Justia Consumer Law Opinion Summaries

Plaintiff Gene Moran, who was a patient at Huntington Beach Hospital (the Hospital) three times in 2013, sued defendants Prime Healthcare Management, Inc., Prime Healthcare Huntington Beach, LLC, Prime Healthcare Services, Inc., and Prime Healthcare Foundation, Inc. (collectively defendants) under various theories in 2013. In a prior opinion, the Court of Appeal found that while most of Moran’s claims lacked merit, he had sufficiently alleged facts supporting standing to claim the amount that self-pay patients were charged was unconscionable, and reversed the trial court’s dismissal of the case. Moran’s sixth amended complaint included both the allegations regarding unconscionability and a new theory of the case: defendants had violated the Unfair Competition Law (UCL), and the Consumer Legal Remedies Act (CLRA) by failing to disclose Evaluation and Management (EMS) fees charged in the emergency room through signage or other methods. The complaint sought relief under both the old and new theories for violations of the UCL, CLRA, and for declaratory relief. Defendants moved to strike the allegations regarding EMS fees, arguing their disclosure obligations were defined by statute. The trial court agreed and struck the allegations from the sixth amended complaint. Finding no reversible error in that decision, the Court of Appeal affirmed. View "Moran v. Prime Healthcare Management, Inc." on Justia Law

This case is part of the battle between telecommunications providers that are attempting to expand next-generation wireless services (commonly called 5G) and municipalities that are resisting that expansion. The City of Pasadena used another method: aesthetic design standards incorporating spacing and undergrounding requirements The city invoked those requirements to block Crown Castle’s ability to develop a 5G network in the region, and Crown Castle sued for relief. Congress and the Federal Communications Commission (“FCC”) anticipated those strategies and previously had passed the Federal Telecommunications Act (“FTA”) and responsive regulations. As a result, the district court decided in favor of Crown Castle, primarily basing its decision on the expansive language of the FTA and an FCC ruling interpreting the Act in light of 5G technology and associated challenges.The Fifth Circuit affirmed. The court held that the FTA preempts the city’s spacing and undergrounding requirements, and the city forfeited its arguments relating to the safe-harbor provision in the FTA. Nor did the district court abuse its discretion in ordering a permanent injunction. The court explained that, as the court found, the regulations affect only small cell nodes that would permit T-Mobile to offer extensive 5G service in Pasadena. Moreover, the court wrote that a party seeking a permanent injunction must establish (1) actual success on the merits; (2) that it is likely to suffer irreparable harm in the absence of injunctive relief; (3) that the balance of equities tips in that party’s favor; and (4) that an injunction is in the public interest. All those factors weigh in Crown Castle’s favor. View "Crown Castle Fiber v. City of Pasadena" on Justia Law

Over 20 years ago, a group of Florida wine consumers and an out-of-state winery (collectively, the “Plaintiffs”) sued the Director of the Florida Division of Alcoholic Beverages and Tobacco, alleging that certain provisions of Florida’s beverage laws unconstitutionally discriminated against out-of-state wineries. After the United States Supreme Court ruled a virtually identical statutory scheme unconstitutional, the Division agreed to the entry of a judgment declaring Florida’s direct shipment laws unconstitutional as applied to out-of-state “wineries.” The Division also agreed to an injunction prohibiting it from enforcing its direct shipment laws “against out-of-state vendors and producers.” Significantly, these last five words were absent from the parties’ proposed injunction and were added sua sponte by the district court. No one objected to the court’s addition of this language. However, 16 years later, the Division filed a motion in district court to “clarify and modify” the injunction. Specifically, the Division asked the district court to confirm that the injunction applied only to out-of-state wineries rather than out-of-state wine retailers generally. The district court denied the Division’s motion.   The Eleventh Circuit affirmed. The court explained that here, the district court expressly determined that the injunction the court entered “accurately reflects the intent of the parties and the Court.” Rule 60(a) does not allow a district court to rewrite its decision any time a party later contends that the language is ambiguous. Thus, the court held that the district court did not err by construing the Division’s motion as made under Rule 60(b)(1) instead of Rule 60(a). View "Jerry Bainbridge, et al. v. Director of the Florida Division of Alcoholic Beverages and Tobacco" on Justia Law

Plaintiff alleged that Valeant fraudulently obtained two sets of patents related to a drug and asserted these patents to stifle competition from generic drugmakers. Plaintiff further alleged that Defendants defrauded the federal government by charging an artificially inflated price for the drug while falsely certifying that its price was fair and reasonable. Dismissing Plaintiff’s action under the False Claims Act’s public disclosure bar, the district court concluded that his allegations had already been publicly disclosed, including in inter partes patent review (“IPR”) before the Patent and Trademark Office.   The Ninth Circuit reversed the district court’s dismissal. The panel held that an IPR proceeding in which the Patent and Trademark Office invalidated Valeant’s “‘688” patent was not a channel (i) disclosure because the government was not a party to that proceeding, and it was not a channel (ii) disclosure because its primary function was not investigative. The panel held that, under United States ex rel. Silbersher v. Allergan, 46 F.4th 991 (9th Cir. 2022), the patent prosecution histories of Valeant’s patents were qualifying public disclosures under channel (ii). The panel assumed without deciding that a Law360 article and two published medical studies were channel (iii) disclosures. The panel held that the “substantially the same” prong of the public disclosure bar applies when the publicly disclosed facts are substantially similar to the relator’s allegations or transactions. None of the qualifying public disclosures made a direct claim that Valeant committed fraud, nor did they disclose a combination of facts sufficient to permit a reasonable inference of fraud. View "ZACHARY SILBERSHER, ET AL V. VALEANT PHARMACEUTICALS INT'L, ET AL" on Justia Law

Plaintiff’s dog, Clinton, suffered from health problems. The solution, at least according to a veterinarian, was to feed him specialized dog food available only by prescription. It has different ingredients than regular dog food but includes no special medication. Prescription dog food is expensive. The crux of Plaintiff’s complaint is that the “prescription” requirement is misleading because the Food and Drug Administration never actually evaluates the product. And the damages came from its higher sales price. The original complaint, which included only state-law claims, reflected these theories. Brought on behalf of all similarly situated Missouri consumers, it alleged a violation of Missouri’s antitrust laws, claims under Missouri’s Merchandising Practices Act, and unjust enrichment. Plaintiff initially filed her complaint in state court, but Royal Canin and Nestle Purina quickly removed it to federal court. The district court then remanded it.   The Eighth Circuit vacated the district court’s judgment and send this case back to the district court with directions to remanded it to Missouri state court. The court explained that just on the face of the amended complaint, the answer is clear. Only the carryover claims and their civil-conspiracy counterpart remain, and neither one presents a federal question. It is no longer possible to say that “dependence on federal law permeates the allegations” of Plaintiff’s complaint. Further, the court wrote that the manufacturers hope to keep the case in federal court through supplemental jurisdiction. It is too late, however, to turn back the clock. View "Anastasia Wullschleger v. Royal Canin U.S.A., Inc." on Justia Law

Petitioner Green Development, LLC (Green Development) sought interconnection with the distribution system of Narragansett Electric Company (Narragansett), a public utility. Accommodation of the increased flows of electricity required certain upgrades to the transmission system owned by Respondent-Intervenor New England Power Company d/b/a National Grid (NE Power). NE Power assigned the costs of the transmission system upgrades directly to Narragansett. The newly assigned costs were reflected in a revised transmission service agreement (TSA) that NE Power and Narragansett filed for approval by the Federal Energy Regulatory Commission (Commission or FERC). Green Development protested the revised TSA. The Commission denied Green Development’s protest.  Green Development petitions for review contending that the Commission (1) erroneously concluded that Green Development’s arguments in the underlying section 205 proceeding operated as a “collateral attack” on the Complaint Order; (2) improperly applied the governing seven-factor test; (3) misinterpreted the Tariff’s definition of “direct assignment facilities”; and (4) erroneously failed to apply the filing procedures of Schedule 21-Local Service of the Tariff.   The DC Circuit denied the petitions. First, the court held that Commission has cured any purportedly erroneous ruling that Green Development’s section 205 protest constituted a collateral attack on the Complaint Order. The court rejected Green Development’s fourth claim. The court wrote that the issue with Green Development’s contention is that it presumes that the procedures in Schedule 21-Local Service are “mandatory processes” that applied to the filing of the TSA. But, the SIS and associated technical arrangements “pertain to initiating transmission service” and “do not demonstrate that Narragansett as an existing transmission customer was required to request new transmission service” under the Tariff. View "Green Development, LLC v. FERC" on Justia Law

The Supreme Court reversed the decision of the appellate court affirming the order of the circuit court granting summary judgment in favor of Defendants and dismissing Plaintiff's negligence claim, holding that the circuit court abused its discretion in granting Defendants' motion to preclude the opinions and testimony of Dr. Steven Elliot Caplan, Plaintiff's designated expert in the area of pediatric medicine.Plaintiff alleged that Defendants, who owned and managed property in which Plaintiff lived as a child, were liable for injuries she sustained as a result of exposure to lead-based paint at the property. After Plaintiff designated Dr. Caplan as her expert Defendants moved to preclude his opinions and testimony. The circuit court granted the motion and then entered summary judgment for Defendants, finding that Dr. Caplan lacked a sufficient factual basis for his opinions and that, without his testimony as to causation, Plaintiff was unable to establish a prima facie case of negligence. The Supreme Court reversed, holding (1) in ruling on the motion to preclude, the circuit court erroneously resolved genuine disputes of material fact; (2) therefore, the circuit court erred in granting summary judgment; and (3) Plaintiff presented sufficient evidence to establish a prima facie case of negligence. View "Oglesby v. Baltimore School Associates" on Justia Law

Petitioners Rick Hendrick Dodge Chrysler Jeep Ram (Rick Hendrick Dodge) and Isiah White argued an arbitrator had to decide whether they could enforce an arbitration provision in a contract even after that contract had been assigned to a third party. The court of appeals rejected this argument and affirmed the circuit court's determinations that: (1) the circuit court was the proper forum for deciding the gateway question of whether the dispute is arbitrable; and (2) Petitioners could not compel arbitration because Rick Hendrick Dodge assigned the contract to a third party. The South Carolina Supreme Court held that the doctrine announced in Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395 (1967) required the arbitrator to decide whether the assignment extinguished Petitioners' right to compel arbitration. Therefore, the Court reversed the court of appeals' decision and vacated the circuit court's discovery order. View "Sanders v. Savannah Highway Automotive Company" on Justia Law

In August 2019, Plaintiff filed a class action against GoDaddy. The putative class alleged that the web-hosting company embarked on an unlawful telemarketing campaign. Objector-Appellant then filed an objection and moved to reconsider the fee award. He made two arguments. First, he objected that the district court awarded fees to class counsel twenty days before the court’s purported objection deadline. Second, he claimed that the parties’ settlement was a “coupon settlement” under 28 U.S.C. Section 1712(e) of the Class Action Fairness Act because GoDaddy class members could select GoDaddy vouchers as their recompense. The question at the core of this appeal is whether the plaintiffs who received a single unwanted, illegal telemarketing text message suffered a concrete injury.   The Eleventh Circuit remanded this appeal to the panel to consider the CAFA issues raised in Appellant’s appeal. The court held that the receipt of an unwanted text message causes a concrete injury. The court explained that while an unwanted text message is insufficiently offensive to satisfy the common law’s elements, Congress has used its lawmaking powers to recognize a lower quantum of injury necessary to bring a claim under the TCPA. As a result, the plaintiffs’ harm “is smaller in degree rather than entirely absent.” View "Susan Drazen, et al v. Mr. Juan Pinto" on Justia Law

The PredictIt Market is an online marketplace that lets people trade on the predicted outcomes of political events. Essentially, it is a futures market for politics. In 2014, a division within the Commodity Futures Trading Commission (“CFTC”) issued PredictIt a “no-action letter,” effectively allowing it to operate without registering under federal law. But, in 2022, the division rescinded the no-action letter, accusing PredictIt of violating the letter’s terms but without explaining how. It also ordered all outstanding PredictIt contracts to be closed in fewer than six months. Various parties who participate in PredictIt (collectively, “Appellants”) challenged the no-action letter’s rescission in federal district court and moved for a preliminary injunction. The district court has not ruled on that motion, though, despite PredictIt’s looming shutdown. Appellants sought review, treating the district court’s inaction as effectively denying a preliminary injunction.   The Fifth Circuit concluded that a preliminary injunction was warranted because the CFTC’s rescission of the no-action letter was likely arbitrary and capricious. So, the court remanded for the district court to enter a preliminary injunction while it considers Appellants’ challenge to the CFTC’s actions. The court explained that the DMO’s withdrawal of no-action relief constitutes final agency action. Further, the decision to rescind a no-action letter is not “committed to agency discretion by law.” The court concluded that the revocation of the no-action letter was likely arbitrary and capricious because the agency gave no reasons for it. And the agency’s attempts to retroactively justify the revocation after oral argument—and in the face of our injunction—only underscore why Appellants are likely to prevail. View "Clarke v. CFTR" on Justia Law