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

Debtor, licensed under North Dakota’s pari-mutuel wagering system, filed for bankruptcy in 2004. Ten years later, the district court ruled that the state was not authorized to collect certain taxes from the Debtor. North Dakota agreed to pay the estate $15 million. Creditors asserted claims. Although the state constitution provides that “the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, fraternal, religious, or other public-spirited uses,” North Dakota did not raise the rights of any charities.In 2018, the bankruptcy court ruled on the claims. North Dakota filed a new proof of claim. The court concluded that the state lacked parens patriae authority to assert claims on behalf of charities. The Eighth Circuit Bankruptcy Appellate Panel (BAP) remanded. On remand, the state attempted to add a breach of contract claim. The bankruptcy court denied that motion and concluded that the contract claim had no merit. The court also rejected a constitutional-statutory claim.The BAP affirmed, rejecting arguments that North Dakota law requires that charities, not Debtor, recover the remaining tax settlement funds and that the court erred when it disallowed the contract claim. The state constitution concerns the legislature and does not govern the actions of private parties such as Debtor. Debtor paid the taxes originally; the reimbursement of those improperly-paid taxes should inure to the benefit of Debtor after distribution under the bankruptcy priority scheme. View "North Dakota v. Bala" on Justia Law

Plaintiffs, relatives of individuals who worked at the Tyson Foods pork processing facility that contracted COVID-19 and later died, filed suit alleging claims for fraudulent misrepresentation and gross negligence. Plaintiffs contend that Tyson's actions in March and April of 2020 caused their relatives' deaths. Tyson removed the cases to federal court and then the district court remanded to state court.The Eighth Circuit affirmed and concluded that Tyson has failed to show that it was performing a basic governmental task or operating pursuant to a federal directive in March and April of 2020. Therefore, Tyson was not acting under a federal officer at the time that plaintiffs' relatives contracted COVID-19 and is not eligible for removal under the federal officer removal statute. The court also concluded that Tyson has abandoned the federal question argument concerning removal by failing to brief it, either in its initial brief or by supplemental brief, after the Supreme Court decided BP P.L.C. v. Mayor and City Council of Baltimore, 141 S.Ct. 1532 (2021), permitting alternative arguments against remand to be raised. View "Buljic v. Tyson Foods, Inc." on Justia Law

The Eighth Circuit affirmed the district court's dismissal of Regional's declaratory judgment claims alleging that defendants' procedures in suspending Regional's Medicare payments and forcing it out of business without notice, a hearing, or an opportunity to appeal violated its Fifth Amendment rights to procedural and substantive due process. The court concluded that no actual controversy exists between Regional and defendants within the meaning of the Declaratory Judgment Act. The court explained that, having abandoned any claim for damages, Regional seeks nothing more than a judicial pronouncement that its constitutional rights were violated. Therefore, the possibility of Regional re-establishing a business that is certified to receive Medicare reimbursements, again submitting documentation insufficient to meet Medicare requirements for billed services, and again having Medicare payments suspended is too conjectural or hypothetical to pose a real and immediate threat of injury sufficient to confer subject matter jurisdiction in federal court. View "Regional Home Health Care, Inc. v. Becerra" on Justia Law

The Hospitals filed suit to enjoin the OPTN's new policy, which significantly changes the method for allocating donated kidneys to kidney transplant patients, as unlawful under the Transplant Act and the Administrative Procedure Act (APA).The Eighth Circuit affirmed the district court's denial of the Hospitals' motion for a temporary restraining order and preliminary injunction. Examining the district court's balancing of the Dataphase factors, the court concluded that the district court did not err in concluding that the Hospitals failed to show that their procedural APA claim is likely to succeed on the merits. The court also agreed with the district court that the Hospitals failed to demonstrate that they are likely to succeed on the merits of their claim that adoption of the Fixed Circle Policy was arbitrary and capricious agency action. Furthermore, the district court did not abuse its discretion in concluding that the Hospitals' one-year delay refuted their allegations of irreparable harm, and the balance of the equities and public interest weigh in favor of denying the requested preliminary injunction. View "Adventist Health System v. U.S. Department of Health and Human Services" on Justia Law

In 2009, the original Federal Housing Finance Agency (FHFA) director resigned. President Obama replaced him with Acting Director DeMarco, under 12 U.S.C. 4512(f). The President's nomination of a new director stalled. During DeMarco’s 52 months as Acting Director, the FHFA and Treasury Department entered into a third amendment to the agreement governing Fannie Mae and Freddie Mac shareholders. DeMarco signed the amendment for the FHFA, as conservator for Freddie Mac and Fannie Mae. The district court dismissed a suit by shareholders, alleging that the amendment would collapse the value of their holdings.The Eighth Circuit affirmed in part, citing the Supreme Court’s 2021 "Collins" decision. The shareholders have standing to seek retrospective, but not prospective, relief. The de facto officer doctrine bars any Appointment Clause relief. Although the doctrine might not apply to an initially defective appointment, there was no such defect. Even if the Acting Director overstayed some implied limit, any defect was resolved when subsequent FHFA directors ratified the third amendment.The court rejected an argument that Congress unlawfully delegated authority to the FHFA under the Housing and Economic Recovery Act, 12 U.S.C. 4617 The delegation directs the FHFA to act as a “conservator,” with clear and recognizable instructions.The FHFA leadership structure impermissibly limits the President’s removal authority, violating the separation of powers but the Acting Director was removable at will, defeating any argument for setting aside the third amendment entirely. All the officers who headed the FHFA were properly appointed. The court remanded to determine whether the unconstitutional removal restriction caused compensable harm to shareholders. View "Bhatti v. Federal Housing Finance Agency" on Justia Law

The Eighth Circuit affirmed the district court's grant of summary judgment in favor of HHS and CMS in an action brought by Northport, alleging that a regulation promulgated by CMS through notice and comment rulemaking is unlawful and should be set aside for violating the Administrative Procedure Act (APA), the Federal Arbitration Act (FAA), and the Regulatory Flexibility Act (RFA). The revised HHS regulations (Revised Rule) prohibits long-term care facilities from conditioning the admission of Medicare and Medicaid residents on their agreement to pre-dispute, binding arbitration and gives the residents the right to rescind the binding arbitration agreements, as well as certain other rights.The court concluded that the Revised Rule does not, in words or effect, render arbitration agreements entered into in violation thereof invalid or unenforceable, and thus it does not conflict with the FAA. Furthermore, the Revised Rule represents a reasonable accommodation of manifestly competing interests and is entitled to deference, and thus the district court properly concluded that it is not ultra vires. The court also concluded that the Revised Rule reflects CMS's reasoned judgment in light of competing considerations, and is not arbitrary or capricious. Finally, although CMS failed to provide a factual basis in support of its section 605(b) certification in the Revised Rule, the court concluded that failing to do so was harmless error. View "Northport Health Services of Arkansas, LLC v. U.S. Department of Health and Human Services" on Justia Law

Plaintiff filed a qui tam action under the False Claims Act (FCA), alleging that Planned Parenthood violated Iowa law by dispensing extra cycles of oral contraceptives without a physician’s order and that Planned Parenthood illegally billed Iowa Medicaid Enterprise (IME) for post-abortion related procedures.The Eighth Circuit affirmed the district court's grant of summary judgment to Planned Parenthood, concluding that plaintiff failed to sufficiently plead with particularity, pursuant to the heightened pleading standards of the FCA, her claim regarding the dispensing of oral contraceptives. Furthermore, even if plaintiff is right that Planned Parenthood submitted a false claim or statement as to Patients C, D, E and F, she fails to show that there is a genuine issue of material fact over whether those claims and statements were knowingly false. View "Thayer v. Planned Parenthood of the Heartland, Inc." on Justia Law

The Eighth Circuit affirmed the district court's judgment declaring that the United States has a duty to provide "competent physician-led healthcare" to the Rosebud Sioux Tribe and its members. In light of the promises the United States made to the Tribe more than 150 years ago in the Fort Laramie Treaty, and relevant legislation since that time, such as the Snyder Act and the Indian Health Care Improvement Act, the district court correctly articulated the existence and scope of the duty and declaratory judgment was proper. View "Rosebud Sioux Tribe v. United States" on Justia Law

Ameren appeals an adverse judgment of the district court in a Clean Air Act (CAA) enforcement action brought by the United States, acting at the request of the EPA Administrator, arguing that the district court erroneously found it liable for not obtaining permits for projects at its Rush Island Energy Center and assessing liability under the applicable federal regulations. Ameren also contends that the district court ordered legally flawed injunctions at both Rush Island and at a different plant, Labadie Energy Center.The Eighth Circuit affirmed the district court's liability determination, holding that the district court did not err in holding that the Rush Island projects required permits through application of the actual-to-projected-actual applicability test under 40 C.F.R. 52.21(a)(2)(iv)(c), incorporated by reference in section 6.060(8)(A) of the Missouri state implementation plan (SIP). The court also held that the district court did not impermissibly shift the burden of proof to Ameren in proving the applicability of the demand-growth exclusion; the district court did not err in holding that to prove the applicability of the demand-growth exclusion, Ameren had to establish that demand on the unit increases; and the district court did not err in holding that no special standard of care evidence is required for the factfinder to be able to determine whether a reasonable power plant operator or owner would have expected the projects to cause a significant emissions increase. Furthermore, even assuming that the district court abused its discretion by admitting the expert testimony, any error would be harmless. However, the court reversed in part the remedial portion of the district court's order concerning the Labadie plant. Finally, the district court had jurisdiction to consider whether Ameren violated the express terms of its Title V permit. The court remanded for further proceedings. View "United States v. Ameren Missouri" on Justia Law

During a search of plaintiff's home, police seized a large number of coins and gave them to the IRS where an IRS agent deposited the coins at their face value into an IRS account and later remitted the amount to plaintiff. Plaintiff filed suit under the Federal Tort Claims Act (FTCA) for conversion, contending that the coins were collectors' items. The district court agreed with plaintiff and awarded her $94,880.The Eighth Circuit reversed and concluded that the district court erred when it concluded that the FTCA had waived the government's sovereign immunity to suit in the current circumstances. The court concluded that the agent's decision to deposit the coins for processing rather than preserve them was a discretionary decision and the agent was not required to first investigate whether the coins had collectors' value. Furthermore, the agent's choice to treat the coins as ordinary currency was based on relevant policy considerations. Therefore, the discretionary function exception applies and the government has not waived its sovereign immunity. View "Willis v. United States" on Justia Law