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Endrew F. v. Douglas County School District

Issues

Under the Individuals with Disabilities Education Act, what level of educational benefit must school districts provide children with disabilities to secure each child’s right to free appropriate public education?

This case will decide what unified standard public schools must provide students under the Individuals with Disabilities Education Act (“IDEA”). IDEA requires schools in receipt of federal funds to provide an Individualized Education Program (“IEP”) for each student with a disability. The IEP must comply with each student’s right to Free Appropriate Public Education (“FAPE”). Should the school district fail to comply, parents are permitted to enroll their child into private school and seek reimbursement from the school district. Endrew F. argued that the Douglas County School District did not provide Endrew, a child with autism, the appropriate level of educational care because Endrew did not make any meaningful progress with his IEP. The Douglas County School District responded that Endrew’s receipt of some educational benefit was sufficient to satisfy the FAPE standard, and thus not a violation of the IDEA. The Supreme Court will likely resolve the Circuit conflict between the “meaningful educational benefit” standard adopted by some courts of appeals and the “merely more than de minimis” educational benefit standard that the Tenth Circuit maintained.

Questions as Framed for the Court by the Parties

What is the level of educational benefit that school districts must confer on children with disabilities to provide them with the free appropriate public education guaranteed by the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq.? 

The Individuals with Disabilities Education Act ("IDEA") dictates that public schools must provide children with disabilities a Free Appropriate Public Education ("FAPE"). See 20 U.S.C.

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Erica P. John Fund v. Halliburton

Issues

Whether the Fifth Circuit’s ruling contradicts Supreme Court precedent and violates Federal Rule of Civil Procedure 23 by requiring securities-fraud plaintiffs to show loss causation at the class certification stage rather than at trial.

 

Halliburton is accused of making misstatements about its financial position regarding asbestos litigation, a merger, and  costs-overruns  on fixed price contracts. As those misstatements came to light or were corrected, Halliburton’s stock price dropped. The Erica P. John Fund asserts that these misstatements defrauded Halliburton’s investors and seeks class certification to recover investors' losses from Halliburton. The Court of Appeals for the Fifth Circuit held that in order to be certified as a class, investors must not only demonstrate elements common to the  class,  but must also prove that the fraud actually caused the drop in stock value. Halliburton asserts that this is necessary  because,  unless the fraud actually caused the loss, no presumption of reliance on the misstatement can arise, and therefore the plaintiffs have failed to make the case for certification as a class. The Erica P. John Fund argues that the Fifth Circuit’s holding contradicts the Federal Rules of Civil Procedure and Supreme Court  precedent,  and that requiring proof of loss causation undermines the values and goals of the reliance presumption. The Supreme Court’s  decision in this case  will affect the ability of investors to pursue private securities actions against companies who misstate their financial positions.

Questions as Framed for the Court by the Parties

1. Whether the Fifth Circuit correctly held, in direct conflict with the Second Circuit and district courts in seven other circuits and in conflict with the principles of Basic v. Levinson, 485 U.S. 224 (1988), that plaintiffs in securities fraud actions must satisfy not only the requirements set forth in Basic to trigger a rebuttable presumption of fraud on the market, but must also establish loss causation at class certification by a preponderance of admissible evidence without merits discovery.

2. Whether the Fifth Circuit improperly considered the merits of the underlying litigation, in violation of both Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (1974), and Federal Rule of Civil Procedure 23, when it held that a plaintiff must establish loss causation to invoke the fraud-on-the-market presumption even though reliance and loss causation are separate and distinct elements of security fraud actions and even though proof of loss causation is common to all class members.

In an action for securities fraud under Securities and Exchange Commission Rule 10b-5, a plaintiff must show (1) that he or she relied upon a defendant’s material misstatement or omission in buying or selling the security and (2) that the misstatement was a direct cause of the investor’s loss. See David M. Brodsky & Jeff G. Hammel, 

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Additional Resources

· Wex: Class Action

· Securities Docket: Second Circuit Reverses Class Certification in In re Salomon Credit Analyst Metromedia Litigation (Oct. 2, 2008)

· New York Law Journal, David M. Brodsky and Jeff G. Hammel: The Fraud on the Market Theory and Securities Fraud Claims (Oct. 24, 2003)

· New York Law Journal, Samuel H. Rudman: Oscar: Misinterpretation of Fraud-on-the-Market Theory (Jul. 17, 2009)

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Environmental Defense v. Duke Energy Corp.

Issues

Should the Fourth Circuit have heard this case when the Clean Air Act dictates that parties can only challenge CAA regulations in the D.C. Circuit? And is the EPA’s longstanding regulatory definition of “increase” unlawful if it is consistent with the CAA definition of “modification,” which governs the NSPS and PSD?

 

In 2000, the Environmental Protection Agency sued Duke Energy Corporation for making a number of upgrades to its power plants without filing for permits under the Prevention of Significant Deterioration (“PSD”) program. The PSD program, which was added to the Clean Air Act in 1977, regulates “major modifications” to existing power plants. Duke Energy first argues that the 1971 New Source Performance Standards (“NSPS”) provide a definition of “modification” that governs the PSD program; Duke then argues that the changes to its plants do not fall within the NSPS definition of “modification.” In 1980 the EPA promulgated regulations providing a more stringent definition of “modification,” and Environmental Defense, which has stepped in as a plaintiff in the case, maintains that this more stringent definition applies to the PSD. The Court of Appeals for the Fourth Circuit agreed with Duke Energy, holding that the NSPS definition of “modification” must be applied to the PSD program. The Supreme Court’s decision will affect how energy companies assess the costs of rebuilding or renovating older plants, and it could potentially lead environmentalists to push for more stringent standards for changes made to existing plants.

Questions as Framed for the Court by the Parties

Whether the Fourth Circuit's decision violated Section 307(b)of the Act, which provides that national Clean Air Act regulations are subject to challenge “only” in the D.C. Circuit by petition for review filed within 60 days of their promulgation, and “shall not be subject to judicial review” in enforcement proceedings, 42 U.S.C. 7607(b); and

Whether the Act's definition of “modification,” which turns on whether there is an “increase” in emissions and which applies to both the NSPS and PSD programs, rendered unlawful EPA’s longstanding regulatory test defining PSD “increases” by reference to actual, annual emissions.

In 1988, Duke Energy Corporation (“Duke”), which provides energy to customers in North and South Carolina, began the process of upgrading coal-fired generators in eight of its plants. Environmental Defense v. Duke Energy, 411 F.3d 539, 542 (4th Cir. 2005).

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Entergy Corp v. EPA; PSEG Fossil LLC v. Riverkeeper, Inc.

Issues

May the EPA perform a cost-benefit analysis to decide which technologies best minimize adverse environmental impacts on marine life stemming from cooling water intake structures?

 

Cooling water intake structures divert billions of gallons of water into coolant systems for industrial equipment and power generation. These systems can injure or kill billions of aquatic organisms, resulting in severe environmental impacts. Congress sought to remedy this problem through 33 U.S.C. §1326(b). The statute requires that “cooling water intake structures reflect the best technology available for minimizing adverse environmental impact.” The “best technology available” requirement is the heart of the dispute. In enforcing the statute, the Environmental Protection Agency (“EPA”) turned to a cost-benefit analysis. If the cost of a particular technology was not justified by a corresponding environmental benefit, the technology was not required. Environmental groups sued to require the EPA to employ a cost only analysis. This analysis requires the best technology a facility could afford, even if the environmental benefit generated was minimal. This case will affect the EPA’s method of regulating cooling water intake structures, potentially leading to greater costs for power plants and industry. Increased costs may disrupt the energy industry and potentially lead to greater costs for consumers.

Questions as Framed for the Court by the Parties

Whether Section 316(b) of the Clean Water Act, 33 U.S.C. 1326(b), authorizes the Environmental Protection Agency (EPA) to compare costs with benefits in determining the "best technology available for minimizing adverse environmental impact" at cooling water intake structures. The cases are consolidated and a total of one hour is allotted for oral argument.

Industry diverts billions of gallons of water a day into water-intake coolant systems in order to cool industrial equipment and also to generate power. See Riverkeeper, Inc. v. EPA, 358 F.3d 174, 181 (2d. Cir.

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Engquist v. Oregon Department of Agriculture

Issues

Should the class-of-one theory under which state actors may be sued for arbitrary discrimination against individuals apply equally to public employers with regards to their hiring, firing, and other decisions, or should public employers be exempted from such claims due to the subjective nature of employment decisions?

 

Under what is known as the class-of-one theory, an individual plaintiff can bring an Equal Protection claim against a state actor for "irrational and wholly arbitrary treatment." The person is a "class-of-one" when she alleges that the government is subjecting only her to differing and unique treatment compared to others similarly situated. This differs from a traditional Equal Protection claim, in which a person alleges discriminatory acts by the government against an entire group of people treated differently because of a protected characteristic like race. Anup Engquist brought such a claim against her employer, the Oregon Department of Agriculture, alleging that it arbitrarily failed to promote her to a position for which she was qualified, allowed a supervisor with whom she had an acrimonious relationship to harass and degrade her, and eventually laid her off. The Ninth Circuit Court of Appeals, in overturning the District Court that found in her favor on the Equal Protection claim, held that the class-of-one theory is inapplicable to decisions made by state employers with regard to their employment decisions. Engquist has appealed the decision to the Supreme Court, arguing that there is no basis in the Equal Protection Clause for a limitation on class-of-one claims in the employment context. The Oregon Department of Agriculture and the Ninth Circuit assert that class-of-one cases are appropriate when the government is acting as regulator, but not as employer.

Questions as Framed for the Court by the Parties

The Ninth Circuit below vacated the jury's verdict in favor of Petitioner Engquist and created a divisive split with the seven Circuits that apply the "rational basis" analysis to public employees who claim their termination was a result of unequal treatment, even if that treatment did not result from the employee's membership in a suspect class. The question presented is:

Whether traditional equal protection "rational basis" analysis under Village of Willowbrook v Olech, 528 US 562, 120 S Ct 1073, 145 L Ed 2d 1060 (2000), applies to public employers who intentionally treat similarly situated employees differently with no rational bases for arbitrary, vindictive or malicious reasons?

In Engquist v. Oregon Department of Agriculture, the Supreme Court will resolve a circuit split regarding whether an individual government employee can bring an Equal Protection claim against her employer, a state government agency, for treating her differently than other similarly-situated employees.

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Encino Motorcars, LLC v. Navarro, et al.

Issues

Are individuals who are employed as “service advisors” at car dealerships subject to  federal  law governing  over-time  pay?

 

This case asks the Supreme Court to clarify whether automotive “service advisors” qualify for the Fair Labor Standards Act’s (“FLSA”) mandatory overtime pay requirements. Encino Motorcars, LLC, a Mercedes-Benz dealership in California, contends that these employees are primarily “servicem[e]n . . . engaged in . . . servicing automobiles” and thus they are clearly captured within the law’s exceptions. Similarly, Encino argues that even if the statute is sufficiently ambiguous on the matter, the Department of Labor’s interpretation of the statute is unreasonable and unentitled to judicial deference. Hector Navarro and other employees assert that construing the statute’s exception to include service advisors would violate the text, spirit, and purpose of the FLSA. Relatedly, they maintain that the Department’s interpretation is entirely reasonable and thereby warrants deference from the Court. The Supreme Court’s resolution of this case could affect the terms of employment between America’s 45,000 service advisors and their employers. 

Questions as Framed for the Court by the Parties

Are “service advisors” at car dealerships exempt under 29 U.S.C. § 213(b)(10)(A) from the FLSA’s overtime-pay requirements?

Congress enacted the Fair Labor Standards Act (“FLSA”) in 1938, seeking to remedy perceived shortcomings in the national labor market and to provide a minimum standard of acceptable working conditions for all employees. See Brief for Petitioner, Encino Motorcars, LLC at 4–5. One provision of t

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Empire HealthChoice Assurance v. McVeigh

Issues

Do the federal courts have jurisdiction over cases brought to enforce provisions of contracts created under the Federal Employees Health Benefits Act?

 

This case derives from a reimbursement action brought by Empire HealthChoice Assurance, a private healthcare provider, against a federal employee who received health care benefits under the terms of a contract brought into being by the Federal Employees Health Benefits Act. The District and Circuit courts held that federal law did not govern the action, and that the action should have been raised under state contract law in state court. The Supreme Court must now decide whether the Federal Employees Health Benefits Act creates a federal common law basis for Empire’s claim, and thus whether the federal courts have jurisdiction over cases brought to enforce provisions of contracts created under the Act.

Questions as Framed for the Court by the Parties

Whether federal question jurisdiction exists over a suit by a federal government contractor to enforce, on behalf of the United States, a provision in a health benefits plan for federal employees that is part of a government contract established pursuant to the Federal Employees Health Benefits Act.

Joseph McVeigh was injured in a car accident in 1997. Mayer, Brown, Rowe, & Maw’s Supreme Court Docket Report at 2 (Jan. 6, 2006) (“Docket Report”). As a federal employee, Mr. McVeigh was eligible for and enrolled in a Service Benefit Plan (“the Plan”) offered by the Blue Cross and Blue Shield Association (“Blue Cross”). Empire HealthChoice Assurance v. McVeigh, 396 F.3d 136, 139 (2d Cir.

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EC Term of Years Trust v. United States

Issues

Whether 26 U.S.C. § 7426, which is designed specifically for wrongful levy actions and has a shorter statute of limitations, is the exclusive remedy for an individual seeking a refund after a wrongful levy assessed by the IRS.

 

Elmer and Dorothy Cullers created the EC Term of Years Trust (“the Trust”) to reduce the impact of federal taxes on their estate. When the IRS claimed the Cullers had transferred property to the Trust to avoid paying taxes, the Trust opened a bank account to pay the back-taxes. The IRS levied on the account.  Afterwards , the Trust sought to recover the funds under 26 U.S.C. § 7426 (wrongful levy statute) and 28 U.S.C. § 1346 (tax refund statute). At  issue in this case  is whether 26 U.S.C. § 7426, with its shorter statute of limitations, is the exclusive remedy for wrongful levy actions by third parties, or whether third parties may alternatively seek relief under the more general tax refund provisions of 28 U.S.C. § 1346, which has a longer statute of limitations. The Court’s  decision in this case  will determine whether wrongful levy claimants will have this longer statutory period during which to bring suit against the U.S. The Court’s decision will also implicitly give weight to particular methods of statutory interpretation and ways of determining congressional intent.

Questions as Framed for the Court by the Parties

May a person who is not the assessed taxpayer utilize 28 U.S.C. § 1346 to seek a refund when its funds were seized through a wrongful levy and it had an opportunity to utilize the wrongful levy procedure under 26 U.S.C. § 7426?

Elmer and Dorothy Cullers created the EC Term of Years Trust (“the Trust”), the Petitioner, in 1991 to reduce the impact of federal taxes on their estate. Brief for Petitioner at 3.

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eBay, Inc. v. MercExchange, L.L.C.

Issues

Whether a patentee has an automatic right to a permanent injunction once infringement is found.

 

In 2003, a jury found that eBay, an online auction website, was violating various patents owned by MercExchange. The district court nevertheless refused to issue a permanent injunction that would have barred eBay from continuing to use the patented methods. The Federal Circuit of Appeals granted the injunction against eBay and held that permanent injunctions were the “general rule” in patent infringement cases. The Supreme Court granted certiorari to decide whether a patentee has an automatic right to a permanent injunction after a finding of infringement. If the Court upholds the “near-automatic injunction rule,” then patent holders will have a powerful remedy that can give them tremendous leverage in litigation. However, upholding the rule may also make it easier for “patent trolls” to continue benefiting from genuine innovators. If the Court instead finds that patent holders do not automatically have the right to an injunction, infringers will be able to continue using the patented product, thereby subverting the purposes of patent law. Not granting automatic injunctions may also encourage more patent infringement. How the Supreme Court decides the case will depend on its interpretation of important precedents and how it weighs these important social implications.

Questions as Framed for the Court by the Parties

Whether the Federal Circuit erred in setting forth a general rule in patent cases that a district court must, absent exceptional circumstances, issue a permanent injunction after a finding of infringement.

eBay, Inc. (“eBay”) owns and operates a website that allows buyers to purchase goods either through an auction-style format or at a fixed price via the “Buy it Now” feature. See MercExchange, LLC v. eBay, Inc., 401 F.3d 1323, 1325 (Fed. Cir. 2005).

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Duryea v. Guarnieri

Issues

Whether public employees may sue their government employers for retaliation under the First Amendment's Petition Clause when their petitions concern only matters of private interest.

 

In 2003, the Borough of Duryea, Pennsylvania fired its police chief, Charles J. Guarnieri, Jr. Guarnieri filed a grievance leading to arbitration and his reinstatement. When Guarnieri returned to his position, Duryea issued him a number of directives limiting the tasks he could and could not do  on  the job. Guarnieri filed a second grievance, leading to modification of the directives. Subsequently, Guarnieri sued Duryea in District Court alleging that Duryea issued the directives in retaliation for his filing of the 2003 grievance, violating his First Amendment right to petition. After a jury found for Guarnieri in District Court, Duryea appealed to the Third Circuit. The Third Circuit held that the First Amendment protects public employees in filing grievances concerning any matter, even those of a personal nature. The Supreme Court granted certiorari to determine whether public employees may sue their employers for  retaliation,  when the alleged retaliation is for the filing of grievances based on private matters rather than issues of public concern.

Questions as Framed for the Court by the Parties

Whether the Third Circuit erred in holding that state and local government employees may sue their employers for retaliation under the First Amendment's Petition Clause when they petitioned the government on matters of purely private concern, contrary to decisions by all ten other federal circuits and four state supreme courts that have ruled on the issue.

In February 2003, the Borough of Duryea, Pennsylvania ("Duryea") fired Police Chief Charles J. Guarnieri, Jr. See Guarnieri v. Borough of Duryea, 364 Fed. Appx. 749, 751 (3d Cir.

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Additional Resources

· Annotated Constitution, Legal Information Institute: First Amendment: Government as Employer.

· Society for Human Resource Management, Joanne Deschenaux: High Court to Decide Scope of Public Employees’ Retaliation Protection (Oct. 14, 2010).

· Business Management Daily, Hera S. Arsen: Supremes at Work: 8 Key Employment Law Cases on Docket (Nov. 26, 2010).

· First Amendment Center, Tony Mauro: Could Petition Shield Outspoken Public Employees? (Oct. 13, 2010).

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