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

Cheryl Walker used her Uber account to order a guest ride for her husband, Carroll Walker. Carroll had never downloaded the Uber app or created an account, and he consistently stated that he does not read or reply to text messages. On the relevant occasion, Cheryl ordered a ride for Carroll, and Uber sent Carroll a text message with ride details and a hyperlink to its Terms of Use, which included an arbitration provision. Carroll did not see the message. During the ride, an accident occurred, allegedly due to the driver’s distraction by Uber’s app, resulting in severe injuries to Carroll.In the United States District Court for the District of Columbia, Cheryl Walker sued Uber on Carroll’s behalf, asserting negligence and products liability claims. Uber moved to compel arbitration, arguing Carroll was bound to arbitrate either because he had notice of the Terms via Uber’s text message or as a third-party beneficiary of Cheryl’s contract with Uber. The district court denied Uber’s motion, finding Uber failed to establish that Carroll was on inquiry notice of the Terms and concluding that Carroll was not bound as a third-party beneficiary or estopped from refusing arbitration.The United States Court of Appeals for the District of Columbia Circuit reviewed the district court’s denial of Uber’s motion to compel arbitration de novo, applying D.C. contract law. The Court held that Uber had not shown Carroll agreed to be bound by its Terms of Use, as Carroll lacked actual or inquiry notice of the Terms. The Court further determined that Carroll was not bound by Cheryl’s contract as a third-party beneficiary or by equitable estoppel, since Carroll was not seeking to enforce Cheryl’s contract and his claims were independent of it. The judgment of the district court was affirmed. View "Walker v. Uber Technologies, Inc." on Justia Law

After the death of their fourteen-year-old daughter Taylor Rose Sookra in December 2021, four months after she received Pfizer’s COVID-19 vaccine, Arthur Sookra and April Burch-Sookra filed a lawsuit. They alleged willful misconduct under the Public Readiness and Emergency Preparedness Act (PREP Act) against Pfizer, federal officials, the physician who administered the vaccine, and the pediatric practice. Their claims included both federal law claims and state-law tort claims.Initially, the case was filed in the United States District Court for the Eastern District of New York. When the Sookras added a PREP Act willful-misconduct claim, they requested and obtained a transfer to the United States District Court for the District of Columbia, as required by the statute. The defendants moved to dismiss, and the motions were referred to a magistrate judge who recommended dismissal of the claims against the federal government on sovereign immunity grounds and against Pfizer for failure to exhaust administrative remedies. The magistrate also recommended dismissal of Pfizer’s state-law claims based on immunity and advised that the court decline supplemental jurisdiction over the remaining state-law claims. The district court adopted these recommendations, dismissed the case, and denied as moot the plaintiffs’ later request for a three-judge court.On appeal, the United States Court of Appeals for the District of Columbia Circuit held that the district court erred by dismissing the complaint without first convening a three-judge court, as required by 42 U.S.C. § 247d-6d(e)(5) for willful-misconduct claims under the PREP Act. The appellate court vacated the district court’s judgment and remanded with instructions to initiate procedures for convening a three-judge court. The court did not address the other arguments raised by the parties. View "Sookra v. Pfizer Inc." on Justia Law

The United States sued Honeywell International Inc. for providing the material in allegedly defective bulletproof vests sold to or paid for by the government. Among other relief, the government sought treble damages for the cost of the vests. It has already settled with the other companies involved, and Honeywell seeks a pro tanto, dollar for dollar, credit against its common damages liability equal to those settlements. For its part, the government argues Honeywell should still have to pay its proportionate share of damages regardless of the amount of the settlements with other companies. The district court adopted the proportionate share rule but certified the question for interlocutory review under 28 U.S.C. Section 1292(b).   The DC Circuit reversed the district court’s ruling and held the pro tanto rule is the appropriate approach to calculating settlement credits under the False Claims Act. The court explained that in the False Claims Act, Congress created a vital mechanism for the federal government to protect itself against fraudulent claims. The FCA, however, provides no rule for allocating settlement credits among joint fraudsters. Because the FCA guards the federal government’s vital pecuniary interests, and because state courts widely diverge over the correct rule for settlement offsets, the court found it appropriate to establish a federal common law rule. The pro tanto rule best fits with the FCA and the joint and several liability applied to FCA claims. Thus, Honeywell is entitled to offset its common damages in the amount of the government’s settlements from the other parties. View "USA v. Honeywell International, Inc." on Justia Law

Defendants challenged a district court order requiring that they add two statements to their cigarette packages and advertisements: an announcement that a federal court has ruled that they “deliberately deceived the American public” about the dangers of cigarettes; and a declaration that they “intentionally designed cigarettes” to maximize addiction. The court concluded that given its earlier decisions in this case, the manufacturers’ objection to disclosing that they intentionally designed cigarettes to ensure addiction is both waived and foreclosed by the law of the case. Those decisions make equally clear that the district court, in ordering defendants to announce that they deliberately deceived the public, exceeded its authority under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961-1968, to craft remedies that “prevent and restrain” future violations. 18 U.S.C. 1964(a). The court affirmed in part, reversed in part, and remanded for further proceedings. View "United States v. Philip Morris USA Inc." on Justia Law

Plaintiff appealed from the dismissal of wrongful death and survival actions she filed against her son's employer and two pharmaceutical companies. Plaintiff's son committed suicide using a gun provided by his employer while he was taking prescribed medication manufactured and distributed by the pharmaceutical companies. The court held that the district court did not err in ruling that plaintiff failed to state a claim of negligence against the employer when the district court invoked, sua sponte, District of Columbia law that suicide was an intervening and independent cause of death subject to limited exceptions that were inapplicable. The court declined to certify questions of negligence-liability to the D.C. Court of Appeals. The court also held that the district court did not err in ruling that the complaint failed to state a plausible claim of products liability against the pharmaceutical companies and in denying her leave to amend. View "Rollins v. Wackenhut Services, Inc., et al" on Justia Law