Justia Civil Procedure Opinion Summaries

American Fidelity Assurance Company sued the Bank of New York Mellon (“BNYM”) for claims arising from BNYM’s conduct as Trustee of a trust holding mortgage-backed securities owned by American Fidelity. BNYM did not assert a personal jurisdiction defense in its first two motions to dismiss or in its answer. In its third motion to dismiss, BNYM argued it was not subject to general jurisdiction in Oklahoma. The district court denied the motion, concluding BNYM had waived the defense by failing to raise it in prior filings. BNYM challenges that decision in an interlocutory appeal. Finding no reversible error, the Tenth Circuit affirmed. View "American Fidelity Assurance v. Bank of New York Mellon" on Justia Law

Debtor-Appellant Nathan Welch appealed a district court’s order denying his motion for judgment on the pleadings and determining that a default judgment was nondischargeable in bankruptcy. This case arose from the failure of the Talisman project, a high-end real estate development project in Wasatch County, Utah. Appellee Robert Tripodi was one of these investors, eventually putting $1 million into Talisman. To secure Tripodi’s investment, Welch issued three promissory notes to Capital Concepts, which in turn, assigned the notes to Tripodi. Welch ultimately defaulted on the notes. In January 2009, Tripodi filed a complaint against Mr. Welch in federal district court, alleging violations of state and federal securities laws. For seven months, Welch did not respond. In March 2010, Tripodi filed a motion for entry of default. The court granted the motion for entry of default and issued an order to show cause as to why a default judgment should not be entered. Receiving no response, the district court entered an order granting the entry of default judgment against Welch. Welch filed a voluntary petition for Chapter 7 bankruptcy in August 2011. Nearly two years later, Tripodi sought relief from the automatic stay. In his defense, Welch opposed Tripodi's proof of damages and costs, and attempted to have the default judgment set aside. The district court denied Welch's request to set aside the judgment, ruling the judgment was nondischargable. Finding no reversible error on the district court's judgment, the Tenth Circuit affirmed. View "Tripodi v. Welch" on Justia Law

Sue Ann Apolinar hired a guide for a family adventure in the Colorado Rockies, which included an overnight rafting and camping excursion on a popular stretch of the Arkansas River running through Brown’s Canyon. While maneuvering around a rapid known locally as "Seidel’s Suck Hole," the raft capsized. Apolinar was swept into a logjam and drowned. Her son, plaintiff-appellant Jesus Espinoza, Jr., brought a lawsuit against the rafting company alleging negligence per se and fraud (and other claims no longer in dispute). The company moved for summary judgment, arguing that the release Apolinar signed shielded it from liability. The district court agreed and entered judgment in favor of the company. Plaintiff appealed, arguing summary judgment was granted in error. Finding no reversible error, the Tenth Circuit affirmed the district court's decision. View "Espinoza v. Arkansas Valley Adventures" on Justia Law

Ute Tribe member Todd Murray died on April 1, 2007, after a police pursuit. Murray’s parents Debra Jones and Arden Post, on behalf of themselves and Murray’s estate, brought a 13-count complaint in the district court alleging various constitutional violations under 42 U.S.C. 1983, conspiracy to violate civil rights under 42 U.S.C. 1985, and state tort claims. Claims were brought in varying permutations against nine individual law enforcement officers, their employers, and a private mortuary (collectively, “Defendants”). Plaintiffs also sought sanctions against Defendants for alleged spoliation of evidence. The district court granted summary judgment to the mortuary on Plaintiffs’ emotional distress claim, and to all remaining Defendants on all federal claims. The court also dismissed as moot Plaintiffs’ motion for partial summary judgment on the status of Indian lands, and denied Plaintiffs’ motion for spoliation sanctions. The district court declined to exercise supplemental jurisdiction over the remaining state law torts after disposing of the emotional distress claim and the federal claims. Plaintiffs appealed all of these rulings in two appeals. The Tenth Circuit affirmed the district court, but dismissed an appeal of the taxation of costs because it lacked appellate jurisdiction. View "Jones v. Norton" on Justia Law

Virl Birch died when the off-road vehicle in which he was riding flipped over and pinned him to the ground. His surviving family members sued Polaris Industries, the vehicle manufacturer, for strict products liability, negligence, and breach of warranty. Polaris argued there was no evidence Birch’s vehicle was defective at the time of sale, and moved for summary judgment. Well after the deadlines for amending the pleadings and for discovery had passed, Birch’s survivors filed motions: (1) to add new theories to their complaint; and (2) for additional discovery. A magistrate judge denied both motions as untimely, and the district court affirmed the magistrate’s ruling. Based on the allegations in the unamended complaint, the district court then granted summary judgment to Polaris on all claims. The survivors appealed the district court’s denial of their two motions and the grant of summary judgment. But finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "Birch v. Polaris Industries" on Justia Law

Plaintiffs were descendants of the victims of the 1864 Sand Creek Massacre and brought suit for an accounting of the amounts they alleged the U.S. government held in trust for payment of reparations to their ancestors. Because the United States had not waived its sovereign immunity, the Tenth Circuit affirmed the district court’s dismissal of this case for lack of subject matter jurisdiction. View "Flute v. United States" on Justia Law

Plaintiff-appellant Shawron Lounds appealed a district court's order granting summary judgment to her former employer Lincare, Inc. on her claims of a hostile work environment in violation of 42 U.S.C. 1981 and retaliation in violation of Title VII of the Civil Rights Act of 1964. Lounds began working at that office as a customer-service representative in September 2011. She is African-American and, throughout the duration of her employment with Lincare, was the Wichita office’s only African-American employee. The record reflects Lounds recounting specific discussions with her co-workers and direct supervisors that Lounds alleged were racially and culturally insensitive, to the extent that she felt "bombarded" by them. Lounds notified her human resources department. Twenty days after she sent notice of her grievances to HR, she was disciplined for "excessive absenteeism." Lounds believed the discipline was in retaliation for her complaints regarding her co-workers. She would ultimately be fired a little over a year after she was hired. Lincare cited absenteeism as its grounds for termination. After the close of discovery and a full round of briefing, the district court granted summary judgment to Lincare. The court first determined that no reasonable jury could have found the alleged race-based harassment sufficiently severe or pervasive to sustain a hostile work environment claim under section 1981. It then opined, concerning the retaliation claim that “the alleged retaliatory actions against [Ms. Lounds] either were not ‘materially adverse’ or were not caused by [her] protected activity.” The Tenth Circuit reversed in part, finding Lounds carried her burden on summary judgment to create a jury question relating to whether the alleged harassment was sufficiently pervasive or severe. Further, the Court concluded the district court erred in granting summary judgment to Lincare on the hostile work environment claim. The Court concluded the district court did not err in granting summary judgment to Lincare on the retaliation issue. The case was remanded for further proceedings. View "Lounds v. Lincare" on Justia Law

Plaintiffs Delbert Soseeah, Maxine Soseeah and John Borrego filed this action against defendants Sentry Insurance, Dairyland Insurance Company, Peak Property and Casualty Insurance Company, and Viking Insurance Company of Wisconsin (collectively Sentry) claiming, in part, that Sentry failed to timely and properly notify them and other Sentry automobile insurance policyholders of the impact of two New Mexico Supreme Court decisions regarding the availability of uninsured and underinsured motorist coverage under their respective policies. The complaint alleged that Delbert Soseeah, after being injured in a motor vehicle accident, made a claim for UM/UIM benefits under two policies of automobile insurance issued by Sentry to Mrs. Soseeah. According to the complaint, Mrs. Soseeah “never executed a valid waiver of UM/UIM coverage under the” two policies and, consequently, Mr. Soseeah “demanded that . . . Sentry reform” the two policies “to provide stacked uninsured/underinsured motorist coverage limits equal to the limits of the liability coverage on each of the vehicles covered by the” policies pursuant to the two New Mexico Supreme Court decisions. Sentry purportedly refused to reform the policies and rejected Mr. Soseeah’s claim for UM/UIM benefits. The complaint alleged that Sentry, by doing so, violated New Mexico’s Unfair Practices Act (UPA), violated a portion of New Mexico’s Insurance Code known as the Trade Practices and Frauds Act (TPFA), breached the implied covenant of good faith and fair dealing, and breached the terms of the two policies. The district court granted plaintiffs’ motion for class certification. Sentry subsequently sought and was granted permission to appeal the district court’s class certification ruling. Because plaintiffs failed to establish that all members of the general certified class suffered the common injury required by Rule of Civil Procedure 23(a)(2), the Tenth Circuit concluded that the district court abused its discretion in certifying the general class. Because the district court’s certification ruling did not expressly address the Rule 23 factors as they applied to each of the identified subclasses, the Court did not have enough information to determine whether the district court abused its discretion in certifying two subclasses. Consequently, the Court directed the district court on remand to address these issues. View "Soseeah v. Sentry Insurance" on Justia Law

In 2012, appellant Charles D. Leone II resigned his position as a principal of Madison Street Partners, LLC (“MSP”). Pursuant to the terms of MSP’s Operating Agreement, fellow principals Steven Owsley and Drew Hayworth elected to buy Leone’s interest in MSP. The agreement required the purchase price to be set at fair market value, as determined in good faith by MSP’s managers, Owsley and Hayworth. After receiving valuations from two independent valuation firms, the Managers proposed a purchase price of $135,850, which Leone rejected. Leone then sued the Managers in federal district court, contending the proposed purchase price was far below market value and asserted claims for breach of contract and breach of the implied covenant of good faith and fair dealing. The Managers moved for summary judgment on both claims, arguing Leone’s claims were barred by their good faith reliance upon the value set by the independent valuation firms. The district court granted the motion. On appeal, Leone argued: (1) the district court misapplied the law regarding express and implied good faith obligations; (2) the district court incorrectly held that bad faith requires a tortious state of mind; and (3) he presented sufficient evidence of bad faith to survive summary judgment. After review, the Tenth Circuit concluded Leone indeed presented sufficient evidence to survive summary judgment: “three different types of ‘good faith’ were at play in this case: the express contractual provision, an implied covenant of good faith, and the statutory safe harbor for good faith reliance on experts’ opinions. Regardless of which one applies, the Managers bore the burden as movants for summary judgment to establish there were no genuine issues of material fact with respect to their defense of good faith reliance on outside valuations. Although the Managers are entitled to a rebuttable presumption of good faith in relying on the outside valuations, Mr. Leone has raised genuine issues of material fact to rebut that presumption. Without the presumption and given the existence of fact issues regarding the Managers’ good faith, we conclude the district court erred in granting summary judgment in favor of the Managers on their affirmative defense.” View "Leone v. Owsley" on Justia Law

Western Union Company and its subsidiary, Western Union Financial Services, Inc. (collectively, Western Union), appealed the district court’s award of $40 million in attorney fees to class counsel after the settlement of a putative class action against Western Union. Plaintiffs filed this putative class action to challenge Western Union’s practice of failing to timely notify customers of failed money transfers and of holding customer money for years while accruing interest and charging administrative fees. While litigation over procedural hurdles to class certification was ongoing, the parties agreed to a settlement of the class claims against Western Union. “Generally, a settling defendant in a class action has no interest in the amount of attorney fees awarded when those fees are to be paid from the class recovery rather than the defendant’s coffers.” Western Union argued on appeal to the Tenth Circuit that it had standing to challenge the attorney-fee award in this case because it claimed it would be injured by a diminution of the Class Settlement Fund (CSF) if Class Counsel was awarded an excessive attorney-fee award. Western Union argued its interest in the CSF (and the potential effect of the attorney-fee award on the size of that fund) established its standing to challenge the fee award. The Tenth Circuit concluded any potential injury to Western Union was too attenuated from the award of attorney fees to Class Counsel to support Western Union’s standing. Because Western Union lacked standing to challenge the attorney-fee award, the Tenth Circuit lacked subject-matter jurisdiction and dismissed the appeal. View "Tennille v. Western Union" on Justia Law