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

Robert Kennedy was convicted of possessing a firearm as a convicted felon, possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The convictions were based on evidence found during a search of his apartment, including drugs, scales, and a firearm. Kennedy's prior convictions for burglary and drug offenses led to his classification as an armed career criminal and a career offender, resulting in a guidelines range of 420 months to life imprisonment. He received a below-guidelines sentence of 360 months.The United States District Court for the Middle District of Georgia admitted text messages and expert testimony over Kennedy's objections and found sufficient evidence to support his convictions. The court also determined that Kennedy's prior convictions qualified him for the ACCA and career offender enhancements, despite his arguments to the contrary.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court's decisions. The appellate court held that the text messages were admissible as they were directly related to the charged offense and not subject to Rule 404(b). The expert testimony was also deemed appropriate as it did not violate Rule 704(b). The court found sufficient evidence to support Kennedy's convictions, including testimony linking him to the drugs and firearm.The appellate court also upheld the ACCA enhancement, finding that Kennedy's prior burglary convictions qualified as predicate offenses. The court rejected Kennedy's arguments against the career offender enhancement, affirming that his prior drug convictions met the criteria. Finally, the court found Kennedy's sentence to be both procedurally and substantively reasonable, given the circumstances and the guidelines range. The sentence was affirmed. View "United States v. Kennedy" on Justia Law

The case involves a challenge to the U.S. Securities and Exchange Commission's (SEC) 2023 Funding Order, which amended the funding structure for the Consolidated Audit Trail (CAT). The CAT was established to create a single electronic system for gathering and maintaining data on stock trades. Initially, the SEC estimated the cost of building and operating the CAT to be significantly lower than the actual costs incurred. The 2023 Funding Order allowed self-regulatory organizations (SROs) to pass all CAT costs to their broker-dealer members, a shift from the original plan that required both SROs and broker-dealers to share the costs.The American Securities Association and Citadel Securities, LLC challenged the 2023 Funding Order, arguing that it was arbitrary and capricious. They contended that the SEC failed to justify the decision to allow SROs to pass all CAT costs to broker-dealers and did not update its economic analysis to reflect the actual costs of the CAT, which had significantly increased since the original estimates.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court found that the SEC's 2023 Funding Order was internally inconsistent and represented an unexplained policy change from previous rules that required both SROs and broker-dealers to share CAT costs. The court also determined that the SEC failed to consider the effects of allowing SROs to pass all CAT costs to broker-dealers, creating a potential free-rider problem. Additionally, the court held that the SEC's reliance on outdated economic analysis was unreasonable given the significant increase in CAT costs.The Eleventh Circuit vacated the 2023 Funding Order, stayed its decision for sixty days to allow the SEC to address the issues, and remanded the matter to the SEC for further proceedings consistent with the court's opinion. View "American Securities Association v. Securities and Exchange Commission" on Justia Law

Jeanne Weinstein, a former server at The Ridge Great Steaks & Seafood, filed a collective action complaint alleging that the restaurant and its operator, Stephen Campbell, violated the Fair Labor Standards Act (FLSA) by not meeting the federal minimum wage requirement. The Ridge paid servers and bartenders $2.15 per hour, supplementing their income with tips to meet the $7.25 minimum wage. The Ridge also required servers and bartenders to contribute 3% of their gross food sales to a tip pool, which was used to pay support staff. Any excess tips were supposed to be distributed to bartenders, but there were inconsistencies in the record-keeping and distribution process.The United States District Court for the Northern District of Georgia granted unopposed motions to voluntarily dismiss five opt-in plaintiffs. The court also ruled partially in favor of the defendants on summary judgment, finding that the tip pool funds were not distributed to non-tipped employees. The remaining issue for trial was whether the defendants retained any portion of the tip pool funds.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court affirmed the district court's judgment, holding that Rule 41(a) permits the dismissal of a single plaintiff in a multiple-plaintiff case if all claims brought by that plaintiff are dismissed. The court also found no error in the district court's conclusion that the defendants did not retain any of the extra tips and operated a lawful tip pool within the parameters of the FLSA. Consequently, the defendants successfully asserted the tip credit defense, and the plaintiffs could not prevail on their minimum wage claim. View "Weinstein v. 440 Corp." on Justia Law

A qui tam relator, Sedona Partners LLC, alleged that several transportation service providers (TSPs) engaged in a fraudulent scheme to defraud a U.S. government shipping program. The TSPs were accused of submitting low-ball bids to win contracts and then falsely certifying the need for foreign flag vessel waivers, despite knowing that U.S. flag vessels were available. This allowed them to use cheaper foreign vessels, thereby increasing their profits while undercutting competitors who submitted legitimate bids.The United States District Court for the Southern District of Florida initially dismissed Sedona's first amended complaint without prejudice, citing a lack of specificity in the allegations. Sedona then filed a second amended complaint, which included new allegations based on information obtained during discovery. The defendants moved to dismiss this complaint and to strike the new allegations, arguing that they were derived from discovery and thus circumvented the heightened pleading requirements of Federal Rule of Civil Procedure 9(b). The district court agreed, struck the discovery-based allegations, and dismissed the second amended complaint with prejudice, concluding that without these allegations, Sedona failed to meet Rule 9(b)'s particularity requirement.The United States Court of Appeals for the Eleventh Circuit reviewed the case and reversed the district court's decision. The appellate court held that Rule 9(b) does not prohibit courts from considering allegations based on information obtained in discovery when deciding a motion to dismiss. The court emphasized that Rule 9(b)'s text does not restrict the source of information used to satisfy its requirements and that supplementing the rule with such a restriction would contravene the Supreme Court's guidance against adding pleading requirements on a case-by-case basis. The appellate court vacated the district court's order dismissing the complaint and remanded the case for further proceedings. View "Sedona Partners LLC v. Able Moving & Storage Inc." on Justia Law

Bernard Perez, an ophthalmologist, entered into a disability insurance contract with MONY Life Insurance Company in 1988. After being diagnosed with throat cancer in 2011, Perez began receiving monthly disability benefits. MONY later suspected Perez of dishonesty in his disability claims and financial information, leading to the discontinuation of payments in February 2018. MONY sued Perez for unjust enrichment, and Perez counterclaimed for breach of contract.The Middle District of Florida held a nine-day trial where evidence showed Perez's deceitful conduct, including misrepresenting his ownership in his medical practice and overstating his physical ailments. The jury found in favor of MONY on the unjust enrichment claim, awarding $388,000, and rejected Perez's breach of contract counterclaim.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court held that under Florida law, an unjust enrichment claim cannot proceed when an express contract covers the same subject matter. Therefore, the district court erred in allowing the unjust enrichment claim to go to the jury. The Eleventh Circuit set aside the jury's verdict on this claim and directed the district court to vacate the judgment awarding MONY $448,930.06.Regarding Perez's breach of contract counterclaim, the Eleventh Circuit found that the district court erred in failing to interpret the ambiguous term "acceptable proof of loss" in the insurance contract. However, this error was deemed harmless because the evidence overwhelmingly showed Perez's dishonesty in his proofs of loss. Thus, the jury's verdict against Perez on his breach of contract counterclaim was affirmed. The court also affirmed the district court's evidentiary rulings and denial of sanctions. View "MONY Life Insurance Co. v. Perez" on Justia Law

A property insurance dispute arose between a church in Albany, Georgia, and its insurer following storm damage in 2014. The church's property, which included asbestos tile roofs, was insured under an all-risks policy. After the storm, the insurer's adjuster estimated repair costs at $2,300, but the church's contractor estimated over $1.3 million for full roof replacement. The church sued for breach of contract and bad faith. In 2018, Hurricane Michael caused further damage, and the church filed a claim with a different insurer, obtaining a lower repair estimate. The original insurer argued that the church's failure to disclose this second claim constituted a material misrepresentation.The United States District Court for the Middle District of Georgia excluded evidence of the alleged misrepresentation, finding it irrelevant. The jury awarded the church $1.75 million in damages, and the insurer's motion for a new trial was denied. The insurer appealed, arguing that the exclusion of misrepresentation evidence was erroneous and that the damages award was speculative and contrary to the policy terms.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It found that the insurer had waived its misrepresentation defense by not objecting during trial and by explicitly withdrawing the defense. The court also held that the jury's award, which included increased construction costs due to delays, was supported by sufficient evidence and did not constitute double recovery when combined with prejudgment interest. The court affirmed the district court's rulings and the jury's verdict. View "Central Baptist Church of Albany Georgia Inc v. Church Mutual Insurance Co." on Justia Law

Dr. Joseph Jimenez, a former medical officer for the Federal Bureau of Prisons (BOP), alleged race and national origin discrimination, retaliation under Title VII of the Civil Rights Act of 1964, and disability discrimination under the Rehabilitation Act. Dr. Jimenez, who identifies as Hispanic, claimed that his employer required him to work as a correctional officer while non-Hispanic doctors were exempt. He also alleged that the BOP denied him a reasonable accommodation for his mental health conditions.The district court dismissed Dr. Jimenez’s Title VII claims related to certain adverse employment actions for failure to exhaust administrative remedies. The court granted summary judgment to the BOP on the remaining Title VII claims, finding no evidence of discriminatory or retaliatory motives. The court later dismissed Dr. Jimenez’s Rehabilitation Act claim for lack of subject-matter jurisdiction, rejecting his attempt to correct a citation error in his complaint.The United States Court of Appeals for the Eleventh Circuit affirmed the district court’s decisions. The appellate court held that Dr. Jimenez failed to exhaust administrative remedies for his claims related to the denial of bonuses and failure to promote. The court also found that Dr. Jimenez did not present sufficient evidence to show that his race, national origin, or protected activity influenced the BOP’s actions. Additionally, the court upheld the dismissal of the Rehabilitation Act claim, agreeing that the citation error was not a mere scrivener’s error and that Dr. Jimenez did not demonstrate good cause to amend his complaint after the scheduling order deadline. View "Jimenez v. Acting United States Attorney General" on Justia Law

Jessica Nelson discovered errors in the informational section of her credit report from Experian, including an incorrect spelling of her maiden name, addresses to her mother’s home and attorney’s office, and a variation of her social security number. She spent time and money attempting to correct these errors by sending letters to Experian, which directed her to contact the furnishers of the information. Despite her efforts, some errors remained uncorrected, and Experian did not inform her of the corrections made.Nelson sued Experian in Alabama state court under the Fair Credit Reporting Act, alleging that Experian failed to conduct a reasonable reinvestigation into her information. Experian removed the case to federal court and sought judgment in its favor. The district court denied Experian’s motion for judgment on the pleadings, concluding that Nelson had standing based on her out-of-pocket expenses and time spent correcting the information. However, the district court later granted summary judgment in Experian’s favor on the merits of Nelson’s claim. Nelson appealed.The United States Court of Appeals for the Eleventh Circuit reviewed the case and focused on whether Nelson had standing under Article III. The court held that spending money and time to correct errors on a credit report that has not been published to a third party or otherwise affected the plaintiff does not satisfy the standing requirements of Article III. The court found that Nelson’s efforts to correct the information were self-imposed and did not constitute a concrete injury. Additionally, the court rejected Nelson’s argument that the errors increased her risk of identity theft, finding it too speculative to constitute an imminent harm.The Eleventh Circuit vacated the district court’s judgment and remanded the case for further proceedings consistent with its opinion. View "Nelson v. Experian Information Solutions Inc." on Justia Law

Walmart, Inc. faced allegations from Immigration and Customs Enforcement (ICE) for 11,103 violations of immigration-related recordkeeping requirements at 20 locations. These cases were assigned to an Administrative Law Judge (ALJ) in the Department of Justice’s Office of the Chief Administrative Hearing Officer (OCAHO). Before the ALJ could rule on the merits, Walmart filed a lawsuit in federal district court, challenging the constitutionality of the "good cause" removal procedure for ALJs under 5 U.S.C. § 7521(a) of the Administrative Procedure Act (APA). Walmart argued that this removal procedure infringed upon the President’s executive power under Article II of the Constitution.The United States District Court for the Southern District of Georgia ruled in favor of Walmart, declaring § 7521(a) unconstitutional and permanently enjoining the Department and its Chief ALJ from adjudicating ICE’s complaints against Walmart. The district court refused to sever § 7521(a) from the rest of the statute.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed the case. The Eleventh Circuit held that the APA’s § 7521(a) is constitutional as applied to the Department’s ALJs in OCAHO. The court reasoned that the ALJs perform purely adjudicative functions, have limited duties, and lack policymaking or administrative authority. Additionally, the decisions of the ALJs are subject to plenary review by the Attorney General, who is removable at will by the President, ensuring sufficient executive control.The Eleventh Circuit vacated the district court’s permanent injunction and reversed its entry of summary judgment for Walmart. The court also noted that even if § 7521(a) were unconstitutional, the proper remedy would be to sever the "good cause" removal restriction, leaving the rest of the APA intact. View "Walmart, Inc. v. King" on Justia Law

In 2014, Mikel Mims pleaded guilty to conspiracy to commit wire fraud and was sentenced to three years of probation and ordered to pay $255,620 in restitution. After completing her probation in 2017, Mims stopped making restitution payments. In 2022, the district court ordered Mims to resume her restitution payments, prompting Mims to appeal, arguing that the court lacked jurisdiction and violated her due process rights.The district court for the Southern District of Florida initially expressed doubts about its jurisdiction after Mims's probation ended. However, after the government filed a motion and Mims responded, the court concluded it had jurisdiction under various statutory provisions and ordered Mims to comply with the original restitution order, including making up for missed payments.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the district court had ancillary jurisdiction to enforce its restitution order, as it was part of Mims's original criminal sentence. The court also found that Mims had been given adequate notice and opportunities to be heard, satisfying due process requirements. The Eleventh Circuit concluded that the district court did not err in ordering Mims to resume her restitution payments and affirmed the lower court's decision. View "United States v. Mims" on Justia Law