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

The State of Texas placed a concertina wire fence along part of the border with Mexico in the Eagle Pass area to deter illegal crossings. The United States Border Patrol agents cut the wire multiple times, claiming it was necessary to fulfill their duty of patrolling the border to prevent illegal entry. Texas sued for an injunction, arguing that the Border Patrol was needlessly cutting the wire. The district court found that the Border Patrol was not hampered by the wire and had breached it numerous times without apparent purpose other than to allow migrants easier entrance. However, the court denied the injunction, citing the United States' sovereign immunity against Texas's claims.The United States District Court for the Western District of Texas initially denied Texas's request for a preliminary injunction, despite agreeing with Texas on the facts. The court believed that the United States retained sovereign immunity. A motions panel of the United States Court of Appeals for the Fifth Circuit disagreed and granted a temporary injunction pending appeal. The United States sought relief in the Supreme Court, which vacated the injunction without providing reasons. The case was remanded to the district court to investigate events in Shelby Park, where Texas's actions were alleged to have obstructed Border Patrol operations.The United States Court of Appeals for the Fifth Circuit ruled that Texas is entitled to a preliminary injunction. The court held that the United States waived sovereign immunity as to Texas's state law claims under § 702 of the Administrative Procedure Act. The court also rejected the United States' arguments that the injunction was barred by intergovernmental immunity and the Immigration and Nationality Act. The court found that Texas satisfied the injunction factors from Winter v. Natural Resources Defense Council, Inc. Accordingly, the court reversed the district court's judgment and granted Texas's request for a preliminary injunction, with modifications based on the district court's supplemental fact findings. View "Texas v. Department of Homeland Security" on Justia Law

The case involves six plaintiffs who are users of Tornado Cash, a cryptocurrency mixing service that uses immutable smart contracts to anonymize transactions. Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) under the International Emergency Economic Powers Act (IEEPA) for allegedly facilitating money laundering for malicious actors, including North Korea. The plaintiffs argued that OFAC exceeded its statutory authority by designating Tornado Cash as a Specially Designated National (SDN) and blocking its smart contracts.The United States District Court for the Western District of Texas granted summary judgment in favor of the Department of the Treasury, finding that Tornado Cash is an entity that can be sanctioned, that its smart contracts constitute property, and that the Tornado Cash DAO has an interest in these smart contracts. The plaintiffs appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and focused on whether the immutable smart contracts could be considered "property" under IEEPA. The court concluded that these smart contracts are not property because they are not capable of being owned, controlled, or altered by anyone, including their creators. The court emphasized that property, by definition, must be ownable, and the immutable smart contracts do not meet this criterion. Consequently, the court held that OFAC exceeded its statutory authority by sanctioning Tornado Cash's immutable smart contracts.The Fifth Circuit reversed the district court's decision and remanded the case with instructions to grant the plaintiffs' motion for partial summary judgment based on the Administrative Procedure Act. The court did not address whether Tornado Cash qualifies as an entity or whether it has an interest in the smart contracts, as the determination that the smart contracts are not property was dispositive. View "Van Loon v. Department of the Treasury" on Justia Law

Capstone Logistics, LLC, a company providing labor to other businesses, began supplying auditors to Associated Wholesale Grocers in 2019. The auditors, including Joyce Henson, were responsible for checking groceries and ensuring order accuracy. Henson, hired as lead auditor, raised concerns about safety, training, and pay on behalf of the auditors. She also contacted Donny Rouse, a major customer, about her pay. After a meeting with Capstone officials, Henson sent a LinkedIn message to Rouse about the auditors' pay issues. Following a brief interaction with Associated Wholesale Grocers' Director Chris Griffin, Henson was terminated by Capstone's Vice President Tim Casey.The National Labor Relations Board (NLRB) issued a complaint against Capstone, alleging violations of the National Labor Relations Act (NLRA) for discharging Henson due to her protected concerted activities. An administrative law judge (ALJ) dismissed the allegations, finding no sufficient causal connection between Henson's protected activities and her termination. The ALJ concluded that Henson's termination was more likely due to her efforts to secure better compensation for herself.The NLRB reversed the ALJ's decision, finding that Henson was discharged for engaging in protected concerted activity by sending the LinkedIn message to Rouse and because Capstone believed she had engaged in such activity during her conversation with Griffin. Capstone petitioned for review, and the NLRB cross-petitioned for enforcement of its order.The United States Court of Appeals for the Fifth Circuit found insufficient evidence to support the NLRB's finding that Capstone discharged Henson for sending the LinkedIn message. However, the court affirmed the NLRB's alternative determination that Capstone violated Section 8(a)(1) of the NLRA by discharging Henson because it believed she had engaged in protected concerted activity. The court denied Capstone's petition for review and granted the NLRB's cross-application to enforce its order. View "Capstone Logistics v. National Labor Relations Board" on Justia Law

A group of healthcare and air-ambulance providers challenged certain agency rules regarding the No Surprises Act, which aims to protect patients from unexpected medical bills. The key issues involved the calculation of the "qualifying payment amount" (QPA), deadlines for insurers to respond to provider bills, and disclosure requirements for insurers.The United States District Court for the Eastern District of Texas reviewed the case and held several provisions of the rules unlawful, vacating them. The court found that the rules conflicted with the Act's terms and were arbitrary and capricious. The defendant agencies appealed the decision regarding certain provisions, while the plaintiffs cross-appealed the court's upholding of the disclosure requirements.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court reversed the district court's vacatur of the QPA calculation provisions, holding that the rules did not conflict with the Act and were not arbitrary and capricious. The court affirmed the district court's vacatur of the deadline provision, agreeing that it conflicted with the Act's unambiguous terms. The court also affirmed the district court's decision upholding the disclosure requirements, finding them reasonable and adequately explained.In summary, the Fifth Circuit reversed the district court's decision on the QPA calculation provisions, affirmed the vacatur of the deadline provision, and upheld the disclosure requirements. The court concluded that the proper remedy for the unlawful deadline provision was vacatur, not remand, and rejected the idea of party-specific vacatur. View "Texas Medical Association v. Health and Human Services" on Justia Law

Hung Huu Quoc Nguyen challenged the United States Citizenship and Immigration Services’ (USCIS) revocation of its approval of his EB-3 visa petition. An EB-3 visa allows noncitizens performing unskilled labor with a full-time job offer to work in the U.S. and potentially adjust their status to permanent resident. Nguyen’s employer, Muy Pizza Tejas, LLC, filed an I-140 petition on his behalf, which was later approved. However, after Muy Pizza sold the restaurant employing Nguyen to Ayvaz Pizza, USCIS issued a Notice of Intent to Revoke the approval, citing concerns about Muy Pizza’s ability to pay Nguyen’s wages and the validity of the numerous I-140 petitions it had filed.The United States District Court for the Southern District of Texas dismissed Nguyen’s case for lack of subject matter jurisdiction, holding that the claims amounted to a challenge of an unreviewable discretionary decision by USCIS. Nguyen appealed, arguing that his I-140 petition met the portability provision requirements under 8 U.S.C. § 1154(j), which should have prevented USCIS from revoking the petition. He also claimed that USCIS made procedural errors, including failing to make a successor-in-interest determination regarding Ayvaz Pizza.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court’s dismissal. The appellate court held that the portability provision did not apply to Nguyen’s I-140 petition because it was invalid from the start due to Muy Pizza’s failure to prove its ability to pay Nguyen’s wages. Consequently, the court found that USCIS’s revocation of the petition was a discretionary decision not subject to judicial review. Additionally, the court determined that Nguyen did not establish any specific procedural errors by USCIS that would warrant judicial review. The judgment of the district court was affirmed. View "Nguyen v. Jaddou" on Justia Law

Crusader Gun Group, L.L.C. applied for a Federal Firearms License (FFL) in November 2020, with Alan Aronstein identified as the president and responsible person. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) denied the application, citing Aronstein's history of willfully violating federal firearms laws through his previous roles in other firearms businesses. These violations included over 6,000 recordkeeping errors, failure to report the theft or loss of firearms, and possession of unlawful machine guns. Crusader requested a hearing, but the ATF upheld its decision, leading Crusader to seek judicial review.The United States District Court for the Southern District of Texas reviewed the case and granted summary judgment in favor of the ATF. The court found that the ATF was authorized to deny the application based on Aronstein's willful violations of federal firearms laws. Crusader's cross-motion for summary judgment was denied, prompting an appeal to the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit affirmed the district court's decision. The court held that the ATF was authorized to deny Crusader's FFL application under 18 U.S.C. § 923(d)(1)(C) because Aronstein, as the responsible person, had willfully violated federal firearms laws. The court also rejected Crusader's due process claims, noting that adequate procedural safeguards were in place, including notice, a hearing, and the opportunity for judicial review. Additionally, the court found no abuse of discretion in the district court's decision to stay discovery, as the administrative record was sufficient for summary judgment. The court concluded that the ATF's denial of the FFL application was lawful and supported by substantial evidence. View "Crusader Gun Group v. James" on Justia Law

Steve Winder became suicidal after discovering Facebook messages between his wife and her ex-husband. His wife, Latrisha, who was out of state, called her mother, Lou Anne, and the Young County Sheriff’s Department for a welfare check after Steve sent pictures of himself holding a gun to his head. Deputy Joshua Gallardo arrived at the scene, and after hearing Steve shout from within, opened the front door. Lou Anne indicated that Steve was armed. Deputy Gallardo then fatally shot Steve after ordering him to put the gun down.The United States District Court for the Northern District of Texas dismissed the case at the 12(b)(6) stage. The court found that Steve’s suicidality and possession of a gun created exigent circumstances excusing the need for a warrant. It also ruled that an objectively reasonable officer in Deputy Gallardo’s position would not need to wait for Steve to point the gun at him before using deadly force, thus defeating the excessive force claim. Additionally, the court found no underlying constitutional violation to support claims for supervisory or Monell liability and ruled that Title II of the ADA does not support claims where police officers face exigent circumstances.The United States Court of Appeals for the Fifth Circuit affirmed the District Court’s dismissal. The appellate court held that the exigent circumstances justified the warrantless entry and that Deputy Gallardo’s use of deadly force was reasonable under the circumstances. The court also found no basis for supervisory or Monell liability due to the absence of an underlying constitutional violation. Lastly, the court ruled that the ADA claims were foreclosed by the exigent circumstances and that there was no evidence that Steve was discriminated against by reason of his disability. View "Winder v. Gallardo" on Justia Law

Kenneth Bryan Ritchey, the defendant, operated Gulf Coast Pharmaceuticals Plus, LLC, a wholesale distributor of pharmaceutical products. During the COVID-19 pandemic, Ritchey directed his employees to acquire large quantities of personal protective equipment (PPE) and resell them at inflated prices to various healthcare providers, including the Department of Veterans Affairs (VA). The VA was charged significantly higher prices than the market value, resulting in Ritchey and his company receiving over $2 million, including more than $270,000 from the VA.Ritchey was charged with six counts, including conspiracy to defraud the United States. He pled guilty to violating 18 U.S.C. § 371, and the remaining counts were dismissed. The United States District Court for the Southern District of Mississippi calculated Ritchey’s offense level based on the estimated pecuniary loss caused by his actions, which included a significant enhancement for the amount of loss. The court determined the fair market value (FMV) of the PPE based on pre-pandemic prices and 3M’s pricing, leading to a higher offense level and a 60-month prison sentence.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in calculating the FMV by relying on pre-pandemic prices and 3M’s pricing, which did not reflect the actual market conditions during the pandemic. The appellate court held that the district court’s method of determining the FMV was not based on a realistic economic approach. Consequently, the Fifth Circuit vacated Ritchey’s sentence and remanded the case for resentencing, emphasizing the need for a more accurate calculation of the FMV that reflects the market conditions at the time of the transactions. View "United States v. Ritchey" on Justia Law

A senior trooper with the Louisiana State Police (LSP), August McKay, committed suicide at his home after learning he was being reassigned and that a search warrant was to be executed on his residence. His widow, Brandy McKay, sued several LSP officers under 42 U.S.C. § 1983 and Louisiana state law, alleging their actions contributed to his death. The district court denied qualified immunity to two officers, Sergeant Rohn Bordelon and Trooper David LaCroix, leading to this appeal.The United States District Court for the Eastern District of Louisiana initially dismissed Brandy’s Eighth Amendment claim but allowed her to amend her complaint. She then limited her claims to the Fourteenth Amendment and state laws. The district court found that Brandy had sufficiently stated § 1983 claims against Sgt. Bordelon and Trooper LaCroix, concluding they had subjective knowledge of August’s suicide risk and responded with deliberate indifference. The court dismissed the claims against other defendants and allowed the state law claims against Sgt. Bordelon and Trooper LaCroix to proceed.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the officers were entitled to qualified immunity because there was no constitutional duty to protect August from self-harm, as he was not in state custody or otherwise restrained. The court emphasized that the officers did not attempt to arrest or confine August, and Brandy’s complaint focused on their failure to restrain him. Without a constitutional duty, there could be no violation, and thus, the officers were entitled to qualified immunity. The court reversed the district court’s decision regarding qualified immunity and dismissed the appeal concerning the state law claims without prejudice, remanding the case for further proceedings. View "McKay v. LaCroix" on Justia Law

Robert Mayfield, a small-business owner operating thirteen fast-food restaurants in Austin, Texas, challenged the Department of Labor's (DOL) 2019 Minimum Salary Rule. This rule raised the minimum salary required to qualify for the White Collar Exemption under the Fair Labor Standards Act (FLSA) from $455 per week to $684 per week. Mayfield argued that the DOL exceeded its statutory authority by imposing any salary requirement and that such a requirement violated the nondelegation doctrine.The United States District Court for the Western District of Texas granted summary judgment in favor of the DOL, finding that the 2019 Minimum Salary Rule was within the DOL's authority to define and delimit the terms of the White Collar Exemption. The court also held that this delegation of authority did not violate the nondelegation doctrine.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The Fifth Circuit held that the DOL's authority to define and delimit the terms of the White Collar Exemption included the power to set a minimum salary level. The court found that this power was explicitly delegated by Congress and was not an unconstitutional delegation of legislative power. The court also determined that the major questions doctrine did not apply, as the economic and political significance of the rule did not meet the threshold for invoking the doctrine. Additionally, the court concluded that the FLSA's purpose and the text of the exemption itself provided sufficient guidance to satisfy the nondelegation doctrine's requirements. View "Mayfield v. Department of Labor" on Justia Law