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

The Unions represents the pilots of merged airlines Flight Options and Flexjet. Flight Options and its pilots have had a collective bargaining agreement since 2010, while Flexjet’s pilots are newly unionized and are not yet party to a CBA. The parties dispute whether the integration of the pilot groups’ seniority lists (ISL) is solely a Union matter, so that the airlines must accept the Union's list or whether the airlines should have been allowed to participate in negotiating the list. The 2010 CBA governs the creation of the ISL when Flight Options acquires another carrier. The district court, acting under the Railway Labor Act (RLA), 45 U.S.C. 152, entered a preliminary injunction ordering the airlines to accept the Union’s ISL. On appeal, the airlines argued that the dispute was “minor” and subject to exclusive arbitral jurisdiction. The Sixth Circuit affirmed in part. The 2010 CBA does not arguably justify the airlines' assertion that they have a right to participate in the ISL process; the dispute is major. The district court properly enjoined the airlines to honor the express terms of the CBA, but those terms provide that if the airlines refuse to accept the Union’s proffered ISL, the Union may invoke an expedited grievance-arbitration process, which uniquely applies to such disputes. The court ordered modification of the injunction accordingly. View "Flight Options v. International Brotherhood of Teamsters" on Justia Law

The Burkes filed a Chapter 7 bankruptcy petition, listing their Chattanooga home as worth $108,000, with a $91,581 mortgage debt. Jahn, the appointed trustee, sought an eviction order, stating that he could not sell the property with the debtors living there and that its value was about $200,000. The Burkes moved to compel the trustee to abandon the property, alleging that their equity would provide little value to creditors. Jahn tendered a check for $7,500, the value of their Tennessee statutory homestead exemption. The Burkes rejected the tender; their first witness estimated that the residence would be worth $171,000 after repairs related to mold and roofing that would cost $63,000, leaving a net value of $108,000. The Burkes’ second appraiser valued the home at $185,000 after making repairs estimated at $60,000, for a final appraisal of $125,000. Jahn’s realtor testified that the Burkes’ residence was worth $204,000, based on his tour of the property. Jahn's home inspector testified that there was no problem with the roof and that the mold issue had been overstated. The bankruptcy court granted the Burkes’ motion to abandon, noting that houses are often sold while occupied by their owners. The district court and Sixth Circuit affirmed. Under these circumstances, the trustee cannot simply tender the homestead exemption and cause the debtors to “skedaddle.” View "Jahn v. Burke" on Justia Law

The Tennessee Republican Party, the Georgia Republican Party, and the New York Republican State Committee challenged the legality of 2016 amendments to rules proposed by the Municipal Securities Rulemaking Board (MSRB) that are “deemed to have been approved” by the Securities and Exchange Commission (SEC), 15 U.S.C. 78s(b)(2)(D). The rules arose out of concern “that brokers and dealers were engaging in a variety of ethically questionable practices in order to secure underwriting contracts,” and are intended to limit pay-to-play practices in the municipal securities markets. The amendments limit the campaign activities of persons who advise city and state governments on issuing municipal securities. The Sixth Circuit dismissed because the plaintiffs failed to establish their standing to challenge the amendments. There was no “self-evident” injury to the plaintiffs and only limited information on the number of persons possibly affected by the amendments. At most, there were approximately 713 registered non-dealer municipal advisory firms in the United States that would be affected by the Amendments, but it is unclear how many municipal advisor professionals are associated with these firms, let alone the likelihood that they would donate to plaintiffs if not for the Amendments. It is unknown whether the Amendments have hindered individual candidates who are members of the plaintiff organizations. View "Georgia Republican Party v. Securities & Exchange Commission" on Justia Law

Albaadani came to the U.S. via Saudi Arabia at age 17. In 2015, an order of removal was issued against him because his former wife ceased to sponsor his request for citizenship. Albaadani wants to return to his birthplace, but because Yemen was in a state of “war and political conflict,” no travel documents have been issued. Albaadani was detained for six months, after which he was released subject to monitoring with a GPS ankle monitor. The Immigration and Naturalization Service received a tamper alert on Albaadani’s ankle monitor. When an agent called Albaadani, Albaadani refused to go to an enforcement office and became verbally abusive toward the agent. He was sentenced to nine months of imprisonment for tampering with a GPS ankle monitor, 18 U.S.C. 1361. Albaadani argued that his sentence was based on the impermissible factors of gender and national origin. The Sixth Circuit affirmed, stating that some of the district court’s comments, taken out of context, could appear to be influenced by Albaadani’s national origin, but the court’s explicit and complete reliance on serious threats and photographs attributed to Albaadani indicate that the sentence, viewed as a whole, did not create the appearance of having been based on gender or national origin. View "United States v. Albaadani" on Justia Law

Over the last 10 years, the Federal Communications Commission has established rules governing how local governments may regulate cable companies. In 2007, the FCC barred franchising authorities from imposing unreasonable demands on franchise applicants or requiring new cable operators to provide non-cable services. The FCC also read narrowly the phrase “requirements or charges incidental to the awarding . . . of [a] franchise” (47 U.S.C. 542(g)(2)(D)), with the effect of limiting the monetary fees that local franchising authorities can collect. A petition for review was denied. Meanwhile, the FCC sought comment on expanding the application of the First Order’s rules—which applied only to new applicants for a cable franchise—to incumbent providers. In its Second Order, the FCC expanded the First Order’s application as proposed. Local franchising authorities again objected. The FCC finally rejected objections after seven years; the FCC clarified that the Second Order applied to only local (rather than state) franchising processes and published a “Supplemental Final Regulatory Flexibility Act Analysis.” Local governments sought review, arguing that the FCC misinterpreted the Communications Act, and failed to explain the bases for its decisions. The Sixth Circuit granted the petition in part; while “franchise fee” (section 542(g)(1)) can include noncash exactions, the orders were arbitrary to the extent they treat “in-kind” cable-related exactions as “franchise fees” under section 541(g)(1). The FCC’s orders offer no valid basis for its application of the mixed-use rule to bar local franchising authorities from regulating the provision of non-telecommunications services by incumbent cable providers. View "Montgomery County. v. Federal Communications Commission" on Justia Law

Harold Persaud, M.D., a cardiologist in private practice, was charged with one count of health-care fraud, 18 U.S.C. 1347, 14 counts of making false statements relating to health-care matters, 18 U.S.C. 1035, and one count of money laundering, 18 U.S.C. 1957. The grand jury also returned a forfeiture finding, requiring Persaud to forfeit all property linked to the charges, including $343,634.671 seized from bank accounts associated with Persaud and his wife. At trial, the government presented 34 witnesses, including 11 physicians, eight patients, and four nurses. The defense relied on five witnesses, including an expert cardiologist, two referring physicians, and a coding expert. The jury convicted Persaud on all charges, except for one false-statement count. The jury concluded that the $343,634.67 seized from the Persauds’ bank accounts was forfeitable; the $250,188.42 seized from Persaud’s wife’s account was related to his money-laundering conviction; and Persaud’s scheme generated gross proceeds of $2,100,000. The district court sentenced Persaud to 20 years of imprisonment, a $1,500 special assessment, and restitution of $5,486,857.03, which consists of money damages to be paid to Persaud’s patients, their private insurers, and the government. The Sixth Circuit affirmed. The jury was entitled to accept the view of the government’s experts over those of Persaud’s experts. View "United States v. Persaud" on Justia Law

After the 2008 financial crisis, many banks foreclosed on many properties used to secure the underlying loans. According to the City of Cincinnati, Wells Fargo adopted a policy of violating local and state property regulations when the cost of compliance outweighed the value that could be recouped through the resale of a foreclosed property. The city claimed the violations created a common law public nuisance that lowered property tax revenues, increased police and fire expenses, and added other administrative costs. The parties resolved claims arising from any individual code violations and associated fines attached to properties named in the complaint. The district court rejected the city’s claim as a matter of law. The Sixth Circuit affirmed. The economic-loss doctrine forecloses the claim for damages for a qualified public nuisance under Ohio law. The doctrine bars tort plaintiffs from recovering purely economic loss that “do[es] not arise from tangible physical injury” to persons or property. Absent allegations of an intentional nuisance or an inherently dangerous context, the city cannot pursue an absolute nuisance claim. The city did not identify specific nuisance properties and offered no evidence that the alleged “policy” of selective non-compliance with health and safety codes will inevitably result in a public nuisance. View "City of Cincinnati v. Deutsche Bank National Trust Co." on Justia Law

In 2010, Besse, a pharmaceutical distributor, sent a one-page fax advertising the drug Prolia to 53,502 physicians. Only 40,343 of these faxes were successfully transmitted. Sandusky, a chiropractic clinic that employed one of the physicians, claims to have received this “junk fax,” and, three years later, filed a lawsuit under the Telephone Consumer Protection Act, 47 U.S.C. 227. The district court denied Sandusky’s motion for class certification. It held that Sandusky’s proposed class failed to satisfy Rule 23(b)(3) because two individualized issues—class member identity and consent—were central to the lawsuit and thus prevented “questions of law or fact common to class members [from] predominat[ing].” In the absence of fax logs, no classwide means existed by which to identify the 75% of individuals who received the Prolia fax; “each potential class member would have to submit an affidavit certifying receipt of the Prolia fax.” The Sixth Circuit affirmed, noting that Besse presented actual evidence of consent to the district court, which required the need for individualized inquiries in order to distinguish between solicited and unsolicited Prolia faxes. The court stated that it was unaware of any court that ever mandated certification of a TCPA class where fax logs did not exist. View "Sandusky Wellness Center, LLC v. ASD Specialty Healthcare, Inc." on Justia Law

In 2009, Williamson, an Army veteran and U.S. postal worker, began experiencing pain in his right foot. He usually worked a walking route, walking up to eight miles per day on the job. He was also doing other physical activity, including running and CrossFit, which could have contributed to his injury. He eventually received benefits under the Federal Employees’ Compensation Act (FECA): $79,379.66 in temporary total disability net compensation from March 20, 2010 through October 25, 2012; $27,801.27 for medical expenses; and $19,974.19 as a lump-sum “schedule award.” Williamson then sought damages under the Federal Tort Claims Act (FTCA) for medical malpractice by the Department of Veterans Affairs in the treatment of his injuries, which included two unsuccessful surgeries. The district court denied the government’s motion for summary judgment. The Sixth Circuit reversed. Liability under FECA is “exclusive” of “all other liability of the United States” to the employee “under a Federal tort liability statute,” 5 U.S.C. 8116(c) (2012). Because this exclusion applies broadly even when a work-related injury has been negligently treated by an entirely non-work-related federal hospital, Williamson may not recover under the FTCA. View "Williamson v. United States" on Justia Law

Schock was charged with four counts of sexually exploiting a child, 18 U.S.C. 2251, based on four incidents of Schock taking sexually explicit pictures of a six- to eight-year-old victim. The indictment did not identify the victim or the total number of victims. Schock was also charged with possessing child pornography, 18 U.S.C. 2252A, based on sexually explicit pictures of other children. He agreed to plead guilty to a single incident and that the court could consider all uncharged conduct at sentencing. The PSR started from a base offense level of 32 and recommended enhancements that resulted in a Guidelines range of 360 months’ to life imprisonment: four points (2G2.1(b)(1)(A)) because the victim was under age 12; two points (2G2.1(b)(5)) because the victim was a relative; five points because the offense of conviction was a covered sex crime; and, because Shock’s relevant conduct included more than one victim, two points pursuant to 2G2.1(d)(1)’s adoption of the multiple-count enhancement. The district court imposed a 240-month sentence, citing Schock’s age (66), acceptance of responsibility, and low risk of re-offense. The Sixth Circuit vacated the sentence. The district court erred by finding, on this record, that Schock’s exploitation of Victim 1 (pre-charge conduct) constituted relevant conduct and, therefore, erred in applying the 2G2.1 enhancement. The court also requested clarification of the extent of the incarceration costs that the court intended to impose. View "United States v. Schock" on Justia Law