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

The United States and others filed suit against several mortgage servicers, including Wells Fargo, alleging claims under the False Claims Act, 31 U.S.C. 3729 et seq., and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), 12 U.S.C. 1833(a), based on Wells Fargo's alleged misconduct in issuing home mortgage loans insured by the FHA. The parties agreed on a settlement where the United States agreed to release certain claims. On appeal, Wells Fargo challenged the district court's order denying its motion to enforce the consent judgment. The court concluded that the Release's plain text forecloses Wells Fargo's interpretation. View "United States, et al. v. Bank of America Corp., et al." on Justia Law

This appeal arose from events surrounding six individuals formerly detained at Guantanamo Bay. At issue was whether the detainees cleared by a military tribunal but nevertheless subjected to continued detention and allegedly abusive treatment have sufficiently alleged that those authorizing and supervising their detention acted outside the scope of their employment. The actions at issue can be divided into two categories: (1) the continued detention of plaintiffs post- Combatant Status Review Tribunals (CSRT) clearance, and (2) all acts attendant to that continued detention that occurred during the post-clearance period. The court concluded that claims in both categories, as pled, failed to support the conclusion that defendants acted outside the scope of their employment. Accordingly, the court granted defendants' motion to dismiss.View "Allaithi v.Rumsfeld, et al." on Justia Law

Prime Time filed suit contending that USDA's method of calculating assessments for cigars violated the Fair and Equitable Tobacco Reform Act (FETRA), 7 U.S.C. 518d. Applying Chevron deference, the court concluded that USDA's decision to read the word "volume" in subsection (e) as Congress used it in subsection (e) is entirely reasonable and fully implements subsection (e)'s "pro rata basis" requirement; nor is USDA's interpretation of the statutory term "share of gross domestic volume" "internally inconsistent"; although subsection (e) may have little independent operative effect, USDA's interpretation of subsection (e) as setting forth a general requirement was perfectly reasonable; and the court rejected Prime Time's argument that its interpretation gives more effect to subsection (e)'s pro rata basis limitation than does USDA's. Accordingly, the court concluded that USDA's approach represented a reasonable interpretation of the Act.View "Prime Time Int'l Co. v. AGRI, et al." on Justia Law

Cause of Action submitted a Freedom of Information Act (FOIA), 5 U.S.C. 552, request to Archives seeking certain Commission records. Archives denied the request, maintaining that because the Commission was established in the legislative branch, Commission records held by the Archives were not agency records subject to FOIA. The district court applied the four-factor Burka v. U.S. Dep't of Health & Human Servs. control test and concluded that the Commission's records were not agency records subject to FOIA and granted Archives' motion to dismiss. Applying the analysis from the Judicial Watch II test, not the Burka test, the court ultimately affirmed the judgment of the district court. The court concluded that Congress did not intend to expose legislative branch materials to FOIA simply because the material has been deposited with the Archives. View "Cause of Action v. NARA" on Justia Law

In this case, the Board addressed a rate dispute between a shipper and two railroads. The railroads contended that the Board's decision was too favorable to the shipper and the shipper contended that the Board's decision was too favorable to the railroads. The railroads and the shippers petitioned for review. The court concluded that the Board reasonably interpreted that the prior rates were not reasonable based on a Stand-Alone-Cost test that employs a hypothetical Stand Alone Railroad that is optimally efficient; the Board's calculation of the railroads' variable costs was reasonable and reasonably explained; and Arizona Electric lacked standing where the court could not detect a current injury to Arizona Electric from the Board's decision regarding the switch to proportional rates. Accordingly, the court denied the petition for review. View "BNSF Railway Co. v. STB, et al." on Justia Law

In 2008, ReGen Biologics, manufacturer of the Collagen Scaffold, obtained FDA approval to market the device. After allegations that improper political pressure tainted the clearance process, the FDA conducted an internal investigation and concluded that some procedural irregularities had occurred during the agency's review of the device. Asserting its inherent reconsideration authority, the agency reevaluated the scaffold and concluded that it had erred in allowing the device to be sold. The FDA issued an order rescinding its clearance decision. ReGen immediately pulled the scaffold from the market and subsequently filed for bankruptcy. ReGen and its successor in interest, Ivy, filed suit challenging the FDA's decision to rescind and the district court granted summary judgment for the agency. The court reversed, concluding that the FDA did not follow the proper statutory procedure for reclassifying a device. Rescinding its determination had the effect of putting the device into Class III, and thus required completion of the extensive pre-market approval process before the scaffold could be marketed again. Accordingly, the court vacated and remanded for further proceedings. View "Ivy Sports Medicine, LLC v. Sebelius, et al." on Justia Law

Sorenson, a leading provider of video relay service (VRS), petitioned for review of the FCC's 2013 Rate Order as arbitrary and capricious, in violation of the Administrative Procedure Act, 5 U.S.C. 706(2)(a). The court found no fault with the new rates because the 2013 Rate Order is not arbitrary and capricious for ignoring costs incurred unnecessarily, even when the consequence for the provider that incurred those costs might be ruinous. However, Sorenson has demonstrated that additional consideration by the FCC is necessary in regards to providing service under the more demanding speed-of-answer requirement that the agency adopted as part of the 2013 Rate Order. Therefore, the court vacated the new speed-of-answer requirement and remanded that portion of the Order. In regard to tiered rates, the court held that the FCC adequately justified the 500,000- and 1,000,000-minute cut-offs. The court deferred to the FCC's decision concerning the tiered structure because the task of balancing the goals of setting rates to reflect economies of scale and transitioning the industry from rate regulation to competitive bidding is fairly within the discretion of the agency. View "Sorenson Communications, Inc., et al. v. FCC, et al." on Justia Law

Plaintiff filed suit against Kenya in district court for breach of contract based on Kenya's underpayment of rewards owed to him. The court affirmed the district court's conclusion that the Foreign Sovereign Immunities Act (FSIA), 28 U.S.C. 1604, barred plaintiff's suit. In this case, Kenya did not waive its immunity in U.S. courts and Kenya's alleged breach of contract lacks the connection to the United States required by the commercial activity exception to the FSIA. View "Odhiambo v. Republic of Kenya, et al." on Justia Law

The Corporation, asserting its power under section 215(e) of the Federal Power Act, 16U.S.C. 824o, assessed a monetary fine against Southwestern, a federal government entity that markets hydroelectric power. The Commission upheld the penalty. The court held that section 215(b)(1) generally subjects federal government entities to the Commission's jurisdiction to enforce compliance. But to authorize a monetary award against the federal government, the statute must do more than generally bring the government within the Commission's enforcement jurisdiction - it must unequivocally subject the government to monetary liability. Neither section 215(b) nor section 215(e), nor the two consolidated in combination, speaks with the requisite clarity to waive the federal government's sovereign immunity from monetary penalties. Therefore, the court vacated the Commission's order. View "Southwestern Power Admin., et al. v. FERC" on Justia Law

This case involves challenges to the most recent forms of electric transmission planning and cost allocation adopted by the Commission under the Federal Power Act, 16 U.S.C. 791 et seq. In Order No. 1000, as reaffirmed and clarified in Order Nos. 1000-A and 1000-B (together, the Final Rule), the Commission required each transmission owning and operating public utility to participate in regional transmission planning that satisfies the specific planning principles designed to prevent undue discrimination and preference in transmission service, and that produces a regional transmission plan. The court held that the Commission had authority under Section 206 of the Act to require transmission providers to provide in a regional planning process; there was substantial evidence of a theoretical threat to support adoption of the reforms in the Final Rule; the Commission had authority under Section 206 to require removal of federal rights of first refusal provisions upon determining they were unjust and unreasonable practices affecting rates, and that determination was supported by substantial evidence and was not arbitrary and capricious; the Mobile-Sierra objection to the removal is not ripe; the Commission had authority under Section 206 to require the ex ante allocation of the costs of new transmission facilities among beneficiaries, and that its decision regarding scope was not arbitrary or capricious; the Commission reasonably determined that regional planning must include consideration of transmission needs driven by public policy requirements; and the Commission reasonably relied upon the reciprocity condition to encourage non-public utility transmission providers to participate in a regional planning process. Accordingly, the court denied the petitions for review of the Final Rule. View "South Carolina Public Service v. FERC" on Justia Law