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

.In 1990, 19-year-old Bennett was sitting in the passenger seat of a getaway car when his conspirator entered a jewelry store to commit a robbery, shooting the clerk and killing her. Bennett was convicted of first-degree murder. After a capital sentencing hearing, the jury returned a sentence of life imprisonment without the possibility of parole. Two state courts later vacated Bennett’s first-degree murder conviction, finding that the trial court erroneously instructed the jury that it could convict Bennett of first-degree murder based on the shooter’s intent to kill. The Pennsylvania Supreme Court reversed, reinstating the conviction. The Third Circuit granted Bennett’s federal habeas corpus petition, finding that the trial court’s erroneous jury instructions deprived him of due process of law. The court analyzed the issue de novo, concluding that Bennett’s due process claim was not adjudicated on the merits in state court. Due process is violated when a jury instruction relieves the government of its burden of proving every element beyond a reasonable doubt. There is “‘a reasonable likelihood’ that the jury at Bennett’s trial applied the instructions in a way that relieved the state of its burden of proving the specific intent to kill. View "Bennett v. Superintendent Graterford SCI" on Justia Law

Spireas earned $40 million in technology license royalties in 2007-2008s. Royalties paid under a license agreement are usually taxed as ordinary income at 35 percent but Spireas claimed capital gains treatment (15 percent) under 26 U.S.C. 1235(a), which applies to money received “in consideration of” “[a] transfer . . . of property consisting of all substantial rights to a patent.” The IRS disagreed and gave Spireas notice of a $5.8 million deficiency for the two tax years. The Tax Court and Third Circuit affirmed. To qualify for automatic capital-gains treatment, income must be paid in exchange for a “transfer of property” that consists of “all substantial rights” to a “patent.” Not every transfer of “rights” qualifies because the statute grants capital gains treatment only to transfers of property. Spireas’s original theory was that he reduced the formulation to practice in 2000, giving him the required property interest, and later assigned his interest. Spireas later abandoned that theory, arguing that he transferred his rights prospectively in 1998. Because that was two years before the invention of the formulation, Spireas’s second position cannot depend on the legal standard of reduction to actual practice to establish that he held a property right at the time of transfer. Spireas’s sole claim on appeal was, therefore, waived. View "Spireas v. Commissioner of Internal Revenue" on Justia Law

Nixon suffered from mental health problems. He sometimes lived with his long-time partner, Haberle, and their children. On May 20, 2013, he had “a serious mental health episode,” told Haberle that he was suicidal, broke into a friend’s home and took a handgun, then went to his cousin’s apartment. Haberle contacted Nazareth Police. Officer Troxell obtained a warrant for Nixon’s arrest and went to the apartment with other officers, who suggested getting Pennsylvania State Police crisis negotiators or asking Haberle to communicate with Nixon. Troxell called the other officers “a bunch of f[---]ing pussies.” He knocked and identified himself as a police officer. Nixon promptly shot himself. The Third Circuit affirmed, in part, the dismissal of Haberle’s suit. She claimed that Troxell unconstitutionally seized Nixon and that Nixon’s suicide was the foreseeable result of a danger that Troxell created, and violation of the Americans with Disabilities Act, 42 U.S.C. 12101-213 by failing to modify Borough policies and procedures to ensure that disabled individuals would have their needs met during police interactions. Troxell merely knocked on the door and announced his presence, which is not enough to violate the Fourth Amendment. Even if there had been a seizure, it would have been pursuant to a valid warrant and not unlawful. Troxell’s actions do not “shock the conscience.” The court remanded to allow Haberle to amend her ADA claim. View "Haberle v. Troxell" on Justia Law

Lewin, a citizen of Jamaica, was admitted to the U.S. in 1987 as a legal permanent resident. In 2000, Lewin was convicted of receiving stolen property in the third degree, N.J. Stat. 2C:20-7(a), and was sentenced to five years of probation. Seven years later, following a finding that he violated the terms of his probation, Lewin was resentenced to four years of imprisonment. Another seven years later, Lewin was charged as removable under 8 U.S.C. 1227(a)(2)(A)(ii)(iii). An Immigration Judge concluded that Lewin is removable for having been convicted of an aggravated felony under section 1101(a)(43)(G), based on his 2000 conviction for receipt of stolen property and later resentencing and that the conviction barred him from relief in the form of cancellation of removal. The Board of Immigration Appeals affirmed. The Third Circuit denied Lewin’s petition for review, applying the categorical approach element-by-element analysis to determine whether Lewin’s New Jersey receiving stolen property conviction “fit” the generic definition of receiving stolen property under section 1101(a)(43)(G). On its face, the New Jersey statute’s language, “knowing that [the property] has been stolen, or believing that it is probably stolen,” refers to a specific defendant’s knowledge or belief, and that element must be proved beyond a reasonable doubt. View "Lewin v. Attorney General United States" on Justia Law

Plaintiffs sued on behalf of a proposed nationwide class of individuals who “owned, own, or acquired” structures on which Owens Corning's "Oakridge" fiberglass asphalt roofing shingles roofing shingles are or have been installed since 1986, claiming that the shingles were “plagued by design flaws that result in cracking, curling and degranulation” and “will eventually fail, causing property damage, and costing consumers substantial removal and replacement costs.” The district court rejected the suit on summary judgment, finding that the claims had been discharged in bankruptcy. The Third Circuit partially reversed. After the case was remanded, others filed similar suits in district courts in other states, which were transferred for consolidation. Plaintiffs proposed two classes: property owners from four states, asserting various state-law claims, and a nationwide class seeking a ruling regarding the legal standard governing whether Owens Corning can use a bankruptcy discharge defense. The Third Circuit affirmed the denial of class certification. The Nationwide Class cannot satisfy Rule 23(a)’s commonality requirement because the only common question it poses can be answered only by an advisory opinion, which is forbidden by Article III. The Four-State Class cannot satisfy Rule 23(b)(3)’s predominance requirement. Plaintiffs did not allege a defect common to the class that might be proved by classwide evidence. View "Gonzalez v. Owens Corning" on Justia Law

Plaintiffs sued on behalf of a proposed nationwide class of individuals who “owned, own, or acquired” structures on which Owens Corning's "Oakridge" fiberglass asphalt roofing shingles roofing shingles are or have been installed since 1986, claiming that the shingles were “plagued by design flaws that result in cracking, curling and degranulation” and “will eventually fail, causing property damage, and costing consumers substantial removal and replacement costs.” The district court rejected the suit on summary judgment, finding that the claims had been discharged in bankruptcy. The Third Circuit partially reversed. After the case was remanded, others filed similar suits in district courts in other states, which were transferred for consolidation. Plaintiffs proposed two classes: property owners from four states, asserting various state-law claims, and a nationwide class seeking a ruling regarding the legal standard governing whether Owens Corning can use a bankruptcy discharge defense. The Third Circuit affirmed the denial of class certification. The Nationwide Class cannot satisfy Rule 23(a)’s commonality requirement because the only common question it poses can be answered only by an advisory opinion, which is forbidden by Article III. The Four-State Class cannot satisfy Rule 23(b)(3)’s predominance requirement. Plaintiffs did not allege a defect common to the class that might be proved by classwide evidence. View "Gonzalez v. Owens Corning" on Justia Law

Paladino, a New Jersey State Prison inmate, filed a 42 U.S.C. 1983 civil rights action against prison employees alleging a number of constitutional claims. The district court granted summary judgment on many of his claims, finding that he failed to exhaust administrative remedies, as required by the Prison Litigation Reform Act of 1995. The Third Circuit affirmed with respect to most of Paladino’s claims but vacated with respect to Paladino’s excessive force claim based on an alleged 2010 assault, finding a genuine issue of material fact regarding whether he exhausted that claim because there was a conflict between the prison’s records and Paladino’s deposition testimony. Some type of notice and an opportunity to respond are needed before a district court elects to decide factual disputes regarding exhaustion. View "Paladino v. Newsome" on Justia Law

In 2006, Randall hired Business to Business Solutions to fax unsolicited advertisements for his roofing company to thousands of fax numbers. The first transmissions were sent on March 29 after Randall’s office manager, Clemmer, with Miley’s (the company’s president and co-owner) handwritten approval, confirmed by fax the content, the quantity of faxes t, and the areas to be targeted. Randall received complaints and Clemmer contacted Solutions to have several fax numbers removed from the list. On March 31, Solutions sent a second wave of faxes, which prompted several recipients to ask that their fax numbers removed. Two days later came a third burst of transmissions; on May 15, Solutions sent a final “blast” of 12,000 faxes. City Select, on behalf of itself and a class of similarly-situated fax recipients, sued Randall and Miley under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227. The Third Circuit affirmed a judgment finding Miley not liable, upholding a jury instruction that asked whether Miley had “direct, personal participation at a level of involvement that was ‘significant.’” View "City Select Auto Sales Inc. v. David Randall Associates Inc." on Justia Law

Douglas was charged with conspiracy to distribute and to possess with intent to distribute cocaine and conspiracy to engage in money laundering. While on bail, Douglas booked a flight to Jamaica. Douglas failed to appear for the first day of trial. The next day he submitted documents showing that he had been admitted to the emergency room, with chest pain. Douglas’s EKG revealed possible heart blockage. His blood tests indicated a possible heart attack. He was convicted. The court noted testimony that Douglas smuggled 10-13 kilograms of cocaine, 40-50 times, that Douglas used his airport security clearance, and Douglas’s failure to appear, and imposed a 240-month sentence. The Third Circuit initially affirmed as to the drug quantity and application of the abuse of a position of trust enhancement and reversed the obstruction of justice enhancement, but subsequently vacated the sentence. Sentencing Guideline 3B1.3 describes a two-level enhancement “[i]f the defendant abused a position of public or private trust . . . in a manner that significantly facilitated the commission or concealment of the offense.” The commentary defines “position of public or private trust” as one “characterized by professional or managerial discretion.” Douglas is not subject to the enhancement by virtue of his position as an airline mechanic, which did not involve “professional or managerial discretion.” View "United States v. Douglas" on Justia Law

Huynh paid an employee of a California car dealership to give him customer identification and credit reporting information, which he used, with photographs of his co-conspirators, to obtain counterfeit driver’s licenses and credit cards. At jewelry stores in 16 states, Huynh’s co-conspirators used those documents to obtain credit to purchase luxury wristwatches with a total value of $815,553. Huynh sold the watches to a "fence." Huynh selected the jewelry stores, made all travel arrangements, and supplied the credit information. Huynh pleaded guilty to conspiracy to commit bank and wire fraud, 18 U.S.C. 1349. The parties stipulated to a 12-level increase in his sentencing base level for the amount of loss; a two-level increase for the number of victims; and a two-level increase because the scheme used an unlawfully produced means of identification, The government was permitted to seek a four-level enhancement for Huynh’s role as an “organizer or leader of a criminal activity that involved five or more participants or was otherwise extensive.” The parties did not address a two-level enhancement for relocating “a fraudulent scheme to another jurisdiction to evade law enforcement.” The court adopted both enhancements. The Third Circuit affirmed Huynh’s 70-month sentence, rejecting an argument that the government breached the plea agreement and noting Huynh’s pattern of targeting stores at great distances from California and from one another, and specific efforts to evade detection. Huynh exercised significant “control over others in the commission of the offense.” View "United States v. Huynh" on Justia Law