Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

Representative Scott Perry’s cell phone, which was seized by the Federal Bureau of Investigation pursuant to a warrant. In a district court motion, Representative Perry argued the Clause bars the government from reviewing many of the messages stored on the phone. As to communications with Executive Branch officials and parties outside of Congress, Representative Perry argued that his messages are necessarily privileged because they constitute “informal factfinding”—a capacious category he asserts is always privileged and includes a Member’s attempts to obtain information related to topics of upcoming votes without express House authorization. The district court held none of these communications were privileged because they were “political” or not fact-finding at all. The DC Circuit stayed the district court’s order pending appeal and expedited the case.   The DC Circuit vacated the judgment in part and remanded. The court explained that as o Representative Perry’s communications with individuals outside the federal government, communications with members of the Executive Branch, and communications with other Members of Congress regarding alleged election fraud during the period before Congress’s vote certifying the 2020 election and before its vote on H.R. 1, the district court failed to apply the fact-specific privilege inquiry under Gravel. The court affirmed with respect to the remaining privilege determinations about Representative Perry’s communications with Members of Congress. View "In re: Sealed Case (PUBLIC REISSUED OPINION)" on Justia Law

The Securities and Exchange Commission recently approved the trading of two bitcoin futures funds on national exchanges but denied approval of Grayscale’s bitcoin fund. Petitioning for review of the Commission’s denial order, Grayscale maintains its proposed bitcoin exchange-traded product is materially similar to the bitcoin futures exchange-traded products and should have been approved to trade on NYSE Arca.   The DC Circuit vacated the order and granted Grayscale’s petition. The court explained that the denial of Grayscale’s proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products. The court explained that to avoid arbitrariness and caprice, administrative adjudication must be consistent and predictable, following the basic principle that similar cases should be treated similarly. The court wrote that NYSE Arca presented substantial evidence that Grayscale is similar, across the relevant regulatory factors, to bitcoin futures ETPs. As such, the court found that the Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale’s proposed bitcoin ETP. Accordingly, the court explained that in the absence of a coherent explanation, this, unlike regulatory treatment of like products, is unlawful. View "Grayscale Investments, LLC v. SEC" on Justia Law

In this case, the Federal Trade Commission appeals the district court’s dismissal of claims against pharmaceutical manufacturers for violations of Sections 1 and 2 of the Sherman Act. The district court dismissed the action against Appellees Endo Pharmaceuticals Inc. (Endo), its parent, Endo International plc (Endo International), Impax Laboratories, LLC (Impax), and its parent, Amneal Pharmaceuticals, Inc. (Amneal) (collectively Appellees) for failure to state a claim because a single patentee granting an exclusive license is conduct protected and allowed under the Patent Act. 35 U.S.C. 261;The D.C. Circuit affirmed the district court’s dismissal of the Commission’s claims. The court concluded that the resolution of the case came down to the following question: Does a valid patent holder’s grant of a nearly exclusive license to a single potential competitor in exchange for royalty payments violate antitrust law when that nearly exclusive license restrains trade only to an extent traditionally recognized by patent law as reasonable? The court answered the question in the negative, holding that under FTC v. Actavis, Inc., when a complaint alleges that a patent holder has violated the antitrust laws, courts must strike a balance “between the lawful restraint on trade of the patent monopoly and the illegal restraint prohibited broadly by the Sherman Act.” The Court must defer to Congress’ judgment, as outlined in the Patent Act. View "FTC v. Endo Pharmaceuticals Inc." on Justia Law

Plaintiff acting on behalf of her son, a student who qualifies for special education services under the Individuals with Disabilities Education Act (IDEA), appealed an order of the district court denying her motions for a temporary restraining order and a preliminary injunction pursuant to the IDEA’s “stay-put” provision. The stay-put provision provides that “during the pendency of any proceedings conducted pursuant to this section, unless the State or local educational agency and the parents otherwise agree,” a student “shall remain” in the student’s “then-current educational placement.   The DC Circuit affirmed. The court explained that Community Services for Autistic Adults and Children, a private residential treatment center in Maryland, and its affiliated school, the Community School of Maryland’s (together, CSAAC) unilateral decision to discharge Plaintiff’s son did not trigger the IDEA’s stay-put mandate because the District did not refuse to provide a similar available placement. Neither the text of Section 1415(j) nor the court’s previous decisions applying the provision impose an affirmative duty on the District to provide an alternative residential environment when a student’s then-current placement becomes unavailable for reasons outside the District’s control. The court explained that Plaintiff’s attempt to bring a substantive challenge on behalf of her son by invoking the stay-put mandate is procedurally improper because Section 1415(j) is not intended to afford parties affirmative relief, on the merits, in the form of an automatic injunction. View "Anne Davis v. DC" on Justia Law

The United States Maritime Administration (“MARAD”) approved a shipping company’s request to replace two vessels operating in the Pacific trade within the Maritime Security Program. Matson Navigation Co., a competitor in the Pacific, petitions for review of the replacements. As a source of jurisdiction, Matson points to the Hobbs Act, under which the DC Circuit had original jurisdiction over some acts of MARAD.   The DC Circuit reversed two orders of the district court, consolidated with these petitions, that held jurisdiction over Matson’s claims under the Administrative Procedure Act (“APA”) and was exclusive in the court of appeals. The court wrote that Matson was not a “party” to the replacement proceedings for either vessel, therefore, the court denied the petitions for direct review. The court explained that whether a case begins in district court or is eligible for direct review in the court is a policy decision that is for “Congress rather than us to determine.” The court wrote that as Matson’s counsel stated at oral argument, the company is just “trying to get review.” Because sending limited comments based on limited information to an informal agency proceeding does not confer “party” status under the Hobbs Act, that review starts in the district court. View "Matson Navigation Company, Inc. v. DOT" on Justia Law

The Environmental Protection Agency extended the deadline for compliance with a revised national drinking water regulation, which in turn extended the deadline for states to enforce conforming revisions to their own regulations. Five states seek to challenge the federal extension, which they say will cause them various harms.   The DC Circuit dismissed the petition for review for lack of Article III standing. The court explained that the states’ uncertainty also is not redressable in this litigation. Their harm is not knowing what future obligations they will face, making it difficult to plan. But the Delay Rule gives the states more time to hedge their bets. Setting it aside would worsen any problem of regulatory uncertainty, taking as a given EPA’s unreviewable decision to consider changes to the Revision Rule. View "State of Arizona v. EPA" on Justia Law

Two consolidated cases arise out of the Hungarian government’s confiscation of property owned by Jews during the Holocaust. The questions raised by these appeals bear on whether survivors of the Hungarian Holocaust may hale the Hungarian government and its instrumentalities into United States courts to answer for a subset of the wrongs they committed. The plaintiffs invoked the Foreign Sovereign Immunities Act’s expropriation exception as a means to pierce the Hungarian state’s sovereign immunity and assert jurisdiction in federal district court. Defendants object that the exception is inapplicable. The district court dismissed the claims of the plaintiffs asserting statelessness but concluded that most of the plaintiffs asserting Czechoslovakian nationality could proceed.   The DC Circuit largely affirmed. The court concluded that the plaintiffs claiming statelessness—have not made out a recognized claim within a Foreign Sovereign Immunities Act exception. Assuming without deciding that those plaintiffs were de facto stateless at the time of the alleged takings, as they claim, the plaintiffs have nevertheless failed to identify adequate affirmative support in sources of international law for their contention that a state’s taking of a stateless person’s property amounts to a taking “in violation of international law” within the meaning of the Foreign Sovereign Immunities Act.   The court affirmed the district court’s denial of Defendants’ motions to dismiss the claims of some of the plaintiffs asserting Czechoslovakian nationality, with a few exceptions. The district court correctly determined that four of those plaintiffs had plausibly alleged they were Czechoslovakian nationals at the time of the takings. The court concluded that as for the five Lebovics sisters, the district court should have dismissed their claims. View "Rosalie Simon v. Republic of Hungary" on Justia Law

Appellant brought an action against the Army in district court, challenging the Secretary’s assignment of a 20% disability rating. According to Appellant the Secretary should have given him a 30% rating, consistent with the rating he had received from the Department of Veterans Affairs in a separate assessment conducted by the VA to determine his eligibility for veterans’ disability benefits. The district court granted summary judgment in favor of the Army.   The DC Circuit vacated the grant of summary judgment to the Army and remanded. The court concluded that the Secretary’s approach when determining Appellant’s disability rating was inconsistent with the applicable statute and regulations. The court explained that to the extent the Physical Disability Board of Review (PDBR) concluded that Appellant’s leg condition rendered him collectively unfit when considered together with his back condition, it was obligated to assign a rating to the leg condition. By extension, the Secretary, in accepting the PDBR’s recommendation to give no rating to Appellant’s leg condition, acted contrary to law insofar as the PDBR concluded that his leg condition was collectively unfitting together with his back condition. The court further explained that the fact that a condition contributes to a soldier’s unfitness is enough, and the Secretary’s apparent addition of a “significantly” criterion naturally raises questions about what degree and manner of contribution is thought to suffice, questions that the terms of the statute and regulations do not make salient. Any assumption that a medical condition, to receive a rating, must contribute “significantly” to unfitness thus is contrary to law. View "Jason Sissel v. Christine Wormuth" on Justia Law

Appellees worked as non-emergency medical transportation drivers. In July 2017, they brought a putative class action and Fair Labor Standards Act collective action against Medical Transportation Management, Inc. (“MTM”). Their complaint alleged that MTM is their employer and had failed to pay them and its other drivers their full wages as required by both federal and District of Columbia law. MTM appealed the district court’s certification of an “issue class” under Federal Rule of Civil Procedure 23(c)(4) and its denial of MTM’s motion to decertify plaintiffs’ Fair Labor Standards Act collective action.   The DC Circuit remanded the district court’s certification of the issue class because the court failed to ensure that it satisfies the class-action criteria specified in Rules 23(a) and (b). The court declined to exercise pendent appellate jurisdiction to review the district court’s separate decision on the Fair Labor Standards Act collective action. The court explained that because the resolution of the action will bind absent class members, basic principles of due process require that they be notified that their individual claims are being resolved and that they may opt out of the action if they so choose. So if the district court certifies the issue class under Rule 23(b)(3) on remand, it must direct “the best notice that is practicable” as part of any certification order. View "Isaac Harris v. Medical Transportation Management, Inc." on Justia Law

In 2018, Congress enacted the Allow States and Victims to Fight Online Sex Trafficking Act of 2017 (commonly referred to as “FOSTA”). FOSTA adds a new definitional provision to the Trafficking Act, 18 U.S.C. Section 1591(e)(4), and authorizes parens patriae suits by States against persons who violate that same Act’s prohibition of sex trafficking. The Woodhull Freedom Foundation and four other plaintiffs challenged the constitutionality of FOSTA on numerous grounds, but the district court upheld FOSTA in full.The DC Circuit affirmed. The court held that neither Section 2421A of FOSTA nor FOSTA’s amendments to the Trafficking Act are overbroad or unconstitutionally vague. FOSTA’s clarification that Section 230 withholds immunity for violations of federal sex trafficking laws comports with the First Amendment. And the district court correctly dismissed the challenge to Section 230(e)(5)’s retroactive application. View "Woodhull Freedom Foundation v. USA" on Justia Law