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United States v. Clintwood Elkhorn Mining Co.

Issues

Must a taxpayer seek repayment and interest of unconstitutionally levied taxes only through IRS Tax Code administrative remedies, or may a taxpayer alternatively bring claims for damages and interest under the Tucker Act, which applies a less restrictive statute of limitations?

 

The Clintwood Elkhorn Mining Company sought to recover export tax payments after a federal court found the 1978 tax unconstitutional. Clintwood filed timely administrative refund claims under the IRS Tax Code within its three-year statute of limitations, and received repayments with interest for 1997 to 1999. However, Clintwood also filed an Export Clause damages claim for tax payments from 1994 to 1996 under the Tucker Act, which has a longer six-year statute of limitations. The government argued that the Tax Code provides the exclusive remedy for such refunds, while Clintwood argued that the Tucker Act alternative best remedies the government's unconstitutional taxation. The Court of Federal Claims found that Clintwood was entitled to receive damages, but not interest, under the Tucker Act. On appeal, the Federal Circuit awarded Clintwood both damages and interest for its 1994 to 1996 payments. The Supreme Court will determine whether Clintwood can file claims for repayment of unconstitutional taxes under the Tucker Act, and whether these alternative claims include interest awards. In addition to affecting the outcome of similar pending cases, the Court's decision will likely affect all taxpayers by determining the amount of reimbursement for taxes later found to be unconstitutional.

Questions as Framed for the Court by the Parties

Whether a taxpayer who would have been entitled to file a tax refund action in federal court to seek a refund of taxes (and interest thereon), but who failed to satisfy a statutory prerequisite to such an action (namely, the filing of a timely administrative refund claim) and is therefore barred from bringing such an action, may obtain a refund, and interest thereon, through an action directly under the Constitution pursuant to the Tucker Act, 28 U.S.C. 1491(a)?

In 1978, Congress passed a law taxing coal exports from United States mines. Clintwood Elkhorn Mining Company v. United States, 473 F.3d 1373, 1374 (Fed. Cir. 2007); 26 U.S.C.

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United States v. Bryant

Issues

Can the Government constitutionally rely on tribal court convictions that fail to satisfy the Sixth Amendment for purposes of proving the predicate offense requirement under 18 U.S.C. 117(a)?

 

This case provides the Supreme Court with the opportunity to determine whether the United States Government ("Government") can use uncounseled tribal court convictions to satisfy the predicate offense requirement outlined in 18 U.S.C. § 117(a). Section 117(a) is a domestic assault statute under which the Government may prosecute a person who has committed sexual assault within the U.S. or Indian country and who has already been twice convicted in State, Federal, or Indian court, of assault against a spouse or intimate partner. The Government argues that it may use Bryant’s prior convictions in his § 117 prosecution because the convictions did not violate the U.S. Constitution but were instead obtained on tribal lands where the Constitution is inapplicable. The Government further argues that using the convictions would not violate due process because the statute passes the rational-basis standard of review and is consistent with the principles of comity. Bryant counters, arguing that the Court’s precedent establishes a bright-line rule that invalidates convictions obtained in a manner that violates the Constitution, including Bryant’s convictions here, and that the Government’s reading of Court precedent is overly broad. Bryant further contends that allowing these convictions would lead to either admittance of an abundance of suspect convictions or a complex process requiring courts to determine the validity of each conviction. The Supreme Court’s resolution of this case will significantly impact the validity of tribal court judgments for purposes of predicate-offense crimes as well as the ability of prosecutors to prevent domestic abuse crimes in Indian Country.

Questions as Framed for the Court by the Parties

Section 117(a) of Title 18 of the United States Code makes it a federal crime for any person to “commit[] a domestic assault within the special maritime and terri-torial jurisdiction of the United States or Indian coun-try” if the person “has a final conviction on at least 2 separate prior occasions in Federal, State, or Indian tribal court proceedings for” enumerated domestic-violence offenses. 18 U.S.C. 117(a) (Supp. II 2014). The question presented is:

Does the reliance on valid, uncounseled tribal-court misdemeanor convictions to prove Section 117(a)’s predicate-offense element violate the Constitution?

In 2011, Michael Bryant, Jr. was charged with violating 18 U.S.C. § 117(a), which involves the offense of domestic assault by a habitual offender. See United States v. Bryant, 769 F.3d 671, 673–74 (9th Cir. 2014); 18 U.S.C.

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United States v. Bormes

Issues

Whether the Little Tucker Act enables plaintiffs to sue the United States for damages arising from violations of the Fair Credit Reporting Act.

 

Respondent James Bormes used the U.S. government’s online pay system to pay for a lawsuit that he had filed electronically. Following the transaction, the website displayed the last four digits of his credit card and the card’s expiration date. Bormes then sued the government, alleging that it had violated the Fair Credit Reporting Act ("FCRA") by displaying the expiration date. The United States argued that it had sovereign immunity with respect to claims under the FCRA because the Act did not explicitly apply to the U.S. government. When Bormes countered that he could sue the government under the Little Tucker Act, which provides a remedy for those with claims against the government of less than $10,000, the government contended that the Little Tucker Act applied only in situations where parties could not otherwise recover. In deciding this case, the Supreme Court must first determine the scope of the Tucker Acts' waiver of the United States’ sovereign immunity regarding claims brought under the Little Tucker Act for suits based on violations of the FCRA. As the country’s largest employer, creditor, and lender, the U.S. government could see a massive increase in litigation and potential liability as a result of this decision. Additionally, the Supreme Court may address how explicit Congress must act in order to exempt the federal government from liability.

Questions as Framed for the Court by the Parties

Whether the Little Tucker Act, 28 U.S.C. 1346(a)(2), waives the sovereign immunity of the United States with respect to damages actions for violations of the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.

In October 2000, the United States launched pay.gov, an online billing and payment processing service that enables consumers to use credit and debit cards to make payments to numerous government agencies. See Bormes v. United States, 638 F. Supp. 2d 958, 959 (N.D. Ill. 2009) vacated, 626 F.3d 575 (Fed. Cir. 2010). On August 9, 2008, James Bormes, an attorney, used this system to pay for a lawsuit electronically filed in the U.S.

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United States v. Alvarez

Issues

Under the First Amendment, can the federal government criminalize falsely claiming to have received a military award?

 

Respondent Xavier Alvarez, an elected member of the Three Valleys Water District, lied about receiving a Congressional Medal of Honor during a board meeting. His lie violated the Stolen Valor Act, which Congress enacted to preserve the value of military awards, and he was criminally convicted and sentenced to probation. Alvarez challenged the facial constitutionality of the Act under the First Amendment, and prevailed on appeal. The United States argues that a “breathing space” test should apply because the Act only limits knowingly false factual statements, and that under this test the Act does not violate the First Amendment. Alvarez counters that strict scrutiny should apply because the Act imposes a content-based restriction, and under strict scrutiny, the Act is an unconstitutional restriction of free speech. The ruling in this case may affect the value of military awards, as well as the legal treatment of other false representations.

Questions as Framed for the Court by the Parties

Section 704(b) of Title 18, United States Code, makes it a crime when anyone "falsely represents himself or herself, * * * verbally or in writing, to have been awarded any decoration or medal authorized by Congress for the Armed Forces of the United States."

The question presented is whether 18 U.S.C. 704(b) is facially invalid under the Free Speech Clause of the First Amendment.

In 2006, Congress enacted the Stolen Valor Act, 18 U.S.C. § 704(b), to prohibit people from falsely representing that they have been awarded a medal from the United States Armed ServicesSee U.S. v. Alvarez617 F.3d 1198, 1200 (9th Cir.

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United Haulers Assn., Inc. v. Oneida-Herkimer Solid Waste Management Authority

Issues

1. Does a local ordinance that directs solid waste to a publicly owned facility discriminate against interstate commerce in the same way as an ordinance that directs solid waste to a private facility?

2. If the ordinance does not discriminate, does the ordinance place a burden on interstate commerce that is greater than its benefit to the local community?

 

Solid waste processing has been a contentious issue since the 1980s when local governments were implicated in environmental lawsuits regarding solid waste disposal. Local governments tried to take control of the issue, but found that they faced commerce clause issues when they tried to protect their local facilities by passing ordinances to ensure enough tipping fees through flow control ordinances. This case represents the latest attempt by local governments to protect local waste processing facilities by requiring that local solid waste be directed to the publicly owned facility. In a key case, C & A Carbone, Inc. v. Town of Clarkstown, New York, 511 U.S. 383, 386 (1994), the Supreme Court struck down an ordinance similar to the one at issue in this case because it was discriminatory to other waste processing facilities and placed a burden on interstate commerce. In this case, the Second Circuit ruled that because the ordinance at issue favored a public facility rather than a private facility as in Carbone, it passed the discrimination test. The Court also held that it passed a balancing test whereby the court balances the local interest and the burden on interstate commerce. At stake in this case are the local governments' interests in sustaining environmentally sound local processing plants that represent significant sunk cost versus interstate waste hauling and out of state processing plants hoping to sustain their businesses.

Questions as Framed for the Court by the Parties

This Court held in C & A Carbone, Inc. v. Town of Clarkstown, 511 U.S. 383, 386 (1994), that “a so-called flow control ordinance, which require[d] all solid waste to be processed at a designated transfer station before leaving the municipality,' discriminated against interstate commerce and was invalid under the Commerce Clause because it “depriv[ed] competitors, including out-of-state firms, of access to a local market.” This case presents two questions, the first of which is the subject of an acknowledged circuit conflict:

1. Whether the virtually per se prohibition against “hoard[ing] solid waste” (Id. at 392) recognized in Carbone is inapplicable when the “preferred processing–facility” (ibid.) is owned by a public entity.

2. Whether a flow-control ordinance that requires delivery of all solid waste to a publicly owned local facility and thus prohibits its exportation imposes so “insubstantial” a burden on interstate commerce that the provision satisfies the Commerce Clause if it serves even a “minimal” local benefit.

In 1988, Oneida and Herkimer Counties (“the Counties”), in upstate New York, formed the Oneida and Herkimer Solid Waste Management Authority (“The Authority”). Brief for Petitioners at 3.

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Union Pacific Railroad Co. v. Brotherhood of Locomotive

Issues

  1. Are final arbitration awards determined by the National Railroad Adjustment Board subject to review for violations of due process?
  2. Was the National Railroad Board applying a “retroactive” interpretation of the procedural requirements in its arbitration proceedings by dismissing a complaint because of untimely submission of evidence of prior conferencing between the parties?

 

Five railroad employees filed claims through their union, the Brotherhood of Locomotive Engineers and Trainmen (“Brotherhood”), contesting disciplinary charges imposed by the Union Pacific Railroad (“Railroad”). The National Railroad Adjustment Board dismissed the case for lack of jurisdiction because the Brotherhood had failed to submit written evidence that the parties had met in conference. The District Court affirmed the Board’s decision. However, the Seventh Circuit Court of Appeals reversed in favor of the Brotherhood. The Seventh Circuit found that the due process rights of the Brotherhood were denied, because it was not clear when and how evidence of conferencing should be presented, and dismissal for reasons that were not clear at the time of filing functioned as a denial of its due process rights. The Railroad subsequently appealed this decision to the Supreme Court arguing that because submission of evidence is solely within the arbitrator’s discretion, the Board’s award should be final and binding. In granting certiorari, the Supreme Court’s decision will test the scope of the federal government’s power to review arbitration disputes between private parties. The Court’s decision will also affect future labor disputes and collective bargaining agreements in the railroad industry.

Questions as Framed for the Court by the Parties

The Railway Labor Act (“RLA”), 45 U.S.C. §§151 et seq., sets forth a comprehensive framework to resolve labor disputes in the railroad industry through binding arbitration before the National Railroad Adjustment Board (“the Board”). The statute provides that the Board's judgment “shall be conclusive . . . except . . . for”: (1) “failure . . . to comply” with the Act, (2) “failure . . . to conform or confine” its order “to matters within . . . the [Board’s] jurisdiction,” and (3) “fraud or corruption” by a Board member. 45 U.S.C. §153 First (q). This case involves the Board’s denial of employee grievance claims for failure to comply with its rules governing proof that the dispute had been submitted to a “conference” between the parties. 45 U.S.C. §152 Second. The Seventh Circuit held that the award must be set aside because the Board violated due process through retroactive recognition of a supposedly “new rule.” The questions presented are: 

  1. Whether the Seventh Circuit erroneously held, in square conflict with decisions of the Third, Sixth, Tenth, and Eleventh Circuits, that the RLA includes a fourth, implied exception that authorizes courts to set aside final arbitration awards for alleged violations of due process.
  2. Whether the Seventh Circuit erroneously held that the Board adopted a “new,” retroactive interpretation of the standards governing its proceedings in violation of due process.

For employees in the railroad industry, the Railway Labor Act (“RLA”) governs the resolution of labor disputes between rail carriers and unions regarding their collective bargaining agreements. 45 U.S.C.

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Additional Resources

·      Wex: Law about Collective Bargaining

·      Wex: Law about Labor Law

·      Workplace Prof Blog, Law Professor Blogs Network: Labor Law

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U.S. Airways v. McCutchen

Issues

Does ERISA Section 502(a)(3) allow courts to apply equitable principles to refuse to order a participant to reimburse the plan for medical coverage where the contract provides the plan with an absolute right to full reimbursement?

 

Following a serious car accident, James McCutchen received $66,866 to pay for his medical expenses from a benefit plan administered by his employer, US Airways. The Plan included a provision requiring beneficiaries to reimburse US Airways for claims “out of any monies recovered from a third party.” After receiving the Plan benefits, McCutchen hired counsel and sued third parties who were involved in accident, recovering a $10,000 settlement from one of the drivers involved in the accident and $100,000 in underinsured motorist coverage. US Airways subsequently sued McCutchen to recover the money they initially paid him by seeking “appropriate equitable relief” under ERISA Section 502(a)(3). US Airways maintains that the term “appropriate” in Section 502(a)(3) refers to the requirement that the type of “equitable relief” a plaintiff seeks be suitable under the circumstances to enforce the terms of the benefit plan and does not allow courts to use equity to rewrite contractual terms. McCutchen argues that courts have the authority to determine what constitutes “appropriate equitable relief” within the meaning of ERISA Section 502(a)(3) and, thus, are not required to enforce express plan terms. Supporters of the lower court’s decision argue that allowing courts to provide equitable relief would increase fairness and encourage beneficiaries to seek recovery from third parties. Opponents counter that affirming the lower court’s decision will increase ERISA litigation and threaten the financial viability of employee health benefit plans.

Questions as Framed for the Court by the Parties

Whether the Third Circuit correctly held—in conflict with the Fifth, Seventh, Eighth, Eleventh, and D.C. Circuits—that ERISA Section 502(a)(3) authorizes courts to use equitable principles to rewrite contractual language and refuse to order participants to reimburse their plan for benefits paid, even where the plan’s terms give it an absolute right to full reimbursement.

Early in 2007, a young driver lost control of her car and crashed into James McCutchen’s vehicle. US Airways, Inc. v. McCutchen, 663 F.3d 671, 673 (3d Cir.

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Acknowledgments

The authors would like to thank Professor Emily Sherwin for her insights into this case.

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Tyson Foods, Inc. v. Bouaphakeo, et al.

Issues

May a class be certified under Federal Rule of Civil Procedure 23(b)(3) and collective action taken under the Fair Labor Standards Act when individual employee class members differ as to the amount of compensable time worked? Additionally, is the use of statistical analysis to prove liability and damages proper in that situation?

 

In this case, the Supreme Court will determine whether class certification or collective action may proceed under Federal Rule of Civil Procedure 23(b)(3) or the Fair Labor Standards Act (FLSA), when liability determinations and damage calculations will turn on statistical analysis that assumes all class members, regardless of actual differences between them, are identical to a statistical average. See Petition for Writ of CertiorariTyson Foods, Inc. v. Peg Bouaphakeo, et al., No. 14–1146, at i.  The Court will also consider whether Rule 23(b)(3) or the FLSA permits class or collective action when the putative class contains uninjured members without legal rights to damages. See id. Tyson argues that the use of statistical averages masks differences between class members that not only create individual questions of law and fact, but also result in uninjured class members being awarded damages. See Brief for Petitioner, Tyson Foods, Inc. at 18-19. Additionally, Tyson argues that the use of statistical averages also prevents it from raising defenses that it would otherwise be entitled to employ. See id. at 33. But Bouaphakeo claims that Tyson’s failure to keep statutorily required records of the amount of time that employees worked necessitated the use of statistical analysis, and such use was necessary and proper to prove liability and damages through a just and reasonable inference. See Brief for Respondents, Peg Bouaphakeo, et al. at 33-35. Bouaphakeo further contends that uninjured class members were not awarded damages, and that Tyson was not prevented from raising defenses. Id. at 57-60. The Court’s decision may affect litigation costs for businesses, economic growth, and the use of statistical analysis in class action proceedings. See Brief for Amici Curiae Chamber of Commerce of the United States of America et al. (“Chamber”), in Support of Petitioner at 20–21, 23; Brief of Amicus Curiae American Independent Business Alliance, in Support of Respondent at 3–6; Brief of Amici Curiae Civil Procedure Professors, in Support of Respondents at 9–11.

Questions as Framed for the Court by the Parties

1. Whether differences among individual class members may be ignored and a class action certified under Federal Rule of Civil Procedure 23(b)(3), or a collective action certified under the Fair Labor Standards Act, where liability and damages will be determined with statistical techniques that presume all class members are identical to the average observed in a sample.

2. Whether a class action may be certified or maintained under Rule 23(b)(3), or a collective action certified or maintained under the Fair Labor Standards Act, when the class contains hundreds of members who were not injured and have no legal right to any damages.

Petitioner Tyson Foods, Inc. (“Tyson”) operates and manages meat-processing facilities across the country, including a facility in Storm Lake, Iowa. See Bouaphakeo, et al. v. Tyson Foods, Inc.765 F.3d 791, 794 (8th Cir.

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Turner v. Rogers

Issues

1. Does an indigent defendant have the right to appointed counsel at a civil contempt proceeding that could result in incarceration?

2. Does the Supreme Court have jurisdiction to review the South Carolina Supreme Court's decision that such a defendant does not have a right to appointed counsel?

 

By the beginning of 2008, Michael Turner was six thousand dollars behind in his child support payments. A South Carolina family court eventually ordered Turner to appear to explain his failure to make any payments for the past year and a half. Turner alleged his personal and physical problems rendered him unable to pay. The family court imposed civil contempt sanctions as a result of Turner’s failure to comply with the earlier court order to pay child support. Turner appealed his twelve-month sentence, arguing that because there was a possibility that he would face imprisonment, the court should have provided him with counsel. The Supreme Court’s decision will likely determine whether indigent defendants in civil cases are entitled to representation where there is a possibility of incarceration, although the Court could possibly determine that it does not have jurisdiction to hear the case.

Questions as Framed for the Court by the Parties

1. Whether the Supreme Court of South Carolina erred in holding—in conflict with twenty-two federal courts of appeals and state courts of last resort—that an indigent defendant has no constitutional right to appointed counsel at a civil contempt proceeding that results in his incarceration.

2. Whether this Court has jurisdiction to review the decision of the Supreme Court of South Carolina

In January 2008, a South Carolina family court ordered Petitioner Michael Turner to appear in court to explain his failure to pay six thousand dollars in child support. See Price v. Turner, 691 S.E.2d 470, 471 (S.C.

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Additional Resources

· Cornell Journal of Law and Public Policy, Elizabeth Patterson: Civil Contempt and the Indigent Child Support Obligor: the Silent Return of Debtor's Prison

· Findlaw: Civil Contempt of Court

· Department of Health and Human Services: Handbook on Child Support Enforcement

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Travelers Casualty & Surety Co. v. Pacific Gas & Electric Co.

Issues

Can a litigant recover attorney fees pursuant to a private contract when the issues litigated involve matter exclusively governed by federal bankruptcy law?

 

Travelers Casualty & Surety Company of America (“Travelers”) is appealing a Ninth Circuit decision denying it attorney fees for claims governed entirely by federal bankruptcy law. Travelers maintains that it is entitled to the indemnity rights it negotiated for under its private contract with Pacific Gas and Electric (“Pacific Gas”). Travelers relies on precedent to conclude that the substantive rights under a private contract are governed by state law and therefore the Ninth Circuit decision is wrongly decided and should be reversed. Pacific Gas argues that the Ninth Circuit correctly concluded in prior cases that attorneys’ fees pursuant to a private contract may be granted in cases where the rights are governed by state law, but not when they are peculiar to federal bankruptcy law. The Ninth Circuit reasoned that state law cannot govern federal issues such as indemnity of attorney fees for claims resulting from objections to debt restructuring plans and disclosure statements implemented by a company under Chapter 11 bankruptcy. The Ninth Circuit is concerned that a decision in support of non-prevailing creditors whose conditional rights have not been triggered or impaired in cases where the debtor has not defaulted in bankruptcy cases would flood the court dockets with these premature claims. The Supreme Court decision will resolve whether private parties can contract for rights which have not been explicitly granted by federal bankruptcy law. The decision will impact the legal protective strategies that creditors use to shield their investments from debtors who have filed for bankruptcy.

Questions as Framed for the Court by the Parties

Whether a litigant may recover attorneys’ fees under a contract or state statute where the issues litigated involve matters of federal bankruptcy law?

This matter arises out of a Chapter 11 bankruptcy case initiated by Pacific Gas & Electric Company (“Pacific Gas”), Respondent. Before Respondent commenced its bankruptcy case, Travelers Casualty & Surety Company (“Travelers”), Petitioner, issued surety bonds to various third parties on Pacific Gas’s behalf. One of these bonds was a $100 million surety bond issued to the California Department of Industrial Relations. This bond guarantees Pacific Gas’ payment of state workers compensation benefits to injured employees.

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Law about... Bankruptcy

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