What’s at Stake in Espinoza v. Montana Department of Revenue? What the Equal Protection Clause Means in the Context of Classifications Based on Religiosity

VIKRAM DAVID AMAR, ALAN E. BROWNSTEIN

Illinois Law dean Vikram David Amar and UC Davis emeritus professor Alan E. Brownstein comment on a case before the U.S. Supreme Court that raises the question whether a religiously neutral student-aid program in Montana that affords students the choice of attending religious schools violates the religion clauses or the Equal Protection Clause of the U.S. Constitution. Amar and Brownstein express no opinion as to whether the courts’ often-expressed concerns about striking down invidiously motivated laws can be effectively overcome, but they contend that jurists who reject invalidating invidiously motivated laws must explain why reasons sufficient in other contexts are not persuasive in this case.

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Connolly v. Morreale

Docket: 19-1072

Opinion Date: May 15, 2020

Judge: Moritz

Areas of Law: Bankruptcy

Appellant Tom Connolly, the trustee for the Chapter 7 case of Appellee Samuel Morreale, sought compensation based upon moneys disbursed in Morreale’s Chapter 7 case and in a related Chapter 11 case. Morreale owned the sole membership interest in Morreale Hotels, LLC (Hotels LLC), which in turn owned two properties in Denver, Colorado. Morreale also acted as Hotels LLC’s manager and personally guaranteed certain loans that Hotels LLC obtained on the properties it owned. In 2012, Hotels LLC filed a petition for Chapter 11 bankruptcy protection and pursued reorganization. In 2013, Morreale filed his own Chapter 11 bankruptcy petition, which the bankruptcy court later converted to Chapter 7. The U.S. Trustee appointed Connolly as the Chapter 7 trustee in the Chapter 7 Case. As trustee, Connolly assumed Morreale’s membership interest in Hotels LLC. Exercising that interest, Connolly appointed himself the new manager of Hotels LLC, thereby replacing Morreale. The bankruptcy court approved this replacement. Connolly abandoned reorganization of Hotels LLC and decided instead to liquidate Hotels LLC’s properties. In his application for compensation, Connolly sought $260,000, an amount based on the moneys disbursed in both the Chapter 7 Case and to creditors who also held claims in the Chapter 11 Case. The bankruptcy court and the Tenth Circuit’s bankruptcy appellate panel (the BAP) both rejected Connolly’s request, concluding that the language of 11 U.S.C. section 326(a) did not support it. After review, the Tenth Circuit Court of Appeals agreed that the plain language of section 326(a) permitted awarding compensation to a Chapter 7 trustee based only on moneys disbursed in the case in which that trustee served, and not on moneys disbursed in a related Chapter 11 case in which the trustee did not serve.

Aptive Environmental v. Town of Castle Rock

Docket: 18-1166

Opinion Date: May 15, 2020

Judge: Jerome A. Holmes

Areas of Law: Business Law, Constitutional Law, Government & Administrative Law

The Town of Castle Rock, Colorado enacted a 7:00 p.m. curfew on commercial door-to-door solicitation. Aptive Environmental, LLC sold pest-control services through door-to-door solicitation and encouraged its salespeople to go door-to-door until dusk during the traditional business week. When Aptive came to Castle Rock in 2017, it struggled to sell its services as successfully as it had in other nearby markets. Blaming the Curfew, Aptive sued Castle Rock for violating its First Amendment rights and sought an injunction against the Curfew’s enforcement. After a bench trial, the district court permanently enjoined Castle Rock from enforcing the Curfew. Castle Rock appealed. After review, the Tenth Circuit concluded Castle Rock failed to demonstrate the Curfew advanced its substantial interests in a direct and material way.