Latest 3 Cases: Vizaline, LLC v. Tracy (Civil Rights), United States ex rel. Drummond v. BestCare Laboratory Services, LLC (Government Contracts), ...

Two Constitutional Lessons Worth Remembering: Norms Are Different From Legal Rules; And Improper Intent Matters But Is Hard To Establish

VIKRAM DAVID AMAR

Illinois law dean and professor Vikram David Amar comments on the controversy surrounding President Trump’s tweets about the sentencing of Roger Stone, addressing the important differences between norms and legal rules. Amar points out that the motive underlying such presidential decisions is ultimately what determines whether the action is improper—and that such motives are notoriously difficult to establish.

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Vizaline, LLC v. Tracy

Docket: 19-60053

Opinion Date: February 14, 2020

Judge: Stuart Kyle Duncan

Areas of Law: Civil Rights, Constitutional Law

The Mississippi Board of Licensure for Professional Engineers and Surveyors filed suit against Vizaline to enjoin its business and disgorge its profits. Vizaline then filed suit against the Board, alleging that as applied to its practice, Mississippi's surveyor-licensing requirements violate the First Amendment. The district court dismissed Vizaline's suit. The Fifth Circuit reversed, holding that the district court's ruling -- that Mississippi's licensing requirements for surveyors do not trigger any First Amendment scrutiny -- was inconsistent with the Supreme Court's recent decision in Nat'l Inst. of Family & Life Advocates v. Becerra [NIFLA], 138 S. Ct. 2361, 2375 (2018). NIFLA disavowed the notion that occupational-licensing regulations are exempt from First Amendment scrutiny. Therefore, the district court erred by categorically exempting occupational-licensing requirements from First Amendment scrutiny. The court remanded for further proceedings.

United States ex rel. Drummond v. BestCare Laboratory Services, LLC

Docket: 18-20501

Opinion Date: February 17, 2020

Judge: Oldham

Areas of Law: Government Contracts

The Fifth Circuit affirmed the district court's grant of summary judgment to the United States in a False Claims Act (FCA) suit alleging that BestCare obtained millions of dollars in reimbursements from Medicare for miles that its technicians never traveled. The court held that the district court did not err in granting the Government's motions for summary judgment where BestCare violated the Medicare statute's limitations on travel reimbursements. Furthermore, the court rejected BestCare's alternative argument that their good-faith reliance on the CMS Manual created a genuine dispute about whether they had the requisite mental state to violate the FCA. Because the court affirmed the $30.6 million award under the FCA, defendant's challenge to the $10.6 million award was moot. Finally, the district court did not err in holding Defendant Maghareh jointly and severally liable, and defendants' claim that the district court should be recused under 28 U.S.C. 455 lacked merit.

Faludi v. U.S. Shale Solutions, LLC

Docket: 17-20808

Opinion Date: February 14, 2020

Judge: Jennifer Walker Elrod

Areas of Law: Labor & Employment Law

The Fifth Circuit withdrew its prior opinion and substituted the following opinion. This case arose when plaintiff, a former practicing attorney, filed suit under the Fair Labor Standards Act (FLSA), seeking to recover unpaid overtime wages. The district court held that genuine issues of material fact remained regarding plaintiff's independent contractor status. The Fifth Circuit affirmed the district court's grant of summary judgment in favor of plaintiff's former employer on a different basis. The court held that the FLSA did not apply to plaintiff, because the undisputed facts weigh in favor of plaintiff being an independent contractor. However, because the district court did not state its reasons for declining to award costs to the prevailing party, the court vacated the award of costs and remanded the issue to the district court.