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

A purported class action alleged that Beachwood Hair Clinic violated the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227, by disseminating more than 37,000 unsolicited fax advertisements in 2005 and 2006. Facing more than $18 million in statutory damages, Beachwood and its insurer, Acuity, agreed to a $4-million class settlement with the Ohio-based class representative, Siding. The settlement stipulated that separate litigation between Acuity and Siding would resolve a $2-million coverage dispute under Beachwood’s policy. Siding sought a declaratory judgment under Beachwood’s policy. The district court granted summary judgment to Acuity denying coverage. The Sixth Circuit vacated, finding that Siding did not establish diversity jurisdiction, which requires an amount in controversy greater than $75,000, 28 U.S.C. 1332(a). Unable to identify a singular interest exceeding $75,000 in the remaining $2-million coverage dispute, Siding sought to aggregate its interest with putative class members to satisfy that requirement, or to have the court consider the value of the policy dispute from Acuity’s perspective: $2 million. Acuity suggested ancillary jurisdiction via the settlement judgment in the underlying class action. The court rejected all arguments. View "Siding & Insulation Co. v. Acuity Mut. Ins. Co." on Justia Law

American Satellite, a third party retailer of Dish Network satellite television services, received a call from a potential customer. A woman, who identified herself as “Dickley,” provided what she claimed to be her social security number. In actuality, the number belonged to a man named Bickley. Dickley was an identity thief. The agent entered Dickley’s name and social security number into an interface that connects to credit reporting agencies. Unable to verify the information, American Satellite informed Dickley that her attempt to open an account was declined. Bickley later received a credit report indicating that Dish had made an inquiry on his name. Dish informed him that someone had attempted to open an account in his name, providing a recording of the conversation between the agent and the identity thief. A year later, despite knowing that the inquiry had prevented the theft of his identity, Bickley filed suit under the Fair Credit Reporting Act, 15 U.S.C. 1681b, alleging request and use of his credit report without a “permissible purpose” and sought emotional distress damages. The district court entered summary judgment for Dish, including a counterclaim for abuse of process. The Sixth Circuit affirmed, referring to the conspicuous underdevelopment of key factual detail in Bickley’s complaint and in briefs as “bordering on deceitful” and to the adage that no good deed goes unpunished. View "Bickley v. Dish Network LLC" on Justia Law

The plaintiffs deal in silver and gold jewelry, ingots, numismatics, and other related items. They challenged the facial constitutionality of the Precious Metals Dealers Act, Ohio Rev. Code 4728, alleging violation of the commercial speech rights of businesses dealing in precious metals, vagueness, and violation of the Fourth Amendment by imposing overly burdensome retention, reporting, and record-keeping requirements. The district court granted a preliminary injunction, finding that the Act violated the First Amendment because only those engaged in commercial speech are subject to its licensing requirement. The injunction prohibited the state from requiring licenses or fining those, like plaintiffs, who previously violated the statute. The Sixth Circuit reversed, applying “rational basis” review. The Act does not burden the commercial speech rights of unlicensed precious metals dealers. Such dealers do not have a constitutional right to advertise or operate a business does not comply with reasonable requirements of Ohio law and cannot “hold themselves out” to the public without a license, regardless of whether they advertise. The issue is not advertising, but whether a business holds itself out to the public, which can occur by posting a sign, placing goods in a window, or simply conducting business in a manner that is visible to the public. The court noted the public interest in the statutory scheme .View "Liberty Coins, LLC v. Goodman" on Justia Law

Bray is an antiabortion activist and wrote a book, A Time to Kill. In 1985, Bray was convicted for a felony relating to physical damage to abortion centers. He spent four years in prison. Planned Parenthood (PPCW) was a plaintiff in a 1995 suit against antiabortion activists (including Bray) for intimidation by threat of force under the Freedom of Access to Clinic Entrances Act, 18 U.S.C. 248. In 2005, PPCW sought to collect its $850,000 judgment and obtained a writ of execution authorizing seizure of specified property. The Bray family filed a “Bivens” suit, claiming that U.S. Marshals conspired with PPCW to seize their property in an unconstitutional manner. The complaint alleged that during a “surprise raid” Bray was required to sit on his couch while flak-jacketed Marshals, advocates for political positions that Bray despised, plus unknown persons, seized the books, papers, computers and cameras, of Bray and his family, excepting only children’s books and Bibles. Bray was not allowed to leave the couch or to call his lawyer. Eventually a Marshal called Bray’s lawyer. The district court dismissed. The Sixth Circuit affirmed, noting that Bray had settled with all defendants, except the Marshals, who were entitled to qualified immunity in carrying out a presumptively valid federal court order, even by “highly questionable ways.” The unconstitutionality of certain actions was not then clearly established with sufficient specificity. If the alleged facts are true, the incident was “more like home raids by Red Guards during China’s Cultural Revolution than like what we should expect” in the U.S., even if Bray’s ideas are “repugnant.”View "Bray v. Planned Parenthood Columbia-Willamette, Inc." on Justia Law

In 1997, the Miami Township police department fired Sergeant Young for allegedly forcing sex on a woman while on the job; the termination was overturned by an arbitrator. The arbitrator concluded that the department had not proven its allegations, noting that DNA samples from the scene did not match Young, that Young and his accuser had been in a relationship, and that the accuser had a history that cast doubt on her credibility. In 2010, the newspaper published the statement “Young had sex with a woman while on the job” in an article about the suspension of another officer. Young sued for defamation and obtained a $100,000 verdict. The Sixth Circuit affirmed. There was sufficient evidence for a jury to decide that the editor knew that the accusation was probably false and published it regardless. View "Young v. Gannett Satellite Info.Network, Inc." on Justia Law

Grand Resort, which has operated in the Great Smoky Mountains since 1982, claims that TripAdvisor’s publication of a survey that concluded that Grand Resort was the dirtiest hotel in America caused irreparable damage to its business and that TripAdvisor used a flawed rating system that distorted actual performance and perspective. The district court dismissed, reasoning that the “dirtiest hotels” list is protected opinion; it reflects TripAdvisor’s users’ subjective opinions and is not capable of being defamatory. The court rejected a motion to amend to add claims of trade libel-injurious falsehood and tortious interference with prospective business relationships to the claims of false light-invasion of privacy and of defamation. The Sixth Circuit affirmed, noting that amendment of the complaint would be futile. View "Seaton v. TripAdvisor, LLC" on Justia Law

The Michigan anti-begging statute, Mich. Comp. Laws 900, has existed since at least 1929 and provides that “[a] person is a disorderly person if the person is any of the following: ... (h) A person found begging in a public place.” A person convicted under section 750.167(1)(h) is guilty of a misdemeanor punishable by imprisonment for not more than 90 days or a fine of not more than $500.00, or both. The Grand Rapids police recorded 409 incidents of police enforcing the anti-begging law from 2008–2011. Plaintiffs, two homeless adults, were arrested. One was holding signs saying: “Cold and Hungry, God Bless” and “Need Job, God Bless.” The other, a veteran, needed money for bus fare, and asked a person on the street: “Can you spare a little change?” The Sixth Circuit affirmed that the law was unconstitutional. Begging is a form of solicitation that the First Amendment protects and the statute cannot withstand facial attack because it prohibits a substantial amount of solicitation, but allows other solicitation based on content. View "Speet v. Schuette" on Justia Law

The Contributor produces a street newspaper to educate people about homelessness and poverty and helps develop job skills for homeless and formerly homeless persons, employing them as street vendors. Two such vendors were cited for attempting to sell issues of the newspaper on the streets and sidewalks of Brentwood, Tennessee, under an ordinance that provided that no person could use or occupy any portion of the city street, alley, sidewalk or the public right-of-way to sell any goods or materials. The city then revised the ordinance to provide that it should not “be construed as prohibiting the sale or distribution of newspapers, magazines, periodicals, handbills, flyers or similar materials, except that: (1) Such activity shall be prohibited on any portion of any street within the city. (2) Such materials shall not be handed to the occupant of any motor vehicle that is on a street, nor shall any action be taken which is intended or reasonably calculated to cause the vehicle occupant to hand anything to the person selling or distributing the materials." The district court upheld the revised ordinance as leaving open adequate alternative channels of communication. The Sixth Circuit affirmed. View "The Contributor v. City of Brentwood" on Justia Law

The Tennessee Adult-Oriented Establishment Registration Act of 1998 is a county-option state law to address deleterious secondary effects associated with adult-oriented businesses, including crime, spread of venereal disease, and decreased property values. Adult-oriented establishments that are subject to the Act, and their employees, must obtain licenses. The Act prohibits nudity, certain sexual activities, touching of certain anatomical areas, all physical contact during performances, sale or consumption of alcohol on the premises; it requires that all performances occur on a stage at least 18 inches above floor level with all performers at least six feet away from customers and other performers. Shelby County adopted the Act in 2007. Owners of adult establishments challenged the ordinance. Following denial of a preliminary injunction, the district court granted summary judgment upholding the law, except with respect to a claim of facial invalidity attacking the reasonableness of coverage of establishments featuring “briefly attired” dancers. The court then rejected that challenge. The Sixth Circuit affirmed, rejecting First Amendment challenges. View "Entm't Prods., Inc. v. Shelby Cnty." on Justia Law

In 2011, the Michigan legislature enacted laws that barred sexually oriented businesses from displaying signs on the premises that contained more than “words or numbers,” Mich. Comp. Laws 125.2833; and imposed similar restrictions on off-site billboards, Mich. Comp. Laws 252.318a. In response to a First Amendment challenge, the district court preliminarily enjoined enforcement. The state stipulated to a final judgment declaring both laws facially unconstitutional and permanently enjoining enforcement. Two months later, Platinum, represented by the same attorney who had won the first lawsuits, sued the same defendants, challenging the same laws on the same free speech grounds. The district court dismissed. The Sixth Circuit affirmed. The legal possibility that “this Governor or this Attorney General will enforce these laws in the face of these injunctions is: zero.” Platinum Sports has no cognizable theory of injury. View "Platinum Sports Ltd. v. Snyder" on Justia Law