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

Articles Posted in Legal Ethics

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The Fifth Circuit denied a petition for attorneys' fees and expenses under the Equal Access to Justice Act. In this case, the court granted the government's motion to remand to allow the BIA to consider the issues raised in petitioners' opening brief. The court held that attorneys' fees were unwarranted because the government was the prevailing party on the bulk of petitioner's claims and was substantially justified in denying protection under the Convention Against Torture. View "W. M. V. C. v. Barr" on Justia Law

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Law Funder filed suit against defendant and his law firm for legal malpractice. The district court found a series of discovery violations and related malfeasance, striking defendant's answer. After defendant did not move to replead, the district court entered a default judgment against him and awarded Law Funder $3 million. The Fifth Circuit affirmed the district court's entry of default judgment against defendant, but held that the district court improperly calculated damages under Texas law. In this case, the district court erred in awarding Law Funder compensatory damages for attorney fees and costs that it would have incurred regardless of defendant's negligence. Accordingly, the court vacated the district court's final judgment and remanded for a new trial on damages. View "Law Funder, LLC. v. Munoz" on Justia Law

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This dispute between the bankruptcy court and Chapter 13 debtor's attorneys involved no-money-down business models where the debtor's attorney agrees to advance the costs of filing fees, credit counseling course fees, and credit report fees on behalf of the debtor. The bankruptcy court concluded that these fees were non-reimbursable under the district's no-look fee order and that counsel could never be reimbursed by statute. The Fifth Circuit held that debtor's counsel in this case was not entitled to additional reimbursement for advancing the costs of the filing fees, credit counseling fees, and credit report fees as administrative expenses necessary for preserving the estate under 11 U.S.C. 503(b)(1). However, 11 U.S.C. 503(b) and 330 provide bankruptcy courts with the discretion to compensate debtor's counsel for advancing the costs of filing fees, credit counseling fees, and credit report fees if they choose to do so. Therefore, the court held that the bankruptcy court did not err in interpreting its own standing order on no-look fee compensation, but that it did err in its conclusion that bankruptcy courts lack the discretion to ever award reimbursement of those fees. Accordingly, the court affirmed in part and vacated in part. View "McBride v. Riley" on Justia Law

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Under Texas law, an attorney is immune from civil suits brought by a non-client when the conduct at issue occurred within the scope of the attorney's representation of a client. The Fifth Circuit agreed with the district court and rejected three purported exceptions to this doctrine. This case related to the R. Allen Stanford Ponzi Scheme and an attorney that was practicing at Greenberg Traurig who was involved in the scheme. Plaintiffs filed suit against defendants under a respondeat superior theory, alleging that the attorney conspired with Stanford to further the fraud. Denying the motion for certification, the court held that it was not persuaded that the Supreme Court of Texas would apply the attorney immunity doctrine in the non-litigation context; criminal conduct does not automatically negate immunity, but in the usual case it will be outside the scope of representation; immunity can apply even to criminal acts so long as the attorney was acting within the scope of representation; and the Supreme Court of Texas would not consider itself sure that the Texas Legislature intended to abrogate attorney immunity in the context of Texas Securities Act claims. View "Troice v. Greenberg Traurig, LLP" on Justia Law

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The Fifth Circuit vacated the district court's denial of attorneys' fees in plaintiff's action under the Americans with Disabilities Act (ADA). Although the district court correctly determined that Farrar v. Hobby, 506 U.S. 103 (1992), provided the relevant legal framework in this case, the court held that the district court was in the best position to determine whether this lawsuit achieved a compensable public goal justifying a fee award. Plaintiff argued that this was an unusual case justifying a fee award because the litigation secured an ASL interpreter for Nelson Arce, achieved recognition of the rights of deaf probationers and prisoners to disability accommodations, deterred future ADA violations, and prompted necessary reforms in the defendants' policies toward deaf individuals. Accordingly, the court remanded for further proceedings. View "Shelton v. Louisiana State" on Justia Law

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After Brown Sims, a Houston law firm, successfully obtained a favorable result for its client, AJR, the client colluded with the opposing party, CNA and its attorneys, to consummate a settlement just between themselves. After settlement, the district court dismissed the case as moot. The Fifth Circuit held that the district court had subject matter jurisdiction over Brown Sims's claims against CNA. The court also held that Brown Sims met all of Federal Rule of Civil Procedure 24's criterion for intervention as of right and the district court erred in concluding otherwise. Furthermore, the district court erred in denying the Rule 60(b)(5) and (b)(6) motions. Accordingly, the court reversed in part, vacated in part, and remanded for further consideration. View "Adam Joseph Resources v. CNA Metals Limited" on Justia Law

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In this trademark infringement action, the district court granted Alliance for Good Government summary judgment on its trademark infringement claim against Coalition for Better Government, enjoined Coalition from the use of both its logo and its trade name, and then awarded Alliance attorney's fees incurred in bringing the lawsuit. The Fifth Circuit affirmed in part and held that the district court did not abuse its discretion in finding that Alliance was entitled to fees. The court remanded for the district court to reassess the amount of fees, because the court has since modified the district court's injunction to permit Coalition to use its trade name. View "Alliance for Good Government v. Coalition for Better Government" on Justia Law

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In 2005, during Hurricane Katrina, a barge moored by Lafarge hurtled through a floodwall and unleashed catastrophic flooding in the Lower 9th Ward. Richard T. Seymour represented New Orleans residents, but withdrew from the Barge Litigation in 2011. After the Barge Litigation settled several years later, he moved to intervene in order to pursue his fees and expenses. The Fifth Circuit affirmed the district court's decision as to intervention of right and dismissed Seymour's appeal for lack of jurisdiction as to permissive intervention. The court held that the district court did not abuse its discretion in concluding that Seymour's motion to intervene came too late. The court also held that the district court did not abuse its discretion in denying permissive intervention because it was also untimely. View "St. Bernard Parish v. Lafarge North America, Inc." on Justia Law

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Law firm Schiff Hardin challenged the denial of its Rule 12(b)(6) motion to dismiss the complaint and rejection of its attorney immunity defense in an action alleging negligent misrepresentation. The Fifth Circuit held that the district court erred in rejecting the firm's attorney immunity defense because the conduct sued on occurred during the representation of the firm's client. Accordingly, the court reversed the district court's denial of the firm's motion and rendered judgment dismissing the complaint pursuant to Rule 12(b)(6). View "Ironshore Europe DAC v. Schiff Hardin, LLP" on Justia Law

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In this school desegregation case, at issue was the reimbursement of expenses for a court-appointed oversight official. After the district court ordered an increase in the official’s compensation, the school board appealed and the official prevailed. The Fifth Circuit affirmed the district court's reimbursement of the official's appellate expenses, as well as the timing and quantity of the reimbursement, holding that the district court did not abuse its discretion. View "Moore v. Tangipahoa Parish School Board" on Justia Law

Posted in: Legal Ethics