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

Three business entities and individuals associated with the operation of a retail store in Cedar Park, Texas, were subject to enforcement under a city ordinance banning “head shops”—stores selling items commonly used to ingest or inhale illegal substances. After receiving notices from the City, two of the appellants were charged in municipal court and fined for violating the ordinance, while the third appellant, a related business entity, was not charged. Following the municipal court’s judgment, the two charged parties appealed for a trial de novo in the county court, which annulled the municipal court’s judgment and began new criminal proceedings. They also pursued state habeas relief, which was still ongoing at the time of this appeal.Separately, the appellants filed a lawsuit in the United States District Court for the Western District of Texas, challenging the ordinance’s validity and constitutionality under federal and state law, and seeking declaratory and injunctive relief. The district court dismissed all claims as barred by the doctrine announced in Heck v. Humphrey, which precludes certain civil claims that would imply the invalidity of existing criminal convictions. The district court also dismissed a distinct claim related to termination of utility services.On appeal, the United States Court of Appeals for the Fifth Circuit held that because the municipal court’s judgments were annulled by the trial de novo and criminal proceedings were still pending under Texas law, there were no outstanding convictions to trigger the Heck bar. Thus, the Fifth Circuit reversed the district court’s dismissal of the claims challenging the ordinance and remanded for further proceedings. The court affirmed the district court’s dismissal of the standalone water termination claim, as the appellants had disclaimed any intent to pursue it. View "Kleinman v. City of Cedar Park" on Justia Law

A citizen advocacy group and two individuals challenged five provisions of a city ordinance in Kerrville, Texas, that regulated "canvassing" and "soliciting" activities at private residences and public streets. The ordinance defined "canvassing" as door-to-door advocacy on topics like religion, politics, or philosophy, and "soliciting" as seeking donations or advertising services, with both activities subject to restrictions on timing, signage, permitting, and location. Plaintiffs argued that these rules chilled their protected speech, including political canvassing, religious outreach, and commercial solicitation, and feared fines under the ordinance.The United States District Court for the Western District of Texas considered the plaintiffs’ request for a preliminary injunction. After a hearing, the district court found that the plaintiffs had standing as to most provisions except the rule applying to minors. On the merits, the district court enjoined enforcement of the permitting requirement for solicitors but declined to enjoin the hours, signage, and street restrictions, finding those likely constitutional under intermediate scrutiny.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed in part, reversed in part, and remanded. The Fifth Circuit agreed that plaintiffs had standing except as to the minor-related provision. It held that the hours and signage restrictions—because they targeted canvassing based on content—must be reviewed under strict scrutiny rather than intermediate scrutiny, and remanded for reconsideration. The court also found the city failed to justify the streets provision even under intermediate scrutiny and remanded for further injunction analysis. It affirmed the injunction against the permitting requirement but vacated it as overbroad, directing the district court to limit relief to the plaintiffs. The Fifth Circuit denied as moot the motion for an injunction pending appeal. View "LIA Network v. City of Kerrville" on Justia Law

A patient received treatment for diabetes at VA facilities from 2016 to 2022. In early 2020, he reported worsening symptoms and expressed dissatisfaction with his medical care, believing negligence contributed to his condition. Two years later, he filed a complaint with the Office of the Inspector General, alleging improper diagnosis and treatment at VA facilities. He also submitted a Standard Form-95 (SF-95) to the Office of the General Counsel, naming himself as claimant and his wife as a witness and property owner. The agency denied his claim, and he was informed of his right to sue. The couple then filed a pro se lawsuit under the Federal Tort Claims Act (FTCA), alleging negligent medical care caused kidney disease. Subsequently, the wife filed her own SF-95, asserting power of attorney, but the agency denied this claim as duplicative and because the couple had already sought judicial remedy.The United States District Court for the Eastern District of Texas, following a magistrate judge’s recommendation, dismissed the wife’s claims for failure to exhaust administrative remedies, dismissed both plaintiffs’ claims as time-barred, and denied leave to amend as futile. The plaintiffs objected, but the district court adopted the recommendations and dismissed the case with prejudice. The plaintiffs appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court held that the district court erred in finding the wife failed to exhaust administrative remedies for her property damage claim, because the administrative filing gave sufficient notice for that claim. However, the Fifth Circuit affirmed the district court’s dismissal on the alternative ground that all claims were barred by the FTCA’s statute of limitations, as the plaintiffs’ injuries and property damages were or should have been known more than two years before the administrative claims were filed. The denial of leave to amend was also affirmed. View "Ellsworth v. Dallas Texas Department of Veteran Affairs" on Justia Law

The plaintiff resided at an apartment complex with his son, who was arrested for aggravated armed robbery by the local police department. After the arrest, the police informed the apartment management, which then evicted both the plaintiff and his son based on a lease provision prohibiting criminal conduct. The plaintiff sought information about his son’s arrest from the city and police department under the Texas Public Information Act, but his request was denied after the city consulted the Texas Attorney General and invoked a law-enforcement exception.In the United States District Court for the Southern District of Texas, the plaintiff filed suit against the city, the police department, the apartment complex, a debt collection agency, and the Texas Attorney General, alleging violations of the U.S. Constitution, the Fair Debt Collection Practices Act, and Texas law. All defendants either appeared, filed answers, or moved to dismiss. The plaintiff moved for default judgment against each defendant, but the district court denied those motions and granted the defendants’ motions to dismiss. On appeal, the plaintiff only challenged the denial of default judgment, as he did not brief arguments regarding the dismissals and thus forfeited them.The United States Court of Appeals for the Fifth Circuit reviewed only the denial of default judgment for abuse of discretion. The court held that default judgment was not warranted because the city, police department, and debt collector had all appeared or answered, and the Attorney General had not been properly served. The court also found that arguments regarding attorney conflict and judicial bias were either forfeited or unsupported. The Fifth Circuit affirmed the district court’s denial of default judgment. View "Clark v. City of Pasadena" on Justia Law

An inpatient rehabilitation facility employed a sales representative who raised concerns about the facility’s use of nonclinical personnel in the preadmission screening process required for Medicare reimbursement. The sales representative was terminated after five months of employment. Shortly thereafter, she filed a qui tam action under the False Claims Act, alleging that the facility presented false claims to Medicare, used false records to obtain payment, and conspired to submit false claims. She amended her complaint multiple times, and the government declined to intervene in the case.The United States District Court for the Southern District of Texas reviewed the second amended complaint after the defendant moved to dismiss under Rule 12(b)(6). The magistrate judge recommended dismissal of all claims, finding the complaint insufficiently plausible and lacking the particularity required by Rules 8(a) and 9(b). The magistrate judge also recommended denying leave to further amend the complaint as futile under Rule 16. The district court adopted these recommendations, entered final judgment, and dismissed the case with prejudice. The plaintiff timely appealed.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s dismissal de novo and the denial of leave to amend for abuse of discretion. The Fifth Circuit held that the complaint failed to plead sufficient facts to support the elements of a False Claims Act violation, specifically the falsity of the claims and the connection between the alleged conduct and the submission of false claims. The court also found that amendment would be futile, as the plaintiff had already amended her complaint twice without remedying the deficiencies. The Fifth Circuit affirmed the district court’s dismissal of the claims with prejudice. View "Gentry v. Encompass Health Rehabilitation Hospital of Pearland, L.L.C." on Justia Law

Hiran Management, a small karaoke restaurant in Houston, Texas, employed eight front-of-house workers who became dissatisfied with their manager’s practices, including being assigned extra duties without increased pay and inconsistent compensation for “shift supervisor” roles. After a contentious meeting with management, the employees walked out, went on strike, and presented a list of demands. The employer subsequently terminated all eight striking employees.Following these terminations, the National Labor Relations Board (NLRB) filed an administrative complaint, alleging that Hiran Management violated section 8(a)(1) of the National Labor Relations Act (NLRA) by firing the employees for engaging in protected concerted activity. An administrative law judge (ALJ) ruled in favor of the NLRB, and the Board adopted the ALJ’s findings with minor adjustments. The Board ordered Hiran to cease its unfair labor practices, reinstate the employees, and compensate them for lost earnings and all other direct or foreseeable pecuniary harms resulting from the terminations.Hiran Management petitioned the United States Court of Appeals for the Fifth Circuit for review, while the NLRB sought enforcement of its order. The Fifth Circuit held that the NLRB lacks statutory authority under the NLRA to award full compensatory damages for all direct or foreseeable pecuniary harms, as such damages are legal rather than equitable remedies. The court granted Hiran’s petition in part, denied the NLRB’s enforcement petition in part, and remanded the case for further proceedings consistent with its opinion, limiting the NLRB’s remedial authority to equitable relief such as reinstatement and backpay. View "Hiran Management v. National Labor Relations Board" on Justia Law

A natural gas pipeline company replaced three aging compressor units along its pipeline, which transports gas from Canada to the Pacific Northwest. The replacements used newer, higher-capacity compressors, but the company initially installed controls to limit their output to match the old units. After completing the replacements, the company sought federal approval to expand pipeline capacity by removing those restrictions and making other upgrades, securing long-term contracts for the added capacity with new customers. The company excluded the cost of the earlier compressor replacements from the expansion’s cost estimate, assuming those costs would remain allocated to existing customers.The Federal Energy Regulatory Commission (FERC) approved the compressor replacements under its automatic authorization regulation, finding no further environmental review was needed. Later, FERC issued a certificate for the expansion project under the Natural Gas Act, after preparing an environmental impact statement (EIS) as required by the National Environmental Policy Act (NEPA). FERC declined to treat the compressor replacements as part of the expansion for environmental or rate-setting purposes and denied the company’s request for a “predetermination” that expansion costs could be rolled into existing rates in future proceedings. Multiple parties, including two states and environmental groups, sought rehearing and then judicial review, challenging FERC’s decisions on environmental review, rate allocation, and public need.The United States Court of Appeals for the Fifth Circuit reviewed the consolidated petitions. The court held that the pipeline company had standing and its claims were ripe. On the merits, the court found FERC’s decisions were not arbitrary or capricious. FERC reasonably excluded the compressor replacements from the expansion’s environmental and rate analysis, applied its established policies for rate-setting and public need, and provided sufficient environmental review under NEPA. The court denied all petitions for review. View "Gas Transmission Northwest v. Federal Energy Regulatory Commission" on Justia Law

A flight attendant employed by an airline and represented by a labor union was terminated after sending graphic anti-abortion images and messages to the union president and posting similar content on social media. The employee, a pro-life Christian and vocal opponent of the union, had previously resigned her union membership but remained subject to union fees. The union’s leadership had participated in the Women’s March, which the employee viewed as union-sponsored support for abortion, prompting her messages. The airline investigated and concluded that while some content was offensive, only certain images violated company policy. The employee was terminated for violating social media, bullying, and harassment policies.Following termination, the employee filed a grievance, which the union represented. The airline offered reinstatement contingent on a last-chance agreement, which the employee declined, leading to arbitration. The arbitrator found just cause for termination. The employee then sued both the airline and the union in the United States District Court for the Northern District of Texas, alleging violations of Title VII and the Railway Labor Act (RLA), among other claims. The district court dismissed some claims, allowed others to proceed, and after a jury trial, found in favor of the employee on several Title VII and RLA claims. The court awarded reinstatement, backpay, and issued a broad permanent injunction against the airline and union, later holding the airline in contempt for its compliance with the judgment.On appeal, the United States Court of Appeals for the Fifth Circuit reversed the judgment for the employee on her belief-based Title VII and RLA retaliation claims against the airline, remanding with instructions to enter judgment for the airline on those claims. The court affirmed the judgment against the airline on practice-based Title VII claims and affirmed all claims against the union. The court vacated the permanent injunction and contempt sanction, remanding for further proceedings, and granted the employee’s motion to remand appellate attorney’s fees to the district court. View "Carter v. Transport Workers Union of America Local 556" on Justia Law

An advanced practice registered nurse in Texas, who maintained an active nursing license and a Prescriptive Authority Number, did not have a current prescriptive-authority agreement with a physician, as required by Texas law to prescribe drugs. She was not accused of any misconduct but was attending an educational program to transition careers. Because she lacked a prescriptive-authority agreement, the Drug Enforcement Administration (DEA) initiated proceedings to revoke her federal Certificate of Registration, which allows her to handle controlled substances.An administrative law judge within the DEA recommended revocation, finding that she was “without state authority to handle controlled substances.” The Administrator of the DEA adopted this recommendation and revoked her registration. The nurse then petitioned for review directly to the United States Court of Appeals for the Fifth Circuit, as permitted by statute.The United States Court of Appeals for the Fifth Circuit reviewed the DEA’s action and concluded that the agency exceeded its statutory authority under 21 U.S.C. § 824(a)(3). The court held that the statute requires both the loss of a state license or registration and the lack of state authorization to handle controlled substances before the DEA may revoke a registration. Because the nurse still held all relevant state licenses and registrations, the court determined that the DEA lacked authority to revoke her registration solely due to the absence of a prescriptive-authority agreement. The court granted the petition for review, vacated the DEA’s revocation order, and remanded the case to the agency for further proceedings consistent with its opinion. View "DeWitt v. Drug Enforcement Administration" on Justia Law

Texas submitted a State Implementation Plan (SIP) to the Environmental Protection Agency (EPA) in 2012, asserting that its emissions did not significantly contribute to ozone pollution in downwind states and therefore no additional mitigation was necessary. The SIP included charts of declining ozone levels in certain metropolitan areas, a brief discussion of wind patterns, a map of 2010 ozone levels, and some raw measurement data, but did not analyze or quantify Texas’s impact on other states’ air quality. Texas’s submission focused on areas geographically close to Texas and did not address whether its emissions might interfere with maintenance of air quality standards in other states.After determining the SIP was technically complete, the EPA delayed substantive review pending the Supreme Court’s decision in EPA v. EME Homer City Generation, L.P., which clarified the agency’s authority under the Clean Air Act’s Good Neighbor Provision. During the delay, EPA provided Texas with updated modeling data showing that Texas emissions contributed to downwind ozone problems, but Texas did not supplement its SIP. In 2016, EPA formally disapproved the SIP, finding it failed to address statutory requirements, particularly by not evaluating impacts on maintenance areas and by relying on outdated control measures. Texas and industry groups petitioned the United States Court of Appeals for the Fifth Circuit for review, arguing EPA’s process was procedurally and substantively flawed.The United States Court of Appeals for the Fifth Circuit denied the petition. The court held that EPA’s review complied with statutory and procedural requirements, and that the agency acted within its authority in disapproving the SIP. The court found EPA’s reasoning was not arbitrary or capricious, and that the SIP’s failure to analyze Texas’s impact on all relevant downwind areas, including maintenance areas, justified disapproval. The court also rejected arguments that EPA was required to approve the SIP due to procedural delays or reliance on updated data. View "State of Texas v. EPA" on Justia Law