Search

Tesla v Pelinkovic: Crypto Partnership Claim Dismissed for Failure to Plead Joint Venture Elements

The Second Circuit affirmed dismissal of Matthew Tesla's lawsuit against Brazilian Jiu-Jitsu instructor Doug Pelinkovic, rejecting Tesla's claim that the two formed a crypto investment partnership or joint venture. The federal court in the Southern District of New York found that Tesla failed to plead essential elements of partnership under New York law, including failure to contribute capital, lack of commingled property, no evidence of joint management or control, and an insufficient "backstop losses" offer. The court held that Tesla's contributions amounted to "an act of friendship, not partnership."

Circuit Splits from March 2026: Appellate Court Disagreements on Qualified Immunity, ADA, First Step Act

The Congressional Research Service published a Legal Sidebar summarizing circuit splits that emerged from U.S. Courts of Appeals decisions in March 2026. Three circuit conflicts are discussed: the Eleventh Circuit's split with the Fifth and Tenth Circuits on qualified immunity and personal liability under 42 U.S.C. § 1981 and the FMLA; the Eleventh Circuit's split with the Fifth Circuit on Olmstead claims under Title II of the ADA for individuals at risk of institutionalization; and the Second Circuit's split with the Ninth Circuit on whether First Step Act time credits can reduce the period of supervised release under 18 U.S.C. § 3632(d)(4). The report does not create new obligations but tracks appellate disagreement on federal law interpretation.

Carter v. Dupuy - Excessive Force, Qualified Immunity

The Fifth Circuit reversed the district court's denial of summary judgment for defendants Chad Dupuy and Sheriff Jason Ard on plaintiff Amanda Carter's Fourth Amendment excessive force claim. The court held that Dupuy's actions—grasping Carter's arm, attempting to drag her through the doorway, and briefly pushing her out of the office—constituted de minimis force that was not clearly excessive or unreasonable under the circumstances. The court applied the Graham v. Connor totality-of-circumstances test, finding Dupuy entitled to qualified immunity because no constitutional violation occurred when the force was minimal, lasted at most four seconds, and ceased immediately once Carter was outside.

G.H. v. Sotomayor - School Board Employees' Demurrer Affirmed

The Virginia Court of Appeals affirmed the Circuit Court of the City of Virginia Beach's judgment sustaining demurrer to G.H.'s second amended complaint. The court found the claims for gross negligence and violation of 42 U.S.C. § 1983 legally insufficient. Regarding gross negligence, the actions of bus driver assistant Avila were not reasonably foreseeable such that liability could attach to the employee defendants. Regarding the § 1983 claim, the court found the defendants were not deliberately indifferent to G.H.'s Fourteenth Amendment rights. This is a non-precedential memorandum opinion.

Cox Communications, Inc. v. Sony Music Entertainment - Contributory Copyright Infringement

The Supreme Court ruled that Cox Communications could not invoke the DMCA safe-harbor defense based on its efforts to reduce infringement because an earlier Fourth Circuit decision had foreclosed that defense for the relevant period. The Court clarified the standards for secondary copyright liability, emphasizing that a service provider is only contributorily liable if it intended the service be used for infringement, either through active inducement or because the service is tailored to infringement with no substantial noninfringing uses.