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

M.K., a minor, enrolled in the Pearl River County School District after being homeschooled. During his sixth-grade year, he was bullied by boys in four of his classes, who called him names like "gay." In October, M.K. exposed his genitals to one of the boys in a restroom, claiming it was either accidental or an attempt to prove he was not "gay." The District suspended M.K. and required him to attend an alternative school for six weeks, which he refused, considering it akin to a prison. M.K., through his father, sued the District and others, alleging deliberate-indifference sex-discrimination under Title IX.The United States District Court for the Southern District of Mississippi granted summary judgment in favor of the District, concluding that Title IX does not cover sexual-orientation discrimination and that the alleged behavior was not severe enough to be actionable. M.K. appealed this decision.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court affirmed the district court's decision, holding that the student behavior M.K. experienced, while mean-spirited, did not meet the Supreme Court's stringent standard for "severe, pervasive, and objectively offensive" conduct required for a Title IX claim. The court emphasized that the behavior M.K. described, such as name-calling and teasing, is common in schools and does not rise to the level of actionable harassment under Title IX. The court concluded that M.K.'s experiences, though unfortunate, were not sufficient to sustain his Title IX claim against the District. View "M.K. v. Pearl River County School District" on Justia Law

The plaintiffs, Cynthia Wilson, Erin Angelo, and Nicholas Angelo, filed a class action lawsuit against Centene Management Company, L.L.C., Celtic Insurance Company, Superior HealthPlan, Inc., and Centene Company of Texas, L.P. They alleged that the defendants provided materially inaccurate provider lists for their health insurance plans, causing the plaintiffs and proposed class members to pay inflated premiums. Specifically, the plaintiffs claimed that the inaccuracies in the provider directories led to overcharges for access to healthcare providers who were not actually available.The United States District Court for the Western District of Texas denied class certification, concluding that the plaintiffs lacked standing because they failed to establish an injury-in-fact. The court found that the plaintiffs did not adequately demonstrate that they had reasonable expectations regarding the size of the provider network and that the premiums they paid were inflated due to discrepancies between the promised and actual network sizes. The court also questioned the plaintiffs' expert report, which attempted to show a correlation between network size and premium prices, stating that it only showed correlation, not causation.The United States Court of Appeals for the Fifth Circuit reviewed the case and determined that the district court erred by not considering the appropriate test for determining standing at the class-certification stage. The Fifth Circuit adopted the class-certification approach, which requires only that the named plaintiffs demonstrate individual standing before addressing class certification under Rule 23. The appellate court found that the district court improperly engaged in a merits-based evaluation of the plaintiffs' expert testimony when determining standing. The Fifth Circuit vacated the district court's order denying class certification and remanded the case for further proceedings consistent with its opinion. View "Wilson v. Centene Management" on Justia Law

Federal agents stopped Damion Wilson on March 16, 2022, suspecting he was carrying a concealed firearm. Deputy U.S. Marshal Michael Atkins noticed a bulge in Wilson’s waist area, which he believed to be a firearm. Wilson admitted he was armed and did not have a concealed weapons permit. The agents arrested Wilson for carrying a firearm without a permit and found marijuana in his backpack. A subsequent search of Wilson’s apartment revealed more marijuana, drug paraphernalia, and cash. Wilson was indicted on six counts, including drug possession with intent to distribute, possession of a handgun in furtherance of a drug trafficking crime, maintaining a drug-involved premises, and making a false statement to a federal agent.The United States District Court for the Eastern District of Louisiana denied Wilson’s motion to suppress the evidence obtained from the stop and arrest, finding the agents had reasonable suspicion based on the bulge in Wilson’s waistband. The court also held that the contents of Wilson’s backpack would have been inevitably discovered through an inventory search. Wilson was convicted on four counts and sentenced to 87 months in prison.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that police cannot stop a citizen solely for carrying a firearm, but upheld the stop on other grounds, noting the agents had reasonable suspicion based on Wilson’s connection to a federal fugitive and his criminal history. The court affirmed the district court’s judgment, rejecting Wilson’s challenges to his conviction and sentence. The court found no plain error in the district court’s evidentiary rulings or the prosecutor’s statements during trial, and upheld the application of the obstruction-of-justice guideline in calculating Wilson’s sentence. View "United States v. Wilson" on Justia Law

In May 2018, Raynaldo Sampy Jr. was arrested by seven officers from the Lafayette Police Department after driving into an ice cooler. During the arrest, Sampy was forcibly removed from his vehicle, handcuffed, and bent over a police car. He kicked Officer Rabb while being restrained, leading to his conviction for battery of a police officer in Lafayette City Court. Sampy later filed a lawsuit under 42 U.S.C. § 1983, alleging excessive force by the officers and retaliation for his speech.The United States District Court for the Western District of Louisiana dismissed Sampy’s Fourth Amendment excessive force claim, Fourth Amendment bystander liability claim, and First Amendment retaliation claim under Heck v. Humphrey, which bars claims that would imply the invalidity of a conviction. The court did not dismiss a claim regarding a third instance of alleged excessive force, which went to trial, and the jury found for the defendants. Sampy appealed the dismissal of the initial two uses of force.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s dismissal de novo. The court held that Sampy’s excessive force claims were barred by Heck because they were not temporally and conceptually distinct from his battery conviction. The court found that the facts in Sampy’s complaint were inconsistent with those adjudicated in the criminal case. The court also held that Sampy’s bystander liability and First Amendment retaliation claims were barred by Heck. Consequently, the Fifth Circuit affirmed the district court’s judgment. View "Sampy v. Rabb" on Justia Law

Jose E. Amstutz, a police officer employed by Harris County Precinct 6, was terminated after his wife filed a police report alleging domestic abuse. Amstutz was placed on leave and later terminated following an internal investigation that found he violated several policies. Amstutz claimed his wife had a history of making false allegations and had informed his supervisors about this potential. After his termination, Amstutz struggled to find other law enforcement employment, which he attributed to the General Discharge noted in his F-5 report.The United States District Court for the Southern District of Texas dismissed Amstutz’s Age Discrimination in Employment Act (ADEA) claims for failure to exhaust administrative remedies and for not responding to the timeliness challenge. The court also dismissed his 42 U.S.C. § 1983 claims, finding that he had not pleaded a protected property interest in his at-will employment.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court’s dismissal of the ADEA claims, agreeing that Amstutz failed to address the timeliness challenge, thus waiving opposition to that argument. The court also affirmed the dismissal of the § 1983 claims, concluding that Amstutz did not identify any independent source of law that would create a property interest in his employment. The court found that Amstutz’s employment was at-will and that he did not have a legitimate claim of entitlement to continued employment. Consequently, the court also dismissed Amstutz’s Monell claim against Harris County, as there was no underlying constitutional violation. The court affirmed the district court’s denial of leave to amend, finding no abuse of discretion. View "Amstutz v. Harris County" on Justia Law

Dr. Bernard T. Swift and his wife, Kathy L. Swift, took tax deductions for insurance premium payments made by Swift’s medical practice to captive insurance companies. The IRS issued notices of deficiency, disallowing the deductions and imposing penalties. The tax court upheld the IRS’s determination, finding that the payments were not genuinely for insurance.The Swifts challenged the IRS’s determination in the tax court, which sustained both the deficiencies and penalties. The tax court found that the arrangement with the captive insurance companies did not constitute insurance because it did not achieve risk distribution and did not resemble commonly accepted notions of insurance. The Swifts then appealed the tax court’s decision.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the tax court’s decision, agreeing that the arrangement did not achieve risk distribution, which is essential for insurance. The court found that the number of risks insured by the captives was insufficient and that the reinsurance pools did not constitute bona fide insurance arrangements. The court also upheld the penalties, rejecting the Swifts’ arguments that the IRS failed to obtain timely supervisory approval and that they had reasonable cause or substantial authority for their tax treatment. The court concluded that the Swifts could not reasonably rely on advice from a promoter of the transaction and that the IRS letter rulings cited by the Swifts were materially distinguishable. View "Swift v. CIR" on Justia Law

Deputy Jose Nunez of the Harris County Sheriff’s Office responded to a 911 call about a possible home invasion. Upon arrival, he encountered Stephen Benavides, the homeowner’s father, at the front door. Nunez shot Benavides, who was unarmed, claiming the firearm discharged accidentally while switching hands. Benavides sued Nunez for excessive force under 42 U.S.C. § 1983.The United States District Court for the Southern District of Texas reviewed the case. Nunez sought summary judgment based on qualified immunity, arguing the shooting was accidental. The district court denied the motion, finding a genuine dispute of material fact regarding whether the shooting was intentional or accidental. The court held that if the shooting was intentional, it would be objectively unreasonable and violate clearly established law.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court noted that it lacked jurisdiction to review the district court’s determination of a genuine factual dispute in an interlocutory appeal. The Fifth Circuit emphasized that it could only review the materiality, not the genuineness, of the factual dispute. Since Nunez’s appeal challenged the genuineness of the factual dispute, the court dismissed the appeal for lack of jurisdiction. The case was remanded for a jury to resolve the factual dispute and determine the issue of qualified immunity. View "Benavides v. Nunez" on Justia Law

Seville Industries, LLC, a business providing services to the oil and gas sector, applied for a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic. The company included payments to independent contractors in its payroll costs calculation, resulting in a loan amount of $2,578,351. The Small Business Administration (SBA) later reviewed Seville's loan and determined that the inclusion of independent contractor payments was incorrect, leading to a partial forgiveness of the loan amount.The United States District Court for the Western District of Louisiana reviewed Seville's appeal against the SBA's decision. The district court granted summary judgment in favor of the SBA, upholding the decision to deny full loan forgiveness based on the inclusion of independent contractor payments in the payroll costs.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The court held that the CARES Act's definition of "payroll costs" does not include payments made to independent contractors by businesses. The court emphasized that the statutory text and structure clearly distinguish between payroll costs for employees and income for independent contractors or sole proprietors. The court also rejected Seville's claims that the SBA's interim final rule changed the meaning of "payroll costs" and that the SBA should be equitably estopped from denying full forgiveness. The court concluded that Seville was not entitled to include payments to independent contractors in its payroll costs calculation for PPP loan forgiveness. View "Seville Industries v. SBA" on Justia Law

In this case, the families of Michael Jackson, Carl Wiley, Jr., and Rashad Henderson, who were killed during high-speed police chases in Houston, Texas, sued the City of Houston. They alleged that the Houston Police Department (HPD) has a policy of racial profiling that leads to more high-speed chases in predominantly black neighborhoods, resulting in the deaths of their loved ones. The plaintiffs brought several federal municipal liability claims, including violations of equal protection, Title VI, 42 U.S.C. § 1982, and substantive due process, as well as state tort claims.The United States District Court for the Southern District of Texas granted in part and denied in part Houston's motions to dismiss for lack of subject matter jurisdiction and for judgment on the pleadings. The court dismissed all claims except the equal protection claims and Jackson’s state law claims. Houston then filed an interlocutory appeal, raising issues regarding standing, failure to state federal claims, capacity to sue, and governmental immunity for Jackson’s state law claims.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court determined that it lacked jurisdiction to review non-final district court orders except under 28 U.S.C. § 1292(b). The court found that it could only review whether the plaintiffs had standing to assert their equal protection claims. The court held that the plaintiffs lacked standing because their injuries did not stem from unequal treatment based on race. Consequently, the court reversed the district court’s order regarding standing for the equal protection claims and vacated the district court’s decision on governmental immunity for Jackson’s negligence claim, remanding the case for further proceedings. View "Jackson v. City of Houston" on Justia Law

In November 2023, Media Matters for America, a nonprofit organization, published articles critical of X Corp. and its CEO, Elon Musk, alleging that advertisements from popular brands were placed next to harmful content on the X platform. This led to significant losses for X as advertisers withdrew. X sued Media Matters and its employees in the federal district court for the Eastern District of Texas, alleging interference with contract, business disparagement, and interference with prospective economic advantage. Media Matters moved to dismiss the complaint for lack of personal jurisdiction, improper venue, and failure to state a claim, but the district court denied the motion. Media Matters then sought to certify the personal jurisdiction question for immediate appeal, which was also denied.The district court denied Media Matters' subsequent motion to transfer venue to the Northern District of California, citing untimeliness and a pattern of gamesmanship. Media Matters then filed a petition for writ of mandamus with the United States Court of Appeals for the Fifth Circuit, seeking a venue transfer based on 28 U.S.C. §§ 1404 and 1406.The United States Court of Appeals for the Fifth Circuit reviewed the petition and found that the district court had not properly considered the eight public- and private-interest factors required for a venue transfer analysis. The appellate court granted Media Matters' petition in part, vacated the district court's order denying the transfer, and remanded the case for a proper venue analysis. The court also held Media Matters' interlocutory appeal in abeyance pending the resolution of the remand. View "In Re: Media Matters for America" on Justia Law