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

Springboards for Education (“Springboards”) brought trademark infringement claims against McAllen Independent School District (“MISD”), a public school district in Texas, and IDEA Public Schools (“IDEA”), a nonprofit organization operating charter schools in Texas. The district court dismissed the suit against IDEA, concluding it was an arm of the state and therefore shared Texas’s sovereign immunity. As for MISD, the court found that it did not have sovereign immunity but ultimately granted summary judgment in MISD’s favor.   The Fifth Circuit affirmed the district court’s judgment for MISD. The court explained that while it disagrees with the district court’s conclusion that IDEA has sovereign immunity, the court affirmed the judgment for IDEA on alternate grounds. The court reasoned that in determining whether an entity is an arm of the state, the court balances the so-called “Clark factors,” which our court first articulated decades ago in Clark v. Tarrant County. Those factors are: (1) whether state statutes and case law view the entity as an arm of the state; (2) the source of the entity’s funding; (3) the entity’s degree of local autonomy; (4) whether the entity is concerned primarily with local, as opposed to statewide, problems; (5) whether the entity has the authority to sue and be sued in its own name; and (6) whether it has the right to hold and use property. The court held that factors one and three favor sovereign immunity while factors two, four, five, and six do not. The court concluded that IDEA is not an arm of the state and does not share in Texas’s sovereign immunity. View "Springboards v. IDEA Public Schools" on Justia Law

Petitioner is a native citizen of Mexico who received lawful permanent resident status in the United States in 2003. In 2014, Petitioner was convicted by way of a guilty plea of an Aggravated Robbery in Texas. Petitioner was then deemed removable by an Immigration Judge ("IJ"). The Board of Immigration Appeals ("BIA") affirmed, finding that Petitioner had been convicted of an "aggravated felony."The Fifth Circuit affirmed. Under 8 U.S.C. Sec. 1227(a)(2)(A)(iii), an “alien who is convicted of an aggravated felony at any time after admission is deportable.” Section 1101(a)(43) of title 8 provides a list of offenses that qualify as aggravated felonies, which includes felony theft crimes, felony crimes of violence and attempts to commit these offenses. Petitioner argued that “since the Texas definition of a robbery encompasses an attempt to commit theft, it cannot categorically be defined as a theft offense, as an actual taking or exercise of control over the property of another is not needed for purposes of a conviction.However, the court held that, for Petitioner's purposes, it didn't matter if he was convicted of attempted theft or aggravated theft. The court explained that Petitioner is ineligible for asylum because his conviction qualifies as a non-political felony crime of violence as defined in 18 U.S.C. Sec. 16(a). View "Rodriguez Gonzalez v. Garland" on Justia Law

A federal grand jury indicted Defendant for possessing a firearm while under a domestic violence restraining order in violation of 18 U.S.C. Section. 922(g)(8). On appeal, Defendant renewed his constitutional challenge to Section 922(g)(8). Defendant again acknowledged that his argument was foreclosed, and a prior panel of the Fifth Circuit agreed. But after Bruen, the prior panel withdrew its opinion, ordered supplemental briefing, and ordered the clerk to expedite this case for oral argument before another panel of the court. Defendant now contends that Bruen overrules our precedent and that under Bruen, Section 922(g)(8) is unconstitutional.   The Fifth Circuit reversed and vacated Defendant’s conviction. The court explained that Section 922(g)(8) embodies salutary policy goals meant to protect vulnerable people in society. Weighing those policy goals’ merits through the sort of means-end scrutiny the court’s prior precedent indulged. The court previously concluded that the societal benefits of Section 922(g)(8) outweighed its burden on Defendant’s Second Amendment rights. But Bruen forecloses any such analysis in favor of a historical analogical inquiry into the scope of the allowable burden on the Second Amendment right. Through that lens, the court concluded that Section 922(g)(8)’s ban on the possession of firearms is an “outlier that our ancestors would never have accepted.”  Therefore, the statute is unconstitutional, and Defendant’s conviction under that statute must be vacated View "USA v. Rahimi" on Justia Law

According to the indictment, Defendant, a citizen of Switzerland and a partner in a Swiss wealth-management firm, and co-Defendant, a citizen of Portugal and Switzerland and an employee of a different Swiss wealth-management firm (together, “Defendants”), engaged in an international bribery scheme wherein U.S.-based businesses paid bribes to Venezuelan officials for priority payment of invoices and other favorable treatment from Venezuela’s state-owned energy company. A grand jury returned a nineteen-count indictment charging Defendants with various offenses stemming from their alleged international bribery scheme. The district court granted Defendants’ motions to dismiss.   The Fifth Circuit reversed and remanded. The court held that the district court’s grant of Defendants’ motions to dismiss was improper because the indictment adequately conforms to minimal constitutional standards. Further, the indictment did not violate co-Defendant’s due process rights. Moreover, the court wrote the district court’s conclusion that Section 3292 failed to toll the statute of limitations is erroneous. The court explained that the totality of the circumstances indicates that a reasonable person in co-Defendant’s position would not have equated the restraint on his freedom of movement with formal arrest. View "USA v. Murta" on Justia Law

Defendant pleaded guilty to one count of transportation of child sexual abuse material. The district court sentenced Defendant to 240 months of imprisonment followed by lifetime supervision and ordered Defendant to pay a total of $61,500 in restitution to seven victims depicted in Defendant’s materials. On appeal, Defendant sought to vacate the order of restitution, contending that it was imposed in violation of the proximate-cause requirements described in Paroline v. United States. The Government moved to dismiss the appeal on the theory that it is waived by the appeal waiver in Defendant’s plea agreement.   The Fifth Circuit granted the motion to dismiss. The court explained that because it is clear that the district court considered the Paroline factors at sentencing and ordered restitution as authorized by Section 2259, the statutory-maximum exception does not apply. Nor did the district court merely rubber-stamp the conclusion. To the contrary, it gave meaningful consideration to whether the evidence showed that Defendant’s conduct proximately caused the victims’ loss. Accordingly, the appeal waiver in Defendant’s plea agreement bars this appeal. View "USA v. Alfred" on Justia Law

Plaintiffs are captains of charter boats operating in the Gulf of Mexico with federal for-hire permits, and their companies. They filed a class-action complaint in the Eastern District of Louisiana in August of 2020, naming as Defendants the Department of Commerce, NOAA, NMFS, and related federal officials. This appeal concerns a regulation issued by the United States Department of Commerce that requires charter-boat owners to, at their own expense, install onboard a vessel monitoring system that continuously transmits the boat’s GPS location to the Government, regardless of whether the vessel is being used for commercial or personal purposes.   The Fifth Circuit reversed the district court’s judgment and held that in promulgating this regulation, the Government committed multiple independent Administrative Procedure Act violations, and very likely violated the Fourth Amendment. The court wrote that two components of the Final Rule are unlawful. First, the Magnuson-Stevens Act does not authorize the Government to issue the GPS-tracking requirement. In addition, that rule violates the Administrative Procedure Act because it is arbitrary and capricious, in turn because the Government failed to address Fourth Amendment issues when considering it and failed to rationally consider the associated costs and benefits. Second, the business-information requirement violates the APA because the Government did not give fair notice that it would require the type of data specified in the Final Rule. View "Mexican Gulf v. U.S. Dept. of Comm" on Justia Law

Petitioner, a citizen of Mexico, entered the United States without authorization in 2000. In 2017, Petitioner accidentally hit a pedestrian with her car and then fled the scene. She entered a guilty plea to Texas Transportation Code Sec. 550.021 and was sentenced to five years’ deferred adjudication.While on deferred adjudication, the Department of Homeland Security arrested Petitioner and charged her with being present without admission or parole under section 212(a)(6)(A)(i) of the Immigration and Nationality Act. In 2020, Petitioner filed an application for cancellation of removal with the immigration court; she also requested voluntary departure. The Immigration Judge denied her application, finding her 2017 conviction was for a crime of moral turpitude, rendering her ineligible for cancellation. The Board of Immigration Appeals ("BIA") affirmed and denied Petitioner's motion to reconsider.In reviewing Petitioner's claim, the BIA applied outdated precedent. Under controlling precedent, outlined in Mathis v. United States, 579 U.S. 500 (2016), the proper focus is on the minimum conduct prohibited by the statute, not on the Petitioner's particular actions. Here, The minimum conduct that can trigger liability is the failure to remain at the scene of the accident and provide one’s name and other information. However, this question was not addressed by the BIA. Thus, the court vacated the BIA's order and remanded to determine whether the failure to share information under Sec. 550.021(a)(4) is a CIMT. View "Zamaro-Silvero v. Garland" on Justia Law

The Department of Homeland Security charged him with removability under the Immigration and Nationality Act (“INA”). Petitioner admitted the factual allegations and conceded the charge of removability. Petitioner applied for cancellation of removal, withholding of removal, and protection under the Convention Against Torture. The immigration judge (“IJ”) denied his application for all claims. Petitioner appealed to the Board of Immigration Appeals (“BIA”). The BIA dismissed the appeal. Petitioner petitioned for review in the Fifth Circuit, and he only preserved his cancellation of removal claim.   The Fifth Circuit dismissed the appeal and held that it lacked jurisdiction to review either decision. The court explained that Section 1252(d)(1)’s exhaustion requirement applies to claims alleging defects in the BIA proceedings that the BIA “never had a chance to consider” because they arise “only as a consequence of the Board’s error.” Moreover, “when a petitioner seeks to raise a claim not presented to the BIA and the claim is one that the BIA has adequate mechanisms to address and remedy, the petitioner must raise the issue in a motion to reopen prior to resorting to review by the courts.” Here, Petitioner failed to meet these requirements. He never presented his ultra vires claim to the BIA, even though he could have raised it in his motion to reconsider. Moreover, Petitioner seeks the exact relief the BIA could’ve awarded him on reconsideration—namely, a new decision by a board member serving an unexpired term. View "Ayala Chapa v. Garland" on Justia Law

A major data breach compromised sensitive consumer information on thousands of credit cards. In this appeal, we address who must pay for the cleanup. Beginning in 2014, hackers compromised credit card data at multiple businesses owned by Landry’s Inc. (“Landry’s”). Many of those cards belonged to Visa and Mastercard. In response, Visa and Mastercard imposed over twenty million dollars in assessments on JPMorgan Chase and its subsidiary Paymentech (collectively, “Chase”), who were responsible for securely processing card purchases at Landry’s properties. Chase then sued Landry’s for indemnification, and Landry’s impleaded Visa and Mastercard. The district court dismissed Landry’s third-party complaints against Visa and Mastercard and granted summary judgment for Chase, finding that Landry’s had a contractual obligation to indemnify Chase. Landry’s argued that it should not have to indemnify Chase because the assessments are not an enforceable form of liquidated damages.   The Fifth Circuit affirmed. The court explained that since Landry’s indemnification obligation stems from its own acts or omissions under the Merchant Agreement, the debt is its own. Further, the court wrote that Landry’s alleged for its deceptive business practices claims that the assessments were “invalid” under the Payment Brand Rules and “applicable law” and, therefore, the Payment Brands’ “imposition and collection of the [assessments] was an unlawful business practice.” Because these claims turn on the assessments’ enforceability under Chase’s contracts with the Payment Brands, they are functionally the same as the subrogated claims. Since Landry’s cannot challenge the Payment Brands over those contracts as Chase’s subrogee, it cannot do so through a change in labeling. View "Paymentech v. Landry's" on Justia Law

The Hagens (Leah and Michael) were convicted by a jury of conspiring to defraud the United States and to pay and receive health care kickbacks. Each was sentenced to 151 months of imprisonment, followed by three years of supervised release, plus restitution. Both Hagens appealed, arguing that the district court erred in excluding evidence, refusing to instruct the jury on an affirmative defense, and imposing a sentencing enhancement and restitution.The Fifth Circuit affirmed the Hagens' convictions and sentences. The court found that the excluded evidence, which consisted of witness testimony, was irrelevant and cumulative. Thus, the district court did not err in excluding it. Even if the exclusion of the evidence wasn't warranted, the court determined that any error below was harmless.The court also held that the Hagans failed to put sufficient evidence forward justifying their requested jury charge on the safe-harbor affirmative defense. Finally, the court rejected the Hagens' claim that the lower court erred in applying a sentencing enhancement for the couple's "sophisticated money laundering scheme." The court explained that evidence suggested the Hagens manipulated their wire transfer payments to conceal the kickback scheme, which justified the enhancement. View "USA v. Hagen" on Justia Law