Justia Government & Administrative Law Opinion Summaries

Ferdinand E. Marcos, former President of the Philippines, deposited approximately $2 million in a New York Merrill Lynch account in 1972, which grew to over $40 million. These funds, known as the Arelma Assets, were proceeds of Marcos’s criminal activities. After Marcos’s ouster, multiple parties—including the Republic of the Philippines, a class of nearly 10,000 human rights victims, and the estate of Roger Roxas (from whom Marcos had stolen treasure)—asserted competing claims to these assets. The Republic obtained a forfeiture judgment from a Philippine court and requested the U.S. Attorney General to enforce it under 28 U.S.C. § 2467.The United States District Court for the Southern District of New York reviewed the enforcement application. The court rejected the class’s affirmative defenses, which included arguments based on statute of limitations, subject matter jurisdiction, lack of notice, and fraud. The court also found that Roxas lacked Article III standing because she failed to show a sufficient interest in the Arelma Assets, and denied her leave to amend her answer. The court entered judgment for the Government, allowing the assets to be returned to the Republic of the Philippines.On appeal, the United States Court of Appeals for the Second Circuit affirmed the district court’s judgment. The Second Circuit held that the class failed to create a genuine dispute of material fact as to any of its affirmative defenses and that Roxas lacked standing to participate as a respondent. The court also upheld the denial of intervention by Golden Budha Corporation, finding its interests adequately represented and lacking standing. The main holding is that the Government’s application to enforce the Philippine forfeiture judgment was timely and proper, and that neither the class nor Roxas could block enforcement or claim the assets. View "In re: Enforcement of Philippine Forfeiture Judgment" on Justia Law

The case concerns a series of actions taken by the leadership of the Consumer Financial Protection Bureau (CFPB) in early 2025, following a change in presidential administration. The new Acting Directors, first Scott Bessent and then Russell Vought, implemented measures to significantly downsize the agency. These included pausing most agency activities, terminating employees (including the Student Loan Ombudsman), canceling contracts, declining additional funding, moving to smaller headquarters, and requiring advance approval for agency work. Some statutorily required services were neglected during this period, though agency leadership later clarified that legally mandated work should continue.Several plaintiffs, including organizations representing CFPB employees and groups that use CFPB services, filed suit in the United States District Court for the District of Columbia. They alleged that the agency’s actions amounted to an unlawful attempt to “shut down” the CFPB, violating both statutory mandates and the separation of powers. The district court found that agency leadership had indeed decided to shut down the Bureau and issued a preliminary injunction. This injunction required the government to reinstate terminated employees, refrain from further firings except for cause, maintain certain services, and rescind contract terminations, among other measures.On appeal, the United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court held that the district court lacked jurisdiction over claims related to loss of employment, as such claims must proceed through the Civil Service Reform Act’s specialized review scheme. For the remaining plaintiffs, the court found that their claims did not challenge a final agency action reviewable under the Administrative Procedure Act (APA), nor did they present a constitutional claim reviewable in equity. The court concluded that the plaintiffs’ attempt to challenge an inferred, overarching decision to shut down the CFPB was not viable under the APA or in equity. Accordingly, the D.C. Circuit vacated the preliminary injunction and remanded the case. View "National Treasury Employees Union v. Vought" on Justia Law

Two minor plaintiffs attended a four-day overnight science camp operated by a private entity and organized by their public school district. After returning home, they and their parents alleged that, during the camp, they were exposed to discussions and lessons about gender identity, including being introduced to counselors who used “they/them” pronouns and being asked to state their own preferred pronouns. The plaintiffs also claimed they were not allowed to contact their parents to discuss these matters due to a camp policy prohibiting calls home. They asserted that these experiences caused them severe emotional distress and initiated professional therapy.The plaintiffs filed suit in the Superior Court of Orange County, asserting claims for intentional infliction of emotional distress (IIED) and negligent infliction of emotional distress (NIED) against both the camp operator and the school district. The camp operator responded with a special motion to strike under California’s anti-SLAPP statute (Code of Civil Procedure section 425.16), arguing that the claims arose from protected speech on matters of public interest—specifically, gender identity discussions. The trial court denied the anti-SLAPP motion, finding that the claims were not based on protected activity but rather on the lack of disclosure to parents and the prohibition on contacting them. The court also denied the plaintiffs’ request for attorney fees, finding the anti-SLAPP motion was not frivolous.On appeal, the California Court of Appeal, Fourth Appellate District, Division Three, held that the trial court erred in denying the anti-SLAPP motion in its entirety. The appellate court found that the IIED and NIED claims, to the extent they were based on exposure to gender identity discussions, arose from protected activity and lacked minimal merit, both factually and legally, under California public policy. However, claims based solely on the prohibition of calls home or sleeping arrangements did not arise from protected activity and could proceed. The order was affirmed in part, reversed in part, and remanded with directions. View "Sandoval v. Pali Institute" on Justia Law

Terri R. Winnon, a former executive assistant and controller for a group of skilled nursing facilities (SNFs) in Texas, alleged that her former employers and associated entities engaged in fraudulent schemes to obtain improper reimbursements from Medicare and Texas Medicaid. She claimed that the defendants paid unlawful kickbacks to doctors and hospital discharge planners for patient referrals and inflated therapy service bills to maximize government reimbursements. Winnon’s allegations included specific practices such as employee bonuses tied to Medicare census targets, “sham” medical directorships, and “marketing gifts” to hospital staff, as well as systematic upcoding of therapy services by a contracted provider, RehabCare.After Winnon filed her qui tam action under the False Claims Act (FCA) and related Texas statutes, the United States District Court for the District of Columbia dismissed her claims. The court found that her allegations against RehabCare were barred by the FCA’s public disclosure provision, as similar claims had already been made public in a prior lawsuit, United States ex rel. Halpin & Fahey v. Kindred Healthcare, Inc. The district court also determined that Winnon’s claims against the SNF Defendants did not meet the heightened pleading requirements of Federal Rule of Civil Procedure 9(b), as they lacked sufficient particularity regarding the alleged fraudulent conduct.On appeal, the United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s dismissals. The appellate court held that Winnon’s claims against RehabCare were precluded by the public disclosure bar because her allegations were substantially similar to those previously disclosed and she did not qualify as an “original source” under the FCA. Regarding the SNF Defendants, the court concluded that Winnon’s allegations failed to satisfy Rule 9(b)’s requirement for particularity, as she did not provide enough specific details to support a strong inference that false claims were actually submitted. The court affirmed the district court’s judgments in full. View "USA v. Lozano" on Justia Law

P&J Beverage Corporation filed a lawsuit against the City of Columbus, seeking to prevent the city from issuing an alcoholic beverage license to The Bottle Shop, LLC, and later sought to revoke the license after it was issued. P&J argued that The Bottle Shop’s location was too close to a daycare, which it claimed qualified as a “school” under city ordinances. The trial court granted summary judgment to P&J, invalidating The Bottle Shop’s license and enjoining its operation. The Bottle Shop’s attorney then emailed P&J’s attorney, referencing a potential claim for wrongful injunction if the appellate court reversed the trial court’s order, and requested a stay of the injunction pending appeal. P&J declined, and The Bottle Shop’s motion for a stay was denied by the trial court but later granted by the Court of Appeals, which ultimately reversed the trial court’s decision on the merits.Subsequently, The Bottle Shop sued P&J for both abusive litigation and wrongful injunction, seeking damages, attorney fees, and punitive damages. At trial, The Bottle Shop presented evidence of lost revenue, overhead costs, and attorney fees incurred during the period it was closed. The jury awarded substantial damages, attorney fees, and punitive damages. The trial court entered judgment accordingly. P&J moved for a directed verdict and for judgment notwithstanding the verdict, arguing, among other things, that The Bottle Shop failed to provide the statutory notice required for an abusive litigation claim. The trial court denied these motions, and the Court of Appeals affirmed, holding that the email satisfied the statutory notice requirement.The Supreme Court of Georgia reviewed the case and held that the email sent by The Bottle Shop did not satisfy the statutory notice requirement under OCGA § 51-7-84 (a) for an abusive litigation claim, as it failed to identify the civil proceeding as abusive litigation. The Court vacated the trial court’s judgment and remanded the case for further proceedings to determine what portion of the damages, if any, remain valid. View "P& J BEVERAGE CORPORATION v. THE BOTTLE SHOP, LLC" on Justia Law

After the collapse of a federally chartered credit union in Ohio in 2010, the National Credit Union Administration Board (the Board) was appointed as liquidating agent. The Board sued Eddy Zai, his wife Tina Zai, and related entities to recover tens of millions of dollars allegedly owed to the credit union. The parties settled, with the Zais agreeing to transfer a promissory note to the Board, which would collect $22 million and then transfer the note to Tina Zai. Years later, Tina Zai alleged that the Board breached the settlement by failing to timely transfer the note after collecting the agreed sum. She, along with Stretford, Ltd., filed suit against the Board for breach of contract and unjust enrichment.The United States District Court for the Northern District of Ohio dismissed the case for lack of subject-matter jurisdiction, without reaching the merits of Zai’s claims. The district court reasoned that the Federal Credit Union Act’s jurisdiction-stripping provision barred the court from hearing the case, as Zai had not exhausted administrative remedies with the Board.On appeal, the United States Court of Appeals for the Sixth Circuit reviewed whether the district court had jurisdiction. The Sixth Circuit held that the Federal Credit Union Act’s jurisdiction-stripping and administrative-exhaustion provisions apply only to claims that arise before the Board’s claims-processing deadline. Because Zai’s claim for breach of the settlement agreement arose years after the deadline, she was not required to exhaust administrative remedies, and the jurisdictional bar did not apply. The Sixth Circuit vacated the district court’s dismissal and remanded the case for further proceedings. View "Zai v. National Credit Union Administration Board" on Justia Law

In this case, the plaintiff brought a defamation claim against Donald J. Trump, based on statements he made in June 2019 during his first term as President. The suit was initially filed in New York state court. In September 2020, the Department of Justice, acting under the Westfall Act, certified that Trump was acting within the scope of his employment and removed the case to federal court, seeking to substitute the United States as the defendant. The District Court for the Southern District of New York denied substitution, finding Trump was not acting within the scope of his employment. Trump appealed, and the United States Court of Appeals for the Second Circuit reversed in part, vacated in part, and certified a question to the D.C. Court of Appeals regarding the scope of employment under D.C. law. The D.C. Court of Appeals clarified the law but did not resolve whether Trump’s conduct was within the scope of employment. The Second Circuit remanded for the District Court to apply the clarified law.On remand, the Department of Justice declined to certify that Trump was acting within the scope of his employment, and neither Trump nor the government sought substitution before trial. The case proceeded to trial, and a jury found in favor of the plaintiff, awarding substantial damages. Trump appealed. After the appeal was fully briefed, and after Trump began his second term as President, Trump and the government jointly moved in the Second Circuit to substitute the United States as a party under the Westfall Act.The United States Court of Appeals for the Second Circuit denied the motion to substitute. The court held that the motion was statutorily barred by the Westfall Act because it was not made before trial, that both Trump and the government had waived any right to seek substitution by failing to timely petition the District Court, and that equitable considerations also warranted denial of the belated motion. View "Carroll v. Trump" on Justia Law

A four-year-old child drowned after wandering unattended from the home where she had been placed under temporary custody by order of the Probate Court. The child’s parents had previously lost guardianship, and the court had vested temporary custody in maternal relatives. To determine whether to grant a full transfer of guardianship, the Probate Court ordered the Department of Children and Families (DCF) to investigate the home and report its findings. DCF submitted its report, recommending the placement, but before the court could hold a hearing on permanent guardianship, the child died. The child’s estate, through her father as administrator, alleged that DCF’s negligence in investigating the placement and in making recommendations to the Probate Court was a proximate cause of the child’s death, and also claimed DCF failed to fulfill independent duties to protect the child from abuse and neglect.After the estate received permission from the Claims Commissioner to sue the state, DCF moved to dismiss the action in the Superior Court, arguing that it was entitled to absolute quasi-judicial immunity for actions integral to the judicial process, such as conducting court-ordered investigations and making recommendations. The Superior Court agreed, holding that DCF was protected by absolute quasi-judicial immunity when acting as an arm of the Probate Court, and that the Claims Commissioner could not waive this immunity. The court dismissed the action, finding the complaint’s allegations insufficient to overcome DCF’s immunity.On appeal, the Connecticut Supreme Court held that the Claims Commissioner’s waiver of sovereign immunity under the relevant statute does not preclude the state from asserting absolute quasi-judicial immunity. However, the Court reversed in part, concluding that some of the estate’s allegations may fall outside the scope of quasi-judicial immunity, particularly those involving DCF’s independent statutory duties. The case was remanded for further proceedings to determine which claims, if any, are not barred by quasi-judicial immunity. View "Jamie G. v. Dept. of Children & Families" on Justia Law

The appellant, a Slovenian-born U.S. permanent resident, claimed to have discovered billions of dollars dispersed across Africa after the death of Muammar Gaddafi. He sought to repatriate these funds to the United States and enlisted the help of a Washington, D.C. lawyer. The appellant alleged that, during his efforts in Kenya and Côte d'Ivoire, he was unable to complete the repatriation due to issues with verifying the legitimacy of Treasury Department letters. He further claimed that, while detained in Côte d'Ivoire, the funds were stolen and replaced with counterfeit cash, and that he was later arrested for alleged money laundering and misrepresentation of U.S. documents. Upon returning to the United States, the lawyer withdrew representation due to the criminal allegations against the appellant.The United States District Court for the District of Columbia dismissed the appellant’s fraud claims in two parts. First, it found that the complaint failed to allege any actionable misrepresentation by the lawyer, noting that the lawyer had provided legal services as agreed. Second, for the claims against three federal employees, the court allowed the United States to substitute itself as defendant under the Westfall Act, as the employees were acting within the scope of their employment. The court then dismissed the claim against the United States on the basis of sovereign immunity.The United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s decision. It held that the appellant’s complaint did not allege with particularity any fraudulent misrepresentation by the lawyer at the time of contract formation. Regarding the federal employees, the court found that the appellant failed to rebut the government’s certification that the employees acted within the scope of their employment, and thus sovereign immunity barred the claim. The court also denied the appellant’s request for leave to amend and for jurisdictional discovery. View "Plevnik v. Sullivan" on Justia Law

Plaintiffs, including Mike Yoder and his company Drone Deer Recovery, LLC (DDR), along with hunter Jeremy Funke, challenged a Michigan law that bans the use of drones to hunt or collect downed game. DDR uses drones equipped with infrared cameras to locate downed game and provide hunters with GPS coordinates. Plaintiffs argued that the law prevents DDR from operating in Michigan, violating their First Amendment rights to create, disseminate, and receive information.The United States District Court for the Western District of Michigan dismissed the complaint, holding that Plaintiffs lacked standing and failed to state a claim. The court found that the law did not prohibit the dissemination of location information but only the use of drones to locate game, which it deemed non-speech conduct. The court also concluded that the alleged injury was not redressable because the law would still prohibit drone use even if the requested injunction was granted.The United States Court of Appeals for the Sixth Circuit reviewed the case and found that Plaintiffs had standing but failed to state a claim. The court determined that Plaintiffs' intended conduct of using drones to create and share location information was arguably affected with a constitutional interest and that there was a credible threat of enforcement under the Michigan law. However, the court applied intermediate scrutiny, finding the law content-neutral and justified by substantial governmental interests in conservation and fair-chase hunting principles. The court concluded that the law was narrowly tailored to achieve these interests and did not violate the First Amendment.The Sixth Circuit affirmed the district court's dismissal of the complaint, holding that Plaintiffs failed to state a claim on which relief could be granted. View "Yoder v. Bowen" on Justia Law