Justia Civil Procedure Opinion Summaries

After debtor voluntarily filed for Chapter 11 bankruptcy, the bankruptcy court determined that he was transferring assets and defrauding creditors. The bankruptcy court removed him as the debtor-in-possession and appointed a trustee to administer the estate. Debtor appealed, arguing that the trustee's appointment violated his Thirteenth Amendment right to be free from "involuntary servitude"—because, he said, under the trustee's direction, all of his post-petition earnings would be put into the bankruptcy estate for the benefit of his creditors. The bankruptcy court dismissed debtor's Thirteenth Amendment claim as unripe, and the district court similarly held that debtor could not show an injury-in-fact sufficient to confer Article III standing.The Eleventh Circuit reversed and held that debtor's loss of authority and control over his estate, which he suffered as a result of his removal as the debtor-in-possession, constitutes an Article III-qualifying injury-in-fact that is both traceable to the bankruptcy court's appointment of the trustee and redressable by an order vacating that appointment. Therefore, debtor has standing to pursue his Thirteenth Amendment claim. The court left it to the district court on remand to consider the merits of debtor's arguments. View "Breland v. United States" on Justia Law

The Fifth Circuit joined the Fourth Circuit in holding that the Fair Labor Standards Act preempts redundant state law tort claims for unpaid minimum wages and overtime compensation when the state's law does not provide for minimum wages and overtime compensation. In this case, Mississippi does not have state labor laws governing minimum wage or overtime, so it would be impossible for Employees to state a claim for wage and hour violations under state law independent of the FLSA. Furthermore, it would be impossible for Employees to state a claim under the FLSA because sovereign immunity bars suit against the DOC. The court explained that the state law claims based on violations of the FLSA similarly fail because of preemption. Therefore, the court concluded that dismissal with prejudice was appropriate. The court affirmed all dispositions of the district court. View "Aldridge v. Mississippi Department of Corrections" on Justia Law

Uzuegbunam, a Georgia Gwinnett College student, talked with interested students and handed out religious literature on campus until a campus police officer informed him that campus policy prohibited distributing religious materials outside two areas designated for that purpose. Speaking about religion or distributing religious materials in those areas required a permit. Uzuegbunam obtained a permit and tried to speak in a free speech zone. A campus officer again asked him to stop, saying that people had complained. Campus policy prohibited using the free speech zone to say anything that “disturbs the peace and/or comfort of person(s).” Uzuegbunam complied. Another student decided not to speak about religion because of these events. The students sought injunctive relief and nominal damages. College officials discontinued the challenged policies. The Eleventh Circuit held that the students’ plea for nominal damages could not establish standing, absent a request for compensatory damages.The Supreme Court reversed. A request for nominal damages satisfies the redressability element necessary for Article III standing where a plaintiff’s claim is based on a completed violation of a legal right. To establish Article III standing, the Constitution requires a plaintiff to identify an injury in fact that is fairly traceable to the challenged conduct and to seek a remedy likely to redress that injury. Under common law, a party whose rights are invaded can recover nominal damages without furnishing evidence of actual damages, without a plea for compensatory damages. Nominal damages are not purely symbolic. One dollar may not provide full redress, but the partial remedy satisfies the redressability requirement and constitutes relief on the merits. In addition to redressability, the plaintiff must establish the other elements of standing and satisfy other relevant requirements, such as pleading a cognizable cause of action. View "Uzuegbunam v. Preczewski" on Justia Law

The church holds weekly in-person worship services attended by approximately 80 people. Its pastor suspended these services after he received a March 31, 2020 “Cease and Desist Notice” from the county health department that threatened penalties under Illinois Executive Order 2020-10, issued March 20, 2020, if the church continued to host in-person gatherings of ten or more people. The Plaintiffs sought a preliminary injunction, citing the First Amendment and the Illinois Religious Freedom Restoration Act and alleging violations of their due process rights and that the Order exceeded the governor’s powers.On May 29, months before plaintiffs filed their appellate brief, the governor issued Executive Order 2020-38, which removed the mandate. All subsequent pandemic-related executive orders have expressly exempted religious gatherings from mandatory restrictions.The Seventh Circuit affirmed the denial of a preliminary injunction. While intervening Supreme Court decisions offer a greater prospect for success on the merits of the First Amendment claim than previously expected, they have also indicated that equitable considerations weigh against granting a preliminary injunction at this time. The prospect of irreparable injury to the plaintiffs is very low; the public interest weighs substantially against injunctive relief. The federal procedural due process claim was not presented to the district court. The Eleventh Amendment bars relief against the governor; it may also bar relief against the local defendants. All of the state-law claims are poor candidates for a federal court’s exercise of supplemental jurisdiction. View "Cassell v. Snyders" on Justia Law

When Indiana officials determine that a child is suffering abuse or neglect, they initiate the Child in Need of Services (CHIN) process. Lawyers are automatically appointed for parents but not for children in the CHINS process. The plaintiffs, children in the CHINS process, claimed that they are entitled to counsel. The Seventh Circuit affirmed the dismissal of the suit, citing “Younger” abstention. While declining to decide that Younger would mandate abstention in all CHINS cases, the court reasoned that principles of comity entitle states to make their own decisions. Because children are not automatically entitled to lawyers, as opposed to the sort of adult assistance that Indiana routinely provides, it would be inappropriate for a federal court to resolve the appointment-of-counsel question in any of the 10 plaintiffs’ state proceedings. A state judge may decide to appoint counsel or may explain why counsel is unnecessary. View "Nicole K. v. Stigdon" on Justia Law

Kentucky Governor Beshear’s COVID-19 response included a “Mass Gathering Order” that prevented groups of more than 10 people from assembling for purposes including community, civic, public, leisure, faith-based, or sporting events; parades; concerts; festivals; conventions; fundraisers; and similar activities.” Locations permitted to operate normally included airports, bus and train stations, medical facilities, libraries, shopping centers, or "other spaces where persons may be in transit” and “typical office environments, factories, or retail or grocery stores.” The ban on faith-based gatherings was enjoined in previous litigation.Plaintiffs alleged that the Order, facially and as applied, violated their First Amendment rights to free speech and assembly. While Governor Beshear threatened the plaintiffs with prosecution for holding a mass gathering at the state capitol to express their opposition to his COVID-19-related restrictions, he welcomed a large group of Black Lives Matter protestors to the capitol and addressed those protestors, despite their violation of the Order. The district court preliminarily enjoined the Order's enforcement. Governor Beshear withdrew the Order. The Sixth Circuit held that the withdrawal rendered the appeal moot. To the extent that the plaintiffs claim that a threat of prosecution for their past violations keeps the case alive, the court remanded for the district court to determine whether further relief is proper. View "Ramsek v. Beshear" on Justia Law

A Louisiana law, La. Stat. Ann. 30:16, allows citizen suits to enforce state conservation laws, but any injunction the citizen might obtain must be entered in favor of the Commissioner of Louisiana's Office of Conservation. Plaintiff filed suit contending that this potential state involvement at the end of the litigation precludes diversity jurisdiction in federal court because there is no such jurisdiction when a State is a party. The district court disagreed, held that it had subject matter jurisdiction, and remanded to state court anyway based on Burford abstention.The Fifth Circuit denied the motion to dismiss the appeal for lack of jurisdiction; reversed the remand order; and remanded for further proceedings. The court concluded that it has subject matter jurisdiction over Grace Ranch's suit. The court explained that, despite Grace Ranch's listing of Louisiana in the style of the case, the State is not a proper party because it has not authorized landowners to sue in its name. Furthermore, Grace Ranch's real-party-in-interest argument for state involvement fares no better because Louisiana has only a general interest in the outcome of this suit. The court also concluded that it has appellate jurisdiction to review the district court's abstention-based remand order. Making explicit what was previously implicit in its caselaw, the court reasoned that a discretionary remand such as one on abstention grounds does not involve a removal "defect" within the meaning of 28 U.S.C. 1447(c). Finally, the court weighed the factors for Burford abstention and concluded that abstention is not warranted. View "Grace Ranch, LLC v. BP America Production, Co." on Justia Law

After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount. View "Tercero v. Texas Southmost College District" on Justia Law

The Ninth Circuit reversed the district court's order granting a partial stay under Colorado River Water Conservation District v. United States, 424 U.S. 800 (1976), of three state law claims, in an action brought by the United States alleging that the California State Water Resources Board violated various provisions of the California Environmental Quality Control Act.The panel held that the district court abused its discretion in granting a partial Colorado River stay. The panel explained that partial stays pursuant to Colorado River are permissible only in very limited circumstances, namely when there is strong evidence of forum shopping. In this case, there is little evidence of forum shopping. The panel also concluded that it could not affirm the district court on the basis of Pullman abstention where the Board, which did not cross-appeal, cannot ask the court to affirm on Pullman grounds. The panel reasoned that it would necessarily have to stay the intergovernmental immunity claim, which the district court allowed to proceed. On remand, the panel instructed the district court to allow the United States' claims to proceed, subject to regular issues of justiciability. View "United States v. State Water Resources Control Board" on Justia Law

This case arose from an Idaho Industrial Commission determination denying an application for unemployment benefits. William Wittkopf appealed pro se the Commission’s determination that he was ineligible for unemployment benefits because he voluntarily quit his job without good cause and he willfully made a false statement or willfully failed to report a material fact in his unemployment application. On appeal, Wittkopf challenged the factual findings made by the Commission and argued it violated his right to due process by taking into consideration the fact that he voluntarily terminated his employment approximately two and a half years prior to applying for unemployment benefits. After review, the Idaho Supreme Court concluded: (1) Wittkopf failed to provide a cogent argument on appeal regarding whether his right to due process was violated; (2) the Commission’s determination that Wittkopf voluntarily terminated his employment at Stewart’s Firefighter without good cause and without exhausting all reasonable alternatives was supported by substantial and competent evidence; and (3) the Commission’s determination that Wittkopf willfully made a false statement or willfully failed to report a material fact in order to obtain benefits was supported by substantial and competent evidence. Accordingly, the Commission’s decision and order denying Wittkopf’s application for unemployment benefits was affirmed. View "Wittkopf v. Stewart's Firefighter Food Catering, Inc." on Justia Law