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

A 2010 airplane crash in West Palm Beach resulted in the death of the pilot and three passengers. The estates filed suit in state court; the defendants removed the case to federal court. The district court granted plaintiffs’ motion to remand the matter to Pennsylvania, finding that one defendant is a citizen of Pennsylvania, and not diverse from all plaintiffs. Defendants claim that the remand was based on unsubstantiated argument, unauthenticated documents, and facts outside the record that had not been established by affidavit or testimony. The district court denied a motion to reconsider. The Third Circuit dismissed an appeal. Although the district court had jurisdiction to rule on the motion to reconsider the remand order, the appellate court has no jurisdiction to review its ruling on the motion for reconsideration. The denial of reconsideration was not a collateral matter over which the federal court retained jurisdiction. View "Agostini v. Piper Aircraft Corp." on Justia Law

In first grade (2000-2001 school year), S.H., who is African-American, was placed in Title I classes with her mother’s consent. S.H. received Title I services through fifth grade, but continued to struggle. In fifth grade she was diagnosed with a learning disability. An Individualized Education Program team considered S.H.’s personal sentiment that she did not want to be in special education and obtained her mother’s approval for services. In 2009, at her mother’s request, S.H. was evaluated by an independent psychologist, who concluded that S.H.’s learning disabled designation was, and always had been, erroneous. S.H. was removed from special education and, as of 2012 had been accepted at several colleges. She and her mother sued under the Individuals with Disabilities Education Act, the Rehabilitation Act, and the Americans with Disabilities Act, claiming that the district misdiagnosed S.H. for several years, and was liable for compensatory education and compensatory damages. The district court rejected the claims. The Third Circuit affirmed, reasoning that the plaintiffs presented no evidence that would create a genuine dispute as to whether the district knew, prior to the 2009 evaluation, that S.H. had likely been misidentified as learning disabled and that The DIA only permits a child with a disability to bring a claim; S.H. is not disabled. View "S. H. v. Lower Merion Sch. Dist." on Justia Law

The Criminal Justice Act, 18 U.S.C. 3006A(a), requires courts to furnish legal counsel to criminal defendants “financially unable to obtain adequate representation.” Konrad was appointed a federal defender based on information he provided in a financial disclosure affidavit. At sentencing, the district court found discrepancies between Konrad’s presentencing report and his financial disclosure and, after a hearing, found that Konrad had $70,463 in two individual retirement accounts so he was not financially unable to pay the cost of legal representation. Konrad had failed to disclose the value of his home , had significantly under-reported income, and had reported the value of the retirement accounts inaccurately. The court ordered Konrad to repay $6,000. The Third Circuit affirmed; individual retirement funds and jointly-held bank accounts can be available funds within the meaning of the Criminal Justice Act and the court acted within its discretion in ordering Konrad to repay the market value of his legal representation rather than the hourly rate paid to an attorney appointed under the Criminal Justice Act. View "United States v. Konrad" on Justia Law

For more than 30 years, Grace has defended itself against asbestos-related lawsuits filed by building owners seeking redress for costs involved in removing Grace products. AMH owns a hospital complex that used Grace products in its construction and filed a class action lawsuit in South Carolina state court. Before resolution of that litigation, Grace filed a petition for Chapter 11 protection. After about 10 years, most property damage claims against Grace had been settled, contingent on approval of an 11 U.S.C. 524(g) trust and an injunction channeling property damage claims against Grace to that trust for payment. AMH did not settle. The Bankruptcy Court confirmed Grace’s reorganization, including a trust and channeling injunction, over AMH’s objections. The district court and Third Circuit affirmed, rejecting arguments that the reorganization plan did not meet the requirements of section 524(g), which provides a mechanism for handling overwhelming asbestos-related liabilities in Chapter 11 proceedings; that the plan failed to provide equal treatment as required by 11 U.S.C. 1123(a)(4), (C) ; that Grace did not show that the Plan was proposed in good faith under 11 U.S.C. 1129(a) and did not show that the Plan is feasible. View "In Re: W.R. Grace & Co." on Justia Law

The NLRB Regional Director brought charges of unfair labor practices against Somerset Valley. While administrative proceedings were pending, the NLRB brought a petition under the National Labor Relations Act, 29 U.S.C. 160(j), seeking to prevent Somerset Valley from engaging in behavior that violates the Act and to reinstate certain employees. The district court enjoined Somerset Valley from interfering with its employees associating with the labor union and required reinstatement of two discharged employees. The court refused to order Somerset Valley to reinstate two other employees or to order rescission of notices of discipline filed against certain employees. Before the merits of the parties’ cross-appeals were briefed, the NLRB issued a decision that rendered the temporary injunctive relief moot. The Third Circuit dismissed an appeal and remanded with instructions to vacate the prior order. Neither party has relinquished its challenge to that order; vacating the order protects the parties from any adverse legal consequences of that unreviewed opinion. View "Lightner v. 1621 Route 22 West Operating Co., LLC" on Justia Law

Plaintiffs sued their employer on behalf of themselves and “similarly situated” individuals, alleging that the employer violated the Fair Labor Standards Act, 29 U.S.C. 201, by failing to ensure that they were paid for time worked during meal breaks. Notice was directed to potential collective-action members, and individuals opted into the lawsuit. FLSA collective actions are subject to “opt-ins,” unlike class actions under FRCP 23, under which those not wishing to be included must “opt out” after the class is certified. After preliminary discovery, the district court dismissed the claims of the opt-in plaintiffs without prejudice; at the request of the remaining plaintiffs, the court dismissed remaining claims with prejudice to enable appellate review. The Third Circuit dismissed an appeal for lack of jurisdiction, finding that the named plaintiffs lack final orders appealable under 28 U.S.C. 1291. Plaintiffs attempted to short-circuit the procedure for appealing an interlocutory order that is separate from, and unrelated to, the merits of the case. They could have obtained review of the decertification order by proceeding to final judgment on the merits of their individual or could have asked the trial court to certify their interlocutory orders for appeal. View "Camesi v. Univ. of Pittsburgh Medical Ctr." on Justia Law

Grace has manufactured and sold specialty chemicals and construction materials for more than 100 years. The company began facing asbestos-related lawsuits in the 1970s, based on several products and activities, including operation of a Montana vermiculite mine that released asbestos-containing dust into the atmosphere and sale of Zonolite Attic Insulation (ZAI). Montana and the Crown (Canada) have been sued for alleged failure to warn citizens of the risks posed by Grace’s products and activities. Montana settled its cases for $43 million in 2011. The Crown is a defendant in lawsuits arising from the use of ZAI. Montana and the Crown sought indemnification from Grace. Grace sought protection under the Bankruptcy Code, 11 U.S.C. 524(g), which allows a company to establish a trust to handle such liabilities. Montana and the Crown objected to confirmation of a Plan of Reorganization that will send all asbestos claims to two trusts, allowing protected parties to be “unconditionally, irrevocably and fully released.” The personal injury trust is funded by $ 1.5 billion from settlements with Grace’s insurers and former affiliates, an initial payment from Grace of $ 450 million, a warrant to acquire 10 million shares of Grace common stock at $ 17 per share, and annual cash payments from Grace of $100-110 million through 2033. The property damage trust is funded by an initial payment of 180 million dollars, and a subsequent payment of 30 million dollars. The two trusts have separate mechanisms for resolving claims. The bankruptcy court, the district court, and the Third Circuit confirmed the plan. View "In re: W.R. Grace & Co." on Justia Law

In 1999, Klein and Weidner divorced in California. Weidner was ordered to pay spousal and child support. He made some child support payments but had paid no spousal support, when Klein filed suit, resulting in a 2008, judgment that he owed $548,797.07 in unpaid spousal and child support. Klein later challenged, under the Pennsylvania Uniform Fraudulent Transfer Act, Weidner’s 2006 transfer of Pennsylvania real estate to himself and his new wife as tenants by the entirety. The district court granted Klein summary judgment and awarded $548,797.07 in punitive damages; the Weidners were ordered to execute a deed transferring the property back to Weidner in fee simple by January 15, 2010. Klein also successfully attacked Weidner’s transfer of an ownership interest in a company, DMW, and attempted to pierce DMW’s corporate veil. The Third Circuit affirmed, holding that the new wife was not a good faith transferee and that the Pennsylvania statute does authorize an award of punitive damages. View "Klein v. Weidner" on Justia Law

Castillo, a citizen of Peru, entered the U.S. without inspection in 1985, became a temporary resident in 1988, and adjusted his status to lawful permanent residency in 1990. In 1994, he pleaded guilty to shoplifting in New Jersey and was ordered to pay a $200 fine. He had been convicted for receiving stolen property in 1989 and for contempt. Charged as removable, Castillo claimed that he was eligible for cancellation of removal under 8 U.S.C. 1229b(a), an alien who has “resided in the United States continuously for 7 years after having been admitted in any status.” Continuous residence ends “when the alien has committed an offense referred to in section 1182(a)(2) … that renders the alien . . . removable… under section 1227(a)(2).” Under 8 U.S.C. 1227(a)(2)(A)(ii), an alien is removable if convicted of two or more crimes involving moral turpitude, not arising out of a single scheme of criminal misconduct. The IJ denied relief and, following a remand, the BIA affirmed. The Third Circuit remanded for a second time, directing the BIA to consider whether Castillo was convicted of a crime under section 1227(a)(2)(A)(ii) and to provide an explicit justification for its answer. View "Castillo v. Att'y Gen. of the U.S." on Justia Law

Figueroa joined the Camden police force in 2003. In 2008, he was transferred to a new Special Operations Unit created to target guns, drugs and violence with his regular partner, Bayard. In 2011, Figueroa and Bayard were charged with a series of civil rights violations concerning falsification of evidence in drug cases. Convicted under 18 U.S.C. 241 and 242, Figueroa was sentenced to 10 years imprisonment. The Third Circuit affirmed, rejecting claims that the district court erred by admitting the out-of-court statement of co-defendant Bayard; by excluding, as cumulative, police reports that Figueroa offered into evidence; by allowing improper expert opinion testimony from a prosecution fact witness on issues of constitutional law; and by refusing to give the jury a requested instruction concerning specific intent. The court properly applied the drug distribution sentencing guideline to the civil rights violations after finding beyond a reasonable doubt that Figueroa was involved in distribution of narcotics. View "United States v. Figueroa" on Justia Law