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

A group of hospitals challenged a rule by the Department of Health and Human Services (HHS) that adjusted Medicare reimbursement rates. HHS had increased reimbursements for hospitals in the lowest wage quartile and decreased them for others to maintain budget neutrality. The hospitals argued that this adjustment exceeded HHS's statutory authority under the Medicare Act.The United States District Court for the District of Columbia ruled in favor of the hospitals, finding that HHS lacked the authority to make such adjustments. However, the court did not vacate the rule but remanded it to HHS with instructions to recalculate the reimbursements.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and agreed with the lower court that HHS exceeded its authority. The court held that the Medicare Act's wage-index provision did not allow HHS to deviate from the congressionally prescribed formula. The adjustments provision also did not grant HHS the power to override the specific statutory formula. The court concluded that HHS's action must be vacated, not just remanded. Additionally, the court directed that the hospitals should receive an award of interest on the recalculated reimbursements as required by the Medicare statute.The court affirmed in part, reversed in part, and remanded the case to the district court for further proceedings consistent with its opinion. View "Bridgeport Hospital v. Becerra" on Justia Law

In 2016, Chance Barrow was employed as a digital forensic examiner by the Army Criminal Investigation Division (Army-CID) in Irvine, California. By 2018, he was a special agent. In March 2018, Barrow's ex-wife reported him to the Naval Criminal Investigative Service (NCIS) for alleged sexual assault. Consequently, Army-CID placed Barrow on administrative duty. After a meeting in April 2018, where officials suggested he resign, Barrow resigned. In May 2018, Barrow applied for a position with the Treasury Inspector General for Tax Administration (TIGTA), providing false information about his employment status and history. TIGTA hired him, but later discovered the allegations and initiated a criminal investigation, leading to Barrow's suspension and eventual termination.The United States District Court for the District of Columbia tried Barrow, who was indicted on two counts of wire fraud and one count of concealment of material facts. The district court excluded evidence related to Barrow's job performance and the NCIS investigation details. The jury found Barrow guilty on all counts, and the court sentenced him to seventeen months in prison and ordered him to pay $77,057.00 in restitution. Barrow appealed, arguing insufficient evidence and errors in the district court's rulings.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court found insufficient evidence to support the wire fraud convictions, as the government failed to prove that Barrow's lies deprived TIGTA of money or property. The court vacated the wire fraud convictions and remanded for a judgment of acquittal. Additionally, the court reversed Barrow's conviction for concealment of material facts due to the exclusion of critical evidence and remanded for further proceedings. The restitution order was also vacated. View "USA v. Barrow" on Justia Law

Tenaska Clear Creek Wind, LLC ("Clear Creek") sought to generate wind energy for sale in parts of Missouri, southeast Iowa, and northeast Oklahoma. Clear Creek challenged the Federal Energy Regulatory Commission's (FERC) decision to allow Southwest Power Pool, Inc. (SPP) to assign over $100 million in upgrade costs to Clear Creek for its wind turbine project. Clear Creek argued that FERC's decision was arbitrary, capricious, and contrary to precedent.Initially, Clear Creek submitted an interconnection request to Associated Electric Cooperative, Inc. (AECI) and requested Network Resource Interconnection Service (NRIS). AECI identified SPP and Midcontinent Independent System Operator, Inc. (MISO) as potentially affected systems. SPP conducted several studies, initially estimating upgrade costs at $31.2 million, which later fluctuated significantly. Clear Creek began construction based on initial studies but faced a restudy by SPP, which increased the estimated costs to $763 million, later adjusted to $102 million. Clear Creek filed a complaint with FERC, which partially granted and partially denied the complaint, requiring SPP to restudy the project using updated models. The restudy resulted in $88 million in upgrade costs.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court upheld FERC's orders, finding that SPP's methodology for assigning upgrade costs was consistent with the "but for" cost allocation principle and not arbitrary or capricious. The court also found that Clear Creek's downgrade to Energy Resource Interconnection Service (ERIS) did not moot the case, as Clear Creek retained the right to re-open the matter if it prevailed. The court concluded that FERC's decision was based on reasoned decision-making and substantial evidence, denying Clear Creek's petitions for review. View "Tenaska Clear Creek Wind, LLC v. FERC" on Justia Law

The Environmental Protection Agency (EPA) updated its regulations to ensure that the transportation fuel mix in the United States contains the required amounts of renewable fuel. The new regulations specifically address biogas-derived renewable fuel, implementing a more structured process to prevent fraud and error. The Coalition for Renewable Natural Gas, representing industry stakeholders, petitioned to overturn these changes, arguing that the new rules were too rigid and burdensome.The case was reviewed by the United States Court of Appeals for the District of Columbia Circuit. The Coalition argued that the EPA lacked authority to regulate biogas producers and that the new requirements were arbitrary and capricious. They also claimed procedural violations in the rulemaking process. The EPA defended its regulations, stating that they were necessary to ensure compliance with renewable fuel standards and to prevent fraud and double counting.The Court of Appeals found that the EPA acted within its authority under the Clean Air Act to regulate biogas producers and that the new rules were reasonable and supported by substantial evidence. The court also held that the EPA had followed proper procedures in adopting the rule. The court denied the Coalition's petition for review, upholding the EPA's updated regulations. The main holding was that the EPA's modifications to the biogas-derived renewable fuel regulations were reasonable and necessary to ensure compliance with renewable fuel standards and to prevent fraud. View "Coalition for Renewable Natural Gas v. EPA" on Justia Law

Healthy Gulf and other environmental groups challenged the Federal Energy Regulatory Commission's (FERC) decision to authorize the construction and operation of liquefied natural gas (LNG) facilities in southwestern Louisiana. They argued that FERC did not properly address certain requirements under the National Environmental Policy Act (NEPA) and the Natural Gas Act (NGA). Specifically, they contended that FERC inadequately explained its failure to determine the environmental significance of the project's greenhouse gas (GHG) emissions and failed to adequately assess the cumulative effects of the project's nitrogen dioxide (NO2) emissions. However, they acknowledged that FERC did consider alternatives to the project.The Commission had issued a final Environmental Impact Statement (FEIS) and authorized the project, finding it environmentally acceptable and consistent with the public interest. Petitioners requested a rehearing, which was deemed denied by operation of law when FERC did not respond timely. They then sought review from the United States Court of Appeals for the District of Columbia Circuit.The United States Court of Appeals for the District of Columbia Circuit found that FERC inadequately explained its failure to determine the significance of the project's GHG emissions and failed to properly assess the cumulative effects of the project's NO2 emissions. The court noted that FERC's reliance on the Significant Impact Levels (SILs) to assess cumulative effects was insufficient and that FERC did not adequately consider the significance of GHG emissions using available methodologies. However, the court upheld FERC's consideration of alternatives to the project, finding that FERC had provided sufficient reasoning for rejecting the proposed alternatives.The court granted the petitions in part, denied them in part, and remanded the case to FERC for further consideration without vacating the authorization order. The court instructed FERC to provide a more thorough explanation of its GHG emissions analysis and to properly assess the cumulative effects of NO2 emissions. View "Healthy Gulf v. FERC" on Justia Law

In late 2003, Wye Oak Technology, Inc., a small American company, entered into a contract with the Iraqi Ministry of Defense to rebuild Iraq’s military. Wye Oak performed under the contract for nearly five months, but Iraq refused to pay and instead gave the money to another party. When Wye Oak’s owner traveled to Iraq to resolve the payment issue, he was killed by unidentified assailants. Wye Oak eventually ceased operations in Iraq and later sued Iraq in a U.S. federal district court for breach of contract.The United States District Court for the District of Columbia found Iraq liable after a bench trial and awarded Wye Oak over $120 million in damages. The court initially held that it had jurisdiction under the Foreign Sovereign Immunities Act (FSIA) based on the commercial exception’s second clause. However, the United States Court of Appeals for the District of Columbia Circuit vacated this judgment, ruling that the second clause did not apply and remanded the case to determine if the third clause of the commercial exception applied. On remand, the district court found that Iraq’s breach had direct effects in the United States, thus reentering its damages order.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and concluded that Iraq’s breach did not cause a direct effect in the United States as required by the FSIA’s commercial exception. The court noted that the contract and its breach were centered in Iraq, and any effects in the United States were too attenuated or involved intervening elements. Consequently, the court held that Iraq was immune from suit, vacated the district court’s judgment, and remanded the case with instructions to dismiss. View "Wye Oak Technology, Inc. v. Republic of Iraq" on Justia Law

Barbara Kowal, a paralegal for a federal public defender, filed FOIA requests with the ATF, FBI, and DEA seeking records related to Daniel Troya, who was sentenced to death for a gang-related murder. The agencies conducted searches and produced some documents but withheld others, citing various FOIA exemptions. Dissatisfied, Kowal filed two lawsuits claiming the searches were inadequate and the records were wrongfully withheld.The United States District Court for the District of Columbia granted summary judgment in favor of the agencies in both cases. The court found that the agencies conducted adequate searches and properly invoked FOIA exemptions to withhold certain records. Kowal appealed these decisions.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and affirmed the district court's rulings. The appellate court held that the agencies' searches were reasonable and tailored to Kowal's specific requests. The court also found that the agencies properly justified their withholdings under FOIA Exemptions 3, 6, 7(C), 7(D), and 7(E). The court noted that the agencies provided sufficient affidavits explaining the applicability of these exemptions and that Kowal failed to demonstrate any significant public interest that would outweigh the privacy and security concerns protected by the exemptions.In conclusion, the appellate court affirmed the district court's grants of summary judgment, holding that the agencies conducted adequate searches and properly withheld records under the cited FOIA exemptions. View "Kowal v. DOJ" on Justia Law

Golden Pass LNG Terminal, LLC was authorized to export up to 937 billion cubic feet per year of liquified natural gas (LNG) from a facility in Texas, with 129 billion cubic feet restricted to countries with a free-trade agreement (FTA) with the U.S. In 2022, the Department of Energy (DOE) removed this FTA-based restriction. The Sierra Club challenged this removal, arguing that it would increase actual exports, leading to more shipping traffic and harming the aesthetic and recreational interests of a member living near the facility.The Federal Energy Regulatory Commission (FERC) approved the facility's expansion in January 2021, and DOE approved increased exports to FTA countries in June 2021. DOE later approved exports to non-FTA countries in 2022, which Sierra Club opposed. After DOE denied Sierra Club's rehearing request, Sierra Club sought judicial review of the orders allowing greater exports to non-FTA countries.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and focused on the issue of constitutional standing. The court found that Sierra Club failed to provide evidence or argument in its opening brief to show that removing the FTA-based restriction would likely increase export volumes. The court noted that Sierra Club's arguments in its reply brief were insufficient to establish standing, as they were not patently obvious and irrefutable. Consequently, the court dismissed the petition for review due to lack of Article III standing. View "Sierra Club v. DOE" on Justia Law

Troutbrook Company LLC, which operates a hotel in Brooklyn, New York, was found to have violated the National Labor Relations Act by refusing to bargain in good faith with the New York Hotel and Motel Trades Council, AFL-CIO. After the hotel’s employees voted for union representation in 2018, the National Labor Relations Board (NLRB) certified the Union as their representative. Troutbrook challenged this certification and initially refused to bargain, which the NLRB found unlawful in 2019. The company then engaged in negotiations with the Union but refused to discuss economic subjects such as wages and benefits until all non-economic subjects were resolved.The Administrative Law Judge (ALJ) found that Troutbrook violated Sections 8(a)(5) and 8(a)(1) of the Act by refusing to bargain over economic subjects and restricting the non-economic subjects it would discuss. The NLRB upheld this decision, noting that Troutbrook’s refusal to discuss economic subjects unreasonably fragmented the negotiations and reduced the parties’ bargaining flexibility. The Board also granted the Union’s request for a twelve-month extension of its certification due to Troutbrook’s conduct.The United States Court of Appeals for the District of Columbia Circuit reviewed the case and found substantial evidence supporting the NLRB’s determination. The court noted that Troutbrook consistently refused to bargain over economic subjects throughout the negotiations, which obstructed the parties’ ability to make progress. The court rejected Troutbrook’s arguments that its bargaining strategy was justified by the COVID-19 pandemic and that the Union’s conduct excused its refusal to bargain. The court denied Troutbrook’s petition for review and granted the NLRB’s cross-application for enforcement of its order. View "Troutbrook Company LLC v. National Labor Relations Board" on Justia Law

Space Exploration Holdings (SpaceX) applied for a license from the Federal Communications Commission (FCC) to operate 29,988 low-altitude non-geostationary orbit satellites for its second-generation Starlink system. The FCC conditionally approved the license for 7,500 satellites, citing the public interest in improving broadband access. The approval was contingent on SpaceX obtaining a favorable finding from the International Telecommunications Union (ITU) regarding compliance with power flux-density limits to prevent signal interference.DISH Network Corporation and the International Dark-Sky Association opposed the license. DISH argued that SpaceX's satellites would cause unacceptable interference and that the FCC unlawfully delegated its authority to the ITU. The FCC dismissed DISH's evidence, relying on SpaceX's self-certification and the ITU's eventual verification. The FCC also granted an interim waiver allowing SpaceX to begin operations before the ITU's finding, citing public interest. The International Dark-Sky Association argued that the FCC failed to conduct an environmental review as required by the National Environmental Policy Act (NEPA). The FCC concluded that its regulations did not require such a review and denied the request.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that the FCC's decision to license SpaceX's satellites was lawful and reasonably explained. The court found that the FCC was not required to independently verify SpaceX's self-certification and that the interim waiver was justified by public interest considerations. The court also determined that the FCC did not unlawfully delegate its authority to the ITU, as the ITU's role was limited to fact gathering and compliance verification. Regarding the environmental review, the court held that the FCC reasonably concluded that SpaceX's mitigation efforts and the FAA's environmental assessment of rocket launches were sufficient to avoid significant environmental impacts.The court affirmed the FCC's order licensing SpaceX's Gen2 Starlink satellites. View "International Dark-Sky Association, Inc. v. Federal Communications Commission" on Justia Law