Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

Tennessee resident Lombard acquired a 1997 Lincoln Town Car in 2004. The car was partially manufactured, and its final assembly completed, in 1996 at Ford’s Wixom, Michigan plant. In March 2007, the Lincoln, which was licensed, registered, and insured in Tennessee, allegedly caught fire in Lombard’s driveway, causing damage to the car, Lombard’s residence, and personal property. Lombard’s insurers reimbursed Lombard for his losses and, as subrogees, sued Ford, asserting products liability, breach of warranty and negligence claims, alleging that the fire was due to a defective cruise control system. The district court dismissed, finding that Tennessee law governed and that Tennessee’s statute of repose for products liability actions bars the claims. The Sixth Circuit affirmed, after examining Michigan choice of law rules. The conclusion that Michigan’s interests do not “mandate” that Michigan law be applied despite Tennessee’s interests was not erroneous. View "Std. Fire Ins. Co. v. Ford Motor Co." on Justia Law

The plant’s union and TRW negotiated collective bargaining agreements, which included provisions for healthcare benefits for retirees. The last CBA became effective in 1993 and was scheduled to expire in 1996. The plant closed in 1997. TRW and the union entered into a termination agreement that provided that any beneficiary, who is receiving or entitled to receive any payment and/or benefit under the CBA, “shall continue to receive or be entitled to receive such payment and/or benefit as though the CBA and Pension Plan had remained in effect.” In 2011, TRW terminated prescription drug coverage for Medicare-eligible retirees, replacing it with an annual contribution to a health reimbursement account. Plaintiffs claimed that this change modified their benefits in violation of TRW’s contractual obligation and filed a purported class action under the Labor Management Relations Act, 29 U.S.C. 185(a), and a claim for benefits under the Employment Retirement Income Security Act, 29 U.S.C. 1132(a)(1)(B). The district court granted TRW’s motion to compel arbitration. The Sixth Circuit affirmed as to the two named Plaintiffs, declining to address the rights of hypothetical plaintiffs. View "VanPamel v. TRW Vehicle Safety Sys., Inc." on Justia Law

In 2009, the district court sentenced Defendant to incarceration, followed by two years of supervised release, for the sale of counterfeit obligations. Supervised release began in November, 2010. In 2012, the district court transferred jurisdiction of Defendant’s supervised release. Before the transfer, Defendant left the district without permission on four occasions and was arrested twice for promoting prostitution. Defendant entered a guilty plea and waived his right to appeal. The district court sentenced Defendant to 13 months of incarceration, as recommended. Defendant appealed, arguing that his plea was invalid because the violations upon which it was based occurred before transfer of jurisdiction of his supervised release and that he was then unaware of potential issues with the court’s jurisdiction. The Sixth Circuit affirmed, holding that the district court had jurisdiction to revoke release and that Defendant’s guilty plea was valid under 18 U.S.C. 3605, which authorizes a transferee court to revoke a term of supervised release for violations committed prior to transfer and gives transferee courts equal power to terminate or reduce the conditions of supervised release. The court noted the need to avoid creating a “twilight zone” whereby supervisees would obtain immunity for violations committed, but not discovered, before transfer. View "United States v. Adams" on Justia Law

Romo was sleeping in the driver’s seat of a parked car, intoxicated, when he was approached by Officer Largen, who arrested Romo for operating a vehicle while intoxicated, based on Largen’s observation of Romo’s having driven the car minutes earlier. Romo claimed that he had not been driving and filed a 42 U.S.C. 1983 suit claiming that Largen violated his constitutional rights and committed several intentional torts. The district court denied Largen’s motion for summary judgment based on qualified-immunity, finding that a jury could disbelieve Largen’s claim that he had seen a very similar car being driven in violation of traffic laws. The Sixth Circuit affirmed, noting that it was bound by the district court’s finding that a genuine dispute of material fact existed. View "Romo v. Largen" on Justia Law

In 2004, Akron held promotional exams for fire department positions of Captain and Lieutenant. The exams were prepared, administered and scored by an outside testing consultant. Each exam contained a 100-question multiple choice section on technical knowledge and two oral assessment exercises. The Lieutenant exam also required a written work-sample; the Captain exam had an additional oral group exercise. Candidates were placed on an eligibility list in an ordered ranking. Plaintiffs alleged disparate-impact age discrimination against 23 firefighters based on age, 29 U.S.C. 621; that the exam for Lieutenant had an adverse impact on three African-American firefighters and that the exam for Captain had an adverse impact on 12 Caucasian firefighters based on race, 42 U.S.C. 2000e; and state law violations. The district court concluded that the exam adversely impacted 12 Caucasian Captain candidates and three African-American Lieutenant candidates on the basis of race, and adversely impacted eleven Lieutenant candidates on the basis of their age and ordered promotion of 18 candidates. Each Lieutenant candidate was awarded $9,000 in compensatory damages and $72,000 in front pay. Captain candidate were awarded $10,000 in compensatory damages and $80,000 in front pay. The Sixth Circuit affirmed. View "Howe v. City of Akron" on Justia Law

In 2001 Fitzpatrick killed his girlfriend, her 12-year-old daughter, and a neighbor. There were questions about his mental health. A pretrial hearing was held because of Fitzpatrick’s confession to his cousin that the devil had made him commit the crimes. The court took no action, based on the statement of the lead investigator that officers had no concerns about competence. After opening statements, in a sidebar, defense counsel stated that Fitzpatrick had indicated his desire to plead guilty and that he recommended against such action. The trial court advised Fitzpatrick of its disinclination to accept a guilty plea. Fitzpatrick insisted that he did not want to wait or to “put his family through this.” When the judge disagreed, Fitzpatrick demanded to be taken out of the courtroom and reiterated that he wanted to stop the trial. Following some discussion of competency and inquiries directed to Fitzpatrick, the court accepted the plea. A panel sentenced him to death. Ohio courts affirmed the convictions and sentence, and denied post-conviction relief. The district court denied petition for habeas corpus under 28 U.S.C. 2254. The Sixth Circuit affirmed. Fitzpatrick’s statements did not give the trial court reason to believe that he did not understand the consequences of waiving a jury trial and pleading guilty. All three attorneys involved consistently represented that they thought that he was knowingly waiving his rights. View "Fitzpatrick v. Bradshaw" on Justia Law

The Authority was formed under Ga. Code 46-4-82(a) to provide member municipalities with natural gas. It operates as a non-profit, distributing profits and losses to member municipalities: 64 in Georgia, two in Tennessee, 12 in other states. It pays its own operating expenses and judgments; it is exempt from state laws on financing and investment for state entities and has discretion over accumulation, investment, and management of its funds. It sets its governance rules; members elect leaders from among member municipalities. Smyrna, Tennessee has obtained gas from the Authority since 2000, using a pipeline that does not run through Georgia. The Authority entered a multi-year “hedge” contract for gas acquisition, setting price and volume through 2014, and passed the costs on. The market price of natural gas then fell due to increased hydraulic fracturing (fracking), but Smyrna was still paying the higher price. Smyrna sued for breach of contract, violations of the Tennessee Consumer Protection Act, breach of fiduciary duty, and unjust enrichment. The district court denied the Authority’s motion to dismiss based on sovereign immunity under Georgia law and the Eleventh Amendment. The Sixth Circuit affirmed, stating that the Authority’s claim that any entity referred to as a state “instrumentality” in a Georgia statute is entitled to state-law sovereign immunity “requires quite a stretch of the imagination.” View "Town of Smyrna, TN v. Mun. Gas Auth. of GA" on Justia Law

The Fund is a multi-employer trust fund under the Taft-Hartley Act, 29 U.S.C. 186, and the Employee Retirement Income Security Act, 29 U.S.C. 1001. Blue Cross is a Michigan non-profit corporation; its enabling statute authorizes the State Insurance Commissioner to require it to pay a cost transfer of one percent of its “earned subscription income” to the state for use to pay costs beyond what Medicare covers. In 2002 the Fund converted to a self-funded plan, and entered into an Administrative Services Contract with Blue Cross, which states that Blue Cross is not the Plan Administrator, Plan Sponsor, or fiduciary under ERISA; its obligations are limited to processing and paying claims. In 2004 the Fund sued, claiming that Blue Cross breached ERISA fiduciary duties by imposing and failing to disclose a cost transfer subsidy fee to subsidize coverage for non-group clients. The fee was regularly collected from group clients. Self-insured clients were not always required to pay it. Following a first remand, the district court granted class certification and granted the Fund summary judgment. On a second remand, the court again granted judgment on the fee imposition claim and awarded damages of $284,970.84 plus $106,960.78 in prejudgment interest. The Sixth Circuit affirmed. View "Pipefitters Local 636 Ins. Fund v. Blue Cross & Blue Shield of MI" on Justia Law

In 1990 Plummer, a recognized expert in horse-breeding and the tax consequences of related investments, created the Mare Lease Program to enable investors to participate in his horse-breeding business and take advantage of tax code provision classification of horse-breeding investments as farming expenses, with a five-year net operating loss carryback period instead of the typical two years, 26 U.S.C. 172(b)(1)(G). Plummer’s investors would lease a mare, which would be paired with a stallion, and investors could sell resulting foals, deducting the amount of the initial investment while realizing the gain from owning a thoroughbred foal. If they kept foals for at least two years, the sale qualified for the long-term capital gains tax rate, 26 U.S.C. 1231(b)(3)(A). Between 2001 and 2005, the Program generated more than $600 million. Law and accounting firms hired by defendants purportedly vetted the Program. Plummer and other defendants began funneling Program funds into an oil-and-gas lease scheme. It was later discovered that the Program’s assets were substantially overvalued or nonexistent. Investors sued under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1962(c), also alleging fraud and breach of contract. The district court granted summary judgment and awarded $49.4 million with prejudgment interest of $15.6 million. The Sixth Circuit affirmed, stating that there was no genuine dispute over any material facts. View "West Hills Farms, LLC v. ClassicStar Farms, Inc." on Justia Law

Eight defendants who held positions with Clay County, Kentucky, were charged with conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1962(d), based on participation in a vote-buying scheme in three election cycles, 2002 to 2007. Candidates pooled money to pay “vote haulers” to deliver voters for a particular slate of candidates. To ensure that they voted for the correct slate, co-conspiring election officers and poll workers reviewed the ballots. When the proper slate was confirmed, the voter got a token or marking and was paid in a location away from the polls. Conspirators retained lists to avoid double payments and to keep track of whose votes could be bought in future elections and used absentee voting and voter-assistance forms to implement the scheme. When electronic voting machines were introduced, conspiring poll workers misinformed voters that they did not need to click “cast ballot” after selecting candidates; poll workers would enter the voting booth after the voter exited and change the electronic ballot to reflect the slate before casting the ballot. The Clay County Board of Elections was alleged to be the racketeering enterprise in the conspiracy. They were convicted after a seven week trial. The Sixth Circuit vacated, based on cumulative errors in evidentiary rulings. View "United States v. Adams" on Justia Law