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

Legacy Housing Corporation purchased several hundred vacant lots in Horseshoe Bay, Texas, intending to develop manufactured housing. The lots were subject to zoning restrictions, including a cap on speculative housing permits, contractor requirements, utility hookup fees, and setback rules. Legacy also acquired adjacent land in the city’s extraterritorial jurisdiction (ETJ) to build a road connecting the lots to a nearby highway, but this land was restricted to agricultural and residential use. Despite these limitations, Legacy constructed a road over the ETJ property, a greenbelt strip, and some development lots, advertising it as a shortcut and access to planned amenities. The City and other defendants opposed the road, citing violations of existing restrictions. Legacy alleged a conspiracy among the City, the property owners’ association (POA), and developers to prevent its development.The United States District Court for the Western District of Texas addressed multiple claims and counterclaims. It denied Legacy’s motion to dismiss the City’s counterclaims, granted the City’s motion to dismiss most claims against it, and granted summary judgment to all defendants on the remaining claims, including regulatory takings, Section 1983 violations, civil conspiracy, breach of fiduciary duty, negligence, and a strips and gores claim. Legacy’s own motion for partial summary judgment was denied, and final judgment was entered.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed the district court’s rulings, with one modification. The appellate court held that Legacy’s regulatory takings claim regarding the two-permit cap was not prudentially ripe and should be dismissed without prejudice. The court otherwise affirmed summary judgment for the defendants, finding no genuine dispute of material fact and concluding that Legacy did not have property rights to build the road, nor did the defendants breach any legal duties or restrictive covenants. View "Legacy Hsing v. City of Horseshoe Bay" on Justia Law

The plaintiffs in this case are homeowners and rental-property supervisors in New Orleans who challenged the City’s regulations governing short-term rentals (STRs), defined as lodging offered for less than thirty days. The City’s regulatory scheme requires permits for both owners and operators of STRs, restricts eligibility to “natural persons,” mandates that operators reside at the property, and imposes specific advertising requirements. The regulations were enacted in response to concerns about neighborhood disruption and loss of affordable housing attributed to the proliferation of STRs. Plaintiffs argued that these regulations violated various constitutional provisions, including the Due Process and Equal Protection Clauses, the First Amendment, and the dormant Commerce Clause.The United States District Court for the Eastern District of Louisiana granted summary judgment largely in favor of the City, upholding the constitutionality of most aspects of the STR regulations. The district court found that the City had authority under state law to regulate STRs and rejected the plaintiffs’ due process and equal protection claims, except for one provision not at issue on appeal. The court also upheld the advertising restrictions and the operator residency requirement, interpreting the latter as not requiring permanent residency.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed in part, reversed in part, and remanded. The Fifth Circuit held that the City’s prohibition on business entities obtaining owner or operator permits violated the Equal Protection Clause, as the distinction was arbitrary and not rationally related to a legitimate government interest. The court also found that the requirement that each STR advertisement list only one dwelling unit violated the First Amendment. However, the court upheld the City’s authority to regulate STRs, the due process analysis, most advertising restrictions, and interpreted the operator residency requirement as not violating the dormant Commerce Clause. View "Hignell-Stark v. City of New Orleans" on Justia Law

Several development groups entered into a public improvement contract with a Texas city, purchasing over 60 acres of land, much of it in a flood zone. The developers received a variance from the city, exempting them from obtaining a federal floodplain permit (CLOMR), and invested significant funds in developing the property, including constructing a bridge. In 2018, the parties executed updated agreements, including a Master Development Agreement (MDA), which required certain conditions to be met within five years or the contract would automatically terminate, ending the city’s reimbursement obligations. As the deadline approached, the city informed the developers that they would now need to obtain the previously waived CLOMR, citing a later-enacted ordinance. Unable to comply in time, the developers sought an extension, which the city council denied, resulting in termination of the MDA.The developers sued in Texas state court, alleging the city’s actions constituted an unconstitutional taking under federal and state law, and also brought claims for breach of contract and violations of the Texas Vested Rights Statute. The city removed the case to the United States District Court for the Northern District of Texas and moved to dismiss. The district court dismissed the federal takings and declaratory judgment claims, finding the developers had not sufficiently alleged that the city acted in its sovereign rather than commercial capacity, and remanded the remaining state-law claims to state court.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed. The court held that the developers’ allegations arose from a contractual dispute, not a sovereign act by the city, and thus did not state a plausible takings claim under the Fifth Amendment. The court also found no abuse of discretion in the district court’s decision to dismiss the declaratory judgment claim, as the core issues would be resolved in the remanded state court action. View "Mesquite Asset Recovery Grp v. City of Mesquite" on Justia Law

After Hurricane Harvey caused significant flooding at the Arbor Court apartment complex in Houston in 2017, the property’s owner, DM Arbor Court, Limited (DMAC), sought permits from the City of Houston to repair the damage. The City denied these permits, invoking a provision of its flood control ordinance that had not previously been used for such denials. The City determined that a majority of the complex’s buildings had sustained “substantial damage,” requiring costly elevation before repairs could proceed. As a result, DMAC was unable to repair or redevelop the property, which led to the loss of tenants and the property sitting idle.DMAC filed suit in the United States District Court for the Southern District of Texas, alleging that the City’s denial of repair permits constituted an unconstitutional taking under the Fifth Amendment. The district court dismissed the case as unripe, but the United States Court of Appeals for the Fifth Circuit reversed, finding the case ripe once the City’s Director of Public Works formally denied the permit application. On remand, after a bench trial, the district court rejected DMAC’s takings claim, concluding that the property retained some economic value and that DMAC was not deprived of all economically beneficial use. The court also found that the City’s actions were justified under the Penn Central framework, emphasizing the public interest in flood management.On appeal, the United States Court of Appeals for the Fifth Circuit held that the City’s denial of the repair permit deprived DMAC of all economically viable use of Arbor Court, constituting a categorical taking under Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992). The Fifth Circuit reversed the district court’s judgment and remanded the case for further proceedings, holding that the City’s regulatory action amounted to a per se taking requiring just compensation. View "DM Arbor Court v. City of Houston" on Justia Law

Three organizations, Inclusive Louisiana, Mount Triumph Baptist Church, and RISE St. James, sued St. James Parish, the Parish Council, and the Parish Planning Commission, alleging violations of their constitutional and statutory civil rights. They claimed that the Parish discriminated against them by directing hazardous industrial development towards majority-Black districts and Black churches, where their members and congregants live. They also argued that the Parish's actions desecrated and restricted access to cemeteries of their enslaved ancestors.The United States District Court for the Eastern District of Louisiana dismissed all claims. It held that the plaintiffs lacked standing for some claims and that other claims were time-barred, as they were based on the Parish's 2014 Land Use Plan. The court also dismissed claims related to religious injuries, stating that the injuries were not traceable to the Parish's actions.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in dismissing the claims as time-barred, noting that the plaintiffs alleged ongoing discriminatory practices, not just a single incident. The court also found that the plaintiffs had standing to sue for property injuries and health-related injuries. Additionally, the court held that the plaintiffs had standing to pursue claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Louisiana Constitution, as their alleged injuries were traceable to the Parish's conduct.The Fifth Circuit reversed the district court's dismissal of the claims and remanded the case for further proceedings. The court emphasized that the plaintiffs had sufficiently alleged ongoing discriminatory practices and injuries that were fairly traceable to the Parish's actions. View "Inclusive Louisiana v. St. James Parish" on Justia Law

The case involves two nonprofit organizations, the National Federation of the Blind of Texas and Arms of Hope, which use donation boxes to collect items for fundraising. The City of Arlington, Texas, enacted an ordinance regulating the placement and maintenance of these donation boxes, including zoning restrictions and setback requirements. The nonprofits challenged the ordinance, claiming it violated the First Amendment by restricting their ability to place donation boxes in certain areas of the city.The United States District Court for the Northern District of Texas reviewed the case. The court granted summary judgment in favor of Arlington on several counts, including the constitutionality of the setback requirement and the ordinance not being overbroad or a prior restraint. However, the court ruled in favor of the nonprofits on the zoning provision, finding it was not narrowly tailored and thus violated the First Amendment. The court enjoined Arlington from enforcing the zoning provision against the nonprofits.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the ordinance was content-neutral and subject to intermediate scrutiny. It found that the zoning provision, which limited donation boxes to three of the city's 28 zoning districts, was narrowly tailored to serve Arlington's significant interests in public health, safety, welfare, and community aesthetics. The court also upheld the setback requirement, finding it did not burden more speech than necessary and left ample alternative channels of communication. The court concluded that the ordinance's permitting provisions did not constitute an unconstitutional prior restraint.The Fifth Circuit vacated the district court's judgment regarding the zoning provision and rendered judgment in favor of Arlington on that part. The rest of the district court's judgment was affirmed. View "National Federation of the Blind of Texas, Incorporated v. City of Arlington" on Justia Law

In October 2018, Warren G. Treme, a member of AJSJS Development, LLC, leased minerals on a tract of land in St. John the Baptist Parish, Louisiana, from Dr. Christy Montegut and his siblings. AJSJS intended to join a joint venture formed in 2010 between Treme, AIMS Group, Inc., and Fred Kinsley. The joint venture aimed to extract and process clay material from the tract for a U.S. Army Corps of Engineers project. However, to conduct mining and excavation activities, the plaintiffs needed to change the zoning classification of the tract. Despite multiple applications for rezoning, the Parish Council denied the applications after hearing complaints from affected residents. The plaintiffs then sued the Parish and the Council, alleging that the denial of the rezoning application constituted a regulatory taking without compensation in violation of the United States and Louisiana Constitutions. The plaintiffs also alleged violations of procedural and substantive due process and equal protection rights under the Fourteenth Amendment.The United States Court of Appeals for the Fifth Circuit held that the plaintiffs lacked standing to bring a takings claim because their mineral lease was not yet in effect, meaning they had no vested property interest in the tract. The court interpreted the lease to have a suspensive condition that required the plaintiffs to obtain governmental approvals for the lease to become effective. As the plaintiffs had not obtained these approvals, the lease had not yet come into effect. Consequently, the court affirmed the district court’s decision but modified the judgment to be a dismissal without prejudice. View "Treme v. St. John the Baptist" on Justia Law

Plaintiffs are Constance Swanston (“Swanston”), Shannon Jones (“Jones”), and Women’s Elevated Sober Living, LLC (“WESL”) (collectively, “Plaintiffs”). Swanston is an individual in recovery from substance use disorders (“SUDs”) and the owner and operator of WESL. In November 2018, WESL opened a sober living home (the “Home”) on Stoney Point Drive in Plano, Texas. Jones is a caretaker and resident of the Home. Defendant-Appellant, the City of Plano (the “City”) appealed the district court’s judgment holding that it violated the Fair Housing Act (“FHA”) due to its failure to accommodate Plaintiffs as to the capacity limits in the applicable zoning ordinance. The district court enjoined the City from (1) restricting the Home’s occupancy to fewer than fifteen residents; (2) enforcing any other property restriction violative of the FHA or ADA; and (3) retaliating against Plaintiffs for pursuing housing discrimination complaints under the FHA and ADA. Following a hearing, awarded Plaintiffs nominal damages of one dollar.   The Fifth Circuit vacated the district court’s injunction and remanded it. The court held that the district court erred in determining that the evidence satisfied the applicable legal standard. The court explained that the Third Circuit concluded that, based on its strict reading of Section 3604(f)(3)(B) and the prior jurisprudence in its court and its sister circuits, the resident failed to prove that her requested accommodation was necessary considering the definition of the term, the purpose of the FHA, and the proffered alternatives. The court wrote that for the same reasons, it holds that Plaintiffs have failed to establish that their requested accommodation was therapeutically necessary. View "Women's Elevated v. City of Plano" on Justia Law

Plaintiffs appealed the Rule 12(b)(6) dismissal of their complaint, alleging that the City of New Braunfels’s zoning regulation banning short-term rentals of residential properties in certain areas of the city is unconstitutional. The district court ordered dismissal.   The Fifth Circuit vacated and remanded. The court held that Plaintiffs are entitled to engage in discovery in an attempt to surmount the currently high bar for challenging local zoning ordinances under the Constitution. View "Marfil v. City of New Braunfels" on Justia Law

This case arises from major flooding events in the Houston area in 2016 and 2017. Local political subdivisions sued the United States Army Corps of Engineers, seeking compliance with alleged regulatory obligations. The district court dismissed with prejudice for lack of subject matter jurisdiction and for failure to state a claim. The fundamental issue in the case is whether the Corps has violated any enforceable, legal obligation in the management of the relevant dams and reservoirs. A potential source for obligations imposed on the Corps is the 2012 Water Control Manual (“WCM”) adopted by the Corps for flood control in the relevant watershed.   The Fifth Circuit reversed and remanded. The court held that Section 702 of the APA has been satisfied in that the complaint alleges Plaintiffs have been aggrieved by agency action, that the suit is not one for money damages, and that the injury arises from an officer or employee who has acted or failed to act in an official capacity or under color of law. Further, the court held that the Tucker Act does not provide an “adequate remedy” to the County’s claims within the meaning of Section 704. Further, the court wrote that since the regulation does not specify when such conditions require the Corps to update a WCM, the Corps must exercise discretion in deciding when updating a WCM is necessary. Such discretion is antithetical to a mandatory duty. Thus the court concluded there is no discrete, mandatory duty to revise. View "Ft Bend Cty v. US Army Corps" on Justia Law