Federal

Summary: This case centers on the Trump Administration's new interpretation of incidental takings under the Migratory Bird Treaty Act (MBTA). In December 2017, the Principal Deputy Solicitor of the U.S. Department of the Interior (DOI) issued a memorandum that countered almost 50 years of the agency’s interpretation of “takings” and “killings” under the MBTA (the "Jorjani Opinion"). According to the DOI in that opinion, the MBTA does not prohibit incidental takes or kills because the statute applies only to activities specifically aimed at birds. Environmental interest groups and various states brought three now-consolidated actions to vacate the memorandum and subsequent guidance issued in reliance on the memorandum. Both parties moved for summary judgment. In essence, the question before the court is whether DOI’s interpretation of the MBTA must be set aside as contrary to law under the Administrative Procedure Act (APA) or upheld as a valid exercise of agency authority. The court first observed that, from the early 1970s until 2017, the DOI interpreted the MBTA to prohibit incidental takes and kills, imposing liability for activities and hazards that led to the deaths of protected birds, irrespective of whether the activities targeted birds or were intended to take or kill birds. To conserve migratory birds and ensure compliance with the MBTA’s prohibition on “incidental take,” the DOI's Fish & Wildlife Service (FWS) used a range of strategies: sending companies notice of the risks their facilities and equipment posed to migratory birds; issuing industry guidance; informally negotiating remediation efforts; and issuing permits authorizing takes. In fact, the court noted that the agency prioritized a cooperative approach with industry over enforcement actions. In 2015, the DOI formalized this approach by undergoing a rulemaking process regulating incidental take. In early 2017, the DOI's Solicitor then issued a memorandum that reaffirmed the long-standing interpretation that the MBTA prohibited incidental take that became known as the "Tomkins Opinion." Once presidential administrations changed and Tomkins departed, the new Principal Deputy Solicitor issued a new memorandum that stated any agency comments, recommendations, or actions not be based on the principle that the MBTA prohibited incidental take (the Jorjani Opinion). This triggered the instant lawsuits by conservation organizations and several states. On July 31, 2019, the lower court found that the plaintiffs sufficiently demonstrated standing and denied the DOI's motion to dismiss. On appeal here, this court first noted that both parties agree with longstanding precedent that the MBTA's misdemeanor provision creates strict liability. In contrast, the Jorjani Opinion contends that the criminal penalty provisions under the MBTA is limited to only acts directed at birds and those activities whose purpose is to "render an animal subject to human control" like hunting or capturing. In reviewing the Jorjani Opinion under the lessened deference standard afforded by administrative law, this court found the DOI overstated the any conflicts in interpretation of the MBTA among circuit courts (a "dramatized representation"). In addition, the court found the Jorjani Opinion "is a recent and sudden departure from long-held agency positions backed by over forty years of consistent enforcement practices." The court found the Jorjani Opinion was an unpersuasive interpretation of the MBTA's unambiguous prohibition on the killing of birds and is contrary to the plain language of the law itself. Such an interpretation runs contrary to legislative history, decades of enforcement practices by the DOI, and caselaw. Because the agency's action was held unlawful under the APA, the court found the only appropriate remedy was vacatur. Thus, Plaintiffs’ motions for summary judgment were granted, and Interior’s motion was denied.

Summary: Petitioners seek review of a decision and order of the USDA/APHIS determining that they violated various provisions of the Animal Welfare Act (“AWA”) and its implementing regulations, imposing civil penalties, and revoking the exhibitor license granted to Terranova Enterprises, Inc. Petitioners were licensees who provide wild animals like tigers and monkeys for movies, circuses, and other entertainment. In 2015 and 2016, APHIS filed complaints against petitioners that they willfully violated multiple provisions of the AWA and knowingly violated a cease and desist order issued in 2011 to avoid future violations of the AWA. After consolidating the complaints, the Administrative Law Judge ("ALJ") found that petitioners willfully committed four violations, so the ALJ issued a cease and desist order, suspended petitioners' license for 30 days, and assessed a $10,000 penalty and an $11,550 civil penalty for failing to obey the prior cease and desist order. On appeal by both parties to the Judicial Officer of the USDA, petitioners' exhibitor license was revoked and the penalties were increased to $35,000 and $14,850, respectively. On appeal here to the Fifth Circuit, petitioners claim that the determinations of the Judicial Officer were not supported by substantial evidence and that she abused her discretion in revoking their exhibitor license. This court found there was sufficient evidence to support the violations, including failing to allow APHIS officials to conduct compliance investigations and inspections, faulty tiger enclosures, insufficient distance/barriers between tigers and the public, failure to make an environmental enrichment plan, and failings involving tiger enclosure and protection from inclement weather, among other things. With regard to petitioners' claim that the Judicial Officer abused her discretion in revoking the exhibitor license, this court court found that petitioners committed more than one willful violation of the AWA so revocation was not unwarranted or without justification. The court concluded that the USDA Secretary’s order was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law, and that it was supported by substantial evidence. Therefore, the court denied the petition for review.

Summary: Plaintiff Cisneros purchased a Shih Tzu puppy named "Giant" from Petland Kennesaw, a Kennesaw, Georgia franchise of Petland, Inc. She received a certificate of "veterinary inspection" and a limited health guarantee at the time of purchase. Several days later, problems arose with the puppy and she brought the dog back to the Petland affiliated veterinarian who prescribed antibiotics without making a diagnosis. Shortly thereafter, an emergency pet visit revealed the dog suffered from parvovirus. Cisneros called Petland who told her to take the dog back to the Petland vet if she wanted a refund. She did so and the dog died several days later. Because the State of Georgia requires reporting of parvovirus, Cisneros received a report after the dog died, but she learned the dog's organs had been removed (an uncommon post mortem practice). As a result, plaintiff alleged that actions were the intended result of a nationwide conspiracy involving Petland and its affiliates to sell unhealthy puppies from "puppy mills" where health conditions are rubber stamped by a network of "preferred veterinarians" and buyers are deceived by sales documents that distract from the fraud. Plaintiff broadly asserted three claims: (1) a violation of the federal RICO statute, 18 U.S.C. § 1962(c); (2) a conspiracy to violate the federal RICO statute, 18 U.S.C. § 1962(d); and (3) with respect to a Georgia subclass of persons who purchased a cat or dog from a Petland franchise in Georgia from July 2013 to the present, a violation of Georgia's state RICO statute, O.C.G.A. § 16-14-4. The district court dismissed Cisneros's federal causes of action for failure to state a claim, pursuant to Federal Rule of Civil Procedure 12(b)(6), and declined to exercise supplemental jurisdiction over her remaining state-law claim, pursuant to 28 U.S.C. § 1367(c). After applying the six-fold test for a private plaintiff suing under the civil provisions of RICO, this Court found chiefly that Cisneros has alleged no facts that plausibly support the inference that the defendants were collectively trying to make money in pet sales by fraud, which is a common purpose sufficient to find a RICO enterprise. Cisneros was required to allege not just that Petland Kennesaw had a fraudulent purpose, but that it was a common purpose, formed in collaboration with Petland, PAWSitive, and the preferred veterinarians. In the end, Cisneros has alleged only that Petland operates a franchise business like any other franchisor. Even assuming that Cisneros has adequately pled fraud on the part of Petland Kennesaw, she has not alleged that its predicate acts constituted a pattern of racketeering activity. The action was affirmed in part, and vacated and remanded in part.

Summary: Several Indian tribes, environmental organizations, and animal-welfare groups filed suits claiming that Fish and Wildlife Service (FWS) violated Endangered Species Act (ESA) and Administrative Procedure Act (APA) by issuing final rule “delisting” or removing grizzly bear population in Greater Yellowstone Ecosystem from threatened species list. The distinct population segment of the Yellowstone grizzly bear population has been so successful under the ESA that the FWS has been trying to delist it for almost 15 years, according to the court. This specific case was triggered by a 2017 D.C. Circuit case (Humane Society v. Zinke) that requires the FWS to address the impact that removing a DPS from protection under the ESA would have on the remaining listed species. At the time that ruling was issued, the FWS had already published a 2017 Rule that sought to delist the grizzly bear Yellowstone DPS. This then resulted in cross motions for summary judgment in district court. The district court granted summary judgment for the plaintiffs and vacated the 2017 rule, remanding it to the FWS. This remand resulted in a second delisting rule by FWS that was again vacated and remanded by the district court, demanding consideration of several discrete issues by FWS. The FWS now appeals that remand for consideration that require the study of the effect of the delisting on the remaining, still listed, grizzly population in the coterminous 48 states, as well as further consideration of the threat of delisting to long term genetic diversity of the Yellowstone grizzly. In addition, states in the region of the DPS (Idaho, Montana, and Wyoming) as well as some private hunting and farming organizations have intervened on the government's behalf. On appeal, the Court of Appeals first found that it had authority to review the district court order and that the intervenors had standing to pursue an appeal. As to the order by the district court that the FWS needs to conduct a "comprehensive review" of the impact of delisting on the remnant grizzly population, the appellate court vacated that portion of the order using the phrase "comprehensive review." Instead, it remanded to the lower court to order a "further examination" on the delisting's effects. The court also agreed with the district court that FWS' 2017 Rule was arbitrary and capricious where it had no concrete, enforceable mechanism to ensure the long-term genetic viability of the Yellowstone DPS. Finally, the Court of Appeals agreed with the district court order to mandate a commitment to recalibration (changes in methodology to measure the Yellowstone grizzly bear population) in the rule since that is required by the ESA. The Court affirmed the district court’s remand order, with the exception of the order requiring the FWS to conduct a “comprehensive review” of the remnant grizzly population.

Summary: Wildlife in Need and Wildlife in Deed, Inc. ("WIN") is a zoo located in Charlestown, Indiana owned by Timothy Stark and Melissa Lane that houses exotic and endangered animals, including Big Cats like lions, tigers, and hybrids. WIN exhibits Big Cats to the public through hands-on encounters called “Tiger Baby Playtime” so Stark routinely declaws Big Cat cubs in his possession so he can handle them easier, not for any medical reason. Stark admitted to declawing "about a dozen cubs" in 2016 alone. People for the Ethical Treatment of Animals, Inc. ("PETA") filed this lawsuit against Stark and Lane and their WIN zoo alleging that the defendants harassed and wounded Big Cats in violation of the federal Endangered Species Act (ESA). Specifically, this case asks whether certain animal exhibitors have "taken" various species of Big Cats by declawing them and prematurely separating them from their mothers to use in hands-on, public interactions. By granting PETA's motion for Partial Summary Judgment, this court concludes that such conduct constitutes a "taking" and thus violates the ESA. The court noted that PETA's motion for preliminary injunction was granted in 2017, restraining defendant from declawing any Big Cats absent a medical necessity supported by a veterinarian's opinion. Then, on February 12, 2018, the court preliminarily enjoined the WIN Defendants from declawing their Big Cats, prematurely separating Big Cat Cubs from their mothers, and using Cubs in Tiger Baby Playtime. The court previously concluded that declawing constitutes a “taking” under the ESA at the preliminary injunction stage, and now found "there is no good reason to disturb that conclusion." Thus, the court again concludes the WIN Defendants' declawing constitutes a “taking” under the ESA: it “harasses” Big Cats by creating a likelihood of significantly disrupting normal behavioral patterns; it “harms” Big Cats by actually injuring them; and it “wounds” Big Cats by inflicting a physical injury. In addition to granting the permanent injunction, the court also directed PETA to file a motion to appoint a special master and identify a reputable wildlife sanctuary for the animals housed at WIN.

Summary: Seven organizations dedicated to protecting the animals, people, and environments that suffer due to industrial animal agriculture filed a lawsuit against the U.S. Department of Agriculture (USDA) challenging its decision to reduce oversight at pig slaughterhouses and eliminate limits on the slaughter speeds.

Summary: PetConnect Rescue, Inc., Lucky Pup Dog Rescue.com and Sarah Gonzalez (“Plaintiffs”) alleged that the Defendants fraudulently represented dogs that the Defendants sold as rescue animals in order to circumvent California law prohibiting the sale of non-rescue dogs in pet stores. On April 6, 2020, Plaintiffs filed an amended complaint against the Defendants alleging trademark infringement and dilution under the Lanham Act, unfair business practices under California’s Unfair Competition Law (“UCL”) and violations of California’s Consumer Legal Remedies Act (“CLRA”), fraud, and accounting. Several Defendant filed motions to dismiss and to strike sections of the amended complaint. The United States District Court for the Southern District of California found that Plaintiff PetConnect alleged a cognizable injury in fact in that the Defendants’ use of an infringing mark harmed Plaintiff PetConnect Rescue’s reputation and caused consumer confusion. The Defendants’ Pet Connect Rescue, Inc. brokered the sale of dogs from puppy mills rather than rescue dogs which affected Plaintiff PetConnect’s reputation. The Court also found that Plaintiff PetConnect Rescue raised a claim within the Lanham Act’s zone of interests because the Lanham Act’s protections extended to non-profit organizations’ use of marks, even when those marks do not accompany a sale. The Court refused to dismiss Plaintiffs claims regarding trademark infringement. The Court also refused to dismiss the Plaintiff’s claims under the Lanham Act because the matter of whether Plaintiff’s mark was distinct and had acquired a secondary meaning was a matter more appropriate when the evidentiary record becomes further developed. As for the Unfair Competition claim, the Court found that the Plaintiffs had alleged sufficient facts to state a UCL violation. The Court subsequently rejected the Defendants’ motions to strike thirty-four lines or phrases from the amended complaint because Plaintiff’s use of the terms “puppy mill,” and the allegations that Defendants operate “fake” entities that “induce” purchases, reflected Plaintiff’s allegations of fraud and misrepresentation. The Court found that the Plaintiffs’ references were pertinent to the Plaintiff’s allegations. The Court ultimately denied each of the Defendant’s motions to dismiss and strike.

Summary: Appellants consisting of conversation organizations and a safari guide challenged a series of actions of the U.S. Fish and Wildlife Service (“FWS”) governing imports of sport-hunted animal trophies from Africa. The Appellants challenged certain findings that the Service made allowing animal trophies to be imported. The Court had reviewed a similar set of findings in another case and concluded that they were legislative rules illegally issued without notice and comment. FWS subsequently withdrew all its findings that were issued without notice and comment including the ones that were challenged by the Appellants in a subsequent memorandum. The Appellants still desired to contest the withdrawn findings. The Appellants alleged that it was illegal for the FWS to abandon its prior findings without engaging in APA informal rulemaking and that it was illegal for the FWS to announce its intent to the make the necessary findings through informal adjudications in the future. The Appellant’s claims fell into three categories: (1) challenges to the 2017 Zimbabwe findings that sport-hunting of elephants would enhance the survival of the species; (2) challenges to the memorandum by the FWS withdrawing their prior findings; and (3) challenges to the memorandum’s announcement that the FWS intends to making findings on a case-by-case basis when considering individual permit applications. The Court found that since the FWS had withdrew the 2017 findings, they no longer caused the appellants any injury which made any challenges to them moot. The Appellants attempted to argue that the flaws in the 2017 Zimbabwe elephant finding were capable of repetition yet would evade review. The Court rejected this argument. As for the second challenges regarding the memorandum’s withdrawal of its prior findings, the Court found that the withdrawal caused no injury to the Appellants. The Court rejected the challenges to the memorandum’s announcement that the FWS intended to make findings on a case-by-case basis. Ultimately the Court affirmed the district court’s judgment.

Summary: Individual elephant sport hunters and their hunting organizations (“Plaintiffs”) filed suit against the United States Fish and Wildlife Service (the “Service”) seeking to import their sport-hunted elephant trophies from Africa into the United States. The Plaintiffs moved for a preliminary injunction requiring the Service to process pending and subsequently filed permit applications. The African Elephant is listed as a threatened species under the Endangered Species Act (“ESA”) and is also a species that is regulated by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). All African elephant trophy imports require the Service to make an enhancement finding, meaning that the killing of the trophy animal will enhance the survival of the species, and issue an ESA permit. Additionally, certain African elephant trophy imports require a non-detriment finding and a CITES import permit. Historically, the Service made periodic countrywide enhancement and non-detriment findings, however, this came to a halt due to a Presidential tweet surrounding media criticism over the Service’s decision to lift the suspension on Zimbabwe’s ESA enhancement finding. The Court found that injunctive relief was not warranted because the Plaintiffs failed to show irreparable harm as to any Plaintiff. The individual Plaintiffs argued that they had suffered both emotional harm and economic harm. However, the Plaintiffs were on notice that their applications could take a significant amount of time to process. Additionally, the emotional distress claimed by the Plaintiffs would be alleviated when the Service issues a decision either granting or denying their permit applications, therefore, the harm that the Plaintiffs were claiming was not irreparable. The Court found that the individual hunter Plaintiffs’ alleged emotional and economic injuries were insufficient to warrant a preliminary injunction. The organizational Plaintiffs argued that they each were suffering irreparable harm derivatively because the Service’s delay in processing permit applications would decrease the popularity of sport hunting in Africa and cause a decrease in funding for conservation efforts. The problem was that the organizational Plaintiffs offered no proof to substantiate this argument. The Court ultimately held that in light of the disruptions caused by COVID-19 and the diminished capacity of the Service to process permit applications during this unprecedented time, it would be unwise and not in the public interest to order the expeditious processing of sport trophy permit applications. The Court denied Plaintiffs’ Motion for a Preliminary Injunction.

Summary: The U.S. Fish and Wildlife Service ("Service") designated 764,207 acres in New Mexico and Arizona as critical habitat for the jaguar pursuant to the Endangered Species Act. The area was divided into six individual units. Units 5 and 6 were the ones at issue. Plaintiffs filed suit contending that the Service’s designation of Units 5 and 6 as critical habitat was arbitrary and capricious. The district court ruled in favor of the Service and this appeal followed. There was no concrete evidence that jaguars were present in Units 5 and 6 at any time before 1995. The Service’s reliance on sightings in 1995, 1996, and 2006 to support a conclusion of occupation in 1972 was not based on expert opinion. It was purely speculative. The Court agreed with the Plaintiffs that the Service’s designation of Units 5 and 6 as occupied critical habitat was arbitrary and capricious. The Court further found that in order for an unoccupied area to be designated as a critical habitat, the Service must first find that the designation of the occupied areas is inadequate to ensure conservation of the species. The Service addressed all units together, finding that to the extent they were occupied, they were essential for the conservation of the species. The Court ultimately found that the Service did not follow its own regulations or give a rational explanation for failing to do so and as a result, its designation of Units 5 an 6 as critical habitat was arbitrary and capricious. The decision of the district court was reversed and remanded.