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

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

The Securities and Exchange Commission (“SEC”) sued Defendant as well as other individual Defendants and corporate entities for securities violations. Defendant appealed the district court’s order appointing a receiver over all corporations and entities controlled by him. A central dispute between the parties is what test the district court should have applied before imposing a receivership. Defendant argued the district court abused its discretion because it did not apply the standard or make the proper findings under the factors set forth in Netsphere (“Netsphere factors”). The SEC responded that Netsphere is inapplicable and the district court’s findings were sufficient under First Financial.   The Fifth Circuit vacated the district court’s order appointing a receiver. The court granted in part Defendant’s motion for a partial stay pending appeal. The court explained that, as Defendant points out, the district court’s order denying the stay discussed events and actions that took place after the receivership was already in place. Accordingly, the court vacated the appointment of the receiver and remanded so that the district court may consider whether to appoint a new receivership under the Netsphere factors. The court immediately suspended the receiver’s power to sell or dispose of property belonging to receivership entities, including the power to complete sales or disposals of property already approved by the district court. The court explained that the suspension does not apply to activities in furtherance of sales or dispositions of property that have already occurred or been approved by the district court. The court clarified that “activities in furtherance” do not include the completion of the sale of any property. View "SEC v. Barton" on Justia Law

PHH Mortgage Corporation (PHH) is the successor-in-interest to Ocwen Loan Servicing, LLC (Ocwen). PHH filed suit against Old Republic in district court, alleging a single cause of action for breach of contract. Old Republic filed a motion for summary judgment, arguing that PHH’s breach of contract claim failed as a matter of law because there was no defect in title to the Entire Southern Tract. The district court denied the parties’ cross-motions for summary judgment without reaching the merits of either motion. Rather, the district court construed the parties’ claims as a request for a declaration of title in the Entire Southern Tract. On this basis, the district court determined that any person claiming an interest in the Entire Southern Tract is a required party under Rule 19 and dismissed the case under Federal Rule of Civil Procedure 12(b)(7).   The Fifth Circuit vacated and dismissed. The court explained that the district court’s Rule 19(a) analysis is rooted in a misunderstanding of Texas law. Contrary to the district court’s conclusion below, Texas law draws a sharp distinction between a breach of contract action against a title insurance company and a trespass-to-try-title action. Further, the court explained that by deciding to dismiss this case based solely on its conclusions under Rule 19(a), the district court failed to do what “Rule 19 clearly requires a court to do: undertake an examination of the practical and equitable Rule 19(b) factors actually raised by the absence of a particular party in the case before it.” View "PHH Mortgage v. Old Republic National" on Justia Law

The issue before the court is whether Plaintiff, an inmate incarcerated in Gatesville, Texas, has a right to be heard before the prison decides whether to approve or deny her request to transfer money from her inmate trust account to an outside bank account. The district court answered no and granted summary judgment to the Appellees.   The Fifth Circuit vacated and reversed. The court wrote that Plaintiff provided evidence that her procedural due process rights were violated, which precludes summary judgment. The court explained that Plaintiff’s property interests were undoubtedly at stake, and, considering the evidence that was before the district court, it cannot be said as a matter of law that the procedures were adequate, there were alternative safeguards, or that the administrative burden would be too great. It is up to a factfinder to determine whether Plaintiff can prove her case. Accordingly, the court held that the district court erred in not vacating the judgment and granting Plaintiff leave to amend her pleadings. View "Calhoun v. Collier" on Justia Law

Plaintiff brought an action against Defendants-Appellees Holy Cross College, Inc. and Congregation of Holy Cross Moreau Province, Inc. (collectively, “Holy Cross”) in the district court. Plaintiff alleged that he suffered from sexual abuse carried out by Holy Cross teacher on two separate occasions while attending summer camp at Holy Cross as a 10- or 11-year-old boy in either 1968 or 1969. Plaintiff asserted that Holy Cross is liable for the teacher’s conduct under the doctrine of respondeat superior. At the time of the alleged abuse, such an offense was subject to a one-year liberative prescriptive period. Plaintiff invoked the Revival Provision as his basis to bring a suit. The district court granted Holy Cross’s motion and dismissed Plaintiff’s complaint.   The Fifth Circuit vacated and remanded. The court explained that while the appeal was pending, the Louisiana Supreme Court issued its decision in T.S v. Congregation of Holy Cross Southern Province, Inc., 2023 WL 4195778. The court wrote that with the benefit of the T.S. decision, the court is now certain as to how this case should be resolved under Louisiana law. As previously noted, the facts of both cases are nearly identical. Therefore, it is apparent that the district court should not have ruled on the Revival Provision’s constitutionality. Instead, it is now clear that the Revival Provision’s wording makes it inapplicable to Plaintiff’s claims. Accordingly, his complaint should be dismissed for that sole reason. The court directed that on remand, the district court may consider whether Plaintiff should be provided with leave to amend his complaint. View "Lousteau v. Holy Cross College" on Justia Law

A school resource officer tased a special-needs student who physically struggled with school staff while attempting to leave school following a violent episode. The student’s mother sued the officer and the school district, bringing constitutional claims under 42 U.S.C. Section 1983 and disability discrimination claims under the Americans with Disabilities Act and the Rehabilitation Act.  The district court granted summary judgment to the officer and school district.   The Fifth Circuit concluded, based on recent Supreme Court precedent, that the district court incorrectly subjected the disability discrimination claims to administrative exhaustion. On the merits, however, the district court correctly granted summary judgment to the officer and school district. The court explained that the officer’s use of his taser in this situation was poor judgment, especially after Plaintiff’s son had ceased struggling. However, the court explained that Section 504 of the Rehabilitation Act and Title II of the ADA are not the proper vehicles for remedying “all unreasonable, inappropriate, unprofessional, and/or unduly harsh conduct by public agents. View "W. v. Paley" on Justia Law

The Nuclear Regulatory Commission has asserted that it has authority under the Atomic Energy Act to license temporary, away from reactor storage facilities for spent nuclear fuel. Based on that claim of authority, the Commission issued a license for Interim Storage Partners, LLC, to operate a temporary storage facility on the Permian Basin.Fasken Land and Minerals, Ltd., and Permian Basin Land and Royalty Owners (“PBLRO”) petitioned for review of the license. As did the State of Texas, arguing that the Atomic Energy Act doesn’t confer authority on the Commission to license such a facility.The Fifth Circuit granted Texas’ petition for review and vacated the license, finding that the Atomic Energy Act does not confer on the Commission the broad authority it claims to issue licenses for private parties to store spent nuclear fuel away from the reactor. And the Nuclear Waste Policy Act establishes a comprehensive statutory scheme for dealing with nuclear waste generated from commercial nuclear power generation, thereby foreclosing the Commission’s claim of authority. View "State of Texas v. NRC" on Justia Law

Whirlpool filed a complaint against Shenzhen Sanlida Electrical Technology Co., Ltd. and Shenzhen Avoga Technology Co., Ltd. (collectively, “Shenzhen”) asserting federal and state law claims for trademark and trade dress infringement along with a motion for a preliminary injunction to stop the sale of the allegedly infringing mixers. The district court granted the injunction. In addition to its appeal, Shenzhen sought an emergency stay pending appeal. After granting an initial administrative stay, the Fifth Circuit denied that motion. Then, after the Federal Circuit heard the merits of the case, it affirmed the district court.The Fifth Circuit found the district court did not abuse its discretion in finding that the harms weighed in favor of Whirlpool. View "Whirlpool v. Shenzhen Sanlida" on Justia Law

Several collections of residents near Jefferson Parish Landfill sued the landfill’s owner (Jefferson Parish) and its operators (four companies). This mandamus action arises out of the Eastern District of Louisiana’s case management of two of those lawsuits: the Ictech-Bendeck class action and the Addison mass action. The Ictech-Bendeck class action plaintiffs seek damages on a state-law nuisance theory under Louisiana Civil Code articles 667, 668, and 669. The Addison mass action plaintiffs seek damages from the same defendants, although they plead claims for both nuisance and negligence. The district court granted in part and denied in part Petitioners’ motion for summary judgment against some of the Addison plaintiffs. Then on April 17 the district court adopted a new case management order drafted by the parties that scheduled a September 2023 trial for several of the Addison plaintiffs.   The Fifth Circuit denied Petitioners' petition for mandamus relief. The court explained that mandamus is an extraordinary form of relief saved for the rare case in which there has been a “usurpation of judicial power” or a “clear abuse of discretion.” The court explained that mandamus relief is not for testing novel legal theories. The court wrote that Petitioners’ theory is not merely new; it is also wrong. Rule 23 establishes a mechanism for plaintiffs to pursue their claims as a class. It does not cause the filing of a putative class action to universally estop all separate but related actions from proceeding to the merits until the class-certification process concludes in the putative class action, after years of motions practice. View "In Re Jefferson Parish" on Justia Law