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

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

Engleson, vice president of an Akron insurance agency, suffered from medical conditions, including Crohn’s disease and depression. He resigned in 2001 and sought long-term disability benefits from the company’s group plan, managed by Unum. Unum denied his claim weeks later, reasoning that Engleson’s clinical documentation did not establish that his symptoms were so debilitating that he was precluded from working. Unum denied an appeal in October, 2001 and a second appeal with additional supporting information in November, 2001. In 2007, Engleson returned to Ohio and to the agency, but in August, 2008, he filed another claim for disability benefits. Unum granted his request, with the date of disability denoted as August 5, 2008. Unum would not provide additional appeal review of the 2001 claim. Engleson filed suit in 2009, under 29 U.S.C. 1132(a)(1)(B) and the Employee Retirement Income Security Act, alleging that he was not afforded a full and fair review of his claim and that Unum breached its fiduciary duties. The district court held that the three-year contractual limitations period barred the suit with respect to his 2001 claim. The Sixth Circuit affirmed, holding that the untimely filing was not excusable. View "Engleson v. UNUM Life Ins. Co. of Am." on Justia Law

The Center, a licensed nursing home in Springfield, Tennessee, has about 100 employees, providing care to about 120 residents. An executive director oversees the facility, assisted by department heads, including a director of nursing for each of the facility’s two wings. There are 12 RNs, 10 licensed practical nurses (LPNs), and 46 certified nursing assistants (CNAs). RNs and LPNs, called “charge nurses,” report to the director of nursing. Two charge nurses are generally assigned to each wing at a time. The Union petitioned the NLRB, seeking to represent the RNs in collective bargaining. The Center objected, claiming that the RNs were “supervisors” under the Act, not permitted to unionize, 29 U.S.C. 152(3), 157. The regional director concluded that the RNs were not supervisors, certified the bargaining unit, and directed an election. The next day, the RNs elected the Union as their bargaining representative. The Center refused to bargain with the Union, which filed a complaint of unfair labor practices. The Board sustained the Union’s complaint and ordered the Center to bargain. The Sixth Circuit vacated and denied a petition for enforcement, finding that the the RNs have authority to discipline CNAs using their independent judgment and are supervisors. View "GGNSC Springfield LLC v. Nat'l Labor Relations Bd." on Justia Law

Triple A, a Michigan corporation, has offices in Dearborn, Michigan, the Congo (previously known as Zaire), and Sierra Leone. In 1993, Zaire ordered military equipment worth $14,070,000 from Triple A. A South Korean manufacturer shipped the equipment to Zaire at Triple A’s request. For 17 years, Triple A sought payment from Zaire and then the Congo without success. In 2010, Triple A sued the Congo for breach of contract. The district court dismissed the case, citing lack of jurisdiction under the Foreign Sovereign Immunities Act, 28 U.S.C. 1602. The Sixth Circuit affirmed, citing the language of the Act, under which federal courts have jurisdiction “in any case in which the action is based upon” the following: [1] a commercial activity carried on in the United States by the foreign state; or [2] upon an act performed in the United States in connection with a commercial activity of the foreign state elsewhere; or [3] upon an act outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere and that act causes a direct effect in the United States. View "Triple A Int'l, Inc. v. Democratic Republic of the Congo" on Justia Law

The Weixels filed a Chapter 7 petition; they were not eligible for relief under Chapter 13 due to the amount of their debt. The bankruptcy court dismissed, 11 U.S.C. 707(b)(1), (2) and (3), after considering bank statements, showing that when the Weixels’ bank account had been repeatedly overdrawn, they continued to spend money on entertainment and the trustee’s conclusion that the Weixels, with budget adjustments, had monthly disposable income of $2,308. The, Bankruptcy Appellate Panel affirmed, rejecting arguments that the bankruptcy court failed to consider the Weixels’ scheduled priority tax debt and their household’s future housing expense. View "In re: Weixel" on Justia Law

Bistline pled guilty to knowingly possessing 305 images and 56 videos of child pornography on his computer, many of which depicted 8- to 10-year-old girls being raped by adult men. His recommended Guidelines sentence was 63 to 78 months’ imprisonment. The district court sentenced Bistline to a single night’s confinement in lockup, plus 10 years’ supervised release. The Sixth Circuit vacated, noting that Bistline’s guidelines range should have been “the starting point” for considering the factors in 18 U.S.C. 3553(a) and that the court was entitled to consider Bistline’s age, health, and family circumstances, but that those could not justify the sentence imposed. On remand, the district court again imposed a sentence of one day’s confinement and 10 years’ supervised release, stating: “If I have got to send somebody like Mr.Bistline to prison, I’m sorry, someone else will have to do it. I’m not going to do it.” The Sixth Circuit vacated and remanded for reassignment and resentencing. View "United States v. Bistline" on Justia Law

Mendoza drove a truck from North Carolina to Tennessee with Tavera as a passenger. The truck contained construction equipment. A large quantity of methamphetamine was hidden under nails. The truck was stopped after being followed as part of a sting operation. At trial, Tavera, a roofer, testified that he did not know about the drugs and that he thought he was going to Tennessee to view a construction project. Tavera was convicted of participating in a methamphetamine drug conspiracy and sentenced to 186 months of imprisonment. He subsequently learned that days before the trial Mendoza had participated in plea negotiations in which he told Taylor, the prosecution’s trial lawyer, that Tavera had no knowledge of the drug conspiracy. Mendoza later pled guilty and changed his story. Tavera filed an appeal and a year later moved for a new trial in the district court. The district court has not ruled on the motion. The Sixth Circuit vacated the conviction, based on the “Brady” violation, calling the case “not close,” and recommended that the U.S. Attorney’s office conduct an investigation of why the prosecutorial error occurred. View "United States v. Tavera" on Justia Law

Daley opened an IRA with Merrill Lynch, rolling over $64,646 from another financial institution. He signed a contract with a "liens" provision that pledged the IRA as security for any future debts to Merrill Lynch. No such debts ever arose. Daley never withdrew money from his IRA, borrowed from it or used it as collateral. Two years later, Daley filed a Chapter 7 bankruptcy petition and sought protection for the IRAs, 11 U.S.C. 522(b)(3)(C). The trustee objected, contending that the IRA lost its exempt status when Daley signed the lien agreement. The bankruptcy court and the district court ruled in favor of the trustee. The Sixth Circuit reversed. An IRA loses its tax-exempt status if the owner "engages in any transaction prohibited by section 4975 of the tax code. There are six such transactions, including “any direct or indirect” “lending of money or other extension of credit” between the IRA and its owner, 26 U.S.C. 4975(c)(1)(B). Daley never borrowed from the IRA, and Merrill Lynch never extended credit to Daley based on the existence of the IRA. View "Daley v. Mostoller" on Justia Law

Hrivnak filed a purported class action under the Fair Debt Collection Practices Act, 15 U.S.C. 1692–1692p, and Ohio consumer-protection law, Ohio Rev. Code §§ 1345.01–.99, 4165.01–04, seeking statutory, compensatory, and punitive damages exceeding $25,000, and injunctive and declaratory relief. The suit was based on the conduct of debt management companies and a law firm in dunning hi on credit card debts. The defendants made an offer of judgment of $7,000 plus costs and attorney’s fees, under Civil Rule 68. Hrivnak rejected the offer. The district court rejected the defendants’ claim that the offer rendered the suit moot. The Sixth Circuit affirmed, characterizing defendants’ argument as asserting that claims with little to no chance of success should be dismissed as moot whenever they are mixed in with promising claims that a defendant offers to compensate in full. View "Hrivnak v. NCO Portfolio Mgmt., Inc." on Justia Law

Stafford was convicted of violating 18 U.S.C. 922(g)(1), felon in possession of a firearm and ammunition, and sentenced to 262 months of imprisonment. His guideline calculation was enhanced based on armed-career-criminal status; the fact that the firearm was stolen; possession of a firearm in relation to a felony offense; and reckless endangerment during flight from law enforcement. The Sixth Circuit affirmed, holding that the evidence supported the verdict and that the district court did not err in allowing gunshot-residue evidence or related expert testimony. The court properly applied the the Armed Career Criminal Act enhancement and enhancements under the Sentencing Guidelines. The sentence was procedurally reasonable and the “residual clause” of the Armed Career Criminal Act is not void for vagueness. View "United States v. Stafford" on Justia Law