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

On petition for rehearing en banc, the en banc court held that the Committee on the Judiciary of the House of Representatives has standing under Article III of the Constitution to seek judicial enforcement of its duly issued subpoena. This case arose when the Committee began an investigation into alleged misconduct by President Trump and his close advisors. The Committee requested that Donald F. McGahn, II turn over documents related to the President's alleged obstruction of Special Counsel Robert S. Mueller's investigation. When McGahn, then no longer White House Counsel, declined these requests, the Committee issued a subpoena ordering McGahn to appear at a hearing to testify and to produce the requested documents.The en banc court held that the Committee, acting on behalf of the full House of Representatives, has shown that it suffers a concrete and particularized injury when denied the opportunity to obtain information necessary to the legislative, oversight, and impeachment functions of the House, and that its injury would be redressed by the order it seeks from the court. The court explained that the ordinary and effective functioning of the Legislative Branch critically depends on the legislative prerogative to obtain information, and constitutional structure and historical practice support judicial enforcement of congressional subpoenas when necessary. Therefore, the court affirmed the judgment of the district court in part. View "Committee on the Judiciary of the United States House of Representatives v. McGahn" on Justia Law

The Department of Health and Human Services disallowed roughly $30 million in Medicaid reimbursements for payments Virginia made to two state hospitals. HHS determined that Virginia had materially altered its payment methodology without notifying HHS or obtaining approval and that the new methodology resulted in payments that overstepped applicable federal limits. Virginia had allocated disproportionate share hospitals (DSH) payments for the two hospitals to fiscal years other than “the actual year in which [related] DSH costs were incurred” by those hospitals for purposes of complying with the annual statewide DSH allotment and hospital-specific limit. The district court and D.C. affirmed. A comparison between Virginia’s previous operation of its plan—as manifested in the state’s prior representations about the plan’s operation—and its later operation of the same plan shows that there was a “[m]aterial change” in “the State’s operation of the Medicaid program,” so that the state was required to amend its plan and present the amendment for approval, 42 C.F.R. 430.12(c)(1)(ii). View "Department of Medical Assistant Services of the Commonwealth of Virginia v. United States Department of Health and Human Services" on Justia Law

The Communications Act of 1934 restricts the rates that telecommunications carriers may charge for transmitting calls across their networks, 47 U.S.C. 201(b). Iowa-based Aureon is a joint venture through which local carriers connect to long-distance carriers such as AT&T and has “subtending” agreements with participating local carriers. AT&T alleged that Aureon imposed interstate and intrastate access charges that violated the Federal Communications Commission (FCC) transitional pricing rules; improperly engaged in access stimulation (enticing high call volumes to generate increased access charges); committed an unreasonable practice by agreeing with subtending carriers to connect calls involving access stimulation; and billed for service not covered by its 2013 interstate tariff. The FCC found that Aureon violated the transitional rule.The D.C. Circuit reversed in part. The transitional rule applies to all “competitive local exchange carriers,” and Aureon falls into that category but the rule applies to intrastate rates so Aureon’s 2013 increase of its interstate rate was not covered. The court remanded the question of whether Aureon’s subtending agreements qualify as access revenue sharing agreements. The court affirmed the FCC’s determination that Aureon’s interstate tariffs apply to traffic involving any local carriers engaged in access stimulation. The FCC erred in refusing to adjudicate AT&T’s unreasonable-practices claim. View "AT&T Corp. v. Federal Communications Commission" on Justia Law

The union filed suit challenging the Authority's decision overturning an arbitrator's award in a dispute arising from a termination provision of a collective bargaining agreement (CBA).The DC Circuit granted the petition for review as to the Authority's disposition of the breach claim and denied the petition as to the Authority's disposition of the unfair labor practice claim. The court explained that, in vacating the arbitrator's breach determination, the Authority's thorough, substantive review failed to conform to the proper standard of review. The court explained that the Authority's sole inquiry under the proper standard of review should have been whether the arbitrator was even arguably construing or applying the CBA. However, the Authority engaged in a much more searching review of the arbitrator's decision than permitted by law. The court also held that the Authority's explanation of the unfair labor practice issue, although terse, was not arbitrary and capricious. In this case, the Authority reasonably applied its precedent to determine that the employer did not repudiate the CBA even if it breached it. The panel remanded for further proceedings. View "National Weather Service Employees Organization v. Federal Labor Relations Authority" on Justia Law

Hospitals and hospital associations filed suit challenging HHS's decision to reduce the reimbursement rates for 340B hospitals. The district court held that the rate cute exceeded HHS's statutory authority to adjust specified covered outpatient drugs (SCOD) rates.After determining that it had jurisdiction, the DC Circuit proceeded to the merits and held that HHS had statutory authority to impose its 28.5 percent cut to SCOD reimbursement rates for 340B hospitals. The court held that HHS reasonably interpreted 42 U.S.C. 1395l(t)(14)(A)(iii)(II)'s adjustment authority to enable reducing SCOD payments to 340B hospitals, so as to avoid reimbursing those hospitals at much higher levels than their actual costs to acquire the drugs. Applying Chevron deference, the court held that, at a minimum, the statute does not clearly preclude HHS from adjusting the SCOD rate in a focused manner to address problems with reimbursement rates applicable only to certain types of hospitals. View "American Hospital Ass'n v. Azar" on Justia Law

The DC Circuit denied petitions for review challenging FERC's orders concerning SFPP's tariffs. SFPP challenges FERC's decisions to deny SFPP an income tax allowance, to decline to reopen the record on that issue, and to deny SFPP's retroactive adjustment to its index rates. Shippers challenge FERC's disposition of SFPP's accumulated deferred income taxes (ADIT) and its temporal allocation of litigation costs.The court held that FERC's denial of an income tax allowance to SFPP was both consistent with the court's precedent and well-reasoned, and that FERC did not abuse its discretion or act arbitrarily in declining to reopen the record on that issue. Furthermore, FERC reasonably rejected retroactive adjustment to SFPP's index rates. The court also held that FERC correctly found that the rule against retroactive ratemaking prohibited it from refunding or continuing to exclude from rate base SFPP's ADIT balance, and that FERC reasonably allocated litigation costs. View "SFPP, LP v. Federal Energy Regulatory Commission" on Justia Law

Meritor filed suit challenging the EPA's listing of the Rockwell facility and surrounding areas to the National Priorities List, alleging that the listing is arbitrary, capricious, and contrary to governing regulations. The National Priorities List identifies hazardous waste sites in most urgent need of cleanup based on the threat that they pose to public and environmental health and to the public welfare.The DC Circuit denied the petition for review, holding that the EPA did not act arbitrarily and capriciously by evaluating the Rockwell Site based on measurements taken before the sub-slab depressurization system was installed; by relying on a residential health benchmark when evaluating the "targets" metrics; and in calculating the "waste characteristics" component of the subsurface intrusion pathway. View "Meritor, Inc. v. Environmental Protection Agency" on Justia Law

In three consolidated petitions for review, petitioners challenged five FERC orders on two intertwined El Paso rate cases under the Natural Gas Act, the 2008 Rate Case and the 2011 Rate Case.The DC Circuit denied the petitions for review, holding that FERC's removal of both the undistributed subsidiary earnings and the loan to El Paso's parent from the equity component of El Paso's capital structure was reasoned and supported by substantial evidence. The court also held that FERC's conclusion that El Paso had not demonstrated that its proposed rates would comply with the 1996 settlement was reasonable; FERC reasonably excluded the two compressor stations from El Paso's rate base; and FERC's approval of a zone-of-delivery rate design measured by contract-paths and its rejection of equilibration for lack of quantitative support were neither arbitrary nor contrary to law. View "El Paso Natural Gas Co., LLC v. Federal Energy Regulatory Commission" on Justia Law

Asylum seekers filed suit challenging executive-branch policies adopted to implement the expedited-removal provisions of the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA). Asylum seekers principally argue that the policies raise the bar for demonstrating a credible fear of persecution far above what Congress intended and that the Attorney General and various agencies violated the Administrative Procedure Act (APA) by failing to adequately address important factors bearing on the policies' adoption. The district court found that the policies are inconsistent with the IIRIRA and the Immigration and Nationality Act (INA), enjoining their enforcement.After addressing jurisdictional issues, the DC Circuit held that the condoned-or-completely-helpless standard is arbitrary and capricious; the new choice-of-law policy is arbitrary and capricious due to USCIS's failure to acknowledge and explain its departure from past practice; when viewed as a whole, the Guidance accurately restates the circularity rule as described in Matter of A-B-, 27 I. & N. Dec. 316, 321 (2018); the record in this case does not support the asylum seekers' argument that USCIS and the Attorney General have erected a rule against asylum claims involving allegations of domestic and/or gang violence; and neither 8 U.S.C. 1252(f)(1) nor 1252(e)(1) prohibited the district court from issuing an injunction.Therefore, the court reversed the district court's grant of summary judgment with respect to the circularity rule and the statements regarding domestic- and gang-violence claims, vacated the injunction insofar as it pertains to those issues, and remanded to the district court for further proceedings. The court affirmed in all other respects. View "Grace v. Barr" on Justia Law

In these consolidated actions, a group of hospitals challenged HHS's rate reduction for off-campus provider-based departments (PBDs) falls outside of the agency's statutory authority. The district court agreed and set aside the regulation.Applying Chevron deference, the DC Circuit reversed and held that HHS's regulation rests on a reasonable interpretation of its statutory authority to adopt volume-control methods. In this case, Congress did not unambiguously forbid the agency from doing so and the agency reasonably read 42 U.S.C. 1395l(t)(2)(F) to allow a service specific, non-budget-neutral reimbursement cut in the circumstances the court considered here. View "American Hospital Assoc. v. Azar" on Justia Law