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

Plaintiff, Administratix of the Estates of Melanie Sorace and Jahneva Cannaday, filed suit against the United States, alleging a claim under the Federal Tort Claims Act (FTCA), 28 U.S.C. 2674. Plaintiff's claim was based upon a drunk-driving accident on the Rosebud Sioux Indian Reservation that killed Melanie and Jahneva. Plaintiff alleged that the Rosebud Sioux Tribe’s Police Department (“RST PD”) was negligent in failing to locate and arrest the drunk driver prior to the accident.The district court granted the United States' motion to dismiss. The court concluded that plaintiff failed to allege a special relationship as required for a negligence claim under South Dakota law. The district court properly dismissed plaintiff’s complaint for failure to state a claim for negligence. Plaintiff’s complaint also failed to state a claim under the public duty rule. Plaintiff's complaint failed to allege a specific South Dakota statute or regulation that imposes a mandatory duty on the police to protect a particular person or class of persons. The court found that the RST PD did not increase the risk of harm to Melanie and her children by failing to arrest the drunk driver. Therefore, the district court properly granted the motion to dismiss. Further, the district court did not err as a matter of law in not converting the motion to dismiss into a motion for summary judgment and the district court did not abuse its discretion in refusing to grant plaintiff leave to amend her complaint. Accordingly, the court affirmed the judgment. View "Sorace v. United States" on Justia Law

Askew, a military veteran and a former U.S. Postal Service employee, underwent a cardiac stent placement at the St. Louis Veterans Administration Medical Center. He was readmitted with an infection and the medical center responded negligently. As a result of the infection and attendant loss of blood, Askew suffered severe anoxic brain injury and amputation of his right leg. In Askew’s suit under the Federal Tort Claims Act, 28 U.S.C. 2674, the government did not dispute liability. The government requested that the court structure an award for future medical damages as a trust to provide periodic payments to Askew, with a reversionary interest in favor of the government upon Askew’s death. The district court declined to order a reversionary trust, awarded $253,667 in past economic damages, $525,000 in past non-economic damages, $4,000,000 in future economic damages, and $2,000,000 in future non-economic damages to Dirk Askew. The court awarded $1,525,000 to Askew’s wife for loss of consortium. The Eighth Circuit vacated and remanded, describing the reversionary trust remedy as the most reasonable analogy to the relief available against a private individual in like circumstances under Missouri law. View "Askew v. United States" on Justia Law

Daniel attended a birthday party for a St. Louis County police officer at Gannon's tavern, as an invited guest. Following a confrontation between Lammert and another in the parking lot, Lammert hit Daniel, then drove his vehicle out to the street, running over Daniel's body. Daniel died from complications due to the injuries. Lammert turned himself into the police and pleaded guilty to manslaughter and leaving-the-scene charges, claiming that he thought Daniel was out of the way. In state court premises liability and dram shop claims against Gannon's, its liquor liability insurer defended the dram shop claims, but the general commercial liability insurer, Atain, refused to defend and declined to participate in mediation. Gannon's settled, assigned its claims against Atain, and agreed to a $2 million consent judgment on the premises liability action. The estate sued Atain, alleging equitable garnishment and vexatious failure to defend and indemnify. Atain cited an exclusion precluding coverage for injuries caused by automobiles and an assault and battery exclusion. The Eighth Circuit affirmed summary judgment in favor of the estate on the equitable garnishment claim, finding that the exclusions did not apply, but granted Atain summary judgment the vexatious-refusal-to-defend claim, finding that the exclusions arguably could have applied and coverage was a close call. View "Minden v. Atain Specialty Ins. Co." on Justia Law

While fishing with his son-in-law and grandson near Gavins Point Dam on the Missouri River in Cedar County, Nebraska, Metter was struck and killed when a parked pickup truck came out of gear and rolled down an unprotected river bank. Metter’s widow, personal representative of his estate, brought survival and wrongful death actions under the Federal Tort Claims Act (FTCA), 28 U.S.C. 1346, against the U.S. Army Corps of Engineers, asserting the Corps negligently maintained the site. The grandson brought a separate suit against the Corps raising the same theories of liability for the mental and physical harms to Justin caused by witnessing his grandfather’s death. The district court dismissed for lack of subject matter jurisdiction, finding the claims barred by the FTCA’s discretionary function exception, and that the United States did not waive sovereign immunity. The Eighth Circuit affirmed. The Corps removed the guardrails and posts itself to save money and to expedite a project, reasons that reflect the discretionary exercise of choice and judgment “susceptible to policy analysis.” View "Metter v. United States" on Justia Law

In a 2008 collision on I-40 in West Memphis, McHone, driving a car, was struck by a tractor trailer driven by Whirley. McHone’s State Farm policy included coverage for uninsured motor vehicles with bodily injury limits of $100,000 per person. The trucking company defendants were insured by Gramercy. McHone’s medical bills exceeded $400,000; her physicians estimate future medical care will exceed an additional $400,000. Before trial, Gramercy was placed into Rehabilitation with an automatic stay. In 2013, McHone’s counsel notified State Farm of the problems with Gramercy and demanded $100,000 uninsured motorist benefits. State Farm asserted that no coverage existed. McHone settled her claims against Whirley and the truck’s owner for $300,000 to avoid the claim process with the State Guarantee Fund. Gramercy was liquidated. State Farm again refused to pay uninsured motorist benefits. The district court ruled in favor of State Farm as being entitled to a credit for the settlement proceeds regardless of the date of insolvency. The Eighth Circuit affirmed. State Farm is entitled to a credit for the money McHone received from her settlement. McHone’s argument that the credit is not applicable because the payment was made by the receivership rather than by Gramercy itself is not supported by the policy language nor Tennessee law. View "McHone v. State Farm Mut. Ins. Co." on Justia Law

Plaintiffs brought a putative class action against Union Pacific Railway, and Stickle, alleging that failure to properly build and maintain railway bridges over the Cedar River caused or exacerbated the 2008 flood and that the decision to attempt to stabilize the bridges by weighing them down with railcars filled with ballast caused or exacerbated the flooding of their properties, either because bridges collapsed and effectively dammed the river and blocked drainage, or because railcars on bridges that did not collapse blocked the free flow of the river and diverted water into low-lying areas. Union Pacific filed Notice of Removal that asserted federal question jurisdiction and stated that attorneys for the co-defendants had no objection to removal, accompanied by a local rule certification that: “co-defendants have given their consent to the removal.” Stickle did not file notice of consent to removal until more than 30 days after Union Pacific was served. By that time, Plaintiffs had moved to remand, arguing that their claims were not completely preempted and that not all defendants had timely consented. The district court denied remand. The Eighth Circuit vacated, finding the consent adequate, but that the state claims were not completely preempted by the Interstate Commerce Commission Termination Act, 49 U.S.C. 701. View "Griffioen v. Cedar Rapids & Iowa City Ry. Co." on Justia Law

A fire occurred at the Ralph Engelstad Arena on July 3, 2011. Arena Holdings alleges the fire started when a Crown Macro-Tech 5002VZ amplifier produced a direct current to a speaker that spread to adjoining speakers located in the catwalk area. Harman is the manufacturer of the alleged defective amplifier. Impulse Group installed the sound reinforcement system at the Arena when it was originally built, and installed the amplifier. The fire caused approximately $5,000,000 of damage throughout the Arena; it directly damaged the arena structure and equipment in the vicinity of the amplifier and speakers. The presence of smoke and soot throughout the Arena after the fire caused additional damage. Arena Holdings sued Harman, alleging negligence, strict liability and post-sale failure-to warn claims. Harman filed a third-party complaint against Impulse Group and others. The district court granted Harman summary judgment, finding that the economic loss doctrine precluded Arena Holdings from recovering tort damages. The Eighth Circuit affirmed, acknowledging that barring tort claims where a plaintiff seeks economic damages for foreseeable losses for which the plaintiff could have contractually allocated risk is admittedly no longer a "modern trend," but stating that it is neither is an antiquated or disfavored approach. View "Arena Holdings Charitable, LLC v. Harman Prof'l, Inc." on Justia Law

Rosemann hired attorney Sigillito after Sigillito falsely informed Rosemann that he was an expert in international investments. In 2007, Rosemann received a $15.6 million buyout from the sale of his family’s company. Sigillito instructed Rosemann to loan $5 million of the buyout to Metis, a Turkish contractor. When Rosemann resisted, Sigillito told him “the loan was guaranteed by [North Atlantic Treaty Organization] contracts and that Sigillito would structure the deal to protect Rosemann and defer taxes.” Rosemann transferred $15.6 million to Sigillito, who wrote a $5 million check to Metis. For that service, Sigillito charged Rosemann $100,000. Sigillito took some money for his own use and loaned $10.8 million to another party in England. Approximately $2.75 million was repaid. In 2009, Metis defaulted and filed for bankruptcy protection in Turkey. Sigillito filed suit against Metis but the suit eventually was dismissed. The loan remains in default. In 2012, Sigillito was convicted of nine counts of wire fraud, four counts of mail fraud, six counts of money laundering, and conspiracy to commit mail and wire fraud. He was sentenced to 480 months’ imprisonment. Rosemann sued for legal malpractice. The Eighth Circuit affirmed dismissal because Rosemann failed to name an expert who would testify about the appropriate standard of care. View "Rosemann v. Sigillito" on Justia Law

Former and current employees filed a class action lawsuit in state court against Gilster and other defendants, alleging lung impairment (or potential lung impairment) from exposure to butter-flavoring products, including diacetyl, used in Gilster’s microwave popcorn packaging plant in Jasper, Missouri. Defendants removed the action to federal court. Six weeks later, the employees dismissed all defendants except Gilster. The district court ordered a remand to state court based on the Class Action Fairness Act’s local-controversy exception, 28 U.S.C. 1332(d)(4), under which, a court is required to decline jurisdiction when “greater than two-thirds of the members of all proposed plaintiff classes in the aggregate are citizens of the State in which the action was originally filed,” determined as of the date of the filing. The district court permitted discovery on state citizenship. For all of the potential class members, except the current employees, plaintiffs provided only last-known addresses, some 27 years old, and did not identify state citizenship. The court ultimately found that 41 percent of potential class members were Missouri citizens. The Eighth Circuit reversed. Because the employees did not meet their burden of proof that a CAFA exception applies, the court erred by resolving doubt in favor of the party seeking remand. View "Hood v. Gilster-Mary Lee Corp." on Justia Law

Miller suffered: a brain injury in a 1998 car accident and had back surgery in 2004. Although his doctor described his brain injury as stable, but Miller complained of memory and balance problems and pan. Miller claims these injuries caused him to become disabled starting in 2007. In 2008, Miller requested disability insurance benefits as well as supplemental security income. He received a hearing before an administrative law judge, who denied his claim, finding that Miller had the residual functional capacity to perform light work, as defined by 20 C.F.R. 404.1567(b) and 416.967(b). The Appeals Council denied Miller’s request for review. The district court and Eighth Circuit affirmed, upholding the ALJ’s decision to give “little weight” to some of Miller’s medical evidence. View "Miller v. Colvin" on Justia Law