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

Court erred in dismissing civil rights claims as time-barred without considering whether inmate exhausted administrative remedies and whether limitations period should be tolled.Wisniewski, a Pennsylvania inmate, filed suit under 42 U.S.C. 1983. He worked as an aide in the prison’s law library. Believing that prison policies were harming inmates’ ability to access the courts, he registered complaints. Based on his possession of another inmate’s grievance forms, Wisniewski was found guilty of engaging in or encouraging unauthorized group activity, possession or circulation of a petition, possession of contraband, and lying to an employee. The charges were dismissed after Wisniewski spent 90 days in the Restricted Housing Unit. Wisniewski alleged additional retaliation: removal from his job, tampering with his television, denying him yard time, delaying his disciplinary confinement release, and interfering with his access to legal materials and the photocopier. The district court dismissed the claims arising out of events that occurred more than two years before the filing of the complaint and dismissed the remaining First Amendment retaliation claims for failure to state a claim. The Third Circuit reversed in part; the district court erred in dismissing the claims as time-barred without considering whether Wisniewski properly exhausted administrative remedies and to what extent the limitations period should be tolled. View "Wisniewski v. Fisher" on Justia Law

Counsel was ineffective in failing to object to jury instruction concerning eyewitness testimony, using the words “may not” rather than “need not.” Bey was convicted of murder, attempted murder, and possessing an instrument of crime, based on a nonfatal shooting and a fatal shooting that took place in 2001. Philadelphia Police Officer Taylor was in the parking lot during the shooting: his identification of Bey as the shooter was consistent and unequivocal. However, in statements to Bey’s then-defense counsel, the surviving victim said that his shooter was not Bey. Defense counsel requested a “Kloiber” jury instruction. In instructing the jury, the court changed a word, telling jurors that they “may not” receive an identification with caution rather than instructing them that they “need not” receive the identification with caution. Defense counsel did not object. In his unsuccessful petition for state post-conviction relief, Bey raised an ineffective assistance of counsel claim based on the Kloiber instruction, but failed to highlight the “may not” language. The federal district court held that, to the extent that Bey’s ineffective assistance claims were not procedurally defaulted, Bey could not show prejudice because “there was overwhelming evidence of guilt.” The Third Circuit reversed, based on the Kloiber claim, finding cause to excuse Bey’s procedural default. View "Bey v. Superintendent Greene SCI" on Justia Law

Deadline for petition to Tax Court is jurisdictional and cannot be waived for equitable reasons. When spouses file a joint tax return, each is jointly and severally liable for the tax due, 26 U.S.C. 6013(d); the IRS may grant relief where it would be “inequitable to hold the individual liable.” Rubel and her ex-husband filed joint income tax returns, 2005-2008. They had an unpaid tax liability for each year. In 2015, Rubel sought relief under the innocent spouse relief provisions. On January 4, 2016, the IRS denied relief for tax years 2006-2008. On January 13, the IRS sent a denial for 2005. The determinations stated that Rubel could appeal to the Tax Court within 90 days; Rubel needed to file a petition by April 4 for the 2006-2008 tax years and by April 12 for 2005. Rubel submitted additional information to the IRS. In a March 3 letter, the IRS stated that it “still propose[d] to deny relief” and, incorrectly, “Your time to petition … will end on Apr. 19.” Rubel mailed a petition on April 19. The Third Circuit affirmed the Tax Court’s dismissal. The deadline set forth in 26 U.S.C. 6015(e)(1)(A), is jurisdictional and cannot be altered, regardless of the equities of the case. View "Rubel v. Commissioner Internal Revenue" on Justia Law

Conviction for failing to report murder does not preclude eligibility for withholding of removal. Flores, a Guatemalan native, entered the U.S. illegally. In 2007, she began and ended a relationship Sibrian. Flores returned to South Carolina with a new boyfriend, Perez, in 2008; Sibrian killed Perez. Flores claims she did not report the murder because Sibrian threatened to kill her and her three-year-old daughter. Flores eventually pleaded guilty to accessory after the fact for failing to report the murder. There was no evidence that Flores covered up the homicide, lied to law enforcement, or assisted Sibrian. After serving her prison term, Flores was removed. She re-entered illegally, was arrested for prostitution, and was detained. She stated that she feared returning to Guatemala because: her father wanted to kill her; she had been raped by local gang member following her previous removal; and she feared persecution as a lesbian. The asylum officer determined that Flores had a reasonable fear of persecution. An IJ found that Flores’s accessory conviction rendered her ineligible for withholding of removal and that Flores failed to adequately establish that she would be subjected to torture in Guatemala, as required by the Convention Against Torture. The BIA affirmed. The Third Circuit remanded. Flores’s accessory-after-the-fact conviction is not an offense “relating to obstruction of justice,” nor is it an “aggravated felony” or a “particularly serious crime” under the statute; Flores is eligible for withholding of removal. View "Flores v. Attorney General United States" on Justia Law

District court has authority to consider whether tax debtor’s property should be subject to a forced sale. Cardaci owned Holly Construction. In 2000-2001, the business floundered; Cardaci used $49,600 in taxes withheld from his employees’ wages to pay suppliers and wages, including his $20,000 salary, rather than payroll taxes. Cardaci, now 58, has not had a regular income since 2009 and has medical problems. Beverly Cardaci, 62, earns $62,000 a year as a teacher. The Cardacis bought their Cape May County home in 1978; two adult children live with them part-time, without paying rent. The district court determined that the house has a fair market value of $150,500. It has no mortgage. The government sought to force its sale, to use half of the proceeds to pay Cardaci’s tax liability, with the remainder for Beverly. The court considered various equitable factors, declined to force the sale, fixed an imputed monthly rental value of $1,500 and ordered Cardaci to pay half of that to the IRS each month. Cardaci defaulted on his monthly payment obligation and failed to provide required proof of homeowner’s insurance. The Third Circuit remanded for recalculation of the factors weighing for and against a sale and for recalculation of the Cardacis’ respective interests in the property. View "United States v. Cardaci" on Justia Law

IRS Form 1040, filed after the IRS made an assessment of the taxpayer’s liability, did not constitute “returns” for purposes of determining the dischargeability in bankruptcy of tax debts under 11 U.S.C. 523(a)(1)(B). Giacchi filed his tax returns on time for the years 2000, 2001, and 2002 years after they were due and after the IRS had assessed a liability against him. In 2010, Giacchi filed for Chapter 7 bankruptcy; in 2012 he filed a Chapter 13 petition and brought an adversary proceeding seeking a judgment that his tax liability for the years in question had been discharged in the Chapter 7 proceeding. The district court and Third Circuit affirmed the bankruptcy court’s order denying the discharge. The tax debt was nondischargeable under 11 U.S.C. 523(a)(1)(B) because Giacchi had failed to file tax returns for 2000, 2001, and 2002, and Giacchi’s belatedly filed documents were not “returns” within the meaning of section 523(a)(1)(B) and other applicable law. View "Giacchi v. United States" on Justia Law

Pretrial detainee’s due process rights were not violated by placement in administrative segregation and restriction of phone privileges pending investigation of misconduct. While Steele was a pretrial detainee at New Jersey’s Middlesex County Adult Correction Center, officials received credible information that Steele was threatening other detainees in order to coerce them into using Speedy Bail Bond Service and was receiving compensation from Speedy. After interviewing Steele and advising him of the allegations, officials placed him in administrative segregation while they investigated. Steele’s telephone privileges were restricted to legal calls only. Steele filed suit under 42 U.S.C. 1983, claiming violations of his due process rights when the defendants transferred him to administrative segregation and restricted his phone privileges, interfering with his ability to find a co-signer for his own bail. The Third Circuit affirmed summary judgment for all defendants. Defendants’ limitation of Steele’s phone privileges did not “shock the conscience.” Steele has not met his heavy burden of showing that defendants exaggerated their response to the genuine security considerations that actuated his move. Steele’s transfer was for institutional security reasons rather than for discipline or punishment and he was accorded the required level of process. View "Steele v. Cicchi" on Justia Law

Aliens subject to reinstated removal orders are ineligible to apply for asylum. Cazun was detained at the border and expressed fear of returning to Guatemala. An asylum officer made a negative credible fear determination. An IJ affirmed. An expedited order of removal was issued. Upon Cazun’s return to Guatemala, a drug trafficking gang threatened, tortured, and sexually assaulted her. Cazun fled with her two-year-old son. On her attempted re-entry, Cazun was detained. DHS reinstated her previously-entered removal order rather than initiating a new removal process. An IJ again affirmed a negative credible fear determination. Cazun consulted counsel and, claiming psychological trauma, obtained a new interview, Cazun described sexual assault, torture, and threats against her life and her son's life. The officer concluded that Cazun’s testimony was credible and established a reasonable fear of persecution. An IJ granted Cazun withholding of removal and protection under the Convention Against Torture, but would not consider Cazun’s asylum request. The BIA agreed that she was ineligible under 8 U.S.C. 1231(a)(5), which states that aliens who are subject to a reinstated removal order are “may not apply for any relief under [8 U.S.C. Ch. 12].” The Third Circuit upheld the decision, deferring to the BIA’s “reasonable” interpretation of a statute in which Congress did not speak clearly. View "Cazun v. Attorney General, United States" on Justia Law

Pennsylvania statute, prohibiting payment of fire insurance proceeds to named insured when there are delinquent property taxes, is not limited to situations where the named insured is also responsible for those taxes. Conneaut Lake Park, in Crawford County, included a historic venue, “the Beach Club,” owned by the Trustees. Restoration operated the Club under contract with the Trustees. Restoration insured the Club against fire loss through Erie. When the Club was destroyed by fire, Restoration submitted a claim. In accordance with 40 Pa. Stat 638, Erie required Restoration to obtain a statement of whether back taxes were owed on the property. The statement showed $478,260.75 in delinquent taxes, dating back to 1996, before Restoration’s contract, and owed on the entire 55.33-acre parcel, not just the single acre that included the Club. Erie notified Restoration that it would transfer to the taxing authorities $478,260.75 of the $611,000 insurance proceeds. Erie’s interpleader action was transferred after the Trustees filed for bankruptcy. Restoration argued that Section 638 applied only to situations where the owner of the property is insured and where the tax liabilities are the financial responsibility of the owner. The Third Circuit reinstated the bankruptcy court holding, rejecting Restoration’s argument. The statute does not include any qualifications. When Restoration insured the Club, its rights to any insurance proceeds were subject to the claim of the taxing authorities. Without a legally cognizable property interest, Restoration has no cognizable takings claim. View "In re: Trustees of Conneaut Lake Park, Inc." on Justia Law

Qui tam relator failed to satisfy the False Claims Act’s materiality requirement in alleging that the manufacturer of a widely-prescribed cancer drug, Avastin, suppressed data that caused doctors to certify incorrectly that Avastin was “reasonable and necessary” for certain at-risk Medicare patients. Avastin is FDA-approved and has accounted for $1.13 billion a year in Medicare reimbursements. The relator, formerly the head of healthcare data analytics for the manufacturer, claimed the company ignored and suppressed data that would have shown that Avastin’s side effects for certain patients were more common and severe than reported and that such analyses would have required the company to file adverse event reports with the FDA, and could have resulted in changes to Avastin’s FDA label. He claimed the company caused physicians to submit Medicare claims that were not “reasonable and necessary.” The Third Circuit affirmed dismissal of the claim, stating the allegations may be true but a False Claims Act suit is not the appropriate way to address them. The manufacturer followed all pertinent statutes and regulations. If those laws and regulations are inadequate to protect patients, it falls to the other branches of government to reform them. View "Petratos v. Genentech Inc" on Justia Law