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

Relator appealed the district court's dismissal of her qui tam action under the False Claims Act (FCA), 31 U.S.C. 3279-3733, for lack of jurisdiction. Relator alleged that fraudulent invoices were submitted to the federal government under the Emergency Watershed Protection Program (EWP) Program in both Graham and Cherokee Counties. In relator's third amended complaint, she named as defendants Graham County, the Graham County SWCD, and the Cherokee County SWCD, along with several individuals. Although the court found no fault with the district court's factual findings, the district court applied an incorrect legal standard in reaching its conclusion as to public disclosure. Rejecting the Seventh Circuit's view, the court held that a public disclosure requires that there be some act of disclosure outside of the government. In this case, while the Audit Report and the USDA Report at issue were disclosed to government officials charged with policing the type of fraud relator alleges, nothing in the record suggests that either report actually reached the public domain. Therefore, the public disclosure bar was not triggered on this basis. That the reports were disclosed to state and local government agencies as well as federal agencies does not alter the court's conclusion. Further, the existence of public information laws does not go against the court's holding. Accordingly, the district court had jurisdiction over this action and the court reversed. View "U.S. ex rel. Wilson v. Graham Cnty. Soil & Water" on Justia Law

Power Fuels, operator of a facility that receives, blends, stores, and delivers coals for a power plant located across the road, petitioned for review of the Commission's final order, challenging the Secretary's assignment of jurisdiction to the MSHA, rather than to the nonspecialized OSHA. The court held that the Secretary permissibly concluded that a facility that blends coal for a nearby power plant was subject to the Federal Mine Safety and Health Act of 1977, 30 U.S.C. 802(h)(1)(C), (i). Therefore, the MSHA's assertion of jurisdiction was proper because the Mine Act covers this kind of activity. Accordingly, the court denied the petition for review. View "Power Fuels, LLC v. Federal Mine Safety & Health" on Justia Law

Plaintiffs, a radio manufacturing and repair business and two of its managers, filed suit challenging the constitutionality of the City's sign ordinance. The ordinance, which governs the placement and display of signs, was enacted by the city to enhance and protect the physical appearance of all areas of the city and to reduce the distractions, obstructions, and hazards to pedestrian and auto traffic. Plaintiffs' challenges to the ordinance relate to a protest of a certain adverse action taken against Central Radio by the Norfolk Redevelopment and Housing Authority. The court affirmed the district court's judgment, agreeing that the sign ordinance is a content-neutral restriction on speech that satisfies intermediate scrutiny. The court found no merit in plaintiffs' remaining constitutional challenges. View "Central Radio Co. Inc. v. City of Norfolk" on Justia Law

AGI filed suit against the City, raising claims arising out of an agreement between the City and Profile Aviation. The district court denied the City's motion to dismiss for lack of jurisdiction, holding that, under North Carolina law, governmental immunity from equitable claims is waived when a county or municipality acts in a proprietary, rather than governmental, capacity. Because (1) North Carolina precedent suggests that the Supreme Court of North Carolina would rule that immunity from equitable claims may be waived pursuant to the proprietary function theory and (2) the rationale behind the theory, as articulated by both the United States Supreme Court and the Supreme Court of North Carolina, is consistent with the waiver of immunity for equitable claims, the court held that the district court did not err in its application of North Carolina state law. Accordingly, the court affirmed the judgment. View "AGI Assoc. v. City of Hickory, NC" on Justia Law

Plaintiffs, South Carolina public employees, filed suit challenging the constitutionality of the South Carolina State Retirement System Preservation and Investment Reform Act, 2005 S.C. Acts 1697. The Act amended South Carolina's retirement laws by requiring public employees who retire and then return to work to make, beginning on July 1, 2005, the same contributions to state-created pension plans as pre-retirement employees but without receiving further pension benefits. The court rejected plaintiffs' argument that their claims under the Takings Clause of the Fifth Amendment are exempt from the protection of the Eleventh Amendment. The court agreed with the district court that the pension plans and the Trust are arms of the State and have sovereign immunity; the state officials sued in their official capacities for repayment of pension-plan contributions have sovereign immunity; and the state officials sued in their official capacities for prospective injunctive relief have sovereign immunity because their duties bear no relation to the collection of the public employees' contributions to the pension plans, excluding application of Ex parte Young. Accordingly, the court affirmed the judgment. View "Hutto v. SC Retirement System" on Justia Law

Plaintiffs, parents of nine-year-old E.L., who has autism, initiated an administrative complaint against the school board under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400 et seq. An ALJ determined that the school board violated the IDEA by failing to provide E.L. with required speech therapy but, in all other respects, she was provided an appropriate special education program. The school board appealed and the state review officer reversed the ALJ's conclusion regarding the speech therapy. Plaintiffs then filed a civil action seeking judicial review of the administrative proceedings. The court concluded that E.L. did not exhaust her administrative remedies and that the school board did not violate the IDEA where the review officer's conclusion that E.L. received the speech therapy mandated by her individualized education program is supported by the evidence. Accordingly, the court affirmed the judgment. View "E. L. v. Chapel Hill-Carrboro Board of Education" on Justia Law

Plaintiffs filed suit challenging a Maryland program subsidizing the participation of a new power plant in the federal wholesale energy market. Maryland's plan was ultimately formalized in the Generation Order. The district court agreed with plaintiffs' contention that the Maryland scheme was preempted under the Federal Power Act's (FPA), 16 U.S.C. 824(b)(1), authorizing provisions, which grant exclusive authority over interstate rates to FERC. The court concluded that the Generation Order is field preempted because it seeks to regulate a field that the FPA has occupied. The court also concluded that the Generation Order is conflict preempted because it conflicts with the auction rates approved by FERC and conflicts with PJM's new entry price adjustment (NEPA). Accordingly, the court held that the Generation Order was preempted under federal law and affirmed the judgment of the district court.View "PPL EnergyPlus, LLC v. Nazarian" on Justia Law

Lavabit, a company that provided encrypted email service, and Ladar Levison, the company's sole and managing member, appealed the district court's order of contempt and imposition of monetary sanctions because Lavabit and Levison failed to comply with the Government's court orders under both the Pen/Trap Statute, 18 U.S.C. 3123-27, and the Stored Communications Act, 18 U.S.C. 2701-12, requiring Lavabit to turn over particular information related to a target in a criminal investigation. The court concluded that the district court did not err in finding Lavabit and Levison in contempt once they admittedly violated the order. In view of Lavabit's waiver of its appellate arguments by failing to raise them in the district court, and its failure to raise the issue of fundamental or plain error review, there was no cognizable basis upon which to challenge the order. Accordingly, the court affirmed the judgment of the district court.View "United States v. Lavabit, LLC, et al." on Justia Law

Plaintiffs, active and retired Baltimore police officers and firefighters who participate in a public pension plan, challenged the City's decision changing the manner in which annual increases to pension benefits are calculated. Plaintiffs claimed that the substitution of a cost-of-living adjustment for a "variable benefit" violates the members' rights under the Contract Clause and the Takings Clause. The court concluded that the members' rights under the Contract Clause were not impaired because the members retained a state law remedy for breach of contract. Accordingly, the court vacated the district court's judgment with respect to the City's elimination of the variable benefit. The court affirmed the district court's decision upholding the remaining portions of the ordinance at issue, and vacated the district court's order dismissing the Takings Clause claim. The court remanded for further proceedings. View "Cherry, Jr. v. Mayor and City Council of Baltimore City" on Justia Law

Plaintiffs filed suit challenging Virginia Code sections 20-45.2 and 20-45.3; the Marshall/Newman Amendment, Va. Const. art. I, 15-A; and any other Virginia law that bars same sex-marriage or prohibits the State's recognition of otherwise-lawful same-sex marriages from other jurisdictions (collectively, the Virginia Marriage Laws). Plaintiffs argued that these laws violate the Due Process and Equal Protection Clauses of the Fourteenth Amendment. The district court granted plaintiffs' motion for summary judgment and enjoined Virginia from enforcing the laws. As a preliminary matter, the court concluded that each of the plaintiffs had standing as to at least one defendant, and the court declined to view Baker v. Nelson as binding precedent. The court concluded that strict scrutiny analysis applied in this case where the Virginia Marriage Laws impede the right to marry by preventing same-sex couples from marrying and nullifying the legal import of their out-of-state marriages. Proponents contend that five interests support the laws: federalism-based interests, history and tradition, protecting the institution of marriage, encouraging responsible procreation, and promoting the optimal childrearing environment. The court concluded, however, that these interests are not compelling interests that justify the Virginia Marriage Laws. Therefore, all of the proponents' justifications for the laws fail and the laws cannot survive strict scrutiny. Accordingly, the court concluded that the Virginia Marriage Laws violate the Due Process and Equal Protection Clauses of the Fourteenth Amendment to the extent that they prevent same-sex couples from marrying and prohibit Virginia from recognizing same-sex couples' lawful out-of-state marriages. The court affirmed the judgment of the district court. View "Bostic v. Schaefer" on Justia Law