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

In 2016 Watchous Enterprises, LLC contracted with one of the five individual defendant companies, Pacific National Capital, paying it a $7,600 nonrefundable deposit to secure help finding a lender or a joint-venture partner. Pacific introduced Watchous to companies affiliated with Waterfall Mountain LLC (collectively referred to as "Waterfall"). Watchous and Waterfall eventually executed a letter of intent to enter into a joint venture to which Waterfall would contribute more than $80 million. As part of the arrangement, Watchous paid Waterfall a $175,000 refundable deposit. Waterfall said that it would fund the venture through proceeds of loans backed by billions of dollars in Venezuelan sovereign bonds in the name of Waterfall or its lender (RPB Company). But Waterfall never funded Watchous, and Watchous was never refunded the $175,000. Watchous then filed suit under the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and common-law claims under Kansas law against Pacific and Waterfall as well as against the five Appellants sued individually. The district court granted partial summary judgment in favor of Watchous on its fraud claims (leaving damages for the jury to decide), essentially on the ground that Appellants misrepresented and failed to disclose “the historic and contemporary facts about Waterfall’s dubious finances, loan defaults, and consistent lack of success in funding similar projects.” Watchous’s remaining claims proceeded to trial, where a jury found that Appellants engaged in a civil conspiracy to defraud Watchous, and had violated RICO. Appellants appealed, but finding no reversible error, the Tenth Circuit affirmed. View "Watchous Enterprises v. Mournes, et al." on Justia Law

Plaintiff Team Industrial Services, Inc. (Team) suffered a $222 million judgment against it in a wrongful-death lawsuit arising out of a steam-turbine failure in June 2018 at a Westar Energy, Inc. (Westar) power plant. Team sought liability coverage from Westar, Zurich American Insurance Company (Zurich), and two other insurance companies, arguing that it was, or should have been, provided protection by Westar’s Owner-Controlled Insurance Program (OCIP) through insurance policies issued by Zurich and the two other insurers. Team’s claims derived from the fact that its liability for the failure at the Westar power plant arose from work that had previously been performed by Furmanite America, Inc. (Furmanite), which had coverage under Westar’s OCIP. The district court granted summary judgment to Defendants, and Team appealed. Not persuaded by Team's arguments for reversal, the Tenth Circuit affirmed the district court. View "Team Industrial Services v. Zurich American Insurance Company, et al." on Justia Law

Plaintiff-Appellant E.W. was a participant in an employer-sponsored health insurance plan governed by the Employee Retirement Income Security Act of 1974 (“ERISA”). E.W.’s daughter, Plaintiff-Appellant I.W., was a beneficiary of E.W.’s plan. From September 2016 through December 2017, I.W. received treatment in connection with mental health challenges and an eating disorder at Uinta Academy (“Uinta”), an adolescent residential treatment center in Utah. In January 2017, Defendants-Appellees Health Net Insurance Company and Health Net of Arizona, Inc. began covering I.W.’s treatment under E.W.’s ERISA plan (the “Plan”). Effective February 23, 2017, Health Net determined I.W.’s care at Uinta was no longer medically necessary, and it denied coverage from that day forward. In assessing whether to discontinue coverage, Health Net applied the McKesson InterQual Behavioral Health 2016.3 Child and Adolescent Psychiatry Criteria. Health Net determined I.W. did not satisfy the InterQual Criteria within the relevant period and notified Plaintiffs in a letter dated March 1, 2017. Plaintiffs allegedly did not receive Health Net’s March 2017 denial letter, and I.W. remained at Uinta until December 2017, when she was formally discharged. After receiving notice in May 2018 that Health Net had denied coverage effective February 23, 2017, Plaintiffs appealed the decision. Health Net again determined I.W. did not satisfy the InterQual Criteria during the relevant period and upheld its initial denial. Plaintiffs then appealed to an external reviewer, which upheld the decision to deny coverage. Health Net moved to dismiss plaintiffs' legal claims under ERISA and the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (“MHPAEA”). The district court denied Plaintiffs’ motion and granted summary judgment to Health Net. After review, the Tenth Circuit affirmed the district court’s decision granting summary judgment to Health Net on Plaintiffs’ ERISA claim; the Court reversed the finding Plaintiffs failed to state a claim under MHPAEA; and the case was remanded for further proceedings. View "W., et al. v. Health Net Life Insurance Company, et al." on Justia Law

Timothy Chischilly gathered five relatives to get something “off his chest.” To the shock of the relatives, Chischilly confessed that he and his girlfriend, defendant-appellee Stacey Yellowhorse, had killed a woman. The relatives told law enforcement about Chischilly’s confession, and the accounts were largely consistent: Chischilly had admitted: he held the woman down while Yellowhorse bludgeoned the woman with a sledgehammer or mallet; and he and Yellowhorse pinned the woman down with nails and a hammer. Authorities later found parts of the woman’s skeletal remains in various locations, including a fire pit next to Chischilly’s house. Despite confessing to the murder, Chischilly pleaded not guilty. That plea led the district court to set Chischilly’s trial after Yellowhorse’s. At Yellowhorse’s upcoming trial, the government wanted Chischilly to testify about what he told his relatives. Because his statements were self-incriminating, however, the government expected Chischilly to invoke the Fifth Amendment if he was called as a witness. So the government asked the district court to allow the relatives to testify at Yellowhorse’s trial about three of Chischilly’s statements. Chischilly's statements would ordinarily constitute inadmissible hearsay; the hearsay exception would apply only if Chischilly's statements harmed his penal interest and had corroboration. The government argued the district court applied the wrong test by assuming that Chischilly’s statements about Yellowhorse’s involvement were not self-inculpatory. Yellowhorse disagreed, adding that the excluded parts were also inadmissible because the court shouldn’t have found corroboration. In the Tenth Circuit's view, the district court’s approach contradicted its precedent. The case was remanded for the district court to reconsider the admissibility of Chischilly’s statements to his relatives. View "United States v. Yellowhorse" on Justia Law

On August 1, 2016, Plaintiff Sean Stetson and Defendant Edmonds were part of a low-speed, sideswipe vehicle accident. Although no one reported injuries on the scene, two weeks after the accident, Plaintiff sought medical treatment for injuries he claimed he sustained in the accident. With this visit, Plaintiff filed his now "plainly evident" campaign to fabricate a claim for damages. When a party to litigation seeks to intentionally deceive the court and its adversary, a district court may issue reasonable sanctions and require the deceitful party to pay attorney fees. Finding plaintiff did just that, and the district court sanctioned him with reasonable attorney fees and dismissal of his non-economic claims, the Tenth Circuit affirmed the sanctions. View "Stenson v. Edmonds, et al." on Justia Law

Defendants filed an interlocutory appeal, challenging the district court’s denial of qualified immunity to Officer David McNamee, Officer Cory Budaj, and Sergeant Patricio Serrant. Between May 28 and June 2, 2020, several large protests occurred on Denver streets in reaction to the murder of George Floyd in Minneapolis. On May 30, then-Denver Mayor Michael Hancock declared a state of emergency and imposed a curfew; he also requested assistance from mutual aid police departments, including the Aurora Police Department. At about 9 p.m. on May 31, Plaintiff Zachary Packard was protesting near downtown Denver when a police officer threw a tear gas canister near Packard. Packard kicked the cannister“away from himself and other protesters, in the direction of a line of officers.” Packard kicked the canister about five to ten feet away from himself and other protesters. Critically, this action “did not pose an immediate threat,” the district court concluded, “because officers were equipped with gas masks that protected them from any gas from that container.” Immediately after kicking the canister, Packard was hit in the head with a beanbag round fired from a shotgun; the round knocked him unconscious and caused major injuries. One of the officers on Sergeant Serrant’s line was Defendant Officer McNamee. He fired several beanbag rounds at the time Packard was shot, but the parties disputed whether Officer McNamee was the officer who shot Packard. The district court concluded Plaintiffs raised genuine disputes of material fact as to whether Sergeant Serrant and Officer McNamee were “personally involved in the alleged violation of Mr. Packard’s rights.” The Tenth Circuit Court of Appeals found no reversible error in the district court's judgment and affirmed. View "Duran, et al. v. Budaj, et al." on Justia Law

Defendant Terrence Taylor plead guilty to two counts of being a felon in possession of ammunition and one count of felon in possession of firearms. On appeal, he argued these charges were multiplicitous in violation of the Double Jeopardy Clause. The Tenth Circuit rejected this argument because he waived his multiplicity claim when he entered his plea to the three separate offenses. View "United States v. Taylor" on Justia Law

The plaintiffs in this case, which included the estate and surviving family members of Allan Thomas George, filed a 42 U.S.C. § 1983 action against the City of Rifle, Colorado (the City), Tommy Klein, the chief of the Rifle Police Department (RPD), and Dewey Ryan, a corporal with RPD, alleging that the defendants violated George’s Fourth Amendment rights by employing excessive and deadly force against him in the course of attempting to arrest him on a felony warrant. Plaintiffs also raised a Colorado state law claim of battery causing wrongful death against Ryan. Defendants moved for summary judgment with respect to all of the claims asserted against them. Defendants Ryan and Klein asserted, in particular, that they were entitled to qualified immunity from the § 1983 excessive force claim. The district court denied defendants’ motion in its entirety. Defendants filed an interlocutory appeal challenging the district court’s ruling. After review, the Tenth Circuit concluded that where, as here, a police officer’s employment of deadly force against a fleeing felony suspect was objectively reasonable under the Fourth Amendment, the officer’s use of force cannot, as a matter of law, be deemed to be in “conscious disregard of the danger.” The Court therefore concluded the district court erred in denying summary judgment to the defendant officers, and reversed with respect to all defendants. View "Estate of Allan George, et al. v. Ryan, et al." on Justia Law

Plaintiff-Appellant Gracie Ann Forth appealed the grant of summary judgement entered in favor of Defendant-Appellee Laramie County School District Number 1 (“LCSD1”) on Forth’s claim under Title IX of the Education Amendments of 1972 (“Title IX”). Forth alleged that while she was a student at Johnson Junior High School (“JJHS”), a school within LCSD1, one of her seventh-grade teachers, Joseph Meza, sexually abused her over several years beginning in 2014. Forth alleged principals at JJHS had actual notice that Meza posed a substantial risk of abuse and were deliberately indifferent to these risks, thereby violating Title IX. On LCSD1’s motion, the district court concluded LCSD1 did not have actual notice Meza posed a substantial risk of abuse before it learned that Forth had reported him to the police. The Tenth Circuit Court of Appeals concluded after review, that the district court erred in finding Forth failed to establish such notice by LCSD1 during the period before LCSD1 learned of her police report, and erred in concluding LCSD1 (in lacking such notice) was not deliberately indifferent during that period. The summary judgment was reversed and the matter remanded for the district court to address in the first instance. View "Forth v. Laramie County School District" on Justia Law

Defendant-Appellant Dalton “Dash” Brown pled guilty to a single count of being a felon in possession of ammunition, and was sentenced to 120 months’ imprisonment and three years’ supervised release. On appeal, he challenged the sentence, arguing the district court improperly calculated his offense level under the Sentencing Guidelines. According to Brown, the district court erred in applying: (1) a multiple-firearms enhancement; (2) a stolen-firearm enhancement; (3) a higher base offense for possession of a high-capacity magazine; (4) a reckless-endangerment upward-adjustment; and (5) an “in-connection-with” enhancement. He urges the court to reverse and remand for resentencing with a lower offense level. Findnign no reversible error, the Tenth Circuit affirmed the sentence. View "United States v. Brown" on Justia Law