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

Plaintiff was severely burned when the landing gear on a tanker-trailer detached from its tractor and sank into a gravel surface, causing the tanker-trailer to tip over and spill scalding water on him. Plaintiff brought a premises liability claim against the owner of the property and product liability claims against the owner of the tanker-trailer and three related companies. The district court dismissed his product liability claims on the pleadings and his premises liability claim on summary judgment.The Fifth Circuit held that the district court did not apply the proper standard for evaluating the plausibility of George’s pleadings under Federal R. of Civ. Pro. 12(b)(6). Further, the court held that the district court erroneously concluded that Chapter 95 of the Texas Civil Practice & Remedies Code governed Plaintiff's premises liability claim. Thus the court affirmed in part, reversed in part, vacated the district court's judgment and remanded the case for further proceedings. View "George v. SI Grp, et al" on Justia Law

Plaintiff sued her employer under the Age Discrimination in Employment Act (“ADEA”), claiming that Defendant engaged in unlawful age discrimination and retaliation. Plaintiff filed a motion with the district court requesting additional time so that Defendant could respond to her requests for production. The court denied the motion and Plaintiff later filed a supplement to her Rule 56(d) motion, again asking the court to defer consideration of Defendant’s summary-judgment motion and allow Plaintiff to conduct discovery, or alternatively, deny Defendant’s motion. The district court granted Defendant’s motion and entered final judgment in their favor.   The Fifth Circuit reversed the district court’s order and held that a district court cannot deny discovery rights protected by the Federal Rules of Civil Procedure. The court explained that a Rule 56(d) movant first must demonstrate that additional discovery will create a genuine issue of material fact. Here, Plaintiff identified such evidence for (1) her age-discrimination claim, and (2) her retaliation claim. The court reasoned it was an abuse of discretion for the district court to deny Plaintiff the opportunity to conduct discovery on the relevant issues in question and then fault her for having “no evidence of a causal connection” between her protected activity and the adverse employment actions. Further, the fact that Plaintiffs requests for discovery were repeatedly denied does not reveal a lack of diligence on her part. View "Bailey v. KS Mgmt Services" on Justia Law

A wrongful-death suit ended in default when a trucking company went bankrupt. That left two plaintiffs who both claimed to be the decedent’s common-law wife. The district court awarded damages to just one of them because Texas does not allow bigamy. The other putative wife maintains that the district court had to award damages to both plaintiffs.The Fifth Circuit affirmed the district court’s decision holding that a defaulting defendant is deemed to admit a plaintiff’s factual allegations, but the district court still may inquire whether those allegations demonstrate legal liability. In the putative wife’s amended complaint, she failed to make specific allegations regarding any of the elements of common-law marriage.The court reasoned that the statements she made were too “bare and conclusory” to be considered a well-pleaded factual allegation. After reviewing the putative wife’s complaint, the district court concluded that she and the decedent had agreed to be married, had cohabited, and had held themselves out as married. The court did not reject any of her factual allegations—it merely rejected the legal conclusion that she was married to the decedent. That rejection was proper in light of the other woman’s factual allegations.Moreover, where a plaintiff, but for the defendant’s default, would never have been able to show legal entitlement to a judgment, denial of that judgment is not itself a miscarriage of justice. There is nothing inequitable about allowing a district court to consider the facts alleged by all plaintiffs and award default judgment to only those whose claims are not precluded. View "Escalante v. Lidge" on Justia Law

After her ex-husband died in a containerboard mill explosion, Plaintiff brought a wrongful death and survival action against Defendant Packaging Corporation of America (“PCA”) and PCA employee, a supervisor alleged to have had specific responsibility for the safe operation of the tank at issue (collectively, the “Defendants”). Defendants removed the case to federal court on grounds of improper joinder and diversity jurisdiction. After denying a motion to remand, the district court granted successive motions for summary judgment that disposed of the plaintiff’s claims. Plaintiff appealed the district court’s rulings on the motion to remand and the motions for summary judgment. The Fifth Circuit affirmed the district court’s ruling granting summary judgment and held that the district court correctly dismissed Plaintiff’s claims because the workplace accident falls within Louisiana’s workers’ compensation scheme.The primary issue is whether Plaintiff had a plausible claim against the supervisor such that he could be properly joined to defeat diversity jurisdiction. The court held that Plaintiff failed to show that the supervisor bears personal blame for the victim’s death. Thus, the district court was correct to pierce the pleadings to ferret out glaring legal deficiencies in Plaintiffs claims against the only defendant precluding diversity jurisdiction, and the district court’s consequent finding of improper joinder and denial of Plaintiff’s motion to remand was likewise correct. Further, the court held that this workplace fatality falls within the ambit of Louisiana’s workers’ compensation scheme. View "Rolls v. Packaging Corp of America" on Justia Law

The Bank of Louisiana (“BOL”) and two of its directors appeal the district court’s dismissal of their complaints against the Federal Deposit Insurance Corporation (FDIC). The district court ruled that the complaints rehashed allegations that it had repeatedly held it lacked jurisdiction to consider.On appeal, the Fifth Circuit affirmed the district court’s dismissal holding that preclusion principles bar relitigation of the same jurisdictional issue decided in a prior case. The court reasoned that BOL’s new complaints aim to relitigate the same jurisdictional issue decided previously. Once again, the BOL contendsed there is district court jurisdiction over its constitutional claims against the FDIC. That is the same issue the court decided against the BOL in the prior suits. The new complaints thus repeat rather than remedy the jurisdictional problem that warranted the earlier dismissals View "Bank of Louisiana v. FDIC" on Justia Law

Plaintiff filed a petition for damages in the 19th Judicial District Court in East Baton Rouge Parish. Plaintiff totaled his car in an accident and alleged that GoAuto, his car insurance carrier, paid less in policy benefits than his policy and Louisiana law required. GoAuto filed its notice of removal, Plaintiff received permission from the Louisiana court to amend his complaint again and, as accepted on appeal, filed the amended complaint. This amendment changed the definition of the class from class “residents of Louisiana” to class “citizens of Louisiana.” After removal, the parties filed several competing motions disputing which complaint controlled and the sufficiency of GoAuto’s notice of removal.   The Fifth Circuit affirmed the district court’s order remanding the case to state court, finding that Defendant is a citizen of Louisiana and thus the suit lacks the minimal diversity necessary to vest a federal court with jurisdiction. The court declined Defendant’s request to disregard the Louisiana state court’s pre-removal procedural rulings applying Louisiana law and substituted its own Erie guesses at how a Louisiana court ought to rule on a motion to amend a pleading.   Further, in regards to Defendant’s argument that it is plausible that some class members are not citizens of Louisiana, the court held that none of these individuals, assuming they had relocated to Colorado, Texas, or Florida before the filing of the complaint, qualify as citizens of Louisiana. Finally, the court held that Defendant points to nothing in the text of the statute that would bar Plaintiff’s class definition. View "Turner v. GoAuto Insurance" on Justia Law

Plaintiff sued PetroTel Oman, LLC (“PetroTel”) and affiliated entities in Texas state court, alleging that they breached an oral contract to compensate him for helping them raise funds for an oil and gas project in Oman. The PetroTel entities removed the action to federal court, arguing that removal was proper under the federal officer removal statute because they “acted under” a federal agency by partnering with the United States International Development Finance Corporation  (“DFC”) to raise funds for the project. The district court remanded the action, rejecting both grounds for removal offered by the PetroTel entities.   The Fifth Circuit affirmed the district court’s finding rejecting Defendant’s grounds for removal to federal court. The court held that the federal officer removal statute nor the Grable doctrine provides a basis for federal subject-matter jurisdiction in Plaintiff’s breach of contract action against Defendant.   First, the court reasoned that PetroTel did not assist or help the DFC carry out a task that the DFC—or any federal superior—otherwise would have had to do itself. Accordingly, PetroTel did not act under the DFC, so it was not entitled to remove under Sec. 1442(a)(1).  Next, the court held that because Plaintiff’s state court petition does not satisfy the well-pleaded complaint rule, the district court correctly determined that Grable does not provide a basis for federal jurisdiction. View "Box v. PetroTel" on Justia Law

N&W filed a maritime limitation action in federal district court after Plaintiff was injured on a ship owned by N&W Marine Towing. The district court initially stayed Plaintiff from prosecuting claims against N&W in other forums, however, the court lifted its stay after Plaintiff made certain stipulations.The Fifth Circuit reasoned that under the Limitation of Liability Act, shipowners “may bring a civil action in a district court of the United States for limitation of liability.” The Limitation Act allows shipowners to limit their liability for an array of incidents, as long as the incident giving rise to liability occurred without the p knowledge of the owner.Here, after N&W filed its limitation action, three parties filed claims: Wooley, Turn Services, and RCC. However, RCC and N&W settled, and Turn Services assigned its claims to Plaintiff, leaving him as the only remaining claimant. The court found that Plaintiff’s stipulation both recognized the district court’s exclusive jurisdiction over the limitation proceeding and stated that Plaintiff would not seek to enforce a damage award greater than the value of the ship and its freight until the district court had adjudicated the limitation proceeding. Thus, the court found that the district court did not abuse its discretion by lifting the stay and allowing Plaintiff to pursue remedies in other forums. Further, the court found that N&W’s arguments regarding removal are not relevant to the issue of whether the district court abused its discretion by lifting the stay. View "Wooley v. N&W Marine Towing" on Justia Law

Vista Health Plan, Inc., a small health insurance company in Texas, was assessed risk-adjustment fees that exceeded its premium revenue, causing the company to cease operations. The company and its parent, Vista Service Corporation, (collectively, Vista) sued HHS, HHS Secretary, the Centers for Medicare and Medicaid Services (CMS), and CMS Administrator Seema Verma (collectively, the HHS Defendants), challenging the risk-adjustment program and two rules promulgated pursuant to the program.The Fifth Circuit explained that determining whether the district court’s “final judgment” was truly an appealable judgment is necessary to establish whether the court has jurisdiction. The court explained that it has recognized an exception to the general rule and determined it had jurisdiction “when the agency would be unable to later appeal the issue that is the subject of the remand order,” such as when “all that is left for remand is a ministerial accounting.”Here, though the district court denied summary judgment as to Vista’s procedural due process claim, the court then explicitly entered a “Final Judgment” stating “nothing remains to resolve ... the case is hereby CLOSED”— suggesting the court “end[ed] the litigation on the merits.” The court held that the district court, in denying summary judgment on Vista’s procedural due process claim and then remanding it for further proceedings, did not yet fully dispose of the case., Thus, there was no appealable final judgment, and the court lacks jurisdiction to reach the substance of Vista’s appeal. View "Vista Health Plan v. HHS" on Justia Law

Dynamic CRM Recruiting Solutions sued UMA Education in Harris County district court for alleged misappropriation of Dynamic’s software in breach of their licensing agreement (“the Agreement”). UMA removed the action to federal district court, which in turn remanded it to state court based on the parties’ contractual forum selection clause.The Fifth Circuit found that the forum state is Texas, and the Agreement provides that its interpretation shall be governed by Texas law. The court reasoned that contractual choice-of-law clauses are generally valid under Texas law unless they violate one of the limitations set forth in the Restatement (Second) of Conflict of Laws Sec. 187 (1971), and neither party here has argued that this clause is invalid on this ground.Further, since the Agreement provides that disputes arising thereunder must be “brought before the district courts of Harris County”, UMA has contractually waived its right to remove the suit. UMA also argued that the district court abused its discretion in allowing Dynamic to drop its claims for conversion, quantum meruit, lien foreclosure, and violations of the TTLA. The court found that it need not reach the jurisdictional point because the district court properly allowed Dynamic to amend its complaint. Thus, the court affirmed the district court’s ruling. View "Dynamic CRM v. UMA Education" on Justia Law