Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

A 2018 data breach at Barracuda Networks exposed protected health information of patients of Zoll Services LLC, a subsidiary of Zoll Medical Corporation. Zoll had contracted with Fusion LLC for data security services, and Fusion in turn relied on Barracuda’s technology. The agreements between these companies included certain liability and indemnification provisions, as well as a right for Barracuda to audit Fusion’s customer contracts. After the breach, Zoll settled a class action brought by its customers whose data was compromised.Following these events, Zoll initiated arbitration against Fusion and filed suit against Barracuda in the U.S. District Court for the District of Massachusetts. Fusion intervened and asserted additional claims against Barracuda. The district court dismissed most claims but allowed Zoll’s equitable indemnification claim and Fusion’s breach of contract and breach of the covenant of good faith and fair dealing claims to proceed. After arbitration and settlements, Axis Insurance Company, as assignee and subrogee of Zoll and Fusion, was substituted as plaintiff. Barracuda moved for summary judgment on the remaining claims, which the district court granted.On appeal, the United States Court of Appeals for the First Circuit reviewed the district court’s summary judgment rulings de novo. The appellate court held that Axis failed to present evidence of a relationship between Zoll and Barracuda that would support derivative or vicarious liability necessary for equitable indemnification under Massachusetts law. The court found that Fusion did not meet a condition precedent in its contract with Barracuda, and Barracuda had not waived or was estopped from asserting that condition. Further, Axis could not show that Barracuda breached the covenant of good faith and fair dealing, as no relevant contractual right existed. The First Circuit affirmed the district court’s grant of summary judgment in favor of Barracuda on all claims. View "Axis Insurance Company v. Barracuda Networks, Inc." on Justia Law

In this dispute, a charitable foundation affiliated with a musical instruments company loaned a rhinestone-adorned piano, previously owned by Liberace, to a piano retailer under an agreement made in 2011. The arrangement allowed the retailer to display and promote the piano while the foundation avoided storage responsibilities. In 2019, the foundation requested the piano’s return, but the retailer refused, which led the foundation to allege a breach of the bailment agreement.The United States District Court for the District of Massachusetts initially granted summary judgment to the retailer, holding that the bailment claim was time-barred. On appeal, the United States Court of Appeals for the First Circuit reversed, finding there was a genuine dispute of material fact regarding the foundation’s ownership of the piano at the time of the agreement. On remand, the case proceeded to a jury trial, which resulted in a verdict for the foundation on its breach-of-bailment claim, and judgment was entered accordingly.The First Circuit reviewed the retailer’s appeal, where he challenged the judgment on grounds that certain emails should not have been admitted at trial, that the foundation was judicially estopped from pursuing its claim, and that he was entitled to judgment as a matter of law. The court held that the District Court did not abuse its discretion in admitting the emails under the hearsay exception for statements of intent, nor in finding the emails relevant. The court also concluded that the District Court properly declined to apply judicial estoppel, as the standard does not require proof of fraudulent intent and that the jury had sufficient evidence to find a bailment agreement existed. Accordingly, the First Circuit affirmed the District Court’s judgment. View "Gibson Foundation, Inc. v. Norris" on Justia Law

Riverdale Mills Corporation operates a wire mesh manufacturing facility in Northbridge, Massachusetts. In 2019, the Occupational Safety and Health Administration (OSHA) conducted two investigations at Riverdale’s facility, which resulted in citations alleging violations of safety and health standards under the Occupational Safety and Health Act. Riverdale contested these citations, and after a consolidated hearing before an Administrative Law Judge (ALJ) of the Occupational Safety and Health Review Commission (OSHRC) in 2021, the ALJ affirmed three citation items while vacating or withdrawing the others.Subsequently, in December 2023, Riverdale applied to the ALJ for recovery of attorney’s fees and costs under the Equal Access to Justice Act (EAJA). To establish eligibility for this recovery, Riverdale submitted its 2019 balance sheet as evidence, along with a motion to seal the document due to alleged confidential business information. The Secretary of Labor opposed the motion, arguing Riverdale had not demonstrated sufficient grounds for sealing. After considering submissions from both parties, the ALJ denied Riverdale’s motion to seal, applying balancing tests from D.C. Circuit and First Circuit case law and concluding Riverdale had not shown compelling reasons to overcome the presumption of public access. Riverdale attempted to appeal this denial to the OSHRC Commission, but the Commission automatically dismissed the appeal for lack of quorum.Riverdale then sought interlocutory review from the United States Court of Appeals for the First Circuit. The First Circuit assumed interlocutory jurisdiction under the collateral order doctrine and reviewed the ALJ’s denial for abuse of discretion. It held that Riverdale had waived certain arguments by not raising them earlier and determined the ALJ did not abuse her discretion in denying the motion to seal, finding Riverdale failed to meet its burden to justify sealing the balance sheet. The petition for review was denied. View "Riverdale Mills Corp. v. Chavez-DeRemer" on Justia Law

The State of Maine filed two similar lawsuits against 3M Company, alleging that per- and polyfluoroalkyl substances (PFAS) manufactured by 3M had contaminated various natural resources across Maine. One suit targeted PFAS contamination from 3M’s production of Aqueous Film Forming Foam (AFFF), a firefighting product, while the other (the “non-AFFF” case) sought recovery for PFAS contamination not related to AFFF. Maine included a disclaimer in the non-AFFF complaint, stating it was not seeking relief for contamination related to AFFF, including military specification (MilSpec) AFFF, which was produced under federal direction and used at military and other federally regulated sites.3M removed both cases to the United States District Court for the District of Maine under the federal officer removal statute, 28 U.S.C. § 1442(a)(1), arguing that PFAS from AFFF and non-AFFF sources had plausibly commingled at various sites, giving rise to a colorable federal defense. Maine did not oppose removal of the AFFF case but moved to remand the non-AFFF case, contending that its disclaimer precluded any federal defense. The district court agreed with Maine, finding that the disclaimer shifted the burden to the State to prove contamination was not from AFFF, and thus remanded the case to state court.On appeal, the United States Court of Appeals for the First Circuit reversed the remand order. The court held that 3M’s theory—that PFAS contamination from MilSpec AFFF, for which it has a federal contractor defense, is commingled with other PFAS contamination—must be credited at this stage. The court concluded that the disclaimer did not eliminate 3M’s colorable federal defense or the “related to” nexus required for federal officer removal. The First Circuit ordered the case returned to federal court for further proceedings. View "Maine v. 3M Company" on Justia Law

A group of Maine lobstermen challenged a state rule requiring all federally permitted lobster fishers to install electronic tracking devices on their vessels, which transmit GPS location data whenever the vessels are in the water. This rule was adopted by the Maine Department of Marine Resources (MDMR) to comply with an addendum to the Atlantic States Marine Fisheries Commission’s American Lobster Fishery Management Plan. The addendum aimed to reduce risks to North Atlantic right whales, improve fishery data, and support regulatory enforcement. The tracking devices must remain powered and transmit data at all times, including when vessels are docked or used for personal purposes.The plaintiffs filed suit in the United States District Court for the District of Maine, arguing that the MDMR Rule violated their rights under the Fourth Amendment, as well as equal protection and state administrative law. The district court granted the state’s motion to dismiss, holding that the plaintiffs failed to state a claim under the Fourth Amendment because the lobster fishery is a closely regulated industry and the rule was not unreasonably invasive. The court noted several concessions by the parties, including that the GPS tracking constituted a search, that the lobster industry is closely regulated, and that the search was administrative in nature.On appeal, the United States Court of Appeals for the First Circuit reviewed the dismissal de novo. The court held that the lobster industry is a closely regulated industry and that the administrative search exception, as articulated in New York v. Burger, 482 U.S. 691 (1987), applied. The court found that the MDMR Rule satisfied the Burger test: it served a substantial government interest, warrantless searches were necessary to the regulatory scheme, and the rule provided a constitutionally adequate substitute for a warrant. The First Circuit affirmed the district court’s dismissal. View "Thompson v. Wilson" on Justia Law

Craig Medoff, after a history of violating federal securities laws and failing to comply with prior court orders and penalties, was subject to a 2016 consent judgment in the District of Massachusetts that barred him and any entity he controlled from participating in the issuance, offer, or sale of any security for ten years. Despite this, Medoff continued to control Nova Capital International LLC and engaged in securities-related activities, using an alias and receiving substantial fees in violation of the judgment. The SEC initiated civil contempt proceedings, but the district court, concerned about the futility of further civil sanctions given Medoff’s history and financial situation, instead initiated criminal contempt proceedings under 18 U.S.C. § 401(3) and Federal Rule of Criminal Procedure 42(a).The United States District Court for the District of Massachusetts appointed the U.S. Attorney to prosecute the criminal contempt case. Medoff’s counsel moved for the judge’s recusal under 28 U.S.C. § 455(a), arguing that the judge’s impartiality might reasonably be questioned due to his comments and conduct during the proceedings. The district court denied the recusal motion, finding no reasonable basis for doubting its impartiality, and proceeded with the criminal case. Medoff ultimately pleaded guilty to criminal contempt and was sentenced to twenty months in prison, a variance above the guideline range, and thirty-six months of supervised release, along with a fine.On appeal to the United States Court of Appeals for the First Circuit, Medoff challenged the denial of the recusal motion and the reasonableness of his sentence. The First Circuit held that the district court did not abuse its discretion in denying recusal, as the judge’s actions did not display deep-seated antagonism or favoritism. The court also found the sentence both procedurally and substantively reasonable, affirming the district court’s judgment. View "United States v. Medoff" on Justia Law

The defendant formed a company in 2005 that solicited funds from clients through financial agreements promising fixed returns, with the stated purpose of developing various businesses. Clients entered into these agreements, called "Productive Development Contracts," by making monetary contributions in exchange for promised earnings. The company failed to fulfill its obligations, and the government alleged that the defendant operated a Ponzi scheme, using funds from later clients to pay earlier ones, without generating legitimate profits. The indictment listed specific transactions involving eight clients, and at trial, both these and additional clients testified about their experiences and losses.The case was tried in the United States District Court for the District of Puerto Rico. The government presented evidence including client testimony, bank records, and summary exhibits prepared by a forensic accountant. The defendant objected to the admission of certain summary exhibits under Federal Rule of Evidence 1006, arguing they contained hearsay and improper conclusions. The district court overruled these objections, and the jury convicted the defendant on all counts. At sentencing, the court calculated loss and restitution amounts based on both testifying and non-testifying victims, resulting in a sentence of 135 months’ imprisonment and a restitution order exceeding $2.1 million. The defendant appealed, challenging the evidentiary rulings, sufficiency of the evidence, sentencing calculations, and restitution order.The United States Court of Appeals for the First Circuit affirmed the securities fraud conviction, sentence, and restitution order, but vacated the bank fraud convictions at the government’s request. The court held that any error in admitting the summary exhibits was harmless given the overwhelming unchallenged evidence. It found sufficient evidence supported the jury’s finding that the contracts were securities under the law. The court also upheld the district court’s loss and restitution calculations, concluding they were supported by reliable evidence and not plainly erroneous. View "United States v. Maldonado-Vargas" on Justia Law

In 2018, the plaintiff contacted police to help resolve a dispute at her home involving her adult children. After officers arrived and de-escalated the situation, a third officer arrived, and a disagreement between the plaintiff and this officer led to her arrest. She was charged with resisting arrest, disorderly conduct, and assault and battery on a police officer. Rather than pleading guilty or going to trial, the plaintiff entered into an agreement under Massachusetts law for three months of pretrial probation, with the understanding that the charges would be dismissed upon successful completion. She did not admit to any wrongdoing or facts, and after completing probation, the charges were dismissed.The plaintiff later filed a lawsuit in state court against the City of Springfield and several police officers, alleging civil rights violations under 42 U.S.C. § 1983, including excessive force during her arrest. The defendants removed the case to the United States District Court for the District of Massachusetts and moved for summary judgment, arguing that the plaintiff’s claims were barred by the doctrine established in Heck v. Humphrey, which prevents § 1983 claims that would impugn a valid criminal judgment. The district court denied summary judgment on this ground for two officers, holding that the Heck bar did not apply because the plaintiff was not convicted.On appeal, the United States Court of Appeals for the First Circuit affirmed the district court’s decision. The court held that the Heck bar does not apply when there is no underlying criminal conviction or sentence. Because the plaintiff’s charges were dismissed after pretrial probation without any admission of guilt or factual findings, her § 1983 claims could proceed. The case was remanded for further proceedings. View "Aprileo v. Clapprood" on Justia Law

During a government shutdown that began on October 1, 2025, the United States Department of Agriculture (USDA) announced it would not provide November Supplemental Nutrition Assistance Program (SNAP) benefits, affecting millions of Americans who rely on these funds for food. Despite having approximately $6 billion in contingency funds appropriated by Congress for emergencies, USDA stated it would not use these funds, arguing they were unavailable once regular appropriations lapsed. Plaintiffs, including nonprofits, local governments, a union, and a food retailer, filed suit, alleging that USDA’s suspension of benefits was arbitrary, capricious, and contrary to law under the Administrative Procedure Act (APA).The United States District Court for the District of Rhode Island granted a temporary restraining order (TRO) requiring USDA to provide either full or partial November SNAP payments by specified dates. The government chose to provide partial payments but failed to do so in a timely manner, as many recipients would not receive benefits by the court’s deadline. The district court found the government had not complied with its order, both by failing to resolve administrative burdens and by not ensuring timely disbursement. As a result, the court ordered USDA to make full November SNAP payments, including by using funds from the Section 32 fund in combination with contingency funds. The government appealed and sought a stay of the district court’s order.The United States Court of Appeals for the First Circuit reviewed the government’s request for a stay pending appeal. The court held that the government had not met its burden to justify a stay, finding it had failed to show a likelihood of success on the merits or that irreparable harm would result from compliance. The court emphasized the immediate and substantial harm to SNAP recipients if benefits were withheld and denied the government’s motion for a stay. View "Rhode Island State Council of Churches v. Rollins" on Justia Law

Gerardo Martinez was convicted of first-degree murder in Rhode Island for the 2005 killing of Lindsay Ann Burke, with evidence at trial showing a troubled relationship and a violent altercation that ended in Lindsay’s death by stabbing. Martinez’s defense attorney, Mark Smith, obtained a PTSD diagnosis from a forensic psychiatrist but chose not to present this expert testimony at trial. Instead, Smith argued that Martinez lacked premeditation and should be convicted of second-degree murder. The jury found Martinez guilty of first-degree murder, and he was sentenced to life without parole. On direct appeal, the Rhode Island Supreme Court affirmed the conviction and sentence.Martinez then sought post-conviction relief in the Rhode Island Superior Court, claiming ineffective assistance of counsel for Smith’s decision not to present the PTSD-based diminished capacity defense at trial. After a three-day evidentiary hearing, the Superior Court found that Smith’s choices were strategic and not constitutionally deficient, and therefore did not address the issue of prejudice. The Rhode Island Supreme Court denied Martinez’s petition for writ of certiorari. Martinez subsequently filed a federal habeas petition in the United States District Court for the District of Rhode Island, which was dismissed, but a certificate of appealability was granted.The United States Court of Appeals for the First Circuit reviewed whether the Rhode Island court’s denial of post-conviction relief was an “unreasonable application” of Strickland v. Washington under 28 U.S.C. § 2254(d). The First Circuit held that the state court’s decision was reasonable, emphasizing the strategic nature of Smith’s choices and the deference required under federal habeas review. The court affirmed the district court’s dismissal of Martinez’s habeas petition, finding no constitutional deficiency in counsel’s performance. View "Martinez v. Salisbury" on Justia Law