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

Plaintiff, a former FBI special agent, asked a federal district court to order the FBI to issue him a top-secret clearance and reinstate his employment. He also sought damages against FBI officials for revoking his clearance and suspending him, for preventing him from taking other employment while suspended, and for delaying the release of letters that Plaintiff says contain his protected speech. The district court dismissed those claims. It concluded that Plaintiff has no cause of action against the officers in their individual capacities. And it reasoned that its subject matter jurisdiction does not include the power to order the FBI to reinstate his security clearance.   The Fifth Circuit affirmed, holding that Plaintiff’s claims must be dismissed. His claims seeking to reverse his suspension and termination fall outside the district court’s subject-matter jurisdiction. And he has no cause of action to bring the remaining individual capacity claims. The court explained that the Supreme Court has twice rejected federal employees’ attempts to sidestep the Civil Service Reform Act (“CSRA’s”) remedial scheme. The court found that just as the CSRA precludes extra-statutory review of “adverse actions” defined by Section 7712, it precludes extra-statutory review of ancillary constitutional claims brought as a “vehicle by which [plaintiffs] seek to reverse” those adverse actions. View "Zummer v. Sallet" on Justia Law

Plaintiffs filed a class action complaint against their former employer, US Well Services, Inc. (“US Well”) for allegedly violating the WARN Act by terminating them without advance notice. The WARN Act requires covered employers to give affected employees sixty days’ notice before a plant closing or mass layoff. 29 U.S.C. Section 2102(a). The Act provides three exceptions to the notice requirement—including the natural-disaster exception, under which no notice is required.   The parties cross-moved for summary judgment. US Well argued that COVID-19 was a natural disaster under the WARN Act, and consequently, that it was exempt from the WARN Act’s notice requirement pursuant to the natural-disaster exception. Plaintiffs countered that COVID-19 was not a natural disaster and was not a direct cause of their layoffs.   Plaintiffs filed an interlocutory appeal seeking reversal of the district court’s order denying their motions for summary judgment and reconsideration. In its order denying Plaintiffs’ motions, the district court certified two questions for interlocutory appeal: (1) Does COVID-19 qualify as a natural disaster under the Worker Adjustment and Retraining Notification Act’s (“WARN Act” or “the Act”) natural-disaster exception, 29 U.S.C. Section 2102(b)(2)(B)?; (2) Does the WARN Act’s natural-disaster exception, 29 U.S.C. Section 2102(b)(2)(B), incorporate but-for or proximate causation?   The Fifth Circuit held that the COVID-19 pandemic is not a natural disaster under the WARN Act and that the natural-disaster exception incorporates proximate causation. The court explained that based on the DOL regulation’s “direct result” requirement and binding precedent equating direct cause with proximate cause, the court held that the WARN Act’s natural-disaster exception incorporates proximate causation. View "Easom v. US Well Services" on Justia Law

Rusco Operating, L.L.C. and Planning Thru Completion, L.L.C. are two companies that offer an online application (“app”) that connects oil field workers looking for work with oil-and-gas operators looking for workers. The companies seek to intervene here because some app-using workers have opted-in as plaintiffs alleging claims for unpaid overtime, under the Fair Labor Standards Act, against an operator that used the app to hire them. The app companies’ asserted interests in the litigation related to arbitration agreements between them and the workers, their belief that a win by the workers would destroy their business model, and a demand for indemnity allegedly made by Defendant operator for liability it might incur as to Plaintiffs’ claims. The district court found these interests insufficient to justify intervention and denied leave   The Fifth Circuit reversed, concluding that the arbitration agreements at issue give rise to sufficient interest in this action to support the app companies’ intervention. The court explained that Appellants  have shown adequate interest in the subject of this lawsuit by virtue of their contracts with the parties, and “disposing of the action may as a practical matter impair or impede the [Intervenors’] ability to protect [their] interest.” Fed. R. Civ. Pro. 24(a)(2). By contrast, no other party in this action will adequately represent the Intervenors’ interest. They should therefore be allowed to intervene of right. View "Field v. Rusco Operating" on Justia Law

Appellant is a pipeline-inspection company that hires inspectors and sends them to work for its clients. When Plaintiff was hired, Appellant had him sign an Employment Agreement that contained an arbitration clause. That arbitration provision explained that Plaintiff and Appellant agree to arbitrate all claims that have arisen or will arise out of Plaintiff’s employment. Appellant staffed Plaintiff on a project with Defendant, a diversified energy company that stores and transports natural gas and crude oil.   Alleging that the Fair Labor Standards Act entitled him to overtime pay, Plaintiff filed a collective action against Defendant; he brought no claims against Appellant. Appellant moved to intervene. The magistrate judge granted that motion, explaining that Appellant met the criteria for both permissive intervention and intervention as of right. Appellant claimed that it was an “aggrieved party” under Section 4 of the Federal Arbitration Act (“FAA”) and thus could compel arbitration. The magistrate judge rejected all the motions. The district court affirmed.   The Fifth Circuit dismissed for lack of jurisdiction Appellant’s appeal. The court held that Appellant is not an aggrieved party under Section 4 of the FAA and cannot compel arbitration. The court explained it is only where the arbitration may not proceed under the provisions of the contract without a court order that the other party is really aggrieved. Here, Plaintiff only promised to arbitrate claims brought against Appellant. Claiming that Plaintiff did not arbitrate its claims with Defendant is therefore not an allegation that he violated his agreement with Appellant. View "Hinkle v. Phillips 66 Company" on Justia Law

Plaintiff sued her employer under the Age Discrimination in Employment Act (“ADEA”), claiming that Defendant engaged in unlawful age discrimination and retaliation. Plaintiff filed a motion with the district court requesting additional time so that Defendant could respond to her requests for production. The court denied the motion and Plaintiff later filed a supplement to her Rule 56(d) motion, again asking the court to defer consideration of Defendant’s summary-judgment motion and allow Plaintiff to conduct discovery, or alternatively, deny Defendant’s motion. The district court granted Defendant’s motion and entered final judgment in their favor.   The Fifth Circuit reversed the district court’s order and held that a district court cannot deny discovery rights protected by the Federal Rules of Civil Procedure. The court explained that a Rule 56(d) movant first must demonstrate that additional discovery will create a genuine issue of material fact. Here, Plaintiff identified such evidence for (1) her age-discrimination claim, and (2) her retaliation claim. The court reasoned it was an abuse of discretion for the district court to deny Plaintiff the opportunity to conduct discovery on the relevant issues in question and then fault her for having “no evidence of a causal connection” between her protected activity and the adverse employment actions. Further, the fact that Plaintiffs requests for discovery were repeatedly denied does not reveal a lack of diligence on her part. View "Bailey v. KS Mgmt Services" on Justia Law

Plaintiff alleged that her former employer, Circassia Pharmaceuticals (“Circassia”), fired her for discriminatory and retaliatory reasons. The district court granted summary judgment for Circassia, holding that Owens had failed to create a genuine dispute of material fact as to pretext.The Fifth Circuit affirmed the district court’s grant of summary judgment for Defendant in Plaintiff’s employment discrimination lawsuit. The court held even when an employee presents evidence that would allow a jury to conclude that an employer’s proffered justification for an adverse action is false, that does not necessarily permit a rational inference that the real reason was discrimination Plaintiff provided enough evidence to permit a finding that Circassia’s proffered justification for her termination is false. But she has presented a mere scintilla of evidence that the true reason for her termination was discriminatory animus, and “the burden of proof [is hers] throughout.” The court held that summary judgment for Circassia is therefore appropriate because Plaintiff's evidence is of insufficient “nature, extent, and quality” to permit a reasonable factfinder to resolve “[t]he ultimate determination” of discrimination in her favor. Finally, the court reasoned that Plaintiff failed to raise additional arguments regarding pretext to support her retaliation claim, thus falling short of creating a genuine dispute of material fact. View "Owens v. Circassia Pharmaceuticals" on Justia Law

Defendant, a foreign oil company, contracted with Ecuador to develop an oil-rich region of the rainforest. Defendant paid its Ecuadorian employees a sizable portion of its annual profits. The government canceled the exploration contract and expropriated Occidental’s property, leading to massive losses. Profits and profit-sharing abruptly ceased. Occidental sought arbitration and, a decade later, received a nearly billion-dollar settlement from Ecuador. Plaintiffs, a group of Occidental’s former Ecuadorian employees, then sued Occidental, claiming the arbitration settlement represented profits they were entitled to share. The district court correctly dismissed the employees’ claims. On appeal, the Fifth Circuit affirmed the district court’s dismissal of Plaintiffs' claims holding that Defendant owes its former employees no shared profits for the relevant year. The court reasoned that under the plain terms of Ecuadorian law, a company’s profit-sharing obligation depends on the profits lawfully declared in its annual tax returns. Plaintiffs maintained that tax returns are “not the exclusive mechanism for determining profit-sharing liability.” However, the court held Ecuador's law is clear that the calculation [of profits shall be conducted on the basis of the declarations or determinations prepared for the payment of Income Tax, and Occidental’s tax returns for the interrupted year of 2006 showed not profits but losses. View "Cisneros Guerrero, et al v. Occidental Petro, et a" on Justia Law

A&D Interests, Incorporated (doing business as the “Heartbreakers Gentlemen’s Club”), petitioned the Fifth Circuit for a writ of mandamus. Petitioners argue that the district court should not have certified a Fair Labor Standards Act collective action comprised of “exotic” dancers who had worked at Heartbreakers in the last three years.   The Fifth Circuit granted Petitioner’s motion for a writ of mandamus in their Fair Labor Standards Act collective action. The court held that none of the three causes of the arbitration agreement prohibit potential plaintiffs from participating in collective action.   The court analyzed whether mandamus is warranted and found that Petitioners met the first requirement because the relevant issue will become moot before Petitioners can file an appeal. The court held that the second requirement is met because ensuring judicial neutrality and preventing district courts from needlessly stirring up litigation is good cause for a writ to issue. Thus, the court held that in light of In re JPMorgan Chase & Co., 916 F.3d 494 (5th Cir. 2019), the district court clearly and indisputably erred. View "In re: A&D Interests" on Justia Law

Petitioner, an office services and facilities management company, refused to bargain with a labor union based on its position that the union was not a "properly certified representative of its employees." In turn, the union filed a claim with the NLRB, claiming that Petitioner violated the NLRA by refusing to bargain in good faith. The NLRB found in the union's favor.The Fifth Circuit denied Petitioner's petition for review, rejecting Petitioner's argument that the prosecution was ultra vires. Petitioner claimed that President Biden's removal of the NLRB General Counsel was unlawful and that his replacement lacked authority to bring the complaint against Petitioner. The Fifth Circuit disagreed, finding that no provision of the NLRA protects the General Counsel of the NLRB from removal.The Fifth Circuit then rejected the merits of Petitioner's claim, finding that there was substantial evidence in the record supporting the NLRB's decision. Thus, the court granted NLRB's cross-petition for enforcement. View "Exela Enterprise Solutions v. NLRB" on Justia Law

Plaintiff filed a claim under Title VII of the Civil Rights Act of 1964 (“Title VII”) against the Administrators of the Tulane Education Fund (“Administrators”), alleging gender discrimination, retaliation, and hostile work environment. The district court granted summary judgment in favor of Defendant and Plaintiff appealed arguing that the district court’s ruling was erroneous.   The Fifth Circuit affirmed the district court’s grant of summary judgment in favor of Administrators. Plaintiff argued that the district court improperly required her to demonstrate that her proffered comparators were strictly identical. The court found that Plaintiff failed to establish a prima facie case because she did not present evidence that any male physician shared characteristics that would render them similarly situated. Further, even if Plaintiff established a prima facie case, her claim would not succeed because she did not rebut Defendant’s non-discriminatory reasons for declining to renew her contract.   The court further affirmed summary judgment in favor of Defendant on Plaintiff’s retaliation claim. The court concluded that a reasonable jury could not establish that her protected conduct was the “but for” reason for the alleged adverse employment action.   Finally, the court affirmed summary judgment in favor of Defendant on Plaintiff’s hostile work environment claim. The court found that although Plaintiff endured severe treatment by her supervisor, she did not establish that the treatment was based on her gender. View "Saketkoo v. Admin Tulane Educ" on Justia Law