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

Oakes filed a Chapter 7 bankruptcy petition in 2013, including Franklin, Ohio real property, valued at $160,000. PNC holds a mortgage lien on the property, which was filed in 2003. That mortgage lien was not executed in accordance with the Ohio law; Oakes’ signatures were not acknowledged before a notary public. In 2013, Ohio Rev. Code 1301.401(C) was enacted, providing that “Any person contesting the validity or effectiveness of any transaction referred to in a public record is considered to have discovered that public record and any transaction referred to in the record as of the time that the record was first filed with the secretary of state or tendered to a county recorder for recording.” The Chapter 7 Bankruptcy Trustee sought to avoid the PNC mortgage because it was not properly recorded. In the meantime, the Ohio Supreme Court held that O.R.C. 1301.401 applied to all recorded mortgages and acts to provide constructive notice of a recorded mortgage, even if that mortgage was deficiently executed. The bankruptcy court denied PNC’s motion for judgment, finding that the statutory constructive notice had no effect on a trustee’s avoidance powers as a judicial lien creditor. The Bankruptcy Appellate Panel and Sixth Circuit affirmed. A bankruptcy trustee may avoid a deficiently executed mortgage when acting as a judicial lien creditor. View "Harker v. PNC Mortgage Co." on Justia Law

After a settlement in his divorce proceeding, Debtor filed a Chapter 13 bankruptcy petition. Debtor was subsequently confined to jail for failure to pay the court-approved settlement. Debtor filed an adversary complaint seeking damages under 11 U.S.C. 362(k) for violations of the automatic stay by his former wife, Skurko, and her attorney, Gentile, by allowing the post-petition sentencing portion of a pre-petition contempt proceeding to continue despite knowing that the automatic stay was in effect. The bankruptcy court found no violation because the two did not take affirmative action post-petition to try to collect the debt, and there was no affirmative action they could take to prevent the domestic relations judge from jailing Debtor for nonpayment because the contempt motion was already ruled upon. The Sixth Circuit Bankruptcy Appellate Panel reversed. Upon the filing of Debtor’s bankruptcy, it was incumbent upon Gentile and Skurko to seek relief from the stay or to obtain a bankruptcy court determination that the stay did not apply. A creditor cannot sit idly by, appear at a collection proceeding, and allow the debtor to be jailed because he did not pay the judgment creditor’s dischargeable debt. The burden was on the creditor and her attorney to stop the proceeding once the bankruptcy was filed. View "In re Lawrence Wohleber, Jr." on Justia Law

Five federal prisoners filed habeas corpus petitions under 28 U.S.C. 2241, arguing that their respective sentences are too long under federal law. Each paid the $5 habeas filing fee in the district court and each lost his petition on the merits. Each man moved to proceed as a pauper on appeal, seeking to avoid prepaying the $505 appellate filing fee. The statute, 28 U.S.C. 1915(a)(1), says that a federal court “may authorize the commencement, prosecution or defense of any suit, action or proceeding, civil or criminal, or appeal therein, without prepayment of fees” by a person who “is unable to pay such fees.” After examining each petitioner’s financial status, the district courts granted the motions in part, requiring each petitioner to make a one-time, partial prepayment of the fee, ranging from $50 to $400. The Sixth Circuit affirmed. Nothing in the statute deprives a district court of discretion to require partial prepayment of appellate filing fees, and nothing about it alters the pre-1996-amendment practice of doing so. View "Samarripa v. Ormond" on Justia Law

Bradley worked as the general contractor on Ingersoll’s project converting an old Michigan church into a charter school, Bay City Academy (BCA). Ingersoll had previously misappropriated state funding meant for a charter school he already ran, Grand Traverse Academy, and used the funding for the new charter school project to cover his tracks. At trial, Bradley was shown to have conducted fraudulent transfers of the newly misappropriated money, failed to report the resulting sizeable deposits into his accounts in his 2011 tax filing and underpaid his taxes, and failed to file W-2s reporting his BCA employees’ wages to the IRS and to provide them with 1099s. Bradley was convicted of conspiring to defraud the United States, 18 U.S.C. 371. The Sixth Circuit affirmed, rejecting Bradley’s arguments that testimony that he underpaid his 2011 taxes constituted a prejudicial constructive amendment or variance to the indictment; that the government made improper arguments during its opening statement and rebuttal, and that the court improperly refused to instruct the jury on a lesser-included offense. The evidence of his tax filing constituted a presentation of additional evidence to substantiate charged offenses, which did not include facts materially different from those charged. The prosecutor’s statements were improper but did not constitute flagrant prosecutorial misconduct. View "United States v. Bradley" on Justia Law

Economy Linen and Towel Service faced a shortfall of qualified truck drivers and subcontracted with another firm to provide the necessary drivers. The union filed a grievance on the ground that the new drivers earned a higher hourly rate than the union-represented employees. An arbitrator ruled for the union. The district court and Sixth Circuit affirmed, noting that in reviewing arbitration awards, courts do not ask whether the arbitrator interpreted the contract correctly; “the parties bargained for an arbitrator’s interpretation of the contract, not a federal judge’s interpretation of it.” The court noted that this situation did not involve any allegations of fraud and that the arbitrator did not decide any issue outside of his authority but only determined which contractual provision controlled. View "Economy Linen & Towel Service, Inc. v. International Brotherhood of Teamsters" on Justia Law

Santos-Santos, a citizen of Mexico, entered the U.S. without inspection in 1999. In 2000, he and his wife attempted to enter Canada but were denied admission and directed back to Port Huron, where they were questioned. Both admitted to entering the U.S. illegally. The Immigration and Naturalization Service personally served Santos-Santos with a notice to appear (NTA), charging him with inadmissibility and ordering him to appear for a hearing in Detroit. The NTA listed his Chicago address and indicated that the hearing date and time were “to be determined.” On May 24, the Detroit immigration court mailed a Notice of Hearing for October 20, to the Chicago address. Santos-Santos failed to appear and was ordered removed in absentia. The order was mailed to the same address. Santos-Santos claims he did not receive that order. In 2018, Santos-Santos moved to reopen the in absentia order, stating he did not receive any notices after the NTA. The BIA upheld the denial of the motion, finding no evidence that the mailings were returned to the immigration court; Santos-Santos did not argue that the notice was addressed incorrectly or that he was having mail delivery problems or report any efforts to determine the status of his proceedings during 17 years before his motion. The Sixth Circuit denied a petition for review. Santos-Santos failed to rebut the presumption of delivery. View "Santos-Santos v. Barr" on Justia Law

After a rally for then-presidential candidate Trump, the Chicago Tribune newspaper posted a photograph on Twitter of a woman at the rally, wearing a Trump T-shirt, and giving a Nazi salute. A Twitter user posted that photograph, with a photograph of Boulger, with the false statement, “The ‘Trump Nazi’ is Portia Boulger, who runs the Women for Bernie Sanders Twitter account. It’s another media plant.” The actor and producer James Woods tweeted the same pictures, adding: Woods had more than 350,000 Twitter followers. News outlets identified the woman in the Nazi salute photograph as Peterson. Woods instead tweeted a follow-up: “Various followers have stated that the Nazi Salute individual and the #Bernie campaign woman are NOT the same person.” Boulger requested a retraction. Woods deleted the tweet and posted: “I have an opportunity to clarify something I challenged immediately when it hit Twitter. Portia A. Boulger was NOT the ‘Nazi salute lady.’” and ” “Though she supports @BernieSanders, I am happy to defend her from abuse. I only wish his supporters would do the same.” Boulger “received hundreds of obscene and threatening messages, including death threats.” Boulger sued for defamation and invasion of privacy under Ohio law. The district court extended the service deadline to August 7, Woods filed an answer on June 7, asserting insufficient service of process. The district court found that Woods waived his jurisdictional defenses but granted Woods judgment on the pleadings. The Sixth Circuit affirmed, noting the ambiguity of Woods’s tweet. Because Woods’s tweet could reasonably be read to have an innocent meaning, under the innocent construction rule the tweet, as a matter of law, is not actionable. Woods’s actions waived the jurisdictional issue. View "Boulger v. Woods" on Justia Law

The defendants took part in a decade-long scheme surreptitiously to sell tax-free cigarettes, thereby defrauding federal, state, and local governments of more than $45 million in tax revenue. The federal government eventually uncovered the scheme and charged them with 34 counts, including conspiracy to commit mail or wire fraud 18 U.S.C. 1349; conspiracy to launder money, 18 U.S.C. 1956(h); and conspiracy against the United States, 18 U.S.C. 371. Maddux pleaded guilty to 29 counts; Carman, Coscia, and Smith went to trial, where a jury convicted each of them on various counts. The Sixth Circuit affirmed their convictions and sentences--Maddux to 120 months’ imprisonment, Carman to 60 months, Smith to 42 months, and Coscia to 36 months. The scheme involved use of interstate wire communications and the United States mails; it was Congress’s prerogative to punish this combination of conduct more severely than a violation of the Jenkins Act, 15 U.S.C. 376(a), which requires cigarette sellers to file monthly reports. The court rejected an argument that the trial court should have specifically instructed the jury that defendants were not charged with a violation of either the Jenkins Act or the Cigarette Trafficking Act, 15 U.S.C. 377(a). The indictment sufficiently alleged a scheme to defraud. View "United States v. Smith" on Justia Law

In 2000, the Tribe had agreed to pay Monroe $265 million for Monroe’s 50% ownership interest in the Casino, giving the Tribe a 100% ownership interest. In 2002, the Tribe agreed to another $200 million debt in exchange for a continued gaming license from the Michigan Gaming Control Board (MGCB). In 2005, the Tribe created a new entity (Holdings), which became the Casino’s owner; pre-existing entities owned by the Tribe became Holdings' owners to allow the Tribe to refinance and raise capital to meet its financial obligations. The restructuring was approved by the MGCB, conditioned on the Tribe’s adherence to strict financial covenants. In 2005, Holdings transferred approximately $177 million to various entities. At least $145.5 million went to the original owners of Monroe. At least $6 million went to the Tribe. For three years, the Tribe unsuccessfully attempted to raise additional capital to meet its financial obligations. In 2008, the related corporate entities) filed voluntary petitions for Chapter 11 bankruptcy. The Trustee alleged that the 2005 transfers were fraudulent and sought recovery under 11 U.S.C. 544, 550. The district court and Sixth Circuit affirmed the bankruptcy court’s dismissal of the complaint on the basis of tribal sovereign immunity. The court rejected arguments that Congress intended to abrogate the sovereign immunity of Indian tribes in 11 U.S.C. 106, 101(27). View "Buchwald Capital Advisors LLC v. Sault Ste. Marie Tribe" on Justia Law

Defendants, members of an FBI/Grand Rapids task force, were searching for Davison. Neither officer was wearing a uniform; both were wearing lanyards displaying their badges. Defendants knew that Davison was a 26-year-old white male, 5ʹ10″ to 6ʹ3″ tall, with glasses. Davison bought a soft drink from a particular gas station every afternoon. Davison’s driver’s license photo was seven years old. Defendants approached Plaintiff near the gas station. Plaintiff, a 21-year-old student, 5ʹ10″ to 6ʹ3″, and wearing glasses, claims Defendants never identified themselves. Defendants assert that Allen identified himself as a police officer. Plaintiff gave his name and followed' instructions to put his hands on his head because Defendants “had small badges.” Allen removed Plaintiff’s wallet. Plaintiff asked, “[a]re you mugging me?” and attempted to flee. Allen tackled him. Plaintiff yelled for passersby to call the police. Allen put Plaintiff in a chokehold. Plaintiff claims he lost consciousness. Plaintiff bit Allen. Allen started punching Plaintiff in the head and face. Bystanders called the police and began filming. Officers arrived and ordered them to delete their videos because they could reveal undercover FBI agents. One bystander stated, “They were out of control pounding him.” A 911 caller stated, “[t]hey’re gonna kill this man.” Emergency room doctors released Plaintiff with painkillers. Police then arrested him. Plaintiff spent the weekend in jail. A jury acquitted Plaintiff of all charges.The district court found that it lacked subject matter jurisdiction over Plaintiff’s Federal Tort Claims Act (FTCA) claim against the United States, and granted Defendants summary judgment based on qualified immunity. With respect to Plaintiff’s 42 U.S.C. 1983 or Bivens claims, the Sixth Circuit reversed. The FTCA judgment bar, 28 U.S.C. 2676, does not apply because the FTCA judgment was not on the merits. Defendants were not protected by qualified immunity. A jury could reasonably conclude that Plaintiff bears no resemblance to Davison’s photograph. Under clearly established law, removing Plaintiff’s wallet during a protective search was unreasonable. Clearly established law held that using a chokehold when Plaintiff was attempting to flee was objectively unreasonable. View "King v. United States" on Justia Law