Latest 2 Cases: Greene v. Harley-Davidson, Inc. (Class Action), Schmitt v. Kaiser Foundation Health Plan of Washington (Health Law)

What Happened in Kahler v. Kansas?

SHERRY F. COLB

Cornell law professor Sherry F. Colb describes how the U.S. Supreme Court purported to allow the state of Kansas to substitute one insanity defense for another, but in fact approved its abolishment of the insanity defense altogether. Colb explains the difference between the insanity defense—an affirmative defense to the commission of a crime—and facts that negate mens rea—the mental element of a crime. Colb also notes how in dissent, Justice Stephen Breyer made a case for veganism, albeit probably inadvertently.

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Greene v. Harley-Davidson, Inc.

Docket: 20-55281

Opinion Date: July 14, 2020

Judge: Kenneth K. Lee

Areas of Law: Class Action

The Ninth Circuit reversed the district court's order granting plaintiff's motion to remand to state court because it effectively required Harley-Davison to provide evidence that the proffered punitive damages amount is probable or likely. The question presented on appeal is if the defendant relies on potential punitive damages to meet the amount-in-controversy requirement for removal under the Class Action Fairness Act (CAFA), what is the defendant’s burden in establishing that amount? The panel held that the defendant must show that the punitive damages amount is reasonably possible. In this case, Harley-Davidson met its burden of showing that the amount in controversy exceeds $5 million under CAFA by establishing that the proffered punitive/compensatory damages ratio is reasonably possible.

Schmitt v. Kaiser Foundation Health Plan of Washington

Docket: 18-35846

Opinion Date: July 14, 2020

Judge: Nguyen

Areas of Law: Health Law, Insurance Law

Plaintiffs, who have hearing loss severe enough to qualify them as disabled, filed suit claiming that Kaiser's health insurance plan's categorical exclusion of most hearing loss treatment discriminates against hearing disabled people in violation of Section 1557 of the Patient Protection and Affordable Care Act (ACA). The district court ruled that Kaiser's plans do not exclude benefits based on disability because the plans treat individuals with hearing loss alike, regardless of whether their hearing loss is disabling. The Ninth Circuit agreed with the district court that plaintiffs have failed to state a plausible discrimination claim. The panel explained that the ACA specifically prohibits discrimination in plan benefit design, and a categorical exclusion of treatment for hearing loss would raise an inference of discrimination against hearing disabled people notwithstanding that it would also adversely affect individuals with non-disabling hearing loss. However, the exclusion in this case is not categorical. The panel stated that, while Kaiser's coverage of cochlear implants is inadequate to serve plaintiffs' health needs, it may adequately serve the needs of hearing disabled people as a group. Therefore, the panel affirmed the district court's dismissal of the second amended complaint. The panel reversed the district court's dismissal without leave to amend and remanded.