Justia Government & Administrative Law Opinion Summaries

The Enterprises, Fannie Mae and Freddie Mac, suffered financial losses in 2008 when the housing market collapsed. The Housing and Economic Recovery Act of 2008 (HERA), created the Federal Housing Finance Agency (FHFA), an independent agency tasked with regulating the Enterprises, including stepping in as conservator, 12 U.S.C. 4511.With the consent of the Enterprises’ boards of directors, FHFA placed the Enterprises into conservatorship, then negotiated preferred stock purchase agreements (PSPAs) with the Treasury Department to allow the Enterprises to draw up to $100 billion in exchange for senior preferred non-voting stock having quarterly fixed-rate dividends. A “net worth sweep” under the PSPAs replaced the fixed-rate dividend formula with a variable one that required the Enterprises to make quarterly payments equal to their entire net worth, minus a small capital reserve amount, causing the Enterprises to transfer most of their equity to Treasury, leaving no residual value for shareholders.Shareholders challenged the net worth sweep. Barrett, an individual shareholder, separately asserted derivative claims on behalf of the Enterprises. The Claims Court dismissed the shareholders’ direct Fifth Amendment takings and illegal exaction claims for lack of standing; dismissed for lack of subject matter jurisdiction the shareholders’ direct claims for breach of fiduciary duty, and breach of implied-in-fact contract; and found that Barrett had standing to bring his derivative claims, notwithstanding HERA. The Federal Circuit affirmed the dismissal of shareholders’ direct claims but concluded that the shareholders’ derivatively pled allegations should also be dismissed. View "Fairholme Funds, Inc. v, United States" on Justia Law

Heather operated a health-coaching business called Constitution Nutrition. She started her business in California, which did not require a license. After moving to Florida in 2015, she continued to run her business—meeting online with most of her clients and meeting in person with two clients who lived in Florida. She described herself as a “holistic health coach” and not as a dietician. Heather tailored her health coaching to each client, which included dietary advice. After a complaint was filed against her and she paid $500.00 in fines and $254.09 in investigatory fees, Heather sued, claiming that Florida’s Dietetics and Nutrition Practice Act, which requires a license to practice as a dietician or nutritionist, violated her First Amendment free speech rights to communicate her opinions and advice on diet and nutrition to her clients. The district court granted the Florida Department of Health summary judgment.The Eleventh Circuit affirmed, after considering the Supreme Court’s decision in National Institute of Family & Life Advocates v. Becerra (2018). The Act “is a professional regulation with a merely incidental effect on protected speech,” and is constitutional under the First Amendment. View "Del Castillo v. Secretary, Florida Department of Health" on Justia Law

The Supreme Court affirmed the decision of the Department of Workforce Development rejecting Eden Senior Care's application to succeed the unemployment insurance account of Friendly Village Nursing and Rehab's previous owner, holding that Eden failed to demonstrate excusable neglect for the untimely filing of its application.After purchasing Friendly Village, Eden untimely filed its successorship application. The Labor and Industry Review Commission concluded that the record was insufficient to establish that Eden's application was late because of excusable neglect. Eden appealed, arguing that the Commission erred in failing to consider whether the interests-of-justice factors supported a finding of excusable neglect. The circuit court affirmed. The Supreme Court affirmed, holding (1) the Commission applied the correct legal standard; and (2) there was no basis on which to excuse Eden's neglect in filing its successorship application after the statutory deadline. View "Friendly Village Nursing and Rehab, LLC v. State, Department of Workforce Development" on Justia Law

The Secretary of Labor, through OSHA, enacted a vaccine mandate, to be enforced by employers. The mandate preempted contrary state laws and covered virtually all employers with at least 100 employees, with exemptions for employees who exclusively work remotely or outdoors. It required that covered workers receive a COVID–19 vaccine or obtain a medical test each week at their own expense, on their own time, and also wear a mask at work. Challenges were consolidated before the Sixth Circuit, which allowed OSHA’s rule to take effect.The Supreme Court stayed the rule. Applicants are likely to succeed on the merits of their claim that the Secretary lacked the authority to impose the mandate. The rule is “a significant encroachment into the lives—and health—of a vast number of employees,” not plainly authorized by statute; 29 U.S.C. 655(b) empowers the Secretary to set workplace safety standards, not broad public health measures. Although COVID–19 is a risk in many workplaces, it is not an occupational hazard in most. COVID–19 spreads everywhere that people gather. Permitting OSHA to regulate the hazards of daily life would significantly expand OSHA’s regulatory authority without clear congressional authorization. The vaccine mandate is unlike typical OSHA workplace regulations. A vaccination “cannot be undone.” Where the virus poses a special danger because of the particular features of an employee’s job or workplace, targeted regulations are permissible but OSHA’s indiscriminate approach fails to distinguish between occupational risk and general risk. The equities do not justify withholding interim relief. States and employers allege that OSHA’s mandate will force them to incur billions of dollars in unrecoverable compliance costs and will cause hundreds of thousands of employees to leave their jobs. View "National Federation of Independent Business v. Department of Labor, Occupational Safety & Health Administration" on Justia Law

The 1949 Federal Property and Administrative Services Act is intended to facilitate the “economical and efficient” purchase of goods and services on behalf of the federal government, 40 U.S.C. 101. In November 2021, the Safer Federal Workforce Task Force, under the supposed auspices of the Act, issued a “Guidance” mandating that employees of federal contractors in “covered contract[s]” with the federal government become fully vaccinated against COVID-19. Ohio, Kentucky, and Tennessee and Ohio sheriffs’ offices sued, alleging that the Property Act does not authorize the mandate, that the mandate violates other federal statutes, and that its intrusion upon traditional state prerogatives raises federalism and Tenth Amendment concerns.The district court enjoined enforcement of the mandate throughout the three states and denied the federal government’s request to stay the injunction pending appeal. The Sixth Circuit denied relief. The government has established none of the showings required to obtain a stay. The government is unlikely to succeed on claims that the plaintiffs lack standing and the plaintiffs likely have a cause of action under the Administrative Procedure Act. The court noted the plaintiff’s concerns about disruptions to the supply chain if workers leave their jobs rather than receiving vaccinations and also stated: Given that expansive scope of the Guidance, the interpretive trouble is not figuring out who’s “covered”; the difficult issue is understanding who, based on the Guidance’s definition of “covered,” could possibly not be covered. View "Commonwealth of Kentucky v. Biden" on Justia Law

General Motors was a Delaware corporation engaged in the sale of motor vehicles in Pennsylvania, and subject to Pennsylvania’s corporate income tax. GM contested the calculation of its 2001 Tax Year corporate income tax, after filing a report of change in its federal taxable income in March 2010. In February 2012, GM timely filed a petition for refund with the Department of Revenue’s (“Department”) Board of Appeals. It claimed that the cap on the net loss carryover (NLC) resulted in a “progressive effective tax rate” which violated the Uniformity Clause of the Pennsylvania Constitution. It explained that “a taxpayer conducting business on a larger scale in Pennsylvania pays a higher effective tax rate than a similarly situated taxpayer conducting business on a smaller scale.” In Nextel Communications of the Mid-Atlantic, Inc. v. Commonwealth, Department of Revenue, 171 A.3d 682 (Pa. 2017), the Pennsylvania Supreme Court held that the NLC deduction applicable to corporate income tax for the tax year ending December 31, 2007 (“2007 Tax Year”), violated the Uniformity Clause. Here, the Court applied Nextel and considered GM's constitutional challenges to the NLC provisions applicable to corporate income tax in the tax year ending December 31, 2001 (“2001 Tax Year”). The Supreme Court agreed with the Commonwealth Court that Nextel applied retroactively to this case, however, it reversed the Commonwealth Court to the extent it remedied the violation of the Uniformity Clause by severing the $2 million NLC deduction cap, which would have resulted in an unlimited NLC deduction. Instead, the Supreme Court severed the NLC deduction provision in its entirety, resulting in no NLC deduction for the 2001 Tax Year. The Supreme Court affirmed the Commonwealth Court’s order to the extent it directed the Department to recalculate GM’s corporate income tax without capping the NLC deduction and issue a refund for the 2001 Tax Year, which the Court concluded was required to remedy the due process violation of GM’s rights pursuant to McKesson Corp. v. Division of Alcoholic Beverages and Tobacco, Department of Business Regulation of Florida, 496 U.S. 18 (1990). View "General Motors Corp. v. Pennsylvania" on Justia Law

In November 2021, 5he Occupational Safety and Health Administration (OSHA), the federal agency tasked with assuring a safe and healthful workplace, issued an Emergency Rule on COVID-19 Vaccination and Testing, 86 Fed. Reg. 61402. The rule does not require anyone to be vaccinated but allows covered employers—employers with 100 or more employees—to determine for themselves how best to minimize the risk of contracting COVID-19 in their workplaces. Employers may require unvaccinated workers to wear a mask on the job and test for COVID-19 weekly; they can require workers to do their jobs exclusively from home. Workers who work exclusively outdoors are exempt. The next day, the Fifth Circuit stayed the rule pending judicial review; it renewed that decision in an opinion issued on November 12. Under 28 U.S.C. 2112(a)(3), petitions challenging the rule, filed in Circuits across the nation, were consolidated into the Sixth Circuit, which dissolved the stay issued by the Fifth Circuit. The language of its enabling act plainly authorizes OSHA to act on its charge “to assure safe and healthful working conditions for the nation’s workforce and to preserve the nation’s human resources.” OSHA’s issuance of the rule is not a transformative expansion of its regulatory power, The factors regarding irreparable injury weigh in favor of the government and the public interest. View "In re: MCP No. 165, Occupational Safety and Health Admin., Interim Final Rule: COVID19 Vaccination and Testing, 86 Fed. Reg. 61402" on Justia Law

In consolidated appeals filed by Greenville County, South Carolina, the issue central to the cases involved a zoning dispute between the County and Greenville Bistro, LLC, d/b/a Bucks Racks & Ribs. Greenville Bistro filed suit against the County to enjoin the County from enforcing an ordinance to deny Greenville Bistro's desired method of operating Bucks Racks & Ribs. Citing other ordinances, the County counterclaimed and moved to enjoin Greenville Bistro from operating Bucks as a sexually oriented business. Both appeals concerned the legality of Greenville Bistro operating Bucks as a restaurant with the added feature of scantily clad exotic dancers. The circuit court granted Greenville Bistro's motion for a temporary injunction, and the County appealed. While the County's appeal was pending, another circuit court denied the County's motion for temporary injunctive relief, ruling that in light of the County's appeal it did not have jurisdiction to consider the County's motion. The South Carolina Supreme Court reversed both rulings, dissolved the injunction granted to Greenville Bistro, and held the County was entitled to injunctive relief. The case was remanded to the circuit court for further proceedings. View "Greenville Bistro, LLC. v. Greenville County" on Justia Law

Oakland businesses must obtain a business tax certificate and pay business license taxes each year, based on the type of activities in which the business is engaged. A separate business tax certificate is required for each activity of the business unless the activity comprises less than 20 percent of the total gross receipts of the business. City tax authorities determine the appropriate business tax classifications based on the information reported by the taxpayer. Host held Port Department permits to occupy space and operate food, beverage, retail, and duty-free concessions at Oakland International Airport. The permits authorized Host to sublease its space to other parties with consent. In 2015, based on an audit of Host’s financial records, an auditor determined that Host owed Oakland unpaid business taxes, penalties, interest, and fees for rental income from subleases,2006-2015. Host had obtained a business certificate and paid business tax for its retail activities, but not for subleasing.Host unsuccessfully appealed, asserting that it was engaged only in retail sales (not commercial subleasing), that the 20 percent exception applied, and that Oakland could not collect some of the back taxes because of the statute of limitations. The Board, the trial court, and the court of appeal upheld the determination of a $371,195.40 tax liability. View "Host International, Inc. v. City of Oakland" on Justia Law

This case involves the constitutionality of a business and occupation (B&O) tax. In 2019, the Washington state legislature imposed an additional 1.2 percent B&O tax on financial institutions with a consolidated net income of at least $1 billion. The tax applied to any financial institution meeting this threshold regardless of whether it was physically located in Washington, and it was apportioned to income from Washington business activity. The Washington Supreme Court found that because the tax applied equally to in- and out-of-state institutions and was limited to Washington-related income, it did not discriminate against interstate commerce. The Court therefore reversed the trial court and upheld the constitutionality of the tax. View "Washington Bankers Ass'n v. Dep't of Revenue" on Justia Law