Case Updates

On September 10, 2019 the Court of Appeals for the Federal Circuit affirmed the grant of summary judgment to counter-defendant Intellectual Ventures by district courts in Maryland and Virginia. Read more

Unruh Act forbids religious hospital from denying treatment based on gender identity without providing treatment at comparable facility. Read more

Hospital cannot contractually avoid statutory notice and hearing requirements governing medical staff peer review. Read more

Summary: The U.S. Court of Appeals for the Ninth Circuit affirmed the confirmation of a chapter 11 plan in which one of the debtor’s tenants operated a marijuana business. Garvin v. Cook Invs., NW, SPNWY, LLC, 922 F.3d 1031 (9th Cir. 2019). The court held that Section 1129(a)(3), which requires that the plan be proposed “not by any means forbidden by law,” is to be construed to mandate only that the court determine whether the plan is proposed in an unlawful manner; and not whether a plan may contain substantive provisions that “depend on illegality.” Read more

Summary: In Benzeen Inc. v. UST – United States Trustee, Woodland Hills, No. 18-1185, 2019 WL 1096334 (9th Cir. BAP Mar. 6, 2019), the United States Bankruptcy Appellate Panel of the Ninth Circuit reversed the bankruptcy court’s sua sponte order dismissing a debtor’s bankruptcy case at a status conference and hearing on debtor’s disclosure statement based on, among other reasons, procedural errors and due process concerns. Read more

Residential drug treatment facilities violating zoning ordinances may be enjoined as per se nuisances. Read more

Summary: The Bankruptcy Appellate Panel for the United States Court of Appeals for the Ninth Circuit held that a bankruptcy court did not abuse its discretion in denying debtors’ motion to remand their state court lawsuit against their creditors and directing the chapter 7 trustee to dismiss the adversary proceeding. In re Morabito, No. NV-17-1304-TaBKu, 2018 Bankr. LEXIS 3604 (9th Cir. BAP Oct. 30, 2018). The BAP upheld the bankruptcy court’s decision that the debtors were not prejudiced by dismissal of the claims since they were claims of the estate and not the debtors. Read more

Summary: In McCann v. Wichot (In re Patmont Motor Werks, Inc.) BAP Case Nos. NV-17-1221-BTaL, NV-17-1288 (Consolidated Appeals) (9th Cir. BAP 2018), the Bankruptcy Appellate Panel for the Ninth Circuit affirmed the bankruptcy court’s order denying litigation counsel employed by debtor’s insiders relief from a sanctions order as untimely pursuant to Civil Rule 60(b), but found that the bankruptcy court abused its discretion in granting the responding party’s request for attorney’s fees incurred in opposing Civil Rule 60(b) motion. Read more

Geraldine Godecke worked as the Director of Medicare Cash and Collections at Kinetic Concepts, Inc. (KCI), a company that manufactures vacuum-assisted wound closure equipment. To receive payment from Medicare, KCI must obtain a physician’s written order before delivering equipment to a patient. After KCI fired her, Godecke (as a relator) filed a whistleblower suit under the federal False Claims Act. She alleged that KCI submitted claims to Medicare for equipment delivered to patients before it received a physician order, using billing codes incorrectly indicating that all reimbursement requirements were met. The district court granted KCI’s motion to dismiss, ruling that Godecke did not plausibly allege that KCI submitted claims with improper billing codes, or acted with scienter. Read more

Plaintiff Alycesun Daley was pregnant with twins who suffered from twin-twin transfusion syndrome (TTTS), a congenital condition involving inter-twin vascular connections. As part of a National Institute of Health clinical study, she underwent two fetoscopic laser surgeries to treat the TTTS at UCSF’s Fetal Treatment Center. After the second surgery, she developed a bacterial infection which led to an induced delivery. Neither twin survived. Read more