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

Three licensed substance use disorder professionals, referred to as the Counselors, were employed by NCG Acquisition, LLC and NCG CARE, Inc. They allege that they were wrongfully terminated after attempting to ensure a client received appropriate care. The Counselors had recommended that a client in severe distress be moved to inpatient treatment, but their supervisor, Jessica Tewell, altered their recommendation, preventing the client from receiving the necessary care. The client subsequently died of a drug overdose. The Counselors reported their concerns internally and were terminated shortly thereafter.The Counselors filed a lawsuit in the Western District of North Carolina, claiming wrongful termination in violation of public policy under the North Carolina Substance Use Disorder Professional Practice Act (SUDPPA) and its regulations. The district court dismissed their complaint, concluding that while SUDPPA constitutes an expression of public policy, the Counselors failed to allege a plausible claim that their termination contravened specific SUDPPA regulations.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court found that SUDPPA and its regulations indeed represent the public policy of North Carolina. The Counselors plausibly alleged that their termination was in retaliation for actions taken in compliance with their professional obligations under SUDPPA, such as protecting client welfare and maintaining accurate records. The court concluded that the Counselors' actions were consistent with their professional duties and that their termination violated the public policy of North Carolina. Consequently, the Fourth Circuit reversed the district court's dismissal and remanded the case for further proceedings. View "Shook v. NCG Acquisition, LLC" on Justia Law

Robert Dale Ellis, after being convicted under North Carolina law for child pornography offenses, failed to register as a sex offender, leading to a federal conviction and subsequent supervised release. Ellis repeatedly violated the conditions of his supervised release, resulting in multiple revocations and re-impositions of prison terms and new supervised release conditions. His violations included unauthorized travel, failure to report to his probation officer, and non-compliance with treatment programs.The United States District Court for the Western District of North Carolina handled Ellis' supervised release violations. The court modified his conditions multiple times, including imposing home detention and location monitoring. Despite these measures, Ellis continued to violate his release conditions, leading to further revocations and re-impositions of supervised release terms. In his latest revocation, the district court imposed two contested conditions: requiring probation officer approval for internet-capable devices and six months of location monitoring.The United States Court of Appeals for the Fourth Circuit reviewed Ellis' appeal, where he challenged these two conditions. Ellis argued that the device-approval condition improperly delegated judicial power, effectively banned internet use, and was overbroad. He also contended that the location-monitoring condition was not reasonably related to his sentencing factors and imposed an excessive deprivation of liberty. The Fourth Circuit disagreed, holding that the device-approval condition did not delegate judicial power improperly and was not a complete internet ban. The court found that the condition was reasonably related to Ellis' history and characteristics and did not involve a greater deprivation of liberty than necessary. Similarly, the location-monitoring condition was deemed reasonably related to Ellis' offense and necessary for public protection and deterrence. The court affirmed the district court's judgment. View "United States v. Ellis" on Justia Law

Sheila Ann Trantham filed a Chapter 13 bankruptcy plan proposing that the property of the bankruptcy estate vest in her at the time of plan confirmation. The Trustee objected, arguing that the local form plan required the property to vest only when the court entered a final decree. The bankruptcy court agreed with the Trustee, holding that a debtor could not propose a plan that contradicted the local form’s default vesting provision. Trantham amended her plan to conform with the local form but reserved her right to appeal.The United States District Court for the Western District of North Carolina affirmed the bankruptcy court’s decision. The district court reasoned that vesting property in the debtor at confirmation could lead to various risks and practical problems, such as the property being vulnerable to creditors and the trustee lacking sufficient oversight. The court also held that Trantham lacked standing to appeal because she had not shown any injury from having to conform to the local form’s default vesting provision.The United States Court of Appeals for the Fourth Circuit reviewed the case and reversed the district court’s order. The Fourth Circuit held that Trantham had standing to appeal because the bankruptcy court’s order diminished her property and increased her procedural burdens. The court also found that the bankruptcy court erred in requiring Trantham to conform to the local form’s default vesting provision. The court emphasized that the Bankruptcy Code allows debtors to propose nonstandard provisions, including vesting provisions, and that the bankruptcy court’s decision to reject Trantham’s proposed vesting provision was not supported by the Code.The Fourth Circuit reversed the district court’s order and remanded the case for further proceedings, instructing the bankruptcy court to assess whether Trantham’s proposed vesting provision should be confirmed or rejected for a reason permitted by the Code. View "Trantham v. Tate" on Justia Law

Simply Wireless, Inc., a Virginia telecommunications company, sued T-Mobile US, Inc. and T-Mobile USA, Inc. for trademark infringement, alleging that T-Mobile had infringed on its common law trademark "SIMPLY PREPAID." Simply Wireless had used the trademark from 2002 to 2008 and resumed its use in 2012. T-Mobile began using the same trademark in 2014 and applied to register it with the United States Patent and Trademark Office. Simply Wireless filed a competing application and subsequently launched a revamped website under the trademark.The United States District Court for the Eastern District of Virginia granted summary judgment to T-Mobile, ruling that Simply Wireless had abandoned the trademark due to nonuse from 2009 to 2011. The court found that Simply Wireless had not provided sufficient evidence to rebut the presumption of abandonment, which is triggered by three consecutive years of nonuse under 15 U.S.C. § 1127. Simply Wireless appealed, arguing that genuine disputes of material fact existed regarding its intent to resume use of the trademark during the period of nonuse.The United States Court of Appeals for the Fourth Circuit reviewed the case de novo and vacated the district court's summary judgment order. The appellate court found that Simply Wireless had presented sufficient evidence, including a detailed declaration from its CEO and corroborating documents, to create a genuine dispute of material fact regarding its intent to resume use of the trademark during the period of nonuse. The court emphasized that the intent-to-resume-use inquiry is an intensely factual question and rarely amenable to summary judgment. The Fourth Circuit also rejected T-Mobile's alternative argument that the statutory abandonment test does not apply to common law trademarks, affirming that the test is applicable.The Fourth Circuit vacated the district court's summary judgment order and remanded the case for further proceedings. View "Simply Wireless, Inc v. T-Mobile US, Inc" on Justia Law

Loretta Marshall applied for a nursing job with Tidelands Health using their online application process. After failing a mandatory physical agility test, she was denied employment. Marshall then sued Tidelands, alleging that the physical agility test constituted prohibited discrimination. Tidelands moved to compel arbitration, arguing that Marshall had agreed to arbitration through the online application process. The district court denied the motion, concluding that Tidelands had not shown the existence of an agreement to arbitrate.The United States District Court for the District of South Carolina reviewed the case. Initially, Tidelands argued that Marshall's 2016 arbitration agreement covered her 2020 application. The magistrate judge found that the 2016 agreement did not apply to future applications. Tidelands then argued that Marshall agreed to arbitration in 2020, but the magistrate judge found that Marshall was not required to scroll through the arbitration agreement in 2020 and was not on reasonable notice of the agreement. The district court agreed with the magistrate judge and denied Tidelands' motion to compel arbitration.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court held that Tidelands failed to show that Marshall had reasonable notice of an offer to arbitrate in 2020. The court noted that Marshall was not required to scroll through the arbitration agreement and that the arbitration notice at the top of the webpage did not provide the actual terms of an agreement. Additionally, the court found that Marshall did not manifest her assent to the arbitration agreement by clicking the "submit" button, as it did not clearly indicate agreement to arbitration. The Fourth Circuit affirmed the district court's judgment, concluding that no arbitration agreement was formed in 2020. View "Marshall v. Georgetown Memorial Hospital" on Justia Law

In December 2018, law enforcement began investigating a residence in Fairmont, West Virginia, for suspected drug dealing. Officers found drug residue in the trash and observed hand-to-hand transactions. During a traffic stop, they seized marijuana and a firearm from a visitor. A search warrant executed on January 31, 2019, led to the discovery of drugs and firearms in the residence. Lamar Perdue, found trying to escape, was among those detained. A federal grand jury indicted Perdue and two others on multiple drug charges and one count of aiding and abetting possession of a firearm in furtherance of a drug trafficking crime.The United States District Court for the Northern District of West Virginia accepted Perdue's guilty plea to all charges without a plea agreement. During the plea hearing, the court failed to inform Perdue of the advance knowledge requirement for the firearm charge under Rosemond v. United States. Perdue was sentenced to 195 months in prison. He later filed a motion under 28 U.S.C. § 2255, arguing ineffective assistance of counsel for not pursuing an appeal. The district court granted the motion, allowing Perdue to appeal but did not alter his sentence.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court agreed that the district court erred by not explaining the advance knowledge requirement but found that Perdue did not show a reasonable probability that he would have pleaded differently if properly informed. The court noted that Perdue voluntarily pleaded guilty, rejecting a plea agreement to avoid cooperating against co-defendants. The court affirmed the district court's judgment, holding that the error did not affect Perdue's substantial rights. View "United States v. Perdue" on Justia Law

The plaintiffs challenged the constitutionality of North Carolina’s sex offender registration statute, arguing that it violated the Ex Post Facto Clause of the Constitution by retroactively imposing new punishments for crimes committed in the past. The statute requires offenders to report personal information to law enforcement and restricts where they can live, work, and visit. The plaintiffs, including two nonprofit organizations and two individuals, sought to bar the retroactive application of certain amendments to the statute.The United States District Court for the Middle District of North Carolina held a bench trial and found that the statute was nonpunitive and thus did not violate the Ex Post Facto Clause. The court concluded that the legislature intended to create a civil, nonpunitive scheme and that the plaintiffs failed to show by the clearest proof that the statute’s effects were punitive.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court’s judgment. The appellate court agreed that the legislature intended to enact a civil, nonpunitive scheme aimed at protecting public safety. The court also found that the statute was rationally connected to this nonpunitive purpose and was not excessive in relation to its goal. Although the statute imposed significant burdens on registrants, the court concluded that these burdens did not amount to punishment. The court held that the plaintiffs did not provide the clearest proof that the statute’s effects were so punitive as to override the legislature’s intent.Therefore, the Fourth Circuit affirmed the district court’s judgment, upholding the constitutionality of North Carolina’s sex offender registration statute under the Ex Post Facto Clause. View "National Assoc. For Rational Sexual Offense Laws v. Stein" on Justia Law

Hanumant Joshi, an Indian national, entered the U.S. on a student visa in 2015. Diagnosed with severe mental illnesses, including depression and schizoaffective disorder, Joshi experienced multiple involuntary hospitalizations both in the U.S. and India. In India, he was forcibly hospitalized several times, subjected to unknown medications, and underwent electroconvulsive therapy (ECT). Joshi claimed that his half-brother and cousins were behind these institutionalizations to gain control over his inheritance.The Immigration Judge (IJ) denied Joshi's claims for asylum, withholding of removal, and protection under the Convention Against Torture (CAT). The IJ found Joshi's asylum application untimely and determined that his institutionalizations were legitimate medical treatments rather than persecution. The IJ also concluded that Joshi's relatives were motivated by greed, not by his mental illness, and thus did not establish the required nexus to a protected ground. The Board of Immigration Appeals (BIA) affirmed the IJ's decision, agreeing that Joshi did not demonstrate past persecution or a well-founded fear of future persecution and that his treatment did not constitute torture.The United States Court of Appeals for the Fourth Circuit reviewed the case and upheld the BIA's decision. The court found substantial evidence supporting the BIA's determination that Joshi's involuntary hospitalizations and ECT were legitimate medical interventions, not persecution. The court also agreed that Joshi's relatives' actions were motivated by a desire for his property, not his mental illness, failing to establish the necessary nexus for asylum. Consequently, the court denied Joshi's petition for review, affirming the denial of asylum, withholding of removal, and CAT protection. View "Joshi v. Garland" on Justia Law

On February 1, 2020, four Pineville Police Department officers responded to a 911 call about a Black man allegedly waving a gun. They found Timothy Caraway walking alone with a cellphone in his hand. The officers, with weapons drawn, commanded Caraway to raise his hands and drop what they thought was a gun. As Caraway reached into his jacket to discard the gun, Officers Adam Roberts and Jamon Griffin fired twelve shots, hitting Caraway four times. Caraway sued the officers and the City of Pineville under 42 U.S.C. § 1983 and North Carolina law, alleging excessive force and assault and battery, among other claims.The United States District Court for the Western District of North Carolina granted summary judgment to the officers, finding they were entitled to qualified immunity on the Fourth Amendment excessive force claim and public official immunity on the state-law assault and battery claim. The court concluded that the officers' use of deadly force was reasonable because Caraway's gun was pointed at them in the moments before the shooting.The United States Court of Appeals for the Fourth Circuit affirmed the district court's decision. The appellate court held that the officers' use of deadly force was reasonable under the Fourth Amendment because Caraway's gun was pointed at the officers, posing an immediate threat. The court also upheld the grant of public official immunity on the state-law claims, finding that the officers acted without malice. The court declined to segment the shooting into different phases, noting the entire sequence lasted only a few seconds. View "Caraway v. City of Pineville" on Justia Law

The case involves a court-appointed receiver tasked with distributing funds recovered from a Ponzi scheme orchestrated by Kevin Merrill, Jay Ledford, and Cameron Jezierski. The scheme defrauded over 230 investors of more than $345 million. The appellants, comprising institutional and individual investors, were among the victims. The institutional investors, known as the Dean Investors, frequently withdrew and reinvested their funds, while the individual investors, known as the Connaughton Investors, invested through a third-party fund and later received settlements from that fund.The United States District Court for the District of Maryland approved the receiver's distribution plan, which used the "Rising Tide" method to allocate funds. This method ensures that no investor recovers less than a certain percentage of their principal investment, but it deducts pre-receivership withdrawals from the recovery amount. The Dean Investors objected to this method, arguing that their reinvested withdrawals should not be counted against them. The Connaughton Investors objected to the plan's "Collateral Offset Provision," which counted third-party settlements as withdrawals, reducing their distribution from the receiver.The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decision. The court found no abuse of discretion in the district court's approval of the distribution plan. It held that the Rising Tide method without the Maximum Balance approach was appropriate, as it ensured a fair distribution to more claimants. The court also upheld the Collateral Offset Provision, reasoning that it prevented the Connaughton Investors from receiving a disproportionately higher recovery compared to other victims. The court emphasized the need for equitable distribution and the administrative feasibility of the receiver's plan. View "CCWB Asset Investments, LLC v. Milligan" on Justia Law