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

Plaintiff brought an age discrimination suit against her former employer and at issue, on appeal, was whether plaintiff's claim was time barred. The district court held that plaintiff did not experience an adverse employment action until she was finally terminated on January 2, 2008. In the alternative, the district court found that the 180-day limitations period should be equitably tolled because the employer's actions induced plaintiff not to file suit until after the limitations period had expired. The court held, however, that the limitations period began to run upon the unequivocal notification that her employment would ultimately be terminated, absent any later equivocation which did not occur here. Based upon this record, plaintiff's suit was time-barred. The court also held that plaintiff failed to present evidence that the employer's actions prevented or discouraged her from filing a claim of age discrimination. Accordingly, the district court abused its discretion in holding that plaintiff's wrongful termination claim should be equitably tolled.

This case arose when plaintiff lost his right to previously awarded, but unexercised, Restricted Units under Merrill Lynch's "Long-Term Incentive Compensation Plan for Managers and Producers" (the Plan). Plaintiff asserted that he had a right to his Restricted Units under an exception to the general rule, that employees lost their rights to Restricted Units not heretofore unexercised, because he left the firm for "Good Reason" after a "Change in Control." The district court granted summary judgment to plaintiff, holding that, under the applicable standard of review, Merrill Lynch's interpretation of the Plan was arbitrary. The court held that plaintiff failed to meet his burden of showing that no honest tribunal could have construed the Plan in any manner but his proffered reading and that Merrill Lynch had advanced an arbitrary reading of the Plan. Accordingly, the court reversed and remanded.

Plaintiff brought a class action in Louisiana state court on behalf of a class of Louisiana medical providers against three Louisiana defendants, alleging that defendants failed to comply with the preferred provider organization (PPO) notice provisions of Louisiana law. Homeland Insurance Company subsequently appealed the district court's class action to Louisiana state court. Because it concluded that the local controversy exception to the Class Action Fairness Act applied, 28 U.S.C. 1332(d)(4), the court affirmed the judgment of the district court.

Plaintiff appealed from the district court's grant of summary judgment to National Union with respect to his claims under the Texas Insurance Code (Insurance Code), Tex. Ins. Code Ann. 541.003, 541.051, 541.052, 541.061, and the Texas Deceptive Trade Practices Act (DTPA), Tex. Bus. & Com. Code Ann. 17.46, 17.50, asserting misrepresentation and unconscionability. At issue was the Description of Coverage documents that National Union sent to plaintiff regarding eligibility for permanent total disability benefits under two insurance policies. The court held that plaintiff's contention that he had insufficient notice of National Union's basis for seeking summary judgment on his misrepresentation claims was unsustainable. The court also held that the definition of permanent total disability in the Descriptions of Coverage was ambiguous. The court held, however, that the ambiguity did not rise to the level of a misrepresentation within the meaning of the Insurance Code or the DTPA. To the extent that the Insurance Code required additional information to clarify an ambiguity, the reference to the master policy as controlling adequately informed a reasonable person that an ambiguity in the Description of Coverage was not binding if it conflicted with the policy. The court further held that plaintiff's unconscionability claims failed where he had not offered any reasoning as to the relevance of certain evidence regarding allegations of unconscionable conduct and where the claims were premised on conduct that had occurred after his injury and well after the inception of coverage under the policies. Accordingly, the court affirmed the district court's grant of summary judgment.

Defendant pleaded guilty to conspiracy to manufacture methamphetamine and to possession of pseudoephedrine with the intent to manufacture methamphetamine. Defendant appealed his consecutive prison terms of 240 months and 120 months. The court held that the PSR's mathematical computation was not clearly erroneous. The court also held that it had no jurisdiction to review the district court's denial of defendant's discovery request where defendant waived his right to appeal. The court further held that there was no abuse of discretion in sentencing defendant to 360 months imprisonment. The court finally denied defendant's claim of ineffective counsel without prejudice. Accordingly, defendant's sentence was confirmed.

The Union, representing certain employees at ExxonMobil's Baton Rouge refinery and chemical plant, brought suit to compel ExxonMobil to arbitrate two labor grievances pursuant to the parties' collective bargaining agreement. The court held that it was within the province of the courts to decide whether "a good faith claim by one party that the other party had violated a written provision" of the bargaining agreement had been asserted. The court also held that, in light of the clairty of the parties' agreement, the Union's claim that ExxonMobil violated Section 1131 of the agreement when the language of that section explicitly authorized its actions was not colorable and could not constitute a good faith claim within the meaning of the arbitration clause. The court agreed with ExxonMobil that Baton Rouge Oil & Chemical Workers Union v. ExxonMobil Corp foreclosed reliance on Section 1151 of the agreement as an independent basis for the arbitrability of the contracting-out grievance. The court further held that for the same reasons that the court held that the contracting-out grievance was not arbitrable under Section 1151, Section 1151 could not serve as a basis for requiring arbitration of the post-reduction claim. Accordingly, the court reversed the district court's grant of the Union's motion for summary judgment with regard to the contracting-out grievance, affirmed the district court's denial of the Union's motion for summary judgment with regard to the post-reduction grievance, and reversed the district court's denial of ExxonMobil's motion for summary judgment.

Movant was convicted on a guilty plea of aiding and abetting a carjacking resulting in death, an offense he committed when he was sixteen years old. Movant, a federal prisoner, moved the court for authorization to file a successive 28 U.S.C. 2255 motion challenging his sentence of life imprisonment without the possibility of parole and for appointment as his counsel the attorney who filed the instant motion. The court held that movant had made a sufficient prima facie showing to be permitted to present his second section 2255 motion where Graham v. Florida clearly stated a new rule of constitutional law that was not previously available and the case was certainly the first recognition that the Eighth Amendment barred the imposition of life imprisonment without parole on non-homicide offenders under age eighteen and where Graham had been made retroactive to cases on collateral review by the Supreme Court. Therefore, the court granted the motion for an order authorizing movant to file his second section 2255 motion. However, the court denied without prejudice movant's motion for appointment of counsel inasmuch as the limited proceedings before the court have now concluded.

Appellants, investors in a commodity pool, brought suit alleging that futures commission merchants violated the Commodity Exchange Act, 7 U.S.C. 1-27f, by aiding and abetting an investment pool operator in his scheme to defraud investors. The district court dismissed the complaint for failure to state a claim against the futures commission merchants. The court held that the district court acted properly in dismissing the investors' aiding and abetting claims where the merchants had no reason to know that the operator was operating as a commodity pool or trading on behalf of other investors, let alone that the operator was running a fraudulent Ponzi scheme. The court also held that, even if the merchants' actions could be construed as negligent, they were not severely reckless. Accordingly, the judgment of the district court was affirmed.

Plaintiffs, five individuals with disabilities, alleged that defendant recently built and altered sidewalks that were not readily accessible to them and requested injunctive relief under Title II of the Americans with Disabilities Act (ADA), 42 U.S.C. 12132, and section 504 of the Rehabilitation Act, 29 U.S.C. 794(e). At issue was whether Title II and section 504 extended to newly built and altered public sidewalks. Also at issue was whether that private right of action accrued at the time the city built or altered its inaccessible sidewalks, or alternatively at the time plaintiffs first knew or should have known they were being denied the benefits of those sidewalks. The court held that plaintiffs have a private right of action to enforce Title II and section 504 with respect to newly built and altered public sidewalks, and that the right accrued at the time plaintiffs first knew or should have known they were being denied the benefits of those sidewalks.

Plaintiff appealed the district court's grant of summary judgment for his former employer on his claims of hostile work environment and for constructive discharge. The court held that summary judgment was granted in error on plaintiff's claim of hostile work environment based on age where the allegations at issue were for the trier of fact to resolve. As to the claim of hostile work environment based on religion, the court held that plaintiff had pointed to certain instances of acrimony based on religion that, based on the standard of review, supported the court's conclusion that the district court's grant of summary judgment on this issue was reversible error. The court further held that plaintiff's allegations regarding the claim of constructive discharge survived summary judgment where there was a genuine issue of material fact. Accordingly, the court reversed the judgment and remanded for further proceedings.