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Justia Daily Opinion Summaries

US Court of Appeals for the Third Circuit
September 19, 2020

Table of Contents

In re: Allergan ERISA Litigation

Antitrust & Trade Regulation, ERISA

Porter v. City of Philadelphia

Civil Rights, Constitutional Law, Government & Administrative Law

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Legal Analysis and Commentary

What About the Bar Exam After the 2020 Dust Settles?

VIKRAM DAVID AMAR

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Illinois law dean and professor Vikram David Amar comments on some of the questions commentators and analysts are, or will soon be, asking—specifically why we have bar exams for legal licensure, and, assuming we retain them, what they should look like going forward. Amar observes the limitations of the so-called diploma privilege advocated by some and suggests that states adopt greater interstate uniformity in their bar exams, shift toward more performance (as opposed to memorization) exams, and move away from being so time pressured.

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US Court of Appeals for the Third Circuit Opinions

In re: Allergan ERISA Litigation

Docket: 18-2729

Opinion Date: September 18, 2020

Judge: Jordan

Areas of Law: Antitrust & Trade Regulation, ERISA

The plaintiffs are participants in the Allergan Savings and Investment Plan, which provides various investment options, including an employee stock ownership feature for buying Allergan stock. According to the plaintiffs, the defendants were Plan fiduciaries and owed them commensurate duties under the Employee Retirement Income Security Act (ERISA). They claim that, although the public was unaware, the defendants knew or should have known that, before the divestiture of its generic-drug business, Allergan had conspired with other generic-drug manufacturers to fix prices, thereby artificially boosting its financial performance and its stock price. The plaintiffs cited inquiries from members of Congress and the Antitrust Division of the Department of Justice, seeking information about large price increases in certain generic drugs. The plaintiffs do not allege that Allergan was ever charged in connection with the investigation but claim that the defendants’ failure to remove Allergan stock as a Plan investment option or otherwise take action to protect Plan participants, violated ERISA. The Third Circuit affirmed the dismissal of the complaint. Even viewed in the light most favorable to the plaintiffs, the well-pled factual allegations fail to support a plausible inference that Allergan conspired with competitors to fix prices. Because all of the plaintiffs’ causes of action ultimately rest on the premise that the defendants knew or should have known about that supposed illegal conduct, the absence of allegations sufficient to support the existence of it is fatal to each of their claims.

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Porter v. City of Philadelphia

Docket: 18-3105

Opinion Date: September 18, 2020

Judge: Theodore Alexander McKee

Areas of Law: Civil Rights, Constitutional Law, Government & Administrative Law

Porter co-owned property with a partner. His wife, Debra, held an unrecorded $2.8 million mortgage on the property. Unbeknownst to Porter, his partner obtained a second mortgage on the property from Commerce. That mortgage went into default. The property was listed at a mortgage foreclosure sheriff’s sale. The Porters filed lawsuits before the sale. A Pennsylvania court awarded Debra damages for the title company’s failure to record her mortgage but declined to have it retroactively recorded and denied a motion to postpone the sale. A federal declaratory judgment action, claiming that Debra’s unrecorded mortgage had priority over Commerce’s mortgage, was still pending. Porter contacted the Sheriff’s Office before the sale and sought Commerce’s assurance that it would inform bidders about the pending lawsuit. Commerce’s attorney never arrived at the sale, so when the property came up for sale, Porter stood up to make the announcement. Sheriff’s Office attorney Chew and Deputy Stewart ordered him to stop speaking. They put Porter in a chokehold, placed him in handcuffs, and dragged him from the room. Porter and a deputy required medical attention. Porter was convicted of misdemeanor resisting arrest. On Porter's s Monell claim against Philadelphia based upon its unwritten policy of not allowing non-bidders to comment at a sheriff’s sales, the jury awarded him $750,000. The Third Circuit vacated the judgment. Chew’s unendorsed actions did not become municipal policy. There is no evidence that municipal decision-makers were aware of Chew’s inconsistent implementation of the no-comment policy or that Chew had previously used force to enforce it. Because the sheriff’s sale is a nonpublic forum, the Sheriff’s Office policy prohibiting comments is valid; it is viewpoint neutral and reasonable in light of the city’s right to preserve the property under its control for the use to which it is lawfully dedicated.

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