Justia Civil Procedure Opinion Summaries

Ceska zbrojovka Defence SE (“CZ Czech”) was a firearms manufacturer based in the Czech Republic. To do business in the United States, it had several subsidiaries, including CZ USA, CZ Czech’s Kansas-based subsidiary. Vista Outdoor, Inc. was a Minnesota company that designed, manufactured, and marketed outdoor recreation and shooting products. In November 2018, Vista and CZ Czech entered into an expense reimbursement agreement covering CZ Czech’s potential acquisition of a Vista firearm brand. Under the contract, Vista was obligated to reimburse CZ Czech for certain reasonable expenses in connection with its evaluation and negotiation of the proposed transaction. Even though the sale was not consummated, Vista refused CZ Czech’s subsequent reimbursement demands. CZ USA, not CZ Czech, filed a federal diversity action in the District of Kansas against Vista for breach of contract. The "twist" was that there was no contract between CZ USA and Vista, nor was CZ USA a beneficiary of the contract. CZ Czech, soon realizing the mistake, attempted to amend the complaint under Rule 15 of the Federal Rules of Civil Procedure and substitute itself as the party-plaintiff. The district court declined, finding that the original complaint controlled and that CZ USA, as a non-party to the contract, lacked standing to sue, meaning the court lacked subject-matter jurisdiction over the dispute. To this, the Tenth Circuit concurred and affirmed: the district court lacked subject-matter jurisdiction and correctly dismissed the lawsuit. View "Ceska Zbrojovka Defence SE ("CZ") v. Vista Outdoor" on Justia Law

This appeal centered on claims for securities fraud against Spirit AeroSystems, Inc., and four of its executives. Spirit produced components for jetliners, including Boeing’s 737 MAX. But Boeing stopped producing the 737 MAX, and Spirit’s sales tumbled. At about the same time, Spirit acknowledged an unexpected loss from inadequate accounting controls. After learning about Spirit’s downturn in sales and the inadequacies in accounting controls, some investors sued Spirit and four executives for securities fraud. The district court dismissed the suit, and the investors appealed. "For claims involving securities fraud, pleaders bear a stiff burden when alleging scienter." In the Tenth Circuit's view, the investors did not satisfy that burden, so it affirmed the dismissal. View "Meitav Dash Provident Funds and Pension Ltd., et al. v. Spirit AeroSystems Holdings, et al." on Justia Law

For decades, Johns Manville Corp. ("JM") was the sole domestic manufacturer and supplier of calcium silicate (or “calsil”), a substance used to make thermal pipe insulation. In March 2018, Chase Manufacturing, Inc. (doing business as Thermal Pipe Shields, Inc., or "TPS") challenged JM’s monopoly status by entering the calsil market with a superior and less expensive product. JM responded by threatening distributors that it would not sell to them if they bought TPS’s competing calsil. By August 2021, more than three years after TPS’s market entry, JM retained over 97% of the domestic calsil market. TPS sued under the Sherman Act, alleging that JM had unlawfully: (1) maintained its monopoly; and (2) tied the availability of its insulation products to distributors’ not buying TPS’s calsil. The district court granted summary judgment for JM. Though the Tenth Circuit affirmed some of the district court’s rulings, it held that the district court erred in finding no genuine issues of material fact on whether JM unlawfully maintained its monopoly after TPS’s market entry. The case was remanded for further proceedings. View "Chase Manufacturing v. Johns Manville Corporation" on Justia Law

This case involved Wyoming’s plan to regulate emissions from powerplants within its borders that produce pollutants that contribute to regional haze, reducing visibility in and the aesthetics to national parks and wilderness areas. Wyoming produced a state implementation plan (SIP) in 2011. In a 2014 final rule, the EPA approved the SIP in part (as to Naughton) and disapproved it in part (as to Wyodak). Through a federal implementation plan (FIP), the EPA also substituted its determination of the proper technology to install at Wyodak, replacing Wyoming’s SIP. Wyoming and PacifiCorp petitioned for review, arguing the SIP should be entirely approved and claiming the EPA failed to grant Wyoming the deference required by federal law when it disapproved the Wyodak portion. Several conservation groups also challenged the rule, arguing the Naughton 1 and 2 portion should have been disapproved because the EPA failed to require the best available technology to reduce regional haze in a timely manner. The Tenth Circuit Court of Appeals granted the petition as to Wyodak and vacated that portion of the final rule. The Court found the EPA erred in evaluating the Wyodak portion of the SIP because it treated non-binding agency guidelines as mandatory in violation of the Clean Air Act. The Court remanded that part of the final rule to the agency for further review. But because the EPA properly approved Wyoming’s determination of the best technology for Naughton, the Court denied the petition as to those units and upheld that portion of the final rule. View "Wyoming v. EPA, et al." on Justia Law

Plaintiffs David P. and his daughter L.P. sought to recover health care benefits under a medical plan David P. obtained through his employer. The district court awarded Plaintiffs benefits, determining that the manner in which Defendants processed Plaintiffs’ claims for coverage violated ERISA. The Tenth Circuit Court of Appeals agreed: Defendants’ deficient claims processing circumvented the dialogue ERISA mandates between plan participants claiming benefits and the plan administrators processing those benefits claims. The Court disagreed, however, with the district court as to the appropriate remedy for the violations of ERISA’s claims-processing requirements at issue here. "Rather than outright granting Plaintiffs their claimed benefits, we conclude, instead, that Plaintiffs’ claims for benefits should be remanded to Defendants for proper consideration." The case was remanded to the district court with directions to remand Plaintiffs’ benefits claims to Defendants. View "P., et al. v. United Healthcare Insurance, et al." on Justia Law

The issue this case presented for appellate review centered on the air pollution controls on certain coal-fired power plants in Utah that contributed to regional haze. This haze impaired visibility in national parks and wilderness areas across the United States (known as Class I areas). Following Congress’s direction in the Clean Air Act (the CAA or Act) to regulate regional haze, EPA promulgated the Regional Haze Rule to restore natural background visibility conditions in Class I areas by the year 2064. To comply with the CAA’s regional haze requirements, states with Class I areas, or states releasing emissions that may affect visibility in those areas, had to implement the best available retrofit technology (BART) on certain existing sources of air pollution or, alternatively, adopt measures that achieved greater reasonable progress towards improving visibility than BART. The Act required each state to develop a state implementation plan (SIP) for mitigating emissions that contribute to regional haze. The EPA then reviewed the SIP to determine if it satisfied the Act. EPA twice disapproved Utah’s SIPs addressing visibility-impairing emissions at power plants operated by Respondent-Intervenor PacifiCorp. Eventually, EPA approved Utah’s July 2019 revised SIP. In the Final Rule, EPA endorsed Utah’s decision to adopt an alternative measure instead of BART to control for visibility-impairing emissions at the power plants. Petitioners Heal Utah, National Parks Conservation Association, Sierra Club, and Utah Physicians sought review of the Final Rule. According to Petitioners, EPA abused its discretion by approving Utah’s revised SIP because Utah’s alternative measure did not satisfy the CAA’s national visibility goals. They also argued EPA failed to respond to certain comments Petitioners submitted during the rulemaking process. Finding no abuse of discretion, the Tenth Circuit denied the petition for review. View "Heal Utah, et al. v. EPA, et al." on Justia Law

In 2007, Defendant PHL Variable Insurance Company issued two life-insurance policies to Plaintiff Catholic Charities of Southwest Kansas, Inc. on the lives of Elwyn Liebl and John Killeen. Both policies guaranteed Plaintiff, as their named beneficiary, $400,000 upon the insureds’ death. Between 2013 and 2014, Defendant sent Plaintiff grace notices for both policies and demanded premium payments. Plaintiff believed the demanded premium payments were too high and that the grace notices were defective and untimely under the policies. So Plaintiff did not pay the requested premiums. Because Plaintiff did not pay the requested premiums, Defendant sent cancellation notices, informing Plaintiff that both policies had lapsed. In 2016, the insureds died. Plaintiff sought payment of benefits under both policies. Defendant declined, believing that it terminated Plaintiff’s policies for nonpayment of premiums two to three years earlier. In 2020, Plaintiff sued Defendant in the District of Kansas for failure to pay the death benefits under both policies. Defendant moved to dismiss both claims, arguing that Kansas’s five-year statute of limitations for breach of contract actions bars them. According to Defendant, the statute of limitations began to run in 2013 and 2014 when it informed Plaintiff that it was terminating the policies. In response, Plaintiff asserted that Defendant first breached both insurance contracts when it failed to pay the benefits upon the insureds’ death in 2016 because Defendant never successfully terminated the policies. The district court agreed with Defendant and dismissed Plaintiff’s claims as untimely. The appeal this case presented for the Tenth Circuit's review centered on a question of when the statute of limitations for a breach of contract claim alleging the wrongful termination of a life insurance contract began to run under Kansas law: if the limitations period began when Defendant acted to terminate Plaintiff’s policies, the district court correctly dismissed Plaintiff’s complaint; if the limitations period began when Plaintiff’s death benefits became due, the district court erred. Finding the district court did not err in dismissing Plaintiff's claims, the Tenth Circuit affirmed. View "Catholic Charities of Southwest Kansas v. PHL Variable Insurance Company" on Justia Law

Under Colorado law, a change in law may offer a party a second opportunity to litigate an issue that a prior judgment otherwise precludes. "But this new legal condition must arise between the preclusive judgment and any subsequent action to have effect. Otherwise, the change cannot offer the second opportunity."Here, the timing requirement prohibited the Tenth Circuit Court of Appeals' review of one possible change in law. The Colorado Court of Appeals (“CCOA”) and Colorado Supreme Court issued decisions over the course of the parties’ litigation that Plaintiffs contended offered them the second opportunity. Because the Colorado Supreme Court’s decision postdated any of Plaintiffs’ complaints before the federal appellate court, the federal court could not review its potential change in law. The Court did address the CCOA’s decision because it predated Plaintiff’s third complaint. To this, the Court concluded that it did not change the law. The Court therefore affirmed the district court’s dismissal for lack of jurisdiction. View "Boulter, et al. v. Noble Energy, et al." on Justia Law

In 1992, the Crow Tribe brought a declaratory action against Wyoming Game and Fish officials to determine whether the 1868 Treaty with the Crows afforded it an unrestricted right to hunt in the Bighorn National Forest. Relying on a line of prior Supreme Court cases interpreting Indian treaties, the federal district court in Wyoming held in Crow Tribe of Indians v. Repsis (Repsis I), 866 F. Supp. 520 (D. Wyo. 1994), that Wyoming’s admission as a state extinguished the Tribe’s treaty hunting rights (the “Statehood Holding”). In Crow Tribe of Indians v. Repsis (Repsis II), 73 F.3d 982 (10th Cir. 1995), the Tenth Circuit Court of Appeals affirmed the district court’s Statehood Holding. Alternatively, the Tenth Circuit held that the Bighorn National Forest was “occupied,” so the Tribe’s treaty hunting rights would not have applied to the area in question (the “Occupation Rationale”), and also reasoned that Wyoming could have justified its restrictions on hunting due to its interest in conservation (the “Conservation Necessity Rationale”). In 2019, the Supreme Court decided Herrera v. Wyoming, 139 S. Ct. 1686 (2019), in response to Wyoming’s attempts to prosecute a Tribe member for hunting in Bighorn National Forest. Critically, the Court held that the Tribe’s treaty rights had not been extinguished by Wyoming’s admittance as a state and that Bighorn National Forest was not categorically “occupied.” On remand, Wyoming continued its efforts to prosecute the Tribe’s member, arguing in part that the defendant could not assert a treaty right to hunt in Bighorn National Forest because Repsis II continued to bind the Tribe and its members through the doctrine of issue preclusion. The Tribe moved for relief from Repsis II under Federal Rule of Civil Procedure 60(b). But the district court denied the Tribe’s motion, holding that it lacked the power to grant relief because the Tenth Circuit relied on alternative grounds for affirmance (the Occupation and Conservation Necessity Rationales) that the district court had not considered in Repsis I. The Tribe appealed, arguing that the district court legally erred when it held that it lacked the power to review the Tribe’s Rule 60(b) motion. The Tenth Circuit concluded the district court abused its discretion when it held that it lacked the authority to review the Tribe’s motion for post-judgment relief. The matter was remanded again for further proceedings. View "Crow Tribe of Indians, et al. v. Repsis, et al." on Justia Law

Five people were killed when a commercial truck rear-ended a line of traffic on an interstate highway. The truck driver was prosecuted and sentenced to prison for his misconduct. The issue on this appeal was the liability, if any, of the manufacturer of the truck. Plaintiffs, suing on behalf of the heirs and estates of the decedents, contended the manufacturer, Daimler Trucks North America, should have been held liable in tort under design-defect and warning-defect theories of products liability because it failed to equip the truck with two collision-mitigation systems—forward-collision warning and automatic emergency braking—and did not warn of the dangers caused by that failure. The district court granted summary judgment to Daimler. After its review of the district court record, the Tenth Circuit Court of Appeals affirmed, finding many of the arguments made by Plaintiffs on appeal were inadequately preserved for appellate review, and the remaining arguments lacked merit. View "Butler, et al. v. Daimler Trucks North America" on Justia Law