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Justia Weekly Opinion Summaries

Business Law
January 10, 2020

Table of Contents

Johnson v. Morales

Business Law, Civil Rights, Constitutional Law, Government & Administrative Law

US Court of Appeals for the Sixth Circuit

Dental Dynamics v. Jolly Dental Group

Business Law, Civil Procedure, Contracts

US Court of Appeals for the Tenth Circuit

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Business Law Opinions

Johnson v. Morales

Court: US Court of Appeals for the Sixth Circuit

Docket: 17-2519

Opinion Date: January 7, 2020

Judge: Nalbandian

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

Johnson rented her restaurant to a private party. For unknown reasons, individuals unaffiliated with her or the party emerged from a vehicle that night and shot at the restaurant. Police were called during the shooting but never apprehended the shooters. Less than two days later, Saginaw City Manager Morales issued Johnson a notice ordering the suspension of all business activity related to her restaurant under an ordinance that permits such suspensions “in the interest of the public health, morals, safety, or welfare[.]” There was hearing three days later. More than two months after the hearing, Human Resources Director Jordan upheld the suspension. Johnson filed suit with a motion for a temporary restraining order and, alternatively, a motion for a preliminary injunction to prevent Morales from sitting on the appeal panel expected to review Jordan’s decision. The district court denied that motion. The appeal panel, which did not include Morales, held a hearing and affirmed Jordan’s decision upholding the suspension. The Sixth Circuit reversed, in part, the dismissal of Johnson’s burden-shifting, substantive due process, and equal-protection claims. Johnson adequately alleged selective enforcement and pled that the city lacked a rational basis to suspend her license. Johnson has plausibly alleged that the procedures afforded to Johnson fell short of constitutional requirements.

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Dental Dynamics v. Jolly Dental Group

Court: US Court of Appeals for the Tenth Circuit

Docket: 18-6107

Opinion Date: January 9, 2020

Judge: Timothy M. Tymkovich

Areas of Law: Business Law, Civil Procedure, Contracts

At issue in this case was whether a federal court sitting in Oklahoma had specific jurisdiction over Dr. Scott Jolly, a dentist and Arkansas resident, and his Limited Liability practice, Jolly Dental Group, LLC. Dental Dynamics, LLC argued that three isolated business transactions and an allegedly fraudulent contract were sufficient to establish federal court jurisdiction over its breach of contract and fraud claims. The Tenth Circuit disagreed, finding Jolly Dental's contacts with Oklahoma were "too random, fortuitous, and attenuated" to establish personal jurisdiction there. With respect to Denta; Dynamics' fraud claim, the Court concluded Dental Dynamics failed to show conduct sufficiently targeted to Oklahoma to establish personal jurisdiction there.

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