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The DC Circuit affirmed defendant's conviction of conspiracy to distribute, and conspiracy to possess with the intent to distribute, 100 grams or more of a mixture and substance containing a detectable amount of heroin. The court held that the evidence was sufficient to prove that defendant was responsible for 100 grams or more of heroin where the jury could have concluded that when a local drug dealer said he gave defendant 100 grams, the dealer in fact gave defendant 100 grams. The court need not resolve defendant's challenges to the district court's alternative rationales. View "United States v. Durrette" on Justia Law

Posted in: Criminal Law

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The DC Circuit affirmed the district court's dismissal of claims related to conditions placed by the D.C. Alcoholic Beverage Control Board on the liquor license of the Alibi restaurant. The court held that HRH properly invoked the curable defect exception to issue preclusion, and the district court erred by rejecting HRH's proposed second amended complaint that included allegations about the Board's enforcement action that would have cured the standing defect. On the merits, the court affirmed the dismissal of HRH's First Amendment retaliation claim because, even assuming the facts alleged in the complaint were true, the record showed that retaliation was not a plausible conclusion. The court also affirmed the dismissal of the commercial association claim based on the same reasoning as the retaliation claim; the dismissal of the right to travel claim in light of Hutchins v. District of Columbia, 188 F.3d 531, 537-38 (D.C. Cir. 1999); and procedural due process claim based on the failure to identify a cognizable liberty or property interest. View "Scahill v. District of Columbia" on Justia Law

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Plaintiff filed suit against FFIC to recover disputed expenses, largely attorney fees, that he incurred in an underlying action brought by his sister. The district court granted summary judgment for FFIC. The DC Circuit reversed in part and held that there were disputes of material fact as to whether the parties entered into a binding, enforceable rate agreement. In this case, the disputed communications to which FFIC points did not unambiguously show that the parties entered a rate agreement as asserted by FFIC. However, the court affirmed the district court's denial of plaintiff's motion to compel certain communications between FFIC and its attorneys. View "Feld v. Fireman's Fund Insurance Co." on Justia Law

Posted in: Insurance Law

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Petitioner, the former CEO of a Georgia bank, sought review of the Comptroller's decision to assess a $10,000 civil money penalty against him. The DC Circuit upheld the Comptroller's determination that petitioner engaged in unfair and unsound banking practices by allowing the bank to honor repeated overdrafts in the accounts of a frequent customer. However, the court set aside the Comptroller's determination that petitioner caused the bank to file materially inaccurate reports concerning the bank's financial condition. The court held that there were material factual disputes regarding whether petitioner reasonably believed in the accuracy of the call reports. View "Blanton v. Office of the Comptroller of the Currency" on Justia Law

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The DC Circuit denied a petition for review of the TSA's order stating that it would neither confirm or deny any information about petitioner which may be within federal watchlists or reveal any law enforcement sensitive information. The court held that the petition was filed after the statutory deadline pursuant to 49 U.S.C. 46110, and there were no reasonable grounds justifying her untimely filing. In this case, petitioner had no good excuse, much less reasonable grounds, for her failure to file a petition for review not later than 60 days after TSA issued the disputed order. View "Matar v. TSA" on Justia Law

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This appeal stemmed from an attempt by Starr, a Swiss-domiciled company, to avail itself of a bilateral tax treaty between the United States and Switzerland to reduce its tax rate on U.S.-source dividend income. The DC Circuit reversed the district court's dismissal of Starr's tax refund claim as raising a nonjusticiable political question and remanded for further proceedings. The court explained that the question as to whether the IRS properly found Starr ineligible for treaty benefits under Article 22(6) of the Treaty did not raise a political question. Because Starr could proceed with its tax refund claim, the court held that Starr did not have a cause of action under the Administrative Procedure Act (APA). Rather, the claim was properly brought under 26 U.S.C. 7422. Therefore, the court vacated the district court's decision as to the APA claim and remanded with instructions to dismiss the claim. View "Starr International Co. v. United States" on Justia Law

Posted in: Business Law, Tax Law

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Petitioner, a commercial pilot, filed a petition for review challenging the TSA's Known Crewmember Program. Petitioner claimed that TSA lacked statutory authority to select and screen airline crewmembers in the same manner as passengers. The DC Circuit held that petitioner had standing to challenge TSA's policies and assumed, without deciding, that his petition for review was timely. On the merits, the court held that TSA has broad statutory authority to protect civil aviation security and the agency's reasoned decisionmaking should be accorded deference. In this case, TSA has reasonably concluded that a random-screening regime is required to protect airline travelers from the unique threat posed by insiders with privileged access to airport sterile areas. Furthermore, petitioner failed to demonstrate any persuasive evidence that TSA's policies were unauthorized or otherwise impermissible. Therefore, the court denied the petition for review. View "Bonacci v. TSA" on Justia Law

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Kaspersky, a Russian-based cybersecurity company, provides products and services to customers around the world. In 2017, based on concerns that the Russian government could exploit Kaspersky’s access to federal computers, the Secretary of Homeland Security directed federal agencies to remove the company’s products from government information systems. Congress later broadened and codified (131 Stat. 1283) that prohibition in the National Defense Authorization Act. Kaspersky sued, arguing that the prohibition constituted an impermissible legislative punishment, a bill of attainder prohibited by the Constitution, Article I, Section 9. The D.C. Circuit affirmed the dismissal of the suit. Kaspersky failed to adequately allege that Congress enacted a bill of attainder. The court noted the nonpunitive interest at stake: the security of the federal government’s information systems. The law is prophylactic, not punitive. While Kaspersky is not the only possible gap in the federal computer system’s defenses, Congress had ample evidence that Kaspersky posed the most urgent potential threat and Congress has “sufficient latitude to choose among competing policy alternatives.” Though costly to Kaspersky, the decision falls far short of “the historical meaning of legislative punishment.” Relying just on the legislative record, Kaspersky’s complaint fails to plausibly allege that the motivation behind the law was punitive. View "Kaspersky Lab, Inc.v. United States Department of Homeland Security" on Justia Law

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The Architect of the Capitol removed high school student David Pulphus’ painting from the exhibition of the 2016 winners of the Congressional Art Competition. The painting was initially described as “a colorful landscape of symbolic characters representing social injustice, the tragic events in Ferguson, Missouri, and the lingering elements of inequality in modern American society.” It was removed after protests by police unions and a FOX news personality, based on a newspaper story that described it as “depicting police officers as pigs with guns terrorizing a black neighborhood.” After unsuccessfully asking that the House Office Building Commission overrule the removal decision, Pulphus and Missouri Congressman Clay unsuccessfully sought a preliminary injunction, alleging violations of their First Amendment rights. The D.C. Circuit dismissed an appeal as moot; the 2016 Congressional Art Competition is over and no other concrete, redressable injury is alleged that was caused by the Architect’s removal decision. View "Pulphus v. Ayers" on Justia Law

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In 2016, the Department of Transportation issued a rule requiring airlines to report the number of wheelchairs and scooters that are mishandled after being transported as checked luggage on passenger flights. The “Reporting Rule” was scheduled to take effect on January 1, 2018. In March 2017, DOT issued an “Extension Rule” that delayed the Reporting Rule's effective date by one year. More than four months after the issuance of the Extension Rule, Paralyzed Veterans filed suit, challenging the Extension Rule as procedurally infirm because it was issued without notice-and-comment procedures and as arbitrary and capricious. DOT argued only that the district court lacked subject-matter jurisdiction. The court agreed and transferred the case to the D.C. Circuit pursuant to 28 U.S.C. 1631. The D.C. Circuit dismissed. Under 49 U.S.C. 46110(a), petitions for review of specified orders issued by the Secretary of Transportation must be filed in the Court of Appeals for the District of Columbia Circuit or in the court of appeals for the circuit in which the petitioner resides or has its principal place of business. The court also noted that the claim was filed after the 60-day statutory deadline and there are no “reasonable grounds” justifying the untimely filing. View "Paralyzed Veterans of America v. United States Department of Transportation" on Justia Law