Complex Lit Blog

Removal — § 1441 Does Not Permit Removal of Proceeding in State Agency, Only from State Courts — Circuit Split

Smith v. Detroit Entm’t, LLC, 919 F. Supp. 2d 883 (E.D. Mich. 2013): Section 28 U.S.C. §1441 provides that "any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant . . . ." 28 U.S.C. § 1441(a). The magistrate judge determined tha ...

Smith v. Detroit Entm’t, LLC, 919 F. Supp. 2d 883 (E.D. Mich. 2013): Section 28 U.S.C. §1441 provides that “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may…

Challenge to Constitutional Authority of Bankruptcy Court to Enter a Final Judgment on a State-Law Claim under Stern v. Marshall under Article III § 1 Is Not Waivable — Circuit Split

Wellness Int’l Network, Ltd. v. Sharif, 2013 U.S. App. LEXIS 17553 (7th Cir. Aug. 21, 2013): This appeal is the most recent chapter in a decade-long saga spanning two circuits involving the debtor, Richard Sharif, and his judgment creditors, Wellness International Network, Ltd., Ralph Oats, and Cathy Oats (collectively, "WIN"). After ...

§ 1983 Conspiracy Claims — Does the Intracorporate Conspiracy Doctrine Apply? — Personal Bias Exception

Drager v. Village of Bellwood, 2013 U.S. Dist. LEXIS 119557 (N.D. Ill. Aug. 22, 2013): Defendants next argue that Plaintiff's conspiracy claim is barred under the "intra-corporate" conspiracy doctrine, which holds that a conspiracy cannot exist solely between members of the same entity. Mnyofu v. Bd. of Educ. of Rich Twp. High Sch. Dis ...

Drager v. Village of Bellwood, 2013 U.S. Dist. LEXIS 119557 (N.D. Ill. Aug. 22, 2013): Defendants next argue that Plaintiff’s conspiracy claim is barred under the “intra-corporate” conspiracy doctrine, which holds that a conspiracy cannot exist solely between members of…

What Is “Extraneous Evidence” within Rule 606(b), That a Juror May Attest to, to Impeach a Verdict? — May Juror Testimony about Dishonesty during Voir Dire Be Used to Impeach a Verdict? Circuit Split

Warger v. Shauers, 721 F.3d 606 (8th Cir. 2013): Gregory Warger sued Randy Shauers to recover for injuries he sustained during a traffic accident. After a mistrial, the jury returned a verdict for Shauers. Warger subsequently moved for judgment as a matter of law, or, in the alternative, for a new trial. The district court denied his m ...

Puffery in Settlement Negotiations — Statements Regarding Damages Made in the Context of Settlement May Not Reliably Be Treated as Accurate Factual Representations (Good Quotes)

Richmond v. Gen. Nutrition Centers, Inc., No. 08 Civ. 3577 (PAE)(HBP), 2012 WL 762307 (S.D.N.Y. Mar. 9, 2012): [T]he context of a settlement discussion, by its nature, is not one in which counsel's oral statement or demand may reliably be treated as an accurate factual representation. A settlement discussion is a negotiation, and a ...

Sovereign Immunity Bars an Inherent Power Monetary Sanction Against the Government — Lingering Question Whether Inherent Power Sanctions May Be Imposed in Criminal Cases

United States v. Droganes, 2013 U.S. App. LEXIS 17819 (6th Cir. Aug. 27, 2013): This case arises from a longstanding dispute between Sam Droganes and the United States Government. Droganes is a fireworks dealer in northern Kentucky. In 2007, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) raided his business on ...

Spoliation — Attorneys’ Fees But No Adverse Inference Where Conduct Not Outrageous — Store Failed to Show Cameras Were Not Trained on Accident Spot — Summary Judgment Granted to Spoliator

Matteo v. Kohl’s Dep’t Stores, Inc., 2013 U.S. App. LEXIS 14094 (2d Cir. July 12, 2013): Zora Matteo appeals from the district court's March 6, 2012 order awarding summary judgment to defendants Kohl's Department Stores, Inc. and Kohl's Illinois, Inc. (collectively, "Kohl's"), and denying her request for an adverse inference instruc ...

Matteo v. Kohl’s Dep’t Stores, Inc., 2013 U.S. App. LEXIS 14094 (2d Cir. July 12, 2013): Zora Matteo appeals from the district court’s March 6, 2012 order awarding summary judgment to defendants Kohl’s Department Stores, Inc. and Kohl’s Illinois, Inc.…

Fraudulent Joinder Requires More Than Mere Failure to State a Claim — Clear Legal Bar Needed — Dismissal Should Be Without Prejudice — Requirements for Case-Ending Sanctions (Third Circuit)

Hogan v. Raymond Corp., 2013 U.S. App. LEXIS 17282 (3d Cir. Aug. 20, 2013): We begin with this issue because it implicates the District Court's jurisdiction. See Boyer v. Snap-On Tools Corp., 913 F.2d 108, 110 (3d Cir. 1990). The fraudulent joinder doctrine permits courts to ignore the citizenship of a non-diverse defendant for diversit ...

Hogan v. Raymond Corp., 2013 U.S. App. LEXIS 17282 (3d Cir. Aug. 20, 2013): We begin with this issue because it implicates the District Court’s jurisdiction. See Boyer v. Snap-On Tools Corp., 913 F.2d 108, 110 (3d Cir. 1990). The…

Erie Doctrine — In Predicting How a State Supreme Court Would Interpret a State Statute, Federal Court Is Bound by State Rules of Statutory Construction and Considers State Supreme Court’s “Considered Dicta”

JPMorgan Chase Bank, N.A. v. Peeks, 719 F.3d 1010 8th Cir. 2013): In these consolidated cases, we consider whether a national banking association chartered by the Office of the Comptroller of the Currency but not registered to do business with the Arkansas Secretary of State or the Arkansas Bank Department may use the non-judicial forec ...

RICO Claim Based on Underpayment of Wages Cannot Be Predicated on Pay Stubs That Reveal, Not Promote, the Fraud — Error to Prevent Motion to Amend by Immediate Entry of Judgment on Dismissal of Complaint

Nakahata v. N.Y. -Presbyterian Healthcare Sys., Inc., Nos. 11-0734, 11-0710, 11-0713, 11-0728 (2d Cir. July 11, 2013): ***Plaintiffs -- current and former healthcare employees -- allege that the Defendants -- healthcare systems, hospitals, corporate heads, and affiliated entities -- violated the Fair Labor Standards Act ("FLSA"), New Yo ...

Nakahata v. N.Y. -Presbyterian Healthcare Sys., Inc., Nos. 11-0734, 11-0710, 11-0713, 11-0728 (2d Cir. July 11, 2013): ***Plaintiffs — current and former healthcare employees — allege that the Defendants — healthcare systems, hospitals, corporate heads, and affiliated entities — violated…

Commercial Litigation and Arbitration

Removal — § 1441 Does Not Permit Removal of Proceeding in State Agency, Only from State Courts — Circuit Split

Challenge to Constitutional Authority of Bankruptcy Court to Enter a Final Judgment on a State-Law Claim under Stern v. Marshall under Article III § 1 Is Not Waivable — Circuit Split

§ 1983 Conspiracy Claims — Does the Intracorporate Conspiracy Doctrine Apply? — Personal Bias Exception

What Is “Extraneous Evidence” within Rule 606(b), That a Juror May Attest to, to Impeach a Verdict? — May Juror Testimony about Dishonesty during Voir Dire Be Used to Impeach a Verdict? Circuit Split

Puffery in Settlement Negotiations — Statements Regarding Damages Made in the Context of Settlement May Not Reliably Be Treated as Accurate Factual Representations (Good Quotes)

Sovereign Immunity Bars an Inherent Power Monetary Sanction Against the Government — Lingering Question Whether Inherent Power Sanctions May Be Imposed in Criminal Cases

Spoliation — Attorneys’ Fees But No Adverse Inference Where Conduct Not Outrageous — Store Failed to Show Cameras Were Not Trained on Accident Spot — Summary Judgment Granted to Spoliator

Fraudulent Joinder Requires More Than Mere Failure to State a Claim — Clear Legal Bar Needed — Dismissal Should Be Without Prejudice — Requirements for Case-Ending Sanctions (Third Circuit)

Erie Doctrine — In Predicting How a State Supreme Court Would Interpret a State Statute, Federal Court Is Bound by State Rules of Statutory Construction and Considers State Supreme Court’s “Considered Dicta”

RICO Claim Based on Underpayment of Wages Cannot Be Predicated on Pay Stubs That Reveal, Not Promote, the Fraud — Error to Prevent Motion to Amend by Immediate Entry of Judgment on Dismissal of Complaint

Recent Posts

RICO: Indirect Injury Unrecoverable — Indirect Purchaser Rule Imported from Antitrust

RICO: No Causation Where Harm Flowed Several Steps After the Fraudulent Acts — RICO Causation Same As Antitrust Causation

Sanctions vs. Automatic Stay: Imposition of Sanctions (Here, Inherent Power Sanctions) Is Subject to the Police Power Exception to the Automatic Stay in Bankruptcy

The Word “Include” May Be A Word of Limitation As Opposed to a Word of Enlargement, Depending on the Context

Spoliation/Sanctions: “A Party Does Not Spoliate Evidence When, Without Notice Of The Evidence’s Potential Relevance, It Destroys The Evidence According To Its Policy Or In The Normal Course Of Its Business” (Good Quote)

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