Justia Civil Procedure Opinion Summaries

NCO Financial Systems, Inc. (NCO) entered into a lease agreement with Montgomery Park, LLC (Montgomery Park) for over 100,000 square feet of office space in Baltimore, Maryland. The lease allowed NCO to terminate early after eight years if certain conditions were met. NCO attempted to terminate early, but Montgomery Park claimed the conditions were not satisfied. NCO vacated the premises and stopped paying rent, leading Montgomery Park to send a default notice. NCO then filed a lawsuit seeking a declaratory judgment that it had properly terminated the lease and that the rent was based on misrepresented square footage.The United States District Court for the District of Maryland found in favor of Montgomery Park after a bench trial, awarding it $9,854,566.95 plus ongoing interest. The court also set a schedule for determining Montgomery Park’s claim for costs, fees, and expenses. Montgomery Park filed a motion seeking approximately $3.8 million for these costs, which NCO opposed on several grounds, including the lack of a proper demand for payment and the inclusion of fees for defending against NCO’s initial suit.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court concluded that Montgomery Park made a valid demand for payment when it filed its motion for costs, fees, and expenses on August 24, 2022. The court held that default interest should run only from the date of this demand, not from when the costs were incurred, and remanded the case to recalculate the interest. The court affirmed the district court’s award of costs, fees, and expenses, including those incurred in defending against NCO’s claims and expert witness fees, finding no abuse of discretion or error in the district court’s decisions.The Fourth Circuit affirmed in part, vacated in part, and remanded with instructions to recalculate the default interest. View "NCO Financial Systems, Inc. v. Montgomery Park, LLC" on Justia Law

In September 2020, inmate Garfield Holley, proceeding pro se, sued several officers at Wallens Ridge State Prison under Section 1983. Holley alleged that the officers transported him to a dental appointment in a dog cage and subjected him to subsequent mistreatment. He claimed that this treatment was in retaliation for filing a grievance about a delayed medical procedure. Holley, who has asthma, described being chained in a padlocked dog cage in near-freezing temperatures for over six hours, leading to pneumonia and delayed medical care. He also alleged a pattern of retaliatory treatment against prisoners who complained about their conditions.The United States District Court for the Western District of Virginia dismissed Holley's complaint without prejudice for failing to pay the filing fee, citing the three-strikes rule under the Prison Litigation Reform Act. The court found that Holley had not adequately alleged imminent danger of serious physical injury, as the incidents described occurred approximately two years before the complaint was filed. Holley's motion for reconsideration was denied, and he timely appealed.The United States Court of Appeals for the Fourth Circuit reviewed the case de novo. The court concluded that Holley had adequately pleaded imminent danger of serious physical injury, noting the specificity of his allegations and the ongoing pattern of retaliatory treatment against prisoners at Wallens Ridge State Prison. The court found that Holley's allegations were sufficient to meet the imminent-danger exception to the three-strikes rule. Consequently, the Fourth Circuit reversed the district court's decision and remanded the case for further proceedings. View "Holley v. Combs" on Justia Law

Brooke N. Somers, a resident of Cecil County, Maryland, attended a Board of Education meeting on February 9, 2022, without wearing a mask, contrary to Maryland state emergency regulations. Officer Anthony Devine and John Roush informed her she could not enter without a mask. Somers claimed a medical exemption but was directed to sit in the lobby and watch the meeting via livestream. After causing a disturbance in the lobby and refusing to lower her volume or leave when ordered, Somers was arrested by Officer Devine. She resisted arrest, leading to a minor scuffle. Somers was charged with several offenses, convicted on two counts, but later acquitted on appeal.Somers filed a complaint in the United States District Court for the District of Maryland against multiple defendants, including Officer Devine. The district court dismissed claims against all defendants except Devine, granting him summary judgment on the basis of qualified immunity for all federal-law claims, including retaliatory arrest, unlawful arrest, excessive force, and malicious prosecution.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court held that an objectively reasonable officer could have found probable cause for Somers' arrest, thus entitling Officer Devine to qualified immunity on the retaliatory arrest, unlawful arrest, and malicious prosecution claims. The court also found that the force used by Officer Devine was minimal and reasonable given Somers' resistance, granting him qualified immunity on the excessive-force claims. Consequently, the Fourth Circuit affirmed the district court's judgment. View "Somers v. Devine" on Justia Law

In late 2008, the IRS assessed Arthur and Gigi Stover a significant tax bill, which they could not pay. The Government waited until 2020 to initiate a collection suit, nearly twelve years later. Generally, the Government has ten years to sue for unpaid taxes, but this period can be extended if the taxpayer requests an installment agreement. The IRS records indicated that the Stovers requested such an agreement on December 12, 2008. However, Arthur Stover testified that they did not contact the IRS about a payment plan until 2009 through their CPA.The United States District Court for the Western District of North Carolina granted summary judgment to the Government, finding no genuine issue of material fact regarding the date of the installment agreement request. The court held that the request tolled the statute of limitations, making the Government's collection action timely.The United States Court of Appeals for the Fourth Circuit reviewed the case and found that there was a genuine dispute of material fact regarding the date of the installment agreement request. Arthur Stover's deposition testimony suggested that the request could not have been made until 2009, contradicting the IRS records. The court concluded that summary judgment was improper because the conflicting evidence created a genuine issue of fact that should be resolved by a factfinder.The Fourth Circuit vacated the district court's grant of summary judgment and remanded the case for further proceedings. The main holding was that summary judgment is not appropriate when there is a genuine dispute of material fact regarding the date that dictates the timeliness of the Government's suit. View "United States v. Stover" on Justia Law

Brian Farabee, who suffers from borderline personality disorder, has spent his adult life in hospitals or prison for crimes committed while hospitalized. He filed a lawsuit under 42 U.S.C. § 1983 against Dr. Robert Gardella, Dr. Christy McFarland, and Daniel Herr, alleging violations of his constitutional rights and the Americans with Disabilities Act. Farabee claimed that the defendants denied him clinically recommended treatment, unnecessarily restrained and isolated him, forcibly medicated him, and discriminated against him.The United States District Court for the Western District of Virginia granted summary judgment in favor of the defendants without allowing Farabee to conduct discovery or ensuring he was informed of Federal Rule of Civil Procedure Rule 56’s requirements. The court concluded that there was no material dispute of fact and that the defendants were entitled to summary judgment.The United States Court of Appeals for the Fourth Circuit reviewed the case and found that the district court erred in granting summary judgment before allowing Farabee to conduct discovery. The appellate court emphasized that summary judgment should only be granted after adequate time for discovery and that the district court should have provided Farabee, a pro se litigant, with an opportunity to gather evidence. The Fourth Circuit reversed and vacated the district court’s summary judgment decision and remanded the case for further proceedings. The appellate court also recommended that the district court appoint counsel to assist Farabee in litigating the case due to its complexity and Farabee’s limited ability to conduct discovery on his own. View "Farabee v. Gardella" on Justia Law

Several property management companies advertised their apartment buildings on Facebook, targeting users who are 50 years old or younger. Neuhtah Opiotennione, who is older than 50, did not see these advertisements and claimed that the companies discriminated against her based on her age. She filed a lawsuit seeking a declaratory judgment, a permanent injunction, and damages.The United States District Court for the District of Maryland dismissed Opiotennione’s complaint, ruling that she lacked standing to sue because she had not suffered a concrete and particularized injury in fact. The court found that Opiotennione had not demonstrated how the alleged discrimination personally affected her.The United States Court of Appeals for the Fourth Circuit reviewed the case de novo and affirmed the district court’s decision. The Fourth Circuit held that Opiotennione failed to allege a concrete and particularized injury in fact. The court noted that merely being a member of the disfavored age group did not constitute a particularized injury. Additionally, the court found that Opiotennione did not allege that she was personally denied information or housing opportunities by the defendants, as she had not actively sought information from them. The court also rejected her claims of informational and stigmatic injuries, concluding that she had not demonstrated a personal denial of information or a concrete stigmatic injury. Thus, the Fourth Circuit affirmed the district court’s dismissal of the case for lack of standing. View "Opiotennione v. Bozzuto Management Co." on Justia Law

Jason Wayne Gowen, a pretrial detainee at the Lynchburg Adult Detention Center, was placed in solitary confinement for 125 days after complaining about hot conditions in his cell and encouraging other inmates to do the same. Gowen filed a lawsuit against several correctional officers, alleging violations of his First Amendment rights due to retaliation for his grievances and his Fourteenth Amendment rights for being placed in solitary confinement without due process.The United States District Court for the Western District of Virginia dismissed Gowen’s First Amendment retaliation claim, stating that he failed to show a causal connection between his grievances and the adverse actions taken against him. The court later granted summary judgment to the officers on Gowen’s Fourteenth Amendment due process claim, concluding that he failed to exhaust his administrative remedies as required by the Prison Litigation Reform Act.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court found that Gowen adequately alleged a First Amendment retaliation claim by showing that he engaged in protected activity, faced adverse action, and established a causal connection through temporal proximity and the officers' awareness of his grievances. The court also determined that Gowen did not forfeit his argument regarding the exhaustion of administrative remedies, as his verified complaint contained sufficient evidence of his attempts to use the grievance process and the officers' failure to respond.The Fourth Circuit reversed the district court’s dismissal of Gowen’s First Amendment retaliation claim and vacated the summary judgment on his Fourteenth Amendment due process claim. The case was remanded for further proceedings consistent with the appellate court’s findings. View "Gowen v. Winfield" on Justia Law

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