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

The Fifth Circuit joined the Fourth Circuit in holding that the Fair Labor Standards Act preempts redundant state law tort claims for unpaid minimum wages and overtime compensation when the state's law does not provide for minimum wages and overtime compensation. In this case, Mississippi does not have state labor laws governing minimum wage or overtime, so it would be impossible for Employees to state a claim for wage and hour violations under state law independent of the FLSA. Furthermore, it would be impossible for Employees to state a claim under the FLSA because sovereign immunity bars suit against the DOC. The court explained that the state law claims based on violations of the FLSA similarly fail because of preemption. Therefore, the court concluded that dismissal with prejudice was appropriate. The court affirmed all dispositions of the district court. View "Aldridge v. Mississippi Department of Corrections" on Justia Law

The Fifth Circuit granted panel rehearing; denied rehearing en banc; withdrew its prior opinion; and substituted the following opinion.Frank Williams, Jr. filed suit in Louisiana state court against his former employer, Lockheed Martin, seeking to recover damages for asbestos-related injuries. After Williams passed away, his children were substituted as plaintiffs. Lockheed Martin removed the case under federal officer removal jurisdiction and the district court granted summary judgment for Lockheed Martin, issuing sanctions against plaintiffs' counsel for improper ex parte communications.The court affirmed the district court's judgment, concluding that the district court properly considered the full state-court record as it existed at the time of removal and Lockheed Martin has met the requirements for federal officer removal jurisdiction under 28 U.S.C. 1442(a)(2)(1). In this case, Lockheed Martin alleged the requisite nexus and has stated sufficient facts to make out a colorable Boyle defense. The court also concluded that the district court did not abuse its discretion with respect to any of the challenged discovery orders.The court applied Louisiana law and affirmed the district court's grant of summary judgment in favor of Lockheed Martin on plaintiffs' survival and wrongful death claims. Finally, the court concluded that the district court did not err by imposing sanctions on plaintiffs' attorney and that the district court did not abuse its discretion in awarding $10,000 in attorney's fees. View "Williams v. Lockheed Martin Corp." on Justia Law

After St. Charles filed suit against BCBS in Louisiana state court for state law fraud and abuse-of-right claims, BCBS removed the action to federal court. St. Charles had filed its third-amended petition and produced documents listing claims that involved patients insured under the Federal Employees Health Benefits Act (FEHBA).The Fifth Circuit concluded that the appropriate course is for the district court to determine on remand whether St. Charles's waivers defeat federal officer jurisdiction, because the issue was neither a basis for the district court's decision nor extensively briefed by either party, and because the record was not fully developed in the district court. If St. Charles's waiver of FEHBA-governed claims does not settle the matter, the district court's jurisdiction hinges on a proper analysis of federal officer removal. Weighing the district court's remand order against the clarified test for federal officer removal in Latiolais v. Huntington Ingalls, Inc., 951 F.3d 286, 290 (5th Cir. 2020) (en banc), the court concluded that the district court erred in its analysis. First, the district court applied St. Charles I too narrowly in determining that BCBS was not "acting under" OPM merely because St. Charles's claims "do not arise out of procedures dictated by OPM." Furthermore, even though the district court stated that the "causal nexus" element "ha[d] no bearing on the [c]ourt's decision in this case," the court concluded that this issue should be revisited on remand. Accordingly, the court vacated the district court's remand order and remanded for further proceedings. View "St. Charles Surgical Hospital, LLC v. Louisiana Health Service & Indemnity Co." on Justia Law

The Fifth Circuit vacated the magistrate judge's grant of PNC Bank's motion for summary judgment for foreclosure, concluding that the magistrate judge lacked subject matter jurisdiction to conduct proceedings and to enter a final judgment. Finding Roell v. Withrow, 538 U.S. 580 (2003), distinguishable from this case, the court could not say that PNC's consent to trial by magistrate judge was clear and unambiguous because its express statement of non-consent is flatly inconsistent with its subsequent conduct. Accordingly, the court remanded for further proceedings. View "PNC Bank v. Ruiz" on Justia Law

This diversity action brought by plaintiffs involves a dispute concerning a sinkhole that emerged near the decades-long salt-mining activities of one of the defendants. The district court approved the settlement and defendant appealed.The Fifth Circuit concluded that the settlement agreement leaves plaintiffs with claims against Texas Brine for post-sinkhole damages, and it affects Texas Brine's ability to seek indemnification and contribution from the pre-2012 Insurers for those claims. The court explained that such a settlement is certainly proper if Texas Brine did not have any right to indemnification or contribution from the pre-2012 Insurers for post-sinkhole damages. The court applied Louisiana law and concluded that Texas Brine has failed to meet its burden to show that the post-sinkhole claims were covered under the 2011 Zurich policy. Therefore, Texas Brine has failed to show plain legal prejudice from the settlement agreement, and that it has a right to contribution or indemnification from the pre-2012 Insurers for the post-sinkhole claims. The court concluded that the settlement thus did not affect any such right and Texas Brine lacks standing as a non-party to object to the settlement. Accordingly, the court dismissed the appeal. View "LeBlanc v. Texas Brine Co., LLC" on Justia Law

A Louisiana law, La. Stat. Ann. 30:16, allows citizen suits to enforce state conservation laws, but any injunction the citizen might obtain must be entered in favor of the Commissioner of Louisiana's Office of Conservation. Plaintiff filed suit contending that this potential state involvement at the end of the litigation precludes diversity jurisdiction in federal court because there is no such jurisdiction when a State is a party. The district court disagreed, held that it had subject matter jurisdiction, and remanded to state court anyway based on Burford abstention.The Fifth Circuit denied the motion to dismiss the appeal for lack of jurisdiction; reversed the remand order; and remanded for further proceedings. The court concluded that it has subject matter jurisdiction over Grace Ranch's suit. The court explained that, despite Grace Ranch's listing of Louisiana in the style of the case, the State is not a proper party because it has not authorized landowners to sue in its name. Furthermore, Grace Ranch's real-party-in-interest argument for state involvement fares no better because Louisiana has only a general interest in the outcome of this suit. The court also concluded that it has appellate jurisdiction to review the district court's abstention-based remand order. Making explicit what was previously implicit in its caselaw, the court reasoned that a discretionary remand such as one on abstention grounds does not involve a removal "defect" within the meaning of 28 U.S.C. 1447(c). Finally, the court weighed the factors for Burford abstention and concluded that abstention is not warranted. View "Grace Ranch, LLC v. BP America Production, Co." on Justia Law

After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount. View "Tercero v. Texas Southmost College District" on Justia Law

The Fifth Circuit reversed the district court's dismissal of plaintiff's claims of discrimination and retaliation under Title VII of the Civil Rights Act. The district court dismissed the suit under Federal Rule of Civil Procedure 41(b) on the ground that plaintiff's counsel failed to retain local counsel as required by local rules. The court held that dismissal was unwarranted because Berry v. CIGNA/RSI-CIGNA, 975 F.2d 1188 (5th Cir. 1992), sets forth a strict framework that district courts must meet to justify dismissal with prejudice—and one that the district court plainly failed to meet here. In this case, the record shows neither a clear record of delay or contumacious conduct, nor the futility of lesser sanctions, nor any aggravating factor. Accordingly, the court remanded for further proceedings. View "Campbell v. Wilkinson" on Justia Law

Arbor Court filed suit challenging the City's refusal to grant permits to repair the damage caused by Hurricane Harvey to its apartment units. The district court dismissed, holding that the action was not ripe because Arbor Court had not yet obtained a decision from the final arbiter of Houston permit requests, the City Council. Since the filing of this appeal, the City Council has ruled and denied the permits.The Fifth Circuit held that the district court correctly concluded that this case was not ripe because the City Council had not yet denied the permits. The court explained that this conclusion warranted dismissal of the pending claims and the denial of Arbor Court's attempt to add yet another unripe claim. However, now that the Council has acted, the court held that the claims are ripe. Accordingly, the court vacated the district court's dismissal and remanded for further proceedings. The court also vacated the district court's denial of Arbor Court's motion for leave to file a third amended complaint. View "DM Arbor Court, Ltd. v. City of Houston" on Justia Law

Plaintiffs filed suit challenging USCIS's denial of their application to adjust their immigration status to lawful permanent residents under the diversity visa program. The district court dismissed the case with prejudice pursuant to Federal Rule of Civil Procedure 12(b)(6).The Fifth Circuit vacated the district court's judgment and dismissed the case, holding that the case was moot prior to the entry of the district court's final judgment. The court joined its sister circuits in concluding that a claim challenging the denial of a diversity visa status adjustment application becomes moot after the relevant fiscal year expires. In this case, plaintiffs' claim was moot at the time they filed their initial complaint. View "Ermuraki v. Renaud" on Justia Law