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

Michael Salazar filed a class action lawsuit against Paramount Global, alleging a violation of the Video Privacy Protection Act (VPPA). Salazar claimed that he subscribed to a 247Sports e-newsletter and watched videos on 247Sports.com while logged into his Facebook account. He alleged that Paramount had installed Facebook’s tracking Pixel on 247Sports.com, which enabled Paramount to track and disclose his video viewing history to Facebook without his consent.The United States District Court for the Middle District of Tennessee dismissed Salazar’s complaint. The court found that Salazar had standing because the alleged disclosure of his video viewing history to Facebook constituted a concrete injury. However, the court dismissed the complaint for failure to state a claim under the VPPA, concluding that Salazar was not a “consumer” under the Act. The court reasoned that Salazar’s subscription to the 247Sports e-newsletter did not qualify him as a “consumer” because the newsletter was not “audio visual materials.”The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court’s decision. The Sixth Circuit agreed that Salazar had standing but held that he did not plausibly allege that he was a “consumer” under the VPPA. The court interpreted the term “goods or services” in the context of the VPPA to mean audio-visual materials, and since Salazar’s newsletter subscription did not involve audio-visual materials, he was not a “consumer” under the Act. The court also found that the district court did not abuse its discretion in dismissing the complaint with prejudice, as Salazar had not filed a formal motion to amend his complaint. View "Salazar v. Paramount Global" on Justia Law

Jeffrey Campbell, the owner and lead doctor at Physicians Primary Care (PPC), and Mark Dyer, a nurse practitioner at PPC, were indicted in 2020 on multiple counts related to overprescribing opioids and engaging in a scheme to seek fraudulent reimbursements from health insurance providers. The indictment included charges of unlawfully distributing controlled substances, conspiracy to unlawfully distribute controlled substances, health-care fraud, conspiracy to commit health-care fraud, and money laundering.The case proceeded to trial in the United States District Court for the Western District of Kentucky. The jury found Campbell guilty on several counts, including conspiracy to unlawfully distribute controlled substances, health-care fraud, conspiracy to commit health-care fraud, and money laundering. Dyer was also found guilty on similar counts. The district court sentenced Campbell to 105 months of imprisonment and Dyer to 60 months, followed by three years of supervised release for both. The district court also ordered restitution payments from both defendants.The United States Court of Appeals for the Sixth Circuit reviewed the case. The defendants challenged the jury instructions, sufficiency of the evidence, and the district court’s evidentiary rulings. The appellate court found that the jury instructions, although not fully compliant with the Supreme Court's decision in Ruan v. United States, were adequate under the court's precedents. The court also found sufficient evidence to support the convictions for conspiracy to unlawfully distribute controlled substances, health-care fraud, and money laundering. The court held that the district court did not abuse its discretion in admitting the testimony of government experts and other evidence.The appellate court affirmed the convictions and sentences, concluding that any potential errors in the district court’s intended-loss calculation for sentencing were harmless, as the sentences imposed were well below the applicable Guidelines range. The court also noted that the defendants failed to properly appeal the restitution order, making it outside the scope of the current appeal. View "United States v. Campbell" on Justia Law

A certified class of Ohio landowners alleged that a Colorado-based mining company, Antero Resources Corporation, underpaid them $10 million in natural gas royalties. The landowners claimed that Antero improperly deducted costs for processing and fractionation from their royalties. Antero counterclaimed, seeking authority to deduct additional costs related to gathering, dehydrating, compressing, and transporting the unrefined natural gas. The district court certified the class, denied Antero's motion for summary judgment, granted the landowners' motion, and entered a final judgment after the parties stipulated damages.The United States District Court for the Southern District of Ohio ruled in favor of the landowners, finding that Antero improperly deducted processing and fractionation costs from the royalties. The court determined that these costs were necessary to transform the gas into marketable form and thus could not be deducted under the lease agreement.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Antero could not deduct the costs of processing and fractionation from the landowners' royalties. The court found that the lease agreement's Market Enhancement Clause allowed deductions only for costs that enhanced the value of already marketable products, not for costs required to make the products marketable. The court concluded that the gas products first became marketable after processing and fractionation, and thus, these costs were not deductible. The court also noted that the Fourth Circuit had reached a similar conclusion in a related case involving the same defendant and lease terms. View "The Grissoms, LLC v. Antero Resources Corp." on Justia Law

Marina Debity brought claims against the Monroe County Board of Education for sex discrimination and retaliation under the Equal Pay Act (EPA), Title VII of the Civil Rights Act of 1964, and the Tennessee Human Rights Act (THRA). Debity alleged that the Board offered her a lower salary than it had paid a male predecessor, Matthew Ancel, for the same job and retaliated by withdrawing her job offer when she requested equal pay.A jury found that the Board offered Debity less money for legitimate reasons unrelated to her sex and did not retaliate against her. Despite these findings, the jury awarded Debity over $195,000 in damages, likely due to poor instructions on the verdict form. The magistrate judge noticed the inconsistency but dismissed the jury without allowing objections. The magistrate judge later denied Debity's motions for judgment as a matter of law and for a new trial, classifying the verdicts as special verdicts and reconciling the inconsistency by entering judgment based on the jury's answers to the interrogatories.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court concluded that the magistrate judge presented the jury with a general verdict on the retaliation claims and a general verdict with interrogatories on the discrimination claims. The jury's answers to the interrogatories on the discrimination claims were consistent with each other but inconsistent with the general verdict. The court affirmed the magistrate judge's decision to enter judgment based on the interrogatories.Regarding the Board's affirmative defense to the discrimination claims, the court held that budget constraints and market forces of supply and demand each provided an independent basis to uphold the jury's verdict. Both reasons were legitimate business explanations for offering Debity a lower salary than Ancel. Consequently, the court affirmed the judgment in favor of the Board on all claims. View "Debity v. Monroe Cnty. Bd. of Educ." on Justia Law

Karl Tobien, a door-to-door salesman, was attacked by a dog while working in Ohio. He filed two federal lawsuits: one against the homeowners in the Southern District of Ohio, which was dismissed by agreement, and another against Nationwide General Insurance Company in the Eastern District of Kentucky. Tobien claimed Nationwide violated Kentucky’s Unfair Claims Settlement Practices Act, acted in bad faith, and sought punitive damages after the company denied his insurance claim.The United States District Court for the Eastern District of Kentucky dismissed Tobien’s lawsuit for improper venue, concluding that most relevant events occurred in Ohio. Tobien appealed, arguing that the Eastern District of Kentucky was a proper venue and that the district court should have transferred the case to the Southern District of Ohio instead of dismissing it.The United States Court of Appeals for the Sixth Circuit reviewed the case de novo and upheld the district court’s decision. The court determined that Tobien failed to show that a substantial part of the events giving rise to his claims occurred in the Eastern District of Kentucky. The court also found that transferring the case to the Southern District of Ohio would not be in the interest of justice, as Ohio law would apply and Tobien’s claims would fail under Ohio law. Consequently, the Sixth Circuit affirmed the district court’s dismissal of Tobien’s lawsuit. View "Tobien v. Nationwide Gen. Ins. Co." on Justia Law

Lynwood Pickens worked for Hamilton-Ryker IT Solutions from 2018 to 2019, inspecting pipes at a natural-gas export terminal in Texas. He was paid $100 per hour but was guaranteed a weekly salary of $800, equivalent to eight hours of work. For any hours worked beyond the initial eight, he received additional hourly compensation. Pickens regularly worked over 50 hours per week but did not receive overtime pay, as Hamilton-Ryker classified him as a salaried employee exempt from the Fair Labor Standards Act (FLSA).Pickens sued Hamilton-Ryker in 2020, claiming he was a non-exempt hourly worker entitled to overtime pay. Fourteen coworkers joined the lawsuit. Both parties moved for summary judgment. The United States District Court for the Middle District of Tennessee granted summary judgment to Hamilton-Ryker, classifying Pickens as a salaried employee under the FLSA and dismissing the claims of his coworkers for not being "similarly situated."The United States Court of Appeals for the Sixth Circuit reviewed the case. The court held that Pickens was not paid on a salary basis as defined by the FLSA regulations. The court emphasized that a true salary must cover a regular workweek, not just a portion of it. Since Pickens' guaranteed pay only covered eight hours, not his usual 52-hour workweek, he did not meet the salary basis test. The court reversed the district court's decision and remanded the case for further proceedings, leaving the determination of the collective action status and the claims of Pickens' coworkers to the district court. View "Pickens v. Hamilton-Ryker IT Solutions" on Justia Law

In the summer of 2020, Adam Fox and Barry Croft, Jr. planned to kidnap Michigan Governor Gretchen Whitmer. They were convicted by a federal jury on all charges, with Fox receiving a 192-month sentence and Croft a 235-month sentence. On appeal, they argued insufficient evidence for their convictions, errors by the district court in not conducting a "Remmer" hearing for a biased juror, limiting cross-examination time, and restricting the admissibility of certain informant statements.The United States District Court for the Western District of Michigan initially tried the case, resulting in a hung jury for Fox and Croft, while co-defendants Harris and Caserta were acquitted. Upon retrial, Fox and Croft were found guilty. They appealed to the United States Court of Appeals for the Sixth Circuit.The Sixth Circuit reviewed the sufficiency of the evidence de novo and found ample evidence supporting the convictions. The court noted that Fox and Croft's actions, including reconnaissance missions and detailed planning, demonstrated a clear agreement to kidnap Governor Whitmer. The court also found sufficient evidence for Croft's possession of an unregistered destructive device and rejected the entrapment defense, citing substantial predisposition to commit the crimes.Regarding the "Remmer" hearing, the Sixth Circuit held that the district court did not abuse its discretion, as the allegations of juror bias were not credible. The court also found no abuse of discretion in limiting cross-examination time, as defense counsel had ample warning and opportunity to question witnesses effectively. Lastly, the court ruled that the exclusion of certain informant statements was harmless error, as the evidence of guilt was overwhelming.The Sixth Circuit affirmed the convictions of Fox and Croft on all counts. View "United States v. Croft" on Justia Law

Fitzgerald Truck Parts & Sales, LLC built and sold highway tractors by installing old engines and transmissions from salvage yards into new tractor kits. The IRS assessed unpaid excise taxes, penalties, and interest totaling $268 million, arguing that Fitzgerald's sales were subject to a 12% excise tax under 26 U.S.C. §§ 4051(a)(1) and 4052(a)(1). Fitzgerald claimed an exemption under 26 U.S.C. § 4052(f)(1), which provides a safe harbor if the cost of repairs or modifications does not exceed 75% of the retail price of a comparable new tractor. Fitzgerald won before a jury, and the government appealed.The United States District Court for the Middle District of Tennessee ruled in favor of Fitzgerald, rejecting the government's arguments that Fitzgerald's operations did not qualify for the safe harbor and that the tractors were not taxable when new under 26 U.S.C. § 4052(f)(2). The government then appealed to the United States Court of Appeals for the Sixth Circuit.The Sixth Circuit agreed with Fitzgerald that § 4052(f)(1) poses a bright-line, 75% test without any further qualitative inquiry, meaning Fitzgerald's vehicles constructed with used engines and transmissions could qualify for the safe harbor. However, the court found that § 4052(f)(2) forecloses this exemption for tractors that never triggered the excise tax when they were new. The court noted that Fitzgerald had not met its burden of proving that the tractors were taxable when new, as evidence suggested that some vehicles were first sold in tax-exempt transactions to entities abroad or state or local governments.The Sixth Circuit reversed the district court's judgment and remanded the case for further proceedings to determine whether each refurbished tractor, when new, incurred the excise tax under § 4051. View "Fitzgerald Truck Parts & Sales LLC v. United States" on Justia Law

Tyler Ross, a manager and co-CEO of ROCO Real Estate LLC and ROCO Management LLC, pleaded guilty to one count of conspiracy to commit an offense against the United States. Ross was involved in a scheme to provide mortgage lenders with inflated income information about properties owned by his real-estate-investment firm. The scheme involved submitting false financial documents to mortgage lending businesses to make underperforming properties appear more profitable than they were, thereby obtaining favorable mortgage valuations and refinancing terms.The United States District Court for the Eastern District of Michigan applied a sentencing enhancement for defendants who derived more than $1,000,000 in gross receipts from one or more financial institutions as a result of their offense. The district court found that Ross's conduct met the enhancement's requirements, as he received over $2 million from a property sale financed by a loan from JPMorgan Chase Bank, which relied on falsified financial documents provided by Ross. The district court sentenced Ross to 12 months and one day of imprisonment, granting a downward variance from the guideline range of 46-57 months.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's judgment. The court held that the gross-receipts enhancement was correctly applied because Ross's offense targeted financial institutions, and he derived gross receipts from a financial institution as a result of his offense. The court rejected Ross's arguments that the enhancement should only apply when a defendant causes loss to a financial institution and that his receipts were derived from a real-estate firm rather than a financial institution. The court emphasized that the enhancement applies to gross receipts obtained directly or indirectly from a financial institution as a result of the offense. View "United States v. Ross" on Justia Law

Faytima Howard failed to pay her property taxes, leading Macomb County, Michigan, to seize and sell her property in 2023. Howard sued, claiming the county violated the Takings Clause of the Fifth Amendment by keeping proceeds exceeding her tax debt. Previously, Michigan's foreclosure regime was found unconstitutional for not compensating property owners for the surplus from foreclosure sales. However, Michigan amended its law in 2020 to allow property owners to claim any surplus value from foreclosed properties. Howard did not utilize this process.The United States District Court for the Eastern District of Michigan dismissed Howard's complaint for failure to state a claim. The court noted that Michigan's amended law provided a procedure for property owners to claim surplus proceeds, which Howard did not follow. The district court concluded that because Howard did not take advantage of the process, her claim was invalid.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Michigan's procedure for claiming surplus proceeds from foreclosure sales complies with the Takings Clause, as it provides property owners with a reasonable opportunity to claim any surplus. The court distinguished this case from others where no such process was available, emphasizing that Howard's failure to follow the state procedure meant no taking occurred. The court also rejected Howard's arguments that the process was overly burdensome and that the lack of interest and attorney's fees constituted a taking. The court concluded that Michigan's procedures are constitutionally sound and do not violate the Fifth Amendment. View "Howard v. Macomb Cnty., Mich." on Justia Law