Justia Government & Administrative Law Opinion Summaries

Articles Posted in Business Law
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In an action filed by the government to enjoin the vertical merger between AT&T and Time Warner under Section 7 of the Clayton Act, the DC Circuit affirmed the district court's denial of the government's request for a permanent injunction. At issue on appeal was the district court's findings on its increased leverage theory whereby costs for Turner Broadcasting System's content would increase after the merger, principally through threats of long-term "blackouts" during affiliate negotiations.The court held that the government failed to clear the first hurdle in meeting its burden of showing that the proposed merger was likely to increase Turner Broadcasting's bargaining leverage. Furthermore, the government's objections that the district court misunderstood and misapplied economic principles and clearly erred in rejecting the quantitative model were unpersuasive. In this case, the government offered no comparable analysis of data for prior vertical mergers in the industry that showed "no statistically significant effect on content prices" as defendants had. Additionally, the government's expert opinion and modeling predicting such increases failed to take into account Turner Broadcasting System's post-litigation irrevocable offers of no-blackout arbitration agreements, which a government expert acknowledged would require a new model. The court also held that the evidence indicated that the industry had become dynamic in recent years with the emergence of distributors of only on-demand content, such as Netflix and Hulu. View "United States v. AT&T, Inc." on Justia Law

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From November 2004 to January 2011, The Door Shop, Inc., utilized $36,081.86 of electricity from Alcorn County Electric Power Association (ACE). But because of a billing error, it was charged only $10,396.28. Upon discovering the error, ACE sought to recover the $25,658.58 difference via supplemental billing. The Door Shop refused to pay, which prompted ACE to file suit. The Mississippi Supreme Court determined that as a matter of law, the Door Shop had to pay, and affirmed the circuit court's order. View "The Door Shop, Inc. v. Alcorn County Electric Power Association" on Justia Law

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After the Settlement Agreement Appeal Panel affirmed the Claim Administrator's classification of the Arcadia Facility as a "Failed Business," Graphic Packaging sought and was denied discretionary review from the district court. The Fifth Circuit affirmed the district court's denial of discretionary review, holding that the Appeals Panel did not misapply the Settlement Agreement. Even if it did, Graphic Packaging merely disputed the correctness of a discretionary administrative decision in the facts of a single claimant's case. The court rejected Graphic Packaging's remaining claim that the decision merits review because it contradicts a previous Appeals Panel decision. View "Claimant ID 100262194 v. BP Exploration & Production, Inc." on Justia Law

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In a contract dispute between film producer Adam Rosenfelt and the Mississippi Development Authority ("MDA"), Rosenfelt claimed the MDA promised loan guarantees so he could make movies in Mississippi. He made one film, which was not financially successful, and the MDA refused to guarantee the loan for his next project. Rosenfelt claimed the MDA breached a contract with him, personally. The Mississippi Supreme Court concluded Rosenfelt lacked standing to file suit: the actual documents showed any agreement was between the MDA and one or more LLCs, not Rosenfelt personally. Furthermore, the Court determined no error has been shown as to the dismissal of one of those LLCs, Element Studios, LLC, for want of standing. View "Rosenfelt v. Mississippi Development Authority" on Justia Law

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From 1910 until 1986, Greenlease Holding Co. (“Greenlease”), a subsidiary of the Ampco-Pittsburgh Corporation (“Ampco”), owned a contaminated manufacturing site in Greenville, Pennsylvania. Trinity Industries, Inc. and its wholly-owned subsidiary, Trinity Industries Railcar Co. (collectively, “Trinity”), acquired the site from Greenlease in 1986 and continued to manufacture railcars there until 2000. An investigation by Pennsylvania into Trinity’s waste disposal activities resulted in a criminal prosecution and eventual plea-bargained consent decree which required, in relevant part, that Trinity remediate the contaminated land. That effort cost Trinity nearly $9 million. This appeal arose out of the district court’s determination that, under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), and Pennsylvania’s Hazardous Sites Cleanup Act (“HSCA”), Trinity was entitled to contribution from Greenlease for remediation costs. The parties filed cross-appeals challenging a number of the district court’s rulings, including its ultimate allocation of cleanup costs. The Third Circuit ultimately affirmed the district court on several pre-trial rulings on dispositive motions, vacated the cost allocation determination and remanded for further proceedings. View "Trinity Industries Inc v. Greenlease Holding Co." on Justia Law

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Following an investigation into violations of the Secondhand Dealers Law (SDL), the State of California, by and through the District Attorneys of Riverside and Shasta Counties, filed an action pursuant to Business and Professions Code section 17200 et seq., (Unfair Competition Law or UCL) to enjoin petitioner GameStop, Inc., (GameStop) against noncompliance. GameStop filed a motion to remove the action from the County of Riverside pursuant to Code of Civil Procedure section 394, claiming that the district attorney, as an official elected by the County of Riverside, was a local governmental entity. The trial court denied the motion, giving rise to this petition for writ of mandate by GameStop. The SDL requires secondhand dealers to report the name, address, and photo identification of the seller, a complete description of the serialized property, a certification from the seller that she or he is the owner of the property, and a fingerprint of the seller. During the time period enumerated in the complaint, GameStop failed to comply with the reporting, holding, and inspection requirements of the SDL. The Court of Appeal concluded the mandatory removal provisions of section 394 were inapplicable to UCL actions brought by a district attorney to enforce provisions of the statewide SDL, and denied GameStop's petition for relief. View "GameStop, Inc. v. Superior Court" on Justia Law

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In November 2014, officers from the Pennsylvania State Police, Bureau of Liquor Control Enforcement (Bureau) conducted an investigation regarding underage persons present inside appellee Jet-Set Restaurant, LLC (Jet-Set), a licensed establishment located in Reading, Berks County. Bureau officers identified four underage females inside Jet- Set. The officers observed three of the four females enter Jet-Set after providing a doorman with identification that showed they were underage. Bureau officers also observed one of the females purchase a bottle of beer inside Jet-Set and another one of the females consume two bottles of beer purchased by another customer. Bureau officers subsequently learned one of the females had been inside Jet-Set before. The Bureau cited Jet-Set for: (1) permitting minors to frequent the premises in violation of Section 4-493(14) of the Liquor Code (frequenting count); and (2) furnishing alcohol to underage minors in violation of Section 4-493(1) of the Liquor Code, 47 P.S. 4-493(1) (furnishing count). The Bureau appealed the dismissal of the frequenting count, but both the Pennsylvania Liquor Control Board and the Berks County Court of Common Pleas affirmed the dismissal on the basis that “frequent” means “to visit often or to resort to habitually or to recur again and again, or more than one or two visits” and the Bureau had not established a violation based on the isolated occurrence observed by Bureau officers in November 2014. The Pennsylvania Supreme Court granted discretionary review to determine whether the definition of “frequent” set forth in Appeal of Speranza, 206 A.2d 292 (Pa. 1965) continued to apply to Section 4-493(14) of the Liquor Code, 47 P.S. 4-493(14), in light of subsequent amendments to the statute. The Court concluded Speranza still controlled and, accordingly, affirmed the order of the Commonwealth Court. View "Pa. St. Police v. Jet-Set Restaurant, LLC" on Justia Law

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A commercial tenant breached its lease and owed unpaid rent. The landlord sued and obtained a writ of attachment against any funds owed the tenant from Alaska’s Department of Health and Social Services (DHSS). DHSS replied to the writ by stating it owed nothing to the tenant because a recent audit showed the tenant owed DHSS $1.4 million. Without responding to DHSS’s reply the landlord moved for a writ of execution against DHSS, which the superior court denied after finding there were no funds to attach. The court denied the landlord’s motion for reconsideration, as well as its request for a hearing to examine DHSS. The landlord appealed the denial of its motion for reconsideration and sought a remand for a hearing to examine DHSS. In affirming the superior court, the Alaska Supreme Court concluded the superior court was correct in denying reconsideration of its order regarding the writ of execution. View "Arcticorp v. C Care Services, LLC" on Justia Law

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In this case, the issue presented for the Louisiana Supreme Court’s review centered on whether a City of New Orleans ordinance levying a gallonage tax based on volume upon dealers who handle high alcoholic content beverages was a valid exercise of its authority to levy and collect occupational license taxes within the meaning of La. Const. Art. VI, sec. 28. The trial court declared the ordinance unconstitutional. The Supreme Court found the portion of the ordinance at issue was not an unconstitutional exercise of the City’s taxing authority. Thus, the Court reversed the trial court’s grant of summary judgment in favor of the plaintiffs, and remanded to the trial court for further proceedings. View "Beer Industry League of Louisiana v. City of New Orleans" on Justia Law

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Appellant Maxim Cabaret, Inc. d/b/a Maxim Cabaret was a strip club in Sandy Springs, Georgia, and appellant Theo Lambros was the club’s operator, sole shareholder, and president (collectively “Maxim”). Maxim appealed the superior court's order granting summary judgment to the City of Sandy Springs on Maxim’s legal challenges to city ordinances. The Georgia Supreme Court held that Maxim’s challenges to prior versions of the City’s ordinances that have since been replaced or amended were moot; current adult business ordinances prohibiting the sale of alcohol at businesses that offer live nude entertainment constitutionally regulate negative secondary effects of strip clubs without unduly inhibiting free speech or expression; and because the City may constitutionally prohibit Maxim from obtaining a license to sell liquor on its premises under the City’s adult business licensing ordinances, Maxim lacked standing to challenge the City’s alcohol licensing regulations. View "Maxim Cabaret v. City of Sandy Springs" on Justia Law