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Supreme Court rules for nursing home patient’s family
Class Action News |
2023/06/28 17:08
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The Supreme Court on Thursday ruled for the family of a nursing home resident with dementia that had sued over his care, declining to use the case to broadly limit the right to sue government workers.
The man’s family went to court alleging that he was given drugs to keep him easier to manage in violation of his rights. The justices had been asked to use his case to limit the ability of people to use a federal law to sue for civil rights violations. That outcome could have left tens of millions of people participating in federal programs, including Medicare and Medicaid, without an avenue to go to court to enforce their rights.
The Supreme Court has previously said that a section of federal law — “Section 1983” — broadly gives people the right to sue state and local governments when their employees violate rights created by any federal statute.
The court by a 7-2 vote reiterated that Thursday, with Justice Ketanji Brown Jackson writing that Section 1983 “can presumptively be used to enforce unambiguously conferred federal individual rights.” Both liberal and conservative justices joined her majority opinion while conservative Justices Clarence Thomas and Samuel Alito dissented.
The court had been asked to say that when Congress creates a federal spending program — giving states money to provide services such as Medicare and Medicaid — they shouldn’t face lawsuits from individuals under Section 1983. The court rejected that invitation.
The specific case the justices heard involves the interaction of Section 1983 and the Federal Nursing Home Reform Act, a 1987 law that outlines requirements for nursing homes that accept federal Medicare and Medicaid funds. The court was being asked to answer whether a person can use Section 1983 to go to court with claims their rights under the nursing home act are violated. The answer is yes, the court said. |
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Court upholds judge’s finding that Tesla acquisition of Solar City was fair
Class Action News |
2023/06/06 16:59
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Delaware’s Supreme Court has upheld a judge’s decision in favor of Tesla CEO Elon Musk in a lawsuit challenging the electric car maker’s $2.4 billion acquisition of a solar panel company founded by two of his cousins.
The court on Tuesday rejected arguments from a group of Tesla shareholders that a Chancery Court judge erred in finding that Tesla’s deal to acquire SolarCity in 2016 was “entirely fair.” The judge made that determination even while finding that the process by which Tesla’s board of directors negotiated and recommended the deal to shareholders was “far from perfect.”
While noting errors in the trial court’s fair price analysis, and agreeing that the deal process was not “pitch perfect,” the justices said the record is replete with factual findings and credibility determinations indicating that the acquisition was “entirely fair.”
“We are convinced, after a thorough review of the extensive trial record, that the trial court’s decision is supported by the evidence and that the court committed no reversible error in applying the entire fairness test,” Justice Karen Valihura wrote in the court’s 106-page opinion.
Typically, under Delaware’s “business judgment” rule, courts give deference to a corporate board’s decision-making unless there is evidence that directors had conflicts or acted in bad faith. If a plaintiff can overcome the business judgment rule’s presumption because the deal involved a controlling shareholder or because directors might have been conflicted, the board’s action is subject to an “entire fairness” analysis. That shifts the burden to the corporation to show that the deal involved both fair dealing and fair price.
At the time of the acquisition, Musk owned about 22% of Tesla’s common stock and was the largest stockholder of SolarCity, as well as chairman of its board of directors.
The justices concluded that the findings by former Vice Chancellor Joseph Slights III, which were not challenged by the shareholders, support the conclusion that the overall deal process was the product of fair dealing. The Supreme Court also said that, while Slights failed to explain why and how he relied on Solar City’s stock price on the day the deal was announced, rather than the lower price on the day the deal closed, his fair price analysis did not amount to reversible error.
“The Court of Chancery, after examining all of the expert testimony and fair price evidence, found that the fair price case was not even close,” Valihiura noted.
An attorney for the shareholders argued in March that the Chancery Court judge put too much emphasis on the price Tesla paid for SolarCity, and not enough on the deal process, which the plaintiffs contend was tainted by the failure to appoint an independent committee to negotiate the deal. He also argued that the judge’s analysis of the deal price was flawed and that shareholders who voted to approve the deal were not properly informed, even though the vote was not required under Delaware law. |
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Wisconsin Supreme Court control, abortion access at stake
Class Action News |
2023/04/04 11:07
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Control of the Wisconsin Supreme Court, and likely the future of abortion access, Republican-drawn legislative maps and years of GOP policies in the key swing state rests with the outcome an election Tuesday that has seen record campaign spending.
The winner of the high-stakes contest between Republican-backed Dan Kelly and Democratic-supported Janet Protasiewicz will determine majority control of the court headed into the 2024 presidential election. The court came within one vote of overturning President Joe Biden’s narrow win in 2020, and both sides expect another close race in 2024.
It’s the latest election where abortion rights has been the central issue since the Supreme Court overturned Roe v. Wade last June. It’s also an example of how officially nonpartisan court races have grown into political battles as major legal fights play out at the state level.
All of it has fueled spending that will double, and likely triple or more, the previous high of $15.4 million spent on a state court race in Illinois in 2004. Democrats have spent heavily for Protasiewicz and Republicans for Kelly.
Democrats are trying to flip control of the court, which has had a majority of conservative justices the past 15 years. That has allowed the court to uphold an array of Republican priorities, including banning absentee ballot drop boxes last year and affirming the 2011 law all-but ending collective bargaining for most public workers. |
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Federal appeals court strikes down domestic violence gun law
Class Action News |
2023/02/03 18:21
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A federal appeals court ruled Thursday that the government can’t stop people who have domestic violence restraining orders against them from owning guns — the latest domino to fall after the U.S. Supreme Court’s conservative majority set new standards for reviewing the nation’s gun laws.
Police in Texas found a rifle and a pistol at the home of a man who was the subject of a civil protective order that banned him from harassing, stalking or threatening his ex-girlfriend and their child. The order also banned him from having guns.
A federal grand jury indicted the man, who pled guilty. He later challenged his indictment, arguing the law that prevented him from owning a gun was unconstitutional. At first, a federal appeals court ruled against him, saying that it was more important for society to keep guns out of the hands of people accused of domestic violence than it was to protect a person’s individual right to own a gun.
But then last year, the U.S. Supreme Court issued a new ruling in a case known as New York State Rifle & Pistol Association v. Bruen. That case set new standards for interpreting the Second Amendment by saying the government had to justify gun control laws by showing they are “consistent with the Nation’s historical tradition of firearm regulation.”
The appeals court withdrew its original decision and on Thursday decided to vacate the man’s conviction and ruled the federal law banning people subject to domestic violence restraining orders from owning guns was unconstitutional.
Specifically, the court ruled that the federal law was an “outlier that our ancestors would never have accepted” — borrowing a quote from the Bruen decision.
The decision came from a three-judge panel consisting of Judges Cory Wilson, James Ho and Edith Jones. Wilson and Ho were nominated by former Republican President Donald Trump, while Jones was nominated by former Republican President Ronald Reagan.
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Justices spar in latest clash of religion and gay rights
Class Action News |
2022/12/02 15:24
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The Supreme Court ’s conservative majority sounded sympathetic Monday to a Christian graphic artist who objects to designing wedding websites for gay couples, a dispute that’s the latest clash of religion and gay rights to land at the highest court.
The designer and her supporters say that ruling against her would force artists — from painters and photographers to writers and musicians — to do work that is against their faith. Her opponents, meanwhile, say that if she wins, a range of businesses will be able to discriminate, refusing to serve Black customers, Jewish or Muslim people, interracial or interfaith couples or immigrants, among others.
The lively arguments at the Supreme Court ran well beyond the allotted 70 minutes.
Justice Neil Gorsuch, one of three high court appointees of former President Donald Trump, described Lorie Smith, the website designer, as “an individual who says she will sell and does sell to everyone, all manner of websites, (but) that she won’t sell a website that requires her to express a view about marriage that she finds offensive.”
The issue of where to draw the line dominated the questions early in Monday’s arguments at the high court.
Justice Ketanji Brown Jackson asked whether a photography store in a shopping mall could refuse to take pictures of Black people on Santa’s lap.
“Their policy is that only white children can be photographed with Santa in this way, because that’s how they view the scenes with Santa that they’re trying to depict,” Jackson said.
Justice Sonia Sotomayor repeatedly pressed Kristen Waggoner, the lawyer for Smith, over other categories. “How about people who don’t believe in interracial marriage? Or about people who don’t believe that disabled people should get married? Where’s the line?” Sotomayor asked.
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Hong Kong asks Beijing to step in into row over UK lawyer
Class Action News |
2022/11/28 18:20
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Hong Kong’s leader said on Monday he will ask Beijing to rule whether to let foreign lawyers be involved in national security cases after the city’s top court allowed a prominent pro-democracy publisher to hire a British lawyer for his upcoming trial.
John Lee said the government would ask for a postponement of Jimmy Lai’s high-profile trial that was due to start Thursday. But he did not offer a timetable for the interpretation that could effectively preempt the court judgment.
“At present, there is no effective means to ensure that a counsel from overseas will not have conflict of interest because of his nationality. And there is also no means to ensure that he has not been coerced, compromised, or in any way controlled by foreign governments, associations or persons,” he said.
The move was targeting overseas counsels who do not have the general practice qualification to carry out legal service in Hong Kong, he added.
Lai, the founder of the now-defunct Apple Daily and one of the most prominent figures in the city’s pro-democracy movement, was arrested after Beijing imposed a tough national security law to crack down on dissent following widespread protests in 2019. He faces collusion charges and a maximum penalty of life imprisonment.
While the city’s secretary for justice was appealing an earlier ruling that approved Lai to hire a veteran British lawyer at the top court, pro-Beijing politicians and newspapers also voiced objections over the last few days.
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