Justia U.S. 11th Circuit Court of Appeals Opinion Summaries

The district court found that Southern Coal had breached a contract with Drummond to transfer and store coal and awarded Drummond $6,860,000. Drummond appealed, arguing that the district court erred in finding a price escalation clause in the contract unenforceable. Southern Coal argued that Drummond’s actions excused Southern Coal’s obligation to pay Drummond under the contract. Both parties challenged the district’s court determination not to award attorneys’ fees to either party.The Eleventh Circuit affirmed the judgment of $6,860,000. The district court correctly found that Southern Coal was not excused from performing under the contract and that the price escalation clause was unenforceable. Southern’s anticipatory repudiation argument lacked merit. The “root” of the Agreement was that Drummond would provide throughput services to Southern Coal. At no point did Drummond indicate that it would not perform that obligation. The district court correctly found the Agreement ambiguous and declined to reform the contract with respect to the price benchmarking clause. The court remanded for the award of reasonable attorneys’ fees to the prevailing party, Drummond. View "Southern Coal Corp. v. Drummond Coal Sales, Inc." on Justia Law

A teacher smelled marijuana burning in the classroom and alerted Principal Stamps and Assistant Principal Byars, who searched the belongings of every student in the class. They found marijuana stems and seeds, rolling paper, lighters, and assorted pills in T.R.’s backpack. T.R. denied smoking marijuana in the classroom that day. T.R. contends that during a first search, in a room with only Stamps and Counselor Dean, she removed her clothing, lifted her breasts, and bent over for an inspection while a window in the office, leading to a public hallway, remained uncovered. School officials did not find any drugs on T.R.’s person. T.R. alleges that school officials later again directed her to remove her clothing and she submitted. T.R. stated that she was on her menstrual cycle, which made her feel “humiliated.” T.R.’s teacher found the remains of the marijuana cigarette under T.R.’s desk the next day.In a suit under 42 U.S.C. 1983, the district court found that the school officials were entitled to qualified immunity and the Defendants’ conduct was not extreme and outrageous. The Eleventh Circuit reversed. To grant qualified immunity on these facts "would severely diminish the protections afforded students from strip searches" set out in Supreme Court precedent. Considering the degree of intrusiveness of the search and that school officials searched her twice, T.R.’s claim for outrage creates a sufficient question for the jury. View "T.R. v. Lamar County Board of Education" on Justia Law

Couch falsely represented that he was not HIV positive. Jackson issued Couch a $500,000 life insurance policy. At the time, HIV-positive individuals had a greatly diminished life expectancy, resulting in high demand for HIV-positive insureds willing to engage in viatical settlements. Couch worked with a brokerage, which, months later, found a purchaser, Crum. The premiums were paid through the broker's premium reserve fund until after the two-year contestability period policy expired. Crum paid the premium for eight more years, letting the policy lapse in 2009. In 2016, Crum learned that Couch had died in 2005 and made a claim.Jackson sought a declaration that, under Georgia law, the policy was void as an illegal human life wagering contract. The district court found that Couch took out the policy with the intent to sell it to one without an insurable interest and that the policy was unenforceable as an illegal human life wagering contract under Georgia law. Crum argued that an illegal human life wagering contract involves the knowing, direct involvement of an identified third-party beneficiary at the time of its procurement. The Eleventh Circuit certified, to the Georgia Supreme Court, the question: whether a life insurance policy is void if it is procured by an individual on his own life for the sole purpose of selling the policy to a third party without an insurable interest in the insured, but without the complicity of the ultimate purchaser at the time of procurement. View "Jackson National Life Insurance Co. v. Crum" on Justia Law

Plaintiffs purchased tickets for Defendant’s commercial flights from Miami to Venezuela. Plaintiffs allege that their ticket prices reflected the “fully-paid contract” and that Defendant failed to sufficiently disclose any other fees required for passage. When checking in for their flights at the airport, however, Defendant informed Plaintiffs that they had to pay an additional $80 “Exit Fee” before being allowed to board their flights. Plaintiffs filed a breach of contract putative class action.The district court dismissed the suit, concluding that the Airline Deregulation Act preempted Plaintiffs’ breach of contract claim because it related to the price of the airline ticket and the Act’s preemption provision identifies actions relating to price as preempted. The Eleventh Circuit reversed, first holding that the Plaintiffs plausibly alleged facts that would establish diversity jurisdiction. Plaintiffs’ breach of contract claim seeks merely to enforce the parties’ private agreements regarding the cost of passage and does not invoke state laws or regulations to alter the agreed-upon price. The statute, 49 U.S.C. 41713(b)(1), provides: “[A] State . . . may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier..” The suit falls within the category of cases protected from preemption by Supreme Court precedent. View "Cavalieri v. Avior Airlines C.A." on Justia Law

Hardwick helped found a law firm, MHS. MHS later sold part of its foreclosure operation. Hardwick received $14-$15 million in compensation. Hardwick lost the money and owed millions in loans, many for gambling debts. When a bank and a casino sued him, Hardwick lied to a different bank in a line-of-credit application. In addition, in 2011-2014, Hardwick siphoned off about $26.5 million from MHS; $19 million came from trust accounts. Hardwick relied heavily on Maurya, who initially worked as an MHS controller. Hardwick promoted Maurya to CFO, giving her broad authority over the trust accounts. At Hardwick’s request, she repeatedly sent money from MHS to Hardwick or his creditors and significantly underreported the distributions. After a 2014 internal audit, Hardwick was convicted of wire fraud, conspiracy to commit wire fraud, and making false statements to a federally insured financial institution and was sentenced to 180 months’ imprisonment—an upward variance from the Guidelines range of 108-135 months. Maurya received a sentence of 84 months. A restitution order required Maurya and Hardwick to pay, jointly and severally, $40,307,431.00.The Eleventh Circuit vacated the restitution order as not supported by the reasoning required by law; affirmed Hardwick’s convictions and sentence; and vacated Maurya’s sentence. The district court violated the Ex Post Facto Clause by applying the 2018 Guidelines, which included a two-level substantial financial hardship enhancement added in 2015, after Maurya’s offense. View "United States v. Maurya" on Justia Law

Chamu, born in Mexico, entered the U.S. without inspection in 1990. In 2003, he was pleaded guilty to cocaine possession under Florida law; 14 years later, in removal proceedings, 8 U.S.C. 1182(a)(6)(A)(I), Chamu applied for cancellation of removal, alleging that his mother and children would suffer exceptional hardship.Cancellation is unavailable for those who have been convicted of a state offense “relating to a controlled substance (as defined in section 802 of title 21)” of the U.S. Code, 8 U.S.C. 1229b(b)(1)(C), 1182(a)(2)(A)(i)(II), 1227(a)(2)(B)(i). Section 802 defines “controlled substance” as any substance included in federal controlled substance schedules. Chamu unsuccessfully sought to have his Florida cocaine possession conviction vacated, then argued that the Florida statute was too broad to bar his cancellation request. The IJ and BIA rejected his argument, reasoning that Chamu had not shown a realistic probability that the Florida statute would be enforced more broadly than the federal statutes. The Eleventh Circuit agreed. Florida’s definition of cocaine may not be completely consistent with the federal definition but Chamu failed to prove that it covers more substances. No illicit-nature mens rea is necessary to trigger removal consequences for offenses listed under 8 U.S.C. 1182(a)(2)(A)(i)(II) and 1227(a)(2)(B)(i). View "Chamu v. U.S. Attorney General" on Justia Law

Reeves is scheduled to be executed in January 2022. Alabama Act 2018-353 gave “death row inmates a single opportunity to elect that their execution be carried out by" nitrogen hypoxia, instead of Alabama’s default method, lethal injection. Reeves had until June 30, 2018, to elect nitrogen hypoxia in writing. An election form was distributed to every death row inmate. Reeves made no election. In 2020, Reeves filed suit under 42 U.S.C. 1983 and the Americans with Disabilities Act, 42 U.S.C. 12101, alleging that “with IQ scores in the upper 60s and low 70s, his general cognitive limitations and severely limited reading abilities rendered him unable to read and understand the election form without assistance” and that prison officials failed to provide a reasonable accommodation under the ADA.The Eleventh Circuit affirmed the entry of a preliminary injunction, prohibiting Reeves’s execution other than by nitrogen hypoxia while his ADA claim remains pending. Reeves has standing, having demonstrated an injury in fact by alleging that lethal injection is significantly more painful than nitrogen hypoxia. Reeves showed that he was substantially likely to succeed on the merits by proving that he is a qualified individual with a disability; he lacked meaningful access to the benefits of a public entity’s services, programs, or activities by reason of his disability; and the public entity failed to provide a reasonable accommodation. Reeves could only comprehend at a first-grade level. The election form required an eleventh-grade reading level to be understood. View "Reeves v. Commissioner, Alabama Department of Corrections" on Justia Law

Taxpayer conceded that he failed to report his foreign bank accounts to the IRS, but contested the IRS's determination that his violations were willful and argued for vacatur of his civil penalties. The district court held that taxpayer's violations were reckless, and therefore willful, in most of the tax years at issue. The district court also held that the IRS had miscalculated taxpayer's civil penalties and set them aside under the Administrative Procedure Act (APA), and then sua sponte calculated and imposed a fresh set of penalties.The Eleventh Circuit concluded that the district court applied the correct legal standard in analyzing whether taxpayer willfully violated the FBAR reporting requirements. The court explained that willful conduct in the FBAR context includes knowing and reckless conduct. Reckless conduct is action that objectively entails a high risk of harm, which is the standard the district court applied. Nevertheless, the court concluded that the civil penalties assessed by the IRS were unlawful under the APA and must be recalculated. In this case, the IRS erred by using the wrong foreign bank account balances to calculate taxpayer's penalties, contravening the relevant statute and regulations. The district court further erred by calculating and imposing new penalties instead of remanding to the agency, as required by the APA. The court explained that, even though the district court ultimately arrived at the same total penalty amount the IRS did originally, the IRS's original errors were not harmless. Accordingly, the court vacated and remanded for recalculation. View "United States v. Schwarzbaum" on Justia Law

Plaintiffs Maldonado and Hill filed suit in Florida state court, asserting violations of their federal and state constitutional rights to the free exercise of their religion. After plaintiffs were granted in forma pauperis status by the state court, the case was removed to federal court where plaintiffs did not seek in forma pauperis status. The district court dismissed Maldonado's claims under 28 U.S.C. 1915(g)—the three-strikes provision of the Prison Litigation Reform Act (PLRA)—and dismissed Hill's claims for failure to exhaust administrative remedies.In regard to Maldonado, the Eleventh Circuit held that a case commenced in state court by a prisoner and removed by a defendant to federal court—with the defendant paying the filing fee after removal—is not subject to dismissal under 28 U.S.C. 1915(g). In regard to Hill, the Eleventh Circuit held that the district court erred in dismissing his claims for failure to exhaust his administrative remedies. Accordingly, the court reversed the district court's dismissal of plaintiffs' claims. View "Maldonado v. Baker County Sheriff's Office" on Justia Law

The Eleventh Circuit reversed the district court's decision affirming the bankruptcy court's order granting the Bank's objection to plaintiff's claimed bankruptcy estate exemptions. The court concluded that Roth IRAs are excluded from Georgia debtors' bankruptcy estates pursuant to federal law. The court found that the development of the caselaw in this area and the subsequent amendments to the Georgia Code reflect the Georgia Assembly's intention to clarify that both traditional IRAs as defined in 26 U.S.C. 408 and Roth IRAs as defined in section 408A are exempt from garnishment, thus subjecting IRAs to a restriction on transfer by state statute, and making both types of IRAs eligible for exclusion under the Bankruptcy Code. Accordingly, the court remanded so that the district court may reverse the order of the bankruptcy court. View "Hoffman v. Signature Bank of Georgia" on Justia Law