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712 F.3d 805
3rd Cir.
2013
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Background

  • Indictment in Oct 2009 charged Manzo with six counts: four conspiracy/attempted extortion under Hobbs Act and two Travel Act bribery counts.
  • District Court dismissed Hobbs Act counts, ruling Manzo was not acting “under color of official right” as a candidate.
  • Travel Act charges remained; the court read New Jersey bribery statute broadly to cover non-officeholders.
  • Government appealed the Hobbs Act dismissal; Third Circuit affirmed the Hobbs Act dismissal on interlocutory review, remanding.
  • Subsequently, the District Court, on reconsideration, dismissed Travel Act charges as not qualifying under New Jersey bribery law, and all charges were dismissed.
  • Manzo then filed a pro se Hyde Amendment motion for attorney fees and expenses, which the District Court denied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Hyde Amendment fee shifting requires prosecutorial misconduct? Manzo claims prosecutorial misconduct under Hyde Amendment. Government argues standard is an objective, not mind-reading, test of vexatious/frivolous/bad faith conduct. Abuse of discretion standard; not proven.
Whether continued Travel Act prosecution after Hobbs Act dismissal was vexatious/frivolous/bad faith? Prosecution continued despite Hobbs Act ruling, indicating bad faith. Position was objectively reasonable; not vexatious or frivolous. Not vexatious or frivolous; reasonable belief supported by district court ruling.
Whether government knew allegations were false and acted in bad faith? Government knew indictments were false based on cooperator testimony. Recordings and facts supported plausible theories; not knowingly false. Insufficient to show bad faith; not abuse of discretion.
Whether conflicts of interest and recusal considerations render the prosecution vexatious? DOJ recusal failures due to political connections. Objective Hyde standard governs; no demonstrated objective bad faith. No abuse; prosecution not vexatious.
Whether alleged prosecutorial missteps (grand jury evidence; Jencks) amount to Hyde Amendment grounds? Failures to present exculpatory evidence and preserve FBI instructions. Even if true, errors are prosecutorial, not Hyde grounds; would not show vexatiousness. Not sufficient to justify fee award.

Key Cases Cited

  • United States v. Lain, 640 F.3d 1134 (10th Cir. 2011) ( Hyde Amendment review requires objective showing of misconduct)
  • United States v. Beeks, 266 F.3d 880 (8th Cir. 2001) ( abuse of discretion standard for Hyde matters)
  • United States v. Wade, 255 F.3d 833 (D.C. Cir. 2001) ( framing of vexatious/frivolous/bad faith in Hyde context)
  • United States v. Gilbert, 198 F.3d 1293 (11th Cir. 1999) (frivolous vs. vexatious distinctions; allowed reasonable government arguments)
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Case Details

Case Name: United States v. Louis Manzo
Court Name: Court of Appeals for the Third Circuit
Date Published: Mar 25, 2013
Citations: 712 F.3d 805; 2013 WL 1189017; 2013 U.S. App. LEXIS 5871; 12-2294
Docket Number: 12-2294
Court Abbreviation: 3rd Cir.
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    United States v. Louis Manzo, 712 F.3d 805