Gratuitous Guidance From The First Circuit

There's a terrific sequence in this morning's decision by the First Circuit in LPP Mortgage, Ltd. v. Sugarman, No. 08-2134. The Court was faced with a situation in which the parties disagreed about whether Maine or Massachusetts law applied to their dispute, and the district court decided to use a hybrid of the two. "Neither side complains about this approach on appeal," the Court writes, "and we mention it only because both sides were probably wrong." (emphasis mine).

See, this was one of those rare instances where federal common law applied to the claims in question. No real harm done, but it always stings a bit to have a judge tell you that you whiffed on an argument.

Yes: You Gotta Read The Errata

This post from a little over a month ago discussed a couple of Chapter 93A points from the TJX identity theft case. Yesterday, the First Circuit issued its "errata" from the initial opinion. But the errata aren't really errata.

Instead, the Court expands quite substantively on the significance of Federal Trade Commission complaints and consent decrees in the analysis of Chapter 93A claims. The Court replaces two terse paragraphs spanning about a page with five longer paragraphs that run for three and a half pages. What prompted this? It looks like it was TJX's petition for a rehearing (which you can find if you have a PACER account). The response to that petition appears to have been: "Yes, TJX, we'll give you a rehearing. Thanks for the brief! We've reviewed it and we're still ruling against you."

The panel goes a few clicks further than that, though. It emphasizes the magnitude of the plaintiffs' allegations against TJX:

If the charges in the complaint are true (and obviously the details matter), a court using these general FTC criteria might well find in the present case inexcusable and protracted reckless conduct, aggravated by failure to give prompt notice when lapses were discovered internally, and causing very widespread and serious harm to other companies and to innumerable consumers. And such conduct, a court might conclude, is conduct unfair, oppressive and highly injurious--and so in violation of chapter 93A under the FTC's interpretation.

Emphasis mine. But I'm still not clear on what the erratum was.

First Circuit Friction

It is starting to get warm in Boston, thank goodness.

But the First Circuit's en banc decision in Aronov v. Napolitano, No. 07-1588, throws off a different kind of heat.

The dispute involves a $4,270.94* fee award entered by the District Judge Nancy Gertner against United States Citizenship and Immigration Service in a suit by a private plaintiff. The issue really is whether the plaintiff prevailed before Judge Gertner, which is prerequisite to the fee award. Judge Gertner said that he had. The First Circuit saw it differently, going so far as to hold that Judge Gertner incorrectly interpreted her own ruling on a joint motion by the parties.

Judge Torruella was having none of this and he dissented.** Vigorously. It's a bit rare see a judge on the United States Court of Appeals address his colleagues like this (page 37):

With due respect, I suggest that our jurisprudence would better reflect the time-honored motto, "Equal justice under law," if we showed the same doctrinal flexibility and credulity to policy arguments presented by citizens asking us to limit governmental power, or for compensation for harm caused by governmental error, as shown by the majority to the government in this appeal.

Let's stipulate that this is the kind of statement that would lead a law professor to upbraid, humiliate, and generally disembowel a first year law student. We can agree on that. But that doesn't make the esteemed judge wrong, now, does it?

*Really? Really.

**As did Judge Lipez. His dissent reads more like a majority opinion, which is not insignificant.

Why Decisionism Exists

So everyone can enjoy paragraphs like this one:

A famous fairy tale, of ancient vintage, tells of an ugly frog who, when befriended by a beautiful damsel, turns into a handsome prince, marries his rescuer, and (presumably) lives happily ever after. See Jacob Grimm & Wilhelm Grimm, The Frog-King, reprinted in 17 The Harvard Classics 47 (Charles W. Eliot ed., P.F. Collier & Son 1909). The coquí is a tree frog indigenous to Puerto Rico. Plaintiff-appellee Coquico, Inc. has not yet managed to turn the coquí into an imperial presence. It has, however, fashioned a popular stuffed-animal rendering of the coquí and, thus, turned the frog into dollars.

That's how Judge Selya's opinion begins in Coquico, Inc. v. Rodriguez-Miranda, First Cir. No. 07-2786. It's probably a good thing that all judges don't write like this. But it's definitely a good thing that at least one judge does.

Two Less Exciting Points From The TJX Identity Theft Case

The First Circuit handed down an opinion in connection with the TJX identity theft debacle from a few years ago. The case is In re: TJX Retail Security Breach Litigation, No. 08-2828. Everyone probably remembers the facts, but here's a link to a contemporaneous news account. If you're looking for sexy talk about identity theft, though, you ought to move along.

Now: If you're an attorney and your practice rubs up against commercial litigation, you should skip to page 14 of the opinion. There you'll find a couple of important statements by the First Circuit concerning Chapter 93A, the unfair business practices statute. First, the Court makes it clear that 93A claims need not be based on "egregious" conduct. But the Court doesn't go very far in clarifying what types of unfair conduct do manage to clear the statutory hurdle. "[S]ystematic recklessness may suffice." Might it? Hmm.

Second, the Court discusses the requirement that the unfair act(s) in question must happen primarily and substantially in the Commonwealth. Here we get a bit more clarification, but only a bit. Apparently the requirement is satisfied if a defendant has an office in Massachusetts -- even if the bad acts didn't happen at that office. Communicating with someone via servers located in Massachusetts also seems to get you there. That's good to know, too. Is it entirely consistent with the statute's language? Again: hmm.

Working Mothers: Rejoice

The First Circuit emphatically supported working mothers today in Chadwick v. Wellpoint, Inc., No. 08-1685. The plaintiff was passed over for promotion and she sued her employer. The trial court dismissed her suit even though she alleged that when her boss explained why she hadn't gotten the promotion, she said "It's nothing you did or didn't do. It was just that you're going to school, you have the kids* and you just have a lot on your plate right now."

The First Circuit reversed, and Judge Stahl was quite clear as to why the Court ruled as it did. And he found the point important enough that he repeated it over and over:

• On pp. 9-10: "[T]he assumption that a woman will perform her job less well due to her presumed family obligations is a form of sex-stereotyping and that adverse job actions on that basis constitute sex discrimination."
• On p. 11: "[U]nlawful sex discrimination occurs when an employer takes an adverse job action on the assumption that a woman, because she is a woman, will neglect her job responsibilities in favor of her presumed childcare responsibilities."
• On p. 11: "[A]n employer is not free to assume that a woman, because she is a woman, will necessarily be a poor worker because of family responsibilities."

It's honestly a little bit surprising that the defendants moved for summary judgment on this record. Though I suppose they can take some cosmic solace in the fact that there was at least one judge out there who thought they should win without a trial.

*The plaintiff has four of them, including triplets. After learning about the triplets, one of her superiors e-mailed her and said "Bless you." Here's what the First Circuit made of that (footnote 10): "The district court erred by concluding that the 'Bless you' comment was was conclusively a 'friendly exclamation.' This is a factual conclusion that a judge at summary judgment is not free to make."

No Mulligan For Staples

The First Circuit has denied rehearing in Noonan v. Staples, Inc., No. 07-2195. It did so last week, but the order itself appears to have been released to the masses today. The Court's earlier decision, which was surprisingly controversial (surprisingly because the First Circuit did little more than apply a really, really old statute's plain language), therefore stands.

Form, Function & Aesop

Lynn still has a race-based school assignment policy. Some parents filed suit against Lynn several years back and the First Circuit, en banc, upheld the policy in 2005. The parents appealed to the Supreme Court. The Court denied certiorari. And that was that.

In 2007, however, the Supreme Court struck down raced-based public school assignments in Seattle and Louisville "that bore a distinct resemblance to" Lynn's policy in Parents Involved in Community Schools v. Seattle School Dist. No. 1. Justice Thomas explicitly called out the First Circuit in his concurring opinion. He said that its decision on the Lynn case was "inimical to the Constitution."

So the parents sought to reopen their case. The trial court denied their request. Today, in Comfort v. Lynn School Committee, No. 08-1735, the First Circuit affirmed the trial court. The Court's reasoning, in short, is that when the Supreme Court denied review of the Lynn case in 2005, it was over. The Court concludes with a footnote that chides the plaintiffs and says all they have to do is file a new suit challenging the assignment policy. "With that option open but unutilized," writes Judge Selya, "the plaintiffs claims of inequity ring hollow."

This is entirely correct from a technical perspective. But is it really fair? Is the First Circuit putting form over function? Would it be less fair if the "inimical" comment had come in the Supreme Court's majority opinion and not a concurrence by Justice Thomas? And might there be an implicit recognition here by the First Circuit that just because the Supreme Court struck down similar policies in Seattle and Louisville, that doesn't mean the Lynn approach is unconstitutional? Or is it just that our commitment to the common law -- as in The Common Law -- will inevitably on occasion cause us to furrow our collective brow?

A Weird Couple Of Weeks For The First Circuit And The First Amendment

The First Circuit handed down another First Amendment decision today in Del Gallo v. Parent, No. 08-1511. There are a couple of disconcerting things about this opinion.

The first is that it looks a lot like the plaintiff's utterly bizarre campaign conduct had as big an effect on the panel's decision as the actual substantive law. The plaintiff was campaigning for the Governor's Council.* He was hectoring postal patrons and employees in the process. But what if the plaintiff had been a gentle-hearted, polite, intelligent elderly woman? The case might have come out differently.

Here's why: because the postal service regulation in question looks a lot like a content-based restriction on speech. The regulation bars campaign activities in sidewalk areas on postal service property. The First Circuit says on page 29 that "[t]he regulation, which bars election campaigning regardless of the identity of the candidate or the opinions he espouses is clearly viewpoint neutral." This points to a gaping hole (one of many) in current First Amendment jurisprudence: the strained construction of viewpoint neutrality. The reg prohibits campaign speech. It does not bar speech about music. It does not bar speech about birds. No. Just campaign politics. And yet the regulation is called viewpoint neutral. Which is right: unless your viewpoint is that you would rather talk about campaign politics than birds.

There were some other openings here for the First Circuit to hold for the plaintiff. It avoided them all. Which is kind of what the first point is about.

*Why? Because as George Mallory said, it is there. See here for more on this esteemed government body.

Everyone Needs To Calm The Heck Down

The world seems to have lost its collective marbles over the First Circuit's recent decision in Noonan v. Staples, Inc., No. 07-2159. The decision refers to Mass. Gen. Law ch. 231, Section 92 and reminds us that truth is not an absolute defense to libel in Massachusetts.

Okay.

What does the statute say? "The defendant in an action for writing or for publishing a libel may introduce in evidence the truth of the matter contained in the publication charged as libellous; and the truth shall be a justification unless actual malice is proved." It dates from 1855.

So if you say or write something about a private citizen in Massachusetts and what you say happens to be defamatory and you say it with actual malice, you can't use truth as a defense. Massachusetts is pretty unique in this respect.

Massachusetts is also pretty unique in its failure to recognize a cause of action for "false light". That is, in Massachusetts as opposed to elsewhere, you can't win a lawsuit against someone if they something true about you that casts you in a false light. Might that be related to Section 92? It just might.

What's interesting about the uproar is that the First Circuit's interpretation is nothing new. The statute is 150 years old, after all. It hasn't just been sitting there up until now: if you take a spin through cases that cite to Section 92, you'll notice that courts recognize the weird uniqueness of the law and then move on. If this were as big a deal as the commentators seem to think, you can bet that Judge Lipez (who was also on the panel and who knows what he's doing) would have dissented or at least concurred.

But the real thing to keep in mind here is that this situation is about as fixable as can be. We don't have to wait around for decades for the right case to come along, pray that the SJC or the U.S. Supreme Court agrees to review it, and then cross our fingers and toes and hope that they get it right.

No. All we have to do is change the statute. So if you're that upset about the Noonan decision, go work on that. This blog will support you 100%.

Eggplant *Is* Obscene, Though

Think about this for a second.

Let's say our congresspeople decide that the most offensive thing in the universe is eggplant. That eggplant -- raw, cooked, smoked, braised -- is obscene. So obscene that it's dangerous. So obscene that any person having eggplant images on his hard drive has committed a federal crime.

Now say a friend of yours who likes to spend time in the kitchen sends you an e-mail with a .jpg attachment. And that .jpg attachment depicts your pal's unfortunate attempt at eggplant parm. You click the attachment. You look at the eggplant. You are disgusted.

Today the First Circuit confirmed in United States v. Lewis, No. 07-1462, that the use of the internet to convey such an image would satisfy the statutory (and constitutionally-mandated) requirement that the crime affect interstate commerce. Because sending an e-mail over the intertubes constitutes engagement in interstate commerce.

Read that last sentence again. And think about whether there are five United States Supreme Court Justices who would agree with it.

Unsung Heroes Of The Flight Patterns

The next time you fly into Boston, remember those faceless, dedicated bureaucrats at the Federal Aviation Administration who worked hard to make your flight as short as possible. In Town of Marshfield v. FAA, No. 07-2820, the First Circuit tells their story.

The FAA used the Integrated Noise Model (INM). Marshfield found this to be very uncool. Marshfield insists that the FAA should have used the Noise Integred Routing System (NIRS). Well of course it should have.

The First Circuit was not persuaded. In part because, it seems, neither side did all that great a job being persuasive. As the Court states: "Where neither side has shed much light on a matter, judges tend to fault the appellant; . . . In this case, the FAA's assessment of minimal impact is not implausible. If there is a stronger argument for insisting that the FAA use NIRS or some other computer modeling program in cases like this, it can await an instance in which a more powerful argument is presented."

There's other stuff going on here, but it's so exciting that you'll just have to read the case for yourself.

The Dog Ate My Memory

Yesterday, in a patient and thorough opinion, the First Circuit clarified the circumstances under which a court can summarily dispose of a case in which the only argument one side can muster is that it's possible the jury might not believe the other side's testimony. The case is LaFrenier v. Kinirey, First Cir. No. 07-1644.

It involved civil rights claims against two police officers arising from arrest in Townsend, Massachusetts. The twist is that the plaintiff "had no memory of the key events". Kind of a red flag, that.

Sarah Palin And Her Followers Should Take Note . . .

In an election cycle that featured approximately ten thousand moments that kind of just made you have to shake your head, one of the more awe-inspiring instances was when Sarah Palin accused the press of threatening her First Amendment rights. People all across the ideological spectrum were quick to jump on Governor Palin. Because, for one thing, the Bill of Rights protects us from government action. Not from each other.

This, tangentially, is what the First Circuit dealt with today in Broadley v. Hardman, No. 08-1342. Not Sarah Palin. No. They dealt with the question of when a private person becomes a government actor. And they held that a lawyer who issues a subpoena in a civil case is not a state actor.

Both parties to the appeal represented themselves, by the way, which must have been great fun for the judges on the panel and their clerks.

The Right Line Of Work

If you're a lawyer -- a litigator -- and someone tells you there's a case in the First Circuit involving the question of whether a Maine wilderness waterway enactment is preempted by the federal Wild and Scenic Rivers Act, and your response is "Ooohhh! Cool issue!", that's a good sign you've chosen the proper line of work. (Though if you draft ghastly run-on sentences like the foregoing, you ought to reconsider any profession involving the written word.)

It's also the issue decided (no preemption) by the First Circuit today in Fitzgerald v. Harris, No. 08-1306.

Common Sense Alert

The result in United States v. Levesque, 1st Cir. No. 08-1344, feels like it's right. A woman who drove marijuana shipments all over the Eastern seaboard was hit with a $3 million dollar forfeiture order because that's what the stuff she shipped was worth. The woman told the district court that she had made $37,000 on her illegal activities. The court said, in essence, that's great but you might do well in the future and be able to pay the government back.

The First Circuit reversed, in no small part based on the Magna Charta (!) and the excessive fines clause of the Eighth Amendment (remember that?).

Just at a really basic level, didn't the First Circuit do the right thing? How can a person who made $37,000 on drug transactions worth $3 million be put on the hook for the whole $3 million?

This one could go all the way. The holding is based in no small part on a fractured Supreme Court decision where Justices Scalia and Breyer broke with their usual allies and did exactly the opposite of what the conventional wisdom would have them do. So as much as this blog has beaten the drum of result-based decision-making, there are exceptions out there. Not enough. Better not to be greedy, though.

Splitting The Difference

There's a fascinating instance of the First Circuit attempting to do something that all clients hate (until, that is, they benefit from it): split the baby. The case is Jensen v. Phillips Screw Co., First Cir. No. 07-2766.

The parties were fighting about a $9,000 sanction order imposed by the district court judge on plaintiffs' counsel in a class action. Now $9,000 isn't a lot of money. That's true. But getting sanctioned is a pretty big deal and will at the very least hurt the feelings of even the most thick-skinned table-thumper. So plaintiffs' counsel fought the ruling. And the First Circuit largely agreed with them, reversing the award.

The most interesting portion of the decision is the last paragraph. This is the kind of thing that every lawyer always suspects that a judge or arbitrator is thinking. It's rather momentous to see it actually committed to writing:

The battle that is presently being fought is obviously about principle, not money (experience suggests that each side has spent more than the dollar amount of the sanction in briefing and arguing this appeal). As a matter of mutual interest, the time may have come for the protagonists to call it quits. On the one hand, Phillips prevailed in the district court and can credibly claim a moral victory. On the other hand, SE&D has prevailed in large part on this appeal and, at that point, has erased the stain on its escutcheon.

Trend vs. Blip Dept.

Again? Yes, again. We may be reading more into this than we should, but isn't the First Circuit's tone in McGill v. U.S. Express Truck Co., No. 08-1101, a little bit exasperated?

Not Something You See Every Day

Appellate courts tend to give trial courts a lot of leeway when it comes to controlling their dockets. The only way a trial court will be reversed in this context is if the judge abuses his or her discretion. And appellate courts, especially the First Circuit, are very reluctant to find that a federal trial judge has abused that discretion. When they do make such a finding, they usually explain themselves in quite a bit of forceful detail.

So Beetz v. Ambrosi, First Circuit No. 07-2449, is just weird. The essence of it is that the trial judge allowed a motion to withdraw that also sought a 30-day extension of the time in which to file an amended complaint, then dismissed the case 23 days later. The First Circuit didn't call the trial judge onto the carpet, however. It just sent the case back.

Two other odd aspects of this case:

1. The plaintiff claimed that he'd filed an amended complaint in a timely fashion, the First Circuit believed him, but there was no electronic record of the filing. As most folks who practice in federal court will tell you, that doesn't happy very often. If ever.

2. The defendant claimed that since the trial judge had not explicitly allowed the original attorney to withdraw and stated that the time for filing the amended complaint was extended, that the order should only be interpreted as allowing the withdrawal. Some would call this argument "creative." Others would call it "stupid."

Retired Supreme Court Justices Don't Even Fade Away

There had been rumors out there that Former U.S. Supreme Court Justice Sandra Day O'Connor was sitting on panels of various Circuit Courts of Appeal. The rumors are true. And we are fortunate enough to have Justice O'Connor delivering opinions in our very own First Circuit.

Her decision in United States v. Novak, First Cir. No. 07-1826, is really interesting. The First Circuit was reviewing the trial court's decision to exclude recorded conversations between an attorney and a client. Writing for a unanimous panel, Justice O'Connor reversed the trial court's decision.

What is so interesting about this decision is that it's clear that Justice O'Connor didn't want to rule as she did. She is quite transparent in her belief that the recording of the conversations between an attorney and a client violates the Sixth Amendment to the U.S. Constitution. But the defendant had not relied upon a Sixth Amendment argument in the trial court; he'd used the Fourth Amendment protection against unreasonable searches and seizures and the trial court had agreed. And since we're engaged in what is at least nominally an adversarial process, the First Circuit didn't feel that it could step in for the defendant and make an argument that he, for some reason, had chosen not to make.

It all goes back to issue spotting in the end, doesn't it?