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

This bankruptcy appeal involves a primary insurer’s attempts to block its insureds’ Chapter 11 reorganization plan (the “Plan”), which establishes a trust under 11 U.S.C. Section 524(g) for current and future asbestos personal-injury liabilities. In adopting the bankruptcy court’s recommendation to confirm the Plan, the district court concluded in relevant part that the primary insurer was not a “party in interest” under 11 U.S.C. Section 1109(b) and thus lacked standing to object to the Plan.   The Fourth Circuit affirmed, but on both Section 1109(b) grounds and Article III grounds. The court explained that as an insurer, Plaintiff fails to show that the Plan impairs its contractual rights or otherwise expands its potential liability under the subject insurance policies, so it is not a party in interest under Section 1109(b) with standing to challenge the Plan in that capacity. Similarly, as a creditor, Plaintiff objects to parts of the Plan that implicate only the rights of third parties, which fails to allege an injury in fact sufficient to confer Article III standing. Accordingly, none of Plaintiff’s objections to the Plan can survive. View "Truck Insurance Exchange v. Kaiser Gypsum Company, Inc." on Justia Law

At issue is whether the Commonwealth of Virginia would recognize a divorce granted by a foreign nation to its own citizens when neither spouse was domiciled in that nation at the time of the divorce. The question arises from Petitioner’s marriage to a woman after the woman and another man — both Ghanaian citizens — divorced pursuant to Ghanaian customary law. At the time of the divorce, the woman and man were lawful permanent residents of the United States, and neither was present or domiciled in Ghana. Based on his marriage to the woman, Petitioner became a lawful permanent resident of the United States. But when Petitioner applied to become a naturalized citizen, United States Citizenship and Immigration Services (USCIS) determined that he and the woman were not validly married. USCIS reasoned that under controlling Virginia law, the Commonwealth would not recognize a divorce granted by a nation where neither spouse was domiciled at the time of the divorce. Petitioner sought a review of the decision in the district court, which granted summary judgment to USCIS. Petitioner then brought this appeal.   The Fourth Circuit reversed and remanded with instructions to grant Petitioner’s naturalization application. The court concluded as a matter of comity, Virginia would recognize this otherwise valid divorce granted by a foreign nation to its own citizens, regardless of the citizens’ domicile at the time. The court explained it rejected only USCIS’s argument that pursuant to present Virginia law, the Commonwealth would refuse to recognize a divorce granted by a foreign nation to its own citizens simply because neither was domiciled in the foreign nation at the time of the divorce. View "Michael Adjei v. Alejandro Mayorkas" on Justia Law

Plaintiff claimed Atlas Box and Crating Company, fired him because of his race. Allen filed charges with the Equal Employment Opportunity Commission against Atlas and the staffing agency, and concedes he received right-to-sue letters by August 8, 2018. Plaintiff, acting pro se, delivered four documents to the clerk of the district court. The applications were stamped “filed” and entered as filed motions on the district court’s electronic docket. On November 8, 2018—92 days after Plaintiff received the right-to-sue letters—a magistrate judge recommended denying the motions for relief from the filing fee. Four days after Plaintiff paid the filing fee and 131 days after he received the right-to-sue letters—the district court directed the clerk to file Plaintiff’s complaint. Eight months later, the district court granted summary judgment for Defendants on the ground that Plaintiff’s action was time-barred. The district court concluded Plaintiff was not entitled to equitable tolling.   The Fourth Circuit vacated the district court’s judgment. The court held that Plaintiff commenced this action within the statutory period by timely delivering a complaint to the district court clerk. Because he did so, no consideration of equitable tolling is necessary. The court held that an action under federal law is commenced for limitations purposes when a plaintiff delivers a complaint to the district court clerk—regardless of whether the plaintiff pays the filing fee, neglects to do so, or asks to be excused from the fee requirement. View "Andrew Allen v. Atlas Box and Crating Co., Inc." on Justia Law

Plaintiff Alive Church of the Nazarene, Inc. (the “Church”) purchased 17 acres of land — zoned primarily for agricultural use — on which the Church sought to conduct religious assemblies. After Defendant Prince William County, Virginia (the “County”), denied the Church’s request to worship on its property before the Church complied with the zoning requirements, the Church initiated a lawsuit in district court. By its Complaint, the Church has alleged six claims against the County — three claims under the Religious Land Use and Institutionalized Persons Act (“RLUIPA”), and three federal constitutional claims. For reasons explained in its Memorandum Opinion of November 2021, the district court dismissed those claims pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted.   The Fourth Circuit affirmed. The court explained that allowing religious institutions to conduct worship services does not further the purpose of the Agricultural Zoning Ordinance — that is, to promote farming. Specific to the Church, allowing services would not increase its ability to continue farming its land. Accordingly, the court wrote it cannot agree with the Church that it is similarly situated to farm wineries and limited-license breweries with regard to the Ordinance. The Church has failed to meet its initial burden of proof by providing a similarly situated comparator with which it has been treated unequally, and has thereby failed to state an RLUIPA equal terms claim. View "Alive Church of the Nazarene, Inc. v. Prince William County, Virginia" on Justia Law

In a class-action proceeding related to a lending scheme allegedly designed to circumvent state usury laws, Defendant appealed from three district court rulings that (1) reconsidered prior factual findings based on a new finding that Defendant made misrepresentations that substantially impacted the litigation, (2) found that Plaintiffs—Virginia citizens who took out loans (the “Borrowers”)—did not waive their right to participate in a class-action suit against him, and (3) granted class certification. Defendant argued that the district court violated the mandate rule by making factual findings related to the misrepresentations that contradicted the Fourth Circuit’s holding in the prior appeal and then relying on those factual findings when granting class certification. He also contends that the Borrowers entered into enforceable loan agreements with lending entities in which they waived their right to bring class claims against him. In addition, he asserts that common issues do not predominate so as to permit class treatment in this case.   The Fourth Circuit affirmed. The court concluded that the district court did not violate the mandate rule and that the Borrowers did not waive the right to pursue the resolution of their dispute against him in a class-action proceeding. Finally, the court concluded that the district court did not abuse its discretion in granting class certification because common issues predominate. View "Lula Williams v. Matt Martorello" on Justia Law

Plaintiff appealed the district court’s post-trial dismissal of his case for lack of subject-matter jurisdiction. A jury found that AXA Equitable Life Insurance Company negligently reported false medical information about Plaintiff to an information clearinghouse used by insurance companies, causing him to become uninsurable. Despite the fact that the parties satisfied the requirements for federal diversity jurisdiction, and the fact that both parties litigated the entire case through trial under North Carolina law, the district court decided that Connecticut law applied and found itself deprived of subject-matter jurisdiction by virtue of a Connecticut statute.   The Fourth Circuit found that the district court erred and concluded that choice of law is waivable and was waived here. And even if Connecticut’s law applied, it would not have ousted federal jurisdiction. Further, the court held that the district court also erred by concluding that Connecticut’s CIIPPA divested it of subject-matter jurisdiction despite that statute affecting only choice of law rather than choice of forum. AXA’s alternative argument for affirmance based on the nature of Plaintiff’s s injury and its causation was thoroughly briefed and argued before the court, and the court found it to be without merit. But because AXA’s argument for post-trial relief challenging the number of damages was neither raised nor briefed before this court, the court remanded to the district court to consider that issue in the first instance. View "Malcolm Wiener v. AXA Equitable Life Insurance Company" on Justia Law

Defendant s filed a Federal Rule of Civil Procedure 60(b)(3) motion for relief from the district court’s denial of his 28 U.S.C. Section 2255 motion to vacate his conviction. The district court denied the Rule 60(b)(3) motion and Defendant appealed. He argued that the district court erred in finding that his Rule 60(b)(3) motion, filed three and a half years after the district court’s Section 2255 order, was not entitled to equitable tolling.   The Fourth Circuit affirmed, concluding that Rule 60(b)(3)’s one-year time limit cannot be equitably tolled. The court explained that it recognizes the gravity of the stakes in habeas proceedings. Yet the court does not believe that equitable tolling can apply to motions brought under Rule 60(b)(3). And because Defendant filed his motion more than three and a half years after the applicable district court order, the district court correctly held that his motion was untimely filed. View "US v. Roderick Williams" on Justia Law

Plaintiffs brought suit against Weinstein Management Co., Inc., and WMCI Charlotte XIII, LLC (collectively, Defendants). In relevant part, Plaintiffs alleged that Defendants violated the North Carolina Residential Rental Agreements Act (RRAA), and the North Carolina Debt Collection Act (NCDCA), by charging them out-of-pocket costs for summary ejectment proceedings, including filing fees, service fees, and attorney’s fees (collectively, out-of-pocket expenses). The district court granted Defendants’ motion for judgment on the pleadings on these claims, and Plaintiffs appealed. At issue on appeal is whether he 2021 amendment applies retroactively without violating vested rights, thereby extinguishing Plaintiffs’ RRAA and NCDCA claims.   The Fourth Circuit affirmed. The court explained that here, the 2021 amendment’s text provides that it “is effective when it becomes law and is intended to apply retroactively to all pending controversies as of that date.” The court wrote that given this explicit language from the General Assembly, the intent of the legislature to apply the 2021 amendment retroactively could not be clearer. The North Carolina Supreme Court has repeatedly held that the General Assembly cannot retroactively invalidate common-law rights, which Plaintiffs do not seek to vindicate here. Therefore, the district court was not precluded from applying the 2021 amendment retroactively. View "Tiffany Bass v. Weinstein Management Co., Inc." on Justia Law

Plaintiff a deaf man, sought an interpreter to communicate with Novant Health Huntersville Medical Center during his wife’s childbirth there. After Novant Health failed to provide him with a live interpreter or a functioning Video Remote Interpreting device, Plaintiff filed this disability discrimination lawsuit. The district court dismissed his claim.   The Fourth Circuit reversed the district court’s judgment finding that the district court applied an incorrect standard of law. The court held that under the proper standard, Plaintiff has plausibly pled enough under the Rehabilitation Act to survive a Fed. R. Civ. P. 12(b)(6) dismissal motion. The court explained that Patients often arrive at hospitals in pain, unconscious, or feeling intense stress. In these situations, which can be not only confusing but overwhelming, a patient’s companion, often a spouse or a family member, may be the only advocate available. Plaintiff, a hearing-impaired individual, was unable to communicate his wife’s complicated medical history to her doctors during childbirth, despite repeated requests for some effective means of doing so. The situation was a highrisk one for the couple, and the medical event one of the highest urgency and meaning. To have that single advocate barred from communication with a hospital and its staff is to leave the patient stranded. View "Neil Basta v. Novant Health Incorporated" on Justia Law

Plaintiffs, a group of seventeen environmental organizations, sued the Council on Environmental Quality in July 2020 related to the Trump Administration’s promulgation of a final rule that affected how federal agencies would conduct reviews under the National Environmental Policy Act. On appeal the issue is whether the district court had jurisdiction to consider this particular challenge, as Plaintiffs have chosen to frame it, at this stage.   The Fourth Circuit agreed with the district court that it did not have jurisdiction. The court explained that Plaintiffs argue that forcing them to litigate their claims one project at a time will be time- and resource-intensive, for them and for the courts. Certainly, it would be more efficient for the parties and the courts if the court could adjudicate the 2020 Rule in one preemptive fell swoop. But such efficiency concerns cannot generate jurisdiction. They just will need to bring such a challenge under circumstances where they can present evidence sufficient to support federal-court jurisdiction. View "Wild Virginia v. Council on Environmental Quality" on Justia Law