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

Fessler sued, alleging that his former employer, IBM. unlawfully “capped” his sale commissions despite representing to him that his commissions would be uncapped. The district court dismissed his claims on the basis that the Incentive Plan Letters (IPLs) that IBM presents to its employees foreclosed any reasonable expectation that Fessler would receive additional commissions.The Fourth Circuit vacated, finding that Fessler adequately stated claims for fraud, constructive fraud, unjust enrichment, quantum meruit, and punitive damages. Although the IPLs stated that they did not constitute a promise and IBM reserved the right to adjust the plan’s terms,.Fessler can plausibly allege that he reasonably relied on PowerPoint presentations that repeatedly informed him that his commissions would be uncapped, and his past experience that IBM never capped a commission before 2016. A jury could find that since the representations that his commission would be uncapped were presented subsequent to Fessler receiving IPLs, it was reasonable for Fessler to understand them as adjustments to the plan’s terms. Fessler can plausibly allege the requisite intent to deceive, based on IBM’s motivation to recruit good salespeople who would not work for IBM if they knew that their commissions would be capped. Fessler’s quantum meruit claim is sufficient because of the lack of a meeting of the minds with regard to the exact payment he would receive for his work. View "Fessler v. IBM Corp." on Justia Law

The District of Columbia and the State of Maryland sued the President in his official capacity, alleging violations of the U.S. Constitution’s Foreign and Domestic Emoluments Clauses. The district court dismissed claims concerning Trump Organization operations outside the District, for lack of standing, but denied the President’s motion with respect to alleged violations at the Washington, D.C. Trump International Hotel. After the denial of a motion for certification to take an interlocutory appeal (28 U.S.C. 1292(b)), the President petitioned for mandamus relief. A Fourth Circuit panel reversed and remanded with instructions to dismiss the complaint.The Fourth Circuit, en banc, vacated the panel opinion. The court accorded the President “great deference,” but stated that Congress and the Supreme Court have severely limited its ability to grant the extraordinary relief sought. The President has not established a right to a writ of mandamus. The district court promptly ruled on the request for certification in a detailed opinion that applied the correct legal standards. The court’s action was not arbitrary nor based on passion or prejudice; it “was in its nature a judicial act.” The President does not contend that the court denied certification for nonlegal reasons or in bad faith. Reasonable jurists can disagree in good faith on the merits of the claims. Rejecting a separation of powers argument, the court stated that the President has not explained how requests pertaining to spending at a private restaurant and hotel threaten any Executive Branch prerogative. Even if obeying the law were an official executive duty, such a duty would not be “discretionary,” but a “ministerial” act. View "In re: Donald Trump" on Justia Law

The District of Columbia and the State of Maryland sued the President in his official capacity, alleging violations of the Constitution’s Foreign and Domestic Emoluments Clauses. The district court granted a motion to amend the complaint to add the President as a defendant in his individual capacity. The President, in that capacity, moved to dismiss the action, asserting absolute immunity. Approximately seven months passed without a ruling on that motion. The President in his individual capacity filed an interlocutory appeal. A Fourth Circuit panel concluded that the district court had effectively denied immunity to the President in his individual capacity so that the panel had jurisdiction to consider the interlocutory appeal. “[E]xercising that jurisdiction,” the panel held that Plaintiffs lacked Article III standing and remanded the case with instructions to dismiss.Acting en banc, the Fourth Circuit vacated the panel opinion and dismissed the interlocutory appeal. The district court neither expressly nor implicitly refused to rule on immunity but stated in writing that it intended to rule on the President’s individual capacity motion. A district court has wide discretion to prioritize its docket and the deferral did not result in a delay “beyond reasonable limits.” During the seven months, the district court managed the many other aspects of this litigation and issued opinions on the President’s motion to dismiss in his official capacity and a motion to certify an interlocutory appeal of the court’s rulings. View "District of Columbia v. Trump" on Justia Law

Under the federal tax offset program, the Secretary of the Treasury has the discretion to set-off "any" tax overpayment against a taxpayer's preexisting tax liabilities, and the bankruptcy code provides that exempt property cannot be used to satisfy "any" of the bankruptcy debtor's prepetition debts. At issue was which of these statutory directives controls when a bankruptcy debtor claims, as exempt property, a tax overpayment that the government seeks to set-off under the offset program.The Fourth Circuit agreed that debtors' interest in their tax overpayment became part of the bankruptcy estate. However, based on the plain language of the various statutes, particularly the plain language of 11 U.S.C. 553(a), the court held that the government's right to offset the debtors' tax overpayment under 26 U.S.C. 6402(a) cannot be subordinated or otherwise affected by debtors' attempts to claim the overpayment as exempt property. Accordingly, the court vacated the district court's judgment, remanding for further proceedings. View "Copley v. United States" on Justia Law

After AutoZone was found liable for creating a hostile work environment and for intentional infliction of emotional distress, plaintiff was awarded both compensatory and punitive damages. The Fourth Circuit reversed the award of punitive damages for plaintiff's claim under Title VII of the Civil Rights Act of 1964 and plaintiff's state law claims. In this case, the evidence does not permit a finding that the sales manager at issue served in a managerial capacity such that liability for punitive damages could be imputed to AutoZone. Furthermore, plaintiff failed to carry his burden of presenting sufficient evidence from which a reasonable jury could conclude that the store manager and district manager at issue engaged in an intentionally discriminatory practice with malice or reckless indifference.The panel remanded with instructions for the district court to determine the final amount of plaintiff's compensatory damages award under his Title VII claim. The court rejected AutoZone's duplicative recovery, jury instruction, and evidentiary error challenges, affirming as to these claims. View "Ward v. AutoZoners, LLC" on Justia Law

The Fourth Circuit denied petitions for review of the BIA's final order of removal. Applying the modified categorical approach, the court held that defendant's prior conviction for distribution of cocaine under Virginia Code 18.2-248, including distribution of that substance as an accommodation under Virginia Code 18.2-248(D), satisfies the federal definitions of an "aggravated felony" and of a crime "relating to a controlled substance" pursuant to 8 U.S.C. 1227(a)(2)(A)(iii), 1227(a)(2)(B)(i). The court also held that the district court did not abuse its discretion in denying petitioner's motion to reconsider. View "Cucalon v. Barr" on Justia Law

Defendant was convicted for possessing a firearm as a felon and sentenced to 63 months' imprisonment and a three-year period of supervised release. The district court additionally recommended, without explanation, that defendant receive addiction treatment while incarcerated and ordered, as a special condition of his supervised release, that defendant participate in an addiction treatment program.The Fourth Circuit held that defendant's sentence is procedurally unreasonable because the district court failed to provide an adequate explanation for imposing as a special condition of supervised release the requirement of addiction treatment. The court also held that the district court failed to address defendant's nonfrivolous mitigation arguments. Therefore, the court remanded for resentencing. View "United States v. Lewis" on Justia Law

The Fourth Circuit affirmed the district court's revocation of defendant's supervised release and resulting sentence. The court held that the district court did not clearly err in finding the government proved he committed the assault underlying the supervised release violation; the district court did not commit plain error by adopting the violation report when announcing defendant committed Violation One; and, even if the district court erred in sentencing defendant for a Grade A violation, the error was harmless. View "United States v. Doctor" on Justia Law

Plaintiff filed suit against defendants after he was terminated for submitting two blog posts about the then Captain of the Internal Affairs Unit of the Maryland Natural Resources Police (MNRP). Among other things, the blog posts contained screenshots from the Captain's private Facebook page that showed photos of the Captain posing with scantily-clad women and various comments that he had made about gun violence.The Fourth Circuit affirmed the dismissal of plaintiff's First Amendment retaliation claim, holding that plaintiff's posts concern nothing more than purely personal speech, as they are devoid of any content that rises to a level of public concern. The court also affirmed the district court's dismissal of plaintiff's claim that defendants violated plaintiff's right to carry a concealed firearm under the Law Enforcement Officer Safety Act, holding that the Act was not privately enforceable under 42 U.S.C. 1983. Finally, the court affirmed the dismissal of plaintiff's defamation per se claim, holding that the statement at issue was not actionable as defamation. View "Carey v. Throwe" on Justia Law

The district court held defendant in contempt after finding him in violation of a consent order limiting his participation in the mortgage industry. The district court ordered the disgorgement of over half-a-million dollars of defendant's contemptuous earnings.The Fourth Circuit affirmed the district court's contempt decision, holding that the district court cited several proper reasons for holding defendant in contempt. However, the district court based its disgorgement sanction on an erroneous legal interpretation of the terms of the underlying consent order. Accordingly, the court vacated the disgorgement order and remanded for further proceedings. View "Consumer Financial Protection Bureau v. Klopp" on Justia Law