Justia U.S. 8th Circuit Court of Appeals Opinion Summaries

The case involves a pass-through billing scheme orchestrated by Beau Gertz, Mark Blake, SeroDynamics, and LabMed Services (collectively, the Sero Defendants). They made it appear that blood tests conducted at their Colorado lab were performed at a small hospital in Unionville, Missouri, resulting in a $26.3 million profit. The scheme involved billing Blue Cross using the hospital's provider numbers, despite the tests not being conducted there. Blue Cross paid the hospital $18,053,015 for these tests. The Sero Defendants were found liable for fraud, tortious interference with contract, civil conspiracy, and money had and received.The United States District Court for the Western District of Missouri oversaw the trial. After five days of evidence, the jury found the Sero Defendants liable and awarded Blue Cross $18,053,015 in compensatory damages and $1.9 million in punitive damages against each of the four Sero Defendants. The Sero Defendants appealed, raising multiple claims of error, including the exclusion of their lead counsel from delivering closing arguments and the admission of certain evidence.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court affirmed the district court's judgments, finding no abuse of discretion in the exclusion of lead counsel from closing arguments due to repeated misconduct. The court also upheld the admission of a portion of an audit report, finding it relevant and not unfairly prejudicial. The court found sufficient evidence to support the jury's findings of fraud and tortious interference, noting that the Sero Defendants had actual knowledge of the contract between Putnam and Blue Cross and intentionally interfered with it. The court also upheld the jury's award of damages and punitive damages, finding no miscarriage of justice.In conclusion, the Eighth Circuit affirmed the district court's judgments, rejecting all of the Sero Defendants' claims of error. View "RightCHOICE Managed Care v. Labmed Services, LLC" on Justia Law

Joshua Francisco, an inmate at Farmington Correctional Center (FCC), suffered from mental illness and was placed on suicide watch multiple times during his incarceration. Despite receiving treatment and being evaluated by mental health professionals, Francisco was found hanging in his cell on October 22, 2014, after his cellmate reported he was suicidal. Francisco had denied being suicidal to correctional officers and mental health staff earlier that day.The United States District Court for the Eastern District of Missouri granted summary judgment in favor of the correctional officers and the warden, finding no deliberate indifference to Francisco's medical needs. The court determined that the officers' actions did not rise to the level of criminal recklessness required to establish a violation of the Eighth Amendment.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo and affirmed the district court's decision. The appellate court held that the correctional officers and the warden were entitled to qualified immunity. The court found that the officers had conducted reasonable investigations and searches based on the information available to them and that Francisco's repeated denials of suicidal intent, along with the absence of a noose, did not indicate a strong likelihood of self-harm. The court also concluded that the warden was not personally involved in any unconstitutional custom or practice and that the claim of an unconstitutional policy requiring inmates to explicitly state they were suicidal was not supported by the evidence. View "Francisco v. Villmer" on Justia Law

S.A.A. filed a lawsuit under 42 U.S.C. § 1983 against Officer Samantha Geisler, alleging Fourth Amendment violations during her arrest. The initial complaint, filed on September 20, 2021, claimed false arrest and excessive force but did not specify the capacity in which Geisler was sued. S.A.A. admitted she had not alleged official capacity claims. She amended her complaint twice before the deadline in May 2022 and sought to amend it a third time after the deadline, which the magistrate judge allowed with a warning. Geisler moved for summary judgment, arguing that S.A.A. failed to plead personal capacity claims as required by the Eighth Circuit’s clear statement rule. S.A.A. then moved to amend her complaint a fourth time, which the magistrate judge denied.The United States District Court for the District of Minnesota granted Geisler’s motion for summary judgment, overruled S.A.A.’s objection to the magistrate judge’s denial of her motion to amend, and denied her fourth motion to amend. The court found that S.A.A. failed to plead personal capacity claims against Geisler, adhering to the Eighth Circuit’s clear statement rule, which interprets complaints silent on the capacity in which the defendant is sued as including only official capacity claims.The United States Court of Appeals for the Eighth Circuit reviewed the case and affirmed the district court’s judgment. The appellate court held that S.A.A. did not explicitly plead individual capacity claims and that the district court did not abuse its discretion in denying her fourth motion to amend the complaint. The court emphasized that S.A.A. failed to demonstrate diligence in meeting the scheduling order’s requirements, which is the primary measure of good cause under Federal Rule of Civil Procedure 16. View "S.A.A. v. Geisler" on Justia Law

Following the fatal police shooting of Daunte Wright, protests erupted in Brooklyn Center, Minnesota. Sam Wolk, a protester, filed a lawsuit under 42 U.S.C. § 1983, alleging First and Fourth Amendment violations and civil conspiracy against various law enforcement officials and agencies. Wolk claimed he was injured by tear gas, flashbang grenades, pepper spray, and rubber bullets used by officers during the protests, resulting in chronic knee pain.The United States District Court for the District of Minnesota denied the defendants' motions to dismiss most of Wolk's claims but dismissed his Fourteenth Amendment due process claim. The defendants appealed the decision.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court reversed the district court's denial of the Minnesota Department of Natural Resources' (DNR) motion to dismiss, citing Eleventh Amendment immunity. The court also reversed the denial of qualified immunity for former Brooklyn Center Police Chief Tim Gannon, as he had resigned before Wolk's injuries occurred. Additionally, the court found that the Fourth Amendment claims for excessive force and failure to intervene were not clearly established as constitutional violations at the time of the incident, granting qualified immunity to the supervisory defendants on these claims.However, the court affirmed the district court's denial of qualified immunity for the First Amendment retaliation claims against the supervisory defendants, except for Gannon. The court found that more facts were needed to determine whether the officers' actions were driven by retaliatory animus. The court also reversed the district court's denial of the supervisory defendants' motion to dismiss the civil conspiracy claims, finding the allegations insufficient to show a meeting of the minds.The court reversed the district court's denial of the municipal defendants' motion to dismiss the Fourth Amendment and conspiracy claims but lacked jurisdiction over the First Amendment retaliation claim against the municipal defendants. The case was remanded for further proceedings consistent with the opinion. View "Wolk v. Hutchinson" on Justia Law

Nycoca Hairston, an employee at the United States Army’s Pine Bluff Arsenal, alleged that her immediate supervisor sexually harassed her and that she was unlawfully terminated in retaliation for her complaints. Hairston sued the Secretary of the Army under Title VII of the Civil Rights Act of 1964. After a jury trial on her retaliation claim, the Army prevailed. Hairston appealed the district court’s denial of her post-trial motions and its decision to limit the testimony of one of her witnesses.The United States District Court for the Eastern District of Arkansas initially granted summary judgment in favor of the Army on both Hairston’s hostile work environment and retaliation claims. Hairston appealed, and the Eighth Circuit affirmed the summary judgment on the hostile work environment claim but reversed it on the retaliation claim, remanding it for trial. After the jury ruled in favor of the Army, Hairston filed a Motion for New Trial and a Motion to Alter or Amend Judgment, which the district court denied. Hairston then filed an appeal.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court determined that it lacked jurisdiction over Hairston’s post-trial motions because she failed to file an amended notice of appeal after the district court ruled on those motions. However, the court did have jurisdiction to address Hairston’s challenge to the district court’s decision to limit the testimony of one of her witnesses. The Eighth Circuit found that the district court did not abuse its discretion in excluding the testimony, as it was deemed irrelevant and more prejudicial than probative. Consequently, the Eighth Circuit affirmed the judgment of the district court. View "Hairston v. Wormuth" on Justia Law

Teddy and Melanie Scott filed a lawsuit against Dyno Nobel, Inc., alleging that Teddy suffered serious injuries from exposure to a toxic gas cloud negligently emitted from Dyno’s nitric acid plant in Louisiana, Missouri. The incident occurred on March 20, 2015, when an equipment failure during a startup led to the release of nitrogen oxide gas, which enveloped Teddy while he was working at a nearby plant. Teddy experienced immediate physical symptoms and has since suffered from ongoing health issues, including irritable larynx syndrome, headaches, and back pain. Melanie claimed loss of consortium due to Teddy’s injuries.The United States District Court for the Eastern District of Missouri initially granted summary judgment in favor of Dyno, concluding that Dyno owed no duty of care to Teddy. However, the United States Court of Appeals for the Eighth Circuit reversed this decision, finding that the issue of foreseeability, which determines duty, should be decided by a jury. On remand, a jury trial resulted in a verdict for the Scotts, awarding Teddy $13,750,000 in compensatory damages and $30 million in punitive damages, and Melanie $3 million in compensatory damages. Dyno’s post-trial motions for judgment as a matter of law or a new trial were denied.The United States Court of Appeals for the Eighth Circuit reviewed the case and affirmed the district court’s judgment in part. The appellate court found that the jury had sufficient evidence to determine that Dyno’s actions created a foreseeable risk of harm and that Dyno breached its duty of care. However, the court reversed the award of punitive damages, concluding that the Scotts did not provide clear and convincing evidence that Dyno acted with a culpable mental state necessary for punitive damages under Missouri law. The case was remanded for entry of an amended judgment omitting the punitive damages award. View "Scott v. Dyno Nobel, Inc." on Justia Law

Dr. Igor DeCastro, a neurosurgeon, worked at the Hot Springs Neurosurgery Clinic for seven years. He claimed that after his initial 18-month salary period, he was supposed to receive compensation based on the net proceeds of his production, less 33% of the clinic's overhead. However, he alleged that he never received more than his base salary because Dr. James Arthur, the clinic's owner, diverted the funds into a "secret account." DeCastro also sued Bank OZK, where the account was held, leading the bank to request the court to determine the rightful owner of the funds.The United States District Court for the Western District of Arkansas dismissed DeCastro's amended complaint for failing to include essential facts, such as specific amounts received, production details, and overhead costs. The court also disbursed the funds to Arthur and denied DeCastro's motions for reconsideration, discovery, and leave to file a second amended complaint. DeCastro's subsequent attempts to revive the case, including a counterclaim in an unrelated contribution action, were dismissed based on res judicata.The United States Court of Appeals for the Eighth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that DeCastro's amended complaint lacked sufficient factual matter to state a plausible claim for relief. The court noted that the complaint was filled with legal conclusions rather than specific facts about the alleged breach. Additionally, the court found no abuse of discretion in the district court's denial of DeCastro's post-dismissal motions, as the employment agreement he later produced did not support his original claims. The court also upheld the dismissal of DeCastro's counterclaim based on res judicata, as it was identical to the previously adjudicated claims. View "DeCastro v. Arthur" on Justia Law

This case involves a qui tam action under the False Claims Act (FCA) and the Iowa False Claims Act (IFCA) brought by Stephen Grant, a sleep medicine practitioner, against Steven Zorn, Iowa Sleep Disorders Center, and Iowa CPAP. Grant alleged that the defendants had knowingly overbilled the government for initial and established patient visits and violated the Anti-Kickback Statute and the Stark Law by knowingly soliciting and directing referrals from Iowa Sleep to Iowa CPAP. The district court found the defendants liable for submitting 1,050 false claims to the United States and the State of Iowa and imposed a total award of $7,598,991.50.The district court had rejected the defendants' public disclosure defense and awarded summary judgment to the defendants on the Anti-Kickback Statute and Stark Law claim. After a bench trial, the district court found the defendants liable on several claims, including that Iowa Sleep had violated the anti-retaliation provisions of the FCA and IFCA by firing Grant. The district court also concluded that the defendants had overbilled on initial patient visits but not on established patient visits.On appeal, the United States Court of Appeals for the Eighth Circuit affirmed in part, vacated in part, and remanded for further proceedings. The court held that the public disclosure bar was inapplicable because Grant’s complaint did not allege “substantially the same allegations” contained in the AdvanceMed letters. The court also held that the district court did not abuse its discretion in admitting expert testimony on extrapolation and overbilling. However, the court found that the district court erred in its determination of damages and civil penalties, violating the Eighth Amendment’s Excessive Fines Clause. The court vacated the punitive sanction and remanded the case for further proceedings. View "Grant v. Zorn" on Justia Law

In April 2018, Benjamin Evans was shot and killed by Police Deputy Brian Krook in Lake Elmo, Minnesota, after Evans knelt in a crosswalk with a loaded gun pointed at his own head. Following a criminal trial, Krook was acquitted of a second-degree manslaughter charge. Subsequently, Evans' father, William O. Evans, Jr., filed a civil lawsuit against Krook under 42 U.S.C. § 1983, alleging excessive force in violation of the Fourth Amendment. Krook sought summary judgment based on qualified immunity, a defense unavailable when an officer uses deadly force against someone who does not pose an immediate threat of serious physical harm to another.The District Court for the District of Minnesota denied Krook's motion for summary judgment, citing genuine factual disputes over whether Evans' gun was ever pointed at the officers and whether Evans posed an immediate threat to them. Krook appealed this decision, challenging the denial of qualified immunity.The United States Court of Appeals for the Eighth Circuit, in reviewing the case, first addressed the question of jurisdiction. The court noted that it did not have jurisdiction to review the district court's determination regarding evidence sufficiency, i.e., what facts a party may or may not be able to prove at trial. The court's jurisdiction was limited to the purely legal question of whether the conduct that the district court found was adequately supported in the record violated a clearly established federal right.The court found that the availability of qualified immunity in this case hinged on whether Krook acted reasonably under the circumstances by shooting Evans because Evans either pointed his gun at another or otherwise wielded his gun in a menacing fashion. The court concluded that the inconclusive nighttime videos of Evans' actions did not clearly contradict the district court's factual determinations. Therefore, resolving the underlying factual dispute was beyond the court's limited review. As such, the court dismissed the appeal, stating it lacked the jurisdiction to resolve it. View "Evans v. Krook" on Justia Law

The case involves a group of plaintiffs who filed a civil rights action under 42 U.S.C. § 1983 against Independent School District 194 and its superintendent. The plaintiffs alleged that the defendants violated their First Amendment rights by discriminating against their political viewpoints. The controversy arose when the school district allowed the display of Black Lives Matter (BLM) posters in classrooms but rejected requests to display "All Lives Matter" and "Blue Lives Matter" posters and shirts. The district court dismissed the plaintiffs' First Amendment claims and denied the unnamed plaintiffs' motion to proceed under pseudonyms.The district court ruled that the unnamed plaintiffs had not sufficiently established a threat of a hostile public reaction to their lawsuit that would warrant anonymity. It also concluded that the BLM posters constituted government speech that is not subject to scrutiny under the First Amendment’s Free Speech Clause. The plaintiffs appealed both orders.The United States Court of Appeals for the Eighth Circuit affirmed in part, reversed in part, and remanded the case for further proceedings. The court affirmed the district court's denial of the motion to proceed under pseudonyms, finding that the unnamed plaintiffs did not provide sufficient evidence of a compelling fear of retaliation. However, the court reversed the district court's dismissal of the complaint, concluding that the plaintiffs had pleaded sufficient facts to allow a court to draw the plausible inference that the BLM posters are expressions of private persons, not government speech. The court also found that the district had engaged in viewpoint discrimination by allowing the display of BLM posters but rejecting "All Lives Matter" and "Blue Lives Matter" posters and shirts. View "Cajune v. Independent School District 194" on Justia Law