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

Great Lakes Dredge & Dock Company (Great Lakes) sought a letter ruling from the U.S. Customs and Border Protection (CBP) regarding the application of the Jones Act to its offshore wind farm project. CBP's initial ruling required Jones Act-qualified vessels for transporting scour protection rock from U.S. points to the Outer Continental Shelf (OCS). However, a modified ruling stated that the first delivery of rock to the OCS did not require a Jones Act-qualified vessel, but subsequent deliveries did. Great Lakes appealed this modified ruling, which CBP denied.Great Lakes then filed a lawsuit in the Southern District of Texas, claiming the modified ruling was contrary to law and would expose its planned Jones Act-compliant vessel to unlawful competition. The American Petroleum Institute (API) intervened, arguing that Great Lakes lacked standing as it had no actual or imminent injury. The district court agreed with API and dismissed the case, finding Great Lakes' injury hypothetical since it did not have a vessel capable of handling the Vineyard Project and no current contract for the project.The United States Court of Appeals for the Fifth Circuit reviewed the case. Great Lakes argued it had competitor standing due to the potential for increased competition from foreign vessels. However, the court found no evidence of actual or imminent increased competition, as the Vineyard Project was completed and there was no indication that future projects would source rock from U.S. points. The court also rejected CBP's argument that the ruling applied to identical future projects, as there was no record evidence of such projects involving U.S.-sourced rock.The Fifth Circuit affirmed the district court's judgment, concluding that Great Lakes lacked standing to challenge the CBP's modified ruling. View "Great Lakes Dredge v. Magnus" on Justia Law

Pie Development, L.L.C. was formed to develop an application to streamline the process of purchasing workers compensation insurance. The company alleged that Dax Craig, a consultant, stole the idea and shared it with John Swigart. Craig and Swigart then used the idea to create Pie Insurance Holdings, Inc. and other affiliated entities, generating significant profits. Pie Development sued Craig, Swigart, Pie Insurance Holdings, and Pie Insurance Services, alleging misappropriation of trade secrets under the Mississippi Uniform Trade Secrets Act (MUTSA) and the federal Defend Trade Secrets Act (DTSA), among other claims.The United States District Court for the Southern District of Mississippi dismissed the complaint for failing to provide sufficient detail on each claim, but allowed Pie Development to amend its complaint within thirty days. Pie Development chose not to amend and instead appealed. The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision, noting that Pie Development did not sufficiently plead that it took reasonable measures to protect its business plan's secrecy.While the appeal was pending, Pie Development filed a new lawsuit against additional defendants, including Pie Carrier Holdings, Gallatin Point Capital, Sirius Point Ltd., and Pie Casualty Insurance Company, and later added the original defendants. The district court dismissed the new claims, citing res judicata, as the claims were identical to those in the first lawsuit. Pie Development appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's dismissal. The court held that res judicata applied because the prior action was concluded by a final judgment on the merits when Pie Development chose to appeal rather than amend its complaint. The court also found that Pie Development failed to state a claim against Gallatin and Sirius, as the complaint did not plausibly allege that they knew or should have known about the misappropriation of trade secrets. View "Pie Development v. Pie Carr Holdings" on Justia Law

The City of New Orleans filed a lawsuit against several pipeline operators and Entergy New Orleans LLC, alleging that their oil and gas production and transportation activities caused damage to the City's coastal zone. The City claimed that Entergy allowed its pipeline canals to widen and erode, threatening the City's storm buffer. The lawsuit was filed under Louisiana’s State and Local Coastal Resources Management Act of 1978 (SLCRMA).The defendants removed the case to federal court, arguing that Entergy, the only in-state defendant, was improperly joined to defeat diversity jurisdiction. Entergy consented to the removal and argued that it was exempt from SLCRMA’s permit requirements because its activities commenced before the statute's effective date. The City moved to remand the case to state court, but the United States District Court for the Eastern District of Louisiana denied the motion, dismissed Entergy as a party, and stayed the case pending appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's judgment. The appellate court held that Entergy was improperly joined because its activities were exempt under SLCRMA’s Historical-Use Exception, which applies to uses legally commenced before the statute's effective date. The court found no reasonable basis for the City to recover against Entergy, thus disregarding Entergy's citizenship and establishing complete diversity among the parties. The court also rejected the City's argument that it was merely a nominal party representing Louisiana, concluding that the City filed the suit on its own behalf and stood to benefit from a favorable ruling. Consequently, the appellate court affirmed the district court's denial of the City's motion to remand. View "New Orleans City v. Aspect Energy" on Justia Law

Stephen Cook, a trustee of two charitable trusts, sued Preston Marshall, both personally and in his capacity as a trustee of a related trust, alleging that Preston's failures caused the charitable trusts to incur debt and tax penalties. The district court denied Preston's motion to dismiss and later granted Cook partial summary judgment. Preston appealed, arguing that the suit should be dismissed because Cook's unnamed co-trustees lacked diversity of citizenship.The United States District Court for the Eastern District of Louisiana initially ruled in Cook's favor, ordering Preston to authorize payments from the Peroxisome Trust to the Marshall Heritage Foundation and holding that Preston breached his fiduciary duties. Cook later moved to enforce this judgment, claiming Preston continued to refuse to authorize payments and failed to file tax returns. The district court held Preston in contempt but did not remove him as co-trustee. Cook then filed a new suit against Preston, seeking damages and Preston's removal as co-trustee. The district court denied Preston's motion to dismiss, which argued that the claims were barred by res judicata and that necessary parties were not joined.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that complete diversity of citizenship existed because the trusts themselves were not parties, and only the citizenship of Cook and Preston mattered. The court also found that the district court did not abuse its discretion in proceeding without joining Elaine and Pierce as parties. Additionally, the court determined that res judicata did not bar Cook's claims because the new claims arose from Preston's post-judgment conduct. Finally, the court rejected Preston's arguments regarding comparative fault and failure to mitigate damages, affirming the district court's judgment. View "Cook v. Marshall" on Justia Law

Silverthorne Seismic, L.L.C. licensed seismic data to Casillas Petroleum Resource Partners II, L.L.C. and sent the data to Sterling Seismic Services, Ltd. for processing. Silverthorne alleged that Sterling sent unlicensed data to Casillas, which Casillas then showed to potential investors. Silverthorne sued Sterling for trade-secret misappropriation under the Defend Trade Secrets Act, seeking a reasonable royalty as a remedy.The United States District Court for the Southern District of Texas set the standard for calculating a reasonable royalty, adopting a definition from a previous case, University Computing Co. v. Lykes-Youngstown Corp. The district court certified this order for interlocutory appeal under 28 U.S.C. § 1292(b), concluding that the reasonable-royalty standard was a controlling question of law with substantial ground for difference of opinion and that an immediate appeal would materially advance the litigation. The district court stayed the proceedings pending the appeal, and an administrative panel of the United States Court of Appeals for the Fifth Circuit granted leave to appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and determined that granting leave to appeal was an error. The court found that the district court's order did not involve a controlling question of law and that the appeal would not materially advance the ultimate termination of the litigation. The court emphasized that the parties had not yet gone to trial, and Silverthorne had not proven liability, making the damages issue premature. The court vacated the order granting leave to appeal, dismissed the appeal for lack of jurisdiction, and remanded the case for further proceedings. View "Silverthorne v. Sterling Seismic" on Justia Law

Plaintiffs, a group of sex-trafficking victims, were trafficked through advertisements posted on Backpage.com, an online advertisement forum. They sued Salesforce, a company that provided cloud-based software tools and related support services to Backpage. Salesforce moved for summary judgment on the grounds that section 230 of the Communications Decency Act bars Plaintiffs’ claims. Plaintiffs allege that Salesforce knowingly assisted, supported, and facilitated sex trafficking by selling its tools and operational support to Backpage even though it knew (or should have known) that Backpage was under investigation for facilitating sex trafficking.The United States District Court for the Southern District of Texas denied Salesforce’s motion for summary judgment, holding that section 230 does not shield Salesforce because Plaintiffs’ claims do not treat Salesforce as a publisher or speaker of third-party content. After denying Salesforce’s motion for summary judgment, the district court sua sponte certified its order for interlocutory appeal, identifying three controlling questions of law on which there may be substantial grounds for difference of opinion.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court’s denial of summary judgment. The court held that Plaintiffs’ claims do not treat Salesforce as the publisher or speaker of third-party content because they do not derive from Salesforce’s status or conduct as a publisher or speaker or impose on Salesforce any duty traditionally associated with publication. Therefore, section 230 does not provide immunity to Salesforce. The case was remanded for further proceedings consistent with this opinion. View "A. B. v. Salesforce" on Justia Law

Sarah Lindsley filed a discrimination lawsuit against her employer, Omni Hotels Management Corporation, alleging sex-based pay discrimination under the Equal Pay Act (EPA) and Title VII of the Civil Rights Act of 1964. Lindsley claimed that her initial salary was set too low due to her sex, causing her to earn less than her male colleagues despite subsequent raises. She also alleged that she faced harassment and that her complaints about pay discrepancies were ignored.The United States District Court for the Northern District of Texas initially granted summary judgment in favor of Omni on all claims. However, the United States Court of Appeals for the Fifth Circuit reversed and remanded the case for trial on the pay-discrimination claims under Title VII and the EPA. At trial, the jury found Omni not liable under the EPA but awarded Lindsley over $25 million in Title VII damages despite finding no liability under Title VII. The district court deemed the jury's answers inconsistent, amended the verdict form, and ordered further deliberation. The jury then found for Lindsley on her Title VII claim, again awarding over $25 million in damages, which the district court reduced under the statutory cap.The United States Court of Appeals for the Fifth Circuit reviewed the case and held that the district court did not err in handling the first verdict form but did err in handling the second verdict form. The appellate court found that the jury's answers in the second verdict form were inconsistent, as they found that any pay disparity resulted from a factor other than sex (an affirmative defense to both the EPA and Title VII claims) but still awarded Title VII damages. The court vacated the district court's judgment and remanded the case for a new trial. View "Lindsley v. Omni Hotels" on Justia Law

Spring Siders, a Christian evangelist, sought to share her religious message outside a public amphitheater in Brandon, Mississippi. The City of Brandon had enacted an ordinance restricting protests and demonstrations near the amphitheater during events. Siders challenged the constitutionality of this ordinance after being directed by police to a designated protest area, which she found unsuitable for her activities. She argued that the ordinance infringed on her First Amendment rights.The United States District Court for the Southern District of Mississippi denied Siders' request for a preliminary injunction to prevent the enforcement of the ordinance. The court found that Siders had not demonstrated a likelihood of success on the merits of her claim, relying on a similar case, Herridge v. Montgomery County, which upheld restrictions on street preaching near a concert venue for public safety reasons.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the ordinance was content-neutral and subject to intermediate scrutiny. It found that the ordinance was narrowly tailored to serve the significant government interest of public safety and traffic control during events at the amphitheater. The court also determined that the ordinance left open ample alternative channels for communication, as Siders could still engage in her activities in the designated protest area and other locations outside the restricted area.The Fifth Circuit concluded that Siders had not demonstrated a likelihood of success on the merits of her First Amendment claim. Consequently, the court affirmed the district court's denial of the preliminary injunction. View "Siders v. City of Brandon" on Justia Law

Hamzah Ali, a legal immigrant from Yemen and Dubai, retained Azhar Chaudhary as his attorney in February 2017 and paid him $810,000 over three months. Chaudhary claimed this was a nonrefundable retainer, while Ali asserted it was for hourly billing. The bankruptcy court found that Chaudhary did little work of value for Ali and that much of his testimony was false. Ali fired Chaudhary in October 2017 and later learned from another attorney that most of Chaudhary’s advice was misleading or false.Ali sued Chaudhary and his law firm in Texas state court in 2018 for breach of contract, quantum meruit, breach of fiduciary duty, fraud, negligence, and gross negligence. In October 2021, Riverstone Resort, an entity owned by Chaudhary, filed for Chapter 11 bankruptcy. In May 2022, Ali sued Chaudhary, his law firm, and Riverstone in bankruptcy court, alleging breach of fiduciary duty and unjust enrichment, and seeking a constructive trust over Riverstone’s property. The bankruptcy court dismissed Ali’s claims against Chaudhary and his firm, citing lack of jurisdiction or abstention, and granted a take-nothing judgment for Riverstone based on the statute of limitations.The United States District Court for the Southern District of Texas dismissed all appeals and affirmed the bankruptcy court’s judgment. Ali appealed to the United States Court of Appeals for the Fifth Circuit, arguing that the bankruptcy court erred in not equitably tolling the statute of limitations and that Chaudhary had fraudulently concealed his cause of action.The Fifth Circuit dismissed the appeals of Chaudhary, his law firm, and Riverstone, as they were not aggrieved parties. The court reversed the district court’s judgment in favor of Riverstone and remanded the case to the bankruptcy court to consider whether equitable tolling should apply due to Chaudhary’s alleged misconduct. View "Azhar Chaudhary Law v. Ali" on Justia Law

Kenny Savoie, a former employee of Pritchard Energy Advisors, LLC (PGA), filed a breach-of-contract lawsuit against Thomas Pritchard, his former boss, in the United States District Court for the Western District of Louisiana. Savoie, a Louisiana resident, claimed that Pritchard, a Virginia resident, owed him compensation under a 2017 offer letter for work done on behalf of Empire Petroleum Corporation. Savoie alleged that Pritchard fraudulently informed him that PGA had not received any payments for his projects, thus denying him due compensation.The district court dismissed the case against Pritchard for lack of personal jurisdiction, concluding that Pritchard's contacts with Louisiana were made in his corporate capacity and were protected by the fiduciary shield doctrine. The court found that Savoie failed to establish any exceptions to this doctrine that would allow Pritchard's corporate contacts to be attributed to him personally.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the fiduciary shield doctrine, which prevents the exercise of personal jurisdiction based solely on a defendant's corporate acts, applied in this case. The court noted that Louisiana law recognizes the fiduciary shield doctrine and that Savoie did not establish any exceptions, such as piercing the corporate veil or alleging a tort for which Pritchard could be personally liable. Consequently, the court concluded that Pritchard's corporate contacts could not be used to establish personal jurisdiction over him in Louisiana. View "Savoie v. Pritchard" on Justia Law