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

A DEA agent learned that a particular tractor-trailer traveling to Cleveland likely contained narcotics. When the truck arrived, investigators watched as the driver parked in a fenced-in lot and a car driven by Defendants arrived. The truck's driver unhitched the trailer and drove away. Defendants worked on a compartment underneath the trailer, then drove away. State Troopers stopped them, allegedly for speeding, and a narcotics detection dog alerted to the possible presence of narcotics. The officers searched the car but did not find any illegal items. Officers executed a warrant at the trailer and discovered secret compartments, containing around 92 kilograms of cocaine. Defendants were arrested. Officers seized cell phones with coded messages and a notebook with detailed information regarding the tractor-trailer's arrival. Defendants agreed to plead guilty to conspiracy to possess with intent to distribute at least 92 kilograms of a mixture or substance containing cocaine under Rule 11(c)(1)(C), which authorizes plea agreements that, if accepted by the court, specify the exact sentence. The agreements applied the “Safety Valve” guideline and reductions for being “minimal participants” acting out of fear and for acceptance of responsibility, and proposed sentences of 36 months’ and 33 months’ imprisonment. The court rejected the agreements, stating that it would not accept any “C agreement.” The court subsequently accepted revised plea agreements, stating that the agreed-upon guidelines calculations were merely advisory. The PSRs’ offense-level calculations mirrored those in the agreements, with one exception. The district court rejected the reductions, resulting in a guidelines range of 120-135 months’ imprisonment and imposed a 10-year sentence on each defendant. The Sixth Circuit vacated and remanded for reassignment to a different judge, for reconsideration of the plea agreement. View "United States v. Cota-Luna" on Justia Law

Giese claimed that HNRC paid royalties derived from coal mining into an escrow account. After buying the property on which the mining occurred, Giese sued, asserting a right to the escrowed royalties. Lexington Coal disputed Giese’s claim, arguing it purchased all cash and accounts of HNRC and HNRC’s parent company during a bankruptcy case involving those entities. Lexington had been a defendant in an interpleader action before the Bankruptcy Court to determine the rightful owner of the funds at issue. Giese’s state court action was removed to the Bankruptcy Court, which declined to abstain from adjudicating two counts of Giese’s Kentucky state court complaint and dismissed his complaint. The Bankruptcy Appellate Panel affirmed. Giese’s claims were inextricably intertwined with the bankruptcy case and would not exist but for the bankruptcy, so the Bankruptcy Court was right to adjudicate them. Sending two claims (breach of contract and royalty claims) to a court that cannot, under any circumstance, adjudicate the other related claims, would pose a great risk to important policy concerns. Upholding the dismissal, the court stated that an order confirming a plan of reorganization constitutes a final judgment in a bankruptcy proceeding, and res judicata bars relitigation of any issues that could have been raised during the confirmation proceeding. View "In re HNRC Dissolution Co." on Justia Law

Plaintiffs, 11 minority firefighters who were laid off by Detroit in 2012 as part of a reduction in force (RIF) that followed the city’s bankruptcy, sued the city and their union, (DFFA), alleging a violation of Title VII of the 1964 Civil Rights Act, 42 U.S.C. 2000e. The district court rejected their claims on summary judgment, finding that only one Plaintiff had exhausted his administrative remedies to pursue a claim against the city, but that even on the merits, Plaintiffs failed to present direct evidence or to establish a prima facie case under the circumstantial evidence approach, which includes a heightened burden in a RIF. The court concluded that Plaintiffs could not establish that the DFFA breached its duty of fair representation. The Sixth Circuit agreed that 10 Plaintiffs failed to exhaust administrative remedies, that there was no direct evidence of discriminatory motive, and that Plaintiffs’ statistical evidence was not probative and did not establish a circumstantial case. The court reversed as to DFFA, holding that a prima facie disability discrimination claim against a union does not require that a plaintiff demonstrate that the union breached its duty of fair representation. View "Peeples v. City of Detroit" on Justia Law

Three-and-a-half years ago, a Kentucky state court issued a judgment in plaintiffs’ favor against class-action plaintiffs’ attorney Chesley for $42 million. Since then, the plaintiffs have been trying to collect on that judgment. Chesley has successfully evaded them with the help of his confidantes. In the process, five lawyers have been disbarred; two have been put in jail. Chesley has managed to transfer most of his assets elsewhere, rendering himself judgment-proof and forcing the plaintiffs to file the fraudulent conveyance action underlying this appeal. While that fraudulent conveyance action was pending, Chesley initiated an Ohio state probate court action. He claims the action was started for legitimate purposes—to pay off his law firm’s creditors in a judicially-supervised forum. The district court disagreed. Sensing Chesley was using the probate action to continue to conceal his assets, it issued a preliminary injunction freezing those assets. In the time since the injunction was entered (and this appeal was filed), that probate action was dismissed and declared fraudulent. The Sixth Circuit affirmed the preliminary injunction, which is worded broadly enough to remain effective despite the probate action’s dismissal, and is still adequately supported by the record evidence and is still necessary. View "McGirr v. Rehme" on Justia Law

Abramge is a Brazilian nonprofit professional association of private health insurance providers, many of whom were impacted by a bribery and kickback scandal in the medical device market that broke in the Brazilian media in 2015. Abramge alleged that Stryker, a Michigan corporation, masterminded an “illicit scheme, which was planned and run from Michigan, designed to increase its market share by making improper payments and paying bribes and kickbacks to Brazilian doctors to induce the use of Stryker products” and “made improper payments and paid kickbacks to Brazilian doctors with the intent of influencing those doctors to use Stryker devices and products in patients even if those devices ... did not best meet the patients’ medical needs.” The scheme allegedly increased the cost of devices and the number of devices implanted and surgeries performed; health insurance providers paid for those increases. Abramge claims that Stryker’s actions injured not only its insurer members but also the entire Brazilian public health system and patients throughout the country. Abramge filed suit in the Western District of Michigan, claiming fraud, civil conspiracy, tortious interference with contractual relationships, and unjust enrichment. The district court dismissed, citing forum non conveniens. The Sixth Circuit reversed and remanded. Stryker did not carry its burden of proving that Brazil is an available and adequate alternative forum in which the case may be heard. View "Associacao Brasileira de Medicina v. Stryker Corp." on Justia Law

Sorrells, looking out of a window, saw men arguing. She knew Johnson, Levingston, and Grace from the neighborhood. Johnson knocked Grace to the ground. Sorrells saw the men standing over Grace, followed by flashes from their guns. Sorrells contacted the police 10 days later, saying she was “[o]ne hundred percent” sure Johnson and Levingston were the shooters. Sorrells asked for witness protection. At a rescheduled pre-trial hearing in front of Levingston, Sorrells expressed doubt, stating she was not wearing her glasses that night. At trial, Sorrells said that she changed her testimony based on what other people were saying and that she genuinely grew unsure. The court instructed the jury that it could consider Sorrells’ prior statements “as testified by her” only to impeach her credibility but that it could consider the prior statements and a recorded conversation through a detective’s testimony as substantive evidence under an exclusion to Ohio’s hearsay rule. The Sixth Circuit affirmed the denial of his federal habeas petition. Levingston did not establish that the state court unreasonably applied Supreme Court precedent or relied on unreasonable fact findings, 28 U.S.C. 2254(d). That Sorrells may have been a “witness” against Levingston when she spoke to police does not matter because Levingston had the opportunity to “confront” Sorrells at trial, for cross-examination. The nature of a police investigation does not permit cross-examination by the suspect’s attorney at the time of the initial statement. View "Levingston v. Warden, Warren Correctional Institution" on Justia Law

Sorrells, looking out of a window, saw men arguing. She knew Johnson, Levingston, and Grace from the neighborhood. Johnson knocked Grace to the ground. Sorrells saw the men standing over Grace, followed by flashes from their guns. Sorrells contacted the police 10 days later, saying she was “[o]ne hundred percent” sure Johnson and Levingston were the shooters. Sorrells asked for witness protection. At a rescheduled pre-trial hearing in front of Levingston, Sorrells expressed doubt, stating she was not wearing her glasses that night. At trial, Sorrells said that she changed her testimony based on what other people were saying and that she genuinely grew unsure. The court instructed the jury that it could consider Sorrells’ prior statements “as testified by her” only to impeach her credibility but that it could consider the prior statements and a recorded conversation through a detective’s testimony as substantive evidence under an exclusion to Ohio’s hearsay rule. The Sixth Circuit affirmed the denial of his federal habeas petition. Levingston did not establish that the state court unreasonably applied Supreme Court precedent or relied on unreasonable fact findings, 28 U.S.C. 2254(d). That Sorrells may have been a “witness” against Levingston when she spoke to police does not matter because Levingston had the opportunity to “confront” Sorrells at trial, for cross-examination. The nature of a police investigation does not permit cross-examination by the suspect’s attorney at the time of the initial statement. View "Levingston v. Warden, Warren Correctional Institution" on Justia Law

The Honorable Michael J. Theile is a Michigan state-court judge. In 2020, the year of the next election for the seat he now holds, Theile will be 71 years of age. Because the Michigan Constitution and a statute prohibit a person who has attained the age of 70 from being elected or appointed to judicial office, Theile will not be eligible to run for re-election, Mich. Const. art. VI, section 19(3); Mich. Comp. Laws 168.411. The Sixth Circuit affirmed the dismissal of his complaint, in which he asserted a violation of the Equal Protection Clause and asked the court to dispense with rational-basis review of age-based classifications and adopt intermediate scrutiny. The court declined to reverse the settled precedent of the Supreme Court and of the Sixth Circuit mandating rational-basis review for age-based classifications and precedent identifying multiple rational bases for judicial age limitations. View "Theile v. State of Michigan" on Justia Law

Two individuals obtained unemployment benefits from the Michigan Unemployment Insurance Agency to which they were not entitled because they were being paid wages. Each was ordered to pay restitution and a penalty; each subsequently filed for Chapter 13 bankruptcy. The debtors argued that the penalties assessed were dischargeable in a Chapter 13 bankruptcy. Each district court disagreed. The Sixth Circuit affirmed, finding the penalties nondischargeable under 11 U.S.C. 523(a)(2). That section reflects a congressional decision that those who commit fraud are not to be given the same “fresh start” as “honest but unfortunate debtor[s].” A finding that the debt here arises from fraud perpetrated against the Agency makes section 523(a)(2) applicable, regardless of whether the debt could also fit under section 523(a)(7), which applies to government penalties. View "Kozlowski v. Michigan Unemployment Insurance Agency" on Justia Law

Two individuals obtained unemployment benefits from the Michigan Unemployment Insurance Agency to which they were not entitled because they were being paid wages. Each was ordered to pay restitution and a penalty; each subsequently filed for Chapter 13 bankruptcy. The debtors argued that the penalties assessed were dischargeable in a Chapter 13 bankruptcy. Each district court disagreed. The Sixth Circuit affirmed, finding the penalties nondischargeable under 11 U.S.C. 523(a)(2). That section reflects a congressional decision that those who commit fraud are not to be given the same “fresh start” as “honest but unfortunate debtor[s].” A finding that the debt here arises from fraud perpetrated against the Agency makes section 523(a)(2) applicable, regardless of whether the debt could also fit under section 523(a)(7), which applies to government penalties. View "Kozlowski v. Michigan Unemployment Insurance Agency" on Justia Law