Justia Government & Administrative Law Opinion Summaries

Johnson rented her restaurant to a private party. For unknown reasons, individuals unaffiliated with her or the party emerged from a vehicle that night and shot at the restaurant. Police were called during the shooting but never apprehended the shooters. Less than two days later, Saginaw City Manager Morales issued Johnson a notice ordering the suspension of all business activity related to her restaurant under an ordinance that permits such suspensions “in the interest of the public health, morals, safety, or welfare[.]” There was hearing three days later. More than two months after the hearing, Human Resources Director Jordan upheld the suspension. Johnson filed suit with a motion for a temporary restraining order and, alternatively, a motion for a preliminary injunction to prevent Morales from sitting on the appeal panel expected to review Jordan’s decision. The district court denied that motion. The appeal panel, which did not include Morales, held a hearing and affirmed Jordan’s decision upholding the suspension. The Sixth Circuit reversed, in part, the dismissal of Johnson’s burden-shifting, substantive due process, and equal-protection claims. Johnson adequately alleged selective enforcement and pled that the city lacked a rational basis to suspend her license. Johnson has plausibly alleged that the procedures afforded to Johnson fell short of constitutional requirements. View "Johnson v. Morales" on Justia Law

GandyDancer, LLC, and Rock House CGM, LLC, were business competitors, and both provided railway construction and repair services to BNSF Railway Company. BNSF awarded contracts to Rock House to provide goods and services in New Mexico. GandyDancer filed a complaint with the New Mexico Construction Industries Division (CID) in 2015 that alleged Rock House violated the Construction Industries Licensing Act (CILA), by performing unlicensed construction work in New Mexico. GandyDancer thereafter filed a complaint in district court against Rock House, alleging theories of competitive injury, and including a claim that Rock House engaged in unfair methods of competition to obtain contracts with BNSF contrary to the UPA. GandyDancer alleged Rock House’s acts amounted to an “unfair or deceptive trade practice” under Section 57-12-2(D) of the New Mexico Unfair Practices Act (UPA). The district court certified for interlocutory review whether the UPA supported supports a cause of action for competitive injury. The Court of Appeals accepted interlocutory review and held that a business may sue for competitive injury based on a plain reading of the UPA. The New Mexico Supreme Court reversed, because the Legislature excluded competitive injury from the causes of action permitted under that statute. Furthermore, the Court observed that Gandydancer relied upon dicta in Page & Wirtz Construction Co. v. Soloman, 794 P.2d 349. Therefore, the Court formally disavowed reliance on Page & Wirtz or prior New Mexico case law that conflicted with its opinion here. View "GandyDancer, LLC v. Rock House CGM, LLC" on Justia Law

For nearly 30 years, Chicago Studio operated the only film studio in Chicago. In 2010, Cinespace opened a new studio. Cinespace rapidly expanded its studio to include 26 more stages and 24 times more floor space than Chicago Studio’s facility. Chicago Studio subsequently failed to attract business and stopped making a profit. Chicago Studio sued the Illinois Department of Commerce and Economic Opportunity, Illinois Film Office, and Steinberg (state actors responsible for promoting the Illinois film industry), alleging that the Defendants unlawfully steered state incentives and business to Cinespace in violation of the Sherman Act and equal protection and due process protections. The Seventh Circuit affirmed the rejection of those claims. The Sherman Act claim was properly dismissed because Chicago Studio failed to adequately plead an antitrust injury but merely alleged injuries to Chicago Studio, not to competition. The complaint does not plausibly allege that Defendants conspired to monopolize or attempted to monopolize the Chicago market for operating film studios. The district court properly granted summary judgment on the equal protection claim. Chicago Studio and Cinespace are not similarly situated, and there was a rational basis for Steinberg’s conduct. Cinespace consistently reached out to Steinberg for marketing support; Chicago Studio rarely did and it was rational for Steinberg to promote the studios based on production needs. View "Chicago Studio Rental, Inc. v. Illinois Department of Commerce & Economic Opportunity" on Justia Law

Plaintiffs challenged the Board of Optometry's denial of an application for a statement of licensure submitted by Rudick, a licensed optometrist (Business and Professions Code section 3041.2), Rudick is a 49% owner of Ridge, a medical corporation, and works at one of Ridge’s four locations. Ridge employs both ophthalmologists and optometrists at each location. The Board denied Rudick’s application, stating: “you list yourself as the principal employer at the location ... you state that you are 49% shareholder in the business. Per BPC 3077 you need to submit a Branch Office License application if you have a financial interest in that location.” The trial court denied the petition, finding that the Board properly determined Rudick must comply with the branch office licensing requirements for his practice at Ridge’s Magalia office since his principal place of practice was in Paradise. The court of appeal affirmed, upholding the Board’s decision that Rudick must obtain a branch office license for each Ridge location aside from his principal place of practice; for purposes of section 3077, “office” means any place where optometry is practiced notwithstanding the fact that ophthalmology is also practiced at the location, or that the practicing optometrist is merely a minority owner of the medical corporation where he is practicing. View "Rudick v. State Board of Optometry" on Justia Law

Plaintiff-relator Matthew Omlansky, by virtue of knowledge gleaned as a state employee involved with the Medi-Cal program, brought this qui tam action in the name of the State of California alleging that defendant Save Mart Supermarkets (Save Mart) had violated the False Claims Act in its billings to Medi-Cal for prescription and nonprescription medications, charging a higher price than cash customers paid in violation of 2009 statutory provisions capping Medi-Cal charges at a provider’s usual and customary price (“statutory cap”). Per the trial court, the gist of the alleged fraud upon Medi-Cal, Save Mart generally offered a lower price for medications to cash customers, and would also match a lower price that a competitor was offering (although it appears from an exhibit to the complaint that the latter applied only to prescriptions), but did not apply these discounts from its list prices in the billings it submitted to Medi-Cal. The State declined to intervene. The trial court sustained a demurrer to the original complaint because all of the alleged violations occurred during a period when the 2009 statutory cap was subject to a federal injunction. Plaintiff then filed an essentially identical amended complaint. The only significant change was an allegation in paragraph 45 that Save Mart’s billing practices favoring cash customers continued from December 2016 to March 2017 after the expiration of the injunction, specifying six examples of “illegal pricing.” The court sustained Save Mart’s demurrer to this pleading as to two of the six grounds raised, and denied leave to amend. It entered a judgment of dismissal. Plaintiff timely appealed, but the Court of Appeal concurred with the grounds for the trial court’s ruling, thereby affirming dismissal of Plaintiff’s complaint. View "Omlansky v. Save Mart Supermarkets" on Justia Law

The North Dakota Private Investigative and Security Board appealed, and TigerSwan, LLC and James Reese cross-appealed, a judgment dismissing the Board’s request for an injunction prohibiting TigerSwan and Reese from providing private investigative and security services without a license. Reese was the majority interest owner in TigerSwan, a limited liability company organized under North Carolina law. TigerSwan was registered in North Dakota as a foreign LLC. During protests over construction of the Dakota Access Pipeline, TigerSwan was hired to provide security services, though the company denied providing such services when it received a notice from the Board. Concurrent to denying providing security services to the pipeline, TigerSwan submitted an application packet to become a licensed private security provider in North Dakota. The North Dakota Supreme Court concluded the district court did not abuse its discretion in denying the injunction or in the denial of a motion for sanctions and attorney fees. View "North Dakota Private Investigative & Security Board v. TigerSwan, LLC, et al." on Justia Law

After an Anchorage strip club applied to have its liquor license renewed the Alcohol and Beverage Control Board received multiple objections to the renewal. Former employees, the Department of Labor, and the Municipality of Anchorage each alleged wage law violations, untrustworthy management, and unsafe policies. After three hearings before the Board and one before an administrative law judge, the Board denied renewal because it was not in the public interest. The club appealed to the superior court, which affirmed the Board’s decision. The club appealed to the Alaska Supreme Court, arguing it was unreasonable to find that renewal was not in the public interest and that the club was denied due process in the administrative proceeding. After review, the Supreme Court found no reversible error and affirmed the superior court’s decision to uphold the Board’s determination. View "Fantasies on 5th Avenue, LLC. v. Alaska Alcoholic Beverage Control Board" on Justia Law

In this case, an adult cabaret featuring nude dancing challenged a municipal code provision prohibiting adult-oriented establishments from operating during early morning hours, arguing that if the provision applied to adult cabarets, it was unconstitutional under the federal and Alaska constitutional free speech provisions. The Alaska Supreme Court concluded the current municipal closing-hours restriction applied to adult cabarets, but, applying strict scrutiny, that it could not be enforced against adult cabarets in light of the Alaska Constitution’s free speech clause. The Supreme Court left open the possibility that local governments might enact constitutional closing-hours restrictions for adult cabarets, but the Court prohibited enforcement of this particular restriction because the municipal assembly failed to appropriately justify its imposition. View "Club Sinrock, LLC v Municipality of Anchorage" on Justia Law

In 2015 the Pittsburgh City Council passed and Mayor William Peduto (collectively, “the City”) signed the Paid Sick Days Act (“PSDA”) and the Safe and Secure Buildings Act (“SSBA”). Plaintiff-appellees (collectively, “Challengers”) filed suit seeking declaratory and injunctive relief, challenging the PSDA’s and SSBA’s validity on the basis that the HRC precluded the City from imposing the burdens those ordinances entailed upon local employers. The Allegheny County Court of Common Pleas considered the challenges to both laws, and found, in separate decisions issued within four days of each other, that both ordinances were ultra vires as impermissible business regulations pursuant to Section 2962(f) of the Home Rule Charter and Optional Plans Law (“the HRC”). The Pennsylvania Supreme Court was asked to consider whether these ordinances ran afoul of the qualified statutory preclusion of local regulations that burden business. The Court held that the PSDA did not exceed those limitations, but that the SSBA did. View "Pa. Rstrnt & Lodging v. City of Pittsburgh" on Justia Law

In 2005 Paramount leased a parcel of highway-adjacent property in Bellwood, Illinois, planning to erect a billboard. Paramount never applied for a local permit. When Bellwood enacted a ban on new billboard permits in 2009, Paramount lost the opportunity to build its sign. Paramount later sought to take advantage of an exception to the ban for village-owned property, offering to lease a different parcel of highway-adjacent property directly from Bellwood. Bellwood accepted an offer from Image, one of Paramount’s competitors. Paramount sued Bellwood and Image, alleging First Amendment, equal-protection, due-process, Sherman Act, and state-law violations. The Seventh Circuit affirmed summary judgment in favor of the defendants. Paramount lost its lease while the suit was pending, which mooted its claim for injunctive relief from the sign ban. The claim for damages was time-barred, except for an alleged equal-protection violation. That claim failed because Paramount was not similarly situated to Image; Paramount offered Bellwood $1,140,000 in increasing installments over 40 years while Image offered a lump sum of $800,000. Bellwood and Image are immune from Paramount’s antitrust claims. The court did not consider whether a market-participant exception to that immunity exists because Paramount failed to support its antitrust claims. View "Paramount Media Group, Inc. v. Village of Bellwood" on Justia Law