on Justia Law

Larry Seward worked for Illinois Central Railroad Company from 1961 to 2004. In 2005, Seward settled an asbestosis claim with Illinois Central. He subsequently developed and passed away from anaplastic oligodendroglioma, a type of brain cancer. In 2012, Andrew L. Ward sued Illinois Central on behalf of Seward. Ward alleged that Illinois Central breached its duty of care and failed to provide Seward with a safe place to work. The complaint detailed specific issues with the work environment, including Seward’s exposure to chemicals and hazardous conditions. The complaint alleged that the working environment “caused, in whole or in part,” Seward’s brain cancer. Illinois Central filed a motion for summary judgment based on a previous settlement and release that Seward had entered into with Illinois Central before his death. The trial court granted Illinois Central’s motion for summary judgment. Ward appealed the trial court’s grant of summary judgment. The Mississippi Supreme Court determined there were no remaining issues of material fact, therefore, affirmed the trial court's judgment. View "Ward v. Illinois Central Railroad Company" on Justia Law

This case involved three consolidated interlocutory appeals; each arose from litigation filed by Franklin Collection Service, Inc. (Franklin), against BancorpSouth Bank. Franklin and BancorpSouth had been in litigation for approximately forty months. After Franklin determined that BancorpSouth had failed to file a responsive pleading to the second amended complaint, Franklin applied for and obtained an entry of default by the clerk. Franklin also filed a motion to deem admitted the allegations of the second amended complaint. BancorpSouth filed a motion to set aside the entry of default and a motion for leave to file a responsive pleading to the second amended complaint. The trial court heard each motion and decided to deny Franklin’s motion to deem admitted the allegations of the second amended complaint; to grant BancorpSouth’s motion for leave to file a responsive pleading to the second amended complaint; and to deny BancorpSouth’s motion to set aside the entry of default. Franklin appealed and BancorpSouth cross-appealed. The Mississippi Supreme Court concluded that in light of the colorable defenses presented by BancorpSouth and the lack of prejudice to Franklin, the trial court did not abuse its discretion in allowing BancorpSouth to file an answer to Franklin’s second amended complaint. Therefore, the Court concluded the trial court properly denied Franklin's motion to deem admitted the allegations in the second amended complaint. The Court affirmed two interlocutory orders at issue in Franklin's appeal reversed the order at issue in BancorpSouth's cross-appeal, and remanded this case for further proceedings. View "Franklin Collection Service, Inc. v. BancorpSouth Bank" on Justia Law

Plaintiffs, Jane and her parents, sued two individuals and several entities including and affiliated with the United Church of Christ (UCC) after Jane was sexually assaulted by a youth pastor. Plaintiffs alleged that the First Congregational Church of Dundee (FCCD) and its pastor, James, negligently and willfully and wantonly hired, supervised, and retained FCCD’s director of youth ministries, Plaintiffs amended their complaint twice. All counts of the second amended complaint were dismissed as against FCCD and James. The Illinois Supreme Court affirmed the striking of portions of the plaintiffs’ complaint but reinstated all counts of the complaint. The stricken statements concerned FCCD’s and James’s post-assault actions, which do not support plaintiffs’ claims of an ongoing conscious disregard for Jane’s welfare or a pattern of conduct prior to the assault nor do they make it more likely or less likely that they acted negligently before the assault. The negligent hiring, negligent supervision, and negligent retention counts were reinstated, as were the willful and wanton counts inasmuch as they overlap with the negligent supervision counts but not to the extent they overlap with the negligent retention counts. View "Doe v. Coe" on Justia Law

The American Jobs Creation Act of 2004 authorized the IRS to gather information about tax shelters, 26 U.S.C. 6707A. The IRS requires taxpayers and certain third parties to submit records pertaining to “reportable transaction[s]” as defined by IRS regulations, subject to significant penalties. A “material advisor” who provides material aid to a taxpayer in carrying out reportable transactions and who derives a threshold amount of gross income from that aid, faces similar penalties. A material advisor who fails to maintain a list of taxpayers that he aided in carrying out reportable transactions faces a $10,000 per day penalty. Notice 2016-66 identified “micro-captive transactions” as “transactions of interest,” a subset of reportable transactions that have “a potential for tax avoidance or evasion,” but stated that the IRS “lack[s] sufficient information” to distinguish between those that are lawful and those that are unlawful. Plaintiff, a material advisor to taxpayers engaging in micro-captive transactions, challenged the Notice under the Administrative Procedure Act, 5 U.S.C. 500, and the Congressional Review Act, 5 U.S.C. 801, arguing that it was a legislative rule that required notice-and-comment rulemaking, was arbitrary, and required submission for congressional review. The Sixth Circuit affirmed the dismissal of the complaint as barred by the Anti-Injunction Act, 26 U.S.C. 7421(a) and the tax exception to the Declaratory Judgment Act, 28 U.S.C. 2201, which divest federal district courts of jurisdiction over suits “for the purpose of restraining the assessment or collection of any tax.” The court noted that the IRS does “not have a great history of complying with APA procedures.” View "CIC Services., LLC v. Internal Revenue Service" on Justia Law

The Supreme Court reversed the judgment of the district court declining to enter summary judgment for Appellants on the grounds that the Utah Declaratory Judgment Act requires neighbors objecting to fences that encroach on bridle paths to sue all homeowners whose property is subject to the bridle path easement, rather than just those homeowners who have fences that infringe on the path, holding that no such joinder is required. Appellants brought suit alleging that Appellees - four of approximately one hundred homeowners in Bell Canyon Acres Community - intruded upon bridle paths in the neighborhood for the use of residents, thereby violating the restrictive covenants that apply to the lots in Bell Canyon Acres. Appellants sought a declaratory judgment determining the parties' on the bridle paths and declaring that Appellees were encroaching on the bridle paths. The district court denied Appellants' motion for summary judgment, concluding that Utah Code 78B-6-403(1) required that all homeowners in the community whose property was subject to the restrictive covenants and the bridle path easement (the outsiders) were required to be joined. The Supreme Court reversed, holding that section 403 provided no impediment to the declaratory judgment Appellants sought and that the outsiders did not need to be joined as parties. View "Bell Canyon Acres Homeowners Ass'n v. McLelland" on Justia Law

In a third amended complaint, plaintiff-appellant Luis Shalabi sued defendants-respondents Fontana City Police Officer Jason Perniciaro and others for a deprivation of civil rights (42 U.S.C. 1983). Shalabi alleged that on May 14, 2011, Perniciaro wrongfully shot and killed Muhanad Shalabi, who was Shalabi’s father. Shalabi filed his original complaint on December 3, 2013. The trial court dismissed Shalabi’s lawsuit due to it being filed one day beyond the statute of limitations. Shalabi contends the trial court erred by dismissing his lawsuit. The Court of Appeal determined The California statute for calculating the last day of the statute of limitations provided, “The time in which any act provided by law is to be done is computed by excluding the first day, and including the last, unless the last day is a holiday, and then it is also excluded.” Shalabi’s 18th birthday was the triggering event because that was the first day he could file his lawsuit. Shalabi’s 18th birthday was on December 3, 2011. Excluding that day, the Court found the last day for Shalabi to file his complaint was December 3, 2013. Shalabi filed his complaint on December 3, 2013. Therefore, Shalabi’s complaint was timely. The Court reversed the trial court's judgment. View "Shalabi v. City of Fontana" on Justia Law

Schier represented Capital in a state court suit filed by Longhorn. Capital was hit with a $5-million judgment and landed in bankruptcy. Its Chapter 7 proceedings stayed the Longhorn litigation with post-trial motions pending. Longhorn filed a bankruptcy claim. When Schier filed a claim for Capital’s unpaid legal fees, the bankruptcy trustee countered with a malpractice suit against Schier, which eventually settled. Schier agreed to pay the estate $600,000 and to withdraw its attorney’s fees claim. The bankruptcy court approved this settlement. Schier withdrew its claim. When the trustee filed a final report, Schier alleged that Capital’s right to appeal Longhorn’s state-court judgment qualified as an “asset” that the trustee should have administered or abandoned. The bankruptcy court overruled Schier’s objection, reasoning that Schier should have raised this issue while Schier had a pending fees request and was a “creditor” with “standing.” The district court dismissed an appeal, stating that “[i]n order to have standing to appeal a bankruptcy court order, an appellant must have been directly and adversely affected pecuniarily by the order,” a more demanding standard than Article III standing. The Sixth Circuit affirmed, noting the Supreme Court’s 2014 “Lexmark” decision, which jettisoned the label “prudential standing.” Citing “the post-Lexmark uncertainty about various standing concepts,” the court held that Schier lacked the type of standing that Lexmark did not affect: Article III standing. View "In re Capital Contracting Co." on Justia Law

Appellant Thomas Southon was employed by Oklahoma Tire Recyclers, LLC ("Employer"). In 2016, Southon sustained an injury while on the job and filed a claim for workers' compensation benefits. Employer fired Southon less than a month after he suffered the injury. Southon filed an action alleging Employer terminated him as retaliation for seeking workers' compensation benefits. Southon's petition further requested a declaratory ruling that 85A O.S.Supp. 2013 section 7 was unconstitutional. Employer moved to dismiss the case for lack of jurisdiction, arguing that under section 7 Southon's exclusive, and constitutionally sufficient, remedy was before the Workers' Compensation Commission and not the district court. The district court found 85A O.S.Supp. 2013 section 7 was constitutional, and agreed that the Workers' Compensation Commission had exclusive jurisdiction over Southon's claim and sustained Employer's motion to dismiss. Southon appealed, and this matter was retained and made a companion case to another cause concerning the same statutory provision. The issues presented for the Oklahoma Supreme Court’s review were: (1) whether 85A O.S.Supp. 2013 section 7 unconstitutionally restricted a plaintiff's right to jury trial; (2) whether section 7 denied Southon his right to due process; (3) whether section 7 wrongfully classifies workers' compensation claimants separately from other wrongful termination victims; and (4) whether a Burk tort was available to such plaintiffs in the district court. The Supreme Court concluded Southon's four assignments of error were without merit and affirmed the judgment of the district court. View "Southon v. Oklahoma Tire Recyclers, LLC" on Justia Law

The Supreme Judicial Court vacated the judgment of the district court dismissing Appellant's complaint seeking to be determined a de facto parent of Appellee's adopted child, holding that the district court erred in dismissing this case for lack of standing. The district court dismissed Appellant's complaint for lack of standing. On appeal, Appellant argued that the district court abused its discretion in refusing to hold a hearing to determine disputed facts and in concluding that Appellee's refusal to allow Appellant to adopt the child was dispositive of the issue of whether Appellee acknowledged or behaved as though Appellant was a parent to the child. The Supreme Judicial Court remanded the case, holding that the court's treatment of the single fact of Appellee's refusal to allow Appellant to adopt as dispositive in the standing analysis constituted an error of law, and the court should have held a hearing to determine disputed facts regarding the issue of standing. View "Young v. King" on Justia Law