Justia Civil Procedure Opinion Summaries

After the State of Hawaii filed suit against several pharmaceutical companies in state court for allegedly deceptive drug marketing related to the medication Plavix, the companies turned to federal court, seeking an injunction against the state court litigation based on a violation of their First Amendment rights.The Ninth Circuit agreed with the district court that the state court litigation is a quasi-criminal enforcement proceeding and that Younger v. Harris, 401 U.S. 37 (1971), bars a federal court from interfering with such a proceeding. The panel explained that, even though the state proceeding is being litigated by private counsel, it is still an action brought by the State of Hawaii. The panel stated that what matters for Younger abstention is whether the state proceeding falls within the general class of quasi-criminal enforcement actions—not whether the proceeding satisfies specific factual criteria. Looking to the general class of cases of which this state proceeding is a member, the panel concluded that Younger abstention is appropriate here. In this case, the State's action has been brought under a statute that punishes those who engage in deceptive acts in commerce, and the State seeks civil penalties and punitive damages to sanction the companies for their allegedly deceptive labeling practices. Because the companies' First Amendment concerns do not bring this case within the scope of Younger's extraordinary circumstances exception, they have no bearing on the application of Younger. Accordingly, the panel affirmed the district court's dismissal of the action. View "Bristol-Myers Squibb Co. v. Connors" on Justia Law

Plaintiff filed suit alleging that Godiva chocolate stores had printed too many credit card digits on hundreds of thousands of receipts over the course of several years, and pointed out that those extra numbers were prohibited under a federal law aimed at preventing identity theft. After the parties agreed on a class settlement, the Supreme Court issued Spokeo, Inc. v. Robins, which held that a party does not have standing to sue when it pleads only the bare violation of a statute.The Eleventh Circuit held that plaintiff has no standing because he alleged only a statutory violation and not a concrete injury. In this case, plaintiff alleged that a cashier handed him a receipt containing some of his own credit card information printed on it. Although the receipt violated the law because it contained too many digits, the court explained that plaintiff has alleged no concrete harm or material risk of harm stemming from the violation. Therefore, this amounts to nothing more than a "bare procedural violation, divorced from concrete harm." Consequently, the court cannot evaluate the fairness of the parties' settlement and vacated the district court's order approving it. View "Muransky v. Godiva Chocolatier, Inc." on Justia Law

Tennessee voters must apply to vote absentee. The county administrator of elections determines whether the voter has established eligibility to vote absentee, and compares the signature of the voter on the request with the signature on the voter’s registration record. Voters who qualify to vote absentee receive a ballot, an inner envelope and an outer envelope, and instructions. The inner envelope has an affidavit; the voter must verify that he is eligible to vote in the election. The ballot must be received no later than when the polls close. Upon receipt by mail of the absentee ballot, the administrator "shall open only the outer envelope and compare the voter’s signature on the [affidavit] with the voter’s signature" on the registration record. If the administrator determines the signatures do not match, the ballot is rejected; the voter is “immediately” notified in writing. Voters who are concerned that their absentee ballot might be rejected may cast a provisional ballot before being notified of a rejection.The Sixth Circuit affirmed the denial of a preliminary injunction to prohibit the enforcement of the signature verification procedures. The plaintiffs cannot cite with certainty or specification any past erroneous rejection of an absentee ballot; their speculative allegations of harm are insufficient to establish standing. The plaintiffs have not demonstrated that anyone whose ballot may be erroneously rejected will ultimately be unable to vote, either absentee or by provisional ballot; there is no evidence that anyone’s constitutional rights are likely to be infringed. View "Memphis A. Philip Randolph Institute v. Hargett" on Justia Law

President Trump filed suit against the District Attorney of the County of New York, alleging that a grand jury subpoena issued on August 29, 2019 by the District Attorney to Mazars USA, LLP, the President's accounting firm, is overbroad and was issued in bad faith. The subpoena directed Mazars to produce financial documents—including tax returns—relating to the President, the Trump Organization, and affiliated entities, dating back to 2011. The district court granted the District Attorney's motion to dismiss the second amended complaint based on failure to state a claim under Federal Rule of Civil Procedure 12(b)(6).The Second Circuit affirmed, finding that the claim of overbreadth is not plausibly alleged for two interrelated reasons. First, the court concluded that the President's bare assertion that the scope of the grand jury's investigation is limited only to certain payments made by Michael Cohen in 2016 amounts to nothing more than implausible speculation. Second, the court concluded that, without the benefit of this linchpin assumption, all other allegations of overbreadth—based on the types of documents sought, the types of entities covered, and the time period covered by the subpoena, as well as the subpoena's near identity to a prior Congressional subpoena—fall short of meeting the plausibility standard. Finally, the court concluded that the President's allegations of bad faith fail to raise a plausible inference that the subpoena was issued out of malice or intent to harass. The court considered the President's remaining contentions on appeal and found no basis for reversal. The court ordered an interim stay of enforcement of the subpoena under the terms agreed to by the parties. View "Trump v. Vance" on Justia Law

The Supreme Court affirmed the decision of the court of appeals reversing the judgment of the chancery court dismissing this complaint against a Texas company for lack of personal jurisdiction, holding that the exercise of specific personal jurisdiction was constitutionally permissible.The Texas company contracted with a Tennessee civil engineering company for services related to the potential construction of a railcar repair facility in Texas. When the Texas company failed to pay in full, the Tennessee company filed a breach of contract action in Tennessee. The chancery court dismissed the complaint, concluding that the Texas company lacked the minimum contacts necessary for the exercise of personal jurisdiction and that requiring the Texas company to litigate in Tennessee would be unreasonable and unfair. The court of appeals reversed. The Supreme Court affirmed, holding (1) the Tennessee company established a prima facie case for the valid exercise of personal jurisdiction over the Texas company; and (2) the exercise of jurisdiction was fair and reasonable. View "Crouch Railway Consulting, LLC v. LS Energy Fabrication, LLC" on Justia Law

In 2017, Claude Wilson Geer IV filed a request with Phoebe Putney Health System, Inc. under the Open Records Act seeking the release of minutes of its board meetings held between January 2008 and December 2017. The following day, Phoebe Putney denied the request, asserting that it was not subject to the Open Records Act and that its minutes and other documents and records were not “public records” within the meaning of the Act. Geer filed suit against Phoebe Putney in superior court seeking an injunction compelling the release of the records he had requested and other relief. Along with its answer, Phoebe Putney filed a counterclaim for attorney fees under OCGA 50-18-73(b). In response, Geer filed a motion to strike Phoebe Putney’s counterclaim for attorney fees under Georgia’s anti-SLAPP statute, asserting that the counterclaim was nothing more than an effort to chill his rights to petition the government and to free speech. Following a hearing, the trial court denied Geer’s motion to strike, concluding that he had not made a prima facie showing that the anti-SLAPP statute applied to the counterclaim. The trial court did not consider the merits of Phoebe Putney’s claim for attorney fees. The Court of Appeals later affirmed the trial court’s judgment, concluding that the anti-SLAPP statute did not apply to an Open Records Act defendant’s claim for attorney fees because the anti-SLAPP statute “does not preclude a party defending a lawsuit from preserving its right to seek attorney fees and expenses if the lawsuit later is determined to lack substantial justification.” After review, the Georgia Supreme Court affirmed the appellate court's judgment. View "Geer v. Phoebe Putney Health System, Inc." on Justia Law

Freed owed $735.43 in taxes ($1,109.06 with penalties) on his property valued at about $97,000. Freed claims he did not know about the debt because he cannot read well. Gratiot County’s treasurer filed an in-rem action under Michigan's General Property Tax Act (GPTA), In a court-ordered foreclosure, the treasurer sold the property to a third party for $42,000. Freed lost his home and all its equity. Freed sued, 42 U.S.C. 1983, citing the Takings Clause and the Eighth Amendment.The district court first held that Michigan’s inverse condemnation process did not provide “reasonable, certain, and adequate” remedies and declined to dismiss the suit under the Tax Injunction Act, which tells district courts not to “enjoin, suspend or restrain the assessment, levy or collection of any tax under State law where a plain, speedy and efficient remedy may be had" in state court, 28 U.S.C. 1341. The court reasoned that the TIA did not apply to claims seeking to enjoin defendants from keeping the surplus equity and that Freed was not challenging his tax liability nor trying to stop the state from collecting. The TIA applied to claims seeking to enjoin enforcement of the GPTA and declare it unconstitutional but no adequate state court remedy existed. The court used the same reasoning to reject arguments that comity principles compelled dismissal. After discovery, the district court sua sponte dismissed Freed’s case for lack of subject matter jurisdiction, despite recognizing that it was “doubtful” Freed could win in state court. The Supreme Court subsequently overturned the "exhaustion of state remedies" requirement for takings claims.The Sixth Circuit reversed without addressing the merits of Freed’s claims. Neither the TIA nor comity principles forestall Freed’s suit from proceeding in federal court. View "Freed v. Thomas" on Justia Law

Petitioners' real property was sold at a delinquent tax sale. They filed an action in circuit court to challenge the sale, and all parties consented to have the case referred to a special referee for trial. Petitioners agreed to allow defendants (respondents here) to present their evidence first. After the testimony of one witness, the county's tax collector, defendants moved to approve the sale. The special referee granted the motion. Petitioners objected, arguing they were not permitted to give their factual presentation of the case. The special referee denied the motion, and the court of appeals affirmed. On appeal to the South Carolina Supreme Court, petitioners argued they were deprived of due process, including the right to be heard and the right to present witnesses and other evidence. The Supreme Court granted the petition, dispensed with briefing, reversed the court of appeals, and remanded to the circuit court for a new trial. "The special referee made factual findings and issued judgment in the middle of a trial after hearing from only one witness. ... The law ... does not permit a court to issue judgment against a party before giving that party an opportunity to present evidence in support of her position." View "Halsey v. Simmons" on Justia Law

Defendant the City of Tulsa (City), passed an ordinance creating a tourism improvement district that encompassed all properties within City which had hotels or motels with 110 or more rooms available for occupancy. Plaintiff-appellee Toch, LLC owned Aloft Downtown Tulsa (Aloft) with 180 rooms. Toch petitioned for a declaratory judgment that the ordinance was invalid for a variety of reasons, including that the district did not include all hotels with at least 50 rooms available. The court granted summary judgment to Toch based on its determination that City exceeded the authority granted in title 11, section 39-103.1. The question before Oklahoma Supreme Court was whether section 39-103.1 granted authority to municipalities to limit a tourism improvement district to a minimum room-count of a number larger than 50. To this, the Court answered in the affirmative, reversed the trial court, and remanded for further proceedings. View "Toch, LLC v. City of Tulsa" on Justia Law

The Eleventh Circuit dismissed defendant's appeal of the district court's order that he claims denied him qualified immunity. The court held that the order is not appealable because the district court did not enter an appealable order denying defendant qualified immunity, but instead dismissed the complaint and granted plaintiffs leave to amend it. Therefore, a different finality rule applies: an order dismissing a complaint for leave to amend within a specified time becomes a final judgment if the time allowed for amendment expires. In this case, defendant filed his notice of appeal two days before the order granting plaintiffs leave would become final and there is no later judgment that could have cured defendant's premature notice of appeal. Therefore, defendant did not appeal from a final order of the district court and the court lacked jurisdiction under 28 U.S.C. 1291 over the appeal. View "Fuller v. Carollo" on Justia Law