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

In an earlier appeal, the Tenth Circuit Court of Appeals ruled that Wyoming’s anti-indemnity statute would not defeat possible insurance coverage to an additional insured. In this second appeal and cross-appeal, the issue presented for the Court's review centered on whether the district court correctly ruled that additional-insured coverage existed under the applicable insurance policies; whether the district court entered judgment for the additional insured in an amount greater than the policy limits; and whether the district court correctly ruled that the additional insured was not entitled to prejudgment interest and attorneys’ fees. Ultra Resources, Inc. held a lease for a Wyoming well site. In January 2007, Ultra contracted with Upstream International, LLC under a Master Service Agreement to manage the well site. The Ultra-Upstream contract required Upstream to obtain insurance policies with a stated minimum amount of coverage for Ultra and Ultra’s contractors and subcontractors. To do so, Upstream obtained two policies from Lexington Insurance Company - a General Liability Policy (“General Policy”) and a Commercial Umbrella Policy (“Umbrella Policy”). Lexington issued and delivered the two policies in Texas. Ultra contracted with Precision Drilling (“Precision”) to operate a drilling rig at the well site. Precision maintained a separate insurance policy with Lloyd’s of London (“Lloyd’s”), covering Precision for primary and excess liability. Upstream employed Darrell Jent as a contract management of some Ultra well sites. Jent assumed that Precision employees had already attached and tightened all A-leg bolts on a rig platform. In fact, Precision employees had loosened the A-leg bolts (which attach the A-legs to the derrick) and had not properly secured these bolts. After supervising the pin removal, Jent had just left the rig floor and reached “the top step leading down from the rig floor” when the derrick fell because of the “defectively bolted ‘A- legs’ attaching the derrick to the rig floor.” Jent was seriously injured after being thrown from the steps, and sued Precision for negligence. Precision demanded that Ultra defend and indemnify it as required by the Ultra-Precision drilling contract. Ultra, in turn, demanded that Upstream defend Precision under the insurance policies required by the Ultra-Upstream Contract. The Tenth Circuit concluded the district court ruled correctly on each issue presented, so it affirmed. View "Lexington Insurance Company v. Precision Drilling Company" on Justia Law

A district court dismissed Plaintiff–Appellant Lawrence Smallen and Laura Smallen Revocable Living Trust’s securities-fraud class action against Defendant–Appellee The Western Union Company and several of its current and former executive officers (collectively, “Defendants”). Following the announcements of Western Union’s settlements with regulators in January 2017 and the subsequent drop in the price of the company’s stock shares, Plaintiff filed this lawsuit on behalf of itself and other similarly situated shareholders. In its complaint, Plaintiff alleged Defendants committed securities fraud by making false or materially misleading public statements between February 24, 2012, and May 2, 2017 regarding, among other things, Western Union’s compliance with anti-money laundering and anti-fraud laws. The district court dismissed the complaint because Plaintiff failed to adequately plead scienter under the heightened standard imposed by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). While the Tenth Circuit found the complaint may have given rise to some plausible inference of culpability on Defendants' part, the Court concurred Plaintiff failed to plead particularized facts giving rise to the strong inference of scienter required to state a claim under the PSLRA, thus affirming dismissal. View "Smallen Revocable Living Trust v. Western Union Company" on Justia Law

After committing crimes when he was seventeen years old, defendant Atorrus Rainer was convicted of two counts of attempted first-degree murder, two counts of first-degree assault, one count of first-degree burglary, and one count of aggravated robbery. For these crimes, the district court sentenced Mr. Rainer to 224 years in prison. On direct appeal, the convictions were affirmed. But the Colorado Court of Appeals ordered modification of the sentences, concluding that the prison terms for attempted first-degree murder and first-degree assault should have run concurrently, rather than consecutively, because the crimes could have been based on identical evidence. The Colorado Court of Appeals thus modified Mr. Rainer’s sentences to run for 112 years. After the direct appeal, the Supreme Court held in Graham v. Florida, 560 U.S. 48 (2010), that the Eighth Amendment prohibited life imprisonment without the possibility of parole for juveniles convicted of nonhomicide crimes. Under Graham, these juveniles were entitled to a meaningful opportunity for release based on demonstrated maturity and rehabilitation. Defendant sought habeas relief, claiming the State of Colorado deprived him of this opportunity by imposing the 112-year sentence for the crimes he committed as a juvenile. The Tenth Circuit Court of Appeals concluded the State provided defendant with the required opportunity through the combination of the Juveniles convicted as Adults Program, and the general parole program. View "Rainer v. Hansen" on Justia Law

Dr. Dennis Rivero appealed the grant of summary judgment awarded in favor of the University of New Mexico Board of Regents (Defendant). Dr. Rivero was employed full-time by the University of New Mexico Hospital (UNMH) from 1992 until early 2007, when he voluntarily decreased his workload to one day per month while he worked full-time in Oklahoma. After several months on this schedule, Rivero asked the chair of the UNMH orthopedics department, Dr. Robert Schenck, if he could return to full-time or three-quarter-time employment. For several years nothing came of this request, and Rivero continued to work in Oklahoma while spending only one day per month performing surgeries at UNMH. In December 2010, Schenck and Rivero agreed that Rivero could gradually reach a three-quarter-time position if he complied with certain conditions, namely that Rivero “attend four counseling sessions” before his workload would be increased. UNMH sent Rivero an addendum to his employment contract (the Addendum) to formalize the terms of the agreement. Rivero was “shocked by the requirements of the Addendum” and sought access to his personnel files. The University refused to turn over his files and withdrew the Addendum about two weeks later. Rivero continued to work one day a month at UNMH. After UNMH refused to let his see his personnel files, Rivero petitioned for a writ of mandamus in New Mexico state court seeking an order that UNMH provide him access to the files. The court ordered production of the files, and by January 2014 Rivero had received his complete files. He resigned from his position with UNMH a few months later, and pursued relief with the Equal Employment Opportunity Commission. After receiving a right-to-sue letter from the Agency, Rivero filed the underlying suit, alleging UNMH violated the Rehabilitation Act by requiring psychiatric evaluations and constructively discharging him on the basis of a perceived disability. After review, the Tenth Circuit Court of Appeals concluded summary judgment was appropriate: (1) Rivero’s claim relating to the Rehabilitation Act was untimely; and (2) his claim that he was constructively discharged was not supported by the evidence presented. View "Rivero v. Univ. N.M. Board of Regents" on Justia Law

Defendant-Appellant Michael Bacon appealed a district court’s decision to keep the supplement to his plea agreement filed under seal. In 2015, Bacon pleaded guilty to two counts of bank robbery and one count of robbing a credit union, pursuant to a written plea agreement. At his combined plea and sentencing hearing, the district court asked Bacon if he had signed the documents relating to his plea agreement. After responding that he had not, Bacon’s counsel explained that Bacon was “concerned about the [plea] supplement” and asked “for permission to file the plea agreement without the [plea] supplement. The district court responded that under Utah local rules, supplements were sealed in every case, “and we do that to protect the rare person who does cooperate.” Plea supplements describe the nature of the defendant’s cooperation with the government or lack thereof. Bacon ultimately refused to sign his plea supplement, explaining to the court that “[w]hen you go off to prison and you’ve got something sealed inside your paperwork and the yard gets the paperwork and they see you’ve got a sealed document, they think you cooperated, and they want to hurt you.” His counsel signed it on his behalf. At Bacon’s resentencing, the parties did not dispute that Bacon’s supervised release term should have been reduced to 36 months, however, a dispute emerged over the sealed plea supplement. Bacon addressed the court himself, regarding the sealed plea supplement, stating, “If I don’t wan’t [sic] to place my life in jeopardy, I don’t see how the federal government can force me to do that.” Bacon contended the district court erred by failing to consider the common law right of access to court documents and by failing to make case-specific findings regarding sealing on the record. The Tenth Circuit determined defendant was challenging the district court’s decision to keep a specific document under seal, not its authority to enact a local rule. “A presumption of openness must be overcome for a judicial record to remain under seal. The record demonstrates that the district court did not consider this presumption of access to judicial records.” Because the Court determined the district court failed to articulate a case-specific reason for its sealing decision, its decision was vacated and the matter remanded. View "United States v. Bacon" on Justia Law

Under Colorado law, employers must pay all employees time-and-a-half wages for overtime hours, with certain exemptions. Employers need not pay overtime wages to “companions, casual babysitters, and domestic employees employed by households or family members to perform duties in private residences.” The question this case presented for the Tenth Circuit’s review was whether “companions” working for third-party employers (rather than for households or family members) fell within the companionship exemption. The Court determined they do. Accordingly, it reversed the district court’s judgment concluding otherwise. View "Jordan v. Maxim Healthcare Services" on Justia Law

In 2013, a Wyoming court declared Andrew Johnson actually innocent of crimes for which he was then incarcerated. In 2017, after his release, Johnson brought suit under 42 U.S.C. 1983 against the City of Cheyenne, Wyoming, the Estate of Detective George Stanford (“the Estate”), and Officer Alan Spencer, alleging they were responsible for violations of his constitutional rights that contributed to his conviction. While incarcerated, however, Johnson had unsuccessfully brought similar suits against Cheyenne and Detective Stanford in 1991 (“1991 Action”) and against Officer Spencer in 1992 (“1992 Action”). The central question before the Tenth Circuit Court of Appeals was what effect the judgments against Johnson in his 1991 and 1992 Actions had on his 2017 Action. Answering this question required the Court to resolve two primary issues: (1) in addition to filing the 2017 Action, Johnson moved the district court under Federal Rule of Civil Procedure 60(b) for relief from the judgments in the 1991 and 1992 Actions, which Johnson contended the district court erred in denying; and (2) Cheyenne, the Estate and Officer Spencer each successfully moved to dismiss the 2017 Action because its claims were precluded by judgments in the 1991 and 1992 Actions, and Johnson likewise contended the court’s decision was made in error. The Tenth Circuit concluded the district court erred by denying Rule 60(b)(6) relief, and so those orders were vacated for reconsideration under the correct legal rubric. Because of the Court’s remand of Johnson’s Rule 60(b)(6) motions did not actually grant such relief (Rule 60(b)(6) relief is discretionary), the Tenth Circuit affirmed in part and reversed in part the district court’s dismissal of the 2017 Action. Specifically, the Tenth Circuit affirmed dismissal of claims against Cheyenne and the Estate because the judgment in the 1991 action was entitled to claim--reclusive effect. The Court reversed, however, dismissal of the claims against Officer Spencer because the judgment in 1992 was not on the merits, and thus, was not entitled to claim--reclusive effect. View "Johnson v. Spencer" on Justia Law

Defendant Bruce Bradley appealed a federal district court’s order denying his motion to dismiss a suit brought pursuant to 42 U.S.C. 1983 based on qualified immunity. Plaintiff Susan Ullery alleged Defendant violated, among other things, her Eighth Amendment right to be free from cruel and unusual punishment by using excessive force against her in the form of sexual assault and abuse. Plaintiff was a former inmate at the Denver Women’s Correctional Center, which was a prison in the Colorado state prison system. Between early 2014 and April 2016, Plaintiff worked in the canteen services at the prison under the direction of Defendant, a corrections officer and supervisor of inmates who worked in the department. During this time, Defendant sexually harassed, abused, and assaulted Plaintiff. On appeal, Defendant did not challenge the district court’s determination that he violated a constitutional right. Rather, Defendant argued he was entitled to qualified immunity even if he violated the Constitution because Plaintiff’s asserted Eighth Amendment right to be free from sexual abuse was not clearly established at the time of the alleged violations. After review of the district court record, the Tenth Circuit Court of Appeals concluded the district court erred to the extent it held the contours of the asserted constitutional right were clearly established before August 11, 2015. But the Court further concluded any reasonable corrections officer in Defendant’s position since August 11, 2015, would have known the alleged conduct violated the Eighth Amendment based upon the clearly established weight of persuasive authority. “Because any actionable constitutional violations in this case would necessarily have occurred after this date, the law was clearly established for all relevant purposes; the district court therefore correctly denied Defendant qualified immunity.” View "Ullery v. Bradley" on Justia Law

Stacey Janssen alleged Lawrence Memorial Hospital ("LMH") engaged in two healthcare schemes to fraudulently receive money from the United States. Janssen first contended LMH falsified patients’ arrival times in order to increase its Medicare reimbursement under certain pay-for-reporting and pay-for-performance programs the Government used to study and improve hospitals’ quality of care. Second, Janssen contended LMH falsely certified compliance with the Deficit Reduction Act in order to receive Medicare reimbursements to which it was otherwise not entitled. LMH moved for summary judgment below, arguing Janssen failed to show her allegations satisfied the Act’s materiality requirement - that the alleged falsehoods influenced the Government’s payment decision as required under the FCA. The district court granted LMH summary judgment on all of Janssen’s claims on this basis, and finding no reversible error, the Tenth Circuit affirmed. View "United States ex rel. Janssen v. Lawrence Memorial Hospital" on Justia Law

Thomas Alpern claimed the United States Forest Service improperly charges him a fee when he entered Maroon Valley to park and hike. He cited an provision of the Federal Lands Recreation Enhancement Act (REA) he claimed prohibited charging a fee "solely for parking." He argued that this prohibition overrode another REA provision that allowed agencies to charge a fee when certain listed amenities were present, like picnic tables, security patrols, trash bins, and interpretive signs. The Tenth Circuit disagreed, finding section 6802(d)(1)(A) prohibited charging fees “[s]olely for parking . . . along roads or trailsides[,]” something Alpern did not do. The Court found Alpern parked in a developed parking lot featuring all the amenities listed in section 6802(f)(4), not along a road or trailside. So it affirmed the district court’s decision to reject Alpern’s as-applied challenge to the Maroon Valley fee program. View "Alpern v. Ferebee" on Justia Law