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

Scripps was convicted of wire fraud for transferring millions of dollars from the bank accounts of his mother and autistic uncle—heirs to the family’s publishing fortune—into his own account. During sentencing arguments, the court repeatedly indicated that Scripps could address the court without personally asking Scripps if he wished to speak. The court asked defense counsel (Dezsi) whether Scripps wished to address the court. Dezsi stated that Scripps did not. The judge later concluded that “[t]here’s nothing in this record from which I could fairly conclude there’s any remorse” and sentenced Scripps to 108 months’ imprisonment, the maximum period of incarceration within the Guidelines range. On appeal, with Scripps represented by Dezsi, the Third Circuit affirmed. Scripps filed an unsuccessful 28 U.S.C 2255 motion, claiming ineffective assistance of counsel, including by failing to argue that the judge erred by not personally inviting Scripps to speak during sentencing. Federal Rule of Criminal Procedure 32(i)(4)(A)(ii) requires a sentencing judge to “address the defendant personally in order to permit the defendant to speak or present any information to mitigate the sentence.”The Third Circuit reversed. The district court abused its discretion in failing to conduct an evidentiary hearing. It is possible that appellate counsel’s failure to raise Rule 32 error “fell below an objective standard of reasonableness.” The Supreme Court has held that a Rule 32 query, directed towards counsel, does not satisfy the requirement that the court personally address the defendant. View "United States v. Scripps" on Justia Law

New Jersey and New York agreed more than 50 years ago to enter into the Waterfront Commission Compact. Congress consented to the formation of the Waterfront Commission Compact, under the Compacts Clause in Article I, section 10, of the U.S. Constitution, 67 Stat. 541. In 2018, New Jersey enacted legislation to withdraw from the Compact. To prevent this unilateral termination, the Waterfront Commission sued the Governor of New Jersey in federal court. The district court ruled in favor of the Commission.The Third Circuit vacated. The district court had federal-question jurisdiction over this dispute because the Complaint invoked the Supremacy Clause and the Compact (28 U.S.C. 1331) but that jurisdiction does not extend to any claim barred by state sovereign immunity. Because New Jersey is the real, substantial party in interest, its immunity should have barred the exercise of subject-matter jurisdiction. View "Waterfront Commission of New York Harbor v. Governor of New Jersey" on Justia Law

New York City Officer Pickel was patrolling an area known for violent crime, when a man flagged him down, pointing to the only pedestrian on a bridge (later identified as Torres). The man stated that Torres fired a gun into an old factory across the street. Pickel radioed for backup and followed Torres in his car, believing that Torres posed a potential danger to others and that any delay would make it difficult to locate Torres. As other officers arrived, Pickel activated his emergency lights, exited his patrol car, drew his service pistol, and ordered Torres to “get to the ground.” Torres complied. Officer Hatterer knelt and asked Torres if he had a firearm. According to Hatterer, Torres indicated that it was in his right pocket. Hatterer handcuffed Torres; another officer retrieved the firearm.The district court denied a motion to suppress, reasoning that the gun was found during a constitutional “Terry” investigatory stop rather than during an arrest and that Pickel had reasonable suspicion. Convicted under 18 U.S.C. 922(g)(1) for possessing a firearm as a convicted felon, Terry received the mandatory-minimum sentence, 180 months’ imprisonment, based on enhanced sentencing under 18 U.S.C. 924(e), the Armed Career Criminal Act. Although Torres' prior state drug possession offenses were part of a federal drug distribution conspiracy conviction, the conspiracy conviction counted as a separate predicate offense. The Third Circuit affirmed. A drug conspiracy conviction counts as an ACCA predicate offense, if it was distinct in time from the underlying substantive offenses. View "United States v. Torres" on Justia Law

In 2005, revelations surfaced that Body Armor—a publicly-traded company—was manufacturing its body armor, which it sold to law enforcement agencies and the U.S. military, using substandard materials. Its stock price plummeted, prompting shareholders to bring numerous actions that were consolidated into a shareholders’ class action and a derivative action on behalf of Body Armor against specified officers and directors. Since then, the matter has traveled, through bankruptcy, trial, and appellate courts throughout three U.S. jurisdictions. In its second review of the case, the Third Circuit affirmed a 2015 Bankruptcy Court for the District of Delaware order, approving a settlement entered in the Chapter 11 bankruptcy case of S.S. Body Armor I. The court reversed in part the Bankruptcy Court’s order that granted the objector fees on a contingent basis and remanded for a determination of the appropriate amount of the fee award. The court affirmed the part of that order that denied the objector’s claim to attorneys’ fees and expenses under the Bankruptcy Code and an order awarding fees to counsel in one of the underlying lawsuits. View "In re: SS Body Armor I Inc." on Justia Law

Doe, a student at USciences, a private Philadelphia college, had completed nearly all the coursework required to earn a degree in biomedical science when two female students accused him of violating USciences’s Sexual Misconduct Policy. After investigating, USciences concluded that Doe violated the Policy and expelled him. Doe filed suit, alleging that USciences was improperly motivated by sex when it investigated and enforced the Policy against him. Doe also asserted that USciences breached its contract with him by failing to provide him the fairness promised to students under the Policy. The district court dismissed Doe’s complaint. The Third Circuit reversed. Doe’s complaint contains plausible allegations that USciences, in its implementation and enforcement of the Policy, succumbed to pressure from the U.S. Department of Education and has “instituted solutions to sexual violence against women that abrogate the civil rights of men and treat men differently than women.” Doe claimed the school investigated him but chose not to investigate three female students who allegedly violated the Policy with respect to alcohol consumption and sex. The court analyzed the Policy’s promise of “fairness,” an undefined term, by examining federal guarantees and state case law. View "Doe v. University of the Sciences" on Justia Law

Pennsylvania Trooper Ramirez stopped a car for speeding after running the license plate and learning the car was owned by Enterprise. It lacked typical rental stickers. Each vent had an air freshener clipped to it. The driver, Fruit, gave Ramirez his license and rental car agreement, identifying his passenger, Garner. The rental agreement listed Fruit as the authorized driver but limited to New York and appeared to have expired 20 days earlier. Ramirez questioned Garner; 12 minutes into the stop, Ramirez put their information into his computer and learned that neither man had outstanding warrants, although Fruit was on supervised release. Both had extensive criminal records, including drug and weapons crimes. Enterprise confirmed that Fruit had extended the rental beyond the listed expiration date. Ramirez resolved to ask permission to search the vehicle but waited for backup, which arrived 37 minutes into the stop. Fruit declined permission to search. Ramirez stated that he was calling for a K-9 and Fruit was not free to leave. "Zigi" arrived 56 minutes into the stop, alerted at the car, then entered the vehicle and alerted in the back seat and trunk. A search revealed 300 grams of cocaine and 261 grams of heroin.Both men were indicted for conspiracy to possess (and possession) with intent to distribute heroin and cocaine. The district court denied their motion to suppress, ruling that Ramirez had “an escalating degree of reasonable suspicion” that justified extending the stop. In a consolidated appeal, the Third Circuit affirmed. Ramirez had reasonable suspicion to extend the stop based on information he obtained during the first few minutes of the traffic stop before he engaged in an unrelated investigation; no unlawful extension of the stop occurred. View "United States v. Fruit" on Justia Law

Section 1513 of the Pennsylvania Race Horse Development and Gaming Act prevents the plaintiffs from making political contributions because they hold interests in businesses that have gaming licenses. They sued, claiming First Amendment and Equal Protection violations. The district court concluded that Section 1513 furthers a substantially important state interest in preventing quid pro quo corruption but ruled that the restriction is unconstitutional because the Commonwealth did not draw it closely enough. The court permanently enjoined the enforcement of Section 1513.The Third Circuit affirmed. Limitations on campaign expenditures are subject to strict scrutiny. The government must prove that the regulations promote a “compelling interest” and are the “least restrictive means to further the articulated interest.” Even applying an intermediate threshold, examining whether the statute is “closely drawn,” the Commonwealth does not meet its burden. The overwhelming majority of states with commercial, non-tribal casino gambling like Pennsylvania do not have any political contribution restrictions that apply specifically to gaming industry-related parties. The Commonwealth’s implicit appeal to “common sense” as a surrogate for evidence in support of its far-reaching regulatory scheme is noteworthy in light of the approach taken by most other similarly situated states. View "Deon v. Barasch" on Justia Law

Eshleman started working as a Patrick truck driver in 2013. In 2015, Eshleman took medical leave to undergo surgery to remove a nodule from his lung. After two months of medical leave, Eshleman returned to work without restrictions. Six weeks later, Eshleman suffered a severe respiratory infection from January 27-31, 2016 (spanning a weekend). His supervisor approved two vacation days. With his physician’s approval, Eshleman returned to work in his full capacity on February 1. At the end of his second day back, Patrick fired him. The Superintendent cited “performance issues.” Eshleman reminded the Superintendent that his performance review from January 2016 had been excellent. Thereafter, the Superintendent claimed that Eshleman was fired because he had not called out sick during his leave for the respiratory infection. Later, Eshleman learned that the reason for termination had been changed again; Patrick was claiming he had been fired for “behavioral issues.”Eshleman sued, alleging that he was fired because he was regarded as disabled, in violation of the Americans with Disabilities Act and that the shifting reasons for his termination were a pretext for illegal disability discrimination. The district court dismissed, holding that the ADA did not cover Eshleman’s “regarded as” claim because his impairment lasted less than six months and was “transitory and minor.” The Third Circuit reversed. The district court did not conduct an independent analysis into whether Eshleman’s impairment was minor, apart from whether it was transitory. View "Eshleman v. Patrick Industries Inc" on Justia Law

Founding USM to acquire FCC licenses, Elkin contributed $750,000 and Norman $250,000. Norman acquired the licenses; his day-to-day involvement ended. In 1998, the FCC announced another auction. USM won several licenses, which Elkin transferred to TEG, another company that he owned; purportedly USM did not have sufficient funds. Elkin did not respond to Norman's inquiries. Some FCC notices listed USM as the winning bidder; others referred to TEG as the licenses' owner. Before 2002, without notifying Norman, Elkin caused USM to enter into a Shareholder Loan Agreement (SLA) to treat any amount Elkin contributed above his capital requirement as a loan. Elkin lent USM more than $600,000. In 2000-2001, USM sold licenses. Norman received federal income tax forms that declared USM had realized a capital gain. In 2000-2002, USM paid Elkin $615,026 from the sales proceeds. Norman received nothing. In 2002. Elkin admitted that licenses had been sold and that he had taken a distribution. Norman's 2004 Delaware "books and records" action was resolved in his favor in 2005. Norman sued, raising various tort and contract claims After two trials and a remand, the district court concluded that the limitations period for each of Norman’s claims was tolled during the Delaware Action and that Norman’s claim based on 2002 distributions was timely. Oer Third Circuit mandate, the court ruled in Normans' favor with respect to the execution of the SLA. For Norman’s other claims, including those based on 2001 distributions, the court held that Norman had at least inquiry notice beyond the limitations period. Elkin then argued that Norman was not entitled to tolling relating to the Delaware Action because he brought that suit in bad faith. The district court refused to consider new evidence. The Third Circuit affirmed, except with respect to Norman’s claim based on 2001 events. View "Norman v. Elkin" on Justia Law

Portanova admitted to downloading child pornography onto his cell phone, on which investigators found 63 videos depicting minors engaged in sexually explicit conduct. Portanova subsequently pleaded guilty to receipt of child pornography, 18 U.S.C. 2252(a)(2) and (b)(1), which carries a 15-year mandatory minimum sentence if that person “has a prior conviction . . . under the laws of any State relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor or ward” or “relating to . . . the production, possession, receipt, mailing, sale, distribution, shipment, or transportation of child pornography.” Portanova had previously been convicted of possessing and distributing child pornography under Pennsylvania law. The court concluded that his state conviction triggered section 2252(b)(1)'s mandatory minimum enhancement. The Third Circuit affirmed, agreeing that his conviction triggered the mandatory minimum provision. Under the Third Circuit’s “looser categorical approach,” section 2252(b)(1)’s “relating to” language does not require an exact match between the state and federal elements of conviction, and that provision is not unconstitutionally vague. View "United States v. Portanova" on Justia Law