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

The issue before the Tenth Circuit in this case pertained to a "class-of-one" equal protection lawsuit against a county government based on its demand that a property owner correct a nuisance. Kansas Penn Gaming, LLC alleged that after it and Cherokee County became involved in litigation concerning a casino development agreement, the County health department targeted Kansas Penn for a regulatory enforcement action. In particular, the County sent Kansas Penn a notice stating that the unkempt condition of its property violated state and local nuisance laws and regulations and warning that failure to clean up the property would lead to an enforcement action. Although the County never brought an enforcement action against Kansas Penn, Kansas Penn sued the County and some of its officials under 42 U.S.C. 1983. In its complaint, Kansas Penn alleged the notice of nuisance violated its right to equal protection by arbitrarily and maliciously singling it out for selective enforcement. Because the Tenth Circuit agreed with the district court that Kansas Penn failed to state a claim for relief under the standard set forth by "Bell Atl. Corp. v. Twombly," the Court affirmed dismissal of the complaint.

Plaintiffs Mary Hull, Nelson Phelps, and the Association of US West Retirees appealed a district court’s order that rejected their Freedom of Information Act (FOIA) claim against Defendant Internal Revenue Service (IRS). The issue central to Plaintiffs’ appeal focused primarily on whether the request on its face sought only a third party’s return information to which they were not entitled without the authorization of that third party. Upon review, the Tenth Circuit concluded it did, and therefore the IRS properly withheld the requested information in the absence of US West’s consent. Accordingly, the Court affirmed the judgment of the district court in favor of the IRS.

The Tenth Circuit considered whether the Bureau of Indian Affairs (BIA) properly exercised its discretion to reject a gift of property by a member of the Miami Tribe of Oklahoma to the tribe. The Court noted that this appeal also raised a novel jurisdictional question regarding its review of administrative decisions following a remand from district court. James Smith wanted to transfer to the tribe a portion of his property interest in the Maria Christiana Reserve No. 35 (southwest of Kansas City) where the tribe had plans to develop gaming facilities. Federal law and restrictions on Smith’s fee interest required the BIA to approve any transfer. Citing concerns regarding fractional land interests in the Reserve as well as the long-range best interests of Reserve landowners, the BIA denied Smith’s application to transfer the land. The Tribe challenged that decision. Upon review, the Tenth Circuit held the BIA properly exercised its discretion in denying the application. With regard to the jurisdictional question raised, the Court concluded that the government has not abandoned its right to challenge the district court’s remand order, even though the government substantially prevailed in the district court’s final judgment. The Court found the district court erred in its remand order reversing the BIA’s denial of Smith’s application. Therefore the Court vacated the district court’s final judgment and its order reversing the BIA, and remanded the case for further consideration of Smith’s application consistent with this opinion.

Eric Walters was a federal employee covered by a Standard Option health insurance plan (the Plan) administered by Blue Cross Blue Shield of Kansas City (Blue Cross). In November 2007 he went to Weight Loss Healthcare Centers of America, Inc. (Weight Loss) to inquire about surgical treatment for obesity. Because Weight Loss had no contractual arrangement with Blue Cross as either a preferred provider or a participating provider, Walters would expect to pay more than if he used a provider that had a contract. Nevertheless, Walters had outpatient laparoscopic surgery at Weight Loss to help him better control his weight. Although Walters obtained preauthorization from Blue Cross for the surgery, there was no indication in the record that he requested or received information about his out-of-pocket costs. Weight Loss billed Blue Cross for the procedure. The Blue Cross Plan paid $2,300 according to the Plan’s benefit for out-of-network providers. Weight Loss appealed the payment to the federal Office of Personnel Management (OPM), which held that Blue Cross’s interpretation of Walters’s Plan was correct and it had paid the proper amount. The district court affirmed OPM’s decision. Upon review, the Tenth Circuit determined that OPM reasonably interpreted the Plan language. However, the Court reversed the district court’s decision because OPM neither (1) reviewed the evidence that would show whether Blue Cross had correctly calculated the Plan allowance, nor (2) explained why such review was unnecessary.

Plaintiff-Appellant Larry Lauer filed a complaint against the Utah State Office of Rehabilitation and three of its employees alleging Defendants discriminated against him for being disabled. Plaintiff did not explain the nature of the alleged discrimination or how the Defendants were involved. The district court dismissed Plaintiff’s complaint without prejudice, allowing him an opportunity to submit an amended complaint. Rather than submitting an amended complaint, Plaintiff filed a motion to amend and for injunctive relief along with a supporting brief. Like the original complaint, these filings lacked any factual allegations relating to the claimed discrimination. Following a hearing, the district court denied the motion to amend and closed the case. Plaintiff timely appealed to the Tenth Circuit who, upon review, affirmed the district court’s order: “even liberally construing [Plaintiff’s] subsequent pro se submittals as a form of amended complaint, they do not allege any facts that might give rise to a claim for relief.”

Plaintiffs Aviva Life & Annuity Company and American Investors Life Insurance Company (collectively, "Aviva") contended the Federal Deposit Insurance Corporation (FDIC) acted in an arbitrary and capricious manner in rendering insurance determinations concerning certain of Plaintiffs’ bank deposit accounts. They appealed a district court’s order upholding the FDIC’s determinations. In 2008, the Kansas Bank Commissioner closed Columbian Bank & Trust Company and appointed the FDIC as receiver. At that time, Plaintiffs maintained twelve deposit accounts at Columbian. The bulk of those funds were held in two accounts (the “Challenged Accounts”). The remaining accounts bore a variety of titles. Shortly after its appointment as receiver, the FDIC determined that each Plaintiffs’ respective accounts identified as “operating” accounts, which included the Challenged Accounts, would be aggregated as corporate accounts. The FDIC further determined that the accounts designated as “benefits” accounts would be separately insured as annuity contract accounts. Upon review of the FDIC's determination and the applicable legal authority, the Tenth Circuit found that the FDIC ultimately concluded the deposit account records clearly and unambiguously indicated the Challenged Accounts were owned in the manner of “corporate accounts.” Plaintiffs’ extrinsic evidence was not, therefore, “relevant data” for purposes of the FDIC’s final insurance determination: "[t]he absence of any discussion pertaining to this evidence in the FDIC’s final determination is therefore unsurprising, and in no way arbitrary or capricious." The Court affirmed the FDIC's determination.

Plaintiff-Appellant Louanne Cypert brought suit under 42 U.S.C. 1983 and several anti-discrimination statutes alleging that Defendant Independent School District No. I-050 of Osage County's (Prue Public Schools) failure to renew her employment contract violated her First and Fourteenth Amendment rights. Specifically, Plaintiff claimed the District discriminated against her because of her age. The district court granted the District summary judgment, finding that Plaintiff's non-renewal hearing satisfied her Fourteenth Amendment claim to due process, and that she failed to show her speech was the motivating factor that led to the District's non-renewal, and that she failed to show the District's non-renewal resulted from discrimination. In the fall of 2008, the local School Board became concerned about the District’s finances. It initiated an investigation and began terminating employment contracts. Plaintiff's contract was one of the terminated contracts. On appeal, Plaintiff proffered evidence of the Board's keeping younger, lesser-qualified personnel on staff at the time of her termination. Upon review of the trial court's record and the applicable authority, the Tenth Circuit found that Plaintiff's proffered evidence of discrimination did not amount to the requisite proof that her civil and constitutional rights were violated. The Court affirmed the lower court's grant of summary judgement in favor of the District.

Plaintiff-Appellant Terry Winne appealed a district court's order that dismissed his complaint for failing to state a claim under the Family and Medical Leave Act (FMLA). In 1999, Winne began working for the City of Lakewood, Colorado as an emergency dispatcher. In 2005, he was injured in an automobile accident, requiring that he take medication for headaches. A change in his medication in January 2008 caused him to “suffer cognitive problems,” and he was placed on intermittent FMLA leave throughout “the spring and summer.” On August 11, 2008, the City transferred Winne to the police department’s records section after a psychiatrist found him unfit for his dispatcher duties. Roughly two weeks later, the City fired Winne, “even though he still had available FMLA leave.” The City stated “that the termination was because of his attendance.” Upon review, the Tenth Circuit found that Plaintiff's complaint failed to allege the material elements necessary for his FMLA claim. The Court affirmed the district court's dismissal of his case.

Plaintiffs Kansas Judicial Review, the Honorable Charles Hard and Robb Rumsey appealed a district court order that denied their motion for attorney's fees. The Tenth Circuit was asked to decide whether Plaintiffs qualified as "prevailing parties" when they secured a preliminary injunction that afforded some of the relief sought in their complaint. The court granted the injunction after finding Plaintiffs were substantially likely to succeed on the merits of their claims. The actions of third parties mooted the case before the Tenth Circuit had the opportunity to determine the validity of the preliminary injunction on appeal. Upon review of the trial record, the Tenth Circuit concluded that the preliminary injunction conferred prevailing-party status on Plaintiffs, and reversed the judgment of the lower court that held otherwise. The Court remanded the case for further proceedings.

Plaintiffs David Scherer, John Licht, Mike Lopez, Barbara Brickley and Aaron Johnson brought suit to challenge the U.S. Forest Service's "amenity fee" through which it charges visitors to Mount Evans national park in Colorado. Plaintiffs asked the Tenth Circuit to strike down the Forrest Service's fee policy as facially inconsistent with Congress's directions and to hold it null and void in all applications. Upon review, the Court found it cannot strike the fee: "for better or worse, the Legislature has said that the Service may - sometimes - charge visitors. . . so some lawful applications of the policy do exist. . . [the fee] might well be susceptible to a winning challenge as applied to certain particular visitors, perhaps even the plaintiffs themselves. But that's a path the plaintiffs haven't asked us to explore and so one we leave for another day." The Court affirmed the lower court's dismissal of Plaintiffs' case.