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

Companion, a South Carolina insurer, appealed the district court's dismissal of its complaint alleging legal malpractice against defendants, Louisiana residents and attorneys at a Louisiana law firm. The court concluded that the district court properly dismissed Companion's complaint against defendants for lack of personal jurisdiction in a Texas Forum where defendants maintained no offices in Texas, had no personnel stationed there, paid no Texas taxes, and had no registered agent for service of process; defendants transacted only limited and discrete business in Texas over an appreciable period; and the venue issue was unnecessary for a decision in this case because the court affirmed the dismissal on personal-jurisdiction grounds. View "Companion Property and Casualty Co. v. Palermo, et al." on Justia Law

Defendant, an attorney and the brother-in-law of Trent Lott, appealed from the denial of his 28 U.S.C. 2255 motion challenging one of his two convictions for bribing a judge. Defendant's conviction stemmed from his bribe of a circuit court judge in a lawsuit involving a fee-sharing dispute with co-counsel (the "Wilson Case"). Defendant offered to recommend the judge to Lott, who at the time was a U.S. Senator, for a district court judgeship in exchange for the judge's help in winning the Wilson Case. The court concluded that Skilling v. United States, which addressed the constitutionality of the honest-services statute, 18 U.S.C. 1346, had no effect on the district court's subject matter jurisdiction over defendant's guilty plea. Defendant had shown neither his actual innocence of post-Skilling honest-services fraud nor that there was cause and prejudice for failing to raise a constitutional-vagueness challenge to section 1346. Therefore, defendant procedurally defaulted on his claim and the district court correctly denied his section 2255 motion. Finally, the court rejected defendant's First Amendment overbreadth challenge to section 1346. Accordingly, the court affirmed the judgment. View "United States v. Scruggs" on Justia Law

Plaintiff sued Luminant, his employer, alleging several unlawful employment practices. The jury agreed with plaintiff that plaintiff's complaints motivated Luminant's decision to discipline him. The jury also found, however, that Luminant proved, by a preponderance of the evidence, that it would have made the "same decision" irrespective of his complaints. The district court entered judgment in Luminant's favor and taxed all costs against plaintiff. Plaintiff moved to retax costs and sought an award of attorney's fees. The court held that 42 U.S.C. 2000e-5(g)(2)(B)(i) authorized cost-and-fee-shifting only for violations of section 2000e-2(m). Retaliation did not violate section 2000e-2(m). Consequently, the district court correctly decided that section 2000e-5(g)(2)(B)(i) did not authorize cost-and-fee-shifting. Accordingly, the court affirmed the judgment of the district court. View "Carter v. Luminant Power Services Co." on Justia Law

Defendants, parents of a minor child who filed an unsuccessful administrative complaint against the school district, asserted that the district court's denial of attorneys' fees to the school district in turn rendered defendants prevailing parties. The court affirmed, however, the district court's denial of attorneys' fees to defendants because defeating a request for attorneys' fees was not the type of success on the merits required to establish prevailing party status. View "Alief Indep. Sch. Dist v. C. C." on Justia Law

Plaintiff appealed the denial of his claim for disability-insurance benefits and supplemental-security-income benefits. The magistrate judge recommended reversing the SSA's denial of benefits and remanded for plaintiff's claim to the SSA for further proceedings. The district court then entered an order adopting the magistrate judge's recommendation and granted plaintiff's counsel's request and award for attorneys' fees. At issue in this appeal was the type of judgment for which a district court could grant attorneys' fees under the Social Security Act, 42 U.S.C. 406(b). The court reversed the district court's denial of attorneys' fees, concluding that the district court's construction of section 406(b) unavoidably reduced the likelihood that an attorney who undertook a disability benefits representation would receive reasonable compensation for his work. Section 406(b) fees were authorized in cases where an attorney obtained a favorable decision on remand and the SSA has not opposed such fees for over 25 years. View "Jackson v. Astrue" on Justia Law

These consolidated appeals arose from the district court's appointment of a receiver of Jeffrey Baron's personal property and entities he owned or controlled. Barron and Munish Krishan formed a joint venture involving the ownership and sale of internet domain names. Disputes arose between the venturers, resulting in at least seven lawsuits. The district court subsequently sought to stop Baron's practice of regularly firing one lawyer and hiring a new one. Baron appealed the receivership order and almost every order entered by the district court thereafter. The court reversed and remanded, holding that the appointment of the receiver was an abuse of discretion. Numerous motions and a writ of mandamus to overturn the bankruptcy court's striking of notices of appeal to the district court were also before the court. Most were denied as moot and the court addressed the remaining motions that were relevant. View "Netsphere Inc., et al v. Baron" on Justia Law

Evan Stone, counsel for Plaintiff, appealed sanctions imposed on him. The underlying case involved Plaintiff's lawsuit alleging copyright infringement against 670 persons who allegedly unlawfully downloaded Plaintiff's film using an online file-sharing program. After the case had been dismissed, Defendants, through attorneys ad litem, moved for sanctions based on Stone's misconduct in violating Fed. R. Civ. P. 26 and 45 by issuing subpoenas to Defendants' ISPs. The district court granted the sanctions motion, finding that Stone had issued subpoenas in violation of court order, thereby grossly abusing his subpoena power. The Does, through the attorneys ad litem, then moved the court to impose further sanctions based on Stone's failure to comply with the first sanctions order. The court granted the motion for additional sanctions. The Fifth Circuit Court of Appeals affirmed the sanctions imposed by the district court, holding (1) all the issues Stone raised on appeal had been waived; and (2) no miscarriage of justice would result from the sanctions imposed. View "Mick Haig Prods. E.K. v. Does 1-670" on Justia Law

A jury returned a verdict in favor of plaintiff on its claim of fraud and breach of the duty of good faith and fair dealing against defendants. Defendants' misrepresentations induced plaintiff to settle the asbestos exposure claims of two former employees whom defendants represented in a state-court lawsuit. On appeal, defendants contended that the district court lacked subject matter jurisdiction over the instant case under the Rooker-Feldman doctrine, and alternatively that the case called for Burford abstention. Defendants also contended that the evidence established their statute-of-limitations and waiver defenses as a matter of law. The court concluded, however, that defendants misconceived the legal authorities relevant to their jurisdiction, abstention, and waiver arguments. Regarding the statute of limitations issue, the court concluded that a reasonable jury could have found for plaintiff. Accordingly, the court affirmed the district court's judgment. View "Illinois Central Railroad Co. v. Guy, et al." on Justia Law

A jury returned a verdict in favor of plaintiff on its claims of fraud and breach of the duty of good faith and fair dealing against defendants where defendants' misrepresentations induced plaintiff to settle the asbestos exposure claims of two of plaintiff's employees whom defendants represented in a state-court lawsuit. On appeal, defendants contended that the district court lacked subject matter jurisdiction over the instant case under the Rooker-Feldman doctrine, and alternatively that the case called for Burford v. Sun Oil Co. abstention. Defendants also contended that the trial evidence established their statute-of-limitations and waiver defenses as a matter of law. The court held that defendants misconceived the legal authorities relevant to their jurisdiction, abstention, and waiver arguments. Regarding the statute of limitations issue, the court concluded that a reasonable jury could have found for plaintiff. Therefore, the court affirmed the district court's judgment. View "Illinois Central Railroad Co. v. Guy, et al." on Justia Law

Defendant was convicted of corruptly endeavoring to obstruct the due administration of justice and one count of knowingly making a materially false statement to a governmental agency. Defendant's convictions stemmed from him falsely representing that he was a licensed attorney. The court held that the evidence adduced at trial supported the jury's verdict; the district court did not abuse its discretion in refusing to instruct the jury in accordance with defendant's definition of "corruptly"; and assuming the district court erred in applying one or more of the enhancements to defendant's offense level, thereby incorrectly calculating the advisory guidelines range, the Government, as proponent of the sentence, had discharged its burden to show that defendant's substantial rights were not affected by any error because the district court made detailed, alternative findings that it would have sentenced defendant to 65 months of imprisonment, notwithstanding whether any or some of the enhancements were applied to his offense level. View "United States v. Richardson, Jr." on Justia Law