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

Articles Posted in Civil Procedure
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Southern Recycling brought a petition for exoneration or limitation of liability under the Limitation of Liability Act. The petition arose from an accident during shipbreaking operations that killed one worker and injured another. Claimants moved to dismiss under Federal Rule of Civil Procedure 12(b)(1) for lack of admiralty jurisdiction, and the district court granted the motion.The Fifth Circuit affirmed the district court's dismissal based on lack of subject matter jurisdiction. The court explained that the jurisdictional question of whether DBL 134 is a vessel is antecedent to the merits in a limitation action, rather than intertwined with the merits, and thus the district court did not err in applying the usual Rule 12(b)(1) standard and resolving factual disputes about the physical characteristics of the structure. The court also concluded that Southern Recycling failed to demonstrate that, based on its physical characteristics, DBL 134 had no been removed from navigation. Therefore, the district court did not err in concluding that DBL 134 was not longer a "vessel," but instead was a "dead ship." Finally, Southern Recycling has not shown why it needed further discovery or what material evidence further discovery could have produced that was not already available to it. View "Southern Recycling, LLC v. Aguilar" on Justia Law

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El Paso County and BNHR, a community organization headquartered in El Paso, filed suit challenging the government's use of funds allocated for 10 U.S.C. 284 and 2808 purposes to construct a wall on the southern border. The district court enjoined defendants from using section 2808 funds to build the border wall but declined to enjoin defendants from using section 284 funds.The Fifth Circuit held that El Paso County and BNHR do not have standing to challenge either the section 2808 or section 284 expenditures. The court concluded that a county's loss of general tax revenues as an indirect result of federal policy is not a cognizable injury in fact. In this case, El Paso County only alleges a loss of general tax revenue, and thus has not established a cognizable injury in fact sufficient to establish standing to challenge the government's section 2808 expenditures. Even if El Paso County's alleged economic injury were cognizable, the county fails to demonstrate that the injury is redressable by a favorable decision in this case. The court explained that an order granting relief against the section 2808 expenditures would not rescind the proclamation and accordingly would not redress any harm caused by the proclamation. Therefore, the alleged reputational injuries do not provide El Paso County standing to challenge the section 2808 expenditures. Furthermore, BNHR failed to establish standing to challenge the government's section 2808 expenditures by establishing an injury in fact. In this case, BNHR's single vague, conclusory assertion that the organization had to divert resources is insufficient to establish that the section 2808 construction has "perceptibly impaired" the organization's ability to carry out its mission. Likewise, the court concluded that El Paso County and BNHR do not have standing to challenge the government's section 284 expenditures. Accordingly, the court reversed the district court's grant of summary judgment for plaintiffs; vacated the district court's injunction enjoining the section 2808 expenditures; and remanded for dismissal of all claims for lack of jurisdiction. View "El Paso County v. Trump" on Justia Law

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After movants, who were the plaintiffs in a separate but similar case, were denied intervention in the district court, they moved to intervene in the Secretary of State's ongoing appeal concerning signature-verification procedures for ballots.The Fifth Circuit denied the motion to intervene because intervention on appeal is reserved for exceptional cases and movants' reasons for intervening do not come close to that high threshold. The court rejected movants' argument in favor of intervention because their appeal needs to be consolidated with the Secretary's appeal. The court explained that, because both movants and the Secretary are appealing from the same order, both appeals have been docketed under the same case number in this court. Therefore, assuming the motion to intervene in the Secretary's appeal is denied, the same merits panel will hear both the Secretary's appeal of the summary judgment and movants' appeal of the denial of their motion to intervene. The court stated that, to the extent movants want their voices heard, the proper procedure is to move to appear as amici curiae, not to move to intervene. Finally, the court declined to strike the motion. View "Richardson v. Texas Secretary of State" on Justia Law

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The Fifth Circuit affirmed the district court's judgment of dismissal without prejudice based on forum non conveniens. The district court enforced a disputed forum selection clause requiring litigation in the 19th Judicial District Court in and for the Parish of East Baton Rouge, Louisiana.The court held that the forum selection clause contained in Section 107.01 of the 2006 Standard Specifications governs the dispute at issue, is mandatory, and is enforceable. The court also held that appellant has waived any argument that public-interest factors require retention of this suit in the federal court system. View "PCL Civil Constructors, Inc. v. Arch Insurance Co." on Justia Law

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The Fifth Circuit reversed the district court's decision affirming the bankruptcy court's denial of plaintiff's motion for leave to amend. In this case, plaintiff sought to amend his complaint to include allegations that the Brewer & Pritchard attorneys assured him during a brief recess during bankruptcy proceedings that they would treat the bankruptcy court's proposed fees as part of plaintiff's "Gross Recovery" under his written agreement with Brewer & Pritchard.The court held that had plaintiff been granted leave to amend his complaint, his proposed claims—whatever their merit—would not have been subject to dismissal under the doctrine of res judicata. The court explained that the "conduct" plaintiff seeks to challenge is the alleged breach of fiduciary duty—the failure to follow through on the new representations supposedly made to him during the November 2017 hearing. Furthermore, at the time of the hearing, plaintiff could not have even known that the attorneys' assurances were misrepresentations, let alone that he should challenge them as such. The court remanded with instructions that plaintiff's motion for leave to amend be granted. View "Rohi v. Brewer" on Justia Law

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Under 28 U.S.C. 1782, a person may seek the assistance of a federal district court to obtain evidence for use in a foreign proceeding. Banca Pueyo and others invoked section 1782 to obtain discovery from three Texas-based entities for use in Portuguese proceedings. The district court authorized the requested subpoenas and denied a first motion to quash. Respondents then appealed. However, respondents' second motion to quash the subpoenas remained pending.The Fifth Circuit granted petitioners' motion to dismiss and dismissed respondents' appeal based on lack of jurisdiction. The court explained that once the district court fully resolves the second motion to quash, the scope of section 1782 discovery should be definitively resolved. When that conclusive determination comes, the court stated that an appeal would be appropriate. View "Banca Pueyo SA v. Lone Star Fund IX (US)" on Justia Law

Posted in: Civil Procedure
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Plaintiffs filed suit against Sundance, SEA Eagle, Noble, and others for royalties pursuant to a Texas mineral lease. Plaintiffs allege that defendants negligently calculated royalty distributions and attempted to coerce them to sign an indemnity agreement when the error was brought to their attention.The Fifth Circuit affirmed the district court's dismissal of all claims against Sundance, SEA Eagle, and Noble without prejudice for lack of personal jurisdiction. After splitting defendants into two groups, the court held that the district court correctly found that defendants do not have sufficient minimum contacts with the state of Louisiana to support an exercise of specific personal jurisdiction. View "Libersat v. Sundance Energy, Inc." on Justia Law

Posted in: Civil Procedure
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The Fifth Circuit affirmed the district court's dismissal without prejudice for lack of subject matter jurisdiction of plaintiff's pro se complaint against Toyota and Diversity, alleging claims under 42 U.S.C. 1983 and Mississippi state law.In this case, the amended complaint alleged that plaintiff and Diversity are citizens of the same state. Therefore, the district court was correct in holding that there is no diversity jurisdiction and thus no subject matter jurisdiction. The court stated that plaintiff's altering of the jurisdictional facts she alleges on appeal—omitting any mention of Diversity's citizenship in her appellate brief and alleging only that Diversity is "located" in Indiana in her appellate reply brief—does not alter the court's decision. Even assuming the altered jurisdictional facts are true, plaintiff has not met her burden of establishing complete diversity of the parties. View "Smith v. Toyota Motor Corp." on Justia Law

Posted in: Civil Procedure
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Plaintiffs, a certified class of minor children in the permanent managing conservatorship (PMC) of the Texas Department of Family Protective Services, filed 42 U.S.C. 1983 claims alleging that the Texas foster-care system violated their substantive due process right to be free from an unreasonable risk of harm. The district court issued a wide-ranging permanent injunction imposing sweeping changes on the Texas foster-care system. The Fifth Circuit vacated and remanded the injunction to the district court for modification; the district court made additional modifications to the injunction; and the state appealed again.The Fifth Circuit then instructed the district court to begin implementing, without further changes, the modified injunction with the alterations the court made. On remand, however, the district court expanded the injunction again by enjoining the state from moving any PMC child from their current placement as a result of enforcement of the court's requirement for 24-hour awake-night supervision unless application is made to the court prior to the proposed discharge. The Fifth Circuit reversed and held that it is black-letter law that a district court must comply with a mandate issued by an appellate court. The Fifth Circuit remanded to the district court to begin implementing, without further changes, the modified injunction with the alterations the court has made. View "M.D. v. Abbott" on Justia Law

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The Fifth Circuit granted a petition for mandamus filed by HC Operating, LP. Purchasers filed two Notices of Lis Pendens, in Denton County and Dallas County real property records; sellers moved to expunge the Notices, followed by related pleadings, which were forwarded to a magistrate judge for recommendations; and the magistrate judge issued findings, conclusions and recommendations denying relief, and the district court accepted his recommendations. Consequently, the district court denied Motions to Expunge Lis Pendens Notices, and Motions to Cancel the notices.The court held that allowing the Purchasers to maintain the notices of lis pendens filed in this case was based on clear and indisputable errors of fact and law; the Sellers have no other adequate means of seeking redress than by issuance of this writ; and mandamus is "appropriate under the circumstances." In this case, the district court misread the governing acquisition documents, misapprehended Texas law regarding notices of lis pendens, misapplied the facts to the law, and therefore acquiesced in a gross abuse by Purchasers of state lis pendens law. View "In Re: Huffines Retail Partners, LP" on Justia Law

Posted in: Civil Procedure