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

Plaintiff Robert Barnes filed a putative class action against defendant Security Life of Denver Insurance Company (SLD) alleging that SLD, in the course of administering life insurance policies purchased by Barnes and other similarly-situated class members, breached its contractual duties and committed the tort of conversion by imposing certain administrative costs that were not authorized under the terms of the policies. Jackson National Life Insurance Company (Jackson) moved to intervene, asserting that, as a result of reinsurance agreements entered into by SLD, Jackson was actually the entity responsible for administering Barnes’s policy and numerous other policies listed within the putative class. The district court denied Jackson’s motion. After reviewing the parties’ briefs and the record on appeal, the Tenth Circuit concluded Jackson established the requirements for intervention as of right, and accordingly reversed the decision of the district court and remanded with directions to grant Jackson’s motion to intervene. View "Barnes v. Security Life of Denver" on Justia Law

Rumsey Land Company, LLC (“Rumsey”) owned a property subject to a first deed of trust held by Pueblo Bank & Trust Company, LLC (“PBT”). In 2010, Rumsey filed for bankruptcy. Resource Land Holdings, LLC (“RLH”) offered to purchase the property, but the bankruptcy court did not approve the sale. Shortly thereafter, PBT purchased the property at a bankruptcy auction. PBT then transferred the land to RLH. In 2015, Rumsey discovered that during the bankruptcy proceedings, RLH had entered a loan purchase agreement to purchase PBT’s interest in the property. The agreement eventually led to litigation in state court between RLH and PBT, which culminated with a settlement agreement allowing RLH to purchase Rumsey’s property from PBT for $4.75 million. Rumsey believed the loan agreement, lawsuit, and settlement influenced the price at its bankruptcy auction. It initiated this adversarial proceeding in bankruptcy court against RLH and PBT (collectively “Defendants”), alleging: (1) fraudulent concealment in violation of state law; and (2) collusive bidding activities in violation of 11 U.S.C. 363(n). The case was transferred to federal district court, which granted summary judgment to defendants on both claims. The Tenth Circuit affirmed finding: (1) Rumsey forfeited its arguments about PBT’s duty to disclose its transaction with RLH and did not argue plain error on appeal; and (2) in the section 363(n) collusive bidding claim, it was time-barred by a one-year limitations period in Federal Rule of Civil Procedure 60(c)(1), and Rumsey failed to demonstrate a genuine dispute of material face as to whether Defendants intended to control the sale price at the bankruptcy auction. View "Rumsey Land Company v. Resource Land Holdings" on Justia Law

This appeal arose from the Tulsa, Oklahoma Police Department’s investigation into the murder of an infant. The police suspected the infant’s mother, plaintiff-appellant Michelle Murphy. She ultimately confessed, but later recanted and sued the City under 42 U.S.C. 1983. The district court granted summary judgment to the City, concluding that Murphy had not presented evidence that would trigger municipal liability. Finding no reversible error after review of the district court record, the Tenth Circuit affirmed. View "Murphy v. City of Tulsa" on Justia Law

Anjela Greer, an employee for the City of Wichita who worked at the Wichita Art Museum, contended her employer denied her a promotion because of her military service in violation of the Uniformed Services Employment and Reemployment Rights Act. She applied for a promotion but didn’t get an interview. Greer simultaneously served in the Navy Reserves and worked as a security guard at the Wichita Art Museum. After about five years as a security guard Greer learned of a vacancy for the museum’s “Operations Supervisor.” She and one other person applied. A city employee screened the applications and decided not to advance Greer to the next stage, where she would have been interviewed. The Museum attributed the denial of an interview to Greer’s lack of qualifications: the new job required at least one year of prior supervisory work in particular fields. The application called for Greer to state how many people she supervised. She answered “2,” but identified her job title only as “Security” and didn’t list any supervisory duties. Based on the job title and the absence of any listed supervisory duties, the Museum maintained Greer’s application had shown a lack of supervisory experience. The district court granted summary judgment to the defendants on two grounds: (1) any reasonable factfinder would determine that the defendants had declined to advance Greer to the interview stage because her application showed a lack of supervisory experience; and (2) the defendants had proven that they wouldn’t have advanced Greer to an interview regardless of her military status. The Tenth Circuit rejected both grounds. The first was invalid because a factfinder could reasonably infer that Greer’s military status was a motivating factor in defendants’ denial of an interview. The second ground was also invalid because a factfinder could have reasonably found Greer would have obtained an interview if she had not been serving in the military. The Court thus reversed the grant of summary judgment to the defendants. View "Greer v. City of Wichita, Kansas" on Justia Law

In 2014, Brian Shotts was injured in a car accident caused by Dana Pollard. Shotts was insured under a policy issued by GEICO General Insurance Company (“GEICO”), which included underinsured motorist (“UM”) coverage. Pollard had automobile insurance through Farmers Insurance (“Farmers”). Shotts filed a claim with Farmers, which offered Pollard’s policy limits as settlement. Before accepting the offer, Shotts notified GEICO of the accident. GEICO opened a claim, assigned an adjuster, and began an investigation. GEICO also waived its subrogation rights, allowing Shotts to accept the offer from Farmers. GEICO’s investigation determined that Shotts’s injuries exceeded Pollard’s policy limits by $3,210.87. GEICO offered Shotts a settlement of that amount, but Shotts declined the offer as “unreasonably low.” Shotts demanded GEICO promptly “pay the first dollar of his claim, up to the value of [the] claim or the total available UM limits” of $25,000. He also asked GEICO to reevaluate the offer. In response, GEICO requested additional information about Shotts’s injuries. It then proposed a peer review to determine whether his injuries exceeded the $3,210.87 offer. Shotts sued for bad faith breach of contract, alleging that GEICO acted in bad faith by: (1) conducting “a biased and unfair investigation and evaluation of [his] claim”; and (2) failing to pay the full value of his claim. He also requested punitive damages. The district court granted summary judgment for GEICO on both bad faith claims and denied punitive damages. Finding no reversible error, the Tenth Circuit affirmed the district court. View "Shotts v. GEICO" on Justia Law

Amanda M. (“Parent”), the mother of Nathan M., a child with autism, challenged an Individualized Education Program (“IEP”) developed with Harrison School District No. 2 (“the District”) that proposed removing Nathan from Alpine Autism Center (a private, autism-only facility) and placing him in Otero Elementary School (a public school). Nathan’s mother contended the school district did not comply with numerous procedural requirements in developing the IEP and that the IEP itself failed to offer Nathan a “free appropriate public education” as required by the Act. The Tenth Circuit determined that because the IEP at issue governed a schoolyear that has passed, and because the various IEP deficiencies alleged by Parent were not capable of repetition yet evading review, the case was moot. View "Nathan M. v. Harrison School District No. 2" on Justia Law

Jonella Tesone claimed that Empire Marketing Strategies (“EMS”) discriminated against her under the Americans with Disabilities Act (“ADA”) when it terminated her employment. The district court granted summary judgment to EMS. EMS hired Tesone as a Product Retail Sales Merchandiser. Her job duties included changing or “resetting” retail displays in grocery stores. When she was hired, Tesone informed EMS that she had back problems and could not lift more than 15 pounds. On appeal, Tesone alleged the district court erred when it denIed her motions: (1) to amend the scheduling order to extend the time for her to designate an expert; and (2) amend her complaint. She also contended the district court erred in granting summary judgment to EMS. The Tenth Circuit determined the district court did not err with respect to denying Tesone’s motions, but did err in granting summary judgment in favor of EMS. “Whether Ms. Tesone can make a prima facile case of a disability, and whether her doctor’s note can be considered at summary judgment, is open to the district court’s further consideration.” View "Tesone v. Empire Marketing Strategies" on Justia Law

In removal proceedings, petitioner Sandra Lopez-Munoz appeared and requested cancellation of removal, but the immigration judge declined the request. Petitioner unsuccessfully appealed to the Board of Immigration Appeals, moved for the Board to reopen her case, petitioned for review to the Tenth Circuit Court of Appeals, moved a second time for the Board to reopen her case, and moved for reconsideration of the denial of her second motion to reopen. The removal proceedings began with the service of a notice to appear. But because the notice to appear failed to include a date and time for her impending immigration hearing, petitioner argued the immigration judge lacked jurisdiction over the removal proceedings. If petitioner was correct, the Tenth Circuit concluded she might be entitled to relief based on the immigration judge’s lack of jurisdiction to order removal. In the Court’s view, however, the alleged defect would not preclude jurisdiction. It thus denied the petition for review. View "Lopez-Munoz v. Barr" on Justia Law

Plaintiff Robert Kenney was a former employee of Defendant Helix TCS, Inc. (“Helix”), which provided security services for businesses in Colorado’s state-sanctioned marijuana industry. Kenney filed this lawsuit against Helix under the Fair Labor Standards Act (“FLSA”), alleging that Helix misclassified him and similarly situated workers as exempt from the FLSA’s overtime obligations. Helix moved to dismiss Kenney’s claim based on the Controlled Substance Act (“CSA”), arguing that Kenney’s employment activities were in violation of the CSA and are thus not entitled to FLSA protections. The Tenth Circuit concluded Helix wanted it to interpret the CSA in a manner implicitly repealing the FLSA’s overtime mandate for employers in the marijuana industry. The Tenth Circuit determined the “case law is clear that employers are not excused from complying with federal laws” because of their other federal violations. “Moreover, the purposes of the FLSA do not conflict with the CSA quite as directly as Helix implies. Helix cherry-picks among the enumerated purposes of the FLSA, citing only those most favorable to its arguments.” The Tenth Circuit did not draw conclusions about the merits of Kenney’s FLSA claims. Rather, the Court held only that Kenney and similarly situated individuals were not categorically excluded from FLSA protections. It therefore affirmed the denial of Helix’s motion to dismiss. View "Kenney v. Helix TCS" on Justia Law

Plaintiff-Appellee C5 Medical Werks sued Defendant-Appellant CeramTec, a German company that produces ceramics and ceramic components for medical prostheses, in Colorado for cancellation of CeramTec’s trademarks and a declaratory judgment of non-infringement. CeramTec moved to dismiss for lack of personal jurisdiction. The district court denied CeramTec’s motion and, after a bench trial, found in favor of C5. CeramTec appealed both the district court’s finding of personal jurisdiction and its determination on the merits. After review, the Tenth Circuit concluded the district court did not have personal jurisdiction over CeramTec: CeramTec’s attendance at various tradeshows was fortuitous and, as such, was insufficient to show purposeful availment of the forum state, Colorado. Further, to the extent CeramTec engaged in enforcement activity, it did so outside of Colorado. Accordingly, the Court reversed the district court’s denial of CeramTec’s motion to dismiss for lack of personal jurisdiction and remand with instructions that the case be dismissed. View "C5 Medical Werks v. Ceramtec GMBH" on Justia Law