Articles Posted in US Court of Appeals for the Sixth Circuit

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In 1990, Stan and Bara Jurcevic opened an account at the St. Paul Croatian Federal Credit Union (SPCFU). The National Credit Union Administration Board (NCUAB) charters and insures credit unions, 12 U.S.C. 1766, and can place a credit union into conservatorship or liquidation. From 1996-2010, Stan obtained $1.5 million in share-secured loans from SPCFU. Federal auditors discovered that SPCFU’s COO had been accepting bribes in exchange for issuing loans and disguising unpaid balances. SPCFU had $200 million in unpaid debts. NCUAB placed SPCFU into conservatorship and eventually liquidated its assets. NCUAB alleged that Jurcevic failed to disclose a $2,500,000 loan from PNC and an impending decrease in his income; and that he planned to use the loan funds to save his company, Stack. PNC obtained a $2,000,000 judgment against Jurcevic and Stack. NCUAB sued the Jurcevics and Stack and obtained an injunction, freezing the Jurcevics’ and Stack’s assets, except for living expenses. The district court dismissed claims of fraud, conspiracy, and conversion as time-barred and dismissed claims against Bara and Stack as a matter of law. Jurcevic appealed and filed for Chapter 7 bankruptcy. The Board cross-appealed and intervened in the Chapter 7 proceedings. The Sixth Circuit affirmed the asset freeze; the court properly employed the preliminary injunction factors. The court reversed the dismissals because the court did not consider the date of the NCUAB’s appointment and the date of discovery as possible accrual dates for the limitations statute. View "National Credit Union Administration Board v. Jurcevic" on Justia Law

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Cummings worked for the Greater Cleveland Regional Transit Authority for 27 years. She alleges the Authority paid her less than her male colleagues and refused to promote her when she complained about the disparity. She filed suit. The parties entered a settlement on February 4, 2015. The Authority agreed to pay Cummings $45,000 and to suspend her for a six-month period at a pay rate of $600 per month. For 18 months, Cummings could exhaust her paid leave at her regular salary. If Cummings did not obtain other public sector employment with corresponding state retirement benefits, the Authority would again place her on a six-month suspension at $600 per month through January 31, 2017, or the first date she became eligible to retire with 30 years of service credit. Cummings released the Authority from all claims. On July 15, 2016, Cummings asked the Ohio Public Employees Retirement System to calculate her retirement service credit and learned that she would not accumulate additional retirement credit under the settlement because the payments did not count as “earnable salary,” Cummings sought to vacate the judgment and reinstate her complaint. The Sixth Circuit affirmed rejection of her motion as time-barred under Civil Rule 60(b)(1), which permits motions to vacate in the event of “mistake, inadvertence, surprise, or excusable neglect” filed within one year of the judgment. The one-year bar also applies in cases of “fraud ... misrepresentation, or misconduct by an opposing party.” View "Cummings v. Greater Cleveland Regional Transit Authority" on Justia Law

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Martinez was convicted of distribution of controlled substances, mail fraud, wire fraud, health care fraud, and health care fraud resulting in the death of patients. He was sentenced to life imprisonment. The Sixth Circuit affirmed. Martinez filed, pro se, a 628-page motion to vacate his sentence under 28 U.S.C. 2255. The district court granted a motion to strike because the motion based on the 20-page limit in Northern District of Ohio Local Rule 7.1. The court later dismissed Martinez’s case with prejudice. The Sixth Circuit remanded to allow Martinez to re-file a compliant motion. Martinez filed a new motion, 23 pages long and accompanied by two letters and a 628-page affidavit. The court granted the government’s renewed motion to strike but gave Martinez an opportunity to file a compliant motion. Martinez did not timely re-file. The court dismissed the action. The Sixth Circuit affirmed. The district court correctly applied Local Rule 7.1. Section 2255 motions can be considered civil in nature but even if such proceedings are more criminal in nature, Federal Rule of Criminal Procedure 57 allows district courts to apply local rules if the litigant has notice. Martinez clearly had notice. Local Rule 7.1 is not inconsistent with any provision of section 2255. View "Martinez v. United States" on Justia Law

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The Tennessee Republican Party, the Georgia Republican Party, and the New York Republican State Committee challenged the legality of 2016 amendments to rules proposed by the Municipal Securities Rulemaking Board (MSRB) that are “deemed to have been approved” by the Securities and Exchange Commission (SEC), 15 U.S.C. 78s(b)(2)(D). The rules arose out of concern “that brokers and dealers were engaging in a variety of ethically questionable practices in order to secure underwriting contracts,” and are intended to limit pay-to-play practices in the municipal securities markets. The amendments limit the campaign activities of persons who advise city and state governments on issuing municipal securities. The Sixth Circuit dismissed because the plaintiffs failed to establish their standing to challenge the amendments. There was no “self-evident” injury to the plaintiffs and only limited information on the number of persons possibly affected by the amendments. At most, there were approximately 713 registered non-dealer municipal advisory firms in the United States that would be affected by the Amendments, but it is unclear how many municipal advisor professionals are associated with these firms, let alone the likelihood that they would donate to plaintiffs if not for the Amendments. It is unknown whether the Amendments have hindered individual candidates who are members of the plaintiff organizations. View "Georgia Republican Party v. Securities & Exchange Commission" on Justia Law

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Matovski, a UPS operations manager who has a disability, filed an Equal Employment Opportunity Commission (EEOC) charge, claiming that UPS discriminated and retaliated against him in violation of the Americans with Disabilities Act, 42 U.S.C. 12112(d). Matovski claims that UPS published confidential medical information about him and other employees on its intranet page. The EEOC investigation resulted in a subpoena that requested information about how UPS stored and disclosed employee medical information. UPS opposed the subpoena, claiming that the requested information was irrelevant to Matovski’s charge. The district court granted an application to enforce the subpoena. The Sixth Circuit affirmed. The information that the EEOC requested “relates to unlawful employment practices” covered by the ADA. UPS has not shown that the subpoena is burdensome in any material way. View "Equal Employment Opportunity Commission v. United Parcel Service,Inc." on Justia Law