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Allegations of Gender Discrimination Were Undermined

Plaintiff’s Allegations of Gender Discrimination Were Undermined by Defendant’s Efforts to Improve Her Work Performance.
In a recent opinion, the United States District Court for the Northern District of West Virginia held that the plaintiff did not adduce evidence sufficient to establish her various claims relating to workplace discrimination and retaliatory discharge.  Plaintiff was hired by Defendant as a warehouse manager in 2009.  In 2011, her supervisors became concerned by certain aspects of her job performance, including improper maintenance of the warehouse, untimely responses to inquiries by employees and clients, and inaccurate inventory packing for customer deliveries.  As a result, her supervisors implemented a Performance Improvement Plan, and counseled her approximately twenty (20) times over the next thirteen (13) months regarding her performance.  When her performance did not improve by February 2013, Defendant fired Plaintiff.

Plaintiff brought suit against Defendant alleging: gender discrimination, retaliatory discharge, and hostile work environment.  She alleged that Defendant asked her to engage in questionable conduct with which she expressed disagreement, including refraining from listing employees with Driving Under the Influence (“DUI”) charges and not filing an incident report for a broken light bulb.  She also alleged that her supervisor yelled at her, referred to her as “sweetheart,” and assigned her secretarial tasks.  Furthermore, Plaintiff alleged that, one week before her termination, she contacted Defendant’s human resources manager and expressed that she felt harassed and disagreed with her supervisors’ assessments of her work performance.  The human resources manager informed her that she could file a complaint and that an investigation could be conducted, but Plaintiff never filed a formal complaint.

After discovery, Defendant moved for summary judgment, arguing that Plaintiff did not establish a prima facie case of gender discrimination, and even if she did, that Plaintiff was fired for a legitimate, nondiscriminatory reason, namely her deficient work performance.  Moreover, Defendant argued that Plaintiff’s retaliatory discharge claim was baseless because Plaintiff was fired over a year after she engaged in a protected activity, and that there was no proof of a hostile work environment. 

The District Court granted Defendant’s motion.  The Court concluded that Plaintiff did not establish a prima facie case of gender discrimination, as the record reflected that Defendant had approximately twenty (20) discussions with Plaintiff regarding her deficient performance in the thirteen (13) months preceding her discharge.  The Court stated: “It would be quite unusual for an employer engaging in discriminatory conduct to pursue such corrective and positive endeavors for the benefit of the plaintiff.”  Furthermore, even if Plaintiff had established a prima facie case, the record contained ample uncontradicted evidence demonstrating that Defendant had fired Plaintiff for the legitimate, nondiscriminatory reason that her work performance was deficient.  In so concluding, the Court noted that evidence that Plaintiff presented indicating that her coworkers thought she had done a good job was irrelevant, as it was only the perception of the decisionmaker, i.e., Plaintiff’s supervisors, which mattered in determining whether the employee’s work performance was adequate.

With respect to Plaintiff’s retaliatory discharge claim, the Court concluded that Plaintiff’s expressions of disagreement with Defendant regarding listing an employee with a DUI charge and not filing an incident report regarding a broken light bulb did not constitute protected activities sufficient to establish a claim for retaliatory discharge.  Even if they did, the expressions occurred over a year before Plaintiff was fired and were inconsequential in nature, which undermined any inference that her eventual discharge was related to the incidents.  Regarding Plaintiff’s conversation with the human resources manager, the Court concluded that merely talking with the manager did not constitute a protected activity where Plaintiff’s supervisors were unaware that the conversation had occurred at the time they fired Plaintiff.  Had Plaintiff actually filed a complaint for harassment, however, she may have been able to establish a prima facie case in this regard.

Finally, regarding Plaintiff’s claim that Defendant created a hostile work environment, the Court determined that Plaintiff’s allegations were “questionable at best” and unsupported by the evidence adduced in discovery.  Plaintiff’s coworkers never observed any instance of harassment as alleged by Plaintiff; and the work that Plaintiff was asked to do was no more “secretarial” than the work other managers did.  Moreover, Plaintiff’s discussion with the human resources manager involved feeling harassed as a result of her work performance, not her gender.  This crucial distinction undermined Plaintiff’s claim that Defendant fostered a work environment hostile to her because of her gender.  As a result, the Court granted Defendant’s motion for summary judgment as to all of Plaintiff’s claims.

Cacie Biddle v. Fairmont Supply Company (September 24, 2015)

United States District Court for the Northern District of West Virginia

Submitted By Marisa A. Trasatti and Matthew J. McCloskey, Semmes, Bowen & Semmes

Unusual Amicus Brief to the Volkswagen Emissions Scandal

Submitted by John W. Sinnott, Irwin Fritchie Urquhart & Moore LLC, New Orleans, Louisiana (@JohnWSinnott)

Litigation over the Volkswagen emissions scandal is still in its infancy. Well over 100 class actions have been filed, and multiple plaintiffs have filed motions with the Judicial Panel on Multidistrict Litigation seeking transfer to a single federal court. The panel will hear argument on those motions in December.

Settlement is inevitable at some point years down the road, but it's way too early to be talking about that now, right? Not if you're Ted Frank (@tedfrank), founder of the Center for Class Action Fairness (@ccaf). The CCAF "stands for the principles that settlement fairness requires that the primary beneficiary of a class-action settlement should be the class, rather than the attorneys or third parties; and that courts scrutinizing settlements should value them based on what the class actually receives, rather than on illusory measures of relief."

On October 20, 2015, the CCAF took the unusual step of filing an amicus brief with the JPML, arguing that the panel, in order to promote a just and efficient outcome, should transfer the Volkswagen "clean diesel" litigation to Judge Alsup in the Northern District of California due to his exceptional record in scrutinizing class action settlements. 28 U.S.C. § 1407 requires the Panel to consider whether transfer will "promote a just and efficient outcome." The brief points to the "feeding frenzy" of me-too filings by plaintiff attorneys eager to be appointed class counsel in a litigation "where the class is large (over 500,000 owners and lessees of affected vehicles); potential damages are in the billions or hundreds of millions; the defendant has already admitted some wrongdoing; and plaintiffs will be able to piggyback off of government investigations of Volkswagen's conduct."

CCAF asserts that settlement is the one critical area where plaintiffs' counsel and defendants have a "common but perverse interest" – "neither wishes the transferee court to closely scrutinize the class action settlements that will inevitably be reached." The problem, according to CCAF, is that plaintiffs' counsel and defendants do not want a transferee judge who will closely scrutinize a class action settlement, as doing so "will benefit absent class members at the expense of class counsel's fees and the defendants' attempt to minimize litigation expense." Judge Alsup in the Northern District of California has a unique track record of concern for absent class members and has already issued a pretrial order in a Volkswagen case pending before him that addresses the need for a class action settlement to avoid self-serving provisions that benefit class counsel at the expense of the class. On that basis, CCAT's amicus brief urges transfer to Judge Alsup.

CCAF's amicus brief is available at

In re Volkswagen "Clean Diesel" Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672.

Sleep on It

We’ve all dealt with opponents, and occasionally clients, who suffer from Keyboard Jerk Syndrome.  While they are often charming, personable and reasonable in face to face interaction, put them behind a keyboard and they lose that charm, that reasonableness and become difficult, confrontational and accusatory. 


It’s easy and quite emotionally satisfying to reply in kind, sending the e-mail equivalent of the universal road rage hand gesture.  It’s also a really bad idea.  E-mail encourages immediate responses.  It also is more casual and conversational in tone.  But, like the letters our predecessors sent, it lives a long time. 


So, how do you deal with Keyboard Jerk Syndrome without succumbing to it yourself? 


1.         It the message you received makes you mad, don’t write when you’re mad.  Wait.  My rule of thumb is to wait until the next day.  There is no rule of court, statute, or other requirement that everything be responded to immediately.  Take your time, because what you are drafting could well end up as an Exhibit to a motion, or even a trial exhibit. 


2.         If you have an emotional need to draft the “Jane, you ignorant slut” ( response leave the address and cc fields blank.  That way you won’t send it by accident.  Once you’ve vented, delete it.  Or, at a minimum leave it for the next day – you’ll be more calm and it won’t look very good. 


3.         Ask yourself, “Do I want a judge or jury to read this e-mail?” 


Stay calm.  It pays huge dividends.  

Insert Your Name Here and Share Your Expertise

Any Federation Member can contribute to this blog.  It’s easy and it’s a wonderful opportunity to increase your visibility. 

Studies indicate that professional visibility is a critical component of marketing and that writing is an excellent way to increase professional visibility.  No travel is necessary.  It can be done in your “spare” time, and it exposes you to people you’ve never met.

“But I have nothing to say.”  Hogwash.  How much time do you spend training and mentoring the less experienced lawyers in your firm?  Take one or two topics you discuss with those lawyers and turn them into a blog post.  Is there a recent case or procedural development in your state or practice area?  There are more subjects for discussion than any of us have time to write about.

“But, I’m not a tech person.”  Neither am I.  I’m a 57 year old lawyer with eye-rolling teenaged children.   Write something.  Then log into the website on the member side and select “Member Services” at the right end of the menu bar.  A row of tabs will appear.  The fifth one from the left (today) is “Submit a Blog Entry”  Give it a title.  Tell us whether it is Practice Tips (like this) or Substantive Law.  Paste the content into the big content window. Press the add entry button.  You’re done.  The FDCC staff will review it for appropriateness, and will then put it in a queue to be posted.  


On September 24, the Nevada Supreme Court adopted the “Cumis” independent counsel doctrine first adopted in California over 30 years ago.  In State Farm Mut. Auto. Ins. Co. v. Hansen, 131 Nev. Adv. Op. 74 (9/24/2015) the court held policyholders are entitled to independent defense counsel, at the insurer’s expense when the insurer’s reservation of rights creates an actual conflict of interest for defense counsel.  The court also agreed with California that not every reservation of rights creates a conflict of interest requiring independent counsel, thus requiring case by case analysis rather than adopting a per se conflict of interest rule. 

Nevada is a tripartite relationship state, where insurer-appointed defense counsel has two clients, the policyholder defendant and the liability insurer.  Under Nevada law, the appointed defense attorney represents both the policyholder and the insurer.  Nevada Yellow Cab Corp. v. Eighth Judicial Dist. Ct., 123 Nev. 44, 152 P.3d 737 (2007).  That dual representation was the key factor in the Nevada Supreme Court’s decision.  The court held “Because Nevada is a dual-representation state, counsel may not represent both the insurer and the insured when their interests conflict and no special exception applies.” 

The Nevada court then proceeded to examine what would a create a conflict of interest entitling the policyholder to independent defense counsel.  It concluded the insurer’s issuance of a reservation of rights did not per se create a conflict requiring independent counsel.  Instead, it held a case by case analysis was necessary because the purpose of the rule is to enforce attorney conflict of interest rules.  It thus tied the entitlement to independent counsel to whether defense counsel has an actual conflict of interest under Nevada’s Rule of Professional Conduct 1.7.  It explained “This means that there is no conflict of interest if the reservation of rights is based on coverage issues that are only extrinsic or ancillary to the issues actually litigated in the underlying action.” 

By declining to adopt a bright line rule regarding when a conflict necessitating independent counsel exists, and by using the Rules of Professional Conduct for attorneys as the standard, the Nevada Supreme Court has established a standard that may lead to more litigation and additional disputes.    In addition, because the rule is a common law one, much as Cumis was before it was modified and clarified by statute, there is no standard for what reasonable fees are for independent defense counsel, which is likely also to create more litigation.  

Courts May Review EEOC

Courts May Review Whether the EEOC Has Met Statutory Obligation to Conciliate Discrimination Claims. In Mach Mining, LLC v. EEOCNo. 13–1019 (Supreme Court of the United States, April 29, 2015), the Supreme Court held that the Equal Employment Opportunity Commission’s (“EEOC”) conciliation efforts may be judicially reviewed.

The employer (“Mach Mining”) was accused of sex-based discrimination in violation of Title VII of the Civil Rights Act of 1964. A female job applicant filed a complaint with the EEOC. After the EEOC found there was reasonable cause to believe the employer had discriminated against the applicant, they issued a letter inviting the parties to engage in informal conciliation and notified them that a representative of the EEOC would contact them to begin this process. The EEOC has a statutory requirement to conciliate and try to settle cases before initiating a lawsuit under Title VII. The employer claimed it did not hear back until the EEOC determined that conciliation efforts had failed. After a lawsuit was filed, the employer claimed the EEOC failed to make a good faith effort to engage in “informal methods of conference, conciliation, and persuasion,” as required by Title VII.

The question before the Supreme Court was whether the EEOC’s efforts to conciliate or settle discrimination claims under Title VII of the Civil Rights Act of 1964 were subject to judicial review. The district court found that the EEOC’s efforts were subject to judicial review. The Seventh Circuit reversed and found that the efforts were not subject to judicial review. The Supreme Court, in its 9-0 opinion, agreed with the district court and found that the EEOC’s efforts were subject to judicial review, and remanded the case for further proceedings. Thus, the Supreme Court has granted employers a way, albeit a limited way, of challenging and fighting suits filed by the EEOC.

The Supreme Court held that the scope of judicial review is narrow due to the “expansive discretion” given to the EEOC under Title VII. Moreover, because the statute does not expressly state that the agency has the power to police itself, there is a strong presumption in favor of judicial review. Ultimately, the review is to be “relatively barebones . . . enforcing only the EEOC’s statutory obligation to give the employer notice and an opportunity to achieve voluntary compliance.” Moreover, a sworn affidavit from the EEOC indicating that the agency has notified the employer of the specific allegation and allowed the employer the opportunity to remedy the alleged discriminatory practice, suffice to fulfill the EEOC’s obligations under Title VII. If an employer provides evidence that the EEOC either: (1) did not provide the requisite information about the charge; or (2) did not attempt to engage in a discussion about conciliating the claim, then the court may engage in judicial review. In the case where the EEOC does not meet these criteria, the relief would be to stay the proceeding while the agency meets its obligation to conciliate. Thus, the relief to employers is limited.

Mach Mining, LLC v. EEOC No. 13–1019 (Supreme Court of the United States, April 29, 2015)

available at:

Submitted by Marisa A. Trasatti and Nida Kanwal, Semmes, Bowen & Semmes

Claim revested through bankruptcy proceeding not subject to dismissal

On January 4, 2010, a car driven by Schlotzhauer was struck by a vehicle operated by Kevin Morton in the parking lot of a post office in Centreville, Maryland. Later that year, on October 6, 2010, Schlotzhauer filed a voluntary petition for Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Maryland, but failed to list the accident as a potential claim/asset or to request an exemption.  Her debts were discharged on January 19, 2011, and the bankruptcy proceeding was closed.   After the close of the bankruptcy proceeding, but before the three year statute of limitations, Schlotzhauer filed a personal injury claim against Morton and Uni-Select USA, Morton’s employer (herein jointly referred to as “Uni-Select”). 

After the close of discovery Uni-Select moved for summary judgment on the basis that Schlotzhauer did not have standing to assert her claim, as bankruptcy law had vested her bankruptcy trustee with the right to pursue the claim.  Schlotzhauer moved the bankruptcy court to reopen her matter so she could file amended schedules and to issue an order exempting her $1.5 million dollars personal injury claim from her assets.   While Uni-Select opposed the motion, the Court granted the relief and determined that the right to pursue the claim would revest with Schlotzhauer (31) days after the order.  At the same time, the Circuit Court, who was holding the matter sub curia until the resolution by the bankruptcy court, issued an order granting summary judgment on the basis of Schlotzhauer’s lack of standing.  Schlotzhauer petitioned the bankruptcy court to issue an order relating her right to the claim back to the date of filing of the original petition in 2010, and also filed a motion for the Circuit Court to reconsider their decision. Uni-Select opposed both motions, but the bankruptcy court found they had no standing and granted the relief.  In the Circuit Court, Uni-Select argued that Schlotzhauer had to file a new action because the present was a nullity, but that action would be barred by the statute of limitations.  The Circuit Court issued a pro forma denial of the motion for reconsideration. Schlotzhauer appealed the denial of her post-trial motions. 

The Court of Special Appeals addressed the question of whether the trial court erred in denying the motion for reconsideration of the order granting summary judgment.  In finding that the trial court did err, the Court noted that the trial court’s ruling on the motion for summary judgment was based on the fact that the bankruptcy court had not issued a determination on the status of the personal injury claim asset.  This was factually incorrect, as the bankruptcy court had recently issued its order, thereby re-vesting Schlotzhauer with the right to pursue the claim. 

The Court further held that even though Schlotzhauer had errantly brought the suit when she did not have standing to do so, she had the right to maintain the suit once she reacquired the claim from the bankruptcy court. When she reacquired the claim, otherwise in the possession of the bankruptcy trustee, she replaced him as the party in interest, and her rights related back to the commencement of the lawsuit.  “In other words, as a matter of federal bankruptcy law, when the bankruptcy court allowed the exemption that Schlotzhauer had claimed in her amended schedules, it was as though she had owned her claims all along.”  The bankruptcy court’s second order, relating the exemption back to the date of the petition, definitively determined that, as a matter of federal law, Schlotzhauer owned the claim all along. 

The Court of Special Appeals held that the trial court erred by not granting the motion to reconsider the grant of the motion for summary judgment when it was presented with new information regarding the legal status of Schlotzhauer’s right to pursue the claim.  The order of the trial court was reversed and the matter was remanded to the trial court for further proceedings.

Schlotzhauer v. Morton, 2015 Md. App. LEXIS 98, *1 (Md. Ct. Spec. App. July 30, 2015), publicly available at

Submitted by Marisa A. Trasatti and Gregory Emrick

Epilogue to Banff 2015 Amarin and Caronia

Amarin/Caronia: What Lies Ahead for Tort Preemption?

It is a coincidence that the death of Frances Oldham Kelsey on August 7, 2015 coincided with the release of the decision in Amarin v. FDA, 1:15-CV-03588-PAE, Doc. 73 (SDNY Aug. 7, 2015). Ms. Kelsey is generally credited with the regulatory changes that require evidence of efficacy before a product can be marketed for a specific use. Those changes came about because of the promotion of thalidomide, a drug that physicians prescribed for nausea during pregnancy, which caused profound deformities in developing fetuses.

The Amarin court addressed a related issue—whether manufacturers could be prevented from disseminating information concerning indications, dosages, durations, or in combinations not in the Food and Drug Administration (FDA) approved label (i.e. off-label). The court concluded that more, not less, truthful information was needed, observing that off-label use is often recognized as the standard of care in medicine and has been recognized as such by the United States Supreme Court. Id. at 5-9. It is an unassailable truth that no one has ever died or been injured because they had too much truthful scientific or medical information. Health care is improved and lives are saved when doctors have unrestricted access to truthful information concerning the safety and effectiveness of FDA-regulated products for on-label use, and the health benefits are even greater when the information concerns off-label uses.

In Amarin, the court rejected the government’s misreading of the landmark opinion in U.S. v. Caronia,703 F.3d 149 (2d Cir. 2012), and significantly curtailedthe FDA’s power to bar a manufacturer from disseminating truthful, non-misleading scientific and medical information.Less obvious and potentially more significant for manufacturers, is the issue of tort duties that can arise when the FDA’s oversight is limited. 

The terms “promotion,” “advertising” and “off-label” are not defined in the Food Drug and Cosmetic Act, and to no one’s surprise, the FDA’s regulation of speech concerning promotional activities and advertising related to off-label use has been a muddled mess. The lack of a clear set of rules has allowed the FDA unfettered discretion in defining the applicability of these terms in civil and criminal enforcement proceedings. The Amarin court details the current regime for disseminating truthful scientific information concerning new uses and the narrative reveal a regulatory scheme worthy of Monty Python and the Bridge of Death. For a detailed analysis and discussion of the due process, deference and First Amendment considerations underlying this issue see The First Amendment and the Emerging Tort of Off-Label Promotion, Washington Legal Foundation, No. 183, April 2013) and “Parallel” State Law Tort Claims or Does the FDA Really Favor Private Enforcement of the FDCA? Federation of Defense and Corporate Counsel, July 2015.

In Amarin, the court observed the landmark significance of Caronia stating that the “Second Circuit’s 2012 decision in Caronia addressed, for the first time, the interplay between the FDCA’s misbranding provisions and the First Amendment. Amarin, supra at 18, emphasis added. The government may have been too clever in its strategy regarding Caronia. If it had read the opinion like the rest of the legal community, it might have recognized the folly in not appealing the Caronia decision. As the Amarin court observed: “Had the FDA believed that Caronia gravely undermined the drug approval process, it should have sought review of that decision.” Id. at 67.

The court in Amarin flatly rejected the position the FDA has been touting for decades— that it was not prosecuting speech but conduct that is evidence of intent. The court ruled that “the FDA may not bring such an action based on truthful promotional speech alone, consistent with the First Amendment.” Id. at 45.

The court further rejected the government’s attempt to rewrite the holding in Caronia:

Where the speech at issue consists of truthful and non-misleading speech promoting the off-label use of an FDA-approved drug, such speech, under Caronia, cannot be the act upon which an action for misbranding is based. Id. at 49.

The Caronia and Amarin cases hold far more than academic importance. These cases sit at the juncture of free speech and preemption. When the FDA cannot prevent a manufacturer from providing truthful scientific and medical information about its product, a manufacturer may have a state law duty to speak and its ability to defeat a claim on preemption grounds is threatened.

TheFDA has never been comfortable balancing due process and First Amendment concerns with its desire to pursue enforcement. The result has been a regime under constant criticism as violating due process guarantees, producing regulatory determinations not worthy of court deference and trampling the First Amendment. Despite the uproar, FDA’s threats of criminal sanctions, debarment and civil penalties overwhelmed industry, and the FDA reaped more than $12 billion in penalties. Nonetheless, the growing assault on the FDA’s stranglehold continued, most notably with the landmark decision in Caronia, a watershed decision that most commentators, except the FDA and former government lawyers, predicted would change how the FDA regulates industry communications. 

The Speech/Preemption Dilemma – What Is That Light At The End Of The Tunnel?

Before applauding the demise of FDA’s stranglehold on the dissemination of truthful scientific information too loudly, manufacturers are well advised to heed the Amarin court’s suggestion to “consult with the FDA before promoting off-label use” Id. at 53 because the light at the end of the tunnel might be a freight train of tort claims. An FDA stamp of approval on a company’s marketing efforts may be a lifeline to preserve a preemption challenge. In what may turn out to be the more frequently quoted statement in Amarin, the court highlighted the duty owed by manufacturers stating:

Amarinbears the responsibility, going forward, of assuring that its communications to doctors regarding off-label use… remain truthful and non-misleading. Id. at 66.

If history is any guide, tort claimants may pose a more formidable threat to manufacturers than the FDA. Only time will tell whether they have won the battle only to lose the war.

At the Drug Device and Biotechnology meeting at the FDCC 2015 annual meeting in Banff we discussed Amarin, Allergan et al. v. Athena, 738 F.3d 1350 (Fed. Cir. 2013), cert. denied (No. 13-1286) (June 29, 2015), and the evolving landscape of preemption for off-label tort claims, particularly in light of the FDA’s permissive approach.  Stay tuned for our discussion of how we might anticipate the road ahead. To be continued.…

Sanctions not warranted where no prejudice was found

Sanctions not warranted where no prejudice was found from corporate designee’s improper and inadequate preparation for deposition.

Osborne v. Mountain Empire Operations LLC, et al, No. 1:2014cv00042 - Document 63 (W.D. Va. 2015), available at

On July 7, 2012, Plaintiff fell out of her wheelchair, while in the care of Defendant’s nursing home.  The fall caused multiple facial fractures, and she allegedly developed pneumonia due to the aspiration of blood from her broken nose. 

During the litigation, Plaintiff sought the deposition of the corporate Defendant’s designee, pursuant to Fed. R. Civ. Proc. 30(b)(6). Plaintiff served a notice of deposition identifying the areas of inquiry to which Defendant did not object.   According to the Motion for Sanctions, filed on May 11, 2015, the corporate designee testified that she had only reviewed the records, had not performed any investigation, and had only spoken with defense counsel.  As a result, she responded approximately 163 times that she did not have personal knowledge and could not answer the questions. Plaintiffs also alleged that defense counsel instructed the witness not to answer properly raised questions, and otherwise coached the witness on how to respond and what particular questions to respond to. 

Two (2) months after the deposition, Plaintiffs filed a Motion for Sanctions, which the Defendant opposed. 

The parties shortly thereafter participated in mediation and settled the case, which included an agreement that Plaintiff would withdraw the motion.

Despite being informed of the settlement, Judge James Jones of the United States District Court of the Western District of Virginia determined that the settlement did not divest the Court of the discretion to render an opinion on the alleged violation of Federal Rules of Civil Procedure.  Citing Perkins v. Gen. Motors Corp., 965 F.2d 597, 600 (8th Cir. 1992), Judge Jones noted that the Court had an independent obligation to enforce the Rules that the parties could not bargain away.

The Court concluded that the Rules had been violated in two (2) ways.   First, the Defendant’s corporate designee was not adequately prepared to respond to the identified areas of testimony, as required by Fed. R. Civ. Proc. 30(b)(6). The Court found that even though the answers were supplied by the client, not the attorney, defense counsel had failed to properly prepare the witness. The counsel had instructed the witness to only rely upon documents, not to talk to potentially knowledgeable employees or conduct any other investigation. 

The Court also found that defense counsel improperly instructed the witness not to respond to certain properly trained questions during the deposition.  The instructions were not properly raised to “preserve a privilege, to enforce a limitation ordered by the court, or to present a motion under Rule 30(d)(3).” Citing Fed. R. Civ. Proc. 30(c)(2).  While the Rules provided a procedure for terminating the deposition for objectionable questions and promptly receiving a ruling from the court, it did not permit the defense counsel to instruct the witness not to answer.  The court also found that defense counsel improperly made speaking objections that had the effect of coaching the witness’s responses.

Despite the violations of the Rules, the Court noted that there was no prejudice to the Plaintiff.  Further, the motion had been filed over two (2) months after the deposition and not long before trial, effectively precluding the court from constructing appropriate remedial sanctions, such as conducting the deposition at Defendant’s cost.  As such, the Court denied the motion. 

Submitted by Marisa A. Trasatti and Gregory Emrick, Semmes, Bowen & Semmes


Rooker-Feldman Doctrine Requires Remand

Murray v. Midland Funding, LLC, Civ. No. JKB-15-0532 (June 23, 2015), was removed from State to Federal court under the Class Action Fairness Act (“CAFA”), codified at 28 U.S.C. § 1332(d) and § 1453.  The Plaintiff filed a Motion to Remand, which was granted in part and denied in part by the Court.  The Court determined that Defendant’s removal was timely under CAFA, but that the Rooker-Feldman doctrine required remand of Counts I andII to State court.  The case proceeded in Federal court as to Counts III, IV, and V, since Burford abstention was not applicable.

Plaintiff filed a Class Action Complaint & Request for Jury Trial in Anne Arundel County Circuit Court.  She asked that the Plaintiff Class be defined as the persons sued by Defendant in Maryland State courts from October 30, 2007 through January 14, 2010 for whom Defendant obtained a judgment for an alleged debt, interest or costs, including attorney’s fees in her favor in an attempt to collect a consumer debt.  Plaintiff alleged that Defendant employed multiple entities and persons in thousands of collection actions for purposes of collecting debts on its behalf in Maryland.  Plaintiff further alleged that Defendant did not have the collection agency license mandated by Maryland law during the relevant Class time period.  Plaintiff alleged that the judgments obtained by Defendant before it received its license were void.  The complaint sought declaratory and injunctive relief for the putative class members and a money judgment for the Plaintiff Class in excess of $75,000 based upon alleged violations of Maryland common law and statutory law.  Plaintiff later amended her Complaint and added a new count for the common law causes of action “money had and received” and in the new count, claimed on behalf of the Plaintiff Class a money judgment of $10,000,000.

Plaintiff advanced two (2) bases for remanding this case to state court. First, she claimed removal was untimely, and second, she argued the Court lacked subject matter jurisdiction because of the Rooker-Feldman doctrine.  Alternatively, Plaintiff requested that, if the Court determined removal was timely and Rooker-Feldman required remand of only Counts I and II, then the Court should remand Counts I and II but stay proceedings on Counts III, IV, and V pending state court resolution of Counts I and II pursuant to Burford abstention.

As a threshold issue, the Court rejected Plaintiff’s argument that removal was untimely.  The basic diversity rule did not apply—the CAFA’s diversity rule applied, which meant that the Complaint only came within CAFA jurisdiction after its sum or value exceeded $5,000,000, if it was a class action in which “any member of a class of plaintiffs is a citizen of a State different from any defendant,” and the total number of members of the aggregated plaintiff classes is at least 100.  28 U.S.C. § 1332(d)(2)(A), (5)(B).  Murray’s original Complaint did not meet these parameters because the amount in controversy fell short.  The pleading did not become removable until it was amended and claimed a money judgment of $10,000,000, and it was timely removed by Defendant within thirty (30) days after that amendment.

The Rooker-Feldman doctrine derives its name from two (2) Supreme Court cases, Rooker v. Fidelity Trust Co., 263 U.S. 413 (1923), and Dist. of Columbia Ct. of Appeals v. Feldman, 460 U.S. 462 (1983).  The doctrine is confined to cases brought by state court losers complaining of injuries caused by state court judgmentsrendered before the district court proceedings commenced and inviting district court review and rejection of those judgments.  Such cases are not permitted because they would allow the federal district courts to exercise appellate jurisdiction, when only the Supreme Court may entertain a proceeding to reverse or modify a state-court judgment.  The doctrine is narrowly construed, however; and so, if the federal plaintiff presents some independent claim, albeit one that denies a legal conclusion that a state court has reached in a case to which he was a party, then there is jurisdiction and state law determines whether the defendant prevails under principles of preclusion. 

Based on the application of the doctrine, the Court determined that Counts I and II of the Complaint, which were predicated upon the requested declaration of void judgments, should be remanded.  The Complaint’s remaining counts, however, did not invite review and rejection of the allegedly void judgments obtained by Defendant.  Rather, they alleged violations of Maryland law by Defendant in seeking and enforcing the judgments.  Thus, the injury in the remaining counts was not caused by the judgments themselves but by Defendant’s allegedly illegal actions.  They were separable and collateral to the merits of the state court judgment.  Ultimately, the Court remanded only the portion of the case that did not fall within the district court’s original jurisdiction (Counts I and II), and retained jurisdiction over the remaining counts of the Complaint (Counts III, IV, and V).

Finally, the Court addressed Plaintiff’s argument that if the Rooker-Feldman remand of the entire case was unwarranted, then the Court should stay proceedings on Counts III, IV,and V pending the outcome of Counts I and II in State court, under Burford abstention, citing Burford v. Sun Oil Co., 319 U.S. 315 (1943).  The Court determined that a stay of the remaining counts was inappropriate.  Burford abstention is limited to two (2) particular circumstances: (1) when there are difficult questions of state law bearing on policy problems of substantial public import whose importance transcends the result in the case at bar; or (2) where the exercise of federal review of the question in a case and in similar cases would be disruptive of state efforts to establish a coherent policy with respect to a matter of substantial public concern.  Neither circumstance was present in this case.  Furthermore, Burford abstention largely applies only in the context of state administrative processes.  Since the case did not involve any state administrative process or orders that could be jeopardized by proceeding to adjudication on the remaining counts, the doctrine was inapplicable. 

In sum, Defendant’s removal was timely, but the Rooker-Feldman doctrine required remand of Counts I andII to State court, while Federal court retained jurisdiction over Counts III, IV, and V.  No attorneys’ fees were awarded to Plaintiff in connection with the partial remand of the case either.

Rooker-Feldman Doctrine Requires Remand of Part of Plaintiff’s Class Action Complaint, but Remaining Counts Will Remain in Federal Court

Murray v. Midland Funding, LLC Civ. No. JKB-15-0532, United States District Court for the District of Maryland (June 23, 2015) Available at:

Submitted by Marisa A. Trasatti and Colleen K. O’Brien, Semmes, Bowen & Semmes

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