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

This case arises from a dispute regarding a joint financial venture between Noble Capital Fund Management, L.L.C. (“Noble”) and US Capital Global Investment Management, L.L.C. (“US Capital”). Noble created two separate funds, collectively the “Feeder Funds."Noble and the Feeder Funds initiated a JAMS arbitration against US Capital, alleging various claims including the breach of contractual and fiduciary duties. US Capital was unable to pay the arbitration fees, and the JAMS panel terminated the arbitration.On November 24, 2020, Noble and the Feeder Funds sued US Capital in Texas state court for various claims including fraud and fraudulent inducement. US Capital appeals the denial of its motion to compel arbitration and stay judicial proceedings and the denial of its motion to transfer.The court explained the Federal Arbitration Act requires that, where a suit is referable to arbitration, judicial proceedings be stayed until arbitration "has been had." Here, there is no arbitration to return this case to and parties may not avoid resolution of live claims by compelling a new arbitration proceeding after the first proceeding failed. Further, the court found no pendent jurisdiction over the denial of the motion to transfer. The court affirmed the district court’s ruling and dismissed the appeal of the district court’s denial of the motion to transfer. View "Noble Capital Fund v. US Capital Global" on Justia Law

Plaintiff was injured when a gun manufactured by the defendant accidentally discharged. Plaintiff and her family filed several claims in the district court. The district court dismissed all parties’ claims except the plaintiff’s defective-design claim under the Louisiana Product Liability Act. Plaintiff recovered $500,000 and the defendant appealed.On appeal, the Fifth Circuit reversed the district court’s finding that the Louisiana Product Liability Act (“LPLA”) permitted the plaintiff’s claim. Section 60(b) of the LPLA provides that no firearm manufacturer can be held liable for any shooting injury unless the injury was “proximately caused by the unreasonably dangerous construction or composition of the product.” The court held that this language unambiguously bars design-defect claims. The court also rejected the plaintiff’s argument that the natural reading of Section 60(b) leads to an absurd result. View "Seguin v. Remington Arms" on Justia Law

Walmart employees stopped the plaintiffs, a woman and her daughter, on suspicion of shoplifting. The plaintiffs sued Walmart in state court, alleging false imprisonment, among other claims. Walmart removed the case to federal court, and the district court dismissed some claims and entered summary judgment in favor of Walmart. Regarding the plaintiffs' Texas Deceptive Trade Practices & Consumer Protection Act claim, the court found they failed to identify any facts that would establish an unconscionable action. Next, plaintiffs assert that Walmart employees committed acts underlying their false imprisonment claims and that Walmart is vicariously liable. The court reasoned that the off-duty police officer is treated as an anon-duty police officer for vicarious liability purposes. As a result, Walmart cannot be vicariously liable for the off-duty officer’s actions. Plaintiffs further argue that Walmart did not establish that her detention was reasonable. The court found that plaintiff cannot state a prima facie case for assault, battery, or offensive contact. Finally, they do not provide any argument that they were harmed, let alone substantially prejudiced, by allowing Walmart to attach portions of depositions, an asset protection case record sheet, and body camera footage. The court found that the plaintiffs failed to demonstrate the necessary elements for their claims. View "Huynh v. Walmart" on Justia Law

Appellants (“Defense Distributed”) have challenged publication restraints imposed by the U.S. State Department, federal courts, and the State of New Jersey (“NJ”) after appellants published the internet computer-assisted design (“CAD”) files for a single-round plastic pistol. Although Defense Distributed is still prevented from publishing, the CAD files it published remain available on many other websites. At issue in this combined appeal and motion for mandamus relief stems from a district court’s (“DC”) order severing the case and transferring it to a federal court in NJ. The court found that the Defense Distributed satisfied the first two conditions for mandamus relief. Further, the NJ Attorney General did not carry its burden to demonstrate that transfer is more appropriate than the plaintiffs’ choice of forum.The court concluded that the DC’s order severing and transferring the claims against the NJAG to the District of New Jersey was a clear abuse of discretion, giving rise to an appropriate exercise of the court’s mandamus power. View "Defense Distributed v. Bruck" on Justia Law

Plaintiffs and the United States filed suit against the State of Texas, as well as state and local officials, seeking to enjoin enforcement of some or all of the new provisions in Senate Bill 1, which amended various provisions of the Texas Election Code pertaining to voter registration, voting by mail, poll watchers, and more.The Fifth Circuit reversed the district court's denial of the Committees' motion to intervene as defendants, concluding that the Committees have a right to intervene under Federal Rule of Civil Procedure 24(a)(2). The court determined that the Committees made a timely application to intervene by right; they claim interests relating to SB 1 which is the subject of this consolidated suit; their absence from the suit may practically impede their ability to protect their interests; and the existing parties might not adequately represent those interests. Accordingly, the court remanded to allow the Committees to intervene by right in this suit. View "La Union del Pueblo Entero v. Harris County Republican Party" on Justia Law

The Fifth Circuit affirmed the district court's grant of defendant's motion to dismiss plaintiffs' action seeking to force payment on their state court judgment. In this case, plaintiffs succeeded in winning a money judgment against a state governmental entity in state court in Louisiana, but the Louisiana Constitution bars the seizure of public funds or property to satisfy a judgment against the state or its political subdivisions. The court agreed with the district court's application of long-standing precedent that there is no property right to timely payment on a judgment. Because plaintiffs' claims are foreclosed by Folsom v. City of New Orleans, 109 U.S. 285 (1883), the district court properly dismissed the case. Finally, the district court properly declined to hear plaintiffs' standalone claim to declaratory relief, and the district court did not abuse its discretion by denying to grant leave to amend as amendment would be futile. View "Ariyan, Inc. v. Sewerage and Water Board of New Orleans" on Justia Law

Plaintiff filed suit against Wedgewood in Texas state court after his mother, Emma Mitchell, died in a nursing home. Plaintiff alleged state-law causes of action for medical negligence, corporate negligence, and gross negligence. After removal to federal court, the district court granted plaintiff's motion to remand to state court.The Fifth Circuit affirmed the district court's judgment, concluding that the Public Readiness and Emergency Preparedness (PREP) Act does not completely preempt plaintiff's state-law negligence claims. The court explained that, because the compensation fund created by the Act does not satisfy this Circuit's test for complete preemption, and because plaintiff could not have brought his claims under the willful-misconduct cause of action, those claims are not completely preempted. The court also rejected Wedgewood's claim that plaintiff's claims raise a significant federal issue that creates federal jurisdiction under the Grable doctrine. The court concluded that Wedgewood cannot avail itself of the federal officer removal statute because it failed to satisfy the third prong of the test where it was not acting pursuant to a federal officer's directions. Accordingly, the court remanded with directions to further remand to the appropriate state court. View "Mitchell v. Advanced HCS, LLC" on Justia Law

This case presents a coda to its companion appeal, No. 20-50671. The Fifth Circuit affirmed the district court's post-judgment order, as modified, charging defendant's membership interest in M. G. & Sons, a single-member LLC, and requiring both defendant and M. G. & Sons to obtain leave of court before transferring assets to third parties. The court stated that it is well established that courts have the power to enforce their judgments through injunctive relief. The court concluded that the district court properly exercised this power, in addition to charging defendant's interest in M. G. & Sons according to Texas law, by restricting Hughes from transferring assets to evade the district court's judgment. View "Thomas v. Hughes" on Justia Law

The Fifth Circuit slightly modified the district court's final judgment to prevent the possibility of double recovery and otherwise affirmed the district court's final judgment, attorney's fee award, and denial of post-judgment relief on various grounds. The court concluded that the district court did not err in limiting defendant's testimony as it did; the evidence was sufficient for the jury to conclude that defendant and Performance Probiotics misappropriated trade secrets; defendant breached her fiduciary duty to PPI; defendant fraudulently transferred assets in violation of the Texas Uniform Fraudulent Transfer Act; and to support the jury's decision to pierce the corporate veils of PPI and Performance Probiotics.The court also concluded that the district court did not err by retaining jurisdiction over API or abuse its discretion either in denying defendant's motion for a new trial or in awarding attorney's fees and expenses. The court clarified that the district court's judgment could be read to allow for a duplicative recovery and thus modified the judgment affirmatively to state that plaintiffs may not recover the amount of the Comal County judgment twice. View "Thomas v. Hughes" on Justia Law

Continental, an auto-parts supplier, brought suit in the Northern District of California against several standard-essential patent holders and their licensing agent, claiming violations of federal antitrust law and attendant state law. The case was then transferred to federal district court where it was dismissed at the pleadings stage.The Fifth Circuit vacated the district court's judgment and remanded with instructions to dismiss for lack of standing. The court concluded that the two theories Continental alleges, based on indemnity obligations and a refusal to license, are inadequate to prove the supplier has Article III standing, let alone that it has antitrust standing or has suffered harm flowing from an antitrust violation. In this case, defendants' harm to Continental on account of Continental's indemnity obligations to original equipment manufacturers remains speculative. Furthermore, the court disagreed with the district court's conclusion that Continental's alleged unsuccessful attempts to obtain licenses on fair, reasonable, and nondiscriminatory terms from defendants comprise an injury in fact conferring Article III standing. View "Continental Automotive Systems v. Avanci, LLC" on Justia Law