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

Ultra Deep Picasso Pte. Limited (Ultra Deep) is a contractor specializing in undersea vessel operations for marine construction. Dynamic Industries Saudi Arabia Ltd. (Dynamic) subcontracted Ultra Deep for a project related to a contract with Saudi Aramco. Ultra Deep completed work worth over ten million dollars but alleged that Dynamic failed to pay, breaching their agreement. Ultra Deep filed a complaint in the Southern District of Texas, seeking breach of contract damages and a maritime attachment and garnishment of Dynamic’s funds allegedly held by Riyad Bank.The district court granted Ultra Deep an ex parte order for attachment of Dynamic’s assets at Riyad Bank. Dynamic responded with motions to dismiss for lack of personal jurisdiction, improper venue, and to compel arbitration, which were denied. Dynamic and Riyad Bank then moved to vacate the attachment order, arguing that Ultra Deep failed to show Dynamic had property in the Southern District of Texas. The magistrate judge held a hearing and found that Ultra Deep did not present evidence that Dynamic’s property was within the district. The district court adopted the magistrate judge’s recommendation, vacated the attachment order, and dismissed the case with prejudice.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that for a valid Rule B attachment, the property must be found within the district. It concluded that a bank account is located where its funds can be withdrawn. Since Ultra Deep failed to show that Dynamic’s property was within the Southern District of Texas, the court affirmed the district court’s decision to vacate the attachment order and dismiss the case. View "Ultra Deep Picasso v. Dynamic Industries Saudi Arabia Ltd." on Justia Law

In 2020, First United Pentecostal Church in DeQuincy, Louisiana, sustained significant damage from Hurricanes Laura and Delta. The church was insured by Church Mutual Insurance Company (CM), which covered several buildings on the property. After the hurricanes, First United submitted a claim to CM, but CM delayed the inspection and payment process. CM eventually made two payments totaling $191,832.28, which the church used for repairs. Dissatisfied with the amount and timing of the payments, First United filed a lawsuit against CM, alleging breach of contract and violations of Louisiana insurance statutes.The United States District Court for the Western District of Louisiana held a bench trial and found in favor of First United. The court concluded that CM had acted in bad faith by failing to make timely payments and awarded First United $1,101,122.87 in unpaid losses, along with statutory penalties, attorney fees, and costs, bringing the total award to $2,073,838.96. The court later amended the judgment to $2,052,335.09 after correcting some errors. CM's motions for a new trial and for judgment as a matter of law were denied, leading to this appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decisions on several points, including the denial of CM's motion to exclude First United's expert, Kermith Sonnier, and the use of Sonnier's estimate to calculate damages. However, the appellate court reversed the district court's imposition of statutory penalties, attorney fees, and costs, finding that CM's actions were not arbitrary, capricious, or without probable cause. The case was remanded for further proceedings consistent with the appellate court's opinion. View "First United v. Church Mutual Insurance" on Justia Law

Justin Henry was observed by New Orleans Police Department officers entering a stolen vehicle in a shopping center parking lot. When approached by police, Henry fled on foot, discarding a firearm in the process. Henry, a convicted felon, was subsequently charged with possession of a firearm by a felon under 18 U.S.C. § 922(g)(1). He pleaded guilty to the charge.The United States District Court for the Eastern District of Louisiana sentenced Henry, applying a four-level enhancement under U.S.S.G. § 2K2.1(b)(6)(B) for possessing a firearm in connection with another felony offense, specifically the possession of a stolen vehicle. The court determined that the firearm facilitated or had the potential to facilitate the possession of the stolen vehicle. This enhancement increased Henry’s sentencing range, resulting in a 100-month prison sentence followed by three years of supervised release.The United States Court of Appeals for the Fifth Circuit reviewed the case. Henry argued that the district court erred in applying the sentencing enhancement, contending that the government failed to prove he knew the vehicle was stolen and that the firearm facilitated the possession of the stolen vehicle. The Fifth Circuit found that while the district court could reasonably infer Henry knew the vehicle was stolen, there was insufficient evidence to support the finding that the firearm facilitated the possession of the stolen vehicle. The court noted that mere proximity of the firearm to the stolen vehicle was not enough to apply the enhancement.The Fifth Circuit affirmed Henry’s conviction but vacated his sentence and remanded the case for resentencing, holding that the district court erred in applying the § 2K2.1(b)(6)(B) enhancement without sufficient evidence of facilitation. View "United States v. Henry" on Justia Law

The plaintiffs alleged that the defendants marketed fraudulent franchise opportunities to foreign nationals seeking to invest in the United States to obtain residency visas. The complaint included claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and state-law claims for fraud, breach of contract, and malpractice. The plaintiffs claimed that the defendants misrepresented the nature of the investment opportunities, leading the plaintiffs to believe they were purchasing franchises that would qualify them for E-2 or EB-5 visas. Instead, they received licenses that did not meet visa requirements, resulting in financial losses and visa application issues.The United States District Court for the Southern District of Texas dismissed the case for failure to state a claim. The court found that the plaintiffs did not adequately allege a cognizable enterprise under RICO and failed to meet the heightened pleading standards for fraud under Federal Rule of Civil Procedure 9(b). The district court also denied the plaintiffs leave to amend their complaint, citing undue delay and the plaintiffs' failure to provide a proposed amended complaint or additional facts that would cure the deficiencies.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the plaintiffs failed to plead a RICO enterprise, as the complaint did not provide sufficient factual detail to support the existence of an association-in-fact enterprise. The court also upheld the dismissal of the fraud and fraudulent inducement claims, finding that the plaintiffs did not meet the particularity requirements of Rule 9(b). Additionally, the court found no abuse of discretion in the district court's denial of leave to amend the complaint and the dismissal of claims against certain defendants for failure to effect timely service of process. View "Crosswell v. Rodriguez" on Justia Law

Dajuan Martin was arrested after being seen riding a stolen scooter in New Orleans. During the police pursuit, he discarded a Glock 26, 9mm semi-automatic handgun, which was later recovered with a magazine containing 16 rounds of ammunition. Martin pled guilty to being a felon in possession of a firearm under 18 U.S.C. § 922(g)(1). The Presentence Investigation Report (PSR) calculated his offense level at 12, with a criminal history category of III, suggesting a sentencing range of 15 to 21 months. However, the government objected, arguing for a higher base offense level due to the firearm's large capacity magazine.The United States District Court for the Eastern District of Louisiana accepted the government's argument, raising Martin's base offense level to 20, resulting in a new sentencing range of 30 to 37 months. Martin was sentenced to 33 months of imprisonment and 3 years of supervised release. The court also imposed conditions for supervised release, including participation in a drug and alcohol treatment program and submission to searches under certain conditions. However, the written judgment included additional requirements not stated during the oral pronouncement.The United States Court of Appeals for the Fifth Circuit reviewed the case. Martin challenged the district court's application of the Sentencing Guidelines' commentary defining "large capacity magazine" and the discrepancies between the oral pronouncement and the written judgment regarding supervised release conditions. The Fifth Circuit upheld the district court's use of the commentary, finding it consistent with the Guidelines. However, it agreed with Martin that the written judgment improperly broadened the conditions of supervised release.The Fifth Circuit affirmed Martin's sentence in part, vacated it in part, and remanded the case for the district court to amend the written judgment to conform to the oral pronouncement. The court also rejected Martin's constitutional challenge to 18 U.S.C. § 922(g)(1), citing consistent precedent upholding the statute's constitutionality. View "USA v. Martin" on Justia Law

In response to challenges faced during the 2020 election, the Texas Legislature enacted S.B. 1 in 2021, which restricts paid "vote harvesting services." This law aims to protect the privacy of mail-in voters by prohibiting compensated interactions intended to influence votes. Plaintiffs, a coalition of organizations, challenged this provision on vagueness and First Amendment grounds, seeking injunctions against various Texas officials.The United States District Court for the Western District of Texas enjoined the enforcement of the vote harvesting provision of S.B. 1 on September 28, 2024, nearly three years after the law took effect and just three weeks before voting was to begin. The State of Texas then moved to stay the district court's order pending appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case and granted the State's request for a stay. The court emphasized the Supreme Court's guidance in Purcell v. Gonzalez, which advises against altering election laws close to an election due to potential voter confusion and administrative burdens. The court found that the district court's injunction, issued after mail-in ballots had already been distributed, could lead to significant confusion and disruption.The Fifth Circuit held that the plaintiffs' constitutional challenge to S.B. 1 was not "entirely clearcut," failing to meet the criteria that might justify an exception to the Purcell principle. The court noted that the law's provisions were designed to protect voter privacy and security, similar to protections upheld by the Supreme Court for in-person voting. Consequently, the motion to stay the district court's injunction pending appeal was granted. View "La Union del Pueblo Entero v. Abbott" on Justia Law

In the early morning hours, Officer James Marshall observed Rodney Rucker sitting in a running car outside a hotel known for criminal activity. Marshall approached Rucker, who refused to identify himself or exit the vehicle. After additional officers arrived, they broke Rucker’s window, forcibly removed him, and arrested him. Rucker subsequently sued the officers under 42 U.S.C. § 1983, alleging unlawful seizure and arrest, First Amendment retaliation, excessive force, and bystander liability.The United States District Court for the Northern District of Mississippi denied the officers' motion for summary judgment on all claims, finding genuine disputes of material fact regarding the officers' reasonable suspicion, the alleged manufacturing of evidence, potential retaliation, and the reasonableness of the force used. The officers appealed, arguing that they were entitled to qualified immunity.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo and reversed the district court’s decision. The appellate court found that the bodycam footage clearly showed that Officer Marshall had reasonable suspicion to stop and question Rucker based on the time, location, and Rucker’s behavior. The court also determined that Marshall had probable cause to arrest Rucker for failing to comply with lawful commands and for operating a vehicle without displaying a driver’s license. Additionally, the court held that the officers did not use excessive force, as Rucker’s repeated refusals to comply justified their actions. Consequently, the officers were entitled to qualified immunity on all claims, including the bystander liability claim against Officer Carter. The case was remanded for entry of summary judgment in favor of the officers. View "Rucker v. Marshall" on Justia Law

A federal agent stationed in Dubai, Leatrice De Bruhl-Daniels, developed a romantic relationship with a Syrian national, Nadal Diya, who was under investigation for suspected ties to terrorism. Despite warnings from her colleagues, De Bruhl-Daniels disclosed confidential information to Diya, including details about an ongoing counterterrorism investigation. She later lied to federal investigators about these disclosures.Following a jury trial in the United States District Court for the Southern District of Texas, De Bruhl-Daniels was convicted on twelve counts related to her conduct and sentenced to 108 months in prison. She appealed four of her convictions and her overall sentence, arguing that her false statements did not involve international terrorism under 18 U.S.C. § 1001(a), that the statute’s sentencing enhancement was unconstitutionally vague, and that her conduct did not fall under the scope of 18 U.S.C. § 1512(c)(2).The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed De Bruhl-Daniels' conviction on Count 24, finding sufficient evidence that her false statements involved international terrorism, thus justifying the enhanced sentence under § 1001(a). The court also held that the statute was not unconstitutionally vague. However, the court vacated her convictions on Counts 15, 36, and 37, which were based on obstructing an official proceeding, citing the Supreme Court’s recent decision in Fischer v. United States. The court determined that her conduct did not fall within the scope of § 1512(c)(2) as it did not involve tampering with evidence.As a result, the Fifth Circuit vacated De Bruhl-Daniels' sentence and remanded the case for resentencing based on the remaining convictions. View "United States v. De Bruhl-Daniels" on Justia Law

A group of major record labels sued Grande Communications Networks, LLC, an internet service provider, for contributory copyright infringement. The plaintiffs alleged that Grande knowingly provided internet services to subscribers who used them to infringe on the plaintiffs' copyrighted works. The plaintiffs presented evidence that Grande received over 1.3 million infringement notices from Rightscorp, a company that identifies infringing activity on peer-to-peer networks, but Grande did not terminate or take action against repeat infringers. Instead, Grande continued to provide internet services to these subscribers, despite knowing about their infringing activities.The United States District Court for the Western District of Texas held a three-week jury trial. The jury found Grande liable for willful contributory copyright infringement and awarded the plaintiffs $46,766,200 in statutory damages. Grande moved for judgment as a matter of law (JMOL) on the issue of liability and for a new trial on damages, but the district court denied these motions. Grande then appealed, challenging the district court's rulings on its JMOL motion, the jury instructions, and the final judgment. The plaintiffs filed a conditional cross-appeal regarding a jury instruction.The United States Court of Appeals for the Fifth Circuit reviewed the case and upheld the jury's verdict, finding that the plaintiffs had provided sufficient evidence to support the jury's finding of contributory copyright infringement. The court concluded that Grande had knowledge of its subscribers' infringing activities and materially contributed to the infringement by continuing to provide internet services without taking basic measures to prevent further damage. However, the court found that the district court erred in awarding statutory damages for each individual song rather than for each album, as the Copyright Act treats all parts of a compilation as one work for statutory damages purposes. Consequently, the court vacated the damages award and remanded the case for a new trial on damages. The plaintiffs' conditional cross-appeal was dismissed as moot. View "UMG Recordings v. Grande Communications Networks, LLC" on Justia Law

Texas Truck Parts & Tire, Incorporated, a wholesaler and retailer of truck parts and tires, purchased tires from Chinese manufacturers between 2012 and 2017. These manufacturers shipped the tires to Texas Truck in Houston, Texas. Texas Truck did not file quarterly excise tax returns or pay excise taxes on the tires, believing the Chinese manufacturers were the importers responsible for the tax. Following an IRS audit, Texas Truck was assessed approximately $1.9 million in taxes. Texas Truck paid a portion of the taxes and filed for a refund, which the IRS did not act upon, leading Texas Truck to file a lawsuit seeking a refund. The Government counterclaimed for the remaining taxes owed.The United States District Court for the Southern District of Texas granted summary judgment in favor of Texas Truck, determining that the Chinese manufacturers were the importers and thus liable for the excise tax. The court based its decision on the interpretation that Texas Truck did not "bring" the tires into the United States under the applicable Treasury regulation, and did not consider whether Texas Truck was the beneficial owner of the tires.The United States Court of Appeals for the Fifth Circuit reviewed the case and held that Texas Truck was the beneficial owner of the tires and therefore liable for the excise tax. The court found that the district court erred by not considering whether Texas Truck was the beneficial owner under the Treasury regulation. The Fifth Circuit concluded that the Chinese manufacturers were nominal importers and that Texas Truck, as the beneficial owner, was responsible for the excise tax. Consequently, the court reversed the district court's summary judgment in favor of Texas Truck, rendered judgment for the Government, and remanded the case to the district court to determine the damages. View "Texas Truck Parts & Tire v. United States" on Justia Law