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Wakaya Perfection, LLC and its principals sued Youngevity International Corp. and its principals in Utah state court. The Youngevity parties responded by bringing their own suit against the Wakaya parties in a California federal district court, then removing the Utah case to federal court. These steps resulted in concurrent federal cases sharing at least some claims and issues. The California litigation progressed; and in November 2017, the federal district court in Utah ordered dismissal. The issues presented for the Tenth Circuit's review centered on whether: (1) the federal district court should have abstained from exercising jurisdiction under the Colorado River Water Conservation District v. United States, 424 U.S. 800 (1976) test; and (2) and arbitrator would have needed to decide the arbitrability of Wakaya's claims. The Tenth Circuit reversed on both grounds: the federal trial court applied the wrong abstention test and erroneously ruled that an arbitrator should have decided whether Wakaya's claims were arbitrable. View "Wakaya Perfection, LLC v. Youngevity International" on Justia Law

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This appeal grew out of a battle between the majority and minority owners of units in an investment vehicle. The majority unitholder wanted to merge, but this would require the minority to sell their units or convert them to shares in a newly created entity. The minority unitholders balked because they wanted to retain their original units, but the majority unitholder approved the merger, terminating the minority’s units in the process. The termination of these units led the minority to sue. The issue presented for the Tenth Circuit’s review reduced to one of “classic” contract interpretation: did the contract empower the majority unitholder to approve a merger that eliminated and replaced the minority unitholders’ units without providing an opportunity for a class vote? The district court concluded “yes,” and the Tenth Circuit concurred. View "Stender v. Archstone-Smith" on Justia Law

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George Straub, an employee of BNSF Railway Company (“BNSF”), injured his back and neck when, in the course and scope of his duties, he attempted to adjust the engineer’s chair of Locomotive #6295. Straub brought suit, asserting BNSF was (among other things) strictly liable for his injuries under the provisions of the Federal Locomotive Inspection Act (“LIA”). BNSF moved to dismiss; the district court concluded Straub’s injuries did not implicate LIA. The district court ruled the adjustment mechanism of the engineer’s seat was not an “integral or essential part of a completed locomotive.” Instead, according to the district court, the seat adjustment mechanism was a non-essential comfort device. In reaching this conclusion, the district court relied on the Tenth Circuit’s decision in King v. Southern Pacific Transportation Co., 855 F.2d 1485 (10th Cir. 1988). Straub appealed, arguing the district court’s reliance on King was misplaced. The Tenth Circuit held that the allegations set out in Straub’s complaint (i.e., that the engineer’s chair failed when moved initially and stopped abruptly as Straub was attempting to adjust it) stated a violation of LIA: “Once BNSF installed an engineer’s chair with a seat adjustment mechanism, 49 U.S.C. 20701(1) mandated that BNSF maintain the chair so that the seat adjustment device be ‘in proper condition and safe to operate without unnecessary danger of personal injury’ and 49 C.F.R. 229.7 mandated that BNSF maintain the chair so that the seat adjustment mechanism was ‘in proper condition and safe to operate in service . . . without unnecessary peril to life or limb.’” The Court reversed the district court’s grant of BNSF’s motion to dismiss Straub’s claim to the extent it depended on LIA-based strict liability, and remanded this matter for further proceedings. View "Straub v. BNSF" on Justia Law

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Utah officials had interpreted its old law to require Plaintiff Rainbow Direct Marketing to register and obtain a permit in the State of Utah to be a professional fundraising consultant. Rainbow viewed these requirements as unconstitutional and unsuccessfully sued in district court. But during the appeal, Utah substantially revised its law, prompting officials to concede that the new restrictions did not apply to Rainbow. The Tenth Circuit concluded this change in the law rendered the appeal moot. View "American Charities v. O'Bannon" on Justia Law

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Winter wheat farmers could purchase insurance to protect against below-average harvests. The policies at issue here offered yield protection. On July 1, 2014, the Federal Crop Insurance Corporation (“FCIC”) published an interim rule to implement the 2014 Farm Bill. In that interim rule, the FCIC warned that the APH yield exclusion “may not be implemented upon publication” because “[p]roduction data availability and intensive data analysis may limit FCIC’s ability to authorize exclusions of yields for all APH crops in all counties.” Therefore, the FCIC amended the Common Crop Insurance Policy (CCIP) Basic Provisions (the actual terms of the insurance policy offered for sale) “to allow the actuarial documents to specify when insureds may elect to exclude any recorded or appraised yield.” The revised CCIP Basic Provisions stated that farmers “may elect” the APH yield exclusion “[i]f provided in the actuarial documents.” The deadline for winter wheat farmers to purchase insurance for the 2015 crop year was September 30, 2014. When Plaintiffs purchased insurance, they elected to use the APH yield exclusion. But in a letter dated October 31, 2014, the USDA notified insurance providers that the APH Yield Exclusion would not be available for winter wheat for the 2015 crop year. The letter stated that insurance providers could respond to farmers’ elections by pointing them to the USDA’s “actuarial documents,” which did not yet “reflect that such an election is available.” Plaintiffs sought review of this denial through the USDA’s administrative appeals process. An administrative judge determined that she lacked jurisdiction over Plaintiffs’ challenge because the October 2014 letter to insurance providers was not an adverse agency decision. Plaintiffs then appealed to the Director of the National Appeals Division. The Director found that the October 2014 letter was an adverse agency decision, but affirmed the FCIC’s decision not to make the APH yield exclusion available to winter wheat farmers for the 2015 crop year. Plaintiffs appealed the Director’s decision to the United States District Court for the District of Colorado. The district court reversed the Director’s decision and remanded the case to the FCIC with instructions to retroactively apply the APH yield exclusion to Plaintiffs’ 2015 crop year insurance policies, reasoning the applicable statute unambiguously made the APH yield exclusion available to all farmers on the day the 2014 Farm Bill was enacted. Finding no reversible error in the district court’s judgment, the Tenth Circuit affirmed. View "Ausmus v. Perdue" on Justia Law

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Plaintiff Enable Oklahoma Intrastate Transmission, LLC (“Enable”), appealed the district court’s dismissal of its case for lack of subject matter jurisdiction and for failure to join an indispensable party. Enable also challenged the amount of attorney fees the court awarded to the landowner defendants. Because the Tenth Circuit’s decision in Public Service Company of New Mexico v. Barboan, 857 F.3d 1101 (10th Cir. 2017), was dispositive of the subject matter jurisdiction issue, the Court affirmed the district court’s order dismissing the action. View "Enable Oklahoma Intrastate v. 25 Foot Wide Easement" on Justia Law

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Following the unexpected death of Defendant Walt Shrum’s common law wife at the couple’s home, Kingman, Kansas police officers “secured” the home, prohibiting Defendant access. Approximately three hours later and without access to his home, Defendant signed a consent to search form permitting an investigator from the Kingman County Sheriff’s Office (KCSO) to enter his home for the express purpose of retrieving his deceased wife’s medication in anticipation of an autopsy. While in the home, the investigator saw ammunition in plain view inside an open bedroom closet. After returning to headquarters, the investigator learned Defendant was a convicted felon and recalled seeing the ammunition in the closet. Several hours later, the investigator, based on what he had seen and learned, contacted a federal agent and asked him to obtain a search warrant for Defendant’s home. A federal magistrate judge issued the warrant at 10:00 p.m. A late night search of the home, which local authorities still would not permit Defendant to access, uncovered not only the ammunition but also two loaded firearms and suspected methamphetamine. A grand jury subsequently charged Defendant with two counts of being a felon in possession of a firearm, one count of being a felon in possession of ammunition, and one count of possessing methamphetamine. Following the district court’s denial of his motion to suppress the incriminating evidence used to charge him, Defendant entered a conditional guilty plea to one count of being a felon in possession of a firearm. After receiving a sentence of time served, Defendant appealed the district court’s denial of his motion to suppress. This appeal presented the Tenth Circuit with two questions: (1) did the initial securing of Defendant’s home constitute an unreasonable seizure in violation of the Fourth Amendment?; and if so, (2) did such seizure taint the incriminating evidence ultimately uncovered in the warrant search of his home? The Tenth Circuit answered both questions yes, and reversed. View "United States v. Shrum" on Justia Law

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Defendant Jay Giannukos appealed two convictions involving the illegal possession of firearms. While conducting a parole search of Giannukos’s home, officers found two firearms, methamphetamine, and counterfeiting equipment. A grand jury indicted Giannukos on four counts: (1) possession with intent to distribute methamphetamine; (2) possession of a firearm in furtherance of a drug trafficking crime; (3) being a felon in possession of a firearm; and (4) counterfeiting Federal Reserve Notes with the intent to defraud. A jury convicted Giannukos of all counts. Giannukos appealed Counts 2 and 3, arguing that the district court gave an erroneous constructive possession jury instruction and that the prosecutor made improper statements during her closing argument. After review of the trial court record, the Tenth Circuit agreed, reversed and remanded the case for a new trial. View "United States v. Giannukos" on Justia Law

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Plaintiff-Appellant Rhonda Nesbitt was a former massage therapy student who attended a for-profit vocational school operated by Defendants-Appellees (“Steiner”).On behalf of a class of former students, Nesbitt brought suit claiming the students qualified as employees of Steiner under the Fair Labor Standards Act, and alleging Steiner violated the FLSA by failing to pay minimum wage. The district court granted summary judgment in favor of Steiner, holding that the students were not employees of the schools under the FLSA. Finding no reversible error in the district court’s judgment, the Tenth Circuit affirmed. View "Nesbitt v. FCNH" on Justia Law

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A Settlement Agreement sought to end a longstanding, complex dispute dating from 2008. In 2008, environmental groups led by the Southern Utah Wilderness Alliance (collectively, “SUWA”) challenged six resource management plans (“RMPs”) and associated travel management plans (“TMPs”) adopted by the United States Bureau of Land Management (“BLM”). Six other parties intervened as respondents, including the State of Utah and several counties in Utah (collectively, “Utah”). When BLM, SUWA, and multiple intervenors entered into a settlement and sought to dismiss the case in January 2017, Utah challenged the settlement. Utah contended, among other arguments, that the Settlement Agreement illegally codified interpretative BLM guidance into substantive rules, impermissibly binds the BLM to a past Administration’s policies, infringes valid federal land rights (known as “R.S. 2477 rights”), and violated a prior BLM settlement. The district court disagreed and approved the Settlement Agreement. On appeal to the Tenth Circuit, Utah sought to reverse the district court for primarily the same issues raised at trial. The Tenth Circuit concluded it lacked jurisdiction over the claims and dismissed. View "Southern Utah Wilderness v. Burke" on Justia Law