Justia Government & Administrative Law Opinion Summaries

Christopher Dallas Nelson pleaded guilty to one count of possession of child pornography. The Presentence Investigation Report (PSR) revealed that Nelson possessed 3,699 images, including 196 images of his seven-year-old daughter and 25 images of his five-year-old daughter. Nelson admitted to downloading child pornography and taking images of his older daughter but denied producing images of his younger daughter. He also attempted to obstruct justice by hiding a laptop and cellphone containing evidence. Nelson's total offense level under the U.S. Sentencing Guidelines was 43, and he filed objections to the PSR.The United States District Court for the Western District of Texas sentenced Nelson to 240 months in prison, a $250,000 fine, additional restitution and special assessments totaling $10,100, and supervised release for life. The court imposed mandatory and standard conditions of supervised release and added discretionary special conditions barring Nelson’s access to the Internet. Nelson objected to these special conditions, and the court’s written judgment contained less severe versions of the Internet-related conditions. Nelson timely appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court's denial of a sentencing reduction for acceptance of responsibility, finding no abuse of discretion. The court also found that the written judgment conflicted with the oral pronouncement regarding Internet restrictions, holding that the oral pronouncement controls. Finally, the court held that the district court abused its discretion by imposing a lifetime Internet ban without exceptions, as it was not narrowly tailored. The court affirmed Nelson’s sentence except for the special conditions of supervised release, vacated the Internet-related conditions, and remanded for further proceedings. View "U.S. v. Nelson" on Justia Law

Reabold California LLC applied to convert a former oil well into a Class II injection well in the Brentwood Oil Field, Contra Costa County. The well, drilled in 1963, had been inactive for over 20 years. The conversion involved minor alterations, such as removing the well plug and installing injection equipment. The project aimed to inject produced water back into the aquifer, eliminating the need for water disposal trips. The Environmental Protection Agency had exempted the aquifer from the Safe Drinking Water Act in 1982, making it eligible for such injection projects.The California Department of Conservation’s Division of Geologic Energy Management (CalGEM) approved the project, invoking a Class 1 categorical exemption under the California Environmental Quality Act (CEQA) for minor alterations involving negligible or no expansion of use. Sunflower Alliance challenged this exemption, arguing that converting the well to an injection well constituted a significant change in use. The Contra Costa County Superior Court agreed with Sunflower, ruling that the change in use was not negligible and directing CalGEM to set aside its approval and notice of exemption.The California Court of Appeal, First Appellate District, reviewed the case and reversed the trial court’s decision. The appellate court held that the conversion project fell within the Class 1 exemption because the environmental risks associated with injecting water were negligible. The court emphasized that the project involved only minor physical alterations and that the injected water would be confined within the aquifer, posing no significant environmental harm. The court directed the lower court to deny Sunflower’s petition and ordered CalGEM to reinstate its project approval and notice of exemption. View "Sunflower Alliance v. California Department of Conservation" on Justia Law

Advanced Benefit Concepts, Inc. (ABC) filed a breach of contract lawsuit against Access Health, Inc., Preferred Care Services, Inc., and Blue Cross and Blue Shield of Alabama (collectively, Access Health). ABC alleged that Access Health failed to pay fees owed under an agreement where ABC helped Access Health secure a contract with the State of Louisiana’s Office of Group Benefits (OGB). Access Health countered that the contract was null and void because ABC did not register as a lobbyist as required by the Louisiana Executive Branch Lobbying Act.The district court ruled in favor of Access Health, declaring the contract void due to ABC’s failure to register as a lobbyist. The court granted Access Health’s motion for summary judgment, dismissing ABC’s breach of contract claim. ABC’s exceptions of lack of subject matter jurisdiction and prescription were overruled. ABC appealed the decision.The Louisiana Court of Appeal, First Circuit, reversed the district court’s decision, holding that the Board of Ethics had exclusive jurisdiction to determine the validity of the contract under the Lobbying Act. The appellate court concluded that the district court lacked subject matter jurisdiction to declare the contract void and reversed the summary judgment.The Supreme Court of Louisiana reviewed the case and reversed the appellate court’s decision. The Supreme Court held that the district court has subject matter jurisdiction to hear the contractual dispute, including the affirmative defense of nullity based on the Lobbying Act. The court emphasized that the Executive Branch Lobbying Act does not deprive the district court of jurisdiction and that the district court can consider whether the contract is an absolute nullity under Louisiana Civil Code article 2030. The case was remanded to the appellate court to consider the exception of prescription and the merits of the summary judgment motion. View "ADVANCED BENEFIT CONCEPTS, INC. VS. BLUE CROSS AND BLUE SHIELD OF ALABAMA" on Justia Law

Russell Hotchkiss, a resident of Linn County, Iowa, began sending emails to the Cedar Rapids Community School District officials in September 2021, criticizing their COVID-19 masking and vaccination policies. His communications included threats of criminal charges against board members, particularly targeting Jennifer Borcherding, a board member. Hotchkiss attended board meetings in November and December 2021, where he voiced his opposition aggressively. Following these incidents, the District issued a no-trespass notice to Hotchkiss on January 10, 2022, barring him from District premises due to his disruptive and threatening behavior.Hotchkiss filed a lawsuit on May 17, 2023, claiming First Amendment retaliation under 42 U.S.C. § 1983 and a violation of the Iowa Open Meetings Act. He sought a preliminary injunction to prevent the enforcement of the no-trespass order. The United States District Court for the Northern District of Iowa denied his motion, concluding that Hotchkiss failed to demonstrate irreparable harm. The court noted that Hotchkiss had not attempted to return to District premises, had moved his child to another school district, and had not communicated with the District since the notice was issued.The United States Court of Appeals for the Eighth Circuit reviewed the district court's decision. The appellate court affirmed the denial of the preliminary injunction, agreeing that Hotchkiss did not show a likelihood of irreparable harm. The court emphasized that speculative harm does not justify a preliminary injunction and noted Hotchkiss's delay in seeking relief and lack of recent attempts to exercise his First Amendment rights. The court concluded that the district court did not abuse its discretion in denying the preliminary injunction based on the failure to demonstrate irreparable harm. View "Hotchkiss v. Cedar Rapids Community School District" on Justia Law

James Donelson, CEO of Long Leaf Trading Group, oversaw a company that provided trade recommendations in the commodities market and earned commissions on executed trades. Despite collecting $1,235,413 in commissions from customers participating in the "Time Means Money" (TMM) program, customers incurred losses totaling $2,376,738. The Commodity Futures Trading Commission (CFTC) investigated and filed a civil enforcement action against Donelson and others, alleging options fraud and other violations of commodities laws.The United States District Court for the Northern District of Illinois granted summary judgment to the CFTC on all but one count against Donelson. The court found that Donelson and Long Leaf made several misrepresentations, including misleading trade history emails, false return rate projections, and omissions about Long Leaf's history of losses. The court also determined that Long Leaf acted as a Commodity Trading Advisor (CTA) and should have registered as such. Donelson was ordered to pay restitution and disgorgement totaling $3,612,151. Donelson appealed the summary judgment.The United States Court of Appeals for the Seventh Circuit reviewed the case de novo. The court affirmed the district court's findings on options fraud, fraud by a CTA, and fraudulent advertising by a CTA, agreeing that Donelson made misleading statements and omissions. The court also upheld the finding that Long Leaf was a CTA and that Donelson was a controlling person of the company. However, the court reversed the summary judgment on the claims related to the failure to register as a CTA and failure to make required disclosures, remanding these issues for further proceedings to determine if Long Leaf was exempt from registration under CFTC regulations. View "Commodity Futures Trading Commission v. Donelson" on Justia Law

The Washington State Department of Ecology (Ecology) identified nitrogen pollution from wastewater treatment plants as a significant issue for Puget Sound. The Northwest Environmental Advocates (NWEA) petitioned Ecology to include nitrogen discharge limits in their regulations. Ecology denied the petition but committed to setting nutrient loading limits at current levels for all permitted dischargers in Puget Sound through the individual permitting process. Subsequently, Ecology issued permits with varying nitrogen discharge limits.The City of Tacoma and other municipalities operating wastewater treatment plants petitioned the Thurston County Superior Court for judicial review, arguing that Ecology's commitment constituted a "rule" under the Administrative Procedure Act (APA) and was adopted without following statutory rule-making procedures. The superior court agreed, holding that Ecology's commitment was a "rule" and invalidated it. The Court of Appeals affirmed this decision, finding that Ecology's actions amounted to a directive of general applicability, thus constituting a "rule" under the APA.The Supreme Court of Washington reviewed the case and concluded that Ecology's commitment in the denial letter was not a directive of general applicability. The court found that Ecology's actions allowed for staff discretion and case-by-case analysis, rather than imposing a uniform standard. Therefore, the commitment did not meet the definition of a "rule" under RCW 34.05.010(16). The Supreme Court reversed the Court of Appeals' decision and remanded the case to the superior court for any further necessary proceedings. View "City of Tacoma v. Dep't of Ecology" on Justia Law

Three retired New Hampshire State Police troopers challenged their inclusion on the Exculpatory Evidence Schedule (EES), claiming their placement was based on outdated and misinterpreted conduct. Approximately twenty years ago, the troopers inflated traffic stop records in their activity logs to meet mandated quotas. An internal investigation led to their discipline but not termination. Initially placed on the "Laurie List," their names were later removed, only to be reinstated on the EES over a decade later.The Superior Court dismissed the troopers' complaint, finding their conduct potentially exculpatory and their placement on the EES appropriate. The court also ruled that the troopers had received adequate due process. The troopers appealed, arguing that their conduct was not fraudulent and that the age of the conduct diminished its relevance.The Supreme Court of New Hampshire reviewed the case, focusing on whether the troopers' conduct was "potentially exculpatory" under RSA 105:13-d. The court noted that "potentially exculpatory evidence" includes evidence that could be material to guilt or punishment, including impeachment evidence. The court emphasized that factors such as the age and nature of the conduct should be considered in determining its relevance.The court concluded that the limited record did not establish whether the troopers' conduct was potentially exculpatory, as it could have been a result of a mistaken interpretation of reporting requirements rather than dishonesty. Therefore, the court reversed the Superior Court's dismissal and remanded the case for further proceedings to determine the potential exculpatory nature of the conduct, considering its admissibility and relevance in future criminal cases. View "Doe v. N.H. Attorney Gen." on Justia Law

In a procurement dispute, the Honolulu Board of Water Supply (BWS) solicited bids for a well-drilling project and disqualified Alpha, Inc. for not having the required contractor’s license. Alpha challenged the decision administratively and judicially, arguing that its bid was responsive and that the winning bidder, Beylik/Energetic A JV, was nonresponsive. BWS maintained that the administrative hearings officer and courts lacked jurisdiction to hear the protest because Alpha did not meet the statutory requirement that the protest concern a matter worth at least ten percent of the contract’s value.The Office of Administrative Hearings (OAH) concluded that the ten percent requirement was not jurisdictional and had jurisdiction to hear Alpha’s appeal. On the merits, OAH found that Alpha’s bid was nonresponsive due to the lack of a required subcontractor listing. The Circuit Court of the First Circuit affirmed OAH’s decision, agreeing that BWS could require a C-27 license for tree removal and that Alpha’s bid was nonresponsive. The Intermediate Court of Appeals (ICA) also affirmed, holding that the ten percent requirement related to standing, not jurisdiction, and that Alpha had standing to appeal.The Supreme Court of the State of Hawai‘i reversed the ICA’s decision, holding that the ten percent requirement is jurisdictional. The court concluded that Alpha did not meet this requirement, and therefore, OAH and the courts lacked jurisdiction to review BWS’s decision. The court also provided guidance on the merits, affirming BWS’s disqualification of Alpha’s bid for not listing a required subcontractor and not having the proper license for tree removal. View "Alpha Inc. v. Board of Water Supply" on Justia Law

Phillip Weeks filed a lawsuit against the City of Webster Groves and St. Louis County, alleging violations of Missouri’s Sunshine Law for failing to produce public records he requested. Weeks sought raw data files from vehicle stop forms, including officer identification numbers (DSNs), for specific years. Webster Groves and St. Louis County, which use the Regional Justice Information Services (REJIS) for data storage, did not fully comply with his requests. Webster Groves claimed the Sunshine Law did not require creating new records, while St. Louis County initially provided some data but later redacted the DSNs, arguing they were exempt from disclosure.The Circuit Court of St. Louis County granted summary judgment in favor of Webster Groves and St. Louis County. The court found that the DSNs were not responsive to Weeks' requests and that the Sunshine Law did not require the creation of new records. Additionally, St. Louis County argued that the DSNs were exempt under sections 610.021(3) and (13) of the Sunshine Law, which pertain to personnel records and information related to employee performance.The Supreme Court of Missouri reviewed the case and vacated the circuit court’s summary judgment. The court held that the record did not establish whether the DSNs were part of the requested vehicle stop data or if they were exempt from disclosure. The court emphasized that the Sunshine Law requires public records to be open unless specifically exempt and that the exemptions must be strictly construed. The case was remanded for further proceedings to determine whether the DSNs are public records and if any exemptions apply. View "Weeks vs. St. Louis County, MO." on Justia Law

Lake Region Healthcare Corporation operates a hospital in Minnesota and experienced a significant decrease in Medicare inpatient discharges in 2013, qualifying it for a volume-decrease adjustment (VDA). The hospital sought an adjustment of $1,947,967 using a method that estimates the portion of Medicare payments attributable to fixed costs. A Medicare contractor denied the adjustment, applying a method that treats all Medicare payments as compensation for fixed costs, resulting in no adjustment. The Provider Reimbursement Review Board (PRRB) reversed the contractor's decision, but the Centers for Medicare & Medicaid Services (CMS) reinstated it.The United States District Court for the District of Columbia ruled in favor of the government, deferring to CMS's method under Chevron deference. The court found that the statute did not specify how to calculate the VDA and that CMS's method was a reasonable interpretation, even if not the best one. The court concluded that CMS's approach was consistent with the statutory requirement to compensate only for fixed costs.The United States Court of Appeals for the District of Columbia Circuit reviewed the case de novo. The court held that CMS's method of attributing all Medicare payments to fixed costs did not comply with the statutory requirement to fully compensate hospitals for their fixed costs. The court noted that Medicare payments cover both fixed and variable costs and that CMS's method overstates the amount of reimbursed fixed costs, thus understating unreimbursed fixed costs. The court found that reasonable proxies exist to estimate the fixed-cost component of Medicare payments and that CMS's method was not a reasonable approximation of full compensation for fixed costs.The court reversed the district court's decision, granted summary judgment to Lake Region, and remanded the case to the agency for further proceedings consistent with the opinion. View "Lake Region Healthcare Corporation v. Becerra" on Justia Law