In an opinion colored by aviation-themed puns, Judge Thapar, writing for the Sixth Circuit in Flight Options, LLC v. Int’l Bhd. of Teamsters, Local 1108, ordered airlines and pilot unions to arbitrate their long-running dispute. A few years ago, two luxury airlines merged, leading to a spate of litigation. Most recently, the airlines attempted to … Continue Reading
In Stein v. hhgregg, a split panel of the Sixth Circuit held that a written policy would trump the company’s actual practices. hhGregg employs retail sales employees that are paid under a “draw-on-commission policy.” Under that policy, sales employees are paid on the basis of commissions only. If after dividing the employee’s weekly commission by … Continue Reading
While the headlines from the Flint water crisis have all but subsided, two consolidated putative class actions arising from the crisis gained new life over the summer as a result of the Sixth Circuit’s ruling in Boler v. Earley. The Boler decision examined whether two groups of plaintiffs’ constitutional claims were preempted by the federal … Continue Reading
In MAG IAS Holdings, Inc. v. Schmuckle (No. 16-1550), the Sixth Circuit issued its first published decision interpreting the reach of specific jurisdiction under Walden v. Fiore, 134 S. Ct. 1115 (2014). The panel held that Walden stands for the idea that “an out-of-state injury to a forum resident, standing alone, cannot constitute purposeful availment” … Continue Reading
Last week in Marshall v. Rawlings, a split panel of the Sixth Circuit held that the cat’s paw theory of liability applies to FMLA retaliation claims. In Marshall, an employee was fired after using FMLA leave. The employee sued for FMLA retaliation, ADA discrimination, FMLA interference, and intentional infliction of emotional distress. The district … Continue Reading
In Hitchcock v. Cumberland University 403(b) DC Plan, the Sixth Circuit decided what could be a very important case in ERISA litigation. Practitioners are familiar with the common injunction upon plaintiffs to exhaust administrative remedies before they seek relief in court, as well as the limited and narrow exceptions to that requirement. But the question … Continue Reading
Last week, the Sixth Circuit granted en banc review in Bormuth v. County of Jackson, where a split panel had held that a district court had erred in rejecting the plaintiff’s argument that the prayer preceding a Michigan county’s Board of Commissioners’ monthly meeting violated the First Amendment by coercing residents to support and participate in the … Continue Reading
In Metropolitan Government of Nashville & Davidson County v. Hildebrand, the Sixth Circuit explains how to read the phrase “applicable nonbankruptcy law” as used in the Bankruptcy Code. The chapter 13 individual bankruptcy case discussed the phrase in the context of 11 U.S.C. § 511(a), which provides that the appropriate interest rate for tax claims … Continue Reading
In Summa Holdings, Inc. v. Comm’r of Internal Revenue, a unanimous panel reversed the judgment of a United States Tax Court and rejected the Tax Commissioner’s attempt to reclassify a series of transactions which had originally allowed two taxpayers to avoid Roth IRA contribution limits and lower their tax obligations. The Court recognized that the … Continue Reading
In NetJets, Inc. v. IntelliJet Group, LLC, the Sixth Circuit offered important interpretations, regarding trademark infringement, of both federal law and Ohio common law on trademarks. In a careful and deliberate analysis that in part affirmed, reversed, and remanded the district court’s holding, the Court offered a view into what trademark holders, and alleged trademark … Continue Reading
A unanimous panel of the Sixth Circuit held today in D.O., et al. v. Glisson that the Child Welfare Act creates a private right to foster-care maintenance payments enforceable by a foster parent under 42 U.S.C. § 1983. The CWA provides for federal foster care and adoption assistance to eligible states. To be eligible, a state … Continue Reading
United States ex rel. Andrew Hirt v. Walgreen Company offers an important cautionary tale for plaintiffs considering claims, or defendants facing claims, brought under the False Claims Act. But it also offers some insights regarding allegations of fraud more generally. The Sixth Circuit faced, head-on, the question of the heightened pleadings standard, and made clear … Continue Reading
Yesterday, in Linglong Americas, Inc. v. Horizon Tire, Inc., a unanimous panel of the Sixth Circuit rejected a tire manufacturer’s attempt to compel arbitration of claims in China under a contract that had already expired. The manufacturer and its distributor had a “Collaboration Agreement” with an arbitration clause. The agreement expired in 2011 and was … Continue Reading
In United States ex rel. Harper v. Muskingum Watershed Conservancy District, a divided panel of the Sixth Circuit interpreted the 2010 amendments to the False Claims Act (FCA) and affirmed the district court’s dismissal of relators’ qui tam action filed under the FCA’s reverse-false-claim and conversion provisions. Relators alleged that Muskingum Watershed Conservatory District (MWCD), … Continue Reading
On Friday, the Sixth Circuit refused to overturn a $225 million settlement deal reached between end-payor plaintiffs and auto parts makers accused of price fixing. Two objectors to the deal had asked the court to review a June order by U.S. District Judge Marianne O. Battani granting final approval to settlement in 19 cases that … Continue Reading
In Mason v. Lockwood, Andrews & Neuman, a split panel of the Sixth Circuit affirmed a district court’s decision to remand a class action to state court under the “local controversy” exception to the Class Action Fairness Act. CAFA requires a court to “decline” jurisdiction over a class action that otherwise qualifies for federal court … Continue Reading
In Shane Group, Inc. v. Blue Cross Blue Shield of Mich., a unanimous panel of the Sixth Circuit vacated the district court’s orders sealing “most of the parties’ substantive filings” and approving a class action settlement in a price-fixing action against an insurer. In vacating the orders placing documents under seal and the settlement approval, … Continue Reading
Under the Equal Credit Opportunity Act (“ECOA”), creditors who deny credit or change the terms of credit arrangements must notify applicants of the specific reasons why. At issue in the Sixth Circuit’s recent decision in Tyson v. Sterling Rental, Inc. is whether a “middle man” like a car dealership is a “creditor” that must meet … Continue Reading
In D.E. v. Doe (15-2128), the Sixth Circuit upheld the conviction of a teenager who “took a wrong turn on his way to summer camp.” When he reached the Canadian border, he asked permission to turn around without crossing the border—but had his car searched instead. The opinion written by Judge Rogers holds that a … Continue Reading
In a recent decision that affects judicial elections in Kentucky and throughout the Sixth Circuit (Winter v. Wolnitzek), a unanimous panel weighed eight provisions in Kentucky’s Code of Judicial Conduct against the First Amendment free speech rights of judicial candidates. The specific provisions included prohibitions on (1) “campaign[ing] as a member of a political organization” … Continue Reading
In an unpublished opinion Star Insurance Company vs. National Union Fire Insurance Company of Pittsburgh, PA, the Sixth Circuit vacated a judgment of the district court confirming an arbitration award for roughly $20 million. To say that is an unusual outcome is an understatement, as courts generally confirm arbitration awards against all manner of challenges. … Continue Reading
In Energy Conversion Devised Liquidation Trust vs. Trina Solar Limited, the Sixth Circuit rejected a $3 billion antitrust case filed by a bankrupt solar energy company. The plaintiff alleged that three solar panel producers in China agreed to decrease prices to below cost levels, with the support of the Chinese government, and in so doing, … Continue Reading
The Sixth Circuit issued a short tongue-lashing this week, calling claims by former college athletes in Marshall v. ESPN, “a legal fantasy.” Former basketball and football players brought a putative class action against college athletic conferences and TV networks, claiming a right to the licensing of their names and images in the television broadcast of … Continue Reading
When one company acquires another, the “successor” company is not automatically responsible for warning purchasers regarding alleged defects in products previously sold by its predecessor. In Holland v. FCA US LLC, the Sixth Circuit affirmed the district court’s grant of a motion for judgment on the pleadings in favor of a successor to an automobile … Continue Reading
