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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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Dura Pharmaceuticals, Inc. v. Broudo

 

Dura Pharmaceuticals is a publicly traded company that developed and marketed prescription pharmaceuticals for the treatment of allergies and asthma. Investor plaintiffs brought a class action securities fraud action against Dura under §10(b) of the Securities Exchange Act, alleging that Dura knowingly misrepresented the success of the clinical trials for one of their asthma products, transferred the losses incurred from product development to subsidiary corporations in order to perpetuate the perception of high earnings for the parent company, and made repeated public statements regarding the success of its drug sales when sales were actually declining. The plaintiffs also claimed that Dura executives sold approximately $400 million of their personally-held Dura stock, actions which raise suspicions of insider trading.

The trial court dismissed the plaintiffs' complaint, ruling that the plaintiffs had failed to meet the pleading requirements of §10(b) and the Private Securities Litigation Reform Act. On appeal, the Ninth Circuit reversed, ruling that the lower court misinterpreted the loss causation element of §10(b) and that the lower court should have considered the plaintiffs' allegations collectively in order to determine whether the pleading requirements had been met. The Supreme Court granted certiorari in order to provide a clear standard on these two pleading requirement issues.

The Supreme Court will now resolve the question of whether or not plaintiff investors met the pleading requirements to bring a cause of action for federal securities fraud under §10(b) of the Securities Exchange Act against Dura Pharmaceuticals.

Questions as Framed for the Court by the Parties

Whether a securities fraud plaintiff invoking the fraud-on-the-market theory must demonstrate loss causation by pleading and proving a causal connection between the alleged fraud and the investment's subsequent decline in price.

Defendant Dura Pharmaceuticals ("Dura") is a publicly traded company that develops and markets prescription pharmaceuticals for the treatment of allergies and asthma. The plaintiffs are investors who purchased Dura stock between April 15, 1997 and February 24, 1998. Broudo v. Dura Pharms., Inc., 339 F.3d 933, 935 (9th Cir., 2003).
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Duncan v. Owens

Issues

  1. What constitutes “clearly established Federal law” under section 2254(d) of the Anti-terrorism and Effective Death Penalty Act?
  2. In a criminal bench trial, did an Illinois judge violate a clearly established constitutional right by referencing facts in his verdict that did not relate to an element of the crime but were not presented at trial?

In a November 2000 bench trial, the Circuit Court of Cook County, Illinois convicted Lawrence Owens of first-degree murder. See Owens v. Duncan, 781 F.3d 360, 361 (7th Cir. 2015). In the trial judge’s verdict, the judge referenced facts not presented as evidence during the trial. See id. at 363-64. The facts related to Owens’ motive for committing the crime, which is not an element of the offense under Illinois law. The Illinois State Appellate court affirmed the trial court’s verdict. The court found the trial judge’s comments “baseless” but harmless error because the prosecution presented sufficient eyewitness testimony to convict. See id. at 361-62.  Fifteen years later, the U.S. Seventh Circuit Court of Appeals granted Owens habeas corpus relief on the grounds that his due process rights were violated. See id. at 364-65. The Seventh Circuit found that the trial court unconstitutionally convicted based on  facts  not in evidence. In this case, the Supreme Court will decide whether the Antiterrorism and Effective Death Penalty Act (“AEDPA”) precluded the Seventh Circuit from granting habeas relief. See Brief for Petitioner, Stephen Duncan, Warden at i, 2. The AEDPA enables federal courts to hear habeas proceedings in which defendants allege that states violated their constitutional rights. However, section 2254(d) provides that courts cannot hear habeas proceedings unless the state court decision “was contrary to, or involved an unreasonable application of, clearly established Federal law, as determined by the Supreme Court.” Representing the state of Illinois, Stephen Duncan, warden of the Lawrence Correctional Center in Sumner, IL, contends that there was no clearly established federal law to apply to Owens’ case. See id. at i, 16, 18, 24. But Owens argues that the Seventh Circuit accurately identified his constitutional right to be convicted based only on evidence presented at trial. See Brief for Respondent, Lawrence Owens at 25. The Court’s decision will affect the balance of power between state and federal courts, and the finality and validity of state court convictions. See Brief of Washington et al., in Support of Petitioner at 3, 5.

Questions as Framed for the Court by the Parties

Did the Seventh Circuit violate 28 U.S.C .  § 2254 and a long line of this Court’s decisions by awarding habeas relief in the absence of clearly established precedent from this Court?

On September 22, 1999, Ramon Nelson was killed while riding his bike away from a liquor store in Markham, Illinois.  See Owens v. Duncan, 781 F.3d 360, 362 (7th Cir.

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Additional Resources

  •    Oyez, Duncan v. Owens, Chicago-Kent College of Law at Illinois Tech (Dec. 21, 2015).
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Douglas v. Independent Living Center of Southern California; Douglas v. California Pharmacist Association; Douglas v. Santa Rosa Memorial Hospital

Issues

Can medical providers sue under the Supremacy Clause of the United States Constitution, arguing that 42 U.S.C. § 1396a(a)(30)(A) preempts a state law that reduces Medicaid reimbursement payments?

 

A series of reforms passed by the California Assembly in 2008 and 2009 reduced the state’s payments made to California Medicaid providers. Respondents Independent Living Center of Southern California, the California Pharmacists Association, and Santa Rosa Memorial Hospital brought suit in the U.S. District Court for the Central District of California, claiming that the payment reductions violated 42 U.S.C. § 1396a(a)(30)(A), which requires that state Medicaid plans comply with federal law or lose federal funding. Petitioner Toby Douglas, the Director of the Department of Health Care Services for the State of California, argues that health care providers cannot sue to enforce § 30(A) because the statute does not grant any enforceable rights, and Congress did not intend for private parties to sue to enforce the statute. Conversely, the health care providers argue that the Supremacy Clause permits private parties to sue if they have suffered an injury from state action, and they assert that Congress did not explicitly disallow private lawsuits in § 30(A). The Supreme Court’s decision will affect the predictability of federal law, the ability of private parties to bring lawsuits to enforce federal law, and the availability of health care to Medicaid beneficiaries.

Questions as Framed for the Court by the Parties

1. Whether Medicaid recipients and providers may maintain a cause of action under the Supremacy Clause to enforce § 1396a(a)(30)(A) by asserting that the provision preempts a state law reducing reimbursement rates?

2. Whether a state law reducing Medicaid reimbursement rates may be held preempted by § 1396a(a)(30)(A) based on requirements that do not appear in the text of the statute?

The Medicaid program authorizes dissemination of federal funds to participating states to reimburse health care providers for services provided to individuals who are eligible for Medicaid. See California Pharmacists Ass’n v. Maxwell-Jolly, 596 F.3d 1098, 1103 (9th Cir.

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Dorsey v. United States (11-5683); Hill v. United States

Issues

Does the FSA apply to all sentencings occurring after its effective date or only to crimes committed after the statute became effective?

 

On August 3, 2010, President Obama signed the Fair Sentencing Act (“FSA”), which reduced the disparity between the amounts of crack and powder cocaine required to trigger certain minimum mandatory sentences under the federal Sentencing Guidelines. Petitioners Edward Dorsey and Corey Hill were both arrested for possession of crack cocaine with intent to distribute prior to the FSA’s passage, but were both sentenced after the FSA was enacted. Under the pre-FSA guidelines, they received ten-year prison sentences, but under the new FSA guidelines, both would have received substantially shorter prison sentences. Dorsey, Hill, and the United States government all argue that Congress intended for the FSA to apply immediately, and therefore, all prisoners sentenced after August 3, 2010, including Dorsey and Hill, should have been sentenced according to the FSA. Miguel Estrada, a court-appointed amicus curiae writing in support of the judgments below, argues that nothing indicates that Congress intended for immediate effectiveness and that the federal Saving Statute prevents retroactive application of new statutes that would eliminate previously incurred penalties. The decision in these cases will have implications for the consistent application of the FSA to prisoners falling within this particular sentencing window, as well as potential social costs and burdens on the justice system.

Questions as Framed for the Court by the Parties

In Hill v. United States:

Whether the District Court erred in not sentencing Hill pursuant to the FSA where he was sentenced on December 2, 2010 after the Act’s effective date and the Sentencing Guideline amendments it mandated?

In Dorsey v. United States:

Did the Seventh Circuit err when, in conflict with the First and Eleventh Circuits, it held that the FSA does not apply to all defendants sentenced after its enactment?

In 1986, Congress established a tiered system of mandatory five- and ten-year prison sentences for drug-trafficking offenses. See Brief of the United States in support of Petitioners at 4. Congress was concerned about the proliferation of crack cocaineSee 

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