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

Seven years ago, A.D. was hired to create a PVT (“pressure volume temperature”) simulation software program. Sah was hired by A.D. to develop a PVT software program in exchange for a stake in one of A.D.’s companies, IPSS. Eight months later, a product called InPVT hit the market. Plaintiff Calsep started looking into InPVT. In Calsep’s assessment, A.D. didn’t have the technical skills or resources to develop a PVT product. Calsep filed another motion to compel, alleging that A.D. still hadn’t adequately disclosed his source code control system. Although A.D. had “produced [a] purported source code system” in April and July, Calsep claimed that these productions were “undoubtedly incomplete” and “had been manipulated.” Believing the deletions to be intentional, Calsep filed a motion for sanctions. Afterward, A.D. filed a motion for reconsideration based on newly discovered forensic images that “vindicated” him. The magistrate judge recommended denying the motion, and the district court agreed, denying the motion for reconsideration of the sanctions order. A.D. appealed.   The Fifth Circuit affirmed the district court’s decision on A.D.'s motion for reconsideration. The court explained that A.D. cannot offer any reason—other than mere forgetfulness—why he couldn’t acquire the images sooner. Further, A.D. hasn’t shown that he acted with diligence during the case to locate these images. Moreover, the court explained that although A.D. argues that the images change the game, Calsep’s expert insists that too much data is still missing from the source code control system, rendering a proper review impossible. The court noted that there was no reason to question the district court’s judgment crediting Calsep’s expert testimony. View "Calsep v. Dabral" on Justia Law

Defendants United Services Automobile Association and USAA General Indemnity Company (“USAA”) contract with insureds to pay “Actual Cash Value” (“ACV”) for totaled vehicles. USAA calculates ACV using the CCC One Market Valuation Report (“CCC”) rather than, e.g., the National Automobile Dealers Association guidebook (“NADA”) or Kelley Blue Book (“KBB”). Plaintiffs are USAA-insureds whose vehicles were totaled and who received ACV as determined by CCC. Plaintiffs alleged that CCC violates Louisiana statutory law, that they would have been paid more if USAA used NADA, and that they are owed the difference. Plaintiffs sought certification for a class of USAA-insureds who were paid less under CCC, and the district court granted it. USAA appealed class certification. On appeal, the parties dispute, among other things, whether common questions across the class involving damages and liability predominate over individual differences between class members, as required for class certification under Rule 23(b)(3).   The Fifth Circuit vacated and remanded. The court held that Plaintiffs failed to show injury and therefore failed to establish USAA’s liability on a class-wide basis because they failed to demonstrate entitlement to the NADA values for their totaled vehicles. The court held that with respect to Plaintiffs’ breach of contract claim, the district court’s choice of NADA is not simply an arbitrary choice among imperfect damages models. It is an arbitrary choice of a liability model, and a district court’s wide discretion to choose an imperfect estimative-damages model at the certification stage does not carry over from the context of damages to the context of liability. View "United Svcs Automobile v. Sampson" on Justia Law

This litigation stems from the bankruptcy of Imperial Petroleum Recovery Corporation (“IPRC”). IPRC once marketed microwave separation technology (“MST”) machines, which purported to recover usable oil from various emulsions. The Carmichael parties held security interests in IPRC’s assets—including its MST units. The Carmichaels filed an involuntary Chapter 7 liquidation proceeding against IPRC. After various proceedings, the amended judgment cut the actual damages owed to the Carmichaels to $4,000, cut the fee and cost award to around $92,000, and made no provision for post-judgment interest. All told, the sum due to the Carmichael parties declined roughly 96%, from over $2.3 million to approximately $96,000. The Carmichaels appealed to the district court. The district court affirmed.   The Fifth Circuit affirmed in part, vacated in part, and remanded. The court wrote that the bankruptcy court’s factual findings related to the assigned assets were not clearly erroneous. The court wrote that the district court’s damages award nevertheless rested on clearly erroneous factual findings. The court explained that the Carmichaels are entitled to post-judgment interest pursuant to 28 U.S.C. Section 1961. Finally, the court disposed of the Carmichaels’ contention that the bankruptcy court’s judgment did not provide adequate declaratory relief. The court wrote that applying a preponderance standard and viewing the record holistically, it is persuaded that the Carmichaels’ damages for reassembly exceed $4,000. But the court wrote that it does not attempt to specify the Carmichaels’ reassembly damages here. Instead, the court remanded so that the bankruptcy court may consider the Carmichaels’ asserted damages under the correct standard of proof. View "Carmichael v. Balke" on Justia Law

Appellant suffers from various mental health conditions. Appellant’s delusions led her to believe that the federal government— specifically, former President Barack Obama—was conspiring with hip-hop mogul Jay-Z and other members of the music industry to harm Appellant and her family. To send a message to these government conspirators, Appellant threw a Molotov cocktail into the lobby of the U.S. Citizenship and Immigration Services field office in Oakland Park, Florida. Appellant was indicted and the parties jointly requested an evaluation of whether she was competent to stand trial. The court determined, based on medical evaluation, that Appellant was “presently not competent to stand trial” and therefore ordered her committed to the custody of the Attorney General for hospitalization and treatment pursuant to 18 U.S.C. Section 4241(d). Appellant contends that the district court lacked statutory authority to order her indefinite civil commitment pursuant to 18 U.S.C. Section 4246.   The Fifth Circuit affirmed.  The court explained that Section 4241(d) sets forth two time periods during which a criminal defendant is committed to the custody of the Attorney General. The court explained that Appellant was never rendered competent to stand trial. Second, the court noted that Appellant’s criminal charges were still pending when the dangerousness certificate was filed on December 17, 2020. Third, Appellant does not argue that her three months of additional confinement between September and December 2020 was of unreasonable duration. Accordingly, Appellant remained in the custody of the Attorney General pursuant to  4241(d) on December 17, 2020, and was therefore properly subject to indefinite-civil-commitment proceedings under 4246. View "Sealed Appellee v. Sealed Appellant" on Justia Law

The Plaintiffs—three doctors, a news website, a healthcare activist, and two states —had posts and stories removed or downgraded by the platforms. Their content touched on a host of divisive topics like the COVID-19 lab-leak theory. Plaintiffs maintain that although the platforms stifled their speech, the government officials were the ones pulling the strings. They sued the officials for First Amendment violations and asked the district court to enjoin the officials’ conduct. The officials argued that they only “sought to mitigate the hazards of online misinformation” by “calling attention to content” that violated the “platforms’ policies,” a form of permissible government speech. The district court agreed with the Plaintiffs and granted preliminary injunctive relief.   The Fifth Circuit granted the petition for panel rehearing and affirmed in part, reversed in part, vacated the injunction in part, and modified the injunction in part. The court affirmed with respect to the White House, the Surgeon General, the CDC, the FBI, and CISA and reversed as to all other officials. As to the NIAID officials, it is not apparent that they ever communicated with the social media platforms. Instead, the record shows, at most, that public statements by Director Anthony Fauci and other NIAID officials promoted the government’s scientific and policy views and attempted to discredit opposing ones—quintessential examples of government speech that do not run afoul of the First Amendment. Further, as for the State Department, while it did communicate directly with the platforms, so far, there is no evidence these communications went beyond educating the platforms on “tools and techniques” used by foreign actors. View "State of Missouri v. Biden" on Justia Law

On August 31, 2020, N&W Marine Towing (N&W) filed in federal district court a verified complaint in limitation, Case No. 2:20-cv-2390 (the Limitation Action), pursuant to the Limitation of Liability Act of 1851 (Limitation Act) and Rule F of the Supplemental Rules for Certain Admiralty and Maritime Claims. The Limitation Act provides that once a shipowner brings a limitation action “all claims and proceedings against the owner related to the matter in question shall cease.” The district court issued a Stay Order. Wooley, Turn Services (Wooley’s employer), and Royal Caribbean Cruises (RCC) (the owner of the Majesty of the Seas) all filed claims against N&W in the Limitation Action. N&W and Wooley cross-appeal. Seeking to remain in federal court. On cross-appeal, Wooley contends that the outcome of the case was correct, but if this court were to determine that N&W was properly joined, then Wooley contends the district court erred in denying his motion to remand. The main issue on appeal is whether the district court erred in dismissing an improperly joined, nondiverse defendant when the only independent jurisdictional basis for removal was admiralty jurisdiction.   The Fifth Circuit affirmed. The court explained that, like in Flagg, the Louisiana state court here would have had no choice but to dismiss Wooley’s claims against N&W because of the district court’s Stay Order. The district court could have retained jurisdiction over claims against RCC had RCC remained in the case. However the federal court could not retain jurisdiction over claims against a nondiverse defendant (N&W) without some other basis for federal jurisdiction over those claims. View "Trey Wooley v. N&W Marine Towing" on Justia Law

Louisiana’s Attorney General filed a request for mandamus relief seeking to vacate the district court’s hearing scheduled to begin on October 3 and require the district court to promptly convene trial on the merits of this congressional redistricting case.   The Fifth Circuit granted in part and ordered the district court to vacate the October Hearing. The court explained that redistricting based on section 2 of the Voting Rights Act, 52 U.S.C. Section 10301, is complex, historically evolving, and sometimes undertaken with looming electoral deadlines. The court explained that the district court did not follow the law of the Supreme Court or the Fifth Circuit court. Its action in rushing redistricting via a court-ordered map is a clear abuse of discretion for which there is no alternative means of appeal. Issuance of the writ is justified “under the circumstances” in light of multiple precedents contradicting the district court’s procedure here. The court held that the state has no other means of relief and is not seeking to use mandamus as a substitute for appeal. Further, the court noted that if this were ordinary litigation, the court would be most unlikely to intervene in a remedial proceeding for a preliminary injunction. Redistricting litigation, however, is not ordinary litigation. The court held that the district court here forsook its duty and placed the state at an intolerable disadvantage legally and tactically. View "In Re: Jeff Landry" on Justia Law

BD LaPlace, LLC, doing business as Bayou Steel (Bayou Steel), operated a steel mill in LaPlace, Louisiana. Without giving The Worker Adjustment and Retraining Notification Act (WARN) notice, Bayou Steel terminated Plaintiffs’ employment and closed the LaPlace mill where they worked. Seeking to recover under the WARN Act, Plaintiffs initially filed a putative class action complaint against Bayou Steel in Delaware bankruptcy court. Plaintiffs dismissed that action and filed the instant class action in federal district court. Rather than suing their employer Bayou Steel, Plaintiffs sued Bayou Steel BD Holdings II, LLC and Black Diamond Capital Management, LLC(a private equity firm that advised the fund that owned BD Holdings II). Plaintiffs demanded a jury trial, which the district court denied. Defendants sought summary judgment, which the district court granted. Plaintiffs appealed, challenging both the denial of their jury demand and the summary judgment for Defendants.   The Fifth Circuit affirmed the district court’s conclusion that there is no right to a jury trial under the WARN Act. The court also affirmed the district court’s grant of summary judgment to BD Holdings II. But the district court erred in granting summary judgment to BDCM because there is a genuine dispute of material fact as to whether BDCM exercised de facto control over Bayou Steel’s decision to close its LaPlace steel mill and order Plaintiffs’ layoffs. The court explained that if BDCM “specifically directed” the closing of the mill without proper notice, the company may be liable for Bayou Steel’s WARN Act violation even absent the other factors. View "Fleming v. Bayou Steel" on Justia Law

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