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

This appeal arose out of the Ponzi scheme orchestrated by Scott Rothstein through his law firm, Rothstein Rosenfeldt Adler (RRA). Trustees of RRA filed suit alleging breach of contract and bad faith claims against insurance carriers that reached a settlement with Gibraltar and its executives after originally denying coverage. The Eleventh Circuit applied Florida law and exercised plenary review, holding that coverage was barred by a "professional services exclusion" found in each of the policies. Accordingly, the court affirmed the district court's grant of the insurers' motion to dismiss. View "Stettin v. National Union Fire Insurance Co." on Justia Law

In an in rem admiralty proceeding involving the wreckage of Spanish galleons, Fleet-Queens recovered approximately four hundred gold coins, among other treasures, from an area that Gold Hound had allegedly been salvaging while acting as a subcontractor for Fleet-Queens. Gold Hound filed suit claiming that this discovery was made using its proprietary maps and software, seeking to intervene in the in rem action to assert a maritime lien over some of these artifacts and to assert state law claims. The district court denied the motion to intervene and concluded that Gold Hound was not entitled to a maritime lien. The Eleventh Circuit held that the district court properly determined that it had and continues to have subject-matter jurisdiction over the res; Gold Hound should be granted leave to intervene in this proceeding to assert its in rem claims; and, on remand, the court deferred to the district court's discretion to determine whether to exercise supplemental jurisdiction over Gold Hound's state law claims. The court vacated the district court's denial of Gold Hound's motion to intervene and its denial of Gold Hound's claim to a maritime lien and remanded, because the court could not decide on the record whether Gold Hound may succeed because basic facts remain in dispute. View "Salvors, Inc. v. Unidentified Wrecked & Abandoned Vessel" on Justia Law

The Eleventh Circuit affirmed the district court's denial of petitioner's motion under 28 U.S.C. 2255 to vacate her conviction and sentence for using and carrying a firearm during and in relation to a crime of violence, car jacking in this case. The court held that Johnson v. United States does not apply to or invalidate 18 U.S.C. 924(c)(3)(B) and that petitioner's attempted-carjacking conviction qualifies as a crime of violence under section 924(c)(3)(B). Alternatively, the court held that petitioner's attempted carjacking categorically qualifies as a crime of violence under the force clause of section 924(c)(3)(A). View "Ovalles v. United States" on Justia Law

ZPRIM sought review of the SEC's final order finding that petitioners made material misrepresentations to prospective clients in violation of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1. The Eleventh Circuit vacated the violations and monetary sanctions related to the newsletter ZPRIM published in December 2009. In this case, ZPRIM's disclaimer was not boilerplate and was not buried among too many other things, but was explicit, repetitive and linked to the statement about which the SEC complains. Therefore, in light of the clear cautionary statements in the newsletter, the Commission's finding of materiality for that newsletter was not supported by substantial evidence. The court affirmed all other violations and sanctions. View "ZPR Investment Management Inc. v. SEC" on Justia Law

The board of trustees for the University filed suit against CoMentis in federal court, asserting diversity of citizenship under 28 U.S.C. 1332(a). The district court dismissed the complaint on the merits. The Eleventh Circuit held that, because the USF Board was an arm of the Florida state government, the district court lacked diversity jurisdiction over the suit between it and CoMentis, a citizen of another state. Accordingly, the court vacated and remanded to the district court with instructions to dismiss the complaint for lack of subject matter jurisdiction. View "University of South Florida Board of Trustees v. CoMentis, Inc." on Justia Law

Answering certified questions from the Eleventh Circuit, the Supreme Court of Georgia concluded that, while O.C.G.A. 9-11-67.1 sets forth certain terms and conditions that must be included in every written offer of settlement, nothing in Georgia law or the statute precludes parties from requiring "some additional act to effectuate acceptance;" O.C.G.A. 9-11-67.1 permits unilateral contracts whereby Pre-Suit Offers may demand acceptance in the form of performance before there was a binding enforceable settlement contract; and O.C.G.A. 9-11-67.1 does not preclude a Pre-Suit Offer from demanding timely payment as a condition of acceptance. In light of these answers, the Eleventh Circuit held that the district court correctly determined that O.C.G.A. 9-11-67.1 does not prohibit a party from requiring timely payment as a condition of acceptance of a settlement offer; the offer letter in this case unambiguously conditioned acceptance on timely payment; the insurers' issuance of two $50,000 checks with incomplete addresses, which never reached defendants or their attorney, did not satisfy this timely-payment condition; and the insurer failed to accept defendants' settlement offer, thus preventing the formation of a binding settlement agreement. Accordingly, the court affirmed summary judgment for defendants. View "Grange Mutual Casualty Co. v. Woodard" on Justia Law

Not all deception by law enforcement invalidates voluntary consent. Defendants pleaded guilty to several offenses related to credit card fraud and then appealed the denial of their motion to suppress evidence. The Fifth Circuit held that the district court did not clearly err in finding that one of the defendants voluntarily consented to the search because she made a strategic choice to report a burglary and to admit the officers into her home. In this case, defendants' home was previously burgled and officers came to their house on the pretense of following up on the burglaries. The court held that the district court did not clearly err in determining that the "ruse" did not coerce defendant into giving her consent voluntarily. Accordingly, the court affirmed the judgment. View "United States v. Spivey" on Justia Law

Section 707(b) of the Bankruptcy Code, which allows a bankruptcy court to dismiss a petition filed under Chapter 7 if it determines that relief would be an "abuse" within the meaning of that section, applies to a petition that was initially filed under Chapter 13 but later converted to a petition under Chapter 7. The Eleventh Circuit explained that by excluding converted cases from section 707(b), the effect would be to read this important remedial provision out of the Code. Accordingly, the court affirmed the district court's decision to uphold the bankruptcy court's dismissal of the petition in this case. View "Pollitzer v. Gebhardt" on Justia Law

Plaintiff filed suit against S&N for negligence, product liability, breach of contract, and misrepresentation. Plaintiff's claims stemmed from his decision to get S&N's metal-on-metal hip replacement system and the injuries he says it caused him. The Eleventh Circuit affirmed the district court's dismissal of the negligence claim to the extent it relies on an improper training or failure to warn theory of liability; affirmed the dismissal of the breach of contract claim; and reversed the dismissal of the negligence claim and strict product liability claims premised on manufacturing defect, as well as his misrepresentation claim. The court explained that these surviving claims were cognizable Florida common law causes of action and were not preempted by federal law. View "Mink v. Smith & Nephew, Inc." on Justia Law

Richard Culbertson was counsel for the four plaintiffs in these consolidated Social Security disability benefits cases. At issue in this appeal was the attorney's fees for Culbertson under 42 U.S.C. 406 and the Equal Access to Justice Act (EAJA), 28 U.S.C. 2412(d). The Eleventh Circuit held that the district court did not err in its interpretation and application of Dawson v. Finch, 425 F.2d 1192 (5th Cir. 1970) and by imposing a 24% cap on section 406 fees; it was necessary for the district court to add the requested section 406(b) fee together with his EAJA award; and the district court did not abuse its discretion and did not exceed its authority. Accordingly, the court affirmed the judgment. View "Wood v. Commissioner of Social Security" on Justia Law