Supreme Court to Hear Key Cases on Contract Fraud, Environmental Reviews, and Corporate Disgorgement

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The case, Feliciano v. Department of Transportation (23-861), will test whether military reservists are entitled to differential pay based solely on their service during a national emergency, or if the service must also be substantively connected to the emergency.

Environmental Reviews Under NEPA

The Court will also hear arguments on the scope of environmental reviews required by the National Environmental Policy Act (NEPA). A group of Utah counties has asked the Court to reverse a decision that blocked federal approval for a $1.5 billion rail line that would transport crude oil. The project was initially halted due to concerns over its downstream environmental impact, which the counties argue was an overly broad interpretation of NEPA requirements. They contend that agencies are only required to study environmental effects that are a “proximate cause” of the project.

This case, Seven County Infrastructure Coalition et al. v. Eagle County et al. (23-975), will examine whether federal agencies must consider downstream impacts that are merely “reasonably foreseeable.” Environmental groups, on the other hand, argue that the law should include all foreseeable impacts to fully inform the public and agencies of a project’s potential consequences.

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Corporate Disgorgement in Trademark Infringement

On Wednesday, the Court will deliberate on whether a court can order the disgorgement of profits from corporate affiliates that were not named in a trademark infringement lawsuit. The case involves Dewberry Group Inc., which was ordered to pay nearly $43 million in disgorged profits after its affiliates generated income from infringing upon Dewberry Engineers Inc.’s trademark. Dewberry Group claims that it should not be held liable for profits made by its affiliates, which were not involved in the infringement.