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

Bistrian, a detainee at the Philadelphia FDC, awaiting trial for wire fraud was placed in the special housing unit (SHU) four times. He became an orderly, allowed to interact with other SHU inmates. A fellow inmate, Northington, asked him to pass notes between inmates. Bistrian told officers, which led to a surveillance operation. Bistrian secretly passed inmate notes to prison officials, who photocopied them and gave Bistrian the originals to pass along. Eventually, Bistrian accidentally gave a photocopy to an inmate. After his cooperation became known, he received threats and made prison officials aware of them. In June 2006, prison officials placed him in the recreation yard with Northington and other inmates, who brutally beat Bistrian. Officials yelled but did not enter the yard until more guards arrived. Bistrian suffered severe injuries. In December 2006, officials again placed him in the SHU, citing death threats against him. At a 2007 sentencing hearing, Bistrian objected to his treatment. Two days after Bistrian’s counsel pressed for an explanation of his SHU time, Bistrian was returned to the SHU. Bistrian alleges that Warden Levi, denying an appeal, said Bistrian “would never see the light of day again.” In Bistrian’s civil rights suit, the district court granted qualified immunity to some defendants but denied summary judgment on Bistrian’s "Bivens" constitutional claims. The Third Circuit affirmed in part. Bistrian has a cognizable Bivens claim for the alleged failure to protect him; an inmate’s claim that prison officials violated his Fifth Amendment rights by failing to protect him against a known risk of substantial harm does not present a new Bivens context. The punitive-detention and First Amendment retaliation claims do amount to an extension of Bivens into a new context; special factors counsel against creating a new Bivens remedy in those contexts. View "Bistrian v. Levi" on Justia Law

Consumer banks Hudson and M&T merged. Hudson’s shareholders claimed they violated the Exchange Act, 15 U.S.C. 78n(a), and SEC Rule 14a-9, by omitting facts concerning M&T’s regulatory compliance from their joint proxy materials: M&T’s having advertised no-fee checking accounts but later switching those accounts to fee-based accounts (consumer violations) and deficiencies in M&T’s Bank Secrecy Act/anti-money laundering compliance program. They argued that because the proxy materials did not discuss M&T’s noncompliant practices, M&T failed to disclose significant risk factors facing the merger, rendering M&T’s opinion statements regarding its adherence to regulatory requirements and the prospects of prompt approval of the merger misleading under Supreme Court precedent (Omnicare). The Third Circuit reversed, in part, the dismissal of the suit. The shareholders pleaded actionable omissions under the SEC Rule but failed to do so under Omnicare. The joint proxy had to comply with a provision that requires issuers to “provide under the caption ‘Risk Factors’ a discussion of the most significant factors that make the offering speculative or risky.” It would be reasonable to infer the consumer violations posed a risk to regulatory approval of the merger, despite cessation of the practice by the time the proxy issued. The disclosures were inadequate as a matter of law. View "Jaroslawicz v. M&T Bank Corp" on Justia Law

Philadelphia Officers stopped a car for a traffic violation. The driver, a front passenger (Robinson), and a rear passenger, Burke, produced identification. Officers noticed the smell of marijuana and saw marijuana residue and decided to search for drugs. Burke was removed and frisked first. Fritz recovered a gun on the floor where Burke had been sitting. Burke and Robinson fled. Burke was quickly apprehended. Officer Madara broadcast that Robinson was a Black male, approximately 6’0”-6’1”, 160-170 pounds, wearing dark blue pants and a red hoodie. The description did not mention any facial hair. Officers Powell and Cherry responded. Powell viewed a photograph of Robinson on the patrol car's computer screen. Less than one minute later, the officers saw an individual (Bey). Bey was a 32-year-old, dark-skinned African-American man with a long beard, weighing about 200 pounds and wearing black sweatpants and a hooded red puffer jacket. Robinson was a 21-year-old, light-skinned African American man with very little hair under his chin and a tattoo on his neck, weighing 160-170 pounds. The officers approached Bey, who had his back to them, and ordered him to show his hands. Bey complied and turned around. Officers recovered a gun. Bey, charged as a felon in possession of a firearm, unsuccessfully moved to suppress the gun. The Third Circuit reversed. While the initial stop was supported by reasonable suspicion, the continuation of that stop, after Bey turned around and police should have realized that Bey did not resemble Robinson, violated the Fourth Amendment. View "United States v. Bey" on Justia Law

In 1973, Bedrosian opened a UBS savings account in Switzerland to make work purchases while traveling abroad. Later, he began to use it as a savings account. From 1973-2007, Handelman prepared Bedrosian’s income tax returns. In the 1990s Bedrosian told Handelman about the Swiss bank account. Handelman replied that Bedrosian had been breaking the law every year by not reporting the account but that his estate could deal with it after he was dead. Bedrosian continued not to report his UBS account. In 2005, Bedrosian created a second (investment) account. Handelman died. Bedrosian authorized his new accountant, Bransky, to obtain his records from Handelman’s offices. Bransky prepared Bedrosian’s 2007 tax return, listing the bank account, and a Report of Foreign Bank and Financial Accounts (FBAR), 31 U.S.C. 5314, showing one of Bedrosian’s UBS accounts ($240,000); the account omitted contained $2 million. Bedrosian did not review the return but simply signed. He later sought legal counsel and began correcting his prior tax filings. In 2015 the IRS assessed a penalty for “willful” failure to disclose the larger UBS account at the statutory maximum of $975,789--50% of the undisclosed account. Bedrosian paid $9,757.89 and sought to recover that payment as an unlawful exaction. The government counterclaimed for $1,007,345. The district court concluded that Bedrosian’s violation was not willful.The Third Circuit remanded, reserving the question of whether federal court jurisdiction is established when a taxpayer files suit to challenge an FBAR penalty before fully paying it. The court clarified that, to prove a “willful” FBAR violation, the government must satisfy the civil willfulness standard, which includes both knowing and reckless conduct. View "Bedrosian v. United States" on Justia Law

Carlson was co-lead counsel representing the plaintiffs in the CBNV litigation. He began working on the case while an associate with the SSEM firm and continued working on it after he left the firm. He entered into agreements with SSEM regarding how fees recovered in CBNV and other cases would be allocated. After the final order approving the CBNV class settlement and fee award, SSEM filed a state court breach of contract action against Carlson, alleging that he owed the firm part of his CBNV fees. Carlson moved the federal district court, which had handled the CNBV litigation, to stay the state case and confirm his fee award. That court exercised ancillary jurisdiction to stay the state case and granted Carlson’s motion, concluding that SSEM was not entitled to any portion of the Carlson's fee because a condition precedent had not occurred. The Third Circuit reversed. The district court erred in exercising ancillary jurisdiction over the state contract dispute because it did not retain jurisdiction over disputes arising from the allocation of fees, the state law contract claim is factually distinct from the federal CBNV claims, exercising ancillary jurisdiction was not necessary to resolve matters properly before it, and the court had no control over the funds SSEM seeks. View "In Re: Community Bank of Northern Virginia Mortgage Lending Practices Litigation" on Justia Law

A New Jersey woman dialed 911 and described an assailant on Grove Street as wearing a red hat, with braids, stating “he is beating her up really badly” and “I think he has a gun.” The caller hung up. East Orange police found a man matching the description (McCants) near 146 Grove Street within one minute, walking with a woman (Fulton). Officers engaged McCants and frisked him due to the “nature of the call.” During the pat down, an officer found a loaded handgun inside a fanny pack McCants was wearing. Officers placed McCants under arrest and recovered distributable quantities of heroin. Written police reports indicated that Fulton showed no signs of injury. McCants was charged with unlawful possession of a firearm by a convicted felon, 18 U.S.C. 922(g)(1) and possession with intent to distribute heroin, 21 U.S.C. 841(a); (b)(1)(C). The Third Circuit affirmed the denial of a motion to suppress and his 120-month sentence as a career offender. Viewing all the circumstances, the anonymous tip bore sufficient indicia of reliability and provided the officers with reasonable suspicion that justified the Terry stop. The caller used the 911 system to report an eyewitness account of domestic violence and provided the officers with a detailed description of the suspect and location, which were confirmed by the police. McCants had two prior convictions for second-degree robbery in New Jersey that qualified as crimes of violence under the Guidelines. View "United States v. McCants" on Justia Law

The NLRB determined that ImageFIRST Uniform Rental violated the National Labor Relations Act, 29 U.S.C. 157, by prohibiting union representatives from distributing pro-union literature in the public right-of-way adjacent to ImageFirst’s facility and by attempting to remove the union representatives from the public right-of-way. The Third Circuit granted the application for enforcement of the NLRB's order on that basis. The court did not uphold the NLRB finding that ImageFirst violated Section 8(a)(1) by threatening to summon and summoning the police when the union representatives refused to leave from the public right-of-way. Substantial evidence did not indicate that ImageFirst’s threat and call to the police were motivated solely by a desire to remove the union representatives. Based on the evidence, no reasonable finder of fact could have failed to find that ImageFirst’s conduct was motivated by a broader—and reasonable—concern over its property interests based on the union representatives’ repeated and ongoing forays onto its private property. View "National Labor Relations Board v. ImageFIRST Uniform Rental Service, Inc." on Justia Law

Liao, a citizen of China, became a lawful U.S. permanent resident in 2005. In 2015, Liao had a physical altercation with his girlfriend, Yu. A neighbor called the police. Yu told responding officers that she was holding her infant son, J.Y., while Liao struck her, but that J.Y. was not “hit or hurt.” She said, however, that during the fight, J.Y. was placed on the bed and fell to the floor. Officers arrested Liao, charging him with three offenses, including endangering the welfare of a child, Pa. Cons. Stat. 4304(a)(1). Liao was convicted and served 106 days of his prison sentence. An IJ ordered Liao’s removal for committing “a crime of domestic violence, a crime of stalking, or a crime of child abuse, child neglect, or child abandonment,” which rendered him removable under 8 U.S.C. 1227(a)(2)(E)(i). The Third Circuit granted a petition for review and remanded to the BIA, reasoning that the elements of his conviction do not match the elements of the crime of “child abuse” under federal law, which requires a specified risk of harm that rises above conduct that creates only the bare potential for non-serious harm. The Pennsylvania child endangerment statute in effect at the time of Liao’s conviction did not require such a risk. View "Liao v. Attorney General United States" on Justia Law

H.C. was born in 2010. His parents separated in 2011 and divorced in 2014. Wife claims that violence was a factor but did not raise that issue in the divorce proceedings. Husband denies those allegations. In 2013, wife began a relationship with her childhood acquaintance, “Deleon,” who resided in New Jersey. She obtained a visa for H.C. to travel to the U.S. with husband’s consent. She visited Deleon by herself and married him in 2014. She did not tell husband about the marriage but indicated that she intended to bring H.C. to the U.S.to live; he refused to consent. Wife filed a domestic violence complaint in Guatemala and obtained a TRO. She took H.C. to the U.S., then sent a message informing husband she was there with H.C. She did not disclose their address “[o]ut of fear.” Husband filed an Application for Return of the Child with the Guatemala Central Authority, which forwarded that application to the U.S. State Department. About 16 months later, having discovered that the Hague Convention on the Civil Aspects of International Child Abduction required him to file where H.C. lived, he filed a Petition in New Jersey. The Third Circuit affirmed the denial of relief under the Convention and the International Child Abduction Remedies Act (ICARA). While ICARA’s one-year filing requirement is not subject to tolling, the delay in filing did not eliminate husband’s remedies under the Convention; the court recognized but declined to exercise its independent authority to order H.C.’s return. There was sufficient evidence that H.C. was well settled in the U.S. View "Castellanos-Monzon v. De La Roca" on Justia Law

In response to the rise in active and mass shooting incidents in the United States, New Jersey enacted a law that limits the amount of ammunition that may be held in a single firearm magazine to no more than 10 rounds, N.J. Stat. 2C:39-1(y), 2C:39-3(j) . A magazine is an implement that increases the ammunition capacity of a firearm; LCMs, magazines that hold more than 10 rounds, allow a shooter to fire multiple shots in a matter of seconds without reloading. Rejecting a challenge citing the Second Amendment, the Fifth Amendment’s Takings Clause, and the Fourteenth Amendment’s Equal Protection Clause, the Third Circuit held that New Jersey’s law reasonably fits the state’s interest in public safety and does not unconstitutionally burden the Second Amendment’s right to self-defense in the home. The law does not require gun owners to surrender their magazines but instead allows them to retain modified magazines or register firearms that have magazines that cannot be modified. Because retired law enforcement officers have training and experience that makes them different from ordinary citizens, the law’s exemption that permits them to possess magazines that can hold more than 10 rounds does not violate the Equal Protection Clause \ View "Association of New Jersey Rifle and Pistol Clubs, Inc. v. Attorney General New Jersey" on Justia Law