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

The Environmental Protection Agency extended the deadline for compliance with a revised national drinking water regulation, which in turn extended the deadline for states to enforce conforming revisions to their own regulations. Five states seek to challenge the federal extension, which they say will cause them various harms.   The DC Circuit dismissed the petition for review for lack of Article III standing. The court explained that the states’ uncertainty also is not redressable in this litigation. Their harm is not knowing what future obligations they will face, making it difficult to plan. But the Delay Rule gives the states more time to hedge their bets. Setting it aside would worsen any problem of regulatory uncertainty, taking as a given EPA’s unreviewable decision to consider changes to the Revision Rule. View "State of Arizona v. EPA" on Justia Law

Petitioner Fairless Energy, LLC (Fairless Energy) contends that it pays too much for the transportation of natural gas to fuel its electric power generating plant located in Fairless Hills, Pennsylvania (the Fairless plant). In these consolidated petitions for review of orders of the Federal Energy Regulatory Commission (the Commission), Fairless Energy maintains that the Commission acted arbitrarily and capriciously, and contrary to reasoned decision-making, when it exercised primary jurisdiction over Fairless Energy’s natural gas transportation rate dispute with intervenor Transcontinental Gas Pipe Line Company, LLC (Transco), and determined that the appropriate rate was the incremental rate for pipeline expansion under Transco’s Tariff.   The DC Circuit denied the petitions for review. The court held that Fairless Energy fails to demonstrate that either the Commission’s exercise of primary jurisdiction over the Transco-Fairless Energy natural gas transportation rate dispute or its decision regarding the appropriate rate was arbitrary and capricious. The court explained that the Commission reasonably started its evaluation with the 2018 Agreement’s Exhibit C and determined that it unambiguously “did not establish a negotiated rate” because it stated “None” in the location for the specification of a negotiated rate. After reaching this decision, the Commission was appropriately able to decline to consider extrinsic evidence. View "Fairless Energy, LLC v. FERC" on Justia Law

Plaintiff filed a Title VII action against her employer, the Federal Bureau of Investigation (“FBI” or the “Bureau”) for allegedly taking retaliatory actions against her after she reported discrimination to the Bureau’s Equal Employment Office (“EEO”). The district court granted summary judgment in favor of the FBI on several of Ramos’s allegations, finding that the FBI’s actions were not materially adverse in violation of Title VII’s antiretaliation provision. The district court also denied Plaintiff’s  motion for leave to amend her complaint to add new allegations of retaliation.   The DC Circuit reversed the district court’s grant of summary judgment with regard to the 2011 rescission of the offer to transfer to Unit 1B, but affirmed on all other grounds. The court explained that the Bureau provided a legitimate, nonretaliatory reason for the Unit Chief’s decision to make Plaintiff Backup Program Manager: concern for her well-being when she returned to work following medical leave and was still recovering from injuries. The Chief noted that the motive in looking to bring someone in was to give Plaintiff “a break” while she was on medical leave so that he would not “keep harassing her while she was on leave with work.” Then, when the Chief announced the reassignment after Plaintiff had returned from medical leave, he explained that he did not want to burden Plaintiff with a heavy workload as she was recovering from her injuries. As such, the court concluded that Plaintiff did not provide sufficient evidence for a reasonable jury to conclude that her reassignments were retaliatory. View "Laura Ramos v. Merrick Garland (PUBLIC OPINION)" on Justia Law

The district court issued a search warrant in a criminal case, directing appellant Twitter, Inc. ("Twitter") to produce information to the government related to the Twitter account "@realDonaldTrump." The search warrant was served along with a nondisclosure order that prohibited Twitter from notifying anyone about the existence or contents of the warrant. Although Twitter ultimately complied with the warrant, the company did not fully produce the requested information until three days after a court-ordered deadline. The district court held Twitter in contempt and imposed a $350,000 sanction for its delay. On appeal, Twitter argued that the nondisclosure order violated the First Amendment and the Stored Communications Act, that the district court should have stayed its enforcement of the search warrant, and that the district court abused its discretion by holding Twitter in contempt and imposing the sanction.   The DC Circuit affirmed. The court held that it affirmed the district court's rulings in all respects. The court wrote that the district court properly rejected Twitter's First Amendment challenge to the nondisclosure order. Moreover, the district court acted within the bounds of its discretion to manage its docket when it declined to stay its enforcement of the warrant while the First Amendment claim was litigated. Finally, the district court followed the appropriate procedures before finding Twitter in contempt of court - including giving Twitter an opportunity to be heard and a chance to purge its contempt to avoid sanctions. Under the circumstances, the court did not abuse its discretion when it ultimately held Twitter in contempt and imposed a $350,000 sanction. View "In re: Sealed Case (AMENDED REDACTED OPINION)" on Justia Law

The Affordable Care Act obligates large employers to provide their full-time employees with health insurance coverage meeting certain requirements. If an employer fails to provide coverage or provides noncomplying coverage, it is liable for an exaction under 26 U.S.C. Section 4980H. In 2019, the Internal Revenue Service sent two letters proposing exactions under Section 4980H to appellant Optimal Wireless, a wireless communications company. Optimal then filed an action against the IRS and the Department of Health and Human Services, claiming that the agencies had failed to satisfy certain procedural requirements before imposing the proposed exactions. Optimal sought a declaratory judgment and an injunction barring the IRS from collecting any money without complying with those procedures. The district court dismissed Optimal’s suit for lack of jurisdiction.   The DC Circuit affirmed. The court explained that the Anti-Injunction Act provides that, with certain exceptions, “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The court explained that because Congress repeatedly called the Section 4980H exaction a tax, Optimal’s suit is barred by the Anti-Injunction Act. The court further wrote that Congress’s use of the phrase “assessable payment” does not conflict with—or otherwise detract from the import of—its choice to label the Section 4980H exaction a “tax” in multiple provisions. The terms are not mutually exclusive. View "Optimal Wireless LLC v. IRS" on Justia Law

Two consolidated cases arise out of the Hungarian government’s confiscation of property owned by Jews during the Holocaust. The questions raised by these appeals bear on whether survivors of the Hungarian Holocaust may hale the Hungarian government and its instrumentalities into United States courts to answer for a subset of the wrongs they committed. The plaintiffs invoked the Foreign Sovereign Immunities Act’s expropriation exception as a means to pierce the Hungarian state’s sovereign immunity and assert jurisdiction in federal district court. Defendants object that the exception is inapplicable. The district court dismissed the claims of the plaintiffs asserting statelessness but concluded that most of the plaintiffs asserting Czechoslovakian nationality could proceed.   The DC Circuit largely affirmed. The court concluded that the plaintiffs claiming statelessness—have not made out a recognized claim within a Foreign Sovereign Immunities Act exception. Assuming without deciding that those plaintiffs were de facto stateless at the time of the alleged takings, as they claim, the plaintiffs have nevertheless failed to identify adequate affirmative support in sources of international law for their contention that a state’s taking of a stateless person’s property amounts to a taking “in violation of international law” within the meaning of the Foreign Sovereign Immunities Act.   The court affirmed the district court’s denial of Defendants’ motions to dismiss the claims of some of the plaintiffs asserting Czechoslovakian nationality, with a few exceptions. The district court correctly determined that four of those plaintiffs had plausibly alleged they were Czechoslovakian nationals at the time of the takings. The court concluded that as for the five Lebovics sisters, the district court should have dismissed their claims. View "Rosalie Simon v. Republic of Hungary" on Justia Law

In this consolidated appeal of the Federal Energy Regulatory Commission’s (FERC) orders, two utility companies argue that Attachment Z2 plainly requires utilizing the N-1 Contingency Analysis (N-1) methodology. And they assert that FERC erred in concluding that the Tariff was ambiguous, relying on extrinsic evidence to interpret that the Reservation Stack Analysis (RSA) was the appropriate methodology. Second, they claim that the Regional Operator violated the filed rate doctrine because the filed rate was unclear about how much they would be charged. Finally, Petitioners contend that their charges offend Attachment Z1 because the Regional Operator neither identified the upgrade facilities that would accommodate their requests nor provided them with an estimate of the costs of such upgrades.   The DC Circuit dismiss in part the petitions for review related to the filed rate doctrine because that issue was not exhausted at the rehearing stage below. The court otherwise denied in part the petitions for review. The court explained that FERC appropriately noted that the purpose of Attachment Z1 is to identify new transmission facilities or new upgrades to existing facilities, while Attachment Z2 is designed to calculate a customer’s obligation to pay for its use of existing Creditable Upgrades funded by others. The court explained that because the difference between Attachment Z1 and Attachment Z2 arises out of their plain texts, and FERC’s orders acknowledged that difference, FERC “would clearly have acted on [this] ground even if the other [grounds] were unavailable.” Therefore, denying the petitions for review on this issue is consistent with precedents. View "Xcel Energy Services Inc. v. FERC" on Justia Law

Appellant was charged with unlawful possession of a firearm by a person who has been convicted of a felony in violation of 18 U.S.C. Section 922(g)(1). He moved to suppress the firearm, contending that it was the fruit of an unlawful seizure. The district court denied the motion, reasoning that Appellant had not been seized until the second time he was told to show his waistband, by which time, in the court’s view, reasonable suspicion supported the seizure.   The DC Circuit vacated the denial. The court concluded that Appellant had been seized the first time the officer told Gamble to show his waistband, a statement the district court viewed to be a “demand” or “command” by the officer. The government neither contests that characterization nor attempts to show that there was reasonable suspicion for a seizure at that time. The court noted that while the government “believe that this case presents an opportunity for this Court to re-examine the wisdom of Brodie,”, a panel of the court is bound by Brodie in materially indistinguishable circumstances like those in this case. View "USA v. Johnnie Gamble" on Justia Law

Appellant was convicted of wire fraud and other offenses for embezzling over one million dollars from her former employer, Global Management Systems, Inc. On appeal, Appellant sought to set aside both her convictions and her sentence. Appellant contends that the district court erred in admitting evidence of her embezzling from a different employer to prove her intent and lack of mistake concerning the offenses charged in this case. With respect to her sentence, Appellant challenged the district court’s application of a sentencing enhancement for her use of sophisticated means to conceal her scheme, and she submits that her eight-year sentence of imprisonment is unreasonable.   The DC Circuit rejected Appellant’s arguments and affirmed her convictions and sentence. The court wrote that Appellant insists that a sophisticated means enhancement was inappropriate because the “most unsophisticated offender” could set up an email address or obtain a mailbox. The court explained that it does not assess the sophistication of a defendant’s concealment actions piecemeal.   Here, Appellant did not just set up an email address or a mailbox. Rather, she took those actions as part of an overall scheme to impersonate a former employee so as to enable concealing her offense from GMSI: she set up an email address in the employee’s name and used that account to author and send several emails to GMSI that purported to be from employee, and she obtained a mailbox in the name of a fictitious entity bearing the employee’s name so that she could then obtain checks listing that address for her use in writing checks that appeared to come from employee’s business. View "USA v. Eleanor Milligan" on Justia Law

The Federal Energy Regulatory Commission must ensure that the rules for funding new transmission facilities are just and reasonable. A funding regime is not just and reasonable if it makes one party foot the bill for a project with broad benefits. Old Dominion Electric Cooperative v. FERC, 898 F.3d 1254, 1255 (D.C. Cir. 2018). Here, two transmission owners and a utility company say FERC approved an unjust and unreasonable change to the transmission-funding regime in a region managed by Southwest Power Pool. The new regime, the Petitioners say, will likely force transmission owners to pay for projects that benefit the entire power grid. They petitioned for judicial review.   The DC Circuit denied the petitions for judicial review. But the Petitioners oversell the risk that the new regime will foist the costs of new projects on individual owners. For that to happen, the regime’s primary mechanisms for allocating costs would have to fail. In any case, FERC may balance the need to ensure that transmission owners bear perfectly proportional costs and benefits with other policy goals. Consolidated Edison Co. v. FERC, 45 F.4th 265, 286 (D.C. Cir. 2022). It did that here by approving a regime that allows participants in regional transmission zones to collaborate on selecting and funding new projects. View "Evergy Kansas Central, Inc. v. FERC" on Justia Law