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

Plaintiff Wells Fargo Bank filed a statutory-interpleader action after facing conflicting demands for access to the checking account of Mesh Suture, Inc. Mark Schwartz, an attorney who founded Mesh Suture with Dr. Gregory Dumanian, was named as a claimant-defendant in the interpleader complaint but was later dismissed from the case after the district court determined that he had disclaimed all interest in the checking account. The district court ultimately granted summary judgment to Dr. Dumanian as the sole remaining claimant to the bank account, thereby awarding him control over the funds that remained. Schwartz appealed, arguing: (1) the district court lacked jurisdiction over the case because (a) there was not diversity of citizenship between him and Dr. Dumanian and (b) the funds in the checking account were not deposited into the court registry; (2) he did not disclaim his fiduciary interest in the checking account, and (3) the award of funds to Dr. Dumanian violated various rights of Mesh Suture. Finding no reversible error, the Tenth Circuit affirmed the district court judgment. View "Wells Fargo Bank v. Mesh Suture, et al." on Justia Law

In 2016, the U.S. Fish and Wildlife Service exercised its authority under the Endangered Species Act (ESA) to designate nearly 14,000 acres of riparian land in New Mexico, Colorado, and Arizona as critical habitat for the New Mexico Meadow Jumping Mouse. Two New Mexico ranching associations whose members graze cattle on the designated land challenged the Service’s critical habitat determination. The district court rejected each argument and upheld the Service’s critical habitat designation. After review, the Tenth Circuit affirmed, concluding: (1) the Service’s method for assessing the economic impacts of critical habitat designation complied with the ESA; (2) the Service adequately considered the effects of designation on the ranching association members’ water rights; and (3) the Service reasonably supported its decision not to exclude certain areas from the critical habitat designation. View "Northern New Mexico Stockman, et al. v. United States Fish & Wildlife Service, et al." on Justia Law

Following Susanne Burgaz’s suicide in a County Detention Facility, her children and estate sued two individual Sheriff’s deputies on duty the night she died, and various other County officials. They argued the deputies were deliberately indifferent to her serious medical needs and the County and sheriff negligently operated the jail. The defendants moved to dismiss the complaint, and the district court granted the motion. The Tenth Circuit agreed with the district court that both individual deputies were entitled to qualified immunity because the Estate failed to allege either deputy violated Ms. Burgaz’s constitutional rights. The "Monell" claim against the sheriff was also properly dismissed. And because all the claims arising under federal law were properly dismissed, the district court correctly dismissed the remaining state-law claims. View "Estate of Susanne Burgaz, et al. v. Board of County Commissioners, et al." on Justia Law

The issue this case presented for the Tenth Circuit Court of Appeals' review was one of first impression in the circuit: whether extended overdraft charges made to a checking account were “interest” charges governed by 12 C.F.R. 7.4001, or “non-interest charges and fees” for “deposit account services” governed by 12 C.F.R. 7.4002. Petitioner Berkley Walker held a checking account at the national bank BOKF, National Association, d/b/a Bank of Albuquerque, N.A. (“BOKF”). He filed a putative class action challenging BOKF’s “Extended Overdraft Fees,” claiming they were in violation of the interest rate limit set by the National Bank Act of 1864 (“NBA”). BOKF charged Walker Extended Overdraft Fees after he overdrew his checking account, BOKF elected to pay the overdraft, and then Walker failed to timely pay BOKF for covering the overdraft. Walker alleges that when he overdrew his account and BOKF paid his overdraft, BOKF was extending him credit and this extension of credit was akin to a loan. Walker argues that the Extended Overdraft Fees of $6.50 he was charged for each business day his account remained negative after a grace period constituted “interest” upon this extension of credit and were in excess of the interest rate limit set by the NBA. The district court concluded that BOKF’s Extended Overdraft Fees were fees for “deposit account services” and were not “interest” under the NBA. The district court granted BOKF’s motion to dismiss under Rule 12(b)(6) and dismissed Walker’s action for failure to state a claim. Finding no reversible error in the district court judgment, the Tenth Circuit affirmed. View "Walker v. BOKF National Assoc." on Justia Law

Plaintiff-appellee Gregory Heard sued Denver Police Officer Greg Dulayev and the City and County of Denver (“the City”) pursuant to 42 U.S.C. 1983 (collectively, “defendants”). Heard claimed Dulayev used excessive force in violation of the Fourth Amendment during an event that took place in June 2016. Heard further claimed this alleged constitutional violation was a foreseeable consequence of the City’s alleged failure to train, supervise, and discipline its employees, including Dulayev, with respect to the use of force. Dulayev and the City moved for summary judgment on Heard’s two claims. The district court denied defendants’ motion, and defendants appealed. Finding jurisdiction over part of Dulayev’s appeal, the Tenth Circuit denied in part Heard’s motion to dismiss. As to the substance of the appeal, the Court held Heard failed to show Dulayev’s use of the Taser violated a constitutional right clearly established at the time where Dulayev had ordered Heard to crawl, threatened to use his Taser, and repeatedly ordered Heard to stop, but where Heard still continued to approach Dulayev. The the district court’s denial of summary judgment as to Dulayev was reversed, and that issue was remanded with instructions to grant Dulayev qualified immunity and for entry of judgment in Dulayev’s favor. However, because the Court resolved the claim against Dulayev by finding that it was not clearly established that his conduct amounted to a constitutional violation, it declined to exercise pendent jurisdiction over the City’s appeal. View "Heard v. Dulayev, et al." on Justia Law

Bimbo Bakeries USA, Inc. (“Bimbo Bakeries”) owned, baked, and sold Grandma Sycamore’s Home-Maid Bread (“Grandma Sycamore’s”). Bimbo Bakeries alleged that United States Bakery (“U.S. Bakery”), a competitor, and Leland Sycamore (“Leland”), the baker who developed the Grandma Sycamore’s recipe, misappropriated its trade secret for making Grandma Sycamore’s. The district court granted summary judgment in favor of U.S. Bakery on a trade dress infringement claim. The parties went to trial on the other two claims, and the jury returned a verdict in favor of Bimbo Bakeries on both. After the trial, the district court denied U.S. Bakery’s and Leland’s renewed motions for judgment as a matter of law on the trade secrets misappropriation and false advertising claims. The district court did, however, remit the jury’s damages award. All parties appealed. Bimbo Bakeries argued the district court should not have granted U.S. Bakery summary judgment on its trade dress infringement claim and should not have remitted damages for the false advertising claim. U.S. Bakery and Leland argued the district court should have granted their renewed motions for judgment as a matter of law, and Leland made additional arguments related to his personal liability. The Tenth Circuit affirmed in part, reversed in part, and remanded for further proceedings because the Court found all of Bimbo Bakeries’ claims failed as a matter of law. View "Bimbo Bakeries USA, et al. v. Sycamore, et al." on Justia Law

The Ute Indian Tribe of the Uintah and Ouray Reservation (“the Tribe”) temporarily banished Angelita Chegup, Tara Amboh, Mary Jenkins, and Lynda Kozlowicz (“the banished members”). The banished members did not challenge their temporary banishment in a tribal forum, but instead sought relief in federal court by filing a petition for habeas corpus. The banished members contended that, because they were excluded from the reservation by virtue of their banishment, they were “detained” within the meaning of the Indian Civil Rights Act of 1968 (“ICRA”). The district court disagreed and dismissed the suit without considering the Tribe’s alternative position: that the court could not consider the claims at all because the banished members failed to exhaust their tribal remedies. On appeal, the Tenth Circuit Court of Appeals concurred with the district court: "Even though tribal exhaustion is non-jurisdictional, and courts may often choose between threshold grounds for denying relief, we think that under the unique circumstances of this case there was a right choice." Because the district court neither began its analysis with tribal exhaustion nor reached that issue in the alternative, the Tenth Circuit remanded for it to be decided in the first instance. View "Chegup, et al. v. Ute Indian Tribe of the Uintah, et al." on Justia Law

Plaintiffs Robin Thornton and Michael Lucero alleged defendants Tyson Foods, Inc., Cargill Meat Solutions, Corp., JBS USA Food Company, and National Beef Packing Company, LLC, used deceptive and misleading labels on their beef products. In particular, plaintiffs contended the “Product of the U.S.A.” label on defendants’ beef products was misleading and deceptive in violation of New Mexico law because the beef products did not originate from cattle born and raised in the United States. The Tenth Circuit Court of Appeals determined the federal agency tasked with ensuring the labels were not misleading or deceptive preapproved the labels at issue here. In seeking to establish that defendants’ federally approved labels were nevertheless misleading and deceptive under state law, plaintiffs sought to impose labeling requirements that were different than or in addition to the federal requirements. The Tenth Circuit concluded plaintiffs’ deceptive-labeling claims were expressly preempted by federal law. Further, the Court agreed with the district court that plaintiffs failed to state a claim for false advertising. View "Thornton, et al. v. Tyson Foods, et al." on Justia Law

TCI Pacific Communications, LLC (“TCI”) appealed a district court’s judgment holding it liable to Cyprus Amax Minerals Co. (“Cyprus”) for contribution under 42 U.S.C. sections 9601(9)(B), 9607(a), and 9613(f) of the Comprehensive Environmental Response and Liability Act (“CERCLA”). This case involved claims brought by Cyprus to determine whether TCI could be held liable for environmental cleanup costs relating to zinc smelting operations near Collinsville, Oklahoma. The Bartlesville Zinc Company, a former subsidiary of Cyprus’s predecessor, operated the Bartlesville Zinc Smelter (the “BZ Smelter”) from 1911 to 1918, near Collinsville, Oklahoma. TFMC owned and operated another zinc smelter (the “TFM Smelter”) from 1911 to 1926. This case does not concern cleanup work at either smelter, but rather is an action by Cyprus seeking cost recovery and contribution for its remediation in the broader Collinsville area, within the Collinsville Soil Program (“CSP”) Study Area. Cyprus sought to hold TCI liable as a former owner or operator of the TFM Smelter whose waste was located throughout the CSP Study Area. The district court granted partial summary judgment to Cyprus and pierced the corporate veil to hold TCI’s corporate predecessor, the New Jersey Zinc Company (“NJZ”), liable as the alter ego of the Tulsa Fuel & Manufacturing Co. (“TFMC”). The district court then interpreted CERCLA and held that TCI was liable as a former owner/operator of a CERCLA “facility.” Finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "Cyprus Amax Minerals Company v. TCI Pacific Communications" on Justia Law

David Efron and Efron Dorado SE (collectively, "Efron") appealed a civil contempt order entered by the district court for violating its preliminary injunction. This litigation began when the Federal Trade Commission and the Utah Division of Consumer Protection filed a complaint in the federal district court against Zurixx, LLC and related entities. The complaint alleged Zurixx marketed and sold deceptive real-estate investment products. The district court entered a stipulated preliminary injunction, enjoining Zurixx from continuing its business activities and freezing its assets wherever located. The injunction also directed any person or business with actual knowledge of the injunction to preserve any of Zurixx’s assets in its possession, and it prohibited any such person or business from transferring those assets. A week later, the receiver filed a copy of the complaint and injunction in federal court in Puerto Rico, where Zurixx leased office space from Efron. The office contained Zurixx’s computers, furniture, and other assets. The receiver also notified Efron of the receivership and gave him actual notice of the injunction. Although Efron at first allowed the receiver access to the office to recover computers and files, he later denied access to remove the remaining assets and initiated eviction proceedings against Zurixx in a Puerto Rico court. Given these events, the receiver moved the district court in Utah for an order holding Efron in contempt of court for violating the injunction. In response, Efron claimed the assets belonged to him under his lease agreement with Zurixx. The Tenth Circuit Court of Appeal determined the contempt order was a non-final decision. It therefore dismissed this appeal for lack of jurisdiction. View "Federal Trade Commission, et al. v. Zurixx, et al." on Justia Law