Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

Defendant-Appellant Indiana Lumbermens Mutual Insurance Company (ILM) appealed the district court's denial of its motion for judgment as a matter of law, or in the alternative, for a new trial following a $2.2 million jury verdict in favor of Plaintiff-Appellee Ryan Development Company, L.C., d/b/a Agriboard Industries (Agriboard). This case arose from a fire that destroyed a Texas manufacturing facility in April 2009. Agriboard, manufactured building panels made of compressed straw. At the time of the fire, Agriboard was insured under a fire and related losses insurance policy issued by ILM with various coverages including lost income. By May 2009, ILM had paid $450,000; Agriboard filed suit and thereafter ILM paid $1.8 million. Agriboard continued to seek recovery under the policy, but ILM refused to pay the amount requested and Agriboard re-filed suit, seeking $2.4 million in unpaid coverages. The trial court denied ILM's motion for judgment as a matter of law, or in the alternative, for a new trial. ILM timely appealed that denial to the Tenth Circuit. Upon review, the Tenth Circuit found no abuse of the trial court's discretion in denying ILM's motion and affirmed the lower court's judgment. View "Ryan Development Co. v. Indiana Lumbermens Mutual Ins. Co." on Justia Law

Klein-Becker USA and Klein-Becker IP Holdings sued Patrick Englert and Mr. Finest, Inc., for trademark infringement, copyright infringement, false advertising, and unfair competition under the Lanham Act; false advertising under the Utah Truth in Advertising Act; unfair competition under the Utah Unfair Practices Act; fraud; civil conspiracy; and intentional interference with existing and prospective business relations. The action arose from Englert's unauthorized selling of "StriVectin" skin care products: he posed as a General Nutrition Center (GNC) store to purchase the products at below wholesale rates. Englert then sold the products through eBay and other commercial web platforms, including his own, "mrfinest.com." Englert was sanctioned several times for failing to comply with court orders and discovery schedules. The third and final sanction resulted in the entry of default judgment for Klein-Becker on all remaining claims. Englert appealed the district court's entry of default judgment against him, determination of his personal liability and the amount of damages owed, grant of a permanent injunction, denial of a jury trial, and refusal to allow him to call a certain witness. Upon review, the Tenth Circuit found no fault in the district court's analysis or judgment and affirmed. View "Klein-Becker USA v. Englert" on Justia Law

Plaintiff-Appellant Eric Rajala, Trustee of the bankruptcy estate of Generation Resources Holding Company, LLC (GRHC), appealed a district court order which granted motions by Defendants-Appellees FreeStream Capital, LLC (FreeStream) and Lookout Windpower Holding Co., LLC (LWHC) to distribute approximately $9 million held in escrow. The amount represented part of the purchase price of a wind power project allegedly developed by GRHC. The Trustee claimed that GRHC had been left with $5 million in debt while the individual Defendants-Appellees and their affiliated entities received some $13 million in proceeds from the sale of several wind power projects, unburdened by the debt. The issue on appeal before the Tenth Circuit was what constituted property of the bankruptcy estate and whether allegedly fraudulently transferred property was subject to the Bankruptcy Code's automatic stay before a trustee recovers the property through an avoidance action. The district court held that allegedly fraudulently transferred property was not part of the bankruptcy estate until recovered and therefore was beyond the reach of the automatic stay. Upon review, the Tenth Circuit affirmed: "[i]n the end, we need not pass upon the constitutionality of such a broad reading. . . . This interpretation gives Congress's chosen language its ordinary meaning, and abides by the rule against surplusage. Further, our reading does not undermine the Bankruptcy Code's goal of equitable distribution, as there exist[s] alternative means of protecting estate assets." View "Rajala v. Garnder" on Justia Law

Plaintiff Allstate Sweeping, LLC (Allstate) is owned and operated by two white women: Martha Krueger and Barbara Hollis. In January 2006 it began performing pressure-washing services at Denver International Airport (DIA) under a contract with the City and County of Denver (Denver). Although the contract term was through July 2008, it was terminated by Denver July, 2007. Defendant Calvin Black, a contract-compliance technician at DIA, was assigned to monitor Allstate’s contract. Black is an African-American male. Allstate claimed that it was subjected to gender- and race-based discrimination and to retaliation for its complaints of discrimination. It filed suit in the federal district court in Colorado against Denver and four DIA employees, including Black, claiming violations of 42 U.S.C. 1981, 42 U.S.C. 2000d (Title VI), and the Equal Protection Clause of the Fourteenth Amendment. The district court granted summary judgment to all defendants except Black, holding that there were genuine issues of fact regarding whether Black was motivated by racial and gender bias and whether Black created a hostile work environment in such a way as to make plaintiff’s contract "unprofitable and its owners miserable." It did not address Allstate’s retaliation claim. Black appealed the denial of his motion for summary judgment, contending that he was entitled to qualified immunity and that the Tenth Circuit had jurisdiction to review the denial under the collateral-order doctrine. Upon review, the Tenth Circuit held that it lacked jurisdiction to review the district court’s determinations because such sufficiency determinations are not reviewable under the collateral order doctrine. The Court did, however, have jurisdiction to review the legal sufficiency of the claim that Black made Allstate’s owners "miserable" and to review the sufficiency of the evidence of the retaliation claim (which the district court did not consider). The Court reversed the denial of summary judgment on those claims. View "Allstate Sweeping, LLC v. Black" on Justia Law

Plaintiffs Ronica Tabor and Dacia Gray worked as inside salespeople for Hilti, Inc and Hilti of North America, Inc. After being denied promotions to Account Managers (outside sales), they each filed individual claims for gender discrimination under Title VII and moved to certify a class of all female inside salespersons at Hilti who were denied similar promotions. The district court refused to certify the class and granted summary judgment in favor of Hilti on all claims. Upon review, the Tenth Circuit affirmed the district court's grant of summary judgment as to Tabor's claim for retaliation, and Gray's claim for failure to promote. The Court also affirmed the refusal to certify a class. However, the Tenth Circuit reversed the district court with respect to Tabor's individual claims for failure to promote and disparate impact, and remanded Gray's individual disparate impact claim because the district court did not address that claim in its opinion. View "Tabor, et al v. Hilti, Inc., et al" on Justia Law

The issue before the Tenth Circuit in this case was one of first impression: whether the 2005 amendments to the Bankruptcy code exempted Chapter 11 debtors from the absolute priority rule. The bankruptcy court answered this question affirmatively, and therefore confirmed the Debtors' proposed plan of reorganization over certain creditors' objections that the plan violated the absolute priority rule. On appeal, the bankruptcy appellate panel certified the case for direct appeal. The Tenth Circuit reversed the bankruptcy court's order confirming the plan: "here, the statutory language and legislative history lack any clear indication that Congress intended to erode a pillar of creditor bankruptcy protection." The case was remanded for further proceedings. View "Dill Oil Company, LLC, et al v. Stephens, et al" on Justia Law

Defendant-Appellant Campus Village Apartments, LLC appealed denial of its motion to dismiss the complaint of Plaintiff-Appellee Auraria Student Housing at the Regency, LLC. Regency's complaint alleged that Campus Village conspired with the University of Colorado at Denver to monopolize student housing in and around the university's campus. Regency moved to dismiss, averring that the Tenth Circuit lacked subject matter jurisdiction because of the district court's denial of Campus Village's motion to dismiss was not a final order. In response, Campus Village argued that the Tenth Circuit indeed had jurisdiction over this case under the "collateral order doctrine." Upon review, the Tenth Circuit Court of Appeals concluded that the district court did not err in denying Campus Village's motion to dismiss; the court's order was not an appealable final order. Accordingly, the Tenth Circuit dismissed Campus Village's appeal. View "Auraria Student Housing v. Campus Village Apartments, LLC" on Justia Law

Plaintiffs Kathleen and Terry Kirch appealed the district court's grant of summary judgment in favor of Defendants United Telephone Company of Eastern Kansas and Embarq Management Company (collectively "Embarq") on their claim that Embarq intercepted their Internet communications in violation of the Electronic Communications Privacy Act of 1986 (ECPA). Embarq is an Internet service provider (ISP). The alleged interceptions occurred when Embarq authorized NebuAd, Inc., an online advertising company, to conduct a technology test for directing online advertising to the users most likely to be interested in the ads. The Tenth Circuit affirmed the grant of summary judgment: "Although NebuAd acquired various information about Embarq users during the course of the technology test, Embarq cannot be liable as an aider and abettor. And it was undisputed that Embarq's access to that information was no different from its access to any other data flowing over its network. Because this access was only in the ordinary course of providing Internet services as an ISP, this access did not constitute an interception within the meaning of the statute." View "Kirch v. Embarq Management Co." on Justia Law

Plaintiffs appealed an order that remanded this case to New Mexico state court. They originally filed an action against Vanderbilt Capital Advisors, LLC, two of its agents, and several New Mexico state officials in New Mexico state court. Plaintiffs alleged that state investment decisions were made under a corrupt “pay to play” system benefitting politically connected individuals at the expense of public pensioners. The case was removed to federal court. However, the district court remanded the entire case back to state court, concluding that it lacked subject matter jurisdiction because Plaintiffs did not have standing to sue. Because the Tenth Circuit concluded that standing could be colorably characterized as an issue of subject matter jurisdiction, the Court dismissed the appeal. View "Hill, et al v. Vanderbilt Capital Advisors, et al" on Justia Law

Appellant Gary Blehm brought a copyright infringement action against Appellees Albert and John Jacobs and the Life is Good Company (collectively “Life is Good”). Appellant created copyrighted posters featuring cartoon characters called “Penmen.” He contended that numerous Life is Good depictions of a cartoon character called “Jake” infringed on his copyrighted works. The district court granted Life is Good’s motion for summary judgment, holding that no infringement occurred because the copyrighted and accused works are not substantially similar. Upon review, the Tenth Circuit affirmed: " Copying alone is not infringement. The infringement determination depends on what is copied. Assuming Life is Good copied Penmen images when it produced Jake images, our substantial similarity analysis shows it copied ideas rather than expression, which would make Life is Good a copier but not an infringer under copyright law." View "Blehm v. Jacobs, et al" on Justia Law