Justia U.S. 4th Circuit Court of Appeals Opinion Summaries

Marilyn Mosby, the former Baltimore City State’s Attorney, was convicted of mortgage fraud and perjury in separate jury trials. She appealed her perjury convictions, arguing that the question on the form she completed to withdraw funds from her retirement account was fundamentally ambiguous. She also contended that the district court improperly admitted evidence regarding her use of the withdrawn funds. For her mortgage fraud conviction, she argued that the district court gave an erroneous venue instruction, the evidence did not support the jury’s finding on venue, and the court improperly allowed cross-examination about her perjury convictions. Additionally, she challenged the district court’s forfeiture order as unauthorized and excessive.The United States District Court for the District of Maryland denied Mosby’s motion to dismiss the perjury counts, finding the term “adverse financial consequences” on the form was not fundamentally ambiguous. The court also allowed evidence of how Mosby used the withdrawn funds, deeming it relevant to whether she experienced adverse financial consequences due to COVID-19. Mosby was convicted on both perjury counts. In her mortgage fraud trial, the court permitted cross-examination about her perjury convictions and gave a jury instruction on venue that Mosby argued was improper. She was convicted of mortgage fraud based on a false gift letter used to purchase a property in Florida.The United States Court of Appeals for the Fourth Circuit affirmed Mosby’s perjury convictions, finding no error in the district court’s rulings. However, the appellate court vacated her mortgage fraud conviction, agreeing that the district court’s jury instruction on venue was erroneous and could have led the jury to base its decision on preparatory acts rather than essential conduct elements. Consequently, the court also vacated the related forfeiture order and remanded the case for further proceedings. View "United States v. Mosby" on Justia Law

Wudi Industrial (Shanghai) Co., Ltd. (Wudi) and Wai L. Wong, along with Wong’s business entity GT Omega Racing, Ltd. (collectively Wong), were involved in a trademark dispute over the use of the "GTRACING" and "GT OMEGA RACING" marks. Wudi registered the "GTRACING" trademark in 2017, and Wong initiated cancellation proceedings, claiming prior use of a similar mark. The Trademark Trial and Appeal Board ruled in favor of Wong in 2020. Wudi sought review in the Eastern District of Virginia, leading to a settlement agreement in 2021, which included geographic and product-based restrictions on Wudi’s use of the "GTRACING" mark, particularly in Europe.The district court granted a stay pending compliance with the settlement agreement. Wong later alleged that Wudi breached the agreement by violating social media restrictions within the European Carve-Out. The district court found Wudi in violation and ordered specific performance. Wudi appealed, and the Fourth Circuit remanded for further proceedings, requiring the district court to comply with procedural requirements for injunctive relief.On remand, the district court issued an injunction, finding that Wudi breached the settlement agreement by using prohibited terms on social media within the European Carve-Out. The court applied the eBay factors, concluding that Wong suffered irreparable harm, monetary damages were inadequate, the balance of hardships favored Wong, and the public interest supported enforcing the agreement.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court’s injunction. The court held that the district court had the authority to enforce the settlement agreement, the eBay factors were properly applied, and Wudi’s contentions regarding extraterritoriality, parol evidence, unclean hands, and attorney’s fees were without merit. The injunction was upheld, requiring Wudi to comply with the settlement agreement’s terms. View "Wudi Industrial (Shanghai) Co., Ltd. v. Wong" on Justia Law

Plaintiffs-Appellants Thomas Sheppheard, Tyler Randall, and Adam Perry, on behalf of minor child J.P., filed a class action lawsuit against the Governor of West Virginia and the Acting Cabinet Secretary of the West Virginia Department of Homeland Security. They sought relief under the Eighth and Fourteenth Amendments, alleging unconstitutional conditions of overcrowding, understaffing, and deferred maintenance in West Virginia's prisons, jails, and juvenile centers. They claimed these conditions amounted to deliberate indifference to their health and safety.The United States District Court for the Southern District of West Virginia dismissed the case for lack of standing. The court found that the plaintiffs failed to establish that their injuries were traceable to the actions of the Governor or the Secretary, or that their injuries would be redressed by a favorable decision. The court noted that the issues were largely due to funding decisions by the West Virginia legislature, which was not a party to the suit. The court also highlighted that the Commissioner of the West Virginia Division of Corrections and Rehabilitation, not the Governor or the Secretary, had the authority to address the conditions in the facilities.The United States Court of Appeals for the Fourth Circuit affirmed the district court's dismissal. The appellate court agreed that the plaintiffs lacked standing because they could not show that their injuries were caused by the Governor's or the Secretary's actions. The court also found that the requested relief, such as appropriations and policy changes, could not be granted by the court as it lacked the power to compel the Governor or the Secretary to take such actions. The court emphasized that the plaintiffs' injuries were not redressable through the requested judicial intervention. View "Sheppheard v. Morrisey" on Justia Law

Sysco Machinery Corporation, a Taiwanese company, accused DCS USA Corporation, a North Carolina company, of business torts related to their manufacturer-distributor relationship. Sysco alleged that after some of its employees left to form a competitor, Cymtek Solutions, Inc., DCS sold machines made by Cymtek using Sysco's confidential information. Sysco claimed these diverted contracts were worth millions of dollars.Sysco first filed suit in Taiwan, where it claims to have won a preliminary injunction against Cymtek. Sysco then filed a suit in the Eastern District of North Carolina, which it voluntarily dismissed, followed by a suit in the District of Massachusetts, which was dismissed. Finally, Sysco returned to the Eastern District of North Carolina, where it brought claims for trade secret misappropriation, copyright infringement, unfair and deceptive trade practices, and tortious interference with prospective economic advantage. The district court dismissed all claims under Rule 12(b)(6) for failure to state a claim and denied Sysco's post-judgment leave to amend its complaint.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court affirmed the district court's dismissal of Sysco's trade secret misappropriation claim, finding that Sysco did not plausibly allege the existence of a valid trade secret or that DCS misappropriated it. The court also affirmed the dismissal of Sysco's other claims, noting that Sysco did not sufficiently develop its arguments for copyright infringement, unfair and deceptive trade practices, and tortious interference with prospective economic advantage. Finally, the court upheld the district court's denial of Sysco's motion to alter or amend the judgment and for leave to amend the complaint, citing Sysco's repeated failure to state a claim and the potential prejudice to DCS. View "Sysco Machinery Corp. v. DCS USA Corp." on Justia Law

Brainchild Surgical Devices, LLC, a medical device developer, entered into a contract with CPA Global Limited for patent renewal services. Brainchild alleged that CPA overcharged it by marking up fees beyond the actual costs and sued for breach of contract and fraud. The district court excluded Brainchild’s expert witnesses, granted summary judgment for CPA on the breach of contract claim, dismissed the fraud claim, and denied leave to amend the fraud claim.The United States District Court for the Eastern District of Virginia dismissed Brainchild’s fraud claim for lack of particularity and denied leave to amend. The court granted summary judgment for CPA on the breach of contract claim, finding that Brainchild’s theories were inconsistent with the contract’s terms. The court excluded Brainchild’s expert witnesses, David Cass and John Keogh, for offering legal conclusions and lacking qualifications.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court affirmed the district court’s exclusion of Cass’ testimony due to lack of qualification and improper legal conclusions. The court also affirmed the exclusion of Keogh’s testimony for failing to disclose the bases of his opinions and offering legal conclusions but reversed the decision to disqualify him based on confidential information. The court agreed with the district court that Brainchild’s pass-through cost and implied covenant of good faith theories failed to overcome summary judgment. However, the court reversed the summary judgment for CPA on the theory that CPA applied Country Charges unrelated to the required personnel, infrastructure, and third parties for renewals in particular jurisdictions. The case was remanded for further proceedings on this theory. The court also affirmed the denial of leave to amend the fraud claim. View "Brainchild Surgical Devices, LLC v. CPA Global Limited" on Justia Law

Shaheem Johnson was involved in a multi-state drug-trafficking enterprise during the 1990s, which led to the deaths of five people. Johnson was directly responsible for the deaths of Bernard Franklin and Richard Villa. He was charged with murder in aid of racketeering and other related offenses. Johnson was convicted by a jury and sentenced to two life terms plus 790 months in prison. His convictions were affirmed on direct appeal.Johnson filed a pro se motion for compassionate release in March 2021, which was supplemented by his counsel. The motion argued that the sentencing disparities between Johnson and his co-conspirators, who received significantly reduced sentences after cooperating with the government, constituted extraordinary and compelling reasons for a sentence reduction. The United States District Court for the Eastern District of Virginia granted Johnson's motion in part, reducing his sentence to 35 years in prison, citing the sentencing disparities as a key factor.The United States Court of Appeals for the Fourth Circuit reviewed the district court's decision. The court held that the district court did not abuse its discretion in finding that the sentencing disparities between Johnson and his co-conspirators, Damein Piranti, Rickey Piranti, and Eldon Brown, weighed in favor of granting compassionate release. The court noted that the district court was entitled to consider these disparities, especially given the jury's findings regarding Johnson's lesser role in the killings. The Fourth Circuit affirmed the district court's order reducing Johnson's sentence. View "United States v. Johnson" on Justia Law

The case involves Justin Michael Wolfe, who was convicted of hiring Owen Barber to murder Daniel Petrole in 2001. Barber, the key witness, initially testified against Wolfe, implicating him in the murder-for-hire scheme. Wolfe was sentenced to death, but Barber later recanted his testimony, claiming he was coerced by the Commonwealth of Virginia with threats of the death penalty. Wolfe's conviction was vacated by the district court due to Brady violations and other prosecutorial misconduct, and the Commonwealth was ordered to retry Wolfe or release him.The United States District Court for the Eastern District of Virginia granted Wolfe habeas relief, finding that the Commonwealth had withheld exculpatory evidence and engaged in misconduct. The Fourth Circuit Court of Appeals affirmed this decision, but the Commonwealth continued to pursue charges against Wolfe. In a subsequent interview, Commonwealth officials again coerced Barber, leading him to invoke his Fifth Amendment rights, making him unavailable as a witness for Wolfe's retrial. Wolfe ultimately pled guilty to avoid the death penalty, receiving a 41-year sentence.Wolfe filed a new habeas petition in the Eastern District of Virginia, asserting claims of vindictive prosecution and due process violations based on the Commonwealth's intimidation of Barber. The district court dismissed the petition as untimely and found that Wolfe failed to present new, reliable evidence of actual innocence under the Schlup standard. Wolfe appealed to the Fourth Circuit Court of Appeals.The Fourth Circuit held that Barber's new declaration, which exculpated Wolfe and explained his previous invocation of the Fifth Amendment due to Commonwealth threats, constituted new, reliable evidence. The court found that Barber's declaration was credible and that no reasonable juror would have convicted Wolfe if they had heard Barber's recantation. The court vacated the district court's judgment and remanded for adjudication of Wolfe's substantive claims. View "Wolfe v. Dotson" on Justia Law

Stephen Simmons pled guilty to violating the National Firearms Act by possessing an unregistered auto sear, a device that converts semi-automatic firearms to fire like machineguns. On the day of his offense, Simmons tested positive for methamphetamine and marijuana. Although he was not prosecuted for any drug-related crime, the district court applied multiple sentencing enhancements, penalizing him for possessing the unregistered auto sear, additional auto sears, silencers, and firearms as an unlawful user of controlled substances. Simmons argued that these enhancements violated his Second Amendment rights and that the term "unlawful user of any controlled substance" was unconstitutionally vague.The United States District Court for the Southern District of West Virginia applied sentencing enhancements that increased Simmons's offense level due to his status as an unlawful user of controlled substances and his possession of multiple and stolen firearms. The court calculated his total offense level as 25, resulting in an advisory Sentencing Guidelines range of 57 to 71 months' imprisonment. After applying a downward variance, the district court sentenced Simmons to 36 months in prison.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court rejected Simmons's Second Amendment challenge, noting that he conceded he had no constitutional right to possess auto sears or silencers, which are not protected by the Second Amendment. The court also dismissed his vagueness claim, as Simmons's conduct clearly fell within the definition of an "unlawful user" of controlled substances. However, the court found that the district court erred in applying sentencing enhancements for possessing ordinary firearms not covered by the National Firearms Act, as these firearms were not relevant to the offense for which Simmons was convicted. Consequently, the Fourth Circuit vacated Simmons's sentence and remanded the case for resentencing. View "US v. Simmons" on Justia Law

Rashun Suncar was convicted of distributing fentanyl and challenged the application of a career offender enhancement to his sentence. This enhancement was based on two prior Pennsylvania state convictions for delivery of a controlled substance. Suncar argued that the Pennsylvania statute criminalizes offers to sell and attempted transfers of drugs, making it broader than the federal guidelines' definition of a controlled substance offense.The United States District Court for the Northern District of West Virginia applied the career offender enhancement, referencing the Third Circuit's decision in United States v. Dawson, which held that the Pennsylvania statute was an appropriate predicate for a career offender finding. The district court imposed a sentence of 92 months, noting that it would impose the same sentence even if the guideline determination was found incorrect.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court rejected Suncar's argument that the Pennsylvania statute includes offers to sell, noting that the statute's language does not support this interpretation. The court also found that the statute's criminalization of attempted transfers does not make it overbroad, as an attempted transfer is considered a completed delivery under federal law and analogous state statutes. The court affirmed the district court's judgment, holding that the Pennsylvania statute is not categorically overbroad compared to the federal guidelines. View "United States v. Suncar" on Justia Law

Demmerick Brown, an inmate at Red Onion State Prison in Virginia, violated the prison’s COVID-19 policy by removing his face mask to get a shave at the barber shop. As a result, the prison fined him fifteen dollars, which was deducted from his prison trust account. Brown claimed that he was not provided the necessary forms to present evidence and call witnesses at his disciplinary hearing, and his request to postpone the hearing was denied. He was found guilty and fined.Brown sued three prison officials under 42 U.S.C. § 1983, alleging a violation of his Fourteenth Amendment due process rights. The United States District Court for the Western District of Virginia dismissed his case, concluding that Brown lacked a property interest in the money in his prison trust account, and thus, the fine did not trigger due process protections.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court vacated the district court’s dismissal, holding that inmates do have a property interest in the money in their prison trust accounts, as established in Henderson v. Harmon. The court found that the fifteen-dollar fine deprived Brown of this property interest, and thus, the Due Process Clause was applicable. The court rejected the argument that the fine was de minimis, noting its significance within the prison context.The Fourth Circuit vacated the district court’s decision and remanded the case for further proceedings to determine what process was due and whether any errors in Brown’s disciplinary proceedings were harmless. View "Brown v. Stapleton" on Justia Law