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

Defendant pled guilty to two counts of using a firearm to commit murder in the course of a “crime of violence,” in violation of 18 U.S.C. Section 924(j). In 2016, he filed a pro se motion to vacate, set aside, or correct his sentence pursuant to 28 U.S.C. Section 2255. In the motion, he cited the Supreme Court’s decision in Johnson v. United States, 576 U.S. 591 (2015), which held that the “residual clause” in the Armed Career Criminal Act’s (“ACCA”) definition of “violent felony,” was unconstitutionally vague. The district court dismissed the motion. The court concluded that Johnson did not affect the validity of Defendant’s Section 924(j) convictions because they rested on predicate “crimes of violence”, not on the ACCA definition of “violent felony.” While Defendant’s appeal was pending, the Supreme Court held that the residual clause in Section 924(c)’s definition of a “crime of violence” was unconstitutionally vague, recognizing the specific right Defendant asserted in his Section 2255 motion.   The Fourth Circuit vacated Defendant’s conviction and sentence on the other Section 924(j) count because the conviction is unsupported by a valid predicate offense, and the Government concedes that he is entitled to relief. The court explained that because Defendant filed his motion within one year of Johnson and Davis extended the Supreme Court’s reasoning in Johnson, the court held that it was timely. Nevertheless, the court affirmed the dismissal of Defendant’s motion as to one of his Section 924(j) convictions because Defendant procedurally defaulted his claim challenging the conviction and cannot establish grounds for excusing the default. View "US v. Andra Green" on Justia Law

The North Carolina Occupational Safety and Health Hazard Association (“NC OSHA”) issued several itemized citations to Industrial Services Group (“ISG”) following the on-site deaths of two ISG employees. Soon thereafter, ISG filed for declaratory and injunctive relief against two North Carolina state officials, Josh Dobson, the North Carolina Commissioner of Labor and acting Chief Administrative Officer for the North Carolina Department of Labor (“NCDOL”), and Kevin Beauregard, the Director of NCDOL’s Occupational Safety and Health Division, (collectively “Defendants”). ISG alleged that the issued citations were unlawful because they stemmed from North Carolina’s occupational health and safety plan, which in their view, violates 29 U.S.C. Section 657(h) of the federal Occupational Safety and Health Act (“OSH Act”). The district court denied Defendants’ motions to dismiss and for judgment on pleadings, holding that they were not entitled to Eleventh Amendment sovereign immunity because ISG’s claims satisfied the Ex Parte Young exception.   The Fourth Circuit affirmed the district court’s decision to deny Defendants Eleventh Amendment immunity and decline to exercise pendent appellate jurisdiction over Defendants’ newly-raised claims. Here, ISG’s Complaint alleges that the NC State Plan has and continues to violate the OSH Act. It also claims that Dobson and Beauregard, who in their official capacities are responsible for overseeing NCDOL’s implementation of the NC State Plan and its conformity with federal law, are accountable for the unlawful employee evaluation practices. Relying on that, the Complaint does not seek action by North Carolina but rather by the named Defendants who are at the helm of the NC State Plan’s operation. Thus, the individuals were properly named as such in this suit. View "Industrial Services Group, Inc. v. Josh Dobson" on Justia Law

In 2015, Towers Watson & Co. (“Towers Watson”), a Delaware company headquartered in Virginia, purchased directors and officers (“D&O”) liability insurance coverage from several insurance companies, including National Union Fire Insurance Company of Pittsburgh, Pa. (“National Union”) as the primary insurer. Following Towers Watson’s merger with another company, Towers Watson shareholders filed several lawsuits against Towers Watson’s chairman and CEO and others, alleging that the shareholders received below-market consideration for their shares in the merger. The litigation was settled, and Towers Watson sought indemnity coverage from its insurers under the relevant D&O policies. The insurers refused the indemnity request, citing a so-called “bump-up” exclusion in the policies. This declaratory judgment action followed. The district court sided with Towers Watson and held that the bump-up exclusion “does not unambiguously” preclude indemnity coverage for the underlying settlements.   The Fourth Circuit vacated the district court’s judgment and remanded for further proceedings. Under Virginia law, it will not do to merely identify any conceivable basis to hold that an insurance-coverage exclusion does not apply before stripping the exclusion of all force. Rather, the language of the exclusion must reasonably lend itself to an “equally possible” interpretation precluding the exclusion’s applicability. Here, however, the district court’s chosen interpretation, which disregarded the Policy’s plain language and inserted terms not included by the parties, cannot be characterized as one of two “equally possible” constructions. View "Towers Watson & Co. v. National Union Fire Insurance Company" on Justia Law

A criminal complaint was filed against Appellant. On May 20, 2009, a certificate of mental disease or defect and dangerousness issued pursuant to 18 U.S.C. Section 4246. Appellant’s mental condition improved with treatment. The district court ordered his conditional discharge. Appellant returned home and lived with his mother after conditional discharge. The district court revoked the term and recommitted him. This appeal presents two consequential questions. Both relate to the continued involuntary commitment of those afflicted with a mental illness. A commitment wrongly perpetuated is an unwarranted restraint of liberty; a commitment errantly discontinued poses a danger to the committee and the public.   The Fourth Circuit vacated the district court’s order and remanded for further proceedings. The court explained that the record is unclear whether the district court’s findings were made by a preponderance of the evidence. It also appears from the record that the district court collapsed both inquiries of Section 4246(f) into a single question, focusing only on whether Appellant violated the conditions of his release and not explaining why “in light of” those violations his continued release created a substantial risk to other persons or property. Additionally, the record would benefit from further development respecting the violations alleged and the available, recent records from the facility. Further, the court wrote that the government should take note of its evidentiary burden, develop evidence on the point, and provide the district court a sound basis for making reasoned findings on the matter of dangerousness for that particular alleged violation. View "US v. Christopher Perkins" on Justia Law

Plaintiffs, residents of West Virginia, formerly owned Demcorp, LLC, which did business as “Dollar Stretcher,” a convenience store in nearby Winchester, Virginia. That store sold large quantities of cigarettes, which law enforcement agents of the Department of Homeland Security had evidence to believe was being resold in New York to avoid New York’s higher excise taxes, in violation of the Contraband Cigarette Trafficking Act. During their criminal investigation, agents, armed with warrants, seized 1,560 cartons of cigarettes from the Dollar Stretcher store, and the Department of Homeland Security then held them for several years, during which time the cigarettes passed their shelf life of one year. When the Department ultimately offered to return the cigarettes, Plaintiff refused them as they could no longer be sold and thus had no value. Plaintiffs commenced this action against the Department of Homeland Security and the United States under the Federal Tort Claims Act, seeking compensatory damages. The district court dismissed the complaint for lack of subject matter jurisdiction.   The Fourth Circuit affirmed. The court explained that the criminal warrant served a range of obvious and stated criminal investigative purposes. Any damages action against the United States for the improper seizure and detention under such a warrant is barred by sovereign immunity. Even though the seizure of cigarettes, in this case, was authorized by both a warrant issued for criminal investigative purposes and a warrant issued for civil forfeiture — dual purposes — the court concluded that the United States is immune from suit. View "Reba Myers v. Alejandro Mayorkas" on Justia Law

Defendant was originally charged with four federal offenses: (1) carjacking; (2) kidnapping; (3) using a firearm during a crime of violence; and (4) possessing a firearm after being convicted of a felony. The parties agreed Defendant would plead guilty to the kidnapping and Section 924(c) charges, and the government would dismiss the carjacking and felon in possession charges. Neither the indictment nor the plea agreement specified a predicate “crime of violence” for the Section 924(c) charge, and the plea agreement contained no agreed-upon factual statement. Defendant filed a pro se motion to vacate his Section 924(c) conviction based on intervening authority. The district court denied Defendant’s motion. The court acknowledged it is now clear “kidnapping is not a Section 924(c) predicate offense.” But the court concluded Defendant’s Section 924(c) conviction remained valid because.   The Fourth Circuit reversed the district court’s denial of Defendant’s motion to vacate his firearm conviction and remanded him for resentencing. The court explained that the categorical approach does not deny the district court its ultimate discretion, nor does it deprive the facts of their force. Even if a statutory enhancement under Section 924(c) does not apply because of the categorical approach, as is the case here, judges may, at their discretion, calculate a guidelines range or grant upward variances based on the violent nature of the criminal activity. Even if the categorical approach renders violent predicates legally invalid, district courts are at liberty to sentence the violent character of the cases that come before them. View "US v. Elliott Graham" on Justia Law

After pleading guilty to possession of a firearm by a felon, Defendant was sentenced to 15 years imprisonment, an enhanced penalty that represents the mandatory minimum sentence required for such a violation when the provisions of the Armed Career Criminal Act (“ACCA”) are satisfied. ACCA provides that when a defendant violates Section 922(g) and has “three previous convictions . . . for a violent felony or a serious drug offense . . . committed on occasions different from one another,” he shall be given the enhanced sentence. Defendant’s indictment did not allege the facts supporting the ACCA enhancement; instead, the district court found them as part of the sentencing procedure. Defendant maintained that, in light of Supreme Court cases and the Fifth and Sixth Amendments, ACCA’s requirement that the defendant has committed the prior offenses on different occasions must be alleged in the indictment and found by a jury or admitted by the defendant in his guilty plea because that fact increases the penalty for his crime.   The Fourth Circuit affirmed. The court concluded that the ACCA enhancement remains a matter for sentencing. Under Almendarez-Torres v. United States, 523 U.S. 224 (1998), the facts that support a recidivism enhancement are resolved by the district court during sentencing, and ACCA provides just such a recidivism enhancement, as the court recognized in Thompson. Despite Defendant’s arguments to the contrary, the court concluded that the Supreme Court’s decisions in Descamps, Mathis, and Wooden have not narrowed or overruled Almendarez-Torres. And if they have done so by implication, the Supreme Court must say so, not a court of appeals. View "US v. Rico Brown" on Justia Law

Plaintiff Moses Enterprises, LLC, sells cars. Moses had an insurance policy issued by defendant Lexington Insurance Company, with Defendant AIG Claims, Inc. serving as the claims administrator. Moses sued Lexington and AIG in federal district court. The complaint made four claims under West Virginia law, including—as relevant here—one for breach of the insurance contract and one for violating the State’s unfair trade practices statute. The district court granted partial summary judgment for Moses on the breach of contract claim but resolved only liability—not damages.   The Fourth Circuit vacated the district court’s judgment and remanded. The court explained that the district court’s later grant of partial summary judgment also did not obviate the need for further work to “obtain payment of the insurance proceeds.” However, at the same time the court rejected Moses’s contention that the district court committed no legal errors in concluding Moses was entitled to “the entire amount of attorney’s fees incurred until the final resolution of the case.” Thus, the court wrote because the district court committed legal error in awarding Moses the full amount of its requested fees without determining whether any of the work was properly attributed only to the Jenkins claim, the court vacated the fee award and remand for further proceedings View "Moses Enterprises, LLC v. Lexington Insurance Company" on Justia Law

While working for Adnet, Inc. (“Adnet”), Defendants learned of a subcontract that Adnet was attempting to win. Thereafter, Defendants, through their own company, submitted a bid for that same subcontract. After Defendants won the subcontract, Adnet brought claims against them for breach of the duty of loyalty, tortious interference with a business relationship, and business conspiracy. The district court granted Defendants’ motion for summary judgment, concluding that Defendants did not compete against Adnet, that Adnet did not have a business expectancy in the subcontract, and that, without proof of an underlying tort, there was no business conspiracy. Adnet appealed.   The Fourth Circuit reversed the district court’s grant of summary judgment to Defendants on Adnet’s claims for breach of the duty of loyalty and tortious interference with a business relationship. Further, the court vacated the district court’s grant of summary judgment to Defendants on Adnet’s business conspiracy claim and remanded. The court explained that there is sufficient evidence of a direct competition for the subcontract between Adnet and Defendants while they were working for Adnet to bar a grant of summary judgment to Defendants. A reasonable juror could conclude that employees, like Defendants, breach their duty of loyalty to their employer when they learn of a potential business opportunity through their employment and then participate in direct competition with their employer for that opportunity while still employed. View "Adnet, Inc. v. Rohit Soni" on Justia Law

After Defendant’s allocution, but before his attorney argued at his sentencing hearing, the district court forecast that the minimum sentence he would receive was 60 months in prison—his crime’s statutory max. Defendant’s attorney then advocated for a lower sentence. The court imposed a 60-month sentence. He claimed it was procedurally unreasonable for the court to state his term of imprisonment before his attorney argued. Defendant also argued that his sentence is procedurally unreasonable because it was not adequately explained and was based on an incorrectly calculated guidelines range.The Fourth Circuit explained that because Defendant did not make this argument to the district court, the court reviewed it for plain error and found none. The court explained that the district court offered enough explanation to satisfy us that it considered Defendant’s alcohol addiction argument and had a reasoned basis for the sentence it imposed. Defendant and his defense counsel argued at sentencing that Defendant’s untreated alcohol addiction contributed to his crime and warranted a lighter sentence. In response, the district court suggested that it was Defendant’s own fault that he had not sought treatment for his addiction. The district court then discussed the nature of Defendant’s offense, the impact his actions had on his victims, and the danger he posed to the public. The record as a whole shows the district court’s rationale for discounting Defendant’s argument and why the court thought the Section 3553(a) factors outweighed it. Accordingly, the court rejected Defendant’s argument that the sentence was inadequately explained and, thus, procedurally unreasonable. View "US v. Joel Covington" on Justia Law