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

The State of Texas appeals the district court’s decision that Plaintiffs’ federal Taking Clause claims against the State may proceed in federal court. Because we hold that the Fifth Amendment Takings Clause as applied to the states through the Fourteenth Amendment does not provide a right of action for takings claims against a state.   The Fifth Circuit vacated the district court’s decision for want of jurisdiction and remanded with instructions to return this case to the state courts. The court explained that the Supreme Court of Texas recognizes takings claims under the federal and state constitutions, with differing remedies and constraints turning on the character and nature of the taking; nothing in this description of Texas law is intended to replace its role as the sole determinant of Texas state law. View "Devillier v. State of Texas" on Justia Law

The Horseracing Integrity and Safety Act (HISA) is a federal law that nationalizes governance of the thoroughbred horseracing industry. To formulate detailed rules on an array of topics, HISA empowers a private entity called the Horseracing Integrity and Safety Authority (the “Authority”), which operates under Federal Trade Commission oversight. Soon after its passage, HISA was challenged by various horsemen’s associations, which were later joined by Texas and the state’s racing commission. Plaintiffs argued HISA is facially unconstitutional because it delegates government power to a private entity without sufficient agency supervision. The district court acknowledged that the plaintiffs’ “concerns are legitimate,” that HISA has “unique features,” and that its structure “pushes the boundaries of public-private collaboration.” Nonetheless, the court rejected the private non-delegation challenge.   The Fifth Circuit declared that the HISA is unconstitutional because it violates the private non-delegation doctrine. Accordingly, the court reversed the district court’s decision and remanded. The court explained that while acknowledging the Authority’s “sweeping” power, the district court thought it was balanced by the FTC’s “equally” sweeping oversight. Not so. HISA restricts FTC review of the Authority’s proposed rules. If those rules are “consistent” with HISA’s broad principles, the FTC must approve them. And even if it finds an inconsistency, the FTC can only suggest changes. What’s more, the FTC concedes it cannot review the Authority’s policy choices. The Authority’s power outstrips any private delegation the Supreme Court or the Fifth Circuit has allowed. Thus the court declared HISA facially unconstitutional. View "National Horsemen's Benevolent v. Black" on Justia Law

Believing Texas intends to enforce its abortion laws to penalize their out-of-state actions, Plaintiffs sued Texas Attorney General (Petitioner). Petitioner moved to dismiss the suit for lack of subject matter jurisdiction. Plaintiffs then issued subpoenas to obtain Petitioner’s testimony. Petitioner moved to quash the subpoenas, which the district court initially granted. On reconsideration, however, the district court changed course, denied the motion, and ordered Petitioner to testify either at a deposition or evidentiary hearing. Petitioner petitioned for a writ of mandamus to shield him from the district court’s order.   The Fifth Circuit granted the writ, concluding that the district court clearly erred by not first ensuring its own jurisdiction and also by declining to quash the subpoenas. The court explained that the district court committed a “clear abuse of discretion” by finding that exceptional circumstances justified ordering Petitioner to testify. Petitioner has therefore shown a clear and indisputable right to relief. The court further found that the errors are ones that cannot be rectified as the case progresses. Petitioners compelled testimony cannot be undone or corrected by the district court or a reviewing court once it occurs. Accordingly, the court was satisfied that, under the circumstances, it should exercise its discretion to issue the writ. View "In Re: Ken Paxton" on Justia Law

Appellants, two police officers, arrested Plaintiff, a student, at a school basketball game. The district court denied summary judgment based on qualified immunity, finding a dispute of material fact regarding the events surrounding Plaintiff's arrest. The officers filed an interlocutory appeal challenging the district court’s decision.The Fifth Circuit dismissed for lack of jurisdiction. The issues raised by Plaintiff create factual disputes that meet the required threshold to overcome Appellant's qualified immunity defense at this stage. View "Byrd v. Cornelius" on Justia Law

Plaintiffs are two voter registration organizations who challenged Texas’s recently revised requirements for voter residency. The district court concluded Plaintiffs had organizational standing because the new laws caused them to divert resources from other projects and also chilled their ability to advise and register voters. On the merits, the district court ruled that the challenged laws, in large part, impermissibly burdened the right to vote. Texas appealed.   The Fifth Circuit agreed with Texas that Plaintiffs lack organizational standing. So, without reaching the merits, the court reversed the district court’s judgment and rendered judgment dismissing Plaintiffs’ claims. Plaintiffs argue that it is “a crime under Texas law to help someone to register to vote in violation of [S.B. 1111’s] confusing new requirements.” But Texas law does not criminalize giving good faith but mistaken advice to prospective voters. Rather, the statute on which Plaintiffs rely applies only “if the person knowingly or intentionally” “requests, commands, coerces, or attempts to induce another person to make a false statement on a [voter] registration application.” Plaintiffs do not assert that they plan to “knowingly or intentionally” encourage people to register who are ineligible under S.B. 1111. Plaintiffs’ argument turns on the “confusion and uncertainty” S.B. 1111 supposedly injects into their voter outreach efforts. Uncertainty is not the same as intent, however. Accordingly, Plaintiffs have not shown a serious intention to engage in protected activity arguably proscribed by the challenged law. In sum, the district court erred in concluding Plaintiffs had organizational standing based on a chilled-speech theory View "Texas State LULAC v. Paxton" on Justia Law

After an alleged collision with a mail vehicle, Plaintiff submitted a claim to the U.S. Postal Service under the Federal Tort Claims Act (“FTCA”), seeking about $15,000 for damage to his truck. The postal service denied his claim because Plaintiff’s insurance covered it. Under the FTCA, this triggered a six-month window in which Plaintiff could either seek reconsideration or sue. He did neither. Instead, over eight months later, Plaintiff filed a second claim with the postal service, now seeking $2 million for back injuries from the same incident. The district court dismissed his suit as time-barred and the Fifth Circuit affirmed.   The court explained that Plaintiff’s first SF-95 presented his entire claim based on the November 14, 2019, accident. This claim could have been amended to include personal injury damages or appealed—all consistent with the procedures outlined in the FTCA. When the USPS denied that claim on March 26, 2020, the six-month clock started running, and it stopped ticking on September 26, 2020. During that time, Plaintiff neither sought reconsideration nor filed suit. Accordingly, the district court correctly ruled that Plaintiff’s action is untimely and his claim is, therefore “forever barred.” View "Broussard v. USA" on Justia Law

The Federal Energy Regulatory Commission (FERC)  brought an enforcement action against BP, alleging the company capitalized on the hurricane-induced chaos in commodities markets by devising a scheme to manipulate the market for natural gas. BP sought judicial review of FERC’s order finding that BP engaged in market manipulation and imposing a $20 million civil penalty.   The Fifth Circuit explained that because FERC predicated its penalty assessment on its erroneous position that it had jurisdiction over all (and not just some) of BP’s transactions, the court must remand for a reassessment of the penalty in the light of the court’s jurisdictional holding. Thus, the court granted in part and denied in part BP’s petition for review and remanded to the agency for reassessment of the penalty.   The court explained that it has rejected FERC’s expansive assertion that it has jurisdiction over any manipulative trade affecting the price of an NGA transaction. The court, however, reaffirmed the Commission’s authority over transactions directly involving natural gas in interstate commerce under the NGA. The court further determined that there was substantial evidence to support FERC’s finding that BP manipulated the market for natural gas. The court found that FERC’s reasoning in imposing a penalty was not arbitrary and capricious, though the court concluded that FERC’s reliance on an erroneous understanding of its own jurisdiction necessitates remand for recalculation of the penalty. Finally, the court held that neither separation of functions nor statute of limitations issues justify overturning the Commission’s order. View "BP America v. FERC" on Justia Law

in 2008, Congress passed the Consumer Financial Protection Act, which created the Consumer Financial Protection Bureau (CFPB) and transferred to the Bureau administrative and enforcement authority over 18 federal statutes which prior to the Act were overseen by seven different agencies. In 2016, then-Director of the CFPB proposed a rule to regulate payday, vehicle title, and certain high-cost installment loans (the “Payday Lending Rule”). The Rule's “Payment Provisions” limit a lender’s ability to obtain loan repayments via preauthorized account access.Plaintiffs sued the Bureau seeking an order seeking to enjoin the enforcement of the Payday Lending Rule under the theory that it violates the separation of powers doctrine.The Fifth Circuit reversed the district court's decision granting summary judgment to the CFPB in total, finding that Congress’s cession of its power of the purse to the Bureau violates the Appropriations Clause and the Constitution’s underlying structural separation of powers. View "Cmty Fin Assoc America v. CFPB" on Justia Law

In 2012 the Secretary of the Department of Homeland Security (DHS) announced the Deferred Action for Childhood Arrivals (DACA) program. Eight states and the Governors of two states, led by Texas, have challenged DACA’s validity. In ruling on competing motions for summary judgment, the district court held that the DACA Memorandum violates procedural and substantive requirements of the Administrative Procedure Act (APA). The district court vacated the DACA Memorandum and remanded to DHS for further consideration but temporarily stayed that vacatur as it applies to current DACA recipients. The district court further ruled that DHS may continue to accept new and renewal DACA applications but enjoined DHS from approving any new DACA applications.   The Fifth Circuit affirmed the district court’s judgment in part but remanded to the district court rather than DHS in light of a final rule promulgated by DHS in August 2022. The court explained that it affirmed the district court’s judgment with regard to the procedural and substantive provisions of the DACA memorandum.   There is evidence that if DACA were no longer in effect, at least some recipients would leave, and their departure would reduce the State’s Medicaid, social services and education costs for those individuals and their families who depart with them. Especially with the benefit of special solicitude, Texas has established that rescinding DACA would redress its harm. Accordingly, Texas has demonstrated standing based on its direct injury. Further, the court held that because DACA did not undergo notice and comment, it violates the procedural requirements of the APA. View "State of Texas v. USA" on Justia Law

Section 1557 of the Patient Protection and Affordable Care Act prohibits health care programs that receive federal funds from discriminating against patients on the basis of sex. Section 1557 incorporates Title IX’s definition of prohibited sex discrimination. The Secretary of HHS has authority to issue regulations to implement Section 1557.In May 2016, HHS issued a rule interpreting Section 1557’s prohibition of “discrimination on the basis of sex.” Plaintiffs claimed the rule violated the Administrative Procedure Act (APA) by defining “sex discrimination” inconsistently with Title IX. Initially, the district court issued a nationwide preliminary injunction and ultimately granted summary judgment to Plaintiffs but denied permanent injunctive relief. Significant litigation followed.In this case, HHS argues that any challenge to the 2016 Rule is now moot because the district court already vacated the parts of the rule that violated the APA, and because the 2020 Rule rescinded the 2016 Rule. The Fifth Circuit agreed. View "Franciscan Alliance v. Becerra" on Justia Law