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

Lawsuits brought by governmental bodies and health clinics alleged that Quest, a wholesale pharmaceutical distributor, engaged in misconduct that contributed to a nationwide epidemic of opioid abuse. The plaintiffs plead violations of the RICO Act and state statutes, common law public nuisance, and negligence, seeking damages for “significant expenses for police, emergency, health, prosecution, corrections, rehabilitation, and other services.” Some complaints clarify that the claims “are not based upon or derivative of the rights of others” and that the plaintiffs “do not seek damages for death, physical injury to person, emotional distress, or physical damages to property[.]”Quest's insurance policies covered "damages because of 'bodily injury' or 'property damage'" and explain that “[d]amages because of ‘bodily injury’ include damages claimed by any person or organization for care, loss of services or death resulting at any time from the ‘bodily injury.’” “Bodily injury” is defined as “bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time.”The insurers sought declaratory judgments that they had no duty to defend or indemnify Quest. The district court granted the insurers summary judgment. The Sixth Circuit affirmed. Based on the plain language of the policies and their overall context and purpose, the court concluded that the Kentucky Supreme Court would find that the insurers have no duty to defend because the lawsuits do not seek damages “because of bodily injury” and claim only economic damages. View "Westfield National Insurance Co. v. Quest Pharmaceuticals, Inc." on Justia Law

The 1949 Federal Property and Administrative Services Act concerns the purchase of goods and services on behalf of the federal government, 40 U.S.C. 101. In November 2021, the Safer Federal Workforce Task Force, citing the Act, issued a “Guidance” mandating that employees of federal contractors in covered contracts with the federal government become fully vaccinated against COVID-19. Ohio, Kentucky, and Tennessee and Ohio sheriffs’ offices challenged the mandate. The district court enjoined its enforcement in the three states and denied the government’s request to stay the injunction pending appeal.The Sixth Circuit denied relief in January 2022 and, a year later, affirmed. The Property Act does not authorize the President to issue directives that simply “improve the efficiency of contractors and subcontractors.” The plaintiffs are likely to succeed in showing that the President exceeded his authority in issuing the mandate. The plaintiffs are likely to lose valuable government contracts and incur unrecoverable compliance costs if the mandate is not enjoined. The public interest “lies in a correct application” of the law. Because an injunction limited to the parties can adequately protect the plaintiffs’ interests while the case is pending, the district court abused its discretion in extending the preliminary injunction’s protection to non-party contractors in the plaintiff states. View "Commonwealth of Kentucky v. Biden" on Justia Law

Bachman Farms grows apples in Ohio and protected its 2017 crop with federally reinsured crop insurance from Producers Agriculture. When farmers and private insurers enter a federally reinsured crop insurance contract, they agree to common terms set by the Federal Crop Insurance Corporation (FCIC), including a requirement that the parties arbitrate coverage disputes. In those proceedings, the arbitrator must defer to agency interpretations of the common policy. Failure to do so results in the nullification of the arbitration award. Bachman lost at its arbitration with Producers Agriculture and alleged that the arbitrator engaged in impermissible policy interpretation. Bachman petitioned to nullify the arbitration award.The Sixth Circuit affirmed the dismissal of the suit. The petition to nullify did not comply with the substance or the three-month time limit of the Federal Arbitration Act (FAA), 9 U.S.C. 12. When a dispute concerning federally reinsured crop insurance involves a policy or procedure interpretation, the parties “must obtain an interpretation from FCIC.” Bachman did not seek an interpretation from FCIC but went directly to federal court to seek nullification under the common policy and its accompanying regulations—an administrative remedy—rather than vacatur under the FAA. View "Bachman Sunny Hill Fruit Farms v. Producers Agriculture Insurance Co." on Justia Law

Detective Kopchak, investigating drug trafficking, observed Rivers leaving a house, driving a red Nissan Ultima to sell drugs to an informant, and returning to the same house. After days of surveillance, investigators determined that Rivers lived at the house, and executed a search warrant. Kopchak again observed the Nissan, looked through its window, and allegedly observed a cigar wrapper, a piece of paper in the center console, and a small plastic bag that he identified as “a bag of dope.” Lieutenant DiPenti verbally indicated that he also saw the “bag of dope.” Officers found Loines and others in Rivers’ residence and read them their Miranda rights. Loines volunteered that car keys, belonging to the Nissan, were his. The car was towed for an inventory search. Officers took a picture of the car’s center console, showing a small plastic bag underneath a cigar wrapper, with a lottery ticket beside it. Officers searched the vehicle and found a firearm, two bags of suspected narcotics, and a scale. Police did not obtain a warrant to search the automobile.Loines, charged with drug crimes under 21 U.S.C. 846, 841(a)(1), 841(b)(1)(C), and a firearm offense, 18 U.S.C. 924(c)(1)(A), unsuccessfully moved to suppress the evidence seized from his vehicle. The Sixth Circuit reversed; the “bag of dope” was not in plain view, there was no probable cause to search the vehicle, and the government did not satisfy the automobile exception to the warrant requirement. View "United States v. Loines" on Justia Law

Around 11:14 a.m., Deanna called 911, claiming that she feared for her life because her husband was “threatening [her] with guns,” was on “new medication from the doctor,” and had “tremendous guns” in their house. Deputy Swick arrived knowing that Puskas had weapons and observed stuff scattered across the lawn and Puskas holding a rifle. Puskas put the rifle down. Swick told Puskas multiple times to get on the ground. Puskas walked toward the house instead. He stopped, picked up a bag, and pulled out a shotgun, and told Swick to “run.” From his vehicle, Swick reported that Puskas had a shotgun. Puskas dropped the shotgun. Sunbury Police Officers arrived, tried to verbally engage Puskas, and requested a negotiator. Deputy Gibson arrived, with a canine, Cash. Puskas ignored the officers and continued meandering around the yard, tossing a shirt at the officers. Gibson released Cash. Puskas ran toward the house. Cash initially targeted the shirt. Gibson refocused Cash. The officers followed Cash with their guns drawn. Puskas darted behind a tree and picked up a pistol case. Someone yelled, “he’s got a pistol.” Puskas pulled out a revolver. The officers shot him at 11:38 a.m. Puskas died at the hospital.Deanna sued under 42 U.S.C. 1983, alleging excessive force in deploying Cash and shooting Puskas. The Sixth Circuit affirmed summary judgment in favor of the officers. Body camera footage confirms that their actions were reasonable under the circumstances. View "Puskas v. Delaware County., Ohio" on Justia Law

Doe, a high-school student, suffers from a condition that makes her hypersensitive to the everyday sounds of eating food and chewing gum. Doe’s parents unsuccessfully requested that her school ban students from eating or chewing in her classes. They sued the Knox County Board of Education under the Americans with Disabilities Act (ADA) and the Rehabilitation Act. While considering their preliminary injunction motion, the district court dismissed the suit, reasoning that Doe’s parents could obtain the requested relief in administrative proceedings under the Individuals with Disabilities Education Act (IDEA) and had failed to exhaust administrative remedies under 20 U.S.C. 1415(l).The Sixth Circuit reversed and remanded. The IDEA provides relief only to students who need “specially designed instruction.” Because no ordinary English speaker would describe a ban on eating and chewing as “instruction,” her parents did not need to go through the IDEA’s review process to attempt to seek this ban under the ADA and Rehabilitation Act. However, Knox County offered significant justification for its policy allowing students to eat in class at the magnet school that Doe chose to attend—a school designed to operate like a college–which the district court must consider in the first instance. View "Doe v. Knox County Board of Education" on Justia Law

Indicted in Florida and Connecticut, Villa cooperated with prosecutors. Meanwhile, Villa was indicted in Kentucky. Villa was unaware of those charges when he pled guilty (represented by Perez) in the other cases. Those courts sentenced him to concurrent terms of 140 and 98 months. The Kentucky prosecutor, Judd, emailed Meier (Villa’s attorney) a proposed plea agreement, which assumed no further cooperation but stated that if Villa were willing to cooperate further, Judd would consider recommending a concurrent sentence. Later, Villa spoke to Meier and Perez in a three-way phone call. Meier allegedly did not mention Judd’s offer. Villa met with Judd, an FBI agent, and an investigator. Judd told Villa that the government wanted him to testify against a co-defendant but did not mention the possibility of a cooperation agreement. Villa pled guilty without an agreement and was sentenced to 77 months, consecutive to his other sentences.Villa moved to set aside his sentence, citing ineffective assistance of counsel. When Meier provided the case file, Villa allegedly discovered that Judd had mentioned a cooperation agreement and a concurrent sentence. Villa moved to amend his 28 U.S.C. 2255 motion, attaching an affidavit in which he said that Meier never told him about Judd’s offer and that he would have accepted it, plus an affidavit from Perez. The government submitted an affidavit from Meier, asserting that he told Villa about Judd’s offer.The district court denied Villa's motion, reasoning that Judd’s wanting Villa to testify against Rodriguez-Hernandez should have put Villa on notice of a potential agreement. The Sixth Circuit vacated and remanded for an evidentiary hearing. The district court expected too much of an uncounseled defendant conversing in his second language with a federal prosecutor. Nothing about Villa’s meeting with Judd resolved the factual dispute presented by the affidavits. View "Villa v. United States" on Justia Law

Wells was charged with conspiracy to distribute 500 grams or more of methamphetamine. At his request, the magistrate appointed new counsel and granted continuances. The trial was scheduled for May 2021. In April, Wells pleaded guilty, admitted to the factual allegations, and stated that he had no complaints about his lawyer’s performance. The court scheduled sentencing for August 18; on June 23, Wells sought to withdraw his plea and requested new counsel, alleging that he was misled "about the circumstances of the case.” Wells stated he entered into the plea because of his "assumption that [he] was being charged with another charge.” Counsel explained that Wells had allegedly engaged in conduct that constituted material false statements to a federal officer. Wells confirmed that he wanted to avoid additional charges. Wells then argued that he was not guilty of the conspiracy. Wells confirmed he was able to talk to and understand his counsel.The court declined to replace his counsel but moved the sentencing hearing to September so Wells and his counsel could confer. The court applied a four-level enhancement for Wells’s alleged role as an organizer or leader of the conspiracy, resulting in a Guidelines range of 210-262 months with a mandatory minimum of 120 months. The court considered the 18 U.S.C. 3553(a) factors and mitigating factors, and sentenced Wells to 197 months. The Sixth Circuit affirmed, rejecting arguments that the court 1erred in denying the request to substitute counsel, erred in applying the four-level role enhancement, improperly balanced the 3553(a) factors, and imposed a substantively unreasonable sentence. View "United States v. Wells" on Justia Law

KDE, a thoroughbred racehorse training and care operation, has four locations in Texas, New York, and Kentucky. KDE employed 120-150 employees, including hotwalkers, responsible for walking and bathing the horses to cool them down, and grooms, who prep the horses for training. The hotwalkers work every day of the week from 5:00 a.m. to 10:30 a.m. Some hotwalkers work additional hours every other day, typically from 3:00-4:30 p.m. On average, the hotwalkers work 44.25 hours per week. Grooms also work every day of the week, usually, from 5:00-11:00 a.m. and from 3:00 p.m. to approximately 4:30 p.m. Grooms typically work between 48.5-52.5 hours per week. Most of the employees did not submit timesheets for the additional hours worked, while others submitted inaccurate time sheets; it is impossible to determine how many hours each employee worked. The Department of Labor (DOL) sought an injunction and damages for KDE’s alleged violations of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201, for failing to pay employees the federal minimum wage, for failing to pay employees overtime wages, and for failing to keep adequate and accurate employment records.The Sixth Circuit affirmed a judgment in favor of DOL on the overtime claims. The district court’s grant of summary judgment on the willfulness issue in favor of KDE was inappropriate; genuine issues of material fact existed as to whether KDE willfully failed to pay its employees in compliance with the FLSA. View "Walsh v. KDE Equine, LLC" on Justia Law

McCall, who pleaded guilty to a conspiracy charge involving heroin possession and distribution in 2015 and was sentenced to 235 months’ imprisonment, moved for compassionate release. He cited as“extraordinary and compelling circumstances” the COVID-19 pandemic, his rehabilitation efforts, and the Sixth Circuit’s 2019 decision, “Havis” that “attempted” controlled substance offenses do not qualify as predicate offenses for the purpose of the Sentencing Guidelines’ career-offender enhancement and a subsequent holding applying the decision to convictions for conspiracy to distribute controlled substances. He argued that his prior convictions for drug trafficking and assault no longer qualified as predicate offenses, that he has rehabilitated himself, and that the 18 U.S.C. 3553(a) factors favored granting compassionate release. The government argued that McCall raised “generalized fears of contracting COVID-19, without more,” that post-sentence legal developments are not extraordinary, and that McCall poses a danger to the community.The district court denied McCall’s motion. The Sixth Circuit initially reversed. On rehearing, en banc, the court affirmed. Consistent with the text of the compassionate-release provision of the First Step Act, and the principles, structure, and history of federal sentencing law, non-retroactive changes in sentencing law cannot be “extraordinary and compelling reasons” that warrant relief. Rehabilitative efforts cannot supply “extraordinary and compelling” reasons. With vaccinations widely available to federal prisoners, not can McCall’s COVID-19 claims. View "United States v. McCall" on Justia Law