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

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

Plaintiffs-Appellants Bryan and JoLynne Toone executed a promissory note secured by a deed of trust on their home. The note was assigned several times. After the Toones defaulted on the Note, their home was scheduled to be sold at a trustee’s foreclosure sale. They filed suit to halt the foreclosure and to obtain damages and declaratory relief based on alleged violations of statutory and common-law duties by numerous parties who had current or prior interests in the Note and Trust Deed or were involved in the foreclosure efforts. The district court denied relief and the Toones appealed. Finding no abuse of the district court's discretion in denying the Toones relief, the Tenth Circuit affirmed the lower court's decision. View "Toone v. Wells Fargo Bank, N.A." on Justia Law

Defendant-Appellant Kevin Loughrin was convicted of bank fraud and other charges arising from a check and identity theft scheme. He appealed his conviction on two grounds: (1) the district court’s jury instructions on the bank fraud counts were erroneous because they did not contain a requirement that defendant intended to defraud a bank; and (2) the delay between his indictment and trial violated his rights under the Speedy Trial Act. Upon review, the Tenth Circuit rejected both of defendant's grounds for appeal and affirmed his conviction. View "United States v. Loughrin" on Justia Law

Defendant-Appellant Samuel Barajas was convicted by jury of conspiracy to distribute more than 500 grams of methamphetamine, aiding and abetting possession with intent to distribute 50 grams or more of methamphetamine, and using a communication facility (a cellular telephone) in committing, causing, and facilitating the conspiracy. Defendant was sentenced to life in prison on the first two counts, four years concurrent on Count 3, and to five years’ supervised release on Counts 1 and 2, and one year on Count 3, again to run concurrently. On appeal, he challenged the denial of his motion to suppress all evidence obtained from the wiretap surveillance and GPS pinging of certain cell phones. Finding no error at trial, the Tenth Circuit affirmed Defendant's convictions and sentences. View "United States v. Barajas" on Justia Law

Petitioner Jose Cardoza brought this lawsuit pursuant to the Employee Retirement Income Security Act of 1974 (ERISA), to challenge United of Omaha Life Insurance Company’s calculation of his long-term disability benefits (LTD benefits). United of Omaha answered, asserting its calculation was appropriate, and counterclaimed, demanding that Petitioner reimburse it for payments of short-term disability benefits (STD benefits) which it claimed were miscalculated. On cross-motions, the district court granted Petitioner's motion for summary judgment and denied United of Omaha’s motion, concluding United of Omaha’s decision to calculate Petitioner's LTD benefits and recalculate his STD benefits as it did was arbitrary and capricious. United of Omaha appealed. Upon review, the Tenth Circuit concluded that the district court erred in granting Petitioner's motion for summary judgment with respect to United of Omaha’s LTD benefits calculation: "[t]he plain language of the long-term disability benefits policy instructed United of Omaha to base its calculation of Cardoza’s LTD benefits on his earnings as verified by the premium it received. Thus, United of Omaha’s decision to do so was reasonable and made in good faith." The district court did not err, however, in granting Petitioner's motion for summary judgment with respect to United of Omaha’s recalculation of his STD benefits and demand for reimbursement "United of Omaha’s decision to recalculate Cardoza’s STD benefits based on his earnings verified by premium rather than his actual earnings was not reasonable." The Court therefore reversed in part, affirmed in part, and remanded the case to the district court for further proceedings. View "Cardoza v. United of Omaha Life Insurance" on Justia Law

Plaintiff-Appellant David Becker was pulled over by Defendant-Appellee Officer Jason Bateman in a parking lot in Heber City, Utah. A confrontation ensued which ended in Plaintiff being thrown to the ground and suffering a severe traumatic brain injury. Plaintiff brought suit against Officer Bateman, the Heber City Chief of Police in his official capacity, and Heber City under 42 U.S.C. 1983, alleging Officer Bateman used excessive force in violation of the Fourth Amendment. He also asserted a claim for loss of consortium. The district court granted the defendants' motion for summary judgment, concluding Officer Bateman did not violate Plaintiff's constitutional rights. Because the violation of constitutional rights Plaintiff asserted was not clearly established at the time of the violation, the Tenth Circuit affirmed the district court’s grant of summary judgment to Officer Bateman. However, the district court erred in concluding there were no genuine issues of material fact as to whether a constitutional violation occurred. The grant of summary judgment in favor of the City was therefore reversed. On remand, the district court must determine whether Plaintiff can withstand summary judgment as to the second element of his municipal liability claim. Similarly, the district court must determine whether Mrs. Becker could maintain a cause of action for loss of consortium against the City in light of the Court's ruling that a reasonable jury could conclude Plaintiff's constitutional rights were violated. View "Becker v. Bateman" on Justia Law

This appeal arose from a crime committed over thirty years ago - the rape and murder of a teenager near an isolated dam outside of Carlsbad, New Mexico. Several young men were convicted of the crime, including Petitioner-Appellee Carl Case. Those convictions were upheld by the state courts in New Mexico both on direct and collateral review, and Petitioner's first habeas petition in federal court was denied. In 2008, he filed an application for permission to file a second habeas petition with the Tenth Circuit. He claimed constitutional error occurred at trial based on the discovery of new and previously undisclosed evidence involving a trial witness, and the recantation of trial testimony by two prosecution witnesses nearly twenty years after the trial. Upon careful review of the trial court record, the Court was "satisfied" that Petitioner's due process rights were not violated and that he received a fundamentally fair trial. The Court was also satisfied that the newly discovered evidence did not require a new trial. Accordingly, Petitioner court not satisfy the requirements of 2244(b)(2)(B). Because of that, his application for permission to file a second or successive habeas petition was denied. View "Case v. Hatch" on Justia Law

Full Life Hospice participates in the federal Medicare program. It sought reimbursement for hospice services provided to Medicare recipients from the Department of Health and Human Services (HHS). A fiscal intermediary, acting on behalf of HHS, later contested some of these reimbursements and demanded repayment of funds that it claimed were distributed in excess of a spending cap. Full Life unsuccessfully challenged HHS intermediary’s determination through an administrative appeal, which was denied as untimely. On appeal to the district court, the court found no basis to excuse Full Life's untimely challenge. Upon review, the Tenth Circuit agreed with the district court that it lacked subject matter jurisdiction because of Full Life's failure to file a timely administrative appeal. View "Full Life Hospice v. Sebelius" on Justia Law

Defendant-Appellant Harald Dude secured a $1.9 million loan on his Aspen home from Washington Mutual Bank. He sought to borrow another $500,000 from Wells Fargo Bank. As part of the application process, Defendant completed a form for Wells Fargo's title insurance company, Plaintiff-Appellee Stewart Title Guaranty Company. The form required Defendant to disclose existing liens on property. Knowing that the company failed to discover the existence of the Washington Mutual loan, Defendant did not list the lien on Stewart Title's form. Wells Fargo proceeded with the second loan based on representations made on the form. Several years later, Defendant elected to sell the property. Stewart Title was contacted to provide title insurance. A second title search failed to reveal the Washington Mutual loan. The company again provided its disclosure form to Defendant who again omitted the Washington Mutual loan. At some point, Defendant stopped making payments on the Washington Mutual loan. Eventually it threatened the property's new owner with foreclosure. The new owner made a claim on her title insurance with Stewart Title. Honoring what it perceived to be its contractual obligations, Stewart Title paid Washington Mutual’s loan amount in full. Stewart Title then sued. A jury found Defendant liable for fraudulent misrepresentation. On appeal, Defendant and his company argued there was insufficient evidence to hold him liable. Finding sufficient evidence for which the jury could have found Defendant liable, the Tenth Circuit affirmed the verdict against him. View "Stewart Title v. Dude, et al" on Justia Law

Defendant-Appellant Amanda Addison and Melody St. Clair were tried for embezzling or converting funds from Northern Arapahoe Tribe’s Department of Social Services (DSS). On the third day of trial, the trial judge declared a mistrial as to St. Clair only and excluded her from the courtroom for the remainder of the trial. Addison was convicted. She appealed, raising two issues: (1) whether the exclusion of St. Clair violated Addison’s Sixth Amendment right to a public trial; and, (2) the evidence was sufficient to demonstrate criminal intent. Because the district court had a substantial reason for excluding St. Clair, no Sixth Amendment violation occurred. The evidence was sufficient to prove her knowing and intentional taking of DSS funds. Accordingly, the Tenth Circuit affirmed. View "United States v. Addison" on Justia Law