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

Several owners of shoreline properties along Lake Austin challenged a 2019 ordinance enacted by the City of Austin. The ordinance declared that their properties had always been within Austin’s full-purpose jurisdiction, repealed a 1986 ordinance that had previously classified the properties as limited-purpose (which restricted taxation until city services were provided), and subjected the properties to full taxation. The plaintiffs alleged that Austin taxed their properties as if they were full-purpose residents but provided fewer municipal services than other full-purpose residents, raising federal and state law claims.Initially, the United States District Court for the Western District of Texas dismissed all claims under the Tax Injunction Act. On appeal, the United States Court of Appeals for the Fifth Circuit reversed the dismissal of all but two claims and remanded the case. Upon remand, the City reasserted several grounds for dismissal, including the political-question doctrine, Pullman abstention, Burford abstention, and failure to state a claim. The magistrate judge recommended Pullman abstention, which the district court adopted, dismissing the claims without prejudice and entering final judgment. The plaintiffs appealed again.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s decision and held that the case was not moot, as recent state legislation neither refunded taxes nor automatically disannexed the properties. The Fifth Circuit concluded that Pullman abstention was inappropriate because the plaintiffs’ federal equal protection claim did not hinge on any uncertain or disputed question of Texas law. Accordingly, the Fifth Circuit reversed the district court’s judgment and remanded the case for consideration of the City’s remaining grounds for dismissal, expressly declining to reach those grounds itself. View "Harward v. City of Austin" on Justia Law

Michael Ramirez purchased a house in Texas City, Texas, intending to remodel and resell it. After a fire caused substantial but repairable damage, the City declared the property substandard and, following an inspection, determined it posed a clear and imminent danger. The City sent notice to Ramirez, halted the permit process pending an engineer’s report (which Ramirez never obtained), and the house remained unrepaired for over a year, with Ramirez storing valuable personal property inside. In May 2023, the City demolished the house without further notice. Ramirez then sued, claiming violations of state and federal constitutional rights, including procedural due process and takings, and sought damages for the house, expected profits, personal property, and attorney’s fees.Upon removal to the United States District Court for the Southern District of Texas, Ramirez repeatedly requested a jury trial in various filings. The parties signed a joint case management plan acknowledging a jury demand. The district court initially scheduled a jury trial but, shortly before trial, ordered a bench trial instead, finding the jury demand procedurally deficient. After the bench trial, the court held the City had violated Ramirez’s procedural due process rights but justified the demolition under nuisance abatement, awarding only nominal damages and denying attorney’s fees as Ramirez was not considered the prevailing party.The United States Court of Appeals for the Fifth Circuit reviewed the case, focusing on the denial of a jury trial and damages determinations. The court held that the district court abused its discretion by denying Ramirez’s Rule 39(b) motion for a jury trial, as there were no strong or compelling reasons to do so and Ramirez’s repeated demands were sufficient. The court vacated the district court’s judgment and remanded for further proceedings, including a jury trial and reconsideration of damages and fees. View "Ramirez v. City of Texas City" on Justia Law

The plaintiff financed his home with a VA loan in 2003, qualifying due to his military service. After failing to make payments for at least ten years, the loan was assigned to HSBC Bank USA and serviced by Specialized Loan Servicing, LLC (SLS). HSBC eventually foreclosed on the property in 2022 and sold it to Northsky, LLC. The VA Servicing Guidelines, which were incorporated into the mortgage contract, required HSBC to notify the plaintiff of the default and explore options to cure it. SLS claimed to have mailed multiple payoff statements and a notice of default to the plaintiff, but he asserted he never received these communications.The plaintiff brought suit in Texas state court against HSBC, SLS, and Northsky, alleging violations of federal and Texas law and seeking to set aside the foreclosure sale. HSBC and SLS removed the case to the United States District Court for the Northern District of Texas. The district court granted partial summary judgment for HSBC and SLS, permitting the plaintiff to proceed on claims for violations of the VA Servicing Guidelines, quiet title, and trespass to try title. At a bench trial, HSBC and SLS presented circumstantial evidence of mailing, relying on business records and testimony from a corporate representative. The district court found this evidence sufficient and, applying the mailbox rule, presumed the plaintiff received the notices, concluding the defendants fulfilled their obligations under the VA Servicing Guidelines.The United States Court of Appeals for the Fifth Circuit reviewed the appeal, applying a deferential standard to the district court’s factual findings. The Fifth Circuit held that the district court correctly applied the mailbox rule based on the evidence presented and that the plaintiff failed to rebut the presumption of receipt. The Fifth Circuit affirmed the district court’s judgment. View "Rummans v. HSBC Bank" on Justia Law

A national flooring retailer contracted with a Louisiana-based construction management company for the construction of a retail store in Metairie, Louisiana. The relationship soured after the retailer terminated the agreement, allegedly due to delays. Shortly after termination, the construction company disputed that it had breached the contract and demanded payment for work performed. The retailer did not respond to the payment demand.The construction company filed suit in the United States District Court for the Middle District of Louisiana under the Louisiana Private Works Act, seeking recovery for the work performed. The retailer moved to compel arbitration based on the agreement’s dispute resolution provision and also sought to transfer the case. The district court granted the transfer to the United States District Court for the Eastern District of Louisiana and denied the motion to compel arbitration without prejudice. When the motion to compel arbitration was renewed in the new court, the district court denied it again, concluding the retailer had not followed the prerequisite steps outlined in the contract’s dispute resolution process.On appeal, the United States Court of Appeals for the Fifth Circuit conducted de novo review. The appellate court determined that the arbitration clause in the contract, which gave the retailer sole discretion to elect arbitration, was a contract of adhesion under Louisiana law. Applying state contract principles and relevant Louisiana Supreme Court precedent, the court found that the lack of mutuality and the imbalance in bargaining power rendered the clause unenforceable. The court held that the arbitration provision was adhesionary and thus invalid, and affirmed the district court’s denial of the motion to compel arbitration. View "MAPP v. Floor and Decor" on Justia Law

Several residential property owners and a short-term rental platform challenged two ordinances enacted by the city. The first ordinance, adopted in 2023, restricts short-term rental licenses to one per residential block and distributes them by lottery. The second ordinance, adopted in 2024, requires short-term rental platforms to verify the license status of properties before facilitating transactions, and to periodically reverify this status. Plaintiffs alleged that these ordinances infringed upon their constitutional and statutory rights, including claims under the Takings Clause and Section 230 of the Communications Decency Act.The United States District Court for the Eastern District of Louisiana reviewed the plaintiffs’ claims. It dismissed all claims under Rule 12(b)(6), except for Airbnb’s Fourth Amendment challenge regarding a monthly reporting requirement in the 2024 Ordinance. The district court granted Airbnb summary judgment on that particular claim. Airbnb appealed the dismissal of its other claims.The United States Court of Appeals for the Fifth Circuit examined the case de novo. The court held that the 2023 Ordinance did not constitute a per se or regulatory taking under the Takings Clause, noting that the ordinance neither physically appropriated property nor severely impaired economic expectations. It also found the ordinance to be a reasonable zoning regulation that balanced public interests. Regarding Section 230, the Fifth Circuit ruled that neither the booking nor verification requirements of the 2024 Ordinance treated Airbnb as the publisher or speaker of third-party content, and thus were not preempted. The court affirmed the district court’s dismissal of the Takings Clause claim and the Section 230 claim, as well as the dismissal of other claims raised by the plaintiffs. View "Bodin v. New Orleans" on Justia Law

Five individuals residing near a New Orleans hospital brought suit after the hospital moved its helicopter landing pad from a one-story building near the Mississippi River to the top of a new tower in the center of the hospital complex. The plaintiffs, claiming that the new helipad created excessive noise and vibrations, sought a mandatory injunction requiring the hospital to relocate the helipad or otherwise abate the disturbance, as well as damages for nuisance and negligence.The defendants removed the case from state court to the United States District Court for the Eastern District of Louisiana. The district court denied the plaintiffs’ request to remand the case to state court, finding that their subsequent removal of class-action allegations and request to decline supplemental jurisdiction amounted to improper forum shopping. The district court then granted the defendants partial summary judgment, holding that Federal Aviation Administration regulations preempted any permanent injunction to relocate the helipad. The court also dismissed some of the plaintiffs’ claims for damages, but allowed their claims for general nuisance damages to proceed to trial. Before trial, the plaintiffs appealed the order, seeking review of the denial of their request for an injunction.The United States Court of Appeals for the Fifth Circuit reviewed the appeal. The court held that it lacked jurisdiction over the interlocutory appeal because the district court’s order did not explicitly deny an injunction and, even if it had the practical effect of denying injunctive relief, the plaintiffs did not show that they satisfied the requirements for interlocutory review under 28 U.S.C. § 1292(a)(1) and Carson v. American Brands, Inc. The appeal was dismissed for lack of jurisdiction. View "Rey v. LCMC Health Care Partners" on Justia Law

A dispute arose over a property contract concerning two adjacent restaurant parcels in Humble, Texas, formerly owned by affiliates of Landry’s, Inc. After Landry’s sold one parcel, a Reciprocal Easement Agreement was created to regulate construction and modifications on each parcel. Years later, 20100 Eastex, L.L.C. purchased the parcel previously occupied by Joe’s Crab Shack and leased it to BJ’s Brewery, which planned to demolish the existing building and construct a new one. BJ’s requested Saltgrass’s consent for the project, but Saltgrass denied approval, leading Eastex to claim that consent was deemed granted under the contract due to alleged procedural defects.The United States District Court for the Southern District of Texas granted summary judgment to Saltgrass, finding that the Agreement required Eastex to obtain Saltgrass’s express written consent before demolition or new construction, and Eastex failed to properly request approval. Eastex appealed, and the United States Court of Appeals for the Fifth Circuit initially found Section 3.3 of the Agreement ambiguous and remanded for further factfinding. On remand, the district court considered extrinsic evidence, particularly the uncontested testimony of the drafter, and again granted summary judgment for Saltgrass.On appeal, the United States Court of Appeals for the Fifth Circuit concluded that undisputed extrinsic evidence clarified Section 3.3, establishing that Saltgrass’s consent was required for any demolition or new construction. The court affirmed summary judgment for Saltgrass, dismissed Eastex’s appeal regarding attorney fees for lack of jurisdiction, and remanded for determination of Saltgrass’s appellate attorney fees. The main holdings were: Saltgrass’s interpretation of the contract was correct; summary judgment was proper due to lack of genuine factual dispute; and Saltgrass is entitled to appellate attorney fees. View "20100 Eastex v. Saltgrass" on Justia Law

Several property owners in New Braunfels, Texas, challenged a city zoning ordinance that prohibits short-term rentals in residential districts. The ordinance, originally enacted in 2006 and amended in 2011, was in place prior to the appellants’ purchase of their properties. Despite knowing about the restrictions, the appellants either engaged in or sought to engage in short-term rental activities and, after being denied zoning changes to permit such use, filed suit against the city. Their claims alleged the ordinance violated the Due Process and Equal Protection Clauses of both the United States and Texas Constitutions.The United States District Court for the Western District of Texas initially dismissed the appellants’ claims under Rule 12(b)(6). The United States Court of Appeals for the Fifth Circuit, in a prior decision, vacated and remanded, allowing the appellants to proceed to discovery. After discovery, both parties moved for summary judgment. The district court again ruled in favor of the city, granting summary judgment on all claims. The appellants then sought review of this decision.The United States Court of Appeals for the Fifth Circuit affirmed the district court’s judgment. The court held that Texas law does not recognize a protected property interest in the right to lease one’s home on a short-term basis, which is required for a due process claim. It further found that the ordinance’s restrictions on short-term rentals survive rational-basis review under the Equal Protection Clause, as the city’s goal of preserving the residential character of neighborhoods is a legitimate government interest, and the line drawn between short-term and longer-term rentals was not arbitrary. Accordingly, the court found no constitutional violation and affirmed the summary judgment in favor of the city. View "Marfil v. City of New Braunfels" on Justia Law

A catastrophic storm in March 2016 caused unprecedented rainfall in the Sabine River basin, leading the operators of the Toledo Bend Dam—jointly managed by the Sabine River Authority of Texas and the Sabine River Authority, State of Louisiana—to open nine spillway gates. This action released significant amounts of water into the Sabine River over several weeks. Downriver landowners experienced extensive flooding and property damage. More than 700 landowners brought suit, alleging that the dam operators’ actions constituted a compensable taking of their property under the Fifth Amendment.The case began in the United States District Court for the Eastern District of Texas, where the defendants raised several defenses, including sovereign immunity, which was litigated and ultimately denied. Discovery disputes arose over the admissibility and timeliness of the plaintiffs’ expert affidavits and reports, which were found to rely heavily on an untested graduate thesis. The magistrate judge struck the challenged affidavits as untimely, and the plaintiffs did not object. Later, the district court granted summary judgment for the defendants, finding the plaintiffs had not produced sufficient admissible evidence to create a genuine dispute of material fact as to whether the dam’s operation caused the flooding, nor that a taking had occurred. The court also found the necessity doctrine might shield the defendants but did not decide the case on that ground.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the lower court’s decisions. It held that the district court did not abuse its discretion in excluding the untimely expert affidavits. Affirming summary judgment, the Fifth Circuit found that the plaintiffs had failed to present sufficient evidence of causation—specifically, that the dam’s operation, rather than the unprecedented storm itself, caused additional flooding beyond what would have occurred without the dam. The judgment of the district court was affirmed. View "Bonin v. Sabine River Authority" on Justia Law

Cuevas Machine Company entered into a subcontract with O’Neal Constructors for fabrication and machining work at a filtration plant owned by Calgon Carbon Corporation in Mississippi. Under the subcontract, Cuevas was to be paid after Calgon paid O’Neal. Despite nonpayment from O’Neal, Cuevas continued its work. In October 2023, Cuevas recorded two construction liens totaling over $1.2 million against Calgon’s property, but the lien documents did not explicitly state the last date labor, services, or materials were supplied—a statutory requirement. Instead, Cuevas attached invoices to the liens, which included dates, but it was unclear whether these dates satisfied the statutory requirement.After Cuevas filed suit to foreclose on the liens in Mississippi state court, Calgon removed the case to the United States District Court for the Southern District of Mississippi and moved to dismiss. The district court granted Calgon’s motion, dismissing Cuevas’s complaint with prejudice under Rule 12(b)(6). The district court concluded, making an Erie guess, that the liens were unenforceable because they did not clearly specify the required “last date” in the manner demanded by Mississippi law, and found that the attached invoices did not sufficiently cure this defect.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s decision de novo. Finding Mississippi law ambiguous on whether attachments that do not plainly state the “last date” can satisfy the statutory requirement, the Fifth Circuit certified the following question to the Mississippi Supreme Court: whether attaching invoices that do not explicitly state the “last date labor, services or materials were supplied” satisfies the requirement under Miss. Code Ann. § 85-7-405(1)(b) that a lien “specify the date the claim was due.” The Fifth Circuit did not decide the merits, instead certifying the question for authoritative resolution. View "Cuevas Machine v. Calgon Carbon" on Justia Law