Justia U.S. 11th Circuit Court of Appeals Opinion SummariesArticles Posted in Government & Administrative Law
United States v. US Stem Cell Clinic, LLC
The FDA filed suit against the Clinic, alleging that the Clinic's stem cell procedure violates the Federal Food, Drug, and Cosmetics Act. The Clinic offers a procedure, which purportedly treats all kinds of chronic conditions, in which they remove fat tissue from a patient, isolate the portion containing stem cells, and inject that portion back into the patient. The district court granted summary judgment for the FDA and enjoined the Clinic from offering its procedure until it can demonstrate to the FDA that its stem cell therapy is safe and effective.The Eleventh Circuit affirmed, concluding that the Clinic's stem cell procedure does not fall within the "same surgical procedure" exception or the "361 HCT/P" exception to regulation under the FDCA. The procedure does not fall within the same surgical procedure exception because the biological material implanted into the patient is not the same as that removed. Furthermore, the procedure does not fall within the 361 HCT/P exception because the Clinic intends the stem cells to perform functions after the procedure beyond the basic functions the stem cells performed prior to the procedure. View "United States v. US Stem Cell Clinic, LLC" on Justia Law
Fisher v. United States
The Eleventh Circuit held that a Florida statute, Fla. Stat. 375.251(2)(a), which speaks in broad and unqualified terms, means exactly what it says—that an owner incurs no ordinary duty of care to, and no duty to warn, any entrant, regardless of his common-law status or reason for entry.In this case, plaintiff and his wife filed suit against the United States under the Federal Tort Claims Act (FTCA) after plaintiff slipped and fell at a public shower at Tables Beach. The federal government operates Patrick Air Force Base on a large parcel of land in Brevard County, and that land encompasses Tables Beach, which fronts the Atlantic Ocean and which the government has opened to the public. The United States claimed that it was immune from suit because the FTCA, which waives sovereign immunity in specified instances, authorizes only those tort actions that can be brought against private persons under state law. The district court granted the motion to dismiss, holding that Florida's recreational-use statute eliminated the government's ordinary duty of care and duty to warn as to plaintiff and his wife.The court affirmed the district court's dismissal, holding that because the recreational-use statute protects a qualifying landowner against a suit alleging a breach of its ordinary duty of care and duty to warn as to all entrants, regardless of their reason for entry, the government has not waived its sovereign immunity under the FTCA. Therefore, the court cannot exercise jurisdiction over this action against the United States. View "Fisher v. United States" on Justia Law
Bibby v. Mortgage Investors Corp.
The Eleventh Circuit vacated its previous opinion and replaced it with the following opinion.Relators filed a qui tam action against MIC under the False Claims Act (FCA), seeking to recover the money the VA had paid when borrowers defaulted on MIC-originated loans. Relators then amended the complaint, adding a state law fraudulent transfer claim against MIC executive William L. Edwards, as well as a corporate veil-piercing theory of liability, which made Edwards a defendant to the FCA claim. The district court granted Edwards's motion to dismiss the fraudulent transfer claim based on lack of standing and granted MIC's motion for summary judgment on the FCA claim.The court concluded that summary judgment was improper on relators' FCA claim because genuine issues of material fact remain as to whether MIC's alleged false certifications were material. The court agreed with the district court that relators' claim is not barred by previous public disclosure. The court held that the district court has personal jurisdiction over Edwards. Finally, the court held that relators lack standing on the fraudulent transfer claim because their pre-judgment interest in preventing a fraudulent transfer is a mere byproduct of their FCA claim and cannot give rise to an Article III injury in fact. View "Bibby v. Mortgage Investors Corp." on Justia Law
Pincus v. American Traffic Solutions, Inc.
Plaintiff filed suit against ATS, a red light camera vendor, alleging three counts of unjust enrichment after ATS charged plaintiff a fee for processing his payment of a traffic ticket issued through an ATS red light photo enforcement system used in the City of North Miami Beach.The Eleventh Circuit certified the following questions to the Supreme Court of Florida: (1) Did ATS violate Florida law when it imposed a five percent fee on individuals who chose to pay their red light traffic ticket with a credit card? In particular: a. Does the challenged fee constitute a "commission from any revenue collected from violations detected through the use of a traffic infraction detector" under Fla. Stat. 316.0083(1)(b)(4)? b. Was the fee assessed under Chapter 318 and therefore subject to section 318.121's surcharge prohibition? c. Was ATS a "money transmitter" that was required to be licensed under Fla. Stat. 560.204(1)? (2) If there was a violation of a Florida statute, can that violation support a claim for unjust enrichment? In particular: a. Does plaintiff's unjust enrichment claim fail because the statutes at issue provide no private right of action? b. Does plaintiff's unjust enrichment claim fail because he received adequate consideration in exchange for the challenged fee when he took advantage of the privilege of using his credit card to pay the penalty? View "Pincus v. American Traffic Solutions, Inc." on Justia Law
National Mining Ass’n v. U.S. Department of Labor
The Eleventh Circuit denied a petition for review of the MSHA's final rule entitled "Examinations of Working Places in Metal and Nonmetal Mines," which enhances mine operators' obligations with an aim toward augmenting miner safety. The court held that the Mine Act does not contain the "significant risk" threshold requirement that petitioners would import from the Occupational Safety and Health Act of 1970; the Final Rule satisfies the requirement that any rule "improve" upon the prior standard; the pre-shift examination requirement, the notification requirement, and the recording requirements in the Final Rule are not arbitrary and capricious; and MSHA sees the examination requirement, the notification requirement, and the recordkeeping requirement as operating collectively to spur more timely corrections of hazardous conditions. The court rejected petitioner's remaining contentions as lacking merit. View "National Mining Ass'n v. U.S. Department of Labor" on Justia Law
Hickman v. Spirit of Athens, Alabama, Inc.
The Eleventh Circuit affirmed the district court's dismissal of plaintiffs' False Claims Act (FCA) retaliation claim. Plaintiffs, employees of a nonprofit, suspected that their employer was committing fraud and alleged that they were terminated based on their attempt to uncover the fraud. However, in this case, the employees never had reason to believe that their employer made any false claims to the federal government. Therefore, without any reason to believe that their employer had filed a false claim against the government, they did not have any reason to believe that they were investigating a FCA violation, rather than a garden-variety fraud. The court explained that the employees may well have acted in good faith to attempt to uncover what they feared were shady practices, but the FCA is not a general anti-fraud statute. View "Hickman v. Spirit of Athens, Alabama, Inc." on Justia Law
Bibby v. Mortgage Investors Corp.
Relators filed a qui tam action against MIC under the False Claims Act (FCA), seeking to recover the money the VA had paid when borrowers defaulted on MIC-originated loans. Relators then amended the complaint, adding a state law fraudulent transfer claim against MIC executive William L. Edwards. The district court granted Edwards's motion to dismiss based on lack of standing and granted MIC's motion for summary judgment on the FCA claim.The Eleventh Circuit held that summary judgment was improper on relators' FCA claim because genuine issues of material fact remain as to whether MIC's alleged false certifications were material. Furthermore, relators' claim is not barred by previous public disclosure. The court also held that relators lack standing on the fraudulent transfer claim because their pre-judgment interest in preventing a fraudulent transfer is a mere byproduct of their FCA claim and cannot give rise to an Article III injury in fact. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Bibby v. Mortgage Investors Corp." on Justia Law
USF Federal Credit Union v. Gateway Radiology Consultants, P.A.
Gateway is a small business debtor in an active Chapter 11 bankruptcy proceeding seeking a loan under the Paycheck Protection Program (PPP). Gateway applied for a PPP loan and falsely stated that it was not in bankruptcy in order to be eligible for the program. When Gateway filed a motion for approval in the bankruptcy court, the SBA objected that Gateway was ineligible for a PPP loan because it was in bankruptcy. The bankruptcy court granted Gateway's motion anyway, concluding that the SBA's rule rendering bankruptcy debtors ineligible for PPP loans was an unreasonable interpretation of the statute, was arbitrary and capricious under the Administrative Procedure Act, and as a result was unlawful and unenforceable against Gateway.The Eleventh Circuit vacated the bankruptcy court's approval order, concluding that the SBA's rule is neither an unreasonable interpretation of the relevant statute nor arbitrary and capricious. The court concluded that the SBA did not exceed its authority in adopting the non-bankruptcy rule for PPP eligibility; the rule does not violate the CARES Act, is based on a reasonable interpretation of the Act, and the SBA did not act arbitrarily and capriciously in adopting the rule; and the bankruptcy court committed an error of law in concluding otherwise in its approval order and its preliminary injunction order. Accordingly, the court remanded for further proceedings. The court dismissed the appeal from the memorandum opinion for lack of jurisdiction. View "USF Federal Credit Union v. Gateway Radiology Consultants, P.A." on Justia Law
National Association of the Deaf v. Florida
The Eleventh Circuit vacated its previous opinion and issued the following opinion.Plaintiff and the Association filed suit under Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act against several Florida entities and officials, challenging defendants' failure to provide captioning for live and archived videos of Florida legislative proceedings.The court affirmed the district court's denial of defendant's motion to dismiss, holding that it has jurisdiction to hear defendants' interlocutory appeal. The court affirmed the district court's alternative holding that Congress validly abrogated defendants' Eleventh Amendment immunity for these claims under Title II regardless of whether a fundamental right is implicated. Because the court affirmed on this basis, it did not reach the question of whether the ability to participate in the democratic process is a fundamental right. The court stated that Congress validly abrogated sovereign immunity for this claim under the standard for important rights that nonetheless receive only rational basis review.The court also affirmed the district court's holding that plaintiffs were entitled to pursue injunctive relief under the doctrine of Ex parte Young for allegedly ongoing violations of Title II. Finally, given the substantial overlap between plaintiffs' ADA and Rehabilitation Act claims, the court held that the district court did not encroach on the Legislative Defendants' immunity. View "National Association of the Deaf v. Florida" on Justia Law
Peery v. City of Miami
The City of Miami moved to terminate a consent decree that regulated how the City of Miami treats its homeless residents twenty years after its adoption based on changed circumstances, fulfillment of its purpose, and substantial compliance with its requirements. The district court ruled that the City had not violated the consent decree, granted its motion for termination, and denied the opposing motion for contempt. The district court terminated the decree because the City had substantially complied with the core purpose of the settlement agreement, that is, to stop the criminalization of homelessness. Furthermore, the district court found no evidence that would negate a finding of substantial compliance. The district court also found changed circumstances in Miami, but did not rely on those findings as a basis for termination.The Eleventh Circuit affirmed the termination of the consent decree and the denial of the contempt motion, holding that the district court correctly interpreted the decree and did not abuse its discretion by terminating the decree. Applying Florida contract law, the court held that, although the homeless identify one misinterpretation of the consent decree, they failed to identify any errors that establish noncompliance by the City. The court also held that the district court correctly applied the burden of proof on the City's motion for termination by bifurcating its analyses; did not abuse its discretion by granting the motion for termination; and did not abuse its discretion by denying the motion for contempt. View "Peery v. City of Miami" on Justia Law