Justia Government & Administrative Law Opinion Summaries

The San Diego City Attorney filed a complaint against Experian Data Corp. on March 6, 2018, alleging a violation of the Unfair Competition Law (UCL) due to Experian's failure to promptly notify consumers of a data breach as required by Civil Code section 1798.82(a). The complaint sought civil penalties and injunctive relief. Experian demurred, arguing the claim was barred by the four-year statute of limitations. The trial court overruled the demurrer and denied summary judgment motions from both parties, finding the discovery rule could apply to delay the accrual of the claim.The trial court later granted Experian's motion in limine to exclude evidence of civil penalties, concluding the discovery rule did not apply to the UCL claim because it was a non-fraud claim and an enforcement action seeking civil penalties. The court also denied the City Attorney's motion for reconsideration and motion to file a Third Amended Complaint. The parties then stipulated to dismiss the entire complaint, and the City Attorney appealed.The California Court of Appeal, Fourth Appellate District, Division Three, reviewed the case and concluded that the discovery rule could apply to delay the accrual of the UCL claim. The court found that the nature of the claim, the enforcement action seeking civil penalties, and the involvement of a governmental entity did not preclude the application of the discovery rule. The court reversed the trial court's orders granting Experian's motion in limine and denying reconsideration, and remanded the case for further proceedings to determine when the UCL claim accrued based on the actual or constructive knowledge of the relevant actors. The court also vacated the order denying the City Attorney's request to file a Third Amended Complaint. View "P. v. Experian Data Corp." on Justia Law

Aleksia Lindsay filed an amended class action complaint against Patenaude & Felix, APC, and Transworld Systems Inc., alleging unfair debt collection practices. Lindsay had defaulted on $60,000 in student loans, and after receiving incomplete and inaccurate information from Transworld, Patenaude initiated two debt collection lawsuits against her. Lindsay later discovered that both entities had a history of unethical collection practices, leading to actions by various regulatory bodies. After the lawsuits against her were dismissed, Lindsay received another demand for payment and subsequently filed the class action complaint.The Superior Court of San Bernardino County struck Lindsay's complaint, relying on the anti-SLAPP law, and ruled that the public interest exception did not apply. Lindsay argued that the trial court erred in this decision. The trial court concluded that although the three conditions of the public interest exception were met, the action was not brought solely in the public interest because Lindsay sought damages.The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case. The court held that the action was brought solely in the public interest or on behalf of the general public, as the relief sought by Lindsay was identical to that sought for the plaintiff class. The court also found that seeking damages did not preclude the application of the public interest exception. The court concluded that the action met all three conditions of the public interest exception: it did not seek greater or different relief, it would enforce an important right affecting the public interest and confer a significant benefit, and private enforcement was necessary and placed a disproportionate financial burden on Lindsay.The Court of Appeal reversed the trial court's order, exempting Lindsay's action from the anti-SLAPP law and entitling her to costs on appeal. View "Lindsay v. Patenaude & Felix" on Justia Law

The case involves the People of the State of California, represented by the San Diego City Attorney, who filed a complaint against Kaiser Foundation Health Plan, Inc. The complaint alleged that Kaiser violated the unfair competition law (UCL) and false advertising law (FAL) by failing to maintain and update accurate health plan provider directories (PDs) as required by California Health and Safety Code section 1367.27. The People claimed that Kaiser’s inaccuracies in PDs misled consumers and harmed competitors.The Superior Court of San Diego County granted Kaiser’s motion for summary judgment, exercising its discretion to abstain from adjudicating the action. The court reasoned that the legislative framework did not impose an accuracy requirement but rather outlined procedural steps for maintaining PDs. The court concluded that adjudicating the People’s claims would require it to assume regulatory functions and interfere with policy judgments already made by the Legislature and the Department of Managed Health Care (DMHC).The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case and concluded that the trial court abused its discretion by applying the doctrine of judicial abstention. The appellate court found that section 1367.27 sets forth clear mandates for PD accuracy, which the trial court could enforce through its ordinary judicial functions. The appellate court held that the People’s enforcement of these statutory requirements would not interfere with the DMHC’s regulatory functions and that the trial court’s abstention was based on a mistaken view of the law. Consequently, the appellate court reversed the judgment and remanded the matter with directions to deny Kaiser’s motion for summary judgment. View "P. ex rel. Elliott v. Kaiser Foundation Health Plan" on Justia Law

The case involves a dispute between a taxpayers' association and a water district over the imposition of groundwater replenishment charges. The taxpayers' association alleged that the water district's charges violated constitutional provisions and unfairly benefited large agricultural businesses. The association sought a writ of mandate to stop the collection of these charges and to vacate the resolutions imposing them. They also claimed conversion, civil conspiracy, aiding and abetting, and violations of the Unfair Competition Law (UCL) against the water district's board members, general manager, and consulting firms.The Superior Court of Riverside County denied the defendants' anti-SLAPP motion, which sought to strike several causes of action on the grounds that they arose from protected activities. The court found that the public interest exemption to the anti-SLAPP statute applied. Additionally, the court sustained the defendants' demurrer to the first amended petition and complaint, finding the claims time-barred under the validation statutes. The court also awarded over $180,000 in attorney's fees to the plaintiffs, deeming the anti-SLAPP motion frivolous.The California Court of Appeal, Fourth Appellate District, Division Two, reviewed the case. The court held that the public interest exemption did not apply because the relief sought could only be provided by the water district, not the individual defendants. The court found that the anti-SLAPP motion should have been granted for most causes of action, except for conversion and the writ of mandate against the general manager. Consequently, the fee award was reversed. The court also affirmed the demurrer ruling, as the claims against the individual defendants were not legally sufficient. The case was remanded for further proceedings consistent with these findings. View "Howard Jarvis Taxpayers Assn. v. Powell" on Justia Law

A patron at Encore Boston Harbor Casino challenged the casino's practice of redeeming slot-machine tickets. When patrons finish using a slot machine, they receive a TITO ticket, which can be redeemed for cash. The casino offers two redemption options: cashier cages, which provide full cash value, and self-serve kiosks (TRUs), which dispense only bills and issue a TRU ticket for any remaining cents. The TRU ticket can be redeemed at the cashier cage or used in another slot machine. The plaintiff argued that this practice was unfair and deceptive, violating Massachusetts regulations and consumer protection laws.The case was initially filed in Massachusetts state court and then removed to federal court. The district court dismissed the plaintiff's unjust enrichment claim, ruling that an adequate legal remedy was available under Chapter 93A. The court later granted summary judgment in favor of the defendants on the remaining claims, including breach of contract, promissory estoppel, conversion, and unfair and deceptive business practices. The court found that the casino's practice did not violate its internal controls or Massachusetts regulations and that the plaintiff failed to show the practice was unfair or deceptive.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's dismissal of the unjust enrichment claim, agreeing that Chapter 93A provided an adequate legal remedy. The court also upheld the summary judgment on the remaining claims, concluding that the casino's practice of issuing TRU tickets for cents did not violate regulations or constitute unfair or deceptive practices. The court found no evidence that the practice was immoral, unethical, oppressive, or unscrupulous, and ruled that the plaintiff's common law claims also failed. View "Schuster v. Wynn Resorts Holdings, LLC" on Justia Law

Absolute Essence LLC sought to enter the medical marijuana market in Arkansas but was unable to secure a license. The company invested over a million dollars in the application process, including finding a location and addressing zoning issues. The Arkansas Medical Marijuana Commission outsourced the review process to Public Consulting Group, Inc., which scored 197 applications in two weeks. Absolute Essence received a low score and alleged that the scoring process was manipulated, with conflicts of interest among the scorers favoring larger, established players and resulting in racial disparities in license awards.The case was initially filed in state court, alleging tortious interference, fraud, racial discrimination, and civil conspiracy. The defendants removed the case to the United States District Court for the Eastern District of Arkansas, which dismissed the case for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6).The United States Court of Appeals for the Eighth Circuit reviewed the dismissal de novo. The court found that Absolute Essence's tortious interference claim failed because it did not establish a precise business expectancy with a specific third party. The fraud claim was dismissed due to a lack of justifiable reliance, as the company’s actions predated the involvement of the outside scorers. The race-discrimination claims were dismissed for failing to allege intentional discrimination, as the complaint only suggested a disparate impact without sufficient factual support. Finally, the civil conspiracy claim was dismissed because it could not stand without an underlying tort.The Eighth Circuit affirmed the district court's judgment, concluding that Absolute Essence did not plead enough facts to support any of its claims. View "Absolute Essence LLC v. Public Consulting Group LLC" on Justia Law

Nine Black, female, low- to moderate-income first-time homebuyers purchased condominium units at the RiverEast at Grandview Condominium complex through the District of Columbia’s Housing Purchase Assistance Program. Shortly after moving in, they encountered severe habitability issues, including foundation problems, sewage, and mold. Their attempts to resolve these issues were unsuccessful, leading them to file a thirteen-count lawsuit against the developers, the District of Columbia Department of Housing and Community Development (DHCD), and the RiverEast at Grandview Condominium Owner’s Association. The developers later filed for bankruptcy, and the plaintiffs were forced to evacuate their units.The Superior Court of the District of Columbia granted motions to dismiss the plaintiffs’ claims against the District and the Association for failure to state a claim. The court found that DHCD, as a District agency, was non sui juris and thus incapable of being sued. It also concluded that the plaintiffs failed to state a claim under the District of Columbia Consumer Protection Procedures Act (CPPA) because the District could not be considered a “merchant” under the statute. The court dismissed other claims, including violations of the District of Columbia Human Rights Act (DCHRA), breach of contract, intentional infliction of emotional distress (IIED), and negligence.The District of Columbia Court of Appeals reversed the trial court’s dismissal of the CPPA claim, holding that the District could be considered a merchant under the statute. The case was remanded for further consideration of whether the District’s trade practices were unfair or deceptive. The appellate court affirmed the dismissal of the DCHRA, breach of contract, IIED, and negligence claims, finding that the plaintiffs failed to sufficiently allege facts to support these claims. The court also upheld the trial court’s denial of the plaintiffs’ request to amend their complaint. View "May v. River East at Grandview" on Justia Law

Daniel Pomerantz appealed the Cannabis Control Board’s denial of his request to waive application and licensing fees for his proposed commercial cannabis cultivation establishment. Pomerantz claimed he qualified as a “social equity applicant” due to past incarceration for a cannabis-related offense and coming from a community historically impacted by cannabis prohibition. The Board determined he did not meet the criteria and denied his request.Initially, Pomerantz applied for a Tier 5 cultivation license on behalf of Rebel East, LLC, asserting he qualified for social equity status due to a past cannabis-related offense in Nevada. The Board found he was not eligible because his sentencing was deferred, and he was not incarcerated as a penalty for the offense. Pomerantz then argued he qualified as a socially disadvantaged individual due to his residency in Humboldt County, California, a region he claimed was disproportionately affected by cannabis prohibition. The Board allowed him to amend his application but ultimately found he did not demonstrate personal harm from living in Humboldt County.The Vermont Supreme Court reviewed the Board’s decision. The Court upheld the Board’s interpretation that “incarcerated” meant serving a prison sentence as a penalty for a cannabis-related conviction, which Pomerantz did not. The Court also agreed with the Board’s assessment that merely living in Humboldt County did not automatically qualify Pomerantz as being from a disproportionately impacted community. Furthermore, the Court found that Pomerantz did not sufficiently demonstrate personal harm from his residency in Humboldt County, noting his significant personal and professional advancements during that time.The Vermont Supreme Court affirmed the Board’s decision, concluding that Pomerantz did not qualify as a social equity individual applicant under the Board’s rules. View "Pomerantz v. Cannabis Control Board" on Justia Law

Bruce Jacobs, a Florida foreclosure attorney, filed a qui tam action against JP Morgan Chase Bank, N.A., alleging violations of the False Claims Act (FCA). Jacobs claimed that JP Morgan Chase forged mortgage loan promissory notes and submitted false reimbursement claims to Fannie Mae and Freddie Mac. He asserted that JP Morgan Chase used signature stamps of former Washington Mutual employees to endorse loans improperly, thereby defrauding the government by seeking reimbursement for loan servicing costs.The United States District Court for the Southern District of Florida dismissed Jacobs's initial complaint under Federal Rule of Civil Procedure 12(b)(6) for failing to plead fraud with particularity as required by Rule 9(b). The court also noted that Jacobs needed to establish that he was an original source of the information under the FCA’s public disclosure bar. Jacobs amended his complaint, but the district court dismissed it again, this time with prejudice. The court found that Jacobs still failed to meet the Rule 9(b) requirements and that the FCA’s public disclosure bar applied because the allegations had already been disclosed in three online blog articles, and Jacobs was not an original source of the information.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court's dismissal. The Eleventh Circuit held that the blog articles, which were publicly available before Jacobs filed his lawsuit, qualified as "news media" under the FCA. The court found that the allegations in Jacobs's complaint were substantially the same as those disclosed in the blog articles. Additionally, Jacobs did not qualify as an original source because his information did not materially add to the publicly disclosed allegations. Therefore, the FCA’s public disclosure bar precluded Jacobs's lawsuit. View "Jacobs v. JP Morgan Chase Bank N.A." on Justia Law

A consumer of a glucosamine-based dietary supplement filed a putative class action lawsuit against the supplement’s manufacturer and retailer under New York law. The plaintiff alleged that the supplement was mislabeled because it contained a different formulation of glucosamine than what was displayed on the front of the label and disclosed as the main ingredient on the side. Specifically, the plaintiff claimed that the product contained blended glucosamine rather than single-crystal glucosamine, which she believed to be more effective for alleviating joint pain.The United States District Court for the Eastern District of New York granted summary judgment for the defendants on federal preemption grounds. The court concluded that the plaintiff’s state law mislabeling claims were preempted by the Food, Drug, and Cosmetic Act (FDCA), which establishes national standards for the labeling of dietary supplements. The district court found that the FDCA’s comprehensive regulatory scheme and its broad preemption clauses foreclosed the plaintiff’s state law claims.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court’s judgment. The appellate court held that the plaintiff’s state law mislabeling claims were expressly preempted by the FDCA. The court reasoned that the FDCA preempts any state law that imposes labeling requirements not identical to those set forth in the FDCA and its regulations. The court found that the product’s labeling complied with the FDCA’s requirements, as the dietary ingredient “glucosamine sulfate potassium chloride” was identified using methods endorsed by the FDA. Therefore, the plaintiff’s claims were preempted, and the judgment of the district court was affirmed. View "Jackson-Mau v. Walgreen Co." on Justia Law