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

James Ethridge, a Texas resident, purchased a Samsung 18650 lithium-ion battery from a Wyoming-based seller on Amazon in October 2018. The battery exploded in his pocket in November 2019, causing severe burns and other injuries. Ethridge filed a personal injury lawsuit in Texas state court in 2021 against Samsung SDI Company, Firehouse Vapors LLC, and two Amazon entities. He later added Macromall LLC as a defendant. After dismissing Firehouse Vapors, the remaining defendants removed the case to federal court. Ethridge then dismissed Macromall, leaving Samsung and the Amazon entities as defendants.The United States District Court for the Southern District of Texas granted summary judgment in favor of the Amazon defendants and dismissed Samsung for lack of personal jurisdiction. Ethridge appealed the dismissal of Samsung to the United States Court of Appeals for the Fifth Circuit, voluntarily dismissing his appeal against Amazon.The Fifth Circuit reviewed the district court's decision de novo and reversed the dismissal. The court held that Samsung had purposefully availed itself of the Texas market by shipping 18650 batteries to companies like Black & Decker, HP, and Dell in Texas. The court found that Ethridge's claims were related to Samsung's contacts with Texas, as the same type of battery that injured Ethridge was sold in Texas. The court concluded that exercising personal jurisdiction over Samsung in Texas was fair and reasonable, given the state's interest in providing a forum for its injured residents and Samsung's ability to litigate in Texas. The case was remanded for further proceedings. View "Ethridge v. Samsung SDI" on Justia Law

Speech First, Incorporated, challenged Texas State University's harassment policy, arguing it violated the First Amendment. The policy prohibited "unwelcome verbal" or "written conduct" without defining these terms, potentially stifling speech on sensitive topics like abortion, immigration, and gender identity. Speech First claimed the policy targeted politically disfavored speech, causing students to self-censor.The United States District Court for the Western District of Texas acknowledged the policy's First Amendment issues but refused to issue a preliminary injunction. Instead, it pressured the University to amend the policy. The University reluctantly complied, and the district court dismissed Speech First's motion as moot, believing the policy change resolved the issue.The United States Court of Appeals for the Fifth Circuit reviewed the case. It disagreed with the lower court's ruling that the policy change rendered the request for a preliminary injunction moot. The appellate court noted that voluntary cessation of allegedly illegal conduct does not moot a case unless it is absolutely clear the behavior will not recur. The court found that Texas State's policy change, made under judicial pressure, did not meet this stringent standard. The University continued to defend the original policy, and there was no controlling statement ensuring the policy would not revert.The Fifth Circuit vacated the district court's decision and remanded the case for further consideration of the motion for preliminary injunctive relief. View "Speech First v. McCall" on Justia Law

Charlene Carter, a flight attendant for Southwest Airlines, was terminated after sending graphic anti-abortion messages to the president of the flight attendants' union, Audrey Stone. Carter, a pro-life Christian, opposed the union's leadership and its participation in the Women's March, which she viewed as supporting abortion. After an arbitrator found that Southwest had cause to terminate Carter under its corporate policies, Carter sued Southwest and the union, claiming her termination violated Title VII of the Civil Rights Act and the Railway Labor Act (RLA).The United States District Court for the Northern District of Texas ruled in favor of Carter, finding that Southwest and the union had discriminated against her based on her religious beliefs and practices. The court permanently enjoined Southwest and the union from interfering with the religious expression of any Southwest flight attendant and held Southwest in contempt for failing to comply with its judgment. Both Southwest and the union appealed, and Carter cross-appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court reversed the district court's denial of Southwest's motion for judgment as a matter of law on Carter's belief-based Title VII claim and RLA retaliation claim, remanding with instructions to enter judgment for Southwest. The court affirmed the judgment against Southwest on Carter's practice-based Title VII claims and the dismissal of Carter's RLA interference claim. The court also affirmed the judgment against the union on all claims but vacated the permanent injunction and remanded for additional proceedings. Additionally, the court vacated the contempt order against Southwest. View "Carter v. Southwest Airlines Company" on Justia Law

Amazon.com Services LLC appealed the "constructive denial" of its motion for injunctive relief from two administrative proceedings before the National Labor Relations Board (NLRB). The case involves Amazon's fulfillment center in Staten Island, New York, where the Amazon Labor Union (ALU) won an election to represent over 8,000 employees. Amazon filed objections alleging interference by ALU and the NLRB's Regional Office, leading to two NLRB cases: one concerning the election and another regarding Amazon's refusal to bargain with ALU.The United States District Court for the Western District of Texas reviewed Amazon's request for temporary, preliminary, and permanent declaratory and injunctive relief to avoid harm from the alleged unconstitutional proceedings. Amazon argued that the structure of the NLRB proceedings violated the U.S. Constitution. The district court denied Amazon's request for a temporary restraining order, finding that Amazon had not established a substantial threat of irreparable harm. The court also granted but stayed the NLRB's motion to transfer the case to the Eastern District of New York.The United States Court of Appeals for the Fifth Circuit reviewed the appeal. The court found that Amazon did not act diligently in seeking expedited relief and failed to establish a legitimate basis for urgency. The court noted that Amazon did not repeatedly request swift review or a ruling by a specific date until the day before its deadline to respond to the NLRB's summary judgment motion. The court concluded that the district court did not effectively deny Amazon's motion for injunctive relief by failing to rule by September 27, 2024. Consequently, the Fifth Circuit dismissed the appeal for lack of subject-matter jurisdiction. View "Amazon.com v. National Labor Relations Board" on Justia Law

The case involves a dispute arising from alleged breaches of a partnership agreement between PNC Bank, N.A., Columbia Housing SLP Corporation (collectively, the "PNC Parties"), and Rene O. Campos, along with 2013 Travis Creek GP, LLC, as general partner. The partnership was formed to acquire, construct, develop, and operate an affordable housing apartment complex in Austin, Texas, with anticipated federal tax credits. A mechanic’s lien was placed on the property, leading to a default on the construction loan. The PNC Parties sought to remove the general partner and replace it with Columbia, resulting in a lawsuit.The PNC Parties filed the lawsuit in the United States District Court for the Western District of Texas, invoking diversity jurisdiction. The district court retained supplemental jurisdiction over the enforcement of the settlement agreement that resolved the 2017 lawsuit. In 2021, the Eureka Parties moved to re-open the case to enforce the settlement agreement, leading to competing motions to enforce. The district court severed the motions from the original lawsuit, creating a new case, and granted each motion in part, offsetting the balance owed. The Eureka Parties and the Partnership appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the parties failed to establish an independent jurisdictional basis for the severed motions. The court noted that severed claims must have an independent jurisdictional basis and that the record lacked sufficient evidence to establish diversity of citizenship. Consequently, the court remanded the case to the district court for the limited purpose of determining whether such jurisdiction exists. The panel retained jurisdiction over the limited remand. View "PNC Bank v. 2013 Travis Oak Creek" on Justia Law

Anthology, Inc. entered into a 10-year contract with Tarrant County College District (TCCD) in June 2022 to provide Enterprise Resource Planning products and services for approximately $42 million, plus annual fees. In October 2023, TCCD terminated the contract without cause, as permitted by the contract, but refused to pay the early termination fee and demanded a refund of about $1.7 million already paid. Anthology sued TCCD in the United States District Court for the Northern District of Texas, seeking a declaratory judgment and damages for breach of contract.TCCD moved to dismiss the case under Federal Rules 12(b)(1) and 12(b)(6), arguing four grounds: entitlement to immunity from suit under Texas law, state sovereign immunity, lack of diversity jurisdiction, and a statutory bar on recovering damages under Texas law. The district court granted TCCD’s Rule 12(b)(1) motion, dismissing Anthology’s claims without prejudice, based on TCCD’s entitlement to immunity from suit under Texas law, without addressing the other grounds for dismissal. Anthology appealed the decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the district court erred in its decision. The appellate court held that state-law immunity cannot limit the jurisdiction of federal courts, which is defined by the Constitution and Congress. Therefore, the district court should not have dismissed the case based on state-law immunity without first addressing the jurisdictional issues of state sovereign immunity and the absence of complete diversity. The Fifth Circuit vacated the district court’s judgment and remanded the case for further proceedings consistent with its opinion. View "Anthology v. Tarrant County College District" on Justia Law

Mark Eugene Ricks, a Texas state prisoner, filed a pro se lawsuit under 42 U.S.C. § 1983 against employees of the University of Texas Medical Branch (UTMB), alleging violations of his Eighth Amendment rights. Ricks claimed that he was denied treatment for chronic hepatitis C virus (HCV) based on nonmedical reasons and that the TDCJ HCV Policy was the driving force behind this unconstitutional denial of treatment. He sought injunctive and declaratory relief, as well as damages.The United States District Court for the Southern District of Texas granted the defendants' motion to dismiss Ricks's complaint for failure to state a claim, concluding that his allegations did not support a claim for deliberate indifference. The district court also denied Ricks's motion for appointment of counsel. Ricks filed a timely appeal, and the district court denied him leave to proceed in forma pauperis (IFP) on appeal, certifying that any appeal would not be taken in good faith.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo and found that the district court erred in dismissing Ricks's complaint without allowing him an opportunity to amend his pleadings. The appellate court held that Ricks's allegations, when liberally construed, could potentially raise a viable claim of deliberate indifference. The court also found that the district court abused its discretion in denying Ricks's motion for appointment of counsel without considering the relevant factors set out in Ulmer v. Chancellor.The Fifth Circuit vacated the district court's orders granting the motion to dismiss and denying the appointment of counsel. The case was remanded with instructions for the district court to allow Ricks to amend his pleadings and to appoint counsel to represent him. View "Ricks v. Khan" on Justia Law

In 2018, a $200 million mixed-use development project at Louisiana State University experienced issues with its fire-protection sprinkler systems, which began to crack and leak. Allied World National Assurance Company, which paid over $10 million for system replacements, sued Nisus Corporation in 2021, alleging that Nisus falsely represented its product's compatibility with the pipe material, leading to the damage.The United States District Court for the Middle District of Louisiana granted summary judgment in favor of Nisus, concluding that Allied's claims were time-barred under Louisiana law. The court found that while Provident, the insured party, did not have actual or constructive knowledge of the cause of the damage, RISE Residential, Provident's agent, had constructive knowledge of the cause by November 2019. This knowledge was imputed to Provident, starting the prescription period.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo and affirmed the district court's decision. The court held that RISE Residential's constructive knowledge of the sprinkler system issues, which was imputed to Provident, triggered the running of the prescription period well before July 23, 2020. The court also found that Nisus did not prevent Allied from timely availing itself of its causes of action, as a reasonable inquiry by RISE Residential would have uncovered the necessary information. Therefore, Allied's claims were prescribed, and the summary judgment in favor of Nisus was affirmed. View "Allied World National v. Nisus" on Justia Law

8fig, Incorporated, a technology company, entered into agreements with several e-commerce merchants (Defendant-Appellants) to purchase projected revenue in exchange for an up-front payment. 8fig alleged that the Defendant-Appellants failed to remit the agreed payments and instead transferred the funds to a religious movement, World Olivet Assembly, closed their bank accounts, and went out of business. 8fig filed a lawsuit under 18 U.S.C. §§ 1964, 1962, and various state and common law claims. The parties filed a Joint Agreed Motion to Administratively Close and Seal Proceedings, which the district court granted, and the case settled quickly.Newsweek Digital, LLC moved to intervene and unseal the judicial record, arguing that the seal hindered its reporting. The district court granted Newsweek’s motion to intervene and unseal, allowing any party to propose redactions. Certain defendants filed proposed redactions, which the district court granted, and denied a motion to extend filing deadlines. The district court proceeding has been unsealed for over a year, except for documents with redacted versions.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that Newsweek had standing to intervene, as alleged violations of the public right to access judicial records and gather news are cognizable injuries-in-fact. The court found that the district court did not abuse its discretion in unsealing the records, emphasizing the public’s common law right of access to judicial records and the presumption in favor of transparency. The court affirmed the district court’s order granting Newsweek’s motion to intervene and unseal the proceeding. View "8Fig v. Stepup Funny" on Justia Law

AT&T sought review of a Federal Communications Commission (FCC) forfeiture order, which fined the company $57 million for mishandling customer data in violation of section 222 of the Telecommunications Act. The FCC found that AT&T failed to protect customer proprietary network information (CPNI) and issued the fine after an internal adjudication process. AT&T argued that the FCC's in-house adjudication violated the Constitution by denying it an Article III decisionmaker and a jury trial.The FCC's Enforcement Bureau investigated AT&T following reports of misuse of customer location data by service providers. The Bureau issued a Notice of Apparent Liability for Forfeiture (NAL), proposing the penalty. AT&T responded in writing, contesting the penalty and raising constitutional challenges. The FCC rejected AT&T's arguments and affirmed the penalty, leading AT&T to pay the fine and seek review in the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit, guided by the Supreme Court's decision in SEC v. Jarkesy, agreed with AT&T that the FCC's enforcement procedures violated the Seventh Amendment and Article III. The court found that the FCC's imposition of civil penalties was akin to a common law action for money damages, which traditionally requires a jury trial. The court also determined that the public rights exception did not apply, as the action was closely related to common law negligence and did not fall within the historical categories of non-Article III adjudications.The court concluded that the FCC's process, which allowed for a section 504 trial only after the agency had already adjudicated the matter, did not satisfy the constitutional requirements. As a result, the Fifth Circuit granted AT&T's petition and vacated the FCC's forfeiture order. View "AT&T v. Federal Communications Commission" on Justia Law