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

In this case, the parties consented to have their commercial dispute tried before a United States magistrate judge. But, allegedly unbeknownst to Defendant, the judge was longtime family friends with the lead trial lawyer for the plaintiff. Specifically, the lawyer had been a groomsman in the judge’s own wedding, and the judge officiated the wedding of the lawyer’s daughter three months before this lawsuit was filed. None of this information was disclosed to Defendant. After a twenty-day bench trial, the magistrate judge rendered judgment for the Plaintiff, awarding $124.5 million, including over $100 million in trebled damages. After the issuance of the judgment and award, Defendant learned about the undisclosed longstanding friendship and sought to have the magistrate-judge referral vacated. The district judge denied the request and denied discovery on the issue. Defendant appealed.   The Fifth Circuit vacated. The court concluded that the facts asserted here, if true, raise serious doubts about the validity of Defendant’s constitutionally essential consent to have its case tried by this magistrate judge. Further, the court explained remand was necessary because the facts were not sufficiently developed for the court to decide whether Defendant’s consent was validly given or whether vacatur of the referral was otherwise warranted. Accordingly, the court remanded for an evidentiary inquiry. View "I F G Port Hold v. Lake Charles Harbor" on Justia Law

The Texas Department of Criminal Justice fired Plaintiff after he refused to cut his hair and beard in violation of his religious vow. Plaintiff exhausted his administrative remedies. He then filed a pro se lawsuit against TDCJ and various officers, which alleged claims of religious discrimination and failure to accommodate under Title VII of the Civil Rights Act of 1964. The district court granted summary judgment in favor of Defendants.   The Fifth Circuit, in accordance with the Supreme Court’s recent decision in Groff v. DeJoy, 143 S. Ct. 2279 (2023), reversed. The court explained that Title VII forbids religious discrimination in employment. The statute defines “religion” broadly to include “all aspects of religious observance and practice, as well as belief.” Further, the court explained that Title VII also requires employers to accommodate the religious observances or practices of applicants and employees. The court held that TDCJ breached both duties. TDCJ (A) failed to accommodate Hebrew’s religious practice and (B) discriminated against him on the basis of his religious practice   The court reasoned that the only issue is whether TDCJ has met its burden to show that granting Hebrew’s requested accommodation—to keep his hair and beard—would place an undue hardship on TDCJ. The court held that (1) TDCJ cannot meet the undue hardship standard and (2) the Department’s counterarguments are unavailing. The court noted that, in this case, TDCJ cannot hide behind its “otherwise-neutral policy.” This policy must “give way” to Plaintiff’s requested accommodation. View "Hebrew v. TDCJ" on Justia Law

The Verona Police Department twice arrested L.B. for his connection to violent shootings. Both times, however, he was released while his charges were pending. Just five months after his second arrest, L.B. drove to Annie Walton’s house and opened fire—killing Annie Walton and injuring her grandson, Aliven Walton. Annie Walton’s wrongful death beneficiaries (collectively, Plaintiffs ) believe the City of Verona and the Verona Chief of Police, J.B. Long, are responsible for the shooting at Annie Walton’s home, so they sued under 42 U.S.C. Section 1983 and the Mississippi Tort Claims Act. At summary judgment, the district court initially dismissed all claims. But Plaintiffs filed a motion for reconsideration, and the district court reversed course—finding the City of Verona was not entitled to sovereign immunity under the Mississippi Tort Claims Act. Plaintiffs and the City of Verona subsequently filed interlocutory appeals.   The Fifth Circuit dismissed Plaintiffs appeal for lack of jurisdiction and reversed the district court’s finding against the City regarding sovereign immunity. The court explained that Long had no special duty to protect Plaintiffs besides his general duty to keep the public safe as the City’s Chief of Police. The court explained that the only evidence that demonstrates Long had knowledge of any connection between L.B. and Plaintiffs comes from Long’s investigative file, where there is a copy of a trespassing complaint that Annie filed against L.B. in 2016. Accordingly, the court held Long did not owe a duty to protect Plaintiffs from L.B.’s drive-by shooting. Thus, Plaintiffs cannot sustain their negligence claims or their MTCA claims against the City. View "Walton v. City of Verona" on Justia Law

A Texas citizen brought state-law claims in federal court against “Dining Alliance Inc.” Prior to the suit, however, Dining Alliance Inc. had converted into Dining Alliance LLC (“Dining Alliance”), whose citizenship may include both Texas and Delaware. This potential jurisdictional defect was not recognized because Dining Alliance originally answered under the name Dining Alliance Inc. and represented itself as a Massachusetts citizen. Dining Alliance unacceptably hid the ball with respect to the elementary jurisdictional facts during the entire course of litigation, including on appeal. The district court dismissed its third-party claims with prejudice as a sanction for that willful abuse of the judicial process.   The Fifth Circuit affirmed. The court explained that a district court may invoke its inherent power to dismiss claims with prejudice in order to protect “the integrity of the judicial process.” It must find that the litigant acted in bad faith or willfully abused the judicial process. It must also find that “lesser sanctions would not serve the best interests of justice.” The court wrote that contrary to Dining Alliance’s assertion, the district court found that Dining Alliance itself willfully abused the judicial process based on the totality of its litigation misconduct, which culminated in its refusal to obey the court’s order. That misstatement was reckless because the company’s transformation into Dining Alliance LLC should have been and apparently was known at the time. Accordingly, the court held that the district court neither lacked jurisdiction nor abused its discretion in dismissing Dining Alliance LLC’s third-party claims with prejudice as a sanction for its willful abuse of the judicial process. View "Dining Alliance v. Foodbuy" on Justia Law

Louisiana oil and gas law authorizes the state Commissioner of Conservation to combine separate tracts of land and appoint a unit operator to extract the minerals. Plaintiffs own unleased mineral interests in Louisiana that are part of a forced drilling unit. BPX is the operator. Plaintiffs alleged on behalf of themselves and a named class that BPX has been improperly deducting post-production costs from their pro rata share of production and that this practice is improper per se. The district court granted BPX’s motion to dismiss Plaintiffs’ per se claims, holding that the quasi-contractual doctrine of negotiorum gestio provides a mechanism for BPX to properly deduct postproduction costs. Plaintiffs filed this action as purported representatives of a named class of unleased mineral owners whose interests are situated within forced drilling units formed by the Louisiana Office of Conservation and operated by BPX. BPX removed this action to the district court based on both diversity and federal question jurisdiction. BPX sought dismissal of the Plaintiffs’ primary claim. The district court granted BPX’s motion to dismiss. The district court certified its ruling for interlocutory appeal pursuant to 28 U.S.C. Section 1292(b).The Fifth Circuit wrote that no controlling Louisiana case resolves the parties’ issue. Accordingly, the court certified the following determinative question of law to the Louisiana Supreme Court: 1) Does La. Civ. Code art. 2292 applies to unit operators selling production in accordance with La. R.S. 30:10(A)(3)? View "Self v. B P X Operating" on Justia Law

Plaintiff, formerly a patrol sergeant in the Alamo, Texas police department, brought a Section 1983 action against the City of Alamo (the “City”), former chief of police, and several other officers in connection with an alleged scheme to have Plaintiff fired and arrested on bogus charges. The district court dismissed the City and the other officers under Federal Rule of Civil Procedure 12(b)(6), then dismissed the chief of police under 12(c). Plaintiff appealed the dismissals of the chief of police and the City.   The Fifth Circuit reversed the dismissal of Plaintiff's false arrest complaint against the chief of police and affirmed the dismissal of the City. The court explained that Plaintiff’s complaint presents Defendant as the sole moving force behind a deliberate, long-term conspiracy to create and file affidavits Defendant knew to be false, with the purpose of exploiting the criminal justice system to arrest, detain, and torment Plaintiff for crimes Defendant knew he did not commit. Defendant, moreover, ordered the sham investigations that served as the basis for the false affidavits and pushed the investigations forward despite knowing Plaintiff was innocent. The court wrote that Terwilliger v. Reyna controls here. As such, the court held that Defendant’s alleged actions are relevant, like Reyna’s, for purposes of evaluating his potential Franks liability at the Rule 12 stage. Defendant was the “driving force” behind the conspiracy, and he was “continuously updated” as to the status of the investigations he had ordered, including the fact the investigations revealed no criminality or impropriety. Therefore, the court reversed the district court’s dismissal of Plaintiff’s false arrest claim against Defendant. View "Guerra v. Castillo" on Justia Law

A group of Doctors sued the FDA and the Department of Health and Human Services (together, the “Agencies”), claiming an FDA ad intended to deter people from off-label use of ivermectin to treat COVID-19. Each Doctor says that FDA’s messaging interfered with their own individual medical practice.The Doctors argue that FDA’s ad and similar public statements violated FDA’s enabling act (“Act”) and the Administrative Procedure Act (“APA”). The district court held that sovereign immunity protects the Agencies and the Officials, and it dismissed the suit. The Fifth Circuit reversed.The Fifth Circuit held that the Doctors can use the APA to bypass sovereign immunity and assert their ultra vires claims against the Agencies and the Officials. The ad was plausibly agency action, because it publicly announced the general principle that consumers should not use ivermectin to treat the coronavirus, and the Doctors fall within the Act’s zone of interests.The Doctors’ pure APA claim cannot go forward because the ad does not determine legal rights and thus lacks the finality. However, the Fifth Circuit held that the Doctors’ first theory was enough to allow this suit to proceed. View "Apter v. Dept of Health & Human Svc" on Justia Law

This is a class action brought by Louisiana sheriffs and Louisiana law enforcement districts against purveyors of software. The sheriffs and law enforcement districts allege that the software purveyors sold them defective software and then failed to administer the software properly.Defendants include both in-state and out-of-state software purveyors. The Class Action Fairness Act excludes federal jurisdiction over class actions with “less than 100” plaintiff class members. However, from 2015 to late 2018, only in-state Defendants were responsible for the alleged wrongdoing. An out-of-state defendant bears responsibility for the alledged conduct after 2018.Plaintiffs sued in Louisiana state court. Defendants removed to federal district court. Plaintiffs then sought remand to Louisiana state court, arguing that the local controversy exception to the Class Action Fairness Act applied. The magistrate recommended remand under the local controversy exception. The district court adopted the magistrate’s report. Defendants appeal.To be heard in federal court, a class action must have at least a hundred plaintiff class members. Plaintiffs argued that this class action is not removable to federal court because it has fewer than a hundred class members. The Fifth Circuit held that the law enforcement districts are separate entities from the sheriffs under 28 U.S.C. 1332(d)(5)(B).However, the Fifth Circuit remanded to state court on alternate grounds. The Class Action Fairness Act establishes a local controversy exception to federal jurisdiction. 28 U.S.C. 1332(d)(4). This exception requires at least one in-state defendant “whose alleged conduct forms a significant basis for the claims asserted” and “from whom significant relief is sought.” View "State of Louisiana v. i3 Verticals" on Justia Law

Due to a settlement in a civil matter, Plaintiff, an inmate incarcerated in Gatesville, Texas had an inmate trust fund worth nearly $100,000.00. In December of 2019, Plaintiff made a suspicious withdrawal, and Appellee, a former senior warden, notified her that she was under investigation for trafficking. Shortly after, Plaintiff was found guilty of the lowest level of rule violation. Plaintiff now asserts that she has submitted approximately three or four separate withdrawal requests to TDCJ, which were all denied without notice or an opportunity to be heard in violation of her procedural due process rights. The district court granted summary judgment to all Appellees and entered a final judgment. Plaintiff filed a motion for reconsideration pursuant to Rule 59(e) and a Rule 15(a) motion for leave to file a second amended complaint, which the district court denied.   The Fifth Circuit vacated the district court’s judgment and reversed the district court’s ruling denying Plaintiff’s Rule 59(e) motion. The court explained that the Ex Parte Young exception applies to this case. The court explained that any of Plaintiff’s claims seeking declaratory relief based on purported constitutional violations occurring in the past, as well as any requests for monetary damages, are barred by the Eleventh Amendment. However, her claims to enjoin a future action that might violate her constitutional rights may proceed. Further, the court held that Plaintiff provided evidence that her procedural due process rights were violated, which precludes summary judgment. Finally, the court found that the court erred in not vacating the judgment and granting Plaintiff leave to amend her pleadings. View "Calhoun v. Collier" on Justia Law

The underlying case against Defendants TeamHealth—a group of private equity-owned healthcare entities—was brought under the qui tam provisions of the False Claims Act. Two former TeamHealth employees (together, the “Relators”) alleged that TeamHealth routinely billed for nonexistent doctor examinations and critical care services. The matter was unsealed in 2018 after federal and state governments declined to intervene. The Relators moved forward with their case, which survived dismissal and proceeded through extensive discovery. Movant sought to permissively intervene in this closed matter to challenge the sealing of records. The district court denied Movant’s intervention on three independent grounds.   The Fifth Circuit reversed and remanded. The court explained that although courts are afforded great discretion in deciding intervention pursuant to Federal Rule of Civil Procedure 24(b), the district court’s reasoning was premised on several significant errors. The court explained it has permitted intervention by nonparties who seek only to challenge record-related restrictions. The court concluded that Movant’s claim shares a common question of law with the district court’s decisions related to sealing records: Whether there are compelling reasons for sealing that outweigh the public’s right of access. Thus, the court reversed the district court’s determination that Movant has failed to satisfy the requirements of Rule 24(b)(1).  The court explained that it firmly holds that Movant has satisfied standing and the requirements of Rule 24(b)(1), however, it reiterated the district court’s discretion in ultimately deciding Movant’s motion. View "USA v. Team Finance" on Justia Law