Justia Civil Procedure Opinion Summaries

David Levine, former CEO of Geostellar Inc., was accused of defrauding and bankrupting the company. Geostellar had a directors and officers insurance policy from Philadelphia Indemnity Company, which began providing Levine's defense. The policy had a $3 million coverage limit. Levine and his wife later filed for personal bankruptcy, which stayed the Geostellar adversary action. The Geostellar Trustee moved to lift the stay to proceed against Levine to the extent of the insurance coverage, admitting that Levine's debt to Geostellar was uncollectable beyond the insurance coverage.The bankruptcy court granted the motion to lift the stay. The Trustees then filed an adversary action for declaratory judgment, seeking to establish that the right to settlement under the policy was an asset of the Levine Bankruptcy Estate, for which the Levine Trustee was the exclusive representative. The bankruptcy court dismissed the action, and the district court affirmed, finding that neither Trustee had standing to sue the insurer.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decision. The court held that the Geostellar Trustee had no standing because West Virginia law did not permit a direct action against the insurer under the circumstances, and the policy only provided coverage to Levine, not Geostellar. The Levine Trustee also lacked standing because any judgment in the Geostellar adversary action would not impact the Levine Bankruptcy Estate, as Levine's debt to Geostellar was discharged and uncollectable beyond the insurance coverage. The court concluded that the right to consent to settlement under the policy was not the property of either Trustee. View "Fluharty v. Philadelphia Indemnity Insurance Co." on Justia Law

The City of Martinsville, Virginia, sued Express Scripts and OptumRx in state court, alleging public nuisance and harm related to the opioid epidemic. The defendants removed the case to federal court under the Class Action Fairness Act, but the district court remanded it back to state court. In 2024, the defendants again removed the case to federal court under the federal-officer-removal statute. The district court granted Martinsville's motion to remand the case to state court.The defendants appealed the remand order before it was mailed to the state court and requested a stay of the remand order pending appeal, citing the Supreme Court's decision in Coinbase, Inc. v. Bielski. The district court denied the stay, interpreting Coinbase narrowly to apply only to orders compelling arbitration. The defendants then sought a stay from the United States Court of Appeals for the Fourth Circuit.The Fourth Circuit granted the stay, holding that the district court was automatically stayed from mailing the remand order once the defendants filed their notice of appeal. The court applied the "Griggs principle," which divests the district court of control over aspects of the case involved in the appeal. The court found that the district court's interpretation of Coinbase was too narrow and that the automatic stay applied to the remand order. The court concluded that the district court lacked the authority to mail the remand order while the appeal was pending. View "City of Martinsville v. Express Scripts, Inc." on Justia Law

Trina Cunningham, an employee of the Baltimore Department of Public Works, was responsible for monitoring water flow at the Patapsco Wastewater Treatment Plant. On June 3, 2019, while inspecting the plant's Grit Facility, Cunningham fell through a metal, grated catwalk that collapsed under her feet, causing her to drown in the wastewater chamber below. Her estate and family members filed a lawsuit against multiple defendants, including the City of Baltimore, various city officials, and several crane servicing companies, alleging negligence and other claims related to her death.The United States District Court for the District of Maryland granted motions to dismiss filed by most of the defendants, including Freeland Hoist & Crane, Inc., but did not address the claims against Crane 1 Services, Inc., and Overhead Crane Service, Inc., who had not filed motions to dismiss. The district court dismissed the entire complaint, despite the unresolved claims against these two defendants.The United States Court of Appeals for the Fourth Circuit reviewed the case and determined that the district court's order was not a final decision because it did not resolve all claims against all parties. The appellate court noted that the district court failed to address the claims against Crane 1 Services and Overhead Crane Services, and thus, the order was not appealable. Consequently, the Fourth Circuit dismissed the appeal for lack of jurisdiction and remanded the case to the district court to adjudicate the remaining claims. View "Estate of Cunningham v. Mayor and City Council of Baltimore" on Justia Law

Plaintiffs, a Maryland LLC and a Missouri nonprofit corporation, alleged that the Maryland State Board of Elections mismanaged state electoral operations in violation of state and federal laws during the 2020 and 2022 general elections. They claimed inaccuracies in voter registration records, excessive error rates in voting systems, improper certification of voting machines, use of uncertified machines, and failure to provide requested audit logs and configuration reports. They sought declaratory and injunctive relief, including the appointment of a Special Master to supervise changes before the November 2024 election.The United States District Court for the District of Maryland dismissed the complaint without prejudice for lack of subject-matter jurisdiction, concluding that the plaintiffs had not alleged injuries sufficiently concrete and particularized to support Article III standing. The court found that the plaintiffs did not satisfy the requirements for organizational standing, as they failed to allege any injury to their organizational activities or to their members that was concrete and particularized. The court also held that the alleged violations of the Maryland Public Information Act did not constitute a redressable injury in fact.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the plaintiffs lacked representational standing to assert claims on behalf of their individual members. The court found that the alleged vote dilution and the possibility that members' ballots were cast blank were generalized grievances that did not constitute concrete, particularized injuries. Additionally, the court held that the plaintiffs did not demonstrate that any of their members made the public records requests, thus failing to establish standing for the alleged violations of the Maryland Public Information Act. Consequently, the appellate court affirmed the dismissal of the complaint and the denial of the motion for injunctive relief as moot. View "Maryland Election Integrity, LLC v. Maryland State Board of Elections" on Justia Law

Plaintiffs, a group of charter-boat operators and trade associations in Maryland, sued the Atlantic States Marine Fisheries Commission to enjoin the Commission’s striped-bass plan. The Commission, formed in 1942, recommends fishery management plans to its member states. Plaintiffs argued that the plan, which included a one-fish limit for charter boats, would significantly harm their businesses. They sought an injunction to prevent the implementation of the plan.The United States District Court for the District of Maryland denied Plaintiffs’ motion for a preliminary injunction. The court found that Plaintiffs likely lacked standing because they were regulated by Maryland, not the Commission. The court noted that even if the Commission’s plan were enjoined, it was unlikely that Maryland would rescind its own regulations, which were stricter than the Commission’s recommendations. The court also found that Plaintiffs did not plausibly state a claim for relief under 42 U.S.C. § 1983, as the Commission is not a “person” under the statute and does not act under “color of state law.”The United States Court of Appeals for the Fourth Circuit reviewed the case and concluded that Plaintiffs lacked standing to sue. The court held that Plaintiffs failed to plausibly allege that Maryland would likely rescind its regulations if the Commission’s plan were enjoined. The court emphasized that Maryland voluntarily adopted the regulations and had the authority to impose stricter measures than those recommended by the Commission. As a result, the court vacated the district court’s order denying the preliminary injunction and remanded the case with instructions to dismiss for lack of jurisdiction. View "Delmarva Fisheries Association, Inc. v. Atlantic States Marine Fisheries Commission" on Justia Law

In June 2015, Dylann Roof shot and killed nine people at Mother Emanuel AME Church in Charleston, South Carolina, including M.P.'s father, Reverend Clementa Pinckney. M.P., a minor, filed a lawsuit against Meta Platforms, Inc. (formerly Facebook, Inc.) and its subsidiaries, alleging that Facebook's algorithm recommended harmful content that radicalized Roof, leading to the murders. M.P. asserted claims of strict products liability, negligence, and negligent infliction of emotional distress under South Carolina law, as well as a federal claim under 42 U.S.C. § 1985(3) for conspiracy to deprive her of her civil rights.The United States District Court for the District of South Carolina dismissed M.P.'s complaint under Federal Rule of Civil Procedure 12(b)(6), concluding that Section 230 of the Communications Decency Act barred her state law tort claims. The court also found that M.P. failed to plausibly allege a claim under 42 U.S.C. § 1985(3).The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that M.P.'s state law tort claims were barred by Section 230 because they sought to hold Facebook liable as a publisher of third-party content. The court also determined that M.P. failed to plausibly allege proximate causation under South Carolina law, as her complaint did not provide sufficient factual foundation linking Roof's Facebook use to his crimes. Additionally, the court found that M.P. forfeited her challenge to the dismissal of her Section 1985 claim by not adequately addressing it in her appellate brief. The court also concluded that any potential claim under 42 U.S.C. § 1986 was barred by the one-year statute of limitations. Thus, the Fourth Circuit affirmed the district court's judgment granting Facebook's motion to dismiss. View "M.P. v. Meta Platforms Inc." on Justia Law

Mountain Valley Pipeline, LLC sought to condemn a 9.89-acre easement on Elizabeth Reynolds' 109-acre farmland in Roanoke County, Virginia, under the Natural Gas Act. The district court granted partial summary judgment and a preliminary injunction for immediate possession to Mountain Valley Pipeline, leaving the issue of just compensation unresolved. Reynolds submitted two expert reports to determine compensation, which the district court excluded, leading to a summary judgment in favor of Mountain Valley Pipeline.The United States District Court for the Western District of Virginia excluded Reynolds' expert reports, citing Rule 71.1(h) and Rule 702. The court found the first report speculative and the second unreliable due to insufficient data. Consequently, the court granted summary judgment to Mountain Valley Pipeline, awarding just compensation based on the higher estimate of the pipeline company's experts.The United States Court of Appeals for the Fourth Circuit reviewed the case and found that the district court erred in its application of Rule 71.1(h) and Rule 702. The appellate court held that the Federal Rules of Evidence should apply identically in eminent domain cases as in other cases, and the district court should not have conflated Rule 71.1(h) with Rule 702. The appellate court also determined that the district court should have made findings of fact and conclusions of law on the record when resolving contested factual issues under Rule 71.1(h). The Fourth Circuit vacated the district court's decision and remanded the case for further proceedings consistent with its opinion. View "Mountain Valley Pipeline, LLC v. 9.89 Acres of Land" on Justia Law

Mountain Valley Pipeline, LLC (MVP) condemned a 0.32-acre access easement on Grace Terry's land in southwestern Virginia to deliver heavy equipment to a section of its pipeline. The key issue in this case is the amount of just compensation MVP must pay Terry for the easement. Terry argued that the easement significantly devalued her land, blocking the best hiking trail and citing recent below-market sales of neighboring properties affected by MVP's actions. The district court excluded Terry's testimony on damages and an expert report she submitted, leading to her appeal.The United States District Court for the Western District of Virginia granted MVP partial summary judgment and a preliminary injunction for immediate possession of the easement. The court excluded Terry's testimony on damages, finding it speculative and without a rational basis. It also excluded the expert report by Dennis Gruelle, applying a heightened admissibility standard and determining contested facts at the evidentiary stage. The court then granted MVP summary judgment, awarding Terry $10,409 in just compensation.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court held that the district court abused its discretion by excluding most of Terry's testimony and the Gruelle Report. The Fourth Circuit found that Terry's personal knowledge of her land and comparable sales were valid bases for her testimony. It also determined that the district court applied erroneous legal principles by using a heightened evidentiary standard for the expert report. The Fourth Circuit vacated the exclusion of the Gruelle Report and reversed the exclusion of most of Terry's testimony, remanding the case for further proceedings consistent with its opinion. View "Mountain Valley Pipeline, LLC v. 0.32 Acres of Land" on Justia Law

Andre Le Doux was driving on Interstate 81 in Virginia when he encountered a sudden traffic standstill due to a torrential downpour. As he braked, a vehicle behind him pushed his van into another vehicle, leaving his van exposed in the left lane. Ervin Worthy, driving a Western Express tractor trailer, saw the heavy rain and braked, but could not stop in time and collided with Le Doux’s van, causing severe injuries to Le Doux.Le Doux sued Worthy for negligence and willful and wanton negligence, and Western Express for vicarious liability and negligent hiring. The United States District Court for the Western District of Virginia excluded expert testimony from Le Doux’s meteorologist and accident reconstructionist due to gaps in radar data and inaccurate GPS timestamps. The court also excluded testimony from Le Doux’s trucking expert, finding it unnecessary for the jury to understand the standard of care for a tractor trailer driver in rainy conditions. Additionally, the court dismissed Le Doux’s negligent hiring claim against Western Express, reasoning that since Worthy was acting within the scope of his employment, the claim was redundant.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court affirmed the district court’s exclusion of the expert testimonies, agreeing that the gaps in data and potential jury confusion justified the decision. The court also upheld the exclusion of the trucking expert’s testimony, finding that the jury could understand the necessary standard of care without it. Finally, the court affirmed the dismissal of the negligent hiring claim, holding that since the jury found Worthy not negligent, Western Express could not be liable for negligent hiring. The Fourth Circuit concluded that the district court did not abuse its discretion in its rulings. View "Le Doux v. Western Express, Inc." on Justia Law

Banorte, a group of five associated entities of the Mexican bank Grupo Financiero Banorte, sued Cartograf S.A. de C.V. (Cartograf Mexico) in the Fourth Civil Court of Mexico City in 2021. Banorte alleged that Cartograf Mexico and its sole administrator, José Páramo Riestra, defaulted on loans and concealed assets. Banorte filed an ex parte application in the Eastern District of Virginia to conduct discovery on Cartograf Mexico’s American subsidiary, Cartograf USA, Inc., under 28 U.S.C. § 1782. The district court granted the application, allowing Banorte to serve Cartograf USA with a subpoena. Cartograf USA moved to quash the subpoena, but the district court denied the motion.The United States District Court for the Eastern District of Virginia granted Banorte’s application for discovery under 28 U.S.C. § 1782, finding that the statutory requirements and discretionary factors set out in Intel Corp. v. Advanced Micro Devices, Inc. weighed in Banorte’s favor. The court allowed Banorte to serve subpoenas on Cartograf USA, seeking documents and deposition testimony related to Cartograf USA’s relationship with Cartograf Mexico and Páramo. Cartograf USA argued that the discovery was not for use in a foreign proceeding and that Banorte’s requests were made in bad faith, but the district court rejected these arguments.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court’s decision. The Fourth Circuit held that Banorte satisfied the statutory requirements of § 1782, including the “for use” requirement, as the requested discovery had a reasonable possibility of being useful in the Mexican civil proceedings. The court also found that the district court did not abuse its discretion in analyzing the Intel factors, including the receptivity of the foreign tribunal and whether the request was an attempt to circumvent foreign proof-gathering restrictions. The Fourth Circuit concluded that the district court’s careful consideration of the factors and its decision to grant the application and deny the motion to quash were appropriate. View "Banco Mercantil Del Norte, S.A v. Cartograf USA, Inc." on Justia Law