Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

An employee at a grocery store in Houston, Texas, advocated repeatedly for improved health and safety protocols during the COVID-19 pandemic. She raised concerns about management’s communication regarding workplace exposure incidents, pressed for stricter mask enforcement, and continued to discuss safety matters with coworkers and management as pandemic-related precautions were rolled back. Over time, management’s attitude toward her grew less supportive and more hostile, especially after she filed an unfair labor practice charge with the National Labor Relations Board (NLRB) and encouraged coworkers to participate in the investigation. Following her protected activities, the employee received a written warning, negative performance review, suspension, and ultimately was terminated.The case was first reviewed by an administrative law judge (ALJ) for the NLRB after the employee filed complaints alleging unlawful discrimination and retaliation in violation of Section 8(a)(1), 8(a)(4), and 8(a)(1) of the National Labor Relations Act. After a three-day hearing, the ALJ found that the employer violated Section 8(a)(1) by issuing the written warning and violated Sections 8(a)(4) and 8(a)(1) by suspending and firing her for protected concerted activity. The ALJ ordered reinstatement, removal of unlawful discipline from her record, and compensation for lost earnings and other harms. Both parties filed exceptions, and the Board ultimately affirmed the ALJ’s findings and modified the remedy to include broader make-whole relief, referencing the Thryv, Inc. standard.The United States Court of Appeals for the Fifth Circuit reviewed the NLRB’s order. Applying a deferential standard to factual findings and de novo review to legal conclusions, it found substantial evidence supporting the Board’s determination that the employer acted with unlawful animus and failed to prove it would have disciplined the employee absent her protected conduct. The court denied the employer’s petition for review and granted the NLRB’s cross-application for enforcement, holding that the employer violated Sections 8(a)(1) and 8(a)(4) of the Act, and declined to review the Thryv remedy for lack of jurisdiction. View "Trader Joe's Company v. National Labor Relations Board" on Justia Law

The case involves an attorney who represented a plaintiff in a Fair Credit Reporting Act lawsuit against two defendants. The plaintiff alleged that he was a victim of identity theft, resulting in a fraudulent automobile finance account opened in his name. However, the United States District Court for the Southern District of Texas found that the attorney had not conducted even a minimal investigation before filing suit and sought damages barred by law or based on false factual allegations. The suit was also untimely against at least one defendant, as the plaintiff had discovered the alleged violations more than two years before filing.Initially, the district court sanctioned the attorney and his firm, ordering payment of approximately $33,000 in attorneys’ fees to the defendants under Federal Rule of Civil Procedure 11 and 28 U.S.C. § 1927. On appeal, the United States Court of Appeals for the Fifth Circuit vacated the sanctions, holding that the attorney needed a greater opportunity to defend his pre-suit investigation and that the conduct did not meet the requirements of § 1927, as it did not multiply proceedings.Despite the vacatur, another issue arose when the plaintiff’s appellate counsel submitted a reply brief containing numerous fabricated citations, quotations, and factual assertions, many of which appeared to be generated by artificial intelligence. After issuing a show-cause order and reviewing counsel’s responses, the Fifth Circuit found that the attorney used AI to draft substantial portions of the brief and failed to verify its accuracy. The court also determined that the attorney was not forthcoming in responding to the show-cause order. The Fifth Circuit held that such conduct is “unbecoming a member of the bar” and sanctioned the attorney $2,500 under Federal Rule of Appellate Procedure 46(c) and the court’s inherent authority to discipline attorneys for misrepresentations and abuse of the judicial process. View "Fletcher v. Experian Info Solutions" on Justia Law

A Louisiana pharmacy owned by a licensed pharmacist was investigated by the Drug Enforcement Administration after allegations arose that the pharmacy was filling prescriptions for itself and for patients with “red flags” indicating possible misuse or diversion of controlled substances. The DEA’s investigation focused on several prescriptions, including combinations of opioids and benzodiazepines for various patients, out-of-pocket payments for controlled substances, and a prescription filled by the pharmacist herself written by her physician father, which violated state law prohibiting physicians from prescribing controlled substances to immediate family.Following an agency hearing before an administrative law judge, the DEA’s Administrator adopted the ALJ’s recommendation and revoked the pharmacy’s federal registration to dispense controlled substances. The Administrator concluded that the pharmacy had violated federal regulations and Louisiana law by filling prescriptions without adequately resolving red flags and by filling a prescription written in violation of state law. The pharmacy petitioned for review in the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit found that the DEA misinterpreted and misapplied its own regulations and state law. The court held that 21 C.F.R. § 1306.04(a) requires a pharmacist to “knowingly” fill an invalid prescription, which the DEA had not shown, and that a violation of the state-law standard of care is not, by itself, a violation of federal regulations. The court also held that the Louisiana law at issue did not apply to pharmacies. Because the DEA’s order rested on erroneous interpretations of governing regulations and state law, the Fifth Circuit vacated the deregistration order and remanded the matter for further proceedings. View "Neumann's Pharmacy v. Drug Enforcement Administration" on Justia Law

A serious car accident occurred when a teenager, driving at excessive speeds while racing another vehicle, lost control and crashed, leaving the plaintiff, a sixteen-year-old passenger, with catastrophic injuries resulting in paraplegia. The plaintiffs, the injured teen and her mother, filed suit against a wide array of parties, including the two teenage drivers, various family members, city officials, law enforcement, fire department personnel, paramedics, two cities, a railroad company, and county prosecutors. The claims included negligence, allegations of discrimination and violations of civil rights under 42 U.S.C. § 1983, and claims related to the handling of the accident’s aftermath and investigation.In the United States District Court for the Eastern District of Texas, the court adopted a magistrate judge’s recommendation and dismissed all claims with prejudice against all defendants except one, whose claims were dismissed without prejudice. The district court found the complaint to be vague, conclusory, and “riddled with pleading deficiencies.” It determined that claims against certain defendants were time-barred, that some defendants were not state actors for purposes of § 1983, that the plaintiffs failed to state claims upon which relief could be granted, and that certain claims were duplicative or failed as a matter of law. The plaintiffs sought the opportunity to replead, which the district court denied, finding amendment would be futile.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s dismissals de novo. The appellate court affirmed the district court’s judgment, holding that all claims were properly dismissed with prejudice except for those against the county prosecutors, which were modified to be dismissed without prejudice due to Eleventh Amendment immunity and lack of standing. The Fifth Circuit found no error or abuse of discretion in the lower court’s rulings and declined to remand for further amendment. View "Quiroz v. Hernandez" on Justia Law

Shirley and Ronald Cooper experienced a sewage backup in their newly built Mississippi home in 2022, resulting in significant damage. Their residence used a grinder pump system to handle household wastewater, which then pumped the waste to a city utility line. At the time of the incident, they held a homeowners policy with State Farm Fire and Casualty Insurance Company, which included a standard exclusion for damage caused by water or sewage from outside the premises, but they had also purchased a limited endorsement for backup of sewer or drain losses. After the incident, State Farm paid the Coopers under the dollar-capped endorsement. The Coopers claimed that State Farm’s adjuster, Dilley, represented that the primary policy would also apply, leading them to expend additional resources on remediation.After the Coopers sued State Farm for breach of contract, detrimental reliance, and other related claims, State Farm removed the case to the United States District Court for the Southern District of Mississippi. The Coopers voluntarily dismissed their claims against the adjuster. The district court granted summary judgment for State Farm, finding no genuine dispute that the source of the sewage was off-premises and concluding that the policy’s exclusion unambiguously barred coverage. The court also rejected the detrimental reliance claim, holding that any reliance on the adjuster’s statements was unreasonable given the clear policy language.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the summary judgment decision de novo. The Fifth Circuit affirmed the district court’s judgment, holding that Mississippi law imputes constructive knowledge of policy terms to insureds and that reliance on an agent’s contradictory statements is unreasonable when the policy language is clear. The court also found no genuine factual dispute regarding the off-premises source of the sewage, and summary judgment for State Farm was proper. View "Cooper v. State Farm" on Justia Law

An airline employee, who began working in 1996 and served as a union representative, was terminated in 2023 after allegedly violating both company policy and the terms of a Last Chance Agreement (LCA) he had previously entered into. The LCA was signed following an earlier incident in which he admitted to theft, and it stipulated that any further violation of company policy during its term would result in immediate termination. In October 2023, the employee entered a restricted area in violation of company policy, leading to his discharge.Following his termination, the employee filed a lawsuit in the United States District Court for the Northern District of Texas, alleging retaliatory termination under the Railway Labor Act (RLA) and asserting that his termination was motivated by anti-union animus due to his activities as a union representative. The airline moved to dismiss the complaint, arguing that the dispute was a “minor” one under the RLA, which meant it was subject to mandatory arbitration as outlined in the collective bargaining agreement (CBA), thus depriving the federal court of subject-matter jurisdiction. The district court agreed and granted the airline’s motion to dismiss under Rule 12(b)(1), finding that the dispute was minor and did not fall within any exceptions allowing for judicial intervention.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed whether the district court properly dismissed the case for lack of subject-matter jurisdiction. The Fifth Circuit affirmed the district court’s decision, holding that the dispute was a minor one under the RLA because it could be resolved by interpreting the LCA and CBA, and that none of the exceptions to exclusive arbitral jurisdiction applied. The court also found no sufficient evidence of anti-union animus to invoke an exception to arbitral exclusivity. View "Reardon v. American Airlines" on Justia Law

Police officers responded to a call about a man, later identified as Xavier Leonard, who was found injured, disoriented, and partially clothed on the ground in a residential neighborhood. Leonard was unresponsive to questions and exhibited signs of being under the influence of drugs. After determining that Leonard lived nearby, officers noticed an open side door at his house and observed signs inside, such as a broken coffee table, that suggested possible violence or distress. The officers announced their presence and, receiving no response, entered the home to check for potential victims or suspects. While inside, they observed drugs and firearms, left after a brief search, and then obtained a search warrant based on their observations.Leonard was charged in the United States District Court for the Eastern District of Texas with firearm and drug offenses. He requested a motion to suppress the evidence obtained from his home. After his initial attorney declined to file the motion, deeming it frivolous, Leonard was appointed new counsel who proceeded with the suppression motion. The magistrate judge recommended granting the motion, finding that the evidence should be excluded. The district court adopted this recommendation and suppressed the evidence.The United States Court of Appeals for the Fifth Circuit reviewed the case after the government appealed. The government did not challenge the Fourth Amendment issue but argued that the exclusionary rule did not apply due to the good faith exception. The Fifth Circuit held that under its “close enough” doctrine, the officers’ actions were objectively reasonable given the circumstances, and the good faith exception precluded exclusion of the evidence. The court reversed the district court’s decision and remanded the case for further proceedings. View "United States v. Leonard" on Justia Law

A former employee of a bank holding company, who participated in a company-sponsored retirement savings plan, brought suit alleging that the bank, the plan’s administrative committee, and a subsidiary breached their fiduciary duties under ERISA, resulting in financial loss to his plan distribution. After the employee’s separation and payout, the company amended the plan in early 2024 to add a retroactive arbitration clause that required all claims to proceed individually in arbitration, barred class or representative actions, and included a jury trial waiver and a provision that only individual relief could be awarded.The United States District Court for the Western District of Texas denied the defendants’ motion to compel arbitration, holding that the arbitration agreement was not valid under Texas law due to lack of consideration. The company appealed, arguing that the plan’s consent, not the individual participant’s, was sufficient to bind parties to arbitration for claims brought on behalf of the plan under 29 U.S.C. § 1132(a)(2), and that the arbitration clause was enforceable. The company also preemptively addressed potential objections under the effective vindication doctrine and claims that the arbitration provisions unlawfully limited statutory remedies.The United States Court of Appeals for the Fifth Circuit reversed the denial of arbitration as to the § 1132(a)(2) claim, holding that the plan’s consent through its unilateral amendment provision was sufficient to bind the participant to arbitration for plan-based claims, but affirmed the denial as to the participant’s individual claims because he had not consented. The court further held that the arbitration clause’s prohibition on representative actions and its limitation to individual relief violated the effective vindication doctrine, and voided the standard-of-review provision to the extent it applied to fiduciary-breach claims. The case was remanded for the district court to determine whether the offending arbitration provisions could be severed. View "Parrott v. International Bank" on Justia Law

In 1965, individuals filed a class action lawsuit against the public schools in St. Mary Parish, Louisiana, seeking to end segregation and secure injunctive relief. The district court granted an injunction requiring desegregation and oversight, with subsequent orders and modifications over the years as the parties and courts responded to compliance issues and changes in the law. After a period of inactivity, new representatives and counsel stepped in around 2018–2019, seeking to further modify the original injunction. The School Board responded by filing motions challenging the procedural propriety of the new plaintiffs, the court’s subject matter jurisdiction, and the ongoing validity of the injunction.The United States District Court for the Western District of Louisiana allowed the substitution of new plaintiffs, denied the Board’s motions to dismiss, and recertified the class, despite acknowledging factors that weighed against doing so. The Board did not appeal immediately but later renewed its objections, moving to dissolve the decades-old injunction and to strike or dismiss the new plaintiffs’ motions for further relief. The district court denied the Board’s motions to dismiss and to strike, and clarified that the Board could not present certain arguments under Rule 60(b)(5) at an upcoming hearing. The Board appealed these rulings.The United States Court of Appeals for the Fifth Circuit reviewed whether it had appellate jurisdiction under 28 U.S.C. § 1292(a)(1), which allows interlocutory appeals of orders granting, continuing, modifying, or refusing to dissolve injunctions. The Fifth Circuit held that the district court’s orders did not have the practical effect of continuing, modifying, or refusing to dissolve the injunction, but merely maintained the status quo pending further proceedings. As such, the appellate court determined it lacked jurisdiction to consider the appeal and dismissed it for want of appellate jurisdiction. View "Navy v. Sch Bd of St. Mary Prsh" on Justia Law

Fieldwood Energy operated an offshore platform near Louisiana and contracted with United Fire and Safety to provide fire watch services for repairs. Fieldwood also separately chartered a liftboat from Aries Marine to support the work, which included housing and crane services for the contractors. During the project, the liftboat listed and capsized, leading to personal injuries for a United Fire employee. Aries Marine, facing liability claims, sought indemnification from United Fire based on a cross-indemnification clause in the 2013 Master Services Contract (MSC) between Fieldwood and United Fire.The United States District Court for the Eastern District of Louisiana considered cross-motions for summary judgment on whether the MSC was a maritime contract. The district court found that the contract was not maritime in nature, applying Louisiana law via the Outer Continental Shelf Lands Act (OCSLA), which incorporates the law of the adjacent state unless federal maritime law applies. Louisiana’s Oilfield Anti-Indemnity Act invalidated the indemnity provisions. Aries’s motions for reconsideration were denied, leading to this appeal.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s grant of summary judgment de novo. The appellate court agreed that the MSC did not require or contemplate that a vessel would play a substantial role in the contracted fire watch services. It found that only Fieldwood, not United Fire, expected the liftboat’s substantial involvement, and that such a shared expectation was necessary under circuit precedent to create a maritime contract. Because the parties did not share this expectation, the contract was not maritime, and Louisiana law voided the indemnity provisions. The Fifth Circuit affirmed the district court’s judgment. View "Aries Marine v. United Fire & Safety" on Justia Law