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Richlin Security Service Co. v. Chertoff

Issues

Whether prevailing parties in actions brought against the United States under the Equal Access to Justice Act are entitled to receive reimbursement for paralegal services at their market value, or only at the cost to legal counsel for whom the services were provided.

 

Richlin Security Service Company entered into two contracts with the Immigration and Naturalization Service, now part of the Department of Homeland Security, to provide security guard services for detainees being held at the Los Angeles International Airport. Due to a mutual mistake, Richlin's employees were misclassified as "Guard I" instead of "Guard II" in the contracts, which resulted in their underpayment. Richlin litigated this case four times before the Department of Transportation Contract Appeals Board, which awarded Richlin payment for worker's compensation premiums, payroll taxes, and wages. Richlin then applied pursuant to the Equal Access to Justice Act for reimbursement of attorney fees, expenses and costs associated with the underlying litigation. Although Richlin was fully compensated for attorney's fees, the Board only awarded Richlin reimbursement of paralegal services at cost rather than the amount billed, resulting in a $40,000 deficiency in recovery. Richlin appealed the decision to the United States Court of Appeals for the Federal Circuit, which affirmed the Board's decision. Richlin argues that paralegal services should be reimbursed under "attorney's fees" because paralegals perform substantive work which contributes to attorney work product. The United States contends that Congress intended for paralegal services to be considered "expenses" under the EAJA, which are reimbursed at cost. The outcome of this case will impact citizens and organizations that rely on the EAJA to bring claims against the government for vindication of rights.

Questions as Framed for the Court by the Parties

Under the Equal Access to Justice Act (EAJA), 5 U.S.C. § 504(a)(l) and 28 U.S.C. § 2412(d)(1)(A), may a prevailing party be awarded attorney fees for paralegal services at the market rate for such services, as four circuits have held, or does EAJA limit reimbursement for paralegal services to cost only, as the Federal Circuit panel majority below held?

In 1990 and 1991, Richlin Security Service Company entered into fixed-price contracts with the Immigration and Naturalization Service to provide security guard services for detainees at the Los Angeles International Airport. Richlin Sec. Svc. Co. v. Chertoff, 472 F.3d 1370, 1371-72 (Fed. Cir. 2006).

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Rice v. Collins

Issues

Does the deference to a trial judge’s findings, embodied in the habeas corpus statute, extend to situations where the fact finder did not directly observe an incident of allegedly inappropriate conduct by a potential juror but merely accepted the prosecutor’s account of events? Can the Federal court consider such actions by the state court trial judge as unreasonable even where the trial judge’s ultimate finding nevertheless falls within the acceptable range of what a rational court could have found given the evidence presented before it?

 

The Ninth Circuit recently granted criminal defendant Steven Martell Collins’ habeas corpus petition on the grounds that the prosecution unconstitutionally used a peremptory challenge to strike a potential juror on account of her race. Although the prosecutor convinced the trial judge that the dismissal was not racially motivated and was therefore acceptable, the Ninth Circuit found the trial judge’s decision to be unreasonable despite the fact that the decision was affirmed on numerous occasions throughout the state court system and at the Federal District Court. The Ninth Circuit held that, despite the statutory deference granted to the original fact-finder by 28 U.S.C. § 2254, such deference was inappropriate here. The Supreme Court will likely interpret § 2254 to determine whether the Ninth Circuit exceeded its authority when it held that the trial judge was unreasonable in accepting the prosecutor’s proffered reasons for dismissing the juror.

Questions as Framed for the Court by the Parties

Does 28 U.S.C. § 2254 allow a federal habeas corpus court to reject the presumption of correctness for state fact finding, and condemn a state-court adjudication as an unreasonable determination of the facts, where a rational fact finder could have determined the facts as did the state court?

The below facts are all derived from the amended opinion of the Ninth Circuit Court of Appeals. Collins v. Rice, 365 F.3d 667, 673 (9th Cir. 2004). During the process of jury selection for Collins’s trial, the prosecutor used peremptory challenges to remove two African American women from the jury. Id. at 674.

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Reynolds v. United States

Issues

Whether a sex offender convicted before the enactment of SORNA can challenge the subsequent Interim Rule issued by the Attorney General.

 

Billy Joe Reynolds, a registered sex offender, was convicted for failing to update his registration upon moving from Missouri to Pennsylvania. Under the newly enacted Sex Offender Registration and Notification Act (“SORNA”), sex offenders are required to update the federal registry within three days of a change of residence. An Interim Rule issued by the Attorney General applied the statute retroactively to all sex offenders convicted before SORNA’s enactment, including Reynolds. Reynolds challenged the legality of the Interim Rule but the circuit court dismissed his case for lack of standing. In the current suit, Reynolds argues that SORNA’s registration requirements are not applicable to individuals with pre-SORNA convictions. Reynolds adds that the Interim Rule made SORNA’s registration requirements applicable to him, thus giving him standing to challenge the Rule. The Supreme Court's decision will determine whether pre-SORNA sex offenders can state a claim against the Interim Rule, thus potentially delaying the government’s efforts in creating an effective national sex offender registry system. The decision may also prevent the government from issuing harsh new registration requirements without notice to individuals in Reynolds’s situation.

Questions as Framed for the Court by the Parties

Does Reynolds have standing under the plain reading of the SORNA statute to raise claims concerning the Attorney General’s Interim Rule and is review by the Supreme Court needed to resolve the circuit conflict?

In 1994, Congress passed the Jacob Wetterling Crimes Against Children and Sexually Violent Offender Registration Act (“Wetterling Act”), which encouraged states (via conditioned federal funding) to adopt comprehensive sex offender registration laws that met certain minimum standards. See Smith v. Doe, 538 U.S.

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Rent-A-Center, West v. Jackson

Issues

Can a party be bound by an arbitration clause to arbitrate, rather than litigate, the validity of the arbitration clause?

 

Respondent Antonio Jackson was an employee of Petitioner Rent-A-Center West, Inc. (“RAC”). Jackson sued RAC, alleging racial discrimination. Because Jackson had signed an arbitration clause as part of his employment contract, RAC asked the court to refer the case to arbitration. Jackson, however, argued the employment contract was unconscionable and therefore invalid. The arbitration clause contains a provision that only an arbitrator can decide validity. Jackson argues that a court must decide the validity of the arbitration clause before requiring arbitration. RAC argues that the parties agreed in the contract to submit this question to arbitration. The Ninth Circuit held that, when a party attacks the validity of an arbitration clause because of unconscionability, a court must decide its validity. The Supreme Court’s decision will influence how arbitration clauses will function in the future and the degree of court involvement in arbitration agreements.

Questions as Framed for the Court by the Parties

Is the district court required in all cases to determine claims that an arbitration agreement subject to the Federal Arbitration Act ("FAA") is unconscionable, even when the parties to the contract have clearly and unmistakably assigned this "gateway" issue to the arbitrator for decision?

Respondent Antonio Jackson was an employee of Petitioner Rent-A-Center West, Inc. (“RAC”). See Jackson v. Rent-A-Center West, Inc., 581 F.3d 912, 914 (9th Cir. 2009). While employed by RAC, Jackson was repeatedly passed over for promotion until he complained to his store manager and human resources. See Jackson v.

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Renico v. Lett

Issues

Does a trial court judge’s decision to declare a mistrial after the jury foreman stated that the jurors were not going to be able to reach a unanimous verdict violate double jeopardy?

 

Reginald Lett was convicted of second-degree murder in a Michigan state court in his second trial for the same offense. In his first trial, the judge determined that the jury was deadlocked and declared it a mistrial. Lett then filed a petition for a writ of habeas corpus in the Federal District Court for the Eastern District of Michigan. His petition was granted. On appeal, the Sixth Circuit Court of Appeals affirmed the district court’s ruling on the basis that Lett’s Fifth Amendment right to be free from Double Jeopardy had been violated because the trial court had not used “sound discretion” in finding a “manifest necessity” to declare a mistrial and terminate the ongoing proceedings. This case presents the Supreme Court with the opportunity to clearly articulate what state courts must do before declaring a mistrial to avoid running afoul of the Fifth Amendment.

Questions as Framed for the Court by the Parties

Whether the United States Court of Appeals for the Sixth Circuit, in a habeas case, erred in holding that the Michigan Supreme Court failed to apply clearly established Supreme Court precedent under 28 U.S.C. § 2254 in denying relief on double jeopardy grounds in the circumstance where the State trial court declared a mistrial after the foreperson said that the jury was not going to be able to reach a verdict.

Reginald Lett was convicted for the shooting death of Adesoji Latona at a liquor store in Detroit, Michigan on August 29, 1996. See Lett v. Renico, 507 F.Supp.2d 777, 779 (E.D. Mich.

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Additional Resources

·      Wex: Habeas Corpus

·      Wex: Double Jeopardy

·      Wex: Fifth Amendment

·      CRS Annotated Constitution: Reprosecution Following Mistrial

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Reichle v. Howards

Issues

1. Whether one may make a First Amendment retaliatory arrest claim against one’s arresting officers if there was probable cause for one’s arrest.

2. Whether the court below erred by denying qualified and absolute immunity to Secret Service agents when the arrest they performed did not violate the Fourth Amendment.

 

Respondent Steven Howards criticized and touched Vice President Cheney while the Vice President was on a meet-and-greet at a local shopping center. Petitioners Virgil Reichle and Dan Doyle, two Secret Service Agents, confronted Howards, and subsequently arrested him for assault. However, the state prosecutor dropped the charges against Howards, who then brought a First Amendment retaliatory arrest claim against the Agents. The district court denied the Agents’ motion for summary judgment, ruling that the Agents could not benefit from qualified immunity under the circumstances. The Tenth Circuit affirmed. The Supreme Court must now resolve whether one may raise a First Amendment retaliatory arrest claim when there was probable cause for one’s arrest. A decision for Howards may deter law enforcement officers from making arrests for fear of retaliatory arrest claims, while a decision for the Agents may enable officers to more easily target and punish speech which they oppose.

Questions as Framed for the Court by the Parties

1. Whether, as the Tenth Circuit siding with the Ninth Circuit held here, the existence of probable cause to make an arrest does not bar a First Amendment retaliatory arrest claim; or whether, as the Second, Sixth, Eighth, and Eleventh Circuits have held, probable cause bars such a claim, including under Hartman v. Moore, 547 U.S. 250 (2006).

2. Whether the Tenth Circuit erred by denying qualified and absolute immunity to petitioners where probable cause existed for respondent’s arrest, the arrest comported with the Fourth Amendment, it was not (and is not) clearly established that Hartman does not apply to First Amendment retaliatory arrest claims, and the denial of immunity threatens to interfere with the split-second, life-or-death decisions of Secret Service agents protecting the President and Vice President.

In 2006, Respondent Steven Howards visited the Beaver Creek Mall in Beaver Creek, Colorado to bring his older son to a piano recital. See Howards v. McLaughlin, 634 F.3d 1131, 1135 (10th Cir.

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Rehberg v. Paulk

Issues

Whether a government official who acts as a “complaining witness” in grand jury proceedings is entitled to absolute immunity from a Section 1983 claim after presenting false testimony.

 

Relying on false testimony, three grand juries indicted Petitioner Charles Rehberg for varying charges. After the indictments were dismissed, Rehberg brought a private suit under 42 U.S.C. § 1983 against several parties, including Respondent James Paulk, who had testified before all three grand juries. The United States Court of Appeals for the Eleventh Circuit ruled that Paulk, an investigator in the district attorney’s office, was entitled to absolute immunity for his testimony. The Supreme Court granted certiorari in this case to determine whether a government official who acts as a “complaining witness” is entitled to absolute immunity under Section 1983. Rehberg argues that complaining witnesses were never given absolute immunity under common law, and that a lesser grant of qualified immunity is more appropriate under the circumstances. Paulk, on the other hand, contends that a decision to withhold absolute immunity will discourage public officials from giving complete and objective testimony before grand juries.

Questions as Framed for the Court by the Parties

In Briscoe v. LaHue, 460 U.S. 325 (1983), this Court held that law enforcement officials enjoy absolute immunity from civil liability under 42 U.S.C. § 1983 for perjured testimony that they provide at trial. But in Malley v. Briggs, 475 U.S. 335 (1986), this Court held that law enforcement officials are not entitled to absolute immunity when they act as “complaining witnesses” to initiate a criminal prosecution by submitting a legally invalid arrest warrant. The federal courts of appeals have since divided about how Briscoe and Malley apply when government officials act as “complaining witnesses” by testifying before a grand jury or at another judicial proceeding. The question presented in this case is: 

Whether a government official who acts as a “complaining witness” by presenting perjured testimony against an innocent citizen is entitled to absolute immunity from a Section 1983 claim for civil damages.

Petitioner Charles Rehberg sent anonymous faxes parodying and criticizing the Phoebe Putney Memorial Hospital in Albany, Georgia, seeking to raise public awareness about the hospital’s unethical billing and accounting practices. See Rehberg v. Paulk, 611 F.3d 828, 835 (11th Cir. 2010).

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Reed Elsevier v. Muchnick

Issues

Whether the registration requirement contained in § 411(a) of the Copyright Act is jurisdictional, denying district courts jurisdiction over claims arising from the infringement of unregistered copyrights.

 

Freelance writers, led by Letty Cotton Pogrebin, brought a class action lawsuit against publishers, led by Reed Elsevier, Inc., for copyright infringement, claiming that the publishers electronically reproduced their works without authorization. The majority of the claims in the class related to alleged infringements of unregistered copyrights. With the approval of the District Court, the parties settled the lawsuit. The Second Circuit held, pursuant to 17 U.S.C. § 411(a), that the District Court lacked subject matter jurisdiction to certify a class or to approve a settlement with respect to claims arising from unregistered copyrights. The Supreme Court’s interpretation of § 411(a) will determine whether claims relating to unregistered copyrights can be settled in class actions along with claims arising from registered work. An affirmation of the Second Circuit’s opinion may make settlements more difficult.

Questions as Framed for the Court by the Parties

Does 17 U.S.C. § 411(a) restrict the subject matter jurisdiction of the federal courts over copyright infringement actions?

Petitioners, Reed Elsevier, Inc., et al. (“Reed Elsevier”), are publishers of electronic content, such as the New York Times Co. and archival database operators, such LexisNexisSee Brief for Petitioners, Reed Elsevier Inc., et al.

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Additional Resources

·      Civil Procedure and Federal Courts Blog, Law Professor Blogs Network: Case of Interest--Reed Elsevier v. Muchnick

·      NY Times: Supreme Court to Revisit a Case on Breach of Copyright

·      Wired: Supreme Court to Hear Freelance Writers' Settlement

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Ransom v. MBNA America Bank, N.A.

Issues

Whether an above-median debtor may claim a vehicle ownership cost deduction for vehicles the debtor owns outright.

 

This case reflects a lack of certainty in the bankruptcy code regarding the proper treatment of the vehicle ownership deduction when calculating an above-median Chapter 13 debtor’s disposable income. Courts are split on whether the deduction can be taken where the debtor owns a vehicle in full and is not responsible for monthly payments on the vehicle. Jason Ransom filed for bankruptcy under Chapter 13 and claimed a vehicle ownership deduction based on his ownership of an automobile that he owned free and clear. The Ninth Circuit found that the vehicle ownership deduction was not permitted if there was no existing obligation on the vehicle. Ransom argues that the court misinterpreted the statute and failed to recognize that a plain reading of the statute supports the deduction. The Supreme Court’s decision will clarify the availability of the vehicle ownership deduction to Chapter 13 debtors who own their vehicles outright.​

Questions as Framed for the Court by the Parties

Whether, in calculating the debtor's "projected disposable income" during the plan period, the bankruptcy court may allow an ownership cost deduction for vehicles only if the debtor is actually making payments on the vehicles.

Jason Ransom ("Ransom") is a single man living in Nevada. See Ransom v. MBNA, 577 F.3d 1026, 1027 (9th Cir.

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Additional Resources

· Bankruptcy Case Blog, Tracy Keeton: A Fork in the Road: Courts Split on Transportation Ownership Deductions (Apr. 6, 2010)

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RadLAX Gateway Hotel v. Amalgamated Bank

Issues

Whether a bankrupt debtor under a Chapter 11 plan can sell collateral assets free and clear of liens and at the same time prohibit a secured creditor from using its credit to bid on the assets.

 

RadLAX Gateway Hotel, LLC and related entities obtained a secured $142 million loan in 2007 to construct the Radisson Hotel at Los Angeles International Airport. Substantially all of RadLAX’s assets were designated as collateral for this loan. However, still saddled with $120 million of debt, RadLAX filed for bankruptcy in August 2009. RadLAX proposed a Chapter 11 reorganization plan that called for an auction sale of all its assets, free and clear of liens. The plan prohibited secured lenders from credit bidding, i.e. using their loan amounts to offset the asset prices at the auction. Amalgamated Bank, representing the lender, objected to the plan, arguing that the plan violatedSection 1129(b)(2)(A)(ii) of the Bankruptcy Code. The bankruptcy court agreed and rejected RadLAX’s plan. The Seventh Circuit affirmed on appeal. The Supreme Court’s resolution of this case may affect the balance of power between debtors and secured creditors in bankruptcy proceedings.

Questions as Framed for the Court by the Parties

Whether a debtor may pursue a Chapter 11 plan that proposes to sell assets free of liens without allowing the secured creditor to credit bid, but instead providing it with the indubitable equivalent of its claim under Section 1129(b)(2)(A)(iii) of the Bankruptcy Code.

This case involves the interpretation of Section 1129(b)(2)(A) of the Bankruptcy Code (“the Code”). See 11 U.S.C.

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Additional Resources

Bloomberg Businessweek: RadLax, Madoff, AMR, MF Global, Hostess, Ambac: Bankruptcy (Mar. 15, 2012)

HotelNewsNow.com: Hotel Credit Bidding Draws Supreme Court’s Eye (Dec. 22, 2011)

New York Times DealBook: High Court Spotlight on Right to ‘Credit Bid’ (Dec. 14, 2011)

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