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

The DC Circuit granted petitions for review asking the court to set aside the Department's decisions imposing sanctions on petitioners for violating the Horse Protection Act. The Supreme Court subsequently decided Lucia v. SEC, 138 S. Ct. 2044 (2018), holding that the SEC's ALJs had not been appointed in compliance with the Appointments Clause. In light of Lucia, the government agrees with petitioners that the ALJ who presided over petitioners' cases was improperly appointed, and moved for vacatur of the challenged orders. Petitioners oppose the government's motion, seeking to address a number of additional challenges in advance.In regard to petitioners' argument that the dual layers of for-cause-removal protections for the Department's ALJs unconstitutionally limit the President's removal power under Free Enterprise Fund v. PCAOB, 561 U.S. 477, 492 (2010), the court concluded that petitioners have forfeited their argument by failing to raise it before the ALJ or Judicial Officer, and thus the argument is subject to a mandatory, non-excusable, issue-exhaustion requirement imposed by statute. The court concluded that petitioners preserved the remainder of their claims before the agency, but they fare no better in terms of obtaining additional relief from the court at this time. View "Fleming v. United States Department of Agriculture" on Justia Law

The DC Circuit reversed the district court's grant of summary judgment for the government in an action brought by the government seeking to collect a settlement against defendant. The court first rejected defendant's claim that the settlement contract is unenforceable because the parties omitted essential terms.In regard to defendant's claim that the district court should have granted him summary judgment because the government brought its suit too late, the court concluded that there is a material and disputed question of fact regarding performance that the district court should resolve after a bench trial. In this case, the government had six years to sue for breach of contract; the government filed suit in April 2016; and, if defendant breached the contract before April 2010, then the government's suit was untimely. Accordingly, the court remanded for further proceedings. View "United States v. Greer" on Justia Law

When Medicare overpays hospitals, it offsets that mistake by reducing future payments. By 2013, Medicare was out $11 billion because of new diagnostic codes and bookkeeping that did not keep up. Congress required that the Secretary of Health and Human Services recoup that amount by the end of fiscal year 2017 by reducing the base rate (standardized amount) paid for inpatient care and directed the Secretary to adjust the base rate by 0.5% each year through 2023, 129 Stat. 87, 163 (2015). Subsequently, while reviewing the 2017 budget, the Secretary realized that a -3.2% adjustment would leave the agency short of its $11 billion goal and announced a -3.9% adjustment. Congress then told the Secretary to increase the base rate by 0.4588% (not 0.5%) in 2018, 130 Stat. 1033, 1320 (2016). In 2017, the Secretary adjusted the base rate -3.9%. The agency met its goal. In 2018, the Secretary adjusted the base rate -3.4412%.Medicare providers sued, arguing that the Secretary should have reversed that expedient at the end of 2017 rather than carry it over into 2018, costing the hospitals $840 million in lost payments. The D.C. Circuit affirmed the dismissal of the suit. While the hospitals felt a “significant financial impact” from the -0.7% adjustment, Section 7(b)(5) bars judicial review of adjustments made under the Act. View "Fresno Community Hospital and Medical Center v. Cochran" on Justia Law

Participants in Georgetown University retirement plans sued the University and individual plan fiduciaries, seeking to bring individual and representative class action claims for breach of fiduciary duty under the Employee Retirement Income Security Act (ERISA) 29 U.S.C. 1001–1461. They alleged that the plans paid excessive fees for record-keeping services and included investment options that consistently underperformed their benchmarks. In January 2019, the district court dismissed the complaint without prejudice, citing Article III standing as to some aspects of plan management, such as the inclusion of investment options neither plaintiff had selected. Regarding the duty of prudence, the court found that the excessive recordkeeping fees allegations provided no factual support for the assertion that the plans should pay only $35/year per participant. In May, the court denied as untimely their motion for leave to file an amended complaint.The D.C. Circuit vacated. Dismissal of a complaint without prejudice is generally not a final appealable order. Exceptions that apply where the record clearly indicates that the district court has separated itself from the case do not apply to this case. The January Order did not enter a final, appealable judgment; the district court erred when considering the motion to amend the complaint in refusing to apply the Rule 15(a)(2) standard, rather than the more restrictive standards under Rules 59(e) and 60(b). View "Wilcox v. Georgetown University" on Justia Law

A 2017 “tweet” by @realDonaldTrump stated: “The Amazon Washington Post fabricated the facts on my ending massive, dangerous, and wasteful payments to Syrian rebels fighting Assad.” BuzzFeed requested CIA records about Agency payments to Syrian rebels, citing the Freedom of Information Act, 5 U.S.C. 552(a)(3)(A). The Agency invoked Exemptions 1 and 3. The district court granted the Agency summary judgment, explaining that the “tweet did not mention the [Agency] or create any inference that such a program would be linked to or run by the [Agency].”BuzzFeed sent another, more broadly stated, request. The Agency asserted that a response would reveal whether it had an intelligence interest in, intelligence sources about, and connection to programs related to Syrian rebels — information exempt from disclosure under Exemptions 1 and 3. Exemption 1 covers “matters”2 that are “specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy. Exemption 3 covers matters “specifically exempted from disclosure by statute,” the National Security Act qualifies as a withholding statute under Exemption 3, 50 U.S.C. 3024(i)(1).The district court granted BuzzFeed summary judgment, holding that the tweet officially acknowledged “the government’s intelligence interest in the broader categories of records that BuzzFeed has requested.” The D.C. Circuit reversed. The tweet was not an official acknowledgment of the existence (or not) of Agency records. View "Leopold v. Central Intelligence Agency" on Justia Law

Plaintiff, the President of the American Postal Workers Union, filed suit against two union members, Jerry Stidman and Jonathan Kelley, for defamation. Plaintiff is a District of Columbia resident, Stidman is an Indiana resident, and Kelley is a Wisconsin resident. Stidman and Kelley moved to transfer the case to the Southern District of Indiana or, in the alternative, dismiss it under Federal Rules of Civil Procedure 12(b)(2) and (b)(3). The district court dismissed the case for improper venue.The DC Circuit vacated the district court's order dismissing the case and remanded for further proceedings. The court concluded that the district court failed to provide a "sound prudential justification" for addressing venue before personal jurisdiction, nor is one easily ascertainable. In this case, the venue analysis involves issues that the court has yet to consider, including where publication occurs when allegedly defamatory material is published on both a public website and a limited access online social media page, as well as the significance of where the harm caused by defamation is felt. The court reasoned that dealing first with the venue question would neither provide "an easier resolution of the case," nor prevent the court from having to "decide a question of . . . law that it has not heretofore decided." The court stated that diving into the venue analysis required the district court to address previously undecided questions that it, and the court, might otherwise never have to face. View "Dimondstein v. Stidman" on Justia Law

In these consolidated cases, petitioners challenge four provisions of the EPA's 2015 and 2018 rules implementing the National Ambient Air Quality Standards for ozone. Petitioners challenge four features of the 2018 Rule: (1) the interprecursor trading program, as well as provisions (2) allowing states to demonstrate compliance with the Act’s reasonable further progress milestone requirements through an implementation-based method, (3) allowing states to choose between two options for the reasonable further progress baseline year, and (4) allowing nonattainment areas to use already-implemented measures to satisfy the Act's contingency measures requirements.The DC Circuit vacated two provisions—the interprecursor trading program and the interpretation of the Clean Air Act's contingency measures requirements—because they contravene the statute's unambiguous language. The court vacated another provision—the implementation of the milestone compliance demonstration requirement—because it rests on an unreasonable interpretation of the statute. Finally, the court denied the petition for review with respect to the alternative baseline years provision. Therefore, the court granted in part and denied in part the petitions for review. View "Sierra Club v. Environmental Protection Agency" on Justia Law

Petitioner, a defense attorney with no client, petitioned to reverse a procedural ruling excluding the public from a classified hearing in an appeal filed by other attorneys who, like plaintiff, have no client. Because most proceedings for Guantanamo Bay detainees are open to the public, the attorney's desire to watch the hearing would not normally have been a problem. However, because this particular hearing concerned classified information, the military judge closed it.The DC Circuit noted that the attorney may or may not have prudential standing, but the court need not address the issue because the court can dismiss the case based on lack of subject matter jurisdiction. In this case, the attorney ultimately appeals the military judge's decision to close the hearing. The court explained that the attorney does not appeal a conviction, an actual final judgment, but rather a decision. Finally, the court rejected the attorney's argument under the collateral order doctrine. View "Sundel v. United States" on Justia Law

The DC Circuit held that the Corps violated the National Environmental Policy Act (EPA) by issuing an easement allowing the Dakota Access Pipeline to transport crude oil through federally owned land at the Lake Oahe crossing site without preparing an environmental impact statement despite substantial criticisms from the Tribes.The court rejected the Corps' and Dakota Access' contention that the district court applied the wrong standard by relying on National Parks Conservation Association v. Semonite, 916 F.3d at 1083, which emphasized the important role played by entities other than the federal government. The court explained that the Tribes' unique role and their government-to-government relationship with the United States demand that their criticisms be treated with appropriate solicitude. The court concluded that several serious scientific disputes in this case means that the effects of the Corps' easement decision are likely to be "highly controversial." The court also noted that, although the risk of a pipeline leak may be low, that risk is sufficient that a person of ordinary prudence would take it into account in reaching a decision to approve the pipeline's placement, and its potential consequences are therefore properly considered. The court affirmed the district court's order vacating the easement while the Corps prepares an environmental impact statement. However, the court reversed the district court's order to the extent it directed that the pipeline be shut down and emptied of oil. View "Standing Rock Sioux Tribe v. United States Army Corps of Engineers" on Justia Law

The DC Circuit denied a petition for review challenging FERC's determination that fuel transported by pipeline to Orlando's airport—after being delivered to the Port of Tampa—moves intrastate. The court upheld the ALJ's finding, under the three Northville factors, that the stop in Tampa broke the continuity of interstate transportation, and so the jet fuel moved intrastate through the Central Florida Pipeline. Therefore, FERC lacked jurisdiction to regulate the pipeline rates. The court rejected petitioners' claims that FERC misapplied the Northville factors; the Northville factors are inadequate to make the determination; the Commission misinterpreted the teachings of old Supreme Court cases: Texas & New Orleans R.R. Co. v. Sabine Tram Co., 227 U.S. 111 (1913); Carson Petrol. Co. v. Vial, 279 U.S. 95 (1929); United States v. Erie R.R. Co., 280 U.S. 98 (1929); and the Airlines' overarching intent to transport the fuel from ships through Tampa to Orlando means the pipeline movement is interstate in nature. View "Aircraft Service International, Inc. v. Federal Energy Regulatory Commission" on Justia Law