Justia U.S. 3rd Circuit Court of Appeals Opinion Summaries

During the Iraq War, the U.S. military established the Radwaniyah Palace Complex as a base of operations. Staff Sergeant Maseth was stationed there and assigned to live in a barracks building that predated the war and was known to have significant electrical problems. In 2008, Staff Sergeant Maseth died by electrocution while taking a shower in the barracks. The shower was electrified by an ungrounded, unbonded water pump. Maseth’s estate and his parents sued KBR, a military contractor hired to perform maintenance services at the barracks. The district court dismissed, holding that the case was nonjusticiable and, alternatively, that the claims were preempted by the federal policy embodied in the Federal Tort Claims Act’s combatant activities exception, 28 U.S.C. 2680(j). The Third Circuit reversed and remanded, holding that the claims are not preempted by the combatant activities exception and reasoning that the political question issue requires a preliminary determination of which state’s law controls. View "Harris v. Kellogg Brown & Root Servs., Inc." on Justia Law

The Securities and Exchange Commission (SEC) Office of Investigations (OIG) found that the SEC had received numerous substantive complaints since 1992 that raised significant concerns about Madoff’s hedge fund operations that should have led to a thorough investigation of the possibility that Madoff was operating a Ponzi scheme. The SEC conducted five examinations and investigations, but never took the steps necessary to determine whether Madoff was misrepresenting his trading. The OIG found that had these efforts been made, the SEC could have uncovered the Ponzi scheme. Madoff’s clients filed suit under the Federal Tort Claims Act, 28 U.S.C. 1346(b), 2671, to recover damages resulting from the SEC’s failure to uncover and terminate the scheme in a timely manner. The district court dismissed for lack of subject matter jurisdiction, finding that the claims were barred by the discretionary function exception to the FTCA. The Third Circuit affirmed, reasoning that SEC regulations afford examiners discretion regarding the timing, manner, and scope of investigations and that there is a strong presumption that the SEC’s conduct is susceptible to policy analysis. View "Baer v. United States" on Justia Law

Johnson, a Louisiana citizen, and Lucier, a Pennsylvania citizen, suffer from birth defects allegedly caused by their mothers’ use of thalidomide. They claim that newly-accessible evidence revealed that the defendant companies were aware of the drug’s risks while marketing it to pregnant women, and that they have been engaged in a 60-year cover-up to avoid liability. After defendants removed their suit for damages to federal court, the plaintiffs moved to remand the action to state court because four of the defendants are Pennsylvania citizens. The district court denied the motion. The Third Circuit affirmed, concluding that the district court correctly analyzed the citizenship of the companies, examining the principal place of business of one company and the fact that a limited liability company assumes the citizenship of its owner. View "Johnson v. SmithKline Beecham Corp." on Justia Law

The 12 plaintiffs are represented by CVLO, which serves as counsel in approximately 2000 cases pending in multidistrict asbestos litigation. The CVLO cases represent the second largest land-based group of cases to remain in the litigation. The district court dismissed the plaintiffs’ cases, for failure to comply with orders requiring submission of medical reports and histories of exposure to asbestos in compliance with “generally accepted medical standards [that] call for information regarding duration, intensity, time of onset, and setting of exposure to asbestos.” The Third Circuit affirmed, characterizing the court orders as “typical … in the context of the management of multidistrict litigation.” In dismissing plaintiffs’ cases, the court considered and weighed the relevant factors, viewing the dilatory and prejudicial aspects as outweighing all others. The flaw in the submissions went to the very heart of the “meritorious” aspect, making the weighing of that factor impossible. View "In re: Asbestos Prod Liab. Litig." on Justia Law

Hart was a quarterback, player number 13, with the Rutgers University NCAA Men’s Division I Football team, 2002 through 2005, and was required to adhere to the NCAA amateurism rules. These rules state that a collegiate athlete loses his or her “amateur” status if the athlete uses his or her athletics skill (directly or indirectly) for pay in any form in that sport or accepts any remuneration or permits the use of his or her name or picture to advertise, recommend or promote directly the sale or use of a commercial product or service of any kind. Hart was very successful and was included in EA’s successful NCAA Football videogame franchise. In the game NCAA Football 2006, for example, Rutgers’ quarterback, player number 13, is 6’2” tall, weighs 197 pounds and resembles Hart; it shares his home town, team, and class year. Hart sued EA, alleging violation of his right of publicity by appropriating his likeness for use in the NCAA Football series of videogames. The district court dismissed on First Amendment grounds. The Third Circuit reversed, holding that the games did not sufficiently transform Hart’s identity to escape the right of publicity claim. . View "Hart v. Electronic Arts, Inc." on Justia Law

As the tanker Athos neared Paulsboro, New Jersey, an abandoned anchor in the Delaware River punctured its hull and caused 263,000 gallons of crude oil to spill. The owner of the tanker, Frescati, paid $180 million in cleanup costs and ship damages, but was reimbursed for nearly $88 million by the U.S. government under the Oil Pollution Act, 33 U.S.C. 2701. Frescati made claims against CARCO, which ordered the oil and owned the terminal where the Athos was to unload, claiming breach of the safe port/safe berth warranty made to an intermediary responsible for chartering the Athos and negligence and negligent misrepresentation. The government, as a statutory subrogee for the $88 million reimbursement reached a limited settlement agreement. The district court held that CARCO was not liable for the accident, but made no findings of fact and conclusions of law, required by FRCP 52(a)(1). The Third Circuit remanded for findings, but stated that the Athos and Frescati were implied beneficiaries of CARCO‘s safe berth warranty; that the warranty is an express assurance of safety; and that the named port exception to that warranty does not apply to hazards that are unknown and not reasonably foreseeable. The court noted that it is not clear that the warranty was actually breached, absent findings as to the Athos‘s actual draft or the clearance provided. The court further stated that CARCO could be liable in negligence for hazards outside the approach to CARCO‘s terminal. View "United States v. Citgo Asphalt Ref. Co." on Justia Law

Judge Kendall contends that the Daily News and Blackburn defamed him while reporting on his decision to grant bail to Castillo, who subsequently murdered a child; his decision to use house arrest for Williams, who was subsequently involved in a police standoff; and his decision to retire. After a jury verdict awarded $240,000, the trial court awarded the defendants judgment notwithstanding the verdict. The Virgin Island Supreme court affirmed after denying Kendall’s motion for recusal based on its previous contempt proceedings against him. The Third Circuit affirmed without reaching the issue of recusal. Judge Kendall could not establish actual malice as necessary in a public-figure libel action. View "Kendall v. Daily News Publ'g Co." on Justia Law

Araujo, who worked for New Jersey Transit Rail Operations, witnessed a fatal accident in 2008, when a construction worker was electrocuted on the job. He reported an emotional injury and was later suspended for violation of a rule relating to the accident. He filed a complaint with the Occupational Safety & Health Administration Office of Whistleblower Protection, which issued findings in favor of Araujo, and ordered NJT to pay $569,587 in damages, to which NJT objected. Araujo then filed suit, alleging that he was disciplined in retaliation for his participation in an activity protected by the Federal Rail Safety Act, 49 U.S.C. 20109, in reporting his injury. The district court found that the discipline was not retaliatory and granted NJT summary judgment. The Third Circuit reversed, holding that NJT failed to refute Araujo’s assertion that his actions were in line with NJT practice at the time of the accident. View "Araujo v. NJ Transit Rail Operations, Inc." on Justia Law

Zimmerman was riding his motorcycle on an evening in 2008 and approached a railroad crossing. It was dark and a building obscured the tracks. When he was less than 76 feet away, he noticed a train approaching. He tried to stop, but his front brake locked and he flew over the handlebars, colliding with a locomotive and leaving him partially paralyzed. He sued Norfolk, asserting state tort claims. The district court entered summary judgment for the railroad, citing preemption by the Federal Railroad Safety Act, 49 U.S.C. 20106. The Third Circuit affirmed with respect to a claim that the railroad was negligent per se for violating requirements in 23 C.F.R. 646.214(b), which states that crossings with limited sight distance and high train speeds must have adequate warning devices, defined by statute as automatic gates and flashing lights. The court reversed with respect to claims that the railroad negligently failed to warn him of the approaching train; negligently maintained the crossing devices, particularly a sign that warned of the approaching crossing that was covered by tree branches, pavement markings that no longer existed, and crossbucks had been allowed to fall into disrepair; and failed to provide adequate sight distance. View "Zimmerman v. Norfolk S. Corp." on Justia Law

Mala entered Crown Bay Marina, tied the boat to a fueling station and began filling his tank with an automatic gas pump. Before walking to the register to buy oil, Mala asked an attendant to watch his boat. When Mala returned, the tank was overflowing and fuel was spilling into the boat and the water. The attendant shut off the pump and acknowledged that it was malfunctioning. Mala began cleaning up; the attendant provided soap and water. Mala departed; the engine caught fire and exploded. Mala was thrown into the water and was severely burned. Mala sued, claiming negligent training and supervision and negligent maintenance. At the time Mala was imprisoned; he has filed at least 20 pro se lawsuits. The district court concluded that his history of filing frivolous lawsuits precluded in forma pauperis status, 28 U.S.C. 1915; rejected Mala’s jury demand; dismissed certain defendants; held a bench trial at which Mala represented himself; and ruled in favor of Crown Bay, although an advisory jury returned a verdict of $460,000 for Mala. The Third Circuit affirmed, rejecting arguments that the court should have provided additional assistance, wrongfully denied a jury trial, and improperly ruled on post-trial motions. View "Mala v. Crown Bay Marina, Inc." on Justia Law