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

Detective Genaro Hernandez, a Dallas Police Department detective, was involved in a shooting investigation outside The Green Elephant bar in August 2019. Hernandez, who also worked for the Stainback Organization, allegedly pursued false charges against the bar's owner, Shannon McKinnon, and a security guard, Guadalupe Frias, to benefit his private employer. Despite the Special Investigation Unit finding no criminal offense by the plaintiffs, Hernandez bypassed standard procedures and directly sought prosecution from the Dallas County District Attorney’s Office, leading to the plaintiffs' indictment for tampering with evidence. The charges were later dropped when Hernandez's conflict of interest was revealed during Frias's trial.The plaintiffs filed a lawsuit against Hernandez, alleging federal claims under 42 U.S.C. § 1983 for false arrest and malicious prosecution, and state-law claims for malicious prosecution, false imprisonment, and civil conspiracy. The United States District Court for the Northern District of Texas dismissed the federal malicious-prosecution claim but allowed the federal false-arrest claim and the state-law claims to proceed. Hernandez appealed, arguing he was entitled to governmental immunity under the Texas Tort Claims Act.The United States Court of Appeals for the Fifth Circuit reviewed the case and determined that Hernandez's actions, despite being motivated by personal interests, fell within the scope of his employment as a detective. The court held that Texas law provides broad immunity to state actors for actions within their employment scope, regardless of intent. Consequently, the court reversed the district court's decision denying dismissal of the state-law claims and remanded the case for further proceedings on the remaining federal claim. View "Frias v. Hernandez" on Justia Law

A real estate developer, HK Baugh Ranch, LLC, petitioned the Texas Public Utility Commission (PUC) to release its undeveloped land, River Bend Ranch, from the certificate of convenience and necessity (CCN) issued to Crystal Clear Special Utility District (Crystal Clear). Crystal Clear, a federally indebted utility district, sued the PUC’s Chair and Commissioners in federal court, alleging that Texas Water Code § 13.2541, which allows for decertification, was preempted by 7 U.S.C. § 1926(b). This federal statute protects certain federally indebted utilities from curtailment of their service areas while their loans are outstanding.The United States District Court for the Western District of Texas issued a preliminary injunction preventing the PUC from decertifying River Bend Ranch. The district court applied the “physical ability” test from Green Valley Special Utility District v. City of Schertz, determining that Crystal Clear likely made its service available to HK Baugh and was thus entitled to the protections of § 1926(b). The court concluded that § 1926(b) likely expressly preempts Texas Water Code § 13.2541, resolving the remaining preliminary injunction factors in favor of Crystal Clear.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the district court did not err in concluding that Crystal Clear would likely satisfy the “physical ability” test. However, the appellate court found that the district court erred in holding that § 1926(b) expressly preempts Texas Water Code § 13.2541. The appellate court remanded the case to the district court to determine whether § 1926(b) otherwise preempts Texas Water Code § 13.2541 and to address all preliminary injunction factors as necessary. The preliminary injunction remains in place pending further proceedings. View "Crystal Clear v. HK Baugh Ranch" on Justia Law

The City of Dallas amended an ordinance regulating the short-term lending industry, which TitleMax of Texas, Inc. claimed severely harmed its business. TitleMax sought declaratory and injunctive relief, arguing the amendment was preempted by state law and violated its due course of law guarantee under the Texas Constitution. TitleMax requested a preliminary injunction to halt enforcement of the amendment until a trial on the merits, but the district court denied this request.The United States District Court for the Northern District of Texas reviewed the case and denied TitleMax’s motion for a preliminary injunction. The magistrate judge found that while TitleMax demonstrated potential irreparable harm, it did not show a substantial likelihood of success on the merits of its claims. The district court accepted this recommendation, leading TitleMax to appeal the decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court’s decision. The appellate court concluded that TitleMax did not demonstrate a likelihood of success on its preemption and due course of law claims. The court found that the amended ordinance did not prohibit all Credit Services Organizations (CSOs) or Credit Access Businesses (CABs) from operating, but rather regulated their business models. Additionally, the court determined that TitleMax did not have a constitutionally protected interest in operating its business profitably under the due course of law guarantee. The court held that the ordinance was rationally related to a legitimate governmental interest in protecting low-income borrowers. Consequently, the appellate court affirmed the district court’s denial of the preliminary injunction. View "TitleMax of Texas v. City of Dallas" on Justia Law

Spirit AeroSystems, a manufacturer of airplane parts, was issued a Request to Examine (RTE) by the Attorney General of Texas, W. Kenneth Paxton. The RTE statute allows the Attorney General to inspect business records without providing an opportunity for precompliance judicial review. Spirit challenged the statute as facially unconstitutional, arguing it violated the Fourth Amendment by not allowing precompliance review.The United States District Court for the Western District of Texas agreed with Spirit, finding the RTE statute unconstitutional for failing to provide precompliance review and issued a permanent injunction preventing the Attorney General from enforcing the RTEs against Spirit. The court's decision was based on the precedent set by City of Los Angeles v. Patel, which requires an opportunity for precompliance review to avoid Fourth Amendment violations.The United States Court of Appeals for the Fifth Circuit reviewed the case. During the appeal, the Texas Supreme Court issued a decision in Paxton v. Annunciation House, Inc., which interpreted the RTE statute to include the required opportunity for precompliance review through Texas Rule of Civil Procedure 176.6. This rule allows recipients of administrative subpoenas to seek a protective order before compliance is required.Given the Texas Supreme Court's interpretation, the Fifth Circuit vacated the district court's judgment and remanded the case for further proceedings consistent with the new interpretation, which now provides the necessary precompliance review to satisfy Fourth Amendment requirements. View "Spirit Aerosystems v. Paxton" on Justia Law

Following Hurricane Ida in 2021, Terrebonne Parish requested assistance from Lafayette Utilities Systems (LUS) to help restore power in Houma, Louisiana. LUS, in turn, requested help from the City of Wilson, North Carolina. Agreements were signed to facilitate emergency assistance, and the City of Wilson dispatched employees to Louisiana. Due to a shortage of hotels in Houma, the employees stayed in Lafayette and commuted daily. Kevin Worrell, a City of Wilson employee, was involved in a vehicle collision while driving from Houma to Lafayette, resulting in injuries to Edward and Linda Breaux and Jessie and Vickie Blanchard.The plaintiffs filed separate negligence lawsuits in Louisiana state court, which were removed to the federal district court in the Western District of Louisiana. The cases were consolidated, and the defendants moved for summary judgment, asserting immunity under the Louisiana Homeland Security and Emergency Assistance and Disaster Act. The district court granted summary judgment, finding statutory immunity, and dismissed the plaintiffs' claims with prejudice. The plaintiffs appealed, challenging the district court's interpretation of the Act's immunity provision.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court noted the need to interpret the Louisiana emergency preparedness law and expressed doubt about its ability to make a reliable Erie guess. Consequently, the court certified two questions to the Louisiana Supreme Court: (1) whether an employee of a city from another state working under an emergency assistance agreement is a "representative" of Louisiana or its political subdivisions, and (2) whether an individual providing emergency assistance is "engaging in emergency preparedness and recovery activities" while commuting from the recovery site to lodging. The Fifth Circuit will resolve the case based on the Louisiana Supreme Court's guidance. View "Breaux v. Worrell" on Justia Law

Petitioners, including various agricultural and trade organizations, challenged the Environmental Protection Agency (EPA) over a rule that set an equation for calculating vehicle fuel economy, specifically the "Ra factor." They argued that the Ra factor was set arbitrarily low, which effectively increased federal fuel economy standards and decreased demand for gasoline, harming their businesses.The case was reviewed by the United States Court of Appeals for the Fifth Circuit. The petitioners contended that the EPA's rule violated the Administrative Procedure Act (APA) by ignoring significant comments and data that flagged flaws in the determination of the Ra factor. They pointed out that the EPA's test program used too few and outdated vehicles, included data from a malfunctioning vehicle, and excluded data from a properly functioning one. Additionally, they argued that the EPA failed to consider alternative data sources, such as manufacturer certification data, which showed a higher Ra factor.The Fifth Circuit found that the EPA's rule was arbitrary and capricious. The court noted that the EPA did not adequately respond to significant comments that raised substantial issues with the test program's sample size, the representativeness of the vehicles tested, and the inclusion and exclusion of certain test data. The court also found that the EPA failed to justify its rejection of alternative data sources. As a result, the court held that the EPA did not demonstrate that its decision was the product of reasoned decision-making.The court granted the petition for review and vacated the portion of the EPA's rule that set and implemented the Ra factor of 0.81. The court concluded that there was no serious possibility that the EPA could substantiate its decision on remand, and thus, vacatur was the appropriate remedy. View "Texas Corn Producers v. EPA" on Justia Law

A group of staffing companies in Texas challenged a memorandum issued by the former General Counsel of the National Labor Relations Board (NLRB), Jennifer Abruzzo. The memorandum outlined a plan to urge the NLRB to reverse its holding in a previous case, Babcock, which allowed employers to compel employees to attend meetings where they were urged to reject union representation. The staffing companies argued that the memorandum violated their First Amendment rights by restricting their speech about unionization and sought an injunction and declaratory judgment against its enforcement.The United States District Court for the Eastern District of Texas dismissed the case for lack of jurisdiction, stating that the plaintiffs were challenging unreviewable prosecutorial decisions by the NLRB General Counsel, that the NLRA's scheme precluded jurisdiction, and that the plaintiffs lacked standing. The staffing companies appealed, arguing that the district court erred in its dismissal and that they had standing because the memorandum applied to them and was a final agency action reviewable under the Administrative Procedure Act (APA).The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the staffing companies lacked standing. The court noted that the plaintiffs had not provided evidence of a credible threat of enforcement of the memorandum causing them direct injury. The court also found that the plaintiffs did not demonstrate an intent to engage in conduct regulated by the memorandum, as there was no known unionization attempt at their businesses. The court concluded that the plaintiffs failed to establish a credible threat of enforcement or a substantial risk of future injury.The Fifth Circuit affirmed the district court's dismissal of the case for lack of standing. View "Burnett Specialists v. Cowen" on Justia Law

Two air ambulance providers, Guardian Flight, LLC, and Med-Trans Corporation, sued Health Care Service Corporation (HCSC) for failing to timely pay dispute resolution awards under the No Surprises Act (NSA). The providers also claimed that HCSC improperly denied benefits under the Employee Retirement Income Security Act (ERISA) and was unjustly enriched under Texas law.The United States District Court for the Northern District of Texas dismissed the providers' complaint. The court found that the NSA does not provide a private right of action for enforcing dispute resolution awards. It also dismissed the ERISA claim for lack of standing, as the providers did not show that the beneficiaries suffered any injury since the NSA shields them from liability. Lastly, the court dismissed the quantum meruit claim, stating that the providers did not perform their services for HCSC's benefit. The court also denied the providers' request for leave to amend their complaint, deeming it futile.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The appellate court agreed that the NSA does not contain a private right of action and that the statute's text and structure support this conclusion. The court also upheld the dismissal of the ERISA claim, reiterating that the beneficiaries did not suffer any concrete injury. Finally, the court affirmed the dismissal of the quantum meruit claim, as the providers did not render services for HCSC's benefit. The appellate court also found no abuse of discretion in the district court's denial of leave to amend the complaint. View "Guardian Flight v. Health Care Service" on Justia Law

The Heidi Group, Inc. alleged that several Texas officials violated the Fourth Amendment and Texas law by conspiring with a private citizen to steal documents from a cloud-based file storage system. The officials moved for judgment on the pleadings and asserted various immunity defenses. The district court denied the motions in relevant part.The United States District Court for the Western District of Texas reviewed the case and denied the defendants' motions for judgment on the pleadings. The defendants then appealed to the United States Court of Appeals for the Fifth Circuit. The appeal involved four distinct groups of orders: the denial of qualified immunity for individual capacity defendants on the Fourth Amendment claim, the denial of judgment on the pleadings for the official capacity Fourth Amendment claim, the denial of state law immunity for the individual capacity defendants on the unlawful-access claim, and the denial of judgment on the pleadings for the state law religious-discrimination claim.The United States Court of Appeals for the Fifth Circuit dismissed the appeal regarding the religious-discrimination claim and declined to exercise pendent appellate jurisdiction over the official capacity Fourth Amendment claim. The court held that only Gaylon Dacus engaged in state action and was not entitled to qualified immunity for the Fourth Amendment claim. The court found that Dacus used a former employee to access Heidi's documents without proper authorization, violating clearly established Fourth Amendment rights. The court also affirmed the denial of state law immunity for the individual capacity defendants on the unlawful-access claim, as their actions were not in good faith. The court reversed the denial of judgment on the pleadings for Johnson and Kaufman on the individual capacity Fourth Amendment claim and remanded for further proceedings. View "Heidi Group v. Texas Health and Human Services Commission" on Justia Law

AllService Plumbing and Maintenance, Inc. is a small, family-owned plumbing company in Baton Rouge, Louisiana. In 2009, a union organizer named Charles LeBlanc began efforts to unionize AllService’s workforce. An employee, Joe Lungrin, opposed the unionization and informed the company’s Vice President, Luke Hall, about LeBlanc’s activities. The union filed a petition with the National Labor Relations Board (NLRB) to hold an election among AllService’s employees. After agreeing on an election date, AllService laid off three employees. The union lost the election, and subsequently filed a complaint with the NLRB alleging that AllService violated the National Labor Relations Act (NLRA) by surveilling, threatening, and interrogating employees, and by laying off employees due to their union activities.An NLRB administrative law judge (ALJ) found in 2011 that AllService violated the NLRA and ordered the reinstatement of the laid-off employees with backpay. AllService did not file timely exceptions, and the NLRB adopted the ALJ’s findings in 2012. A second ALJ calculated damages in 2013, and the NLRB ordered AllService to pay over $100,000. However, the Supreme Court’s decision in NLRB v. Noel Canning in 2014 invalidated the NLRB’s quorum, leading the Board to set aside its decision and dismiss its enforcement petition.In 2022, the NLRB issued a notice to show cause for re-adopting the 2013 ALJ decision, blaming administrative oversight for the delay. AllService objected, citing significant business losses due to floods in 2016 and 2021. The NLRB ignored these objections and adopted the 2013 decision. The NLRB then applied to the United States Court of Appeals for the Fifth Circuit for summary enforcement of its 2022 order.The Fifth Circuit denied the NLRB’s request for summary enforcement, finding that the Board failed to prove that enforcement would be equitable. The court held that the Board’s delay and administrative neglect were extraordinary circumstances excusing AllService’s failure to exhaust specific objections. The court also granted AllService’s petition for review, finding that the Board lacked substantial evidence to attribute Lungrin’s activities to AllService and to find that the pre-election layoffs were related to union activity. View "National Labor Relations Board v. Allservice Plumbing" on Justia Law