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

More than a decade ago, Peconic Bay Medical Center submitted an Adverse Action Report (AAR) to the National Practitioner Data Bank regarding Dr. John Doe. Dr. Doe made repeated efforts to have the AAR removed, including seeking review from the Secretary of the Department of Health and Human Services (HHS) and filing federal lawsuits in Washington, D.C. These lawsuits were unsuccessful, with courts such as the United States District Court for the District of Columbia and the United States Court of Appeals for the District of Columbia Circuit rejecting his claims. During the course of litigation, Dr. Doe obtained documents in discovery that he believed supported his renewed request for reconsideration to HHS regarding the AAR.HHS denied Dr. Doe’s request for reconsideration, stating that he was “not eligible for additional administrative review of the Report.” Dr. Doe then filed suit in the United States District Court for the Eastern District of Texas, alleging, among other things, that HHS’s denial violated the Administrative Procedure Act (APA). The district court dismissed Dr. Doe’s APA claim, concluding that the denial of reconsideration was unreviewable because Dr. Doe had not presented new evidence.On appeal, the United States Court of Appeals for the Fifth Circuit found that HHS violated the Chenery principle by changing its rationale for denying reconsideration during the litigation. The Fifth Circuit held that judicial review of agency action must be based solely on the grounds set forth by the agency at the time of its decision. Because HHS’s stated reason was incorrect—Dr. Doe was eligible for reconsideration under department guidance—the appellate court reversed the district court’s dismissal of Dr. Doe’s APA claim and remanded the case for further proceedings. View "Doe v. Department of Health and Human Services" on Justia Law

Texas LNG, a company seeking to construct a liquid natural gas terminal in Brownsville, Texas, received a permit from the Texas Commission on Environmental Quality (TCEQ) to build its facility. The company faced delays due to litigation and the COVID-19 pandemic, resulting in three successive extensions of its construction deadline granted by TCEQ’s executive director. The South Texas Environmental Justice Network (STEJN), an environmental advocacy group, moved to overturn the third extension, arguing that Texas LNG did not meet the requirements under Texas law to receive it and that the executive director lacked authority to grant the extension.Prior to the current appeal, both federal and state agencies reviewed Texas LNG’s permit. The Federal Energy Regulatory Commission (FERC) and TCEQ initially granted the necessary permits, but subsequent legal challenges led to a remand by the D.C. Circuit to FERC (which ultimately reaffirmed the permit) and a dismissal by the Third Court of Appeals in Austin for lack of subject-matter jurisdiction regarding the TCEQ permit. TCEQ’s Office of Public Interest recommended granting the motion to overturn on the basis of updated air quality standards, but TCEQ did not issue a decision, resulting in a denial of STEJN’s motion by operation of law.The United States Court of Appeals for the Fifth Circuit reviewed STEJN’s direct petition for review of TCEQ’s denial. Applying de novo review under the Texas Administrative Procedure Act, the Fifth Circuit held that STEJN had standing but found that TCEQ’s executive director had the authority under section 116.120 of the Texas Administrative Code to grant the third extension. The court determined that Texas LNG met the regulatory requirements for a third extension, and substantial evidence supported TCEQ’s decision. Therefore, the Fifth Circuit denied STEJN’s petition for review. View "S Texas Environmental Justice v. Commission on Environmental Quality" on Justia Law

A Mississippi retail pharmacy, Rx Solutions, Inc., sought to join the pharmacy benefit management (PBM) network operated by Caremark, LLC, which is associated with CVS Pharmacy, Inc. Caremark denied Rx Solutions’ application, citing inconsistencies in ownership information and affiliations with Quest Pharmacy, owned by Harold Ted Cain, who Caremark claimed was previously found guilty of violating the False Claims Act. Rx Solutions disputed these reasons, noting acceptance by other PBM networks and asserting that Harold Ted Cain lacked operational control over Rx Solutions and had not been convicted of any relevant criminal offense.Rx Solutions filed suit in the United States District Court for the Southern District of Mississippi, alleging two federal antitrust violations under the Sherman Act and three state law claims: violation of Mississippi’s “any willing provider” statute, violation of the state antitrust statute, and tortious interference with business relations. The district court dismissed the federal antitrust and state statutory claims, concluding that Rx Solutions failed to adequately define relevant product and geographic markets and did not allege antitrust injury. The court also determined there was no diversity jurisdiction to support the remaining state law claims and declined to exercise supplemental jurisdiction.The United States Court of Appeals for the Fifth Circuit affirmed the district court’s dismissal of the federal antitrust and Mississippi state antitrust claims, holding that Rx Solutions did not sufficiently plead a relevant market or antitrust injury. However, the Fifth Circuit reversed the district court’s finding regarding diversity jurisdiction, based on admissions by Caremark and CVS establishing complete diversity between the parties. The appellate court affirmed the dismissal of the state antitrust claim and remanded the claims under Mississippi’s “any willing provider” statute and for tortious interference with business relations for further proceedings. View "Rx Solutions v. Caremark" on Justia Law

Two Venezuelan sisters, both recipients of Temporary Protected Status (TPS) in the United States, submitted affirmative applications for asylum, alleging past persecution and fear of future persecution in Venezuela. After interviews with asylum officers, they were denied asylum by U.S. Citizenship and Immigration Services (USCIS), which concluded that they had not shown a reasonable possibility of persecution. The denial letters stated that, due to their TPS, there would be no referral to an immigration judge for removal proceedings, and that the determinations could not be appealed at that time.Following delays in adjudication, each sister filed suit against various federal officials in the United States District Court for the Southern District of Texas, seeking to overturn the asylum denials under the Administrative Procedure Act (APA) as arbitrary and capricious. The district court in one case dismissed the suit without prejudice for lack of jurisdiction under Rule 12(b)(1), finding no final agency action; the other district court dismissed with prejudice for failure to state a claim under Rule 12(b)(6), also citing lack of final agency action. The sisters appealed, and the cases were consolidated.The United States Court of Appeals for the Fifth Circuit held that the USCIS denial letters were not final agency actions under the APA because the administrative process was not complete. The sisters could still seek asylum defensively in future removal proceedings once their TPS ended. The court concluded that, since the agency’s decision did not fix legal rights or obligations or trigger legal consequences, the district courts lacked subject-matter jurisdiction. The Fifth Circuit affirmed both dismissals and modified the dismissal in the case that had been with prejudice to be without prejudice. View "Sayegh de Kewayfati v. Bondi" on Justia Law

After the Texas Legislature passed the Election Protection and Integrity Act of 2021 (“S.B.1”), a sweeping law that amended numerous aspects of the state’s election procedures, multiple groups of plaintiffs—including civil rights and voter advocacy organizations—challenged thirty-eight provisions of the law. They alleged violations of various constitutional amendments, the Voting Rights Act (VRA), the Americans with Disabilities Act (ADA), and the Rehabilitation Act, naming state officials including the Texas Secretary of State and Attorney General as defendants.In the United States District Court for the Western District of Texas, the defendants moved to dismiss on grounds of sovereign immunity and lack of standing. The district court addressed the motions on a provision-by-provision basis, concluding that the Secretary and Attorney General were sufficiently connected to the enforcement of most challenged provisions to overcome sovereign immunity under Ex parte Young, and that plaintiffs had standing to sue. It denied the motions to dismiss for the majority of the claims, although it dismissed others as moot, for lack of standing, or for failure to state a claim. The defendants appealed the denials.The United States Court of Appeals for the Fifth Circuit held it had appellate jurisdiction over the interlocutory sovereign immunity appeals. On the merits, the Fifth Circuit affirmed in part and reversed in part. It held that the VRA claims were not barred by sovereign immunity. For the constitutional and other statutory claims brought under 42 U.S.C. § 1983, the court determined that the Secretary of State is a proper defendant only for those provisions she directly enforces—such as those involving the design of forms and sanctioning of registrars—and not for those enforced by other officials. Similarly, it held the Attorney General could be sued only for one provision authorizing civil penalties. The court affirmed standing for claims against provisions enforced by these officials. View "Un del Pueblo Entero v. Nelson" on Justia Law

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