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

John Craig First purchased an agricultural combine from Rolling Plains Implement Company, which was manufactured by AGCO Corporation. First was told the combine was part of AGCO’s Certified Pre-Owned Program, had roughly 400 hours of use, and had never been to the field. However, these representations were false; the combine was not certified and had over 1,200 hours of use. After experiencing numerous issues with the combine, First discovered in 2019 that it had an extensive repair history and over 900 hours of use. He then filed a lawsuit against Rolling Plains, AGCO Corporation, AGCO Service, AGCO Finance, and other related entities.Initially, First filed his lawsuit in the District Court of Oklahoma County, but it was removed to federal court in Oklahoma, which dismissed the case without prejudice and transferred it to the Northern District of Texas. First amended his complaint multiple times, asserting claims of fraud, breach of warranty, and failure of essential purpose. The district court dismissed the fraud claims against AGCO Corporation, AGCO Service, and AGCO Finance for lack of particularity and granted summary judgment in favor of AGCO Finance on the warranty claims. The case proceeded to trial on the remaining claims, where the jury found that First knew or should have known of the fraud by April 13, 2017, and awarded him $96,000 in damages. However, the district court entered judgment in favor of Rolling Plains based on the statute of limitations.The United States Court of Appeals for the Fifth Circuit reviewed the case. It vacated the district court’s judgment as a matter of law in favor of Rolling Plains, finding insufficient evidence to support the jury’s selected date for the statute of limitations. The case was remanded for retrial on when First’s cause of action accrued. The appellate court affirmed the dismissal of fraud claims against AGCO Corporation, AGCO Service, and AGCO Finance, and upheld the summary judgment in favor of AGCO Finance on the warranty claims. View "First v. Rolling Plains Implement Co." on Justia Law

A group of business associations, including the Fort Worth Chamber of Commerce, challenged a new Final Rule issued by the Consumer Financial Protection Bureau (CFPB) regarding credit card late fees. The plaintiffs argued that the district court had abused its discretion by transferring their challenge to the United States District Court for the District of Columbia. The case had a complex procedural history, with the district court transferring venue twice under 28 U.S.C. § 1404(a). The first transfer was reversed by a different panel because the district court lacked jurisdiction to transfer the case while the plaintiffs' appeal of the denial of its preliminary-injunction motion was pending.The district court in the Northern District of Texas had initially transferred the case to the District of Columbia, but this decision was challenged by the plaintiffs. The Fifth Circuit Court of Appeals had previously issued a writ of mandamus because the district court lacked jurisdiction to transfer the case while the plaintiffs' appeal of the denial of its preliminary-injunction motion was pending. The district court then transferred the case again, this time under § 1404(a), which allows for transfer for the convenience of parties and witnesses and in the interest of justice.The United States Court of Appeals for the Fifth Circuit ruled that the district court had misapplied the controlling § 1404(a) standard for transferring cases and that the transfer order was a clear abuse of discretion. The court granted the plaintiffs' petition for a writ of mandamus and directed the district court to vacate its transfer order. The court found that the district court had erred in considering the convenience of counsel and in finding that D.C. residents had a localized interest in the case. The court also noted that the district court's familiarity with the case due to a preliminary injunction did not lessen the weight of the court congestion factor in favor of transfer. View "In Re: Chamber of Commerce" on Justia Law

The case revolves around a data privacy dispute involving Pebbles Martin and LCMC Health Holdings and Louisiana Children’s Medical Center (collectively, “LCMC”). Martin filed a class action suit alleging that LCMC violated Louisiana law by embedding tracking pixels onto its website that shared her private health information with third-party websites. The question before the court was not to determine the merits of Martin’s claims, but instead to determine which forum—state or federal—is proper to hear this dispute. LCMC argued that the suit should proceed in federal court because it acted under the direction of a federal officer when it allegedly violated Louisiana law. Martin, however, argued that the suit should remain in state court because LCMC fails to show a basis for federal jurisdiction.LCMC had removed the case to federal court, invoking the federal officer removal statute as the basis for jurisdiction. Martin moved to remand to state court, and the district court granted Martin’s motion, holding that LCMC did not act under the direction of a federal officer when it disclosed private health information to third-party websites. LCMC appealed the remand order.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court concluded that LCMC did not act under the direction of a federal officer when it embedded tracking pixels onto its website. The court noted that a hospital does not act under the direction of the federal government when it maintains an online patient portal that utilizes tracking pixels. Therefore, the federal officer removal statute does not provide jurisdiction for this case to be heard in federal court. The court affirmed the district court’s order remanding this case to state court. View "Martin v. LCMC Health Holdings" on Justia Law

A group of business associations, including the Fort Worth Chamber of Commerce, filed a lawsuit in the Northern District of Texas against the Consumer Protection Financial Bureau (CFPB). The plaintiffs challenged a new Final Rule issued by the CFPB regarding credit card late fees and sought a preliminary injunction against the rule. The plaintiffs requested expedited briefing and review due to the imminent effect of the rule and the substantial compliance it required.The district court, instead of ruling on the motion for a preliminary injunction, considered whether venue was appropriate in the Northern District of Texas and invited the CFPB to file a motion to transfer the case. The CFPB complied, and the district court granted its motion, transferring the case to the United States District Court for the District of Columbia. The plaintiffs then petitioned for a writ of mandamus, arguing that the district court abused its discretion by transferring the case while their appeal was pending and, alternatively, lacked jurisdiction to transfer the case.The United States Court of Appeals for the Fifth Circuit agreed with the plaintiffs, stating that the district court acted without jurisdiction. The court explained that once a party properly appeals something a district court has done, in this case, the effective denial of a preliminary injunction, the district court has no jurisdiction to do anything that alters the case’s status. The court clarified that its decision was not about the correctness of the district court’s transfer order but rather about whether the court had jurisdiction to enter it. The court concluded that the district court did not have jurisdiction to transfer the case.The court granted the petition for mandamus, vacated the district court’s transfer order, and ordered the district court to reopen the case. The court also instructed the district court to notify the District of Columbia that its transfer was without jurisdiction and should be disregarded. View "In re: Chamber of Commerce" on Justia Law

In this case, the United States Court of Appeals for the Fifth Circuit examined a case involving widowed octogenarians Iris Calogero and Margie Nell Randolph, who received dunning letters from a Louisiana law firm, Shows, Cali & Walsh (SCW). The letters came as part of the recovery efforts for a program known as the "Road Home" grant program, which was established to provide funds for home repair and rebuilding after Hurricanes Katrina and Rita. The widows claimed that the letters were misleading and violated the Fair Debt Collection Practices Act (FDCPA). The district court initially granted summary judgment in favor of SCW, but this ruling was reversed on appeal.The case centered on the interpretation of the FDCPA, which prohibits debt collectors from using false or misleading representations in connection with the collection of any debt. The plaintiffs claimed that SCW had misrepresented the status of their debts, collected or attempted to collect time-barred debts, and threatened to assess attorneys' fees without determining whether such a right existed.The Fifth Circuit Court of Appeals agreed with the plaintiffs and held that SCW had violated the FDCPA in three ways: by misrepresenting the judicial enforceability of the time-barred debts; by mischaracterizing Calogero's debt; and by misrepresenting the availability of attorneys' fees. The court found that the dunning letters were untimely, misleading, and threatened action that SCW had no legal basis to take, such as collecting attorneys' fees not authorized by contract or statute.Therefore, the Court reversed the district court's judgment and remanded the case for further proceedings. View "Calogero v. Shows, Cali & Walsh" on Justia Law

This case is part of the battle between telecommunications providers that are attempting to expand next-generation wireless services (commonly called 5G) and municipalities that are resisting that expansion. The City of Pasadena used another method: aesthetic design standards incorporating spacing and undergrounding requirements The city invoked those requirements to block Crown Castle’s ability to develop a 5G network in the region, and Crown Castle sued for relief. Congress and the Federal Communications Commission (“FCC”) anticipated those strategies and previously had passed the Federal Telecommunications Act (“FTA”) and responsive regulations. As a result, the district court decided in favor of Crown Castle, primarily basing its decision on the expansive language of the FTA and an FCC ruling interpreting the Act in light of 5G technology and associated challenges.The Fifth Circuit affirmed. The court held that the FTA preempts the city’s spacing and undergrounding requirements, and the city forfeited its arguments relating to the safe-harbor provision in the FTA. Nor did the district court abuse its discretion in ordering a permanent injunction. The court explained that, as the court found, the regulations affect only small cell nodes that would permit T-Mobile to offer extensive 5G service in Pasadena. Moreover, the court wrote that a party seeking a permanent injunction must establish (1) actual success on the merits; (2) that it is likely to suffer irreparable harm in the absence of injunctive relief; (3) that the balance of equities tips in that party’s favor; and (4) that an injunction is in the public interest. All those factors weigh in Crown Castle’s favor. View "Crown Castle Fiber v. City of Pasadena" on Justia Law

The PredictIt Market is an online marketplace that lets people trade on the predicted outcomes of political events. Essentially, it is a futures market for politics. In 2014, a division within the Commodity Futures Trading Commission (“CFTC”) issued PredictIt a “no-action letter,” effectively allowing it to operate without registering under federal law. But, in 2022, the division rescinded the no-action letter, accusing PredictIt of violating the letter’s terms but without explaining how. It also ordered all outstanding PredictIt contracts to be closed in fewer than six months. Various parties who participate in PredictIt (collectively, “Appellants”) challenged the no-action letter’s rescission in federal district court and moved for a preliminary injunction. The district court has not ruled on that motion, though, despite PredictIt’s looming shutdown. Appellants sought review, treating the district court’s inaction as effectively denying a preliminary injunction.   The Fifth Circuit concluded that a preliminary injunction was warranted because the CFTC’s rescission of the no-action letter was likely arbitrary and capricious. So, the court remanded for the district court to enter a preliminary injunction while it considers Appellants’ challenge to the CFTC’s actions. The court explained that the DMO’s withdrawal of no-action relief constitutes final agency action. Further, the decision to rescind a no-action letter is not “committed to agency discretion by law.” The court concluded that the revocation of the no-action letter was likely arbitrary and capricious because the agency gave no reasons for it. And the agency’s attempts to retroactively justify the revocation after oral argument—and in the face of our injunction—only underscore why Appellants are likely to prevail. View "Clarke v. CFTR" on Justia Law

Plaintiffs' son, who was allergic to dairy, tree nuts and fish, suffered an allergic reaction after eating a "vegan cupcake from Whole Foods. Plaintiffs filed negligence and strict liability claims against Whole Foods, based in part on Mother leaving her job to provide full-time care for her son. In response, Whole Foods argued that Plaintiffs' claims were preempted by the Food, Drug, and Cosmetic Act. The district court granted Whole Foods' motion and plaintiffs appealed.On appeal, the Fifth Circuit reversed, finding that Plainitffs' claims were not impliedly preempted because each of their tort claims is “a recognized state tort claim” rather than “a freestanding federal cause of action based on violation of FDA regulations. View "Spano v. Whole Foods, Inc." on Justia Law

The Food and Drug Administration (“FDA”) approved mifepristone to be marketed with the brand name Mifeprex under Subpart H (the “2000 Approval”). In January 2023, FDA approved a modified REMS for mifepristone, lifting the in-person dispensing requirement.  Plaintiffs (physicians and physician organizations) filed a suit against FDA, HHS, and a several agency heads in the official capacities. Plaintiffs challenged FDA’s 2000 Approval of the drug and also requested multiple grounds of alternative relief for FDA’s subsequent actions. Plaintiffs moved for a preliminary injunction ordering FDA to withdraw or suspend (1) FDA’s 2000 Approval and 2019 Generic Approval, (2) FDA’s 2016 Major REMS Changes, and (3) FDA’s 2021 Mail-Order Decision and its 2021 Petition Denial of the 2019 Citizen Petition. The district court entered an order staying the effective date of the 2000 Approval and each of the subsequent challenged actions.   The Fifth Circuit granted Defendants’ motions for a stay pending appeal. The court wrote that at this preliminary stage, and based on the court’s necessarily abbreviated review, it appears that the statute of limitations bars Plaintiffs’ challenges to the Food and Drug Administration’s approval of mifepristone in 2000. However, Plaintiffs brought a series of alternative arguments regarding FDA’s actions in 2016 and subsequent years. And the district court emphasized that its order separately applied to prohibit FDA’s actions in and after 2016 in accordance with Plaintiffs’ alternative arguments. As to those alternative arguments, Plaintiffs’ claims are timely. Defendants have not shown that Plaintiffs are unlikely to succeed on the merits of their timely challenges. For that reason, Defendants’ motions for a stay pending appeal are denied in part. View "Alliance Hippocratic Medicine v. FDA" on Justia Law

Louisiana passed the Truth in Labeling of Food Products Act (the “Act”) to “protect consumers from misleading and false labeling of food products that are edible by humans.” The Act bars, among other things, the intentional “misbranding or misrepresenting of any food product as an agricultural product” through several different labeling practices. Turtle Island Foods, S.P.C. (d/b/a Tofurky), markets and sells its products in Louisiana. Tofurky believes it operates under a constant threat of enforcement. Tofurky sued Louisiana’s Commissioner of Agriculture and Forestry, seeking declaratory and injunctive relief. The parties filed cross-motions for summary judgment, and the district court sided with Tofurky. It held that Tofurky had standing to challenge the Act and that the statute was an unconstitutional restriction on Tofurky’s right to free speech. The State appealed.   The Fifth Circuit reversed. The court explained that nothing in the statute’s language requires the State to enforce its punitive provisions on a company that sells its products in a way that just so happens to confuse a consumer. The State’s construction limits the Act’s scope to representations by companies that actually intend consumers to be misled about whether a product is an “agricultural product” when it is not. This interpretation is not contradictory to the Act, and the court thus accepted it for the present purposes of evaluating Tofurky’s facial challenge. The district court erred in ignoring the State’s limiting construction and in implementing its own interpretation of the Act. View "Turtle Island Foods v. Strain" on Justia Law