Category: 3-LawSometimeCommentary

On June 16, 2016, the Supreme Court decided Universal Health Services v. United States ex rel. Escobar. This case involves the federal False Claims Act, which allows a private party to bring a “qui tam” action alleging that the defendant defrauded the federal government. In a “qui tam” action the government remains the actual plaintiff, but the private party--referred to as the “Relator”--typically litigates the case for the government’s benefit and receives a specified share of any recovery. -- Here, Relators alleged that their daughter--who died of a seizure in 2009--was treated by various unlicensed and unsupervised staff at Arbour Counseling Services, a facility owned by Universal Health Services, in violation of Massachusetts regulations. They argued that Arbour's alleged noncompliance with various supervision and licensing requirements rendered its reimbursement claims submitted to the state Medicaid agency actionably false under both the federal and Massachusetts False Claims Acts. The district court dismissed the complaint for failure to state a claim, holding that regulatory noncompliance alone was inadequate to render Arbour’s reimbursement claims “false.” The U.S. Court of Appeals for the First Circuit, however, reversed that judgment and remanded the case. Compliance with the regulations at issue, the court concluded, was a condition of government reimbursement to Arbour. By submitting reimbursement claims, the Court reasoned, Arbour implicitly certified compliance with that condition. Thus, by pleading regulatory noncompliance Relators adequately pleaded falsity. -- By a vote of 8-0, the Supreme Court vacated the judgment of the First Circuit and remanded the case for further proceedings. In an opinion delivered by Justice Thomas, a unanimous Court agreed that the implied false certification theory can be a basis for liability under the False Claims Act--when a defendant submitting a claim makes specific representations about the goods or services provided, but fails to disclose non-compliance with material statutory, regulatory, or contractual requirements that make those representations misleading with respect to those goods or services. But liability under the False Claims Act for failing to disclose violations of legal requirements, the Court explained, does not turn upon whether those requirements were expressly designated as conditions of payment. What matters is not the label the Government attaches to a requirement, but whether the defendant knowingly violated a requirement that the defendant knows is material to the Government’s payment decision. -- To discuss the case, we have Richard A. Samp, who is Chief Counsel at Washington Legal Foundation.

On June 23, 2016, the Supreme Court decided United States v. Texas. This case relates back to the Department of Homeland Security’s (DHS) 2012 Deferred Action for Childhood Arrivals (DACA) program, which set forth special criteria to direct how DHS should exercise prosecutorial discretion in enforcing federal immigration laws against certain young persons. In 2014, DHS issued a memo that then expanded eligibility under DACA and directed establishment of a similar program for the parents of DACA-eligible persons: Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). -- Twenty-six states sued in federal district court to prevent the DHS from implementing DAPA, arguing that DAPA violated the Administrative Procedure Act (APA) because it had not gone through a notice-and-comment process, and was moreover arbitrary and capricious. The states also argued that DAPA abrogated the President’s constitutional duty to “take Care that the Laws be faithfully executed.” The district court concluded that of the suing states, Texas had standing, and temporarily enjoined implementation of DAPA after determining that Texas had shown a substantial likelihood of success on its notice-and-comment claim. The U.S. Court of Appeals for the Fifth Circuit affirmed that ruling, and further held that the other states had standing and has shown a substantial likelihood of success on both the notice-and-comment and arbitrary and capricious components of their APA claims. The Fifth Circuit did not reach the Take Care clause claim. -- The four questions before the Supreme Court in this case were: (1) whether a state that voluntarily provides a subsidy to all aliens with deferred action has Article III standing and a justiciable cause of action under the APA to challenge the Secretary of Homeland Security’s guidance seeking to establish a process for considering deferred action for certain aliens because it will lead to more aliens having deferred action; (2) whether the guidance is arbitrary and capricious or otherwise not in accordance with law; (3) whether the guidance was subject to the APA’s notice-and-comment procedures; and (4) whether the guidance violates the Take Care Clause of the Constitution, Article II, section 3--a question the Court itself directed the parties to brief. -- An equally divided Supreme Court affirmed the judgment of the Fifth Circuit in a single sentence per curiam opinion, thereby leaving the district court’s injunction in place. -- To discuss the case, we have Josh Blackman, who is Assistant Professor of Law at South Texas College of Law.

On June 27, 2016, the Supreme Court decided Whole Woman's Health v. Hellerstedt. Whole Woman’s Health and other Texas abortion providers sued Texas officials seeking declaratory and injunctive relief against a state law requiring that physicians who perform abortions have admitting privileges at a hospital within thirty miles of the location where the abortion is performed, and requiring that abortion facilities satisfy the standards set for ambulatory surgical centers (“ASC”s). The district court enjoined enforcement of both requirements “as applied to all women seeking a previability abortion,” and as applied to abortion facilities in McAllen and El Paso, but dismissed claims that the law violated equal protection and effected an unlawful delegation. -- The U.S. Court of Appeals for the Fifth Circuit affirmed dismissal of the equal protection and unlawful delegation claims, and affirmed but modified the injunction of the ASC and admitting privileges requirements as applied to the McAllen facility. The Court vacated the district court’s injunction of the admitting privileges requirement as applied to “all women seeking a previability abortion,” however, and reversed the injunction of the ASC requirement on its face (and in the context of medication abortion), as well as the injunction of the admitting privileges and ASC requirements as applied to the El Paso facility. As a result, the Texas law was to remain in effect statewide--except for the ASC requirement as applied to the Whole Woman’s Health abortion facility in McAllen, and the admitting privileges requirement as applied to a particular doctor when working at the McAllen facility. The U.S. Supreme Court, however, stayed issuance of the mandate on the Fifth Circuit’s judgment, ultimately reversing that judgment by a vote of 5-3 and remanding the case. -- Justice Breyer delivered the opinion of the Court, holding that petitioners’ constitutional claims were not barred by res judicata, and that both the admitting-privileges and the ambulatory surgical-center requirements placed a substantial obstacle in the path of women seeking a previability abortion, constituted an undue burden on abortion access, and violated the Constitution. Justice Breyer’s majority opinion was joined by Justices Kennedy, Ginsburg, Sotomayor, and Kagan. Justice Ginsburg filed a concurring opinion. Justice Thomas filed a dissenting opinion. Justice Alito filed a dissenting opinion, in which Chief Justice Roberts and Justice Thomas joined. -- To discuss the case, we have Roger Severino, who is Director, DeVos Center for Religion and Civil Society at The Heritage Foundation.

On June 27, 2016, the Supreme Court decided McDonnell v. United States. Robert F. McDonnell, former Governor of Virginia, was convicted in a jury trial of eleven counts of corruption. During the trial prosecutors sought to prove that McDonnell and his wife Maureen, while he was Governor, accepted money and lavish gifts in exchange for efforts to assist a Virginia company in securing state university testing of a dietary supplement the company had developed. The McDonnells, prosecutors argued, took “official action” on behalf of the company in exchange for money, campaign contributions, or other things of value, in violation of various federal statutes. Robert McDonnell was sentenced to two years in prison. The U.S. Court of Appeals for the Fourth Circuit affirmed McDonnell’s conviction, but the U.S. Supreme Court granted his request to remain out of prison pending resolution of his case. -- The question before the Supreme Court was whether “official action” under the controlling fraud statutes is limited to exercising actual governmental power, threatening to exercise such power, or pressuring others to exercise such power, and whether the jury must be so instructed; or, if not so limited, whether the Hobbs Act and honest-services fraud statute are unconstitutional. -- By a vote of 8-0, the Supreme Court vacated the judgment of the Fourth Circuit and remanded the case. Chief Justice Roberts delivered the opinion for a unanimous Court, holding that “an official act' is a decision or action on a 'question, matter, cause, suit, proceeding or controversy.' The 'question, matter, cause, suit, proceeding or controversy' must involve a formal exercise of governmental power that is similar in nature to a lawsuit before a court, a determination before an agency, or a hearing before a committee. It must also be something specific and focused that is 'pending' or 'may by law be brought' before a public official. To qualify as an 'official act,' the public official must make a decision or take an action on that 'question, matter, cause, suit, proceeding or controversy,' or agree to do so.” Given that the lower courts applied too broad an interpretation of the term “official act,” the Chief Justice explained, the jury instructions were erroneous and it may have convicted Governor McDonnell for conduct that was not unlawful. The Court therefore vacated his convictions and remanded the case for a determination as to whether there is sufficient evidence for a jury to convict Governor McDonnell of committing or agreeing to commit an “official act”--and thus allow for a new trial--or whether the charges against him must be dismissed. -- To discuss the case, we have Gregory G. Katsas, who is Partner at Jones Day.

On June 23, 2016, the Supreme Court decided Fisher v. Univ. of Texas at Austin. This is the second time the case has come before the high court. Abigail Fisher, a white female, applied for admission to the University of Texas at Austin (the University) but was denied. Fisher sued the University and argued that the use of race as a consideration in the admissions process violated the Equal Protection Clause of the Fourteenth Amendment. The district court held that the University’s admissions process was constitutional, and the U.S. Court of Appeals for the Fifth Circuit affirmed. The case went to the Supreme Court (Fisher I), which held that the appellate court erred in how it applied the strict scrutiny standard, improperly deferring to the University’s good faith in its use of racial classifications. On remand the Fifth Circuit again ruled in favor of the University, deeming its use of race in the admissions process narrowly tailored to a legitimate interest in achieving “the rich diversity that contributes to its academic mission.” -- On its second trip to the Supreme Court, the question was whether the Fifth Circuit’s re-endorsement of the University’s use of racial preferences could be sustained under the Equal Protection Clause. By a vote of 4-3, the Supreme Court affirmed the judgment of the Fifth Circuit. Justice Kennedy delivered the opinion of the court, which held that the race-conscious admissions program in use at the time of Fisher’s application was narrowly tailored and lawful under the Equal Protection Clause. Justice Kennedy’s majority opinion was joined by Justices Ginsburg, Breyer, and Sotomayor. Justice Thomas filed a dissenting opinion. Justice Alito also filed a dissenting opinion, in which Chief Justice Roberts and Justice Thomas joined. Justice Kagan took no part in the consideration or decision of the case. -- To discuss the case, we have Roger B. Clegg, who is President and General Counsel, Center for Equal Opportunity.

On June 20, 2016, the Supreme Court decided RJR Nabisco, Inc. v. The European Community. The European Community and 26 of its member states sued RJR Nabisco (RJR) in the U.S. District Court for the Eastern District of New York, alleging that RJR conducted a global money-laundering enterprise in violation of several laws, including the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal statute. The alleged RICO enterprise involved the importation of illegal drugs into European countries by Colombian and Russian criminal organizations, with RJR helping to launder their drug money through a cigarette import-purchase scheme. Applying a presumption against extraterritorial application of federal law, the district court dismissed The European Community’s civil RICO claim. The U.S. Court of Appeals for the Second Circuit vacated that judgment and reinstated the RICO claim, however, concluding that various alleged predicates for RICO liability had been intended by Congress to apply extraterritorially, and that other offenses asserted sufficiently important domestic activity to come within RICO’s coverage. RJR subsequently obtained a writ of certiorari from the U.S. Supreme Court on the following question: whether, or to what extent, RICO applies extraterritorially. -- By a vote of 4-3, the Supreme Court reversed the judgment of the Second Circuit and remanded the case. Justice Alito delivered the opinion of the Court, which determined that the question of RICO’s extraterritorial application really divides into two questions: (1) Do RICO’s substantive prohibitions, contained in §1962, apply to conduct that occurs in foreign countries? (2) Does RICO’s private right of action, contained in §1964(c), apply to injuries that are suffered in foreign countries? On the first question, the Court held that under the facts asserted in this case, RICO’s prohibitions did apply extraterritorially. On the second question, however, the Court held that §1964(c)’s private right of action did not overcome the presumption against extraterritoriality, and thus a private RICO plaintiff must allege and prove a domestic injury. Because in this case an earlier stipulation had resulted in waiver and dismissal of respondents’ domestic claims, the Court explained, their remaining RICO damages claims rest entirely on injury suffered abroad and must be dismissed. -- Justice Alito’s majority opinion was joined in full by the Chief Justice and Justices Kennedy and Thomas, and as to Parts I, II, and III by Justices Ginsburg, Breyer, and Kagan. Justice Ginsburg filed an opinion concurring in part, dissenting in part, and dissenting from the judgment, in which Justices Breyer and Kagan joined. Justice Breyer filed an opinion concurring in part, dissenting in part, and dissenting from the judgment. Justice Sotomayor took no part in the consideration or decision of the case. -- To discuss the case, we have Cory L. Andrews, who is senior litigation counsel for the Washington Legal Foundation.

On March 1, 2016, the Supreme Court decided Gobeille v. Liberty Mutual Insurance Company. -- Liberty Mutual Insurance Company (Liberty Mutual) operates a self-insured employee health plan through a third-party administrator. Vermont state law requires such plans to file with the State reports concerning claims data and certain other information. When Vermont subpoenaed claims data from Liberty Mutual’s third-party administrator, Liberty Mutual sued and argued that the federal Employment Retirement Income Security Act of 1974 (ERISA) preempted the Vermont statute. The district court found no preemption and ruled in favor of Vermont. On appeal a divided panel of the U.S. Court of Appeals for the Second Circuit reversed and held that ERISA preemption did apply. -- The question before the Supreme Court was whether the Second Circuit erred in holding that ERISA preempts Vermont's health care database law as applied to the third-party administrator for a self-funded ERISA plan. -- By a vote of 6-2, the Supreme Court affirmed the judgment of the Second Circuit. Justice Kennedy delivered the opinion of the Court, which held that ERISA’s express preemption clause requires invalidation of the Vermont reporting statute as applied to ERISA plans. Justice Kennedy’s majority opinion was joined by the Chief Justice and Justices Thomas, Breyer, Alito, and Kagan. Justices Thomas and Breyer also filed concurring opinions. Justice Ginsburg filed a dissenting opinion, in which Justice Sotomayor joined. -- To discuss the case, we have Joshua P. Ackerman, who is an Associate at Bartlit Beck Herman Palenchar & Scott LLP.

On June 13, 2016, the Supreme Court decided Halo Electronics v. Pulse Electronics, which was consolidated with Stryker Corp. v. Zimmer. Both of these cases involved claims of patent infringement relating to the sale or marketing of various inventions. Both also involved a determination by the U.S. Court of Appeals for the Federal Circuit that an award of enhanced damages for infringement under 35 U.S.C. § 284 was not appropriate, after applying the Circuit’s two-part objective/subjective test for willful or bad-faith infringement set forth in In re Seagate Tech., LLC. -- The question before the Supreme Court was whether the Federal Circuit’s refusal to allow enhanced damages absent a finding of willfulness under its two-part test was inconsistent with § 284, which provides that in a case of infringement, courts “may increase the damages up to three times the amount found or assessed.” -- By a vote of 8-0, the Supreme Court vacated the Federal Circuit’s judgment and remanded the case. Chief Justice Roberts delivered the opinion for a unanimous Court, which held that the Federal Circuit’s Seagate test unduly confined the ability of district courts to exercise the discretion conferred on them by § 284. Justice Breyer filed a concurring opinion in which Justices Kennedy and Alito joined. -- To discuss the case, we have Gregory Dolin who is Associate Professor of Law and Co-Director, Center for Medicine and Law at University of Baltimore School of Law.

On Monday, the Supreme Court invalidated two provisions of Texas’ omnibus abortion law known as HB2. The 5-3 decision in Whole Woman’s Health v. Hellerstedt was a big win for abortion rights advocates, many of whom expected things to turn out the other way. On today’s show, we speak with Amy Hagstrom Miller, founder and CEO of the abortion provider that challenged the Texas law. We also sit down with Slate’s own Mark Joseph Stern to recap the highlights – and lowlights – of one a Supreme Court term that was chock-full of unexpected twists and turns.  

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Marriage equality. Voting Rights. Obamacare. These are among the many enormously consequential causes that have fallen to Donald Verrilli to defend at the Supreme Court over the past five years. On this week’s episode, he looks back on some of the highlights – and lowlights – of his term as U.S. Solicitor General. We’re also joined by Sherrilyn Ifill, President of the NAACP Legal Defense Fund, to discuss this week’s big affirmative action win at the Supreme Court. Many court-watchers were surprised by Justice Anthony Kennedy’s vote in Fisher v University of Texas, but not Ifill. She tells us why. Transcripts of Amicus are available to Slate Plus members. Consider signing up today! Members get bonus segments, exclusive member-only podcasts, and more. Sign up for a free trial today here. 

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