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

After a failed merger between Cooper Tire and Apollo Tyres, OFI Asset Management, purporting to act for similarly situated investors, filed a class action against Cooper and its officers. OFI claims that, during merger negotiations, the defendants made material misrepresentations in statements to investors, in violation of federal securities laws, 15 U.S.C. 78j(b), 78n(a), and 78t(a). The Third Circuit affirmed the district court's dismissal of the case, rejecting arguments that that court improperly managed the presentation of arguments. The court upheld a finding that OFI failed to allege sufficient facts to support its claims. The court had ordered OFI to submit a letter “identifying and verbatim quoting” the five most compelling examples it could muster of false or fraudulent statements by Cooper, with three factual allegations demonstrating the falsity of each statement and three factual allegations supporting a finding of scienter as to the making of the statements. The court had subsequently determined that the statements identified as problematic by OFI were either not false or misleading, were “forward-looking” statements protected by the safe harbor established by the Private Securities Litigation Reform Act of 1995, lacked a sufficient showing of scienter, or suffered from some combination of those infirmities. View "OFI Asset Mgmt. v. Cooper Tire & Rubber" on Justia Law

S.D. suffers from “multiple medical problems including chronic sinusitis with frequent acute exacerbations, allergic rhinitis, and intermittent asthma” that allegedly “substantially limit him in . . . the life activity of learning.”. S.D.’s doctor concluded that these medical problems “make it likely that he will have frequent school absence[s] due to acute [and] underlying chronic illness,” and suggested that S.D. “should qualify for [Section] 504 plan modifications for school” under the Rehabilitation Act, 29 U.S.C. 794(a). Dissatisfied with the school’s plan, which involved Saturday sessions and a summer course, his parents sued, citing the Rehabilitation Act, the Americans with Disabilities Act, 42 U.S.C. 12101–12213, the First and Fourteenth Amendments (42 U.S.C. 1983), and New Jersey’s Law Against Discrimination. The district court dismissed for failure to exhaust the administrative process provided for by the Individuals with Disabilities Education Act, 20 U.S.C. 1400–1482. The Third Circuit affirmed. While the claims alleged discrimination and retaliation for enforcement of the child’s rights under a non-IDEA statute, the alleged injuries are educational in nature and implicate services within the purview of the IDEA, so administrative remedies must be exhausted. View "S. D. v. Haddon Heights Bd. of Educ." on Justia Law

Dahl placed advertisements on Craigslist seeking sexual encounters with young males. Two undercover law-enforcement agents, acting independently, replied, representing themselves as 15-year-old boys. Through email, Dahl engaged in graphic sexual conversations, requested photographs of the boys, and attempted to arrange in-person sexual encounters. An agent agreed to meet Dahl at his house, ostensibly for a sexual encounter. Dahl was arrested and pleaded guilty to attempted use of an interstate commerce facility to entice a minor to engage in sexual conduct, 18 U.S.C. 2422(b); attempted enticement of a minor to travel in interstate commerce to engage in sexual activity, section 2422(a); and transfer of obscene material to a minor, section 1470. Dahl has Delaware convictions related to sexual activity with minors, including a 1991 conviction of first- and third-degree unlawful sexual contact relating to encounters with two 17-year-old boys and a 2001 conviction of second-degree unlawful sexual contact relating to an encounter with a 14-year-old boy. The court sentenced him under the Repeat and Dangerous Sex Offender guideline, U.S.S.G. 4B1.5, to the top-range sentence of 293 months in prison, with 20 years of supervised release. The Third Circuit remanded, finding that his state convictions are not categorically “sex offense convictions” under the Guidelines, in light of recent Supreme Court rulings. View "United States v. Dahl" on Justia Law

Parkell, a Delaware state prisoner, claims that state officials deprived him of his rights under the Fourth, Eighth, and Fourteenth Amendments by subjecting him to unreasonable thrice-daily visual body-cavity searches and harsh conditions and by depriving him of adequate medical care. In his suit under 42 U.S.C. 1983, the district court granted the defendants summary judgment, concluding that: Parkell could not pursue damages from corrections officials in their official capacities because of the Eleventh Amendment, and any claim for prospective relief was rendered moot when Parkell was moved; his medical needs Eighth Amendment claim failed because any deficiencies in his medical care did not rise to the level of deliberate indifference to his needs; his conditions-of-confinement Eighth Amendment claim failed because the conditions did not constitute a denial of basic human needs, and the defendants were not personally involved in creating the conditions; and his due process claim​ failed because the conditions of his confinement did not constitute atypical and significant hardship in comparison to general prison conditions. The Third Circuit reversed only as to Parkell’s claim under the Fourth Amendment; that the state defendants lacked personal involvement in past constitutional violations does not preclude Parkell from obtaining prospective injunctive relief for ongoing violations. View "Parkell v. Danberg" on Justia Law

In 1999, Jones fled from Pennsylvania police, who discovered a gun in the area and concluded that Jones had discarded it. Jones was convicted under 18 U.S.C. 922(g)(1); 924(e) for possession of a firearm by a convicted felon. The court sentenced Jones under the Armed Career Criminal Act, which requires a sentence of at least 180 months for anyone convicted under section 922(g) who has three convictions for a “violent felony” or “serious drug offense.” Jones had convictions for robbery and aggravated assault, and two controlled substances convictions. The Third Circuit affirmed. Jones was denied post-conviction relief. Jones was released from custody in 2013. Jones was later arrested on state drug charges. The court ordered him returned to prison. Under 18 U.S.C. 3583(e)(3), the maximum permissible revocation sentence depends on the classification of “the offense that resulted in the term of supervised release.” Relying on the Supreme Court’s 2013 "Alleyne" decision, Jones unsuccessfully argued that he was subject to no more than two years’ imprisonment because his offense was properly categorized as a Class C felony. The court concluded that his offense was a Class A felony and imposed a 40-month sentence. The Third Circuit affirmed, rejecting “ Jones’s efforts to bifurcate his original conviction and sentence from his revocation sentence, and to characterize this appeal as a direct challenge to a classification determination made in imposing the latter.” View "United States v. Jones" on Justia Law

Deborah is a New Jersey charity hospital. CGPA is a group of New Jersey cardiologists. Because no CGPA physician could perform advanced cardiac interventional procedures (ACI) procedures, in 1992, CGPA and Deborah began a relationship that resulted in the transfer of numerous ACI patients to Deborah. In 2005, the CGPA doctors entered into an exclusive agreement to provide Virtua Hospital with cardiovascular services. Referrals to Deborah dropped off significantly. In 2006, CGPA hired a doctor who had previously worked at Deborah and was capable of performing some ACIs. CGPA terminated its agreement with Deborah. In 2007, CGPA signed agreements with doctors who worked primarily at Penn Presbyterian Hospital. Virtua is not mentioned in those contracts, but Deborah alleges that Virtua was an unnamed participant in negotiations and that the goal was to drive Deborah out of business. Deborah sued, asserting that this arrangement constituted an illegal restraint on trade and resulted in harm to competition, in violation of the Sherman Act. The district court granted Virtua and CGPA summary judgment, holding that Deborah did not introduce sufficient evidence to show injury to competition in the designated market. The Third Circuit affirmed, noting that Deborah identified the “products” and i the market at issue. Virtua did not challenge Deborah’s market definitions in the district court. Having set the parameters for the dispute, Deborah failed to meet its self-imposed burden. View "Deborah Heart & Lung Center v. Virtua Health Inc" on Justia Law

Named plaintiffs, 2008-2011 graduates of the Widener School of Law, claim that Widener violated the New Jersey and Delaware Consumer Fraud Acts by intentionally publishing misleading statistics, reporting that in 2005-2011, 90-97% of graduates were employed. In reality, only 50-70% of Widener graduates secured full-time legal positions. The school included non-legal and part-time positions without reporting the breakdown. In 2011, Widener improved its reporting, but allegedly continued to gather unreliable information by crediting secondhand accounts of employment and avoiding responses from unemployed graduates. The plaintiffs claim that publishing misleading statistics enabled Widener to inflate tuition. The plaintiffs moved to certify a class of “persons who enrolled in Widener University School of Law and were charged full or part-time tuition within the statutory period.” The district court denied class certification, finding that the plaintiffs could not meet FRCP 23(b)(3)’s requirement that common questions “predominate” over individual questions because they had not shown that they could prove damages by common evidence. The court noted differences in class members’ employment outcomes and that New Jersey has rejected a “fraud-on-the-market” theory outside the securities fraud context. Plaintiffs could not meet Rule 23(a)(3)’s requirement that the named plaintiffs’ claims be “typical” of the claims of the proposed class; students who enrolled in 2012 and later, after Widener improved its reporting, might prefer not to have Widener’s reputation tarnished by the lawsuit. The Third Circuit affirmed. The plaintiffs’ theory was insufficiently supported by class-wide evidence. View "Harnish v. Widener Univ. Sch. of Law" on Justia Law

Raab filed a civil complaint (42 U.S.C. 1983) against police officer Ruch and his employer, Ocean. Ruch had stopped his patrol car outside of Raab’s residence to investigate a trailer that had been parked on the street for a month and had no license plate. Ruch requested that it be towed. Shortly thereafter, Raab went outside and told Ruch that the trailer belonged to her brother-in-law and that she would move the trailer into her driveway. Ruch told her not to move the trailer, but she still tried. With the help of a passerby, the trailer was moved into the driveway. The parties dispute what happened next. Raab claims that Ruch grabbed her arm, handcuffed her, and threw her to the ground, then repeatedly pulled and twisted the handcuffs. Ruch claims that Raab fell to the ground while attacking him. Ruch called his supervisor, who arrived, called an ambulance, and told Ruch to remove the handcuffs. The district court granted summary judgment in favor of Ocean City. Raab and Ruch settled all outstanding claims for $150,000, exclusive of attorney’s fees and costs. The court denied both parties attorney’s fees. The Third Circuit reversed in part. A settling plaintiff in a civil rights action can be a “prevailing party” where the district court sua sponte entered a dismissal order incorporating and retaining jurisdiction over the settlement agreement. The court upheld the denial of Ocean City’s motion for attorney’s fees. View "Raab v. City of Ocean City" on Justia Law

In 2005 Constand alleged that William Cosby had drugged and sexually assaulted her at his home. During the​ discovery process, Constand’s counsel took Cosby’s deposition and questioned him regarding whether other women had ingested Quaaludes prior to a sexual encounter with Cosby. The deposition resulted in discovery disputes. The court entered an interim order, requiring the parties to file discovery documents under seal. The Associated Press (AP) moved to intervene and opposed the order. The court denied the motion, stating that the record was not yet sufficient to determine whether a permanent seal was warranted. The sealed documents reveal several damaging admissions during Cosby's deposition, including that he had: engaged in extramarital affairs; acquired Quaaludes and engaged in sexual relations with a woman after she ingested the drug; and given money to one woman and offered money to Constand. Before the court could rule on whether the documents should remain sealed permanently, Cosby and Constand reached a confidential settlement. The case was dismissed. The interim sealing order continued in effect and the documents remained sealed. Though Local Rules require that the Clerk of Court send a notice stating that the documents will be unsealed unless an objection is filed, eight years passed without the Clerk taking action. In 2015, the court unsealed the records, following a request by AP. Finding an appeal moot, the Third Circuit declined to address whether the court properly balanced the public and private interests. View "Constand v. Cosby" on Justia Law

With little formal education (a high school GED) Miller passed several securities industry examinations and “maintained a public persona of a very successful entrepreneur.” Miller sold investors over $41 million in phony “promissory notes,” which were securities under the Securities Act of 1933 and the Securities Exchange Act of 1934, 15 U.S.C. 77b(a)(1), 78c(a)(10), and not exempt from federal or state registration requirements. Miller did not register the notes; he squandered the money, operating a Ponzi scheme. Miller pled guilty to one count of securities fraud, 15 U.S.C. 78j(b), and one count of tax evasion, 26 U.S.C. 7201. He was sentenced to 120 months’ imprisonment. The Third Circuit affirmed, rejecting an argument that the court improperly applied the Sentencing Guidelines investment adviser enhancement, U.S.S.G. 2B1.1(b)(19)(A)(iii). The court interpreted the Investment Advisers Act of 1940, 15 U.S.C. 80b-2(a)(11) to apply broadly, with exceptions that do not apply to Miller. The court also rejected arguments that the government breached Miller’s plea agreement and that his sentence was substantively unreasonable. View "United States v. Miller" on Justia Law