Latest 3 Cases: Brace v. Speier (Bankruptcy), San Francisco Taxi Coalition v. City and County of San Francisco (Civil Rights), Stone v. ...

The Affordable Care Act Challenge and the Senate Runoff Elections in Georgia

MICHAEL C. DORF

Cornell law professor Michael C. Dorf comments on the third challenge to the Affordable Care Act (ACA) that has made it before the U.S. Supreme Court, and considers how the case will play in the upcoming Georgia runoff elections. Dorf argues that absent a dramatic and highly unusual development—like a Supreme Court decision rejecting the ACA challenge in the next few weeks—that should help the Democratic candidates in Georgia’s runoff elections.

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Brace v. Speier

Docket: 17-60032

Opinion Date: November 9, 2020

Judge: David A. Ezra

Areas of Law: Bankruptcy

Chapter 7 debtor and his wife (collectively, "appellants") appealed the bankruptcy appellate panel's order affirming the bankruptcy court's judgment in an adversary proceeding brought by the Chapter 7 trustee. At issue is the characterization of two properties acquired by appellants during their marriage but before debtor individually filed for bankruptcy protection. The panel certified to the Supreme Court of California the question whether, in Chapter 7 bankruptcy proceedings, Cal. Evid. Code 662, which affords a presumption based on the property's form of title, supersedes Cal. Fam. Code 760, which applies a presumption in favor of community property for property purchased during the marriage with community property. The California Supreme Court determined that for joint tenancy property acquired during marriage before 1975, each spouse's interest is presumptively separate in character. For such property acquired with community funds on or after January 1, 1975, the property is presumptively community in character. For property acquired before 1985, the parties can show a transmutation from community property to separate property by oral or written agreement or a common understanding. For joint tenancy property acquired with community funds on or after January 1, 1985, a written declaration is required. In light of the Supreme Court of California's opinion answering the panel's certified question, the panel held that the bankruptcy courts properly applied California law to the characterization of the Redlands Property. In this case, the community property presumption applied because the property was acquired with community funds on or after January 1, 1975. However, the panel held that the bankruptcy courts did not make the necessary factual finding regarding when the San Bernardino Property was purchased to apply the proper presumptions when characterizing that property. Finally, the panel saw no clear error in the bankruptcy courts' finding that appellants failed to meet the requirements for a transmutation of either property. Accordingly, the panel affirmed in part and vacated and remanded in part.

San Francisco Taxi Coalition v. City and County of San Francisco

Docket: 19-16439

Opinion Date: November 9, 2020

Judge: Kenneth K. Lee

Areas of Law: Civil Rights, Constitutional Law

Plaintiffs, taxi drivers and groups representing them, filed suit challenging SFMTA's new rules favoring recent owners of taxi medallions over those who obtained theirs years ago. Plaintiffs alleged that these new rules violate equal protection, substantive due process, the California Environmental Quality Act (CEQA), and state anti-age discrimination law. The Ninth Circuit affirmed the district court's grant of the government's motion for judgment on the pleadings, ruling that the taxi drivers failed to state plausible claims. The panel held that the rules are rationally related to the legitimate government interests of aiding beleaguered taxi drivers and easing taxi congestion at the airport. The panel also held that the 2018 Regulations are not a project per CEQA, and plaintiffs' pleadings fail to plausibly claim otherwise. Furthermore, plaintiffs' pleadings failed to plausibly allege that California Government Code section 11135 governs the taxi medallion system. Therefore, the panel affirmed the judgment on the CEQA and age discrimination claims, but remanded for the district court to consider granting leave to amend those claims in the event the taxi drivers can allege additional facts to support them.

Stone v. UnitedHealthcare Insurance, Co.

Docket: 19-16227

Opinion Date: November 9, 2020

Judge: Tashima

Areas of Law: ERISA

The Ninth Circuit affirmed the district court's grant of summary judgment for defendants in an action brought by plaintiff under the Employee Retirement Income Security Act (ERISA), challenging the denial of health care coverage for out-of-state residential treatment for anorexia nervosa. The panel held that defendants' denial of coverage did not violate the Mental Health Parity and Addiction Equity Act or the California Mental Health Parity Act where the denial of coverage was based solely on the Plan's exclusion of coverage for out-of-state treatment, which applies equally to mental and physical illnesses. In this case, plaintiff, aware of this exclusion, sent her daughter to an out-of-state residential treatment program for anorexia nervosa. The panel concluded that plaintiff has not shown that the Plan's requirement of in-state treatment is applied to mental health conditions, but not to other medical conditions.