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statutory interpretation

Life Technologies Corp., et al. v. Promega Corp.

Issues

Is the shipment of one commodity component from the United States for the foreign assembly and unauthorized sale of a patented, multi-component invention a violation of 35 U.S.C. § 271(f)(1)?

Under 35 U.S.C. § 271(f)(1), when a party, without the authority to do so, ships from the United States either “all or a substantial portion of the components of a patented invention” or “any component . . . that is especially made or especially adapted for use in the invention” in a way that would induce another party abroad to combine the component(s) to form the patented invention, that party commits patent infringement. Section 271(f)(1) prevents parties from evading domestic patent law when engaging in international transactions. The parties differ on how broad § 271(f)(1) should be construed. Life Technologies Corporation argues that courts should construe § 271(f)(1) narrowly to refer to the percentage of components for the invention that a party ships abroad. Promega Corporation, on the other hand, argues that the statute takes into account a combination of quantity and relative importance of the component(s) shipped abroad. The outcome of this case will determine the limits of 35 U.S.C. § 271(f)(1) and, consequently, the limits of private action in shipping materials abroad. 

Questions as Framed for the Court by the Parties

35 U.S.C. § 271(f)(1) provides that it is an act of patent infringement to “suppl[y] . . . in or from the United States all or a substantial portion of the components of a patented invention, . . . in such manner as to actively induce the combination of such components outside the United States.” Despite this Court’s clear dictate that section 271(f) should be construed narrowly, Microsoft Corp. v. AT&T Corp., 550 U.S. 437 (2007), the Federal Circuit held that Life Technologies is liable for patent infringement for worldwide sales of a multi-component kit made abroad because just a single, commodity component of the kit was shipped from the U.S.

The question presented is:

Whether the Federal Circuit erred in holding that supplying a single, commodity component of a multi-component invention from the United States is an infringing act under 35 U.S.C. § 271(f)(1), exposing the manufacturer to liability for all of its worldwide sales.

Promega Corporation (“Promega”) owns four patents for methods of amplifying particular “short tandem repeats” (“STR”) loci in a DNA strand and has an exclusive license over a fifth method for the same. Promega Corp. v. Life Technologies Corp., No. 10-cv-0281, at 5 (Fed. Cir. Dec.

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Lockhart v. United States

Issues

Under 18 U.S.C. § 2252(b)(2), defendants with prior state convictions relating to “aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor or ward” receive a ten-year mandatory minimum sentence; however, does the phrase “involv[e] a minor or ward” apply to each type of conviction above, or does it only apply to the last category, abusive sexual conduct?

Under 18 U.S.C. § 2252(b)(2), a mandatory minimum sentence is imposed on a defendant with a prior state conviction relating to “aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor or ward.” In this case, the Supreme Court will decide whether the clause “involving a minor or ward” modifies only “abusive sexual conduct” or the entire series of terms preceding it. See Petition for Writ of CertiorariLockhart v. United States, No. 14-8358, at 13 (Apr. 10, 2015). The convicted offender, Avondale Lockhart, urges the Court to adopt the series-qualifier principle of statutory interpretation by applying “involving a minor or ward” to the entire preceding series of terms contained in section 2252(b)(2). See Brief for Petitioner, Avondale Lockhart at 13. Lockhart contends that because his prior state conviction does not involve a minor or ward, he does not qualify for section 2252(b)(2)’s ten-year mandatory minimum sentence. Id. However, the United States argues that the Court should interpret section 2252(b)(2) using the last-antecedent rule by applying “involving a minor or ward” only to the immediately preceding clause, “abusive sexual conduct,” thereby upholding Lockhart’s jail sentence. See Brief for Respondent, United States at 18. The Court’s decision will determine the scope of offenses covered by mandatory minimum sentences under 18 U.S.C. § 2252(b)(2), and could impact the degree of protection afforded to federal defendants with prior state convictions. See Petition for Writ at 13; Brief for Petitioner at 41–42.

Questions as Framed for the Court by the Parties

Is section 2252(b)(2)’s mandatory minimum penalty triggered by a prior state conviction “relating to” “aggravated sexual abuse” or “sexual abuse” even though the conviction did not “involv[e] a minor or ward”?

In June 2010, federal agents initiated an undercover investigation of Avondale Lockhart after learning that Lockhart had transferred money to receive child pornography. See United States v. Lockhart, 749 F.3d 148, 150 (2d Cir.

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M & K Employee Solutions, LLC v. Trustees of the IAM National Pension Fund

Issues

Does 29 U.S.C. § 1391 require actuaries of multiemployer pension plans to calculate a withdrawing employer’s liability based on actuarial assumptions made before the last day of the year? 

This case asks the Supreme Court to consider the deadline by which 29 U.S.C. § 1391 requires multiemployer pension plans to calculate the liability an employer would have should they choose to withdraw from that plan. The Employers argue that the plain text of § 1391 supports a bright-line rule that requires multiemployer pension plan actuaries to calculate the unfunded vested benefits, or the plan’s underfunding, as of the end of the year prior to the year a given employer withdraws from the plan. Trustees of the IAM National Pension Fund argue that because § 1391 is silent on the date as of which actuarial assumptions must be calculated, unlike other statutes addressing similar subject matters, that silence is controlling. The Employers further argue that Congress intended the statute to provide employers information about their potential withdrawal liability, which limits the information actuaries can use in determining this liability. The Trustees counter that Congress did not intend for employers to have advanced notice of the assumptions an actuary will use to calculate withdrawal liability, nor is it practical to do so. This case will directly impact how employers make business decisions related to multiemployer pension plans. Additionally, this case raises fairness concerns related to who will bear the risks when employers withdraw from multiemployer pension plans.

Questions as Framed for the Court by the Parties

Whether 29 U.S.C. § 1391’s instruction to compute withdrawal liability “as of the end of the plan year” requires the plan to base the computation on the actuarial assumptions most recently adopted before the end of the year, or allows the plan to use different actuarial assumptions that were adopted after, but based on information available as of, the end of the year.

Four employers, M & K Employee Solutions, LLC, Ohio Magnetics, Inc., Phillips Liquidating Trust, and Toyota Logistics Services, Inc. (collectively “the Employers”), withdrew from the IAM National Pension Fund at different times in 2018. Trustees of the IAM National Pension Fund v. M & K Employee Solutions, LLC (D.C.

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Maine Community Health Options v. United States

Issues

Did Section 1342 of the Affordable Care Act statutorily oblige the government to fulfill all outstanding payments owed to insurance companies under Section 1342’s risk-corridors program, and if so, did Congress’s appropriations riders impliedly repeal that obligation?

This case consolidates four lawsuits, together asking the Court to determine if Section 1342 of the Affordable Care Act statutorily obliges Congress to fulfill outstanding payments to insurance companies after Congress failed to appropriate funds for these payments. Section 1342 established a “risk-corridors program,” whereby health insurers and the United States government would share unforeseen costs associated with providing universal healthcare on “health benefit exchanges.” Petitioners argue that Section 1342 statutorily requires the government to make full “payments out” to insurance companies who have suffered a loss—regardless of whether Congress appropriated enough money to cover these losses. Respondent, the United States, counters that Section 1342 merely created a program to oversee “payments out” to health insurers, and even if it does oblige the government to make payments, Congress’s appropriations riders repealed that obligation. The outcome of this case has implications for the separation of powers principles and the future of public-private partnerships.

Questions as Framed for the Court by the Parties

(1) Whether—given the “cardinal rule” disfavoring implied repeals, which applies with “especial force” to appropriations acts and requires that repeal not to be found unless the later enactment is “irreconcilable” with the former—an appropriations rider whose text bars the agency’s use of certain funds to pay a statutory obligation, but does not repeal or amend the statutory obligation, and is thus not inconsistent with it, can nonetheless be held to impliedly repeal the obligation by elevating the perceived “intent” of the rider (drawn from unilluminating legislative history) above its text, and the text of the underlying statute; and (2) whether—when the federal government has an unambiguous statutory payment obligation, under a program involving reciprocal commitments by the government and a private company participating in the program—the presumption against retroactivity applies to the interpretation of an appropriations rider that is claimed to have impliedly repealed the government’s obligation.

In 2010, Congress passed the Patient Protection and Affordable Care Act (“ACA”), which, among other healthcare reforms, created virtual marketplaces, called health benefit exchanges (“Exchanges”), that allowed individuals and groups to purchase healthcare coverage from one centralized forum. Moda Health Plan, Inc. v.

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Medical Marijuana, Inc. v. Horn

Issues

Do economic harms, such as losing employment, qualify as injury to “business or property” under the Racketeer Influenced and Corrupt Organizations Act, if those harms stem from personal injuries, such as ingesting an unwanted drug?

This case asks the Supreme Court to decide whether economic harms resulting from personal injuries are injuries to “business or property” for the purposes of the Racketeer Influenced and Corrupt Organizations Act (“RICO”). Commercial truck driver Horn ingested Dixie X to alleviate his back pain, after learning from the sellers that it contained no THC, even though it did. After testing positive for THC in a random drug test from his employer, Horn was fired. He then sued the sellers for injury to his business under RICO. Medical Marijuana, Inc. argues that ingestion of an unwanted substance like THC is a personal injury, and that economic damages from such an injury do not turn it into an injury to “business or property.” Horn claims that losing his job because of Medical Marijuana’s alleged fraud is an injury to “business or property.” This case has significant implications for the rights of human trafficking victims, the cost of doing business in consumer products, and the vitality of the hemp industry.

Questions as Framed for the Court by the Parties

Whether economic harms resulting from personal injuries are injuries to “business or property by reason of” the defendant’s acts for purposes of a civil treble-damages action under the Racketeer Influenced and Corrupt Organizations Act.

Respondent, Douglas Horn, was a commercial truck driver for fourteen years before the event leading to this case occurred. Brief for Respondent, Horn at 3–4. In February 2012, he was involved in a trucking accident in which he sustained injuries to his shoulder and back.

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National Labor Relations Board v. SW General, Inc.

Issues

May a senior agency official appointed by the president to serve as acting head of the same agency continue to serve in this capacity after being nominated by the president to permanently fill the office, even if the officer never served as first assistant to the office? 

This case presents the Supreme Court with an opportunity to interpret § 3345 of the Federal Vacancies Reform Act of 1998 (“FVRA”) and to determine if a person performing the acting duties of an office that requires Senate confirmation may continue to do so after the president nominates them to fill the vacancy permanently. The parties disagree over the meaning of § 3345(b)(1) of the FVRA, which dictates that officials serving in an acting capacity may continue to do so after being nominated for permanent status only if they served as first assistant to the vacant office for 90 days in the year prior to the vacancy. Petitioner, the National Labor Relations Board (“NLRB”), argues that this limitation only applies to first assistants who automatically assume acting duties under § 3345(a)(1). The NLRB contends that this interpretation accords with both the language and objectives of the FVRA, and also with the historical practices of prior presidents and the Senate. Respondent, SW General, Inc., maintains that § 3345(b)(1) applies to all acting officials appointed pursuant to § 3345(a). SW General argues that § 3345(b)(1)’s language and purpose are clear and that core principles like separation of powers and the protection of the balance between the state and federal governments support its interpretation. The outcome of this case will affect presidential appointments that require Senate confirmation. 

Questions as Framed for the Court by the Parties

Many important government posts must be filled by persons who are nominated by the President and confirmed by the Senate. The Federal Vacancies Reform Act of 1998 (FVRA), 5 U.S.C. 3345 et seq., provides that when such an office is vacant, its functions and duties may be performed temporarily in an acting capacity by either the first assistant to the vacant post, under Section 3345(a)(1); a Senate-confirmed official occupying another office in the Executive Branch who is designated by the President under Section 3345(a)(2); or a senior official in the same agency designated by the President under Section 3345(a)(3). 

Section 3345(b) of the FVRA provides as a general rule that "[n]otwithstanding subsection (a)(1)," a person who is nominated to fill a vacant office that is subject to the FVRA may not perform the office's functions and duties in an acting capacity unless the person served as first assistant to the vacant office for at least 90 days in the year preceding the vacancy. 5 U.S.C. 3345(b). 

The question presented is whether the precondition in 5 U.S.C. 3345(b)(1) on service in an acting capacity by a person nominated by the President to fill the office on a permanent basis applies only to first assistants who take office under Subsection (a)(1) of 5 U.S.C. 3345, or whether it also limits acting service by officials who assume acting responsibilities under Subsections (a)(2) and (a)(3).

The General Counsel of the National Labor Relations Board (“NLRB”) is a position that requires appointment by the president with the advice and consent of the Senate. See SW General v. NLRB, No. 14-1107, slip op. at 5 (D.C. Cir. Aug.

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Noem v. Al Otro Lado

Issues

Has a noncitizen who was stopped on the Mexican side of the U.S.–Mexico border “arrived in the United States” under the Immigration and Nationality Act, rendering them eligible to apply for asylum and be inspected by an immigration officer?

This case asks the Supreme Court to decide whether a noncitizen stopped on the Mexican side of the U.S.–Mexico border “arrived in the United States” within the meaning of the Immigration and Nationality Act (“INA”). Petitioners Kristi Noem, et al., argue that the plain meaning and history of the statute, as well as the presumption against extraterritoriality, support the requirement of a physical presence in the United States. Respondents Al Otro Lado, et al., counter that the statute applies to people on both sides of the border. Respondents also maintain that the presumption against extraterritoriality does not apply because the INA regulates the domestic conduct of immigration officers. The outcome of this case will have significant ramifications for the administration of border security and separation of powers.

Questions as Framed for the Court by the Parties

Whether a noncitizen who is stopped on the Mexican side of the U.S.–Mexico border “arrives in the United States” within the meaning of the Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., which provides that a noncitizen who “arrives in the United States” may apply for asylum and must be inspected by an immigration officer.

Under the Immigration and Nationality Act (“INA”), noncitizens are eligible to apply for asylum in the United States if they are “physically present” or “arrive in” the United States and can demonstrate a credible fear of persecution in their home country. 

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NVIDIA Corp. v. E. Ohman J:or Fonder AB

Issues

Does the Private Securities Litigation Reform Act require plaintiffs alleging scienter (knowledge of fraud by defendants) based on allegations about internal company documents to plead with particularity the contents of those documents? And, does the Act permit expert opinion rather than particularized allegations of fact to satisfy the Act’s falsity requirement?

This case asks the Supreme Court to decide how plaintiffs can demonstrate intent (also called “scienter”) under the Private Securities Litigation Reform Act (“PSLRA”) for the purpose of alleging securities fraud. More specifically, this case asks the Supreme Court to decide whether plaintiffs can allege intent based on allegations about internal company documents without referring to specific content in those documents. It also asks the Supreme Court to determine if plaintiffs can satisfy the Act's falsity requirement by relying on an expert opinion in lieu of particularized allegations of fact. NVIDIA argues that Öhman’s failure to allege with particularity the contents of the internal documents to show that NVIDIA misrepresented its finances to investors does not show a strong inference of scienter that the PSLRA requires in order to reduce frivolous lawsuits, and that Öhman’s reliance on expert testimony to satisfy the PSLRA’s rigorous particularity standard would allow plaintiffs to circumvent it. Öhman counters that the PSLRA evinces a holistic approach in meeting the burden of showing a strong inference of scienter rather than requiring one specific allegation. Öhman also claims that an expert’s conclusion is an allegation of fact since the experts’ assertion is backed by embedded statements of fact to arrive at such a conclusion. The outcome of this case has strong implications for the national economy and access to justice.

Questions as Framed for the Court by the Parties

Whether plaintiffs seeking to allege scienter under the Private Securities Litigation Reform Act based on allegations about internal company documents must plead with particularity the contents of those documents; and (2) whether plaintiffs can satisfy the Act's falsity requirement by relying on an expert opinion to substitute for particularized allegations of fact.

In 1995, Congress enacted the Private Securities Litigation Reform Act (“PSLRA”) to rein in frivolous suits in securities fraud class actions. Choi, Stephen, and Pritchard, A.C., Securities Regulation: Cases and Analysis. 6th ed., Foundation Press, 2024.

Additional Resources

  • Choi, Stephen, and Pritchard, A.C., Securities Regulation: Cases and Analysis. 6th ed., Foundation Press, 2024.
  • Lipton, Ann, NVIDIA, Business Law Prof Blog (16 August, 2024).
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