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

The Delaware River Basin Commission banned high-volume hydraulic fracturing (fracking) within the Delaware River Basin, reflecting its determination that fracking “poses significant, immediate and long-term risks to the development, conservation, utilization, management, and preservation of the [Basin’s] water resources.” The ban codified a “de facto moratorium” on natural gas extraction in the Basin since 2010. Two Pennsylvania state senators, the Pennsylvania Senate Republican Caucus, and several Pennsylvania municipalities challenged the ban, alleging that the Commission exceeded its authority under the Delaware River Basin Compact, violated the Takings Clause, illegally exercised the power of eminent domain, and violated the Constitution’s guarantee of a republican form of government.The Third Circuit affirmed the dismissal of the suit for lack of standing. No plaintiff alleged the kinds of injuries that Article III demands. Legislative injuries claimed by the state senators and the Republican Caucus affect the state legislature as a whole; under Supreme Court precedent, “individual members lack standing to assert the institutional interests of a legislature.” The municipalities alleged economic injuries that are “conjectural” and “hypothetical” rather than “actual and imminent.” None of the plaintiffs have standing as trustees of Pennsylvania’s public natural resources under the Pennsylvania Constitution's Environmental Rights Amendment because the fracking ban has not cognizably harmed the trust. View "Yaw v. Delaware River Basin Commission" on Justia Law

Canada, a Black man, worked for Grossi for 10 years. Canada suffered from back problems and claims that Grossi prevented him from accessing Family Medical Leave Act (FMLA) forms and harassed him when he tried to use FMLA leave. Osorio, Grossi’s director of human resources, testified that she “let [Canada] take his FMLA” leave. Canada sued, alleging race discrimination, retaliation, and a hostile work environment under Title VII, 42 U.S.C. 1981, the Americans with Disabilities Act, and the FMLA.Canada was terminated a month later. Grossi based the termination on text messages found on Canada’s cell phone. Grossi claims that Canada was using a locker on the shop floor which was designated as a company tool locker. While Canada was on vacation, Grossi cut the padlock off of his locker because the lockers needed to be moved. Osorio testified that she believed that the phone might have been a company phone and guessed the phone’s password. Osorio found text messages from a year earlier in which Canada appeared to have solicited prostitutes “while at work and clocked in.”The district court granted Grossi summary judgment. The Third Circuit reversed, in part. An employer’s motivation for investigating an employee can be relevant to pretext. There is a “‘convincing mosaic’ of circumstantial evidence,” which, taken as a whole and viewed in a light favorable to Canada’s case, could convince a reasonable jury that Canada was the victim of unlawful retaliation. There is also evidence that Grossi treated other employees more favorably. View "Canada v. Samuel Grossi & Sons, Inc." on Justia Law

Freza, a citizen of the Dominican Republic, became a lawful permanent U.S. resident in 2004. In 2012, he was convicted of robbery, aggravated assault with a firearm, burglary, and possession of a weapon for an unlawful purpose. While Freza was serving his ten-year sentence, removal proceedings were initiated against him under 8 U.S.C. 1227(a)(2)(A)(iii). Freza told the IJ that he had attempted to contact pro bono legal organizations, but none could take his case; he had no resources. At Freza’s second master calendar hearing in February 2020, the IJ proceeded with Freza pro se. On March 18, Freza applied for asylum, withholding of removal, and relief under the Convention Against Torture. Due to staffing shortages during the pandemic, Freza’s third hearing occurred in October 2020, with Freza appearing pro se via video. The merits hearing was set for December and later rescheduled for January 2021. A pro bono attorney first spoke to Freza the day before the hearing.The IJ denied her motion to continue the hearing for 30 days, stating that Freza had been aware of his merits hearing “for quite some time.” The merits hearing continued with Freza proceeding pro se and testifying about his experiences of and fears of future violence. The BIA affirmed the removal order. The Third Circuit vacated. The IJ’s denial of a continuance for Freza’s counsel to prepare to adequately represent him violated Freza’s right to counsel. View "Freza v. Attorney General United States" on Justia Law

In 2007, Sovereign extended a $15 million line of credit to REMI to fund residential mortgage loans. Kaiser guaranteed REMI’s obligations. Sovereign and Kaiser agreed that any judgment entered against Kaiser would bear interest at the Prime Rate plus six percent per annum, not at the statutory rate of interest after judgment. REMI defaulted. Sovereign sued REMI and Kaiser. The parties resolved the case by agreement, which the district court entered as a $1,560,430.24 consent judgment in 2010. The Judgment was silent about any applicable interest rate.In 2017, Kaiser moved to declare that judgment had been satisfied. The district court denied the motion, ordering that the applicable interest rate is the federal statutory post-judgment interest rate, fixed by the Federal Reserve Bank, at 0.26%; and that REMI may serve discovery to determine the status of payments made toward the Consent Judgment. The court reasoned that no clear, unambiguous, and unequivocal language in the Consent Judgment demonstrated an intent to depart from the rate of interest provided by 28 U.S.C. 1961. The Third Circuit affirmed. It is incumbent on the parties to detail, with precision and with clarity, the bargain they have struck. The failure to do so in a consent judgment precludes a district court from enforcing an otherwise-silent provision one party asks it to enforce. View "Sovereign Bank v. Remi Capital Inc." on Justia Law

In 2005, Bentley robbed a liquor store at gunpoint and was caught after a car chase. He confessed and was indicted for being a felon in possession of a firearm, 18 U.S.C. 922(g)(1), Hobbs Act robbery, and using and carrying a firearm during a crime of violence, section 924(c)(1)(A)(ii). The felon-in-possession-of-a-firearm charge carried a sentence of not more than 10 years but under the Armed Career Criminal Act (ACCA) a person convicted of that crime who has three or more prior convictions “for a violent felony or a serious drug offense,” is subject to a mandatory sentence of “not less than fifteen years,” section 924(e)(1). Bentley pled guilty to being a felon in possession of a firearm and using and carrying a firearm during a crime of violence and admitted he was subject to ACCA’s sentencing enhancement. The agreement listed prior convictions: first-degree reckless endangering (Delaware, 1991) and robbery and use of a firearm (Virginia 1988 and 1989). Bentley was sentenced to 22 years’ imprisonment.After the Supreme Court’s 2015 “Johnson” holding that ACCA’s “residual clause,” was unconstitutionally vague, Bently sought resentencing, arguing that the prior convictions mentioned in his plea no longer counted as strikes under ACCA. The Third Circuit affirmed the denial of relief. The undisputed PSR documented six North Carolina convictions for breaking and entering as ACCA predicates. Any Johnson error would be harmless. View "United States v. Bentley" on Justia Law

Uronis’ former co-worker, Messenger, filed a putative Fair Labor Standards Act (FLSA) collective action against Cabot and another company on behalf of himself and other employees similarly situated, alleging that the companies jointly employed the employees and failed to pay them required overtime pay. Uronis, as a similarly situated employee who had yet to file a consent to join the collective action, was a putative member of the Messenger action. Uronis applied for a position with Cabot’s subsidiary, GDS. Cabot and GDS were aware Uronis was a putative member of, and anticipated witness in, the Messenger action, and that he was about to file his consent to join. A GDS manager sent Uronis a text message stating that although Uronis was qualified for the position he applied for, Cabot declined to hire him or any other putative members of the Messenger action “because of” that lawsuit.The FLSA prohibits discrimination against an employee because the employee has engaged in protected activity 29 U.S.C. 215(a)(3), including having “testified” or being “about to testify” in any FLSA-related proceeding. The district court dismissed Uronis’ suit, reasoning that being “about to testify” requires being “scheduled” or subpoenaed to do so. The Third Circuit reversed. The FLSA “about to testify” language protects employees from discrimination because of an employer’s anticipation that the employee will soon file a consent to join a collective action. View "Uronis v. Cabot Oil & Gas Corp." on Justia Law

In the 1990s, Aldossari’s company, Trans Gulf, entered into an agreement in Saudi Arabia with three other businesses to establish and operate an oil refinery in Saint Lucia, a Caribbean island nation. Crude oil was to be sourced from the Saudi government or its national oil company, Saudi Aramco. The project went forward, but, Aldossari alleged, the owners of the three contract counterparties – one of whom became the Crown Prince of Saudi Arabia –refused to pay Trans Gulf its share of the proceeds. Two decades later, the soon-to-be Crown Prince promised to pay Aldossari but never did. Aldossari, transferred his rights to his minor son, a U.S. citizen.The federal district court dismissed Aldossari’s subsequent tort and contract claims. The Third Circuit affirmed, holding that dismissal of the claims against a deceased defendant was proper because Aldossari failed to allege any basis for exercising subject-matter jurisdiction over those claims. As for the surviving defendants, the lack of any meaningful ties between those defendants and the United States in Aldossari’s claims defeats his effort to sue them in the U.S. The Foreign Sovereign Immunities Act precludes subject-matter jurisdiction over the claims against Saudi Arabia and Saudi Aramco. The case was remanded with directions to dismiss without prejudice since none of the dispositive rulings reach the merits. View "Aldossari v. Ripp" on Justia Law

Xylem, which sells large-capacity water pumps, requested that Field develop hardware to interface with the pumps and computer software for monitoring and controlling the equipment. A 2013 “NonDisclosure Agreement” contained an arbitration provision. Xylem purchased the units from Field via written Purchase Orders and purchased monthly subscriptions that permitted Xylem’s customers to use Field’s software via cellular networks to monitor and control their Xylem pumps. There was no written agreement governing Xylem’s software subscription purchases until the 2017 “Software Subscription Service Agreement,” which contained an “integration clause” stating that “[t]his Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes any and all prior or contemporaneous understandings or agreements.” The 2017 contract contained no arbitration provision, instead requiring any “action under or concerning” that contract to be litigated in New Jersey. Xylem began building its own hardware.Field sued, in New Jersey, for breach of the 2017 contract. In discovery, Xylem sent Field an interrogatory asking whether it intended to rely on the 2013 contract to support any of its claims. Field responded that Xylem breached the 2013 contract by its actions. Xylem then filed an arbitration demand. The district court held that the 2017 agreement superseded the earlier contract, eliminating any duty to arbitrate. The Third Circuit vacated in part. The district court was authorized to determine whether the second agreement superseded the first but the first agreement was not superseded. View "Field Intelligence Inc v. Xylem Dewatering Solutions Inc" on Justia Law

Lopez, a citizen of El Salvador, entered the United States without authorization in 2001. In removal proceedings in 2009, he applied for relief under the Nicaraguan Adjustment and Central American Relief Act (NACARA). While removal proceedings continued, Lopez was charged with possession of marijuana. Following a guilty plea in 2015, DHS added a charge of removability under 8 U.S.C. 1182(a)(2)(A)(i)(II), applicable to aliens who committed a controlled substance offense. That triggered a limiting provision in NACARA (Section 203(b)) that bumps the requirement of continuous presence in the United States from seven to 10 years and restarts the clock from the commission of the controlled substance offense. Lopez cited section 212(h), which gives the Attorney General discretion to grant a waiver of inadmissibility for applicants who meet the eligibility requirements, to excuse that added charge. The Board of Immigration Appeals denied Lopez relief, holding that a 212(h) waiver may not be used with an application for NACARA cancellation of removal.The Third Circuit denied a petition for review. An application for NACARA cancellation of removal is not an application for adjustment of status; the enactment of NACARA did not expand section 212(h). View "Lopez v. Attorney General United States" on Justia Law

A class action claimed that BMW knowingly manufactured and sold vehicles equipped with defective engines and included 20 causes of action, including alleged breach of warranty under the Magnuson-Moss Warranty Act, 15 U.S.C. 2301 (a federal fee-shifting statute), breach of the implied warranty of merchantability, violations of state consumer fraud and deceptive trade practice statutes, and unjust enrichment. The parties reached a settlement to reimburse class members for expenses incurred and provide them with extended warranties. The district court concluded the settlement was worth at least $27 million. BMW stipulated that it would not object to Settlement Class Counsel’s application for an award of attorneys’ fees of up to $1,500,000 in the aggregate. The parties agreed that Counsel could apply for an award of attorneys’ fees not to exceed $3,700,000 in the aggregate. Class counsel sought $3.7 million.Applying the lodestar approach (multiplication of the hours counsel reasonably billed by a reasonable hourly rate) the district court adopted Class Counsel’s requested lodestar amount of $1,934,000, then applied a requested multiplier of 1.9 to reach a total fee award of $3.7 million. The Third Circuit vacated. The lodestar was based on an insufficient record. The charts provided by Counsel do not establish whether certain hours are duplicative or whether the total hours billed were reasonable for the work performed. View "Gelis v. BMW of North America LLC" on Justia Law