Justia Government & Administrative Law Opinion Summaries

In the case before the United States Court of Appeals for the Sixth Circuit, the defendant, Thomas O’Lear, was convicted of healthcare fraud, making a false statement in connection with healthcare services, and aggravated identity theft. O’Lear ran a company that provided mobile x-ray services to residents in nursing homes. However, he used the company to defraud Medicare and Medicaid programs by billing for fictitious x-rays using the identities of nursing-home residents. When an audit revealed the fraud, O’Lear attempted to conceal it by forging staff names and duplicating x-rays in the patient files.On appeal, O’Lear raised several questions. Firstly, he questioned whether his Sixth Amendment right to an impartial jury was violated by excluding individuals who had not been vaccinated against COVID-19 from the jury pool. The court ruled that the unvaccinated do not qualify as a “distinctive group” that can trigger Sixth Amendment concerns. Secondly, O’Lear questioned whether the nursing-home residents were “victims” of his fraud under a “vulnerable victims” sentencing enhancement, even though the monetary losses were suffered by Medicare and Medicaid. The court ruled that the residents were indeed victims, as O’Lear had used their identities and health records without their permission, which constituted taking advantage of them.O’Lear also challenged his two aggravated-identity-theft convictions and objected to his 180-month sentence on various grounds, but these arguments were also dismissed by the court. Ultimately, the court affirmed O’Lear's conviction and sentence. View "United States v. O'Lear" on Justia Law

In this case, the United States Court of Appeals for the Sixth Circuit affirmed the lower court's decision that the motion to intervene by Local Roots Cannabis Company (Local Roots) was moot due to a settlement between the plaintiffs, Liberty Wellness, LLC and Jonathan Moses, and the defendant, the City of Perry, Michigan. The litigation arose after the City refused to implement a voter-approved marijuana facility licensing scheme, which the plaintiffs sought to compel through a declaratory relief action. While the litigation was pending, Local Roots, which received a license under the City's alternative licensing regime, moved to intervene. However, before the court ruled on the intervention motion, the plaintiffs and the City settled their dispute and dismissed the case, causing the court to deem the intervention motion moot. Local Roots appealed, arguing that the stipulation of dismissal was invalid because it did not consent to it and that its intervention motion was not moot because the lower court retained jurisdiction to enforce the settlement agreement. The appeals court held that Local Roots did not become a party under Rule 41 until the district court granted its motion to intervene and that it did not need to sign the stipulation for it to be effective, confirming the validity of the stipulation of dismissal. Furthermore, the court clarified that the dismissal of the case mooted Local Roots' motion to intervene as the lower court only retained jurisdiction to enforce the settlement agreement and not to reopen the whole case. View "Moses v. City of Perry, Mich." on Justia Law

In a dispute involving a power grid operator, PJM Interconnection, L.L.C., and the Federal Energy Regulatory Commission (FERC), the United States Court of Appeals for the Sixth Circuit ruled that the Chairman of FERC exceeded his authority by seeking a remand of a ratemaking challenge without the support of other Commission members.The case originated when PJM filed a request to modify its existing rates for electricity reserves, arguing that the existing rates were unjust and unreasonable. Initially, FERC agreed and approved the new rates. However, after a change in FERC's composition and a unilateral decision by the Chairman to request a voluntary remand from the D.C. Circuit for reconsideration, FERC reversed its decision and found PJM's evidence insufficient.The Sixth Circuit's ruling focused on the procedural irregularity, specifically the Chairman's unilateral decision to seek a remand, which it deemed exceeded his administrative authority. The court stated that a quorum majority must decide the Commission’s policy and dealings with the outside world, and the Chairman acting alone does not meet this requirement. As such, the court vacated the part of FERC's rehearing order that claimed the Chairman had this unilateral authority and remanded the matter back to FERC to address this issue.The court did not address the substantive issue of whether FERC's reversal on the ratemaking decisions was arbitrary and capricious. It noted that any interested party may renew a petition to challenge that decision after FERC resolves the procedural issue. View "PJM Power Providers Grp. v. FERC" on Justia Law

In a case involving the Federal Energy Regulatory Commission (FERC) and the Electric Power Supply Association and PJM Power Providers Group (collectively, PJM), the United States Court of Appeals for the Sixth Circuit had to address two questions. The first was whether the Chairman of FERC exceeded his authority when he moved for a remand of a ratemaking challenge without the support of any other members of the Commission, and the second was whether FERC's underlying ratemaking decisions were arbitrary and capricious.The case arose from PJM's request to FERC to raise the reserve price cap for electricity from $850 to $2,000 per megawatt hour and to replace the flat $300 per megawatt hour cap after Step 1 with a downward sloping price schedule. Initially, FERC agreed with PJM that the existing price cap and stepwise demand curve were unjust and unreasonable. However, after a change in the composition of the FERC, the Commission sought a voluntary remand from the D.C. Circuit to reconsider its prior decisions. The D.C. Circuit granted the unopposed motion for remand. On remand, the Commission reversed its previous decision and found PJM's evidence insufficient to show that the price caps for reserves and stepwise demand curve were unjust and unreasonable.PJM and others sought rehearing before the Commission, citing a procedural irregularity - the Chairman had directed FERC's Solicitor to seek remand without first informing the other Commissioners - and challenging the substance of the agency’s shift in views. The Commission rejected the request for rehearing but issued a modified order, reaching the same result, and reasoning that Chairman Glick had the unilateral authority to make the remand motion.The Court of Appeals for the Sixth Circuit held that the Chairman of FERC exceeded his legal authority when he requested a remand in the name of the Commission on his own. The court vacated part of the Commission’s order claiming the Chairman had this unilateral authority and remanded the case back to the Commission to decide what, if anything, it could or would have done differently in response to this legal mistake. The court did not rule on whether FERC's underlying ratemaking decisions were arbitrary and capricious, leaving it to the Commission to first resolve the legal mistake. View "Electric Power Supply Ass'n v. FERC" on Justia Law

In this case, a prisoner named Lyle Heyward filed a complaint alleging that prison officials frustrated his attempts to celebrate Ramadan, a holy month for Muslims, in violation of the First and Fourteenth Amendments and the Religious Land Use and Institutionalized Persons Act (“RLUIPA”). He also alleges that officials retaliated against him for filing grievances in violation of the First Amendment. The United States Court of Appeals for the Sixth Circuit affirmed the dismissal of Heyward’s Religious Land Use and Institutionalized Persons Act (RLUIPA) claim, as RLUIPA does not permit money damages claims against state prison officials in their individual capacities, and his requests for injunctive relief were mooted by his transfer to a different prison facility.However, the court reversed the dismissal of Heyward’s First Amendment retaliation claim against Defendant Guise, finding that Heyward had adequately pleaded a retaliation claim. Specifically, Heyward alleged that after he filed a grievance against Guise, she threatened members of the Cultural Awareness Inmate Group to kick Heyward out of the organization or else the organization would be shut down. The court found these allegations sufficient to suggest that Guise's action was motivated at least in part by Heyward’s grievance-filing.The court also reversed the dismissal of Heyward’s Equal Protection Clause claim against Defendants Cooper, Smith, Davis, and Factor. Heyward alleged these officials treated members of other faith traditions differently than they treated Muslims. The court found that Heyward’s allegations of a facially discriminatory distinction between different religious groups sufficiently alleged an equal-protection violation.The case was remanded for further proceedings. View "Heyward v. Cooper" on Justia Law

In the case before the United States Court of Appeals for the Sixth Circuit, Jennings Maynard, a coal miner with severe respiratory issues, filed a claim for benefits under the Black Lung Benefits Act. After his death while the claim was pending, his widow, Elizabeth Maynard, filed a claim for survivor’s benefits. The Administrative Law Judge (ALJ) awarded benefits to Elizabeth Maynard on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision. The petitioner, Island Creek Coal Company, sought review of the award.The court denied the petition for review. The court explained that Maynard had worked in the coal mining industry for over forty-three years and had developed severe respiratory issues. Maynard's widow, Elizabeth, filed a claim for survivor's benefits after her husband's death. The ALJ awarded benefits to Elizabeth, both on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision.The court held that substantial evidence supported the ALJ's findings that Maynard was totally disabled due to his elevated PCO2 values and that the petitioner failed to provide persuasive contrary evidence. The court also found that substantial evidence supported the ALJ's conclusion that the petitioner failed to rebut the presumption that Maynard's respiratory impairment, which contributed to his total disability, arose out of coal mine employment. The court determined that the ALJ properly discredited the medical opinions offered by the petitioner's experts because these opinions were inconsistent with the regulations of the Black Lung Benefits Act and the Department of Labor's determinations. The court therefore denied the petitioner's request for review. View "Island Creek Coal Co. v. Elizabeth Maynard" on Justia Law

In 2021, the Department of Health and Human Services (HHS) issued a final rule governing the Title X program, which makes grants to assist in the establishment and operation of family planning projects. The Rule interpreted section 1008 of Title X, which bars funds appropriated under the Title X grant program from being “used in programs where abortion is a method of family planning.” States challenged the 2021 Rule’s elimination of a prior HHS rule that required grantees to maintain strict physical and financial separation between Title X programs and abortion-related services they might provide and the Rule’s requirement that Title X projects provide referrals for abortion services when requested by the patient.The Supreme Court has held (“Rust,” 1991) that section 1008 is ambiguous as to program integrity and referrals for abortion and that Chevron deference applies. The Sixth Circuit held Ohio is entitled to a preliminary injunction enjoining the government from enforcing the 2021 Rule’s program integrity rules in Ohio in a manner that would affect the allocation of funding in Ohio. While the doctrinal landscape undergirding Rust has shifted significantly since it was decided, Rust, and its application of Chevron, remain binding. The 2021 Rule’s referral requirement is not an impermissible interpretation of section 1008 but the program-integrity requirements do not represent a permissible interpretation. View "State of Ohio v. Becerra" on Justia Law

The IRS may penalize taxpayers who fail to report a “listed transaction” that the agency determines is similar to one already identified as a tax-avoidance scheme, 26 U.S.C. 6707A(a), (c)(2). IRS Notice 2007-83 listed employee-benefit plans with cash-value life insurance policies. In 2013, Mann created trusts for its co-owners that paid the premiums on their cash-value life insurance policies. Mann deducted the expenses on its tax forms, and the owners counted the death benefits as income. None of them reported the trusts as a listed transaction.In 2019, the IRS determined that the trusts failed to comply with Notice 2007-83 and imposed penalties, which were paid. After the IRS refused requests for refunds, the taxpayers filed suit. The district court granted the IRS summary judgment on a claim that the Notice violated the Administrative Procedures Act’s notice-and-comment requirements. The Sixth Circuit reversed, concluding that Notice 2007- 83 was a legislative rule that lacked exemption from the requirements; “we must set [Notice 2007-83] aside” and “need not address the taxpayers’ remaining claims.”Before the district court ruled on remand, the IRS refunded the past penalties with interest and agreed not to apply the Notice to anyone within the Sixth Circuit. The district court concluded that it retained jurisdiction to set aside and vacate the Notice nationwide. The Sixth Circuit vacated. The taxpayers sought a refund of past tax penalties and prospective relief against Notice 2007-83; the IRS’s actions mooted their claim and left nothing more for the court to do. View "Mann Construction, Inc. v. United States" on Justia Law

In April 2015, federal agent Quinn shot and killed Kellom while trying to arrest him. Kellom’s estate sued Quinn under the Federal Tort Claims Act with a “Bivens” excessive-force claim. The government replaced Quinn as the defendant in the tort claims. The estate then filed an unsuccessful claim with Quinn’s employer, DHS. The FTCA requires plaintiffs to seek relief “first” from the federal agency within two years: the government notified the estate that it needed to bring a new lawsuit for its FTCA claims. Instead, in May 2018, the estate amended its complaint, asserting the same claims. The district court treated the FTCA exhaustion requirement as jurisdictional and dismissed the FTCA claims. The Bivens claim proceeded. A jury ruled in Quinn’s favor. Meanwhile, Kellom’s family members brought FTCA claims by joining the estate’s amended complaint, which was filed in May 2018. The family had not sought relief from DHS, so the district court dismissed those claims. In October 2018, the family filed a claim with DHS. DHS denied the claim. Rather than rejoin the estate’s lawsuit, the family filed a new one. The district court dismissed the family’s claims as untimely.The Sixth Circuit affirmed. The government did not waive or forfeit its exhaustion defense in the estate’s case by failing to oppose a motion to amend. The estate did not cure its failure to exhaust by filing an amended complaint. The family’s claims were untimely. View "Kellom v. Quinn" on Justia Law

In 1970, Michigan voters approved Proposal C, amending Article VIII, section 2 of Michigan’s constitution: “No public monies or property shall be appropriated or paid or any public credit utilized, by the legislature or any other political subdivision or agency of the state directly or indirectly to aid or maintain any private, denominational or other nonpublic, pre-elementary, elementary, or secondary schools.” The plaintiffs allege that Proposal C was spurred by the legislature’s passage of 1970 PA 100, which “allowed the Department of Education to purchase educational services from nonpublic schools in secular subjects,” and authorized $22 million in spending during the 1970-71 school year. Plaintiffs allege that “nonpublic schools” meant “religious schools”; opposition to 1970 PA 100 resulted in Proposal C. In 2000, Michigan voters rejected a ballot initiative that would have amended the section to authorize “indirect” support of non-public school students and create a voucher program for students in underperforming public school districts to attend nonpublic schools.Plaintiffs brought unsuccessful free exercise claims, alleging they have funded Michigan Education Savings Program plans and wish to use those plans to pay for their children’s religious school tuition. The Sixth Circuit affirmed the dismissal of their equal protection claim that section 2, while facially neutral, creates a political structure that unconstitutionally discriminates against religion because religious persons and schools cannot lobby their state representatives for governmental aid or tuition help without first amending the state constitution. View "Hile v. State of Michigan" on Justia Law