Justia Government & Administrative Law Opinion Summaries

A former employee of a pharmaceutical manufacturer brought a qui tam lawsuit under the False Claims Act, alleging that the company improperly calculated and reported its “Best Price” for certain drugs to the Centers for Medicare and Medicaid Services (CMS), as required under the Medicaid Rebate Statute. The plaintiff claimed that, during a period from 2005 to 2014, the company failed to aggregate multiple rebates and discounts given to different entities on the same drug, resulting in inflated “Best Price” reports and underpayment of rebates owed to Medicaid. The complaint asserted that the company was subjectively aware that CMS interpreted the statute to require aggregation of all such discounts, especially after the company’s communications with CMS during a 2006–2007 rulemaking process and the company’s subsequent internal audit.After the government and several states declined to intervene, the United States District Court for the District of Maryland dismissed the amended complaint, finding that, even under the subjective scienter standard established in United States ex rel. Schutte v. SuperValu Inc., the plaintiff had not plausibly alleged that the company acted with actual knowledge, deliberate ignorance, or reckless disregard as to the truth or falsity of its reports. The district court also suggested that ambiguity in the statute precluded a finding of falsity.On appeal, the United States Court of Appeals for the Fourth Circuit reviewed the dismissal de novo. The Fourth Circuit held that the plaintiff’s allegations—including the company’s awareness of CMS’s interpretation of the rule, its targeted audit and compliance efforts, and its continued use of non-aggregated reporting—plausibly alleged the requisite subjective scienter under the False Claims Act. The court clarified that statutory ambiguity does not, at the pleading stage, negate scienter or falsity, and remanded for the district court to address other elements, including falsity, in the first instance. The Fourth Circuit reversed the dismissal and remanded for further proceedings. View "United States ex rel. Sheldon v. Allergan Sales, LLC" on Justia Law

Dr. John Peterson, a pain-management physician employed at a Veterans Affairs healthcare facility in Illinois, was placed on summary suspension in 2020 due to concerns about his patient care, particularly relating to the management of opioid and benzodiazepine prescriptions. He was notified of the suspension, informed of his right to respond, and told a comprehensive review would follow. After several extensions—largely due to the COVID-19 pandemic—a review concluded that Peterson should be removed for failing to provide appropriate medical care and for failing to follow instructions during his suspension. Peterson was given notice of the charges, access to the evidence against him, and the right to respond, but did not submit a timely reply. He was subsequently removed from his position.Peterson appealed his removal to the Veterans Administration Disciplinary Appeals Board, which held a hearing and allowed him multiple postponements to secure an expert witness. Ultimately, Peterson submitted a lengthy rebuttal the night before the hearing, which the Appeals Board excluded as untimely. After questioning Peterson directly, the Appeals Board sustained most charges and upheld his removal. The decision was reviewed and approved by the Deputy to the VA Undersecretary for Health. Peterson then filed suit in the United States District Court for the Central District of Illinois, challenging the procedures and alleging due process violations. The district court found the procedures adequate, the evidentiary exclusion justified, and the agency’s actions not arbitrary or capricious, granting summary judgment for the defendants.The United States Court of Appeals for the Seventh Circuit reviewed the case de novo and held that the procedures Peterson received were adequate under due process and agency law. The court affirmed the district court’s judgment, finding no basis to disturb the agency’s decision. View "Peterson v. Collins" on Justia Law

Lieutenant Ernest Mitchell, a U.S. Navy officer, was serving as the Command Duty Officer aboard the USS Howard when he left the ship without authorization to move his car prior to the ship’s relocation. He failed to inform his commanding officer or transfer his duties to another qualified person during his absence. This incident, along with prior documented deficiencies in communication and adherence to standards, led to a series of disciplinary actions. These included his detachment from the ship for cause, findings by a Board of Inquiry of violations under the Uniform Code of Military Justice, delay and eventual removal from a promotion list, and denial of his efforts to remove adverse records and secure his promotion.After exhausting administrative remedies, Mitchell filed suit against the Secretary of the Navy in the United States District Court for the District of Columbia, alleging that the Navy’s actions violated the Administrative Procedure Act. The district court granted summary judgment in favor of the Secretary, determining that the Navy’s actions were reasonable and supported by a satisfactory explanation.The United States Court of Appeals for the District of Columbia Circuit reviewed the district court’s decision de novo, applying a highly deferential standard to the military’s factfinding. The appellate court rejected Mitchell’s argument that he was entitled to promotion by operation of law under 10 U.S.C. § 624(d), holding that the statute does not mandate automatic appointment if the Executive decides against it. The court also found that the Board for Correction of Naval Records did not act arbitrarily or capriciously in concluding Mitchell demonstrated substandard performance over an extended period. Accordingly, the court affirmed the district court’s judgment in favor of the Secretary of the Navy. View "Mitchell v. Phelan" on Justia Law

The case concerns a challenge brought by two renewable fuel industry groups to a 2020 rule issued by the Environmental Protection Agency (EPA) under the Clean Air Act’s Renewable Fuel Standard (RFS) Program. The challenged rule established the percentage of renewable fuel that refiners and importers must include in their annual fuel output. The groups objected to EPA’s refusal to adjust the 2020 standard to account for renewable fuel shortfalls resulting from past retroactive small refinery exemptions. While the case was pending, EPA issued a new rule in 2022 that recalculated the 2020 standards and reaffirmed its approach of not making up for past exemptions. In addition, Congress altered the statutory framework, granting EPA broader discretion in setting future renewable fuel volumes.Following the issuance of the 2022 rule, most petitioners dismissed their challenges, and the two remaining groups shifted their focus, no longer seeking to set aside the 2020 rule but instead seeking a ruling that would require EPA to change its policy in future rulemakings. They did not challenge the 2022 rule, nor did they request its invalidation.The United States Court of Appeals for the District of Columbia Circuit held that the case was moot. The court reasoned that the 2022 rule superseded the 2020 rule, eliminating any live controversy over that agency action. The court further explained that the legal landscape had changed due to statutory amendments, so the original dispute no longer presented the same question. Because petitioners were not seeking to overturn any concrete, current agency action, their challenge amounted to a request for an impermissible advisory opinion. Accordingly, the court dismissed the petitions as moot. View "Clean Fuels Alliance America v. EPA" on Justia Law

A woman called 911 to request a welfare check on her elderly neighbors’ home after noticing an unfamiliar vehicle and a young Black male there while the neighbors were out of town. When Officer Smith of the Childersburg Police Department arrived, he found a man watering flowers and asked if he lived at the house. The man, who identified himself as Pastor Jennings and said he lived across the street, explained he was watching the house for the neighbors. When asked for identification, Jennings became agitated and refused to provide any. Other officers arrived, and after Jennings repeatedly refused to further identify himself, he was arrested and charged with obstructing a governmental function.After the charge was dismissed, Jennings sued the officers and the City of Childersburg in the United States District Court for the Northern District of Alabama, alleging unlawful and retaliatory arrest under federal law and false arrest under state law. The district court granted summary judgment and dismissal in favor of the officers and the City, finding that Jennings violated Alabama’s stop-and-identify statute, Ala. Code § 15-5-30, by refusing to give his complete name. The United States Court of Appeals for the Eleventh Circuit reversed, relying on a prior interpretation of the statute that prohibited officers from demanding physical identification. On remand, the district court found the law’s interpretation uncertain and certified a question to the Supreme Court of Alabama.The Supreme Court of Alabama held that Ala. Code § 15-5-30 does not prohibit law enforcement officers, during a valid Terry stop, from requesting physical identification if a suspect gives an incomplete or unsatisfactory oral response regarding their name and address. The court clarified that suspects must provide sufficient identifying information and that failure to do so can constitute a violation of Alabama law. View "Jennings v. Smith" on Justia Law

A college student was killed in a single-car accident when his vehicle left a city street, traveled over sixty feet off the paved road, and struck a large concrete planter situated more than six feet from the road in the City of Milton. The student’s parents brought a suit against the city, alleging negligence in failing to remove the planter, which they contended was a “defect” in the public road, and also claimed the planter constituted a nuisance.After a jury found the city liable under both negligence and nuisance theories, awarding damages reduced for comparative fault, the City of Milton appealed. The Court of Appeals of Georgia affirmed the judgment, concluding that the city’s sovereign immunity had been waived under OCGA § 36-33-1(b) because the city has a ministerial duty to maintain streets in a reasonably safe condition. The appellate court analyzed the claim under OCGA § 32-4-93(a), reasoning that the planter was “in the public road” as it was on the city’s right-of-way, and found there was sufficient evidence for the jury to determine it was a defect of which the city had notice.The Supreme Court of Georgia reviewed the case to clarify the relationship between OCGA § 36-33-1(b) (waiving immunity for ministerial duties) and OCGA § 32-4-93(a) (limiting municipal liability for road defects). The Court held that OCGA § 32-4-93(a) does not itself waive municipal immunity. While OCGA § 36-33-1(b) can waive immunity for negligence in performing ministerial duties, the ministerial duty to keep streets safe applies only to ordinary travel on parts of the street intended for such use—not to areas outside travel lanes, even if within the right-of-way. The Supreme Court vacated the judgment of the Court of Appeals and remanded for further proceedings consistent with this interpretation. View "Milton v. Chang" on Justia Law

Several Iraqi citizens detained at Abu Ghraib prison during the U.S. occupation of Iraq alleged that, between October and December 2003, they were subjected to severe abuse by military police. The plaintiffs claimed that employees of CACI Premier Technology, Inc., a contractor providing interrogation services to the U.S. military, conspired with military personnel to “soften up” detainees for interrogation, resulting in torture and cruel, inhuman, and degrading treatment (CIDT). While CACI’s contract required its personnel to operate under military supervision, evidence suggested inadequate oversight and that CACI employees directed some of the abusive tactics. Plaintiffs did not allege direct physical abuse by CACI interrogators, but asserted conspiracy liability.The case was initially filed in the United States District Court for the Eastern District of Virginia, advancing claims under both the Alien Tort Statute (ATS) and state law. Over time, the plaintiffs narrowed their suit to ATS claims for torture, CIDT, and war crimes, proceeding on conspiracy and aiding-and-abetting theories. The district court dismissed some claims and parties, and after two trials—one ending in mistrial—the jury found CACI liable for conspiracy to commit torture and CIDT, awarding significant compensatory and punitive damages.On appeal, the United States Court of Appeals for the Fourth Circuit reviewed multiple legal challenges by CACI, including justiciability, immunity, preemption, and the state secrets privilege. The court held that application of the ATS was proper because the conduct at issue occurred within U.S.-controlled territory (Abu Ghraib during the CPA regime), was actionable under universal jurisdiction principles, and enough domestic conduct was involved. The court found that conspiracy liability and corporate liability are recognized under the ATS, and rejected CACI’s defenses and challenges regarding sovereign immunity, political question doctrine, preemption, and evidentiary rulings. The Fourth Circuit affirmed the judgment against CACI, vacated the district court’s judgment in favor of the United States on third-party claims due to sovereign immunity, and remanded with instructions to dismiss those claims. View "Al Shimari v. CACI Premier Technology, Inc." on Justia Law

The plaintiff, a United States Army veteran with disabilities, worked as a table games dealer at a casino operated by Harrah’s NC Casino Company in North Carolina. After being terminated and banned from the property, allegedly due to his emotional distress, veteran status, and health history, he was told he could be rehired after one year. When he reapplied, his job offer was rescinded, and he was denied rehire. The plaintiff claimed that his termination and subsequent denial of reemployment were the result of discrimination and retaliation based on his exercise of rights under the Family and Medical Leave Act (FMLA) and the Uniformed Services Employment and Reemployment Rights Act (USERRA).After the plaintiff filed suit in the United States District Court for the Western District of North Carolina, Harrah’s moved to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(7), arguing that the Tribal Casino Gaming Enterprise (TCGE), a wholly owned entity of the Eastern Band of Cherokee Indians, was the plaintiff’s true employer and a necessary and indispensable party under Rule 19. Because TCGE was protected by tribal sovereign immunity and could not be joined, the district court dismissed the complaint. The district court relied on a declaration from TCGE’s human resources vice president and prior case law to conclude that TCGE’s contractual and economic interests would be prejudiced by the litigation.The United States Court of Appeals for the Fourth Circuit reviewed the district court’s application of Rule 19 and found that it abused its discretion by determining that TCGE was a necessary party. The appellate court held that the record did not support the conclusion that TCGE’s presence was essential to afford complete relief or protect contractual interests, and that the district court’s analysis was speculative and unsupported. The Fourth Circuit vacated the dismissal and remanded the case for further proceedings. View "Peterson v. Harrah's NC Casino Company, LLC" on Justia Law

A Commonwealth charter school, specifically Mystic Valley Regional Charter School, received several public records requests between January and November 2022. Believing it was not subject to the Massachusetts public records law, Mystic Valley declined to respond, even after the Supervisor of Public Records ordered compliance. The Attorney General subsequently directed the school to comply. After continued refusal, the Attorney General initiated a declaratory judgment action, seeking a declaration that Mystic Valley is a custodian of public records under the law.A judge in the Superior Court considered the Attorney General’s motion for judgment on the pleadings. The judge found that Mystic Valley is a governmental entity required to respond to public records requests under G. L. c. 66, § 10, and entered judgment for the Attorney General. Mystic Valley appealed, and the Supreme Judicial Court of Massachusetts transferred the case to itself for review.The Supreme Judicial Court of Massachusetts held that Commonwealth charter schools are “authorities established by the general court to serve a public purpose” as described in G. L. c. 4, § 7, Twenty-sixth, and are therefore subject to the Massachusetts public records law. The court reasoned that charter schools, though possessing some operational independence and corporate features, perform essential public functions, receive public funding, and are subject to significant state oversight. The court rejected Mystic Valley’s arguments that it should be exempt due to its independence or because the Legislature has designated charter schools as governmental entities only in certain contexts. The Supreme Judicial Court affirmed the judgment of the Superior Court, requiring Mystic Valley to comply with public records requests. View "Attorney General v. Mystic Valley Regional Charter School" on Justia Law

The plaintiff owned a vacant parcel in Westerly, Rhode Island, and sought to construct a single-family home. To do so, he needed approval from the Department of Environmental Management (DEM) for an onsite wastewater treatment system (OWTS). He applied for a variance from DEM’s regulations, asserting that his proposed system satisfied the general standard for granting variances. However, DEM denied the variance because the property’s water table was at zero inches from the original ground surface, failing to meet a specific regulatory requirement.After DEM’s denial, the plaintiff did not appeal to DEM’s Administrative Adjudication Division (AAD), arguing that such an appeal would be futile since the AAD purportedly lacked discretion to overturn the denial and could not adjudicate constitutional claims. Instead, he filed suit in the Superior Court, seeking declaratory, injunctive, and monetary relief, asserting both as-applied and facial challenges to the OWTS regulations under the Takings, Due Process, and Equal Protection Clauses of the state and federal constitutions. The state moved to dismiss, arguing failure to exhaust administrative remedies and the lack of constitutional violations. The Superior Court granted the state’s motion, finding that the plaintiff failed to exhaust administrative remedies and the futility exception did not apply.On appeal, the Supreme Court of Rhode Island affirmed the Superior Court’s judgment. The Court held that the plaintiff was required to exhaust administrative remedies for his as-applied challenges and that the futility exception did not apply because the AAD had independent authority to grant variances. For the facial constitutional challenge, the Court determined that the complaint failed to state a claim upon which relief could be granted. The judgment dismissing the complaint was affirmed and the matter remanded. View "DiBiccari v. State of Rhode Island" on Justia Law