Justia Civil Procedure Opinion Summaries

The Securities and Exchange Commission sued Defendant for trading Corporate Executive Board, Inc. (“CEB”) stock using inside information. The Commission alleged that Defendant aggressively traded CEB stock after he received inside information about a potential merger from co-Defendant, Defendant’s brother-in-law and CEB’s Corporate Controller. At trial, Defendant moved for judgment as a matter of law under Rule 50(a)1 at the conclusion of the Commission’s case. He argued the Commission failed to present evidence that co-Defendant possessed inside information about the merger at the time Defendant began the relevant trading. And if co-Defendant had no such information at that time, Defendant contended, co-Defendant could not have passed it on to Defendant The district court agreed and granted judgment for Defendant.   The Fourth Circuit reversed and remanded. The court explained the right to a trial by jury is enshrined by the Seventh Amendment. And the Federal Rules of Civil Procedure require that juries, not judges, decide cases so long as there is evidence from which a reasonable decision can be made. Here, evidence existed from which a reasonable jury could infer that Defendant engaged in prohibited insider trading beginning on December 9, 2016. View "SEC v. Christopher Clark" on Justia Law

South Carolina law makes it a crime for elementary and secondary school students to act “disorderly” or in a “boisterous manner,”; use “obscene or profane language”; or “interfere with,” “loiter about,” or “act in an obnoxious manner” in (or sometimes near) a school. Four students who had been referred or charged under the disorderly conduct or disturbing schools laws, and a nonprofit organization that advocates for at-risk youth filed a putative class action challenging both laws as unconstitutionally vague. After denying a motion to dismiss, the district court certified one main class and two subclasses under the Federal Rule of Civil Procedure 23(b)(2). The court held that both laws were unconstitutionally vague as applied to elementary and secondary school students, and it permanently enjoined future enforcement of the disorderly conduct law against those students. South Carolina’s Attorney General—appealed, lodging multiple challenges to the district court’s rulings.   The Fourth Circuit affirmed. The court reasoned that the district court committed no abuse of discretion here—not just because the challenged laws are facially invalid as applied to elementary and secondary school students but also because the subclasses demonstrated ongoing injury by the retention of existing records. A delinquency adjudication under South Carolina law may impair a minor’s future practice of law, application for military service, use of a driver’s license, and educational opportunities. Having concluded the laws may not be constitutionally enforced against South Carolina’s elementary and secondary students, the court saw no reason for allowing such continuing injuries to stand. View "Carolina Youth Action Project v. Alan Wilson" on Justia Law

After prevailing in state court on claims that he was fired in retaliation for exercising his state constitutional right to freedom of expression, Plaintiff filed a federal suit alleging the same set of facts but asserting for the first time a First Amendment claim. The district court dismissed Plaintiff’s suit, finding that Defendants’ factual attack showed that the only remedy not barred by sovereign immunity was impossible to grant and that Kling’s claim was prescribed. On appeal, Plaintiff contends that a factual attack on a district court’s subject matter jurisdiction is improper at the pleadings stage and that his state lawsuit interrupted prescription on his newly asserted federal claim because both rely on the same set of operative facts.   The Fifth Circuit concluded that the district court did not err in dismissing Plaintiff’s official capacity claims as barred by sovereign immunity and accordingly affirmed that ruling in the district court’s decision. However, because there are no clear controlling precedents from the Louisiana Supreme Court as to whether prescription on Plaintiff’s federal claim was interrupted by his state action, the court certified to that court to answer the following:In Louisiana, under what circumstances, if any, does the commencement of a suit in a court of competent jurisdiction and venue interrupt prescription as to causes of action, understood as legal claims rather than the facts giving rise to them, not asserted in that suit? View "Kling v. Hebert" on Justia Law

The United States Department of Agriculture (“USDA”) permanently disqualified Euclid Market Inc. (“Euclid Market”) from the Supplemental Nutrition Assistance Program (“SNAP”) after it determined Euclid Market had unlawfully trafficked SNAP benefits. After the USDA issued its final decision, Euclid Market filed an action in federal court under 7 U.S.C. Section 2023, requesting the district court set aside the USDA’s final decision. The district court found Euclid Market did not meet its burden to show the USDA’s action was invalid and entered judgment in favor of the government. Euclid Market appealed. Euclid Market argued that the district court erred by requiring it to produce transaction-specific evidence for every transaction raised by the USDA to meet its burden of proof.   The Eighth Circuit vacated the judgment and remanded. The court agreed with Euclid Market that the transaction-specific standard is erroneous and that the district court applied such a standard in this case. A store’s failure to provide transaction-specific evidence for every transaction does not inherently doom its case. Concluding otherwise would create unnecessary tension with the fundamental principles of evidence. Further, a hardline rule that a store cannot prevail without transaction-specific evidence for each transaction raised by the USDA is inconsistent with the district court’s rightful discretion in weighing all of the relevant, admissible evidence to determine the validity of the disqualification by a preponderance of the evidence. View "Euclid Market Inc. v. United States" on Justia Law

A man was shot and killed in his jewelry shop in 1983, and Decedent was sentenced to death for the crime. Thirty years later, Louisiana vacated Decedent’s conviction because new evidence identified the real murderer. After his release from prison, Decedent filed a Section 1983 suit seeking damages from police officers, prosecutors, and the local government for suppressing, fabricating, and destroying evidence. Decedent died shortly thereafter, leaving Plaintiff as the executrix of his estate. In 2021, the district court dismissed Plaintiff’s amended complaint in its entirety based on Fed. R. Civ. P. 12(b)(6) as to some defendants and 12(c) as to others.   The Fifth Circuit affirmed. The court explained that Plaintiff brought a traditional negligence claim. Louisiana uses the typical reasonable-person standard to assess an individual’s liability for negligence. For the same reasons that Plaintiff did not adequately plead constitutional violations due to the defendants’ suppression, fabrication, and destruction of evidence, she also fails to plead sufficient factual matter to show that they violated the standard of care of a reasonable officer. Accordingly, the court found that the district court thus properly dismissed this claim. View "Armstrong v. Ashley" on Justia Law

Believing Texas intends to enforce its abortion laws to penalize their out-of-state actions, Plaintiffs sued Texas Attorney General Ken Paxton. Paxton moved to dismiss the suit for lack of subject matter jurisdiction. Plaintiffs then issued subpoenas to obtain Paxton’s testimony. Paxton moved to quash the subpoenas, which the district court initially granted. On reconsideration, however, the district court changed course, denied the motion, and ordered Paxton to testify either at a deposition or evidentiary hearing. Paxton petitioned the Fifth Circuit for a writ of mandamus to shield him from the district court’s order.   The Fifth Circuit granted the writ. The court held that the district court clearly erred by not first ensuring its own jurisdiction and also by declining to quash the subpoenas. The court held that the district court committed a “clear abuse of discretion” by finding that exceptional circumstances justified ordering Paxton to testify. Paxton has therefore shown a clear and indisputable right to relief. Further, the court explained that because mandamus is a remedy of last resort, the writ cannot issue unless the petitioner has no other adequate means of obtaining the relief he seeks. Here, not only has Paxton sought the writ, but he has also filed a separate interlocutory appeal. Plaintiffs argued that this appeal is an adequate alternative avenue for relief, making the writ inappropriate. In re FDIC controls here because Plaintiffs have moved to dismiss Paxton’s appeal for lack of jurisdiction. Paxton’s only remaining source of relief is the writ. Without it, he will be compelled either to submit to testifying or risk contempt charges for violating the court’s order. View "In Re: Ken Paxton" on Justia Law

WinRed, a “conduit” political action committee (PAC), centralizes donations to Republican-affiliated candidates and committees. WinRed helps them set up a WinRed.com webpage where donors contribute. WinRed collects and distributes the earmarked contributions. WinRed.com’s technical and maintenance services are at least partly performed by a separate entity, WinRed Technical Services, LLC (WRTS). The relationship between WinRed and WRTS is not clear, but the Eighth Circuit accepts WinRed’s affidavit that it operates exclusively in the domain of federal elections. The district court dismissed WinRed, Inc.’s request for a declaratory judgment and preliminary injunction preventing the Attorneys General from (1) investigating WinRed’s activities with respect to contributions; and (2) bringing a deceptive-practice action against it for those activities.”   The Eighth Circuit affirmed. The court explained that WinRed gives two reasons to look beyond the statutory text. Neither succeeds. The court held that WinRed errs from the start by attacking a disclaimer mandate where none exists. Minnesota’s consumer-protection law prohibits deceptive practices, and federal law does not preempt Minnesota’s enforcing it against WinRed. Because an enforceable state law underlies General Ellison’s investigation, the investigation may proceed. View "WinRed, Inc. v. Keith Ellison" on Justia Law

Six months after United States and global health authorities declared COVID-19 a public health emergency, the city of Seattle (City) passed an ordinance (Seattle Ordinance 126094) authorizing hazard pay for certain workers who delivered food to consumers’ homes. By that time, Governor Inslee had issued stay-at-home orders requiring Washingtonians to leave home only for the most essential of trips. Among some of the conditions in the ordinance were that food delivery network companies could not reduce workers’ compensation or otherwise limit their earning capacity as a result of the ordinance, and they were prohibited from reducing the areas of the City they served or to pass on the cost of the premium pay to customers’ charges for groceries. The Washington Food Industry Association and Maplebear Inc., d/b/a Instacart, challenged the ordinance, seeking a declaration invalidating the ordinance on statutory and state and federal constitutional grounds. The trial court dismissed the statutory claim under chapter 82.84 RCW but permitted all remaining claims to proceed. After review of the limited record, the Washington Supreme Court affirmed in part and reversed in part: (1) affirming dismissal of the 82.84 RCW claim; (2) reversing dismissal of the equal protection claim; and (3) reversing the trial court’s dismissal of the privileges and immunities claim. The Court affirmed in all other respects and remanded for further proceedings. View "Wash. Food Indus. Ass'n v. City of Seattle" on Justia Law

Plaintiff sued Defendants under the Truth in Lending Act ("TILA"), claiming that Defendant violated TILA because it did not provide him those disclosures. The question in this case was whether Plaintiff had Article III standing to pursue his claim, which turns on whether Plaintiff's injuries are traceable to Defendant's failure to disclose.The Eleventh Circuit found that Plaintiff's injuries were traceable to Defendant's failure to disclose and thus reversed the district court's finding to the contrary. The court, however, expressed no opinion about the merits of Plaitniff's claim. View "Gary Walters v. Fast AC, LLC, et al" on Justia Law

Plaintiffs, individuals who own apartment buildings in New York City subject to the relevant Rent Stabilization Law (RSL), appealed from a district court judgment. The court dismissed the complaint pursuant to Rule 12(b)(6). Plaintiffs alleged that the RSL, as amended in 2019, effected, facially, an unconstitutional physical and regulatory taking. The District Court held that Plaintiffs-Appellants failed to state claims for violations of the Takings Clause.   The Second Circuit affirmed. The court reasoned that Here, the RSL is part of a comprehensive regulatory regime that governs nearly one million units. Like the broad public interests at issue in Penn Central, here, the legislature has determined that the RSL is necessary to prevent “serious threats to the public health, safety and general welfare.” Further, the Landlords urged the Court to consider two additional, less commonly cited Penn Central factors that, they argued, tend to show that the RSL results in a regulatory taking: noxious use and a lack of a reciprocal advantage. Even assuming for the sake of argument that these factors apply, the claims fail. View "Community Housing Improvement Program v. City of New York" on Justia Law