Does enforcing a workplace policy against dreadlocks amount to intentional racial discrimination against a black or African American job applicant? Despite the Equal Employment Opportunity Commission’s endorsement of that theory, the Eleventh Circuit rejected its argument yesterday in EEOC v. Catastrophe Management Solutions (CMS), 2016 WL 4916851 (11th Cir. Sept. 15, 2016). The EEOC brought…
Year: 2016
Civil RICO Class Action Dismissal Affirmed
A civil RICO class action challenging Spirit Airlines’ “Passenger Usage Fee” landed for a second time in the Eleventh Circuit and this time the airline fared better: the court affirmed the dismissal of the amended complaint in a major opinion on RICO pleading standards authored by Judge Stanley Marcus. Ray v. Spirit Airlines, Inc., 2016…
“Demonstrated Responsibility” under the Medicare Secondary Payer Act: A Contractual Obligation Suffices
In its second major Medicare Secondary Payer (“MSP”) Act decision in a month, the Eleventh Circuit held that an insurer’s contractual obligation, without a judgment or settlement, can provide the “demonstrated responsibility” necessary to allow a claim against the insurer for double damages under the Act. MSP Recovery, LLC v. Allstate Ins. Co., 2016 WL…
Eleventh Circuit Defers to National Park Service’s Wilderness Designation
The Eleventh Circuit has upheld a decision by the National Park Service (“NPS”) to designate certain federal lands in Florida as “wilderness.” Nat’l Parks Conservation Ass’n v. U.S. Dep’t of Interior, No. 14-15326 (11th Cir. Aug. 31, 2016). The NPS acquired approximately 112,400 acres of additional lands to add to the Big Cypress National Preserve…
Tribal Arbitration Agreement in Payday Loan Not Enforced
An arbitration provision in a payday loan agreement was held unenforceable because the provision’s exclusive designated arbitrator, the Cheyenne River Sioux Tribal Nation, was unavailable and no substitute could be appointed. Parm v. Nat’l Bank of Cal., N.A., 2016 WL 4501661 (11th Cir. Aug. 29, 2016) (Dubina, J.). The lender, Western Sky Financial, conceded that…
Eleventh Circuit Allows Extraterritorial Discovery for Foreign and International Disputes
28 U.S.C. § 1782 provides federal-court assistance in gathering evidence for use in foreign tribunals, but how far does its reach extend? In an opinion published on August 23, 2016, Sergeeva v. Tripleton International, 2016 WL 4435616, the Eleventh Circuit addressed the use of Section 1782 to achieve discovery of documents outside U.S. territorial limits and possessed by…
“Binding” External Benefit Determinations Might Not Bind Courts Under ERISA
Does ERISA preempt rules that give “binding” effect to benefit determinations made by a plan’s external review panel? Not as long as those determinations don’t actually bind courts, the Eleventh Circuit held in Alexandra H. v. Oxford Health Insurance Inc. Freedom Access Plan, 2016 WL 4361936 (11th Cir. Aug. 16, 2016). The plaintiff in the…
The Eleventh Circuit Delves into the “Murky” Waters Surrounding the U.S. Virgin Islands
For many years, the IRS has been aggressively auditing taxpayers who have filed income tax returns with the U.S. Virgin Islands (USVI) Bureau of Internal Revenue (VIBIR), claiming a 90% tax credit under the USVI Economic Development Program (EDP). The IRS has long believed that individuals are falsely claiming to be “bona fide” USVI residents…
Paymaster Is Not a Joint Employer Under Title VII or the Equal Pay Act
Companies with complex corporate structures or contractor relationships frequently face the threat of joint-employer liability under federal employment law. Just this year, the U.S. Department of Labor’s Wage and Hour Division issued guidance expansively interpreting the joint-employer doctrine under the Fair Labor Standards Act (“FLSA”) and the Migrant and Seasonal Agricultural Worker Protection Act, with…
Eleventh Circuit Declines to Wade into Clean Water Rule
The Eleventh Circuit has declined to decide a case it held to be entirely duplicative of a challenge to the EPA’s and Army Corps of Engineers’ Clean Water Rule making its way through the Sixth Circuit. The plaintiffs in Georgia ex rel. Olens v. McCarthy, 2016 WL 4363130 (11th Cir. Aug. 16, 2016), filed a…