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

On appeal, the St. Martin Parish School Board (the “School Board”) challenges the district court’s (1) exercise of remedial jurisdiction over the case, (2) denial of its motion for unitary status, and (3) imposition of additional equitable relief. The Fifth Circuit concluded that hat the district court properly retained remedial jurisdiction over the action; the court otherwised affirmed in part and reversed in part.The court explained that the district court did not clearly err in determining that the School Board failed to achieve unitary status in student assignment, faculty assignment, and the quality of education. The denial of unitary status was, therefore, not clearly erroneous. However, the court found that the district court abused its discretion in closing Catahoula Elementary School. The record demonstrates that progress has been made and progress can continue through the implementation of other reasonable, feasible, and workable remedies. Accordingly, the court reversed the closing of Catahoula Elementary School and remanded for consideration of other methods of addressing that concern. View "Borel v. Sch Bd Saint Martin Parish" on Justia Law

Defendant moved to suppress narcotics evidence that the Government seized after a letter carrier’s thumb slipped through a hole in a package, initiating an allegedly illegal search. According to Defendant the Fourth Amendment per se applies to letter carriers because they are government actors subject to its warrant requirement. According to the Government, this letter carrier was not a government actor to whom the Fourth Amendment applies, and her inspection of the package did not fall within its purview. The district court agreed with the Government and denied Defendant’s motion.The Fifth Circuit affirmed. The court explained that the Fourth Amendment does not per se apply to the letter carrier, the district court correctly concluded that she did not perform an unconstitutional warrantless search of a package that could justify the suppression of evidence. The court, therefore, did not reach Defendant’s arguments with respect to the exclusionary rule, the good faith exception, and the inevitable discovery and fruit of the poisonous tree doctrines. The court wrote that the building inspectors, firefighters, teachers, healthcare workers, and USPS employees that courts have identified as government actors to whom the Fourth Amendment applies were all carrying out law enforcement functions. The same cannot be said of the letter carrier. Her inspection of the package addressed to 109 Hogan Drive does not resemble the “arbitrary invasions by government officials” that the Fourth Amendment was ratified to protect against. View "USA v. Johnlouis" on Justia Law

Harrison Co., L.L.C. executed a credit agreement with A-Z Wholesalers, Inc. to supply A-Z with tobacco products and other goods. Barkat Ali personally guaranteed A-Z’s payment. A-Z fell behind $2.6 million on payments for the goods it received, so Harrison sued for breach of contract and breach of guaranty actions against A-Z and Ali. The district court granted summary judgment for Harrison.A-Z and Ali argue there is a genuine dispute of material fact as to whether the sales that Harrison is seeking payment for were, in reality, sales from Imperial following the merger of the two companies. The Fifth Circuit affirmed. The court wrote that Imperial and Harrison are—and always have been—separate entities with their own employees, customers, and warehouses. As the district court explained, A-Z and Ali do not allege, let alone present evidence, “that A-Z experienced any changes in ordering procedures, pricing, delivery schedules, type or brand of goods, inventory availability, or any other indicia that . . . [shows] it was no longer doing business with Harrison.” Therefore, the district court did not err in granting summary judgment. View "Harrison Company v. A-Z Whsle" on Justia Law

Plaintiff claimed her employment was terminated in retaliation for complaining she was going to be paid late. She filed a complaint against a department head within the Texas A&M Engineering Station in his individual capacity (“DH”), alleging he violated the anti-retaliation provision of the Fair Labor Standards Act (“FLSA”)  DH moved to dismiss Plaintiff’s retaliation claim because the suit was barred by sovereign immunity, and in the alternative, that he was entitled to qualified immunity. The district court determined that neither immunity applied.   The Fifth Circuit affirmed the rejection of sovereign immunity as a defense, affirmed the denial of the defense of sovereign immunity and vacated the judgment denying the defense of qualified immunity. The court held that holding public officials individually liable for retaliation under the FLSA also is consistent with the court’s prior holdings regarding individual liability in other FLSA contexts. However, the court wrote it discovered no Fifth Circuit opinion that holds qualified immunity is a defense under the FLSA. The court concluded that Plaintiff’s claim would be barred by qualified immunity because she does not allege that DH violated a clearly established law. However, the antecedent question is whether qualified immunity applies to the FLSA to begin with. The court, therefore, remanded for the district court to decide this question in the first instance. View "Stramaski v. Lawley" on Justia Law

Plaintiff formed the Enelre Foundation as a Stiftung under the laws of Liechtenstein. Stiftung is a German word meaning, roughly, “foundation” or “endowment.” Enelre’s purpose is to provide education and general support for Plaintiff and his children. Plaintiff transferred $3 million to Enelre’s bank accounts. He later learned the IRS would consider Enelre a “foreign trust,” triggering certain reporting requirements. Plaintiff belatedly filed the reports, and the IRS assessed penalties. Plaintiff paid the penalties and then filed this refund action. The district court granted summary judgment for the government.The Fifth Circuit affirmed. The court explained that the district court correctly found that Enelre qualifies as a foreign trust. Its organizing documents explain that Enelre’s purpose is to support its beneficiaries and limit its transactions to pursuing and realising its purpose. This is characteristic of an ordinary trust. The documents also prohibit Enelre from conducting commercial trade. Liechtensteinian Public Registry filings confirm this prohibition. Enelre’s familial purpose, lack of business objective, and bar on commercial activity render it a trust. Enelre’s form of organization confirms it is a trust. Enelre is subject to Liechtenstein’s “Act on Trust Enterprises.” View "Rost v. USA" on Justia Law

Defendant the owner of a home health agency was convicted of Medicare fraud. On appeal, she complained that her Sixth Amendment right to effective assistance of counsel had been violated. Turns out, Defendant’s pretrial counsel was also representing one of the Government’s star witnesses. The Fifth Circuit remanded for an evidentiary hearing on whether Defendant’s lawyer’s conflict of interest—a conflict the Government knew about— adversely affected his representation, and the district court answered: yes.The Fifth Circuit vacated Defendant’s convictions and remanded for a new trial. The court explained that as the Government admits, it never offered Defendant a plea deal while she was represented by her conflicted pretrial counsel, or after. So there is no rejected plea deal to measure Defendant’s harm against. The court explained the constitutional right to counsel is “perhaps the central feature of our adversarial system,” as it “helps make real the Constitution’s other criminal procedure promises. The court wrote that the Government’s proposed remedy— to keep the convictions intact but remand for new plea negotiations— wouldn’t neutralize the taint of the constitutional violation. View "USA v. Sheperd" on Justia Law

Defendant, El Paso found Plaintiff’s son in the process of hanging himself from a basketball hoop. But it was dark, Defendant was afraid the man might have a weapon, and the man did not respond to Defendant’s orders to show his hands. So Defendant tased the man once, took down his body, and performed CPR. To no avail. The man soon after died in the emergency room from the hanging. His parents sued Defendant for using excessive force, the district court denied qualified immunity, and Defendant appealed.The Fifth Circuit reversed the district court’s decision and rendered judgment granting Defendant qualified immunity. The court explained that the district court and Plaintiffs rely on cases holding that officers may not use force against arrestees who are already subdued and in police custody. This case is markedly different. The reason Defendant tased the man was that he was not in custody and Defendant was afraid he might have a weapon. Even if that fear turned out to be groundless—something the court wrote it cannot decide here—Defendant still did not transgress any clearly established law. View "Ramirez v. Escajeda" on Justia Law

Plaintiffs sued Defendants, C.R. Bard, Inc. and Bard Peripheral Vascular, Inc. (“Bard”), due to complications Plaintiff experienced after implantation of a filter used as a medical device. The Plaintiffs now appeal the district court’s grant of summary judgment to Bard on their failure to warn and design defect claims.The Fifth Circuit affirmed. The court explained that n a failure-to-warn case, a plaintiff must show by the preponderance of the evidence that the product was defective because it failed to contain adequate warnings or instructions, the defective condition rendered the product unreasonably dangerous to the user or consumer, and the defective and unreasonably dangerous condition of the product proximately caused the damages for which recovery is sought.Here, Bard’s warning label warned in two different locations that Filter fracture and migration were “known complication[s].” Plaintiffs have thus failed to raise a genuine issue of material fact as to their failure to warn claim.Further, the court wrote that Plaintiffs make broad statements throughout their brief that presume a design defect must have caused Plaintiff’s complications. But actual evidence had to be identified to the district court in order to advance beyond the summary judgment stage for a design defect claim. View "Nelson v. C. R. Bard, Incorporated" on Justia Law

Plaintiff sued Defendant in a Texas federal court to recover unpaid legal fees. The federal rules allow service under the law of the state “where service is made,” Fed. R. Civ. P. 4(e)(1), so Plaintiff tried serving Defendant by publication under Florida law. But that publication notice was defective. Noting that defect, Defendant moved to vacate his default. Fed. R. Civ. P. 55(c). But the district court declined and soon entered a default judgment.The Fifth Circuit vacated and remanded the district court’s judgment. The court held that it was an error for the district court to decline to consider Defendant’s objection to improper service. The court explained that because Defendant was never properly served, he showed good cause to set aside his default and the default judgment that followed. View "Espinoza v. Humphries" on Justia Law

CAE Integrated L.L.C. and Capital Asset Exchange and Trading, L.L.C. (collectively CAE) sued its former employee and his current employer, Moov, for misappropriation of trade secrets and then moved for a preliminary injunction. The district court denied the preliminary injunction and CAE appealed.   The Fifth Circuit affirmed the denial finding that CAE failed to establish a likelihood of success on the merits of its claims. The court considered that trade secret information derives independent economic value from being not generally known or readily ascertainable through proper means. What CAE refers to as the “transactional documents” are files from Google Drive with purchase orders, invoices, customer equipment needs, and pricing history. The former employee has not had access to his MacBook since 2016 and he testified that Google Drive contained none of the transactional documents when he started at Moov. The district court found the employee’s testimony credible and the forensic analysis confirmed that before the employee began at Moov, he deleted any remaining transactional documents from his Google Drive. Therefore, the district court did not clearly err in finding that neither the employee nor Moov misappropriated trade secrets. Further, even if CAE had established that the employee or Moov misappropriated trade secrets, it failed to show the use or potential use of trade secrets. View "CAE Integrated v. Moov Technologies" on Justia Law