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

A group of healthcare and air-ambulance providers challenged certain agency rules regarding the No Surprises Act, which aims to protect patients from unexpected medical bills. The key issues involved the calculation of the "qualifying payment amount" (QPA), deadlines for insurers to respond to provider bills, and disclosure requirements for insurers.The United States District Court for the Eastern District of Texas reviewed the case and held several provisions of the rules unlawful, vacating them. The court found that the rules conflicted with the Act's terms and were arbitrary and capricious. The defendant agencies appealed the decision regarding certain provisions, while the plaintiffs cross-appealed the court's upholding of the disclosure requirements.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court reversed the district court's vacatur of the QPA calculation provisions, holding that the rules did not conflict with the Act and were not arbitrary and capricious. The court affirmed the district court's vacatur of the deadline provision, agreeing that it conflicted with the Act's unambiguous terms. The court also affirmed the district court's decision upholding the disclosure requirements, finding them reasonable and adequately explained.In summary, the Fifth Circuit reversed the district court's decision on the QPA calculation provisions, affirmed the vacatur of the deadline provision, and upheld the disclosure requirements. The court concluded that the proper remedy for the unlawful deadline provision was vacatur, not remand, and rejected the idea of party-specific vacatur. View "Texas Medical Association v. Health and Human Services" on Justia Law

A union representing over 9,000 pilots employed by an airline alleged that the airline violated the Railway Labor Act (RLA) by intimidating and disciplining pilots who affiliated with the union. The union claimed that the airline had a history of isolating a special category of pilots known as "check pilots" and "standards check pilots," who are responsible for training and evaluating other pilots. The union alleged that the airline unilaterally established working conditions for check pilots without bargaining and that check pilots were threatened with losing their qualifications if they affiliated with the union. The union also claimed that the airline retaliated against a pilot, Captain Timothy Roebling, by stripping him of his check-pilot qualifications after he joined a union committee.The United States District Court for the Northern District of Texas dismissed the union's complaint, concluding that the dispute was subject to arbitration under the RLA and that no exception applied to vest the court with jurisdiction. The district court found that the airline had an arguable basis for its actions under the collective bargaining agreement, making the dispute a "minor" one subject to arbitration.The United States Court of Appeals for the Fifth Circuit reviewed the case and concluded that the union had sufficiently pleaded the anti-union animus exception to the RLA's arbitration requirement. The court found that the union's allegations, including threats and retaliatory actions against check pilots, supported the claim that the airline's actions were intended to weaken or destroy the union. The court reversed the district court's dismissal and remanded the case for further proceedings, holding that the union's complaint sufficiently alleged anti-union animus to warrant judicial intervention. View "Southwest Airlines Pilots Assn v. Southwest Airlines" on Justia Law

Memorial Hermann Accountable Care Organization (MHACO), a nonprofit corporation formed under Texas law in 2012, participated in the Medicare Shared Savings Program (MSSP) as an accountable care organization (ACO). ACOs are groups of healthcare providers that manage and coordinate care for Medicare beneficiaries, potentially sharing in cost savings achieved for the Medicare program. MHACO's patient population includes those covered by MSSP, Medicare Advantage Plans, and employer-sponsored health plans, but it does not provide services for uninsured individuals. The proportion of MHACO’s revenue from MSSP activities varies annually.The Internal Revenue Service (IRS) issued a proposed adverse determination letter, concluding that MHACO did not qualify for a tax exemption under I.R.C. § 501(c)(4). The IRS Independent Office of Appeals upheld this determination, stating that MHACO was not organized and operated for promoting social welfare and providing community benefit. MHACO petitioned the United States Tax Court for a declaratory judgment, which upheld the IRS’s determination, finding that MHACO’s non-MSSP activities primarily benefited its commercial payor and healthcare provider participants rather than the public. MHACO’s motions to vacate or revise the judgment were denied, leading to this appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the tax court’s judgment, holding that MHACO did not qualify for a § 501(c)(4) tax exemption. The court applied the "substantial nonexempt purpose" test, consistent with the Supreme Court's interpretation in Better Business Bureau of Washington, D.C. v. United States, and found that MHACO’s commercial activities constituted a substantial nonexempt purpose. The court concluded that MHACO’s operations did not exclusively promote social welfare, as required by § 501(c)(4). View "Memorial Hermann Accountable Care Organization v. CIR" on Justia Law

A police officer, David Stanley, was suspended and transferred by the Lafayette Police Department (LPD) following an investigation into his Facebook posts. Stanley took sick leave for about a year and appealed his suspension to the Municipal Fire and Police Civil Service Board. He also filed two petitions in state court seeking to enjoin the suspension and transfer. The state district court granted a temporary restraining order (TRO), but the state appellate court dismissed LPD’s appeal of the TRO. Stanley re-filed his petition, but the state district court found he needed to finalize his appeal with the Civil Service Board first. The Civil Service Board later reduced his suspension but upheld his transfer.Stanley then filed a lawsuit in federal district court under 42 U.S.C. § 1983, alleging First Amendment violations and retaliation. The district court dismissed his claims as time-barred, determining that the one-year prescriptive period began when Stanley was notified of his suspension on June 11, 2021. The court also concluded that Stanley’s state court petitions did not interrupt the prescription period because they did not assert federal claims or seek monetary damages.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that Stanley’s § 1983 claims accrued when he received notice of the adverse actions, not when the administrative appeal concluded. The court also found that Stanley’s state court petitions did not interrupt the prescription period because they did not provide adequate notice of his federal claims or demand monetary damages. Consequently, the Fifth Circuit affirmed the district court’s dismissal of Stanley’s claims as prescribed. View "Stanley v. Morgan" on Justia Law

The case involves a challenge to a Mississippi statute that allows absentee ballots to be received up to five days after the federal Election Day. The plaintiffs, including the Republican National Committee and the Mississippi Republican Party, argued that this state law conflicts with federal statutes that establish a uniform Election Day for federal elections. The plaintiffs sought to enjoin state officials from enforcing the post-election ballot deadline.The United States District Court for the Southern District of Mississippi consolidated two lawsuits and granted summary judgment in favor of the defendants, which included various state election officials. The district court held that Mississippi's statute did not conflict with federal law and thus was not preempted. The plaintiffs appealed the decision.The United States Court of Appeals for the Fifth Circuit reviewed the case and reversed the district court's judgment. The Fifth Circuit held that the federal Election Day statutes preempt Mississippi's law because federal law mandates that all ballots must be received by Election Day. The court emphasized that the term "election" includes both the casting and receipt of ballots, and that the election is not consummated until all ballots are received. The court also noted that historical practices and other federal statutes support this interpretation. The case was remanded for further proceedings to determine appropriate relief, considering the proximity to upcoming elections. The court also vacated the district court's summary judgment on the plaintiffs' § 1983 claims and remanded for reconsideration. View "Republican National Committee v. Wetzel" on Justia Law

Alex Francois, a Haitian national, left Haiti in 1979 to reunite with his U.S. citizen father. He has lived in New York City, raised six U.S. citizen children, and suffers from severe mental illnesses, including schizophrenia and bipolar disorder. Francois has been hospitalized multiple times for his mental health and has had several encounters with law enforcement, often related to his mental illness. In 2017, he was arrested for trespassing in Texas, found incompetent to stand trial, and subsequently transferred to U.S. Immigration and Customs Enforcement custody. The Department of Homeland Security charged him with removability under 8 U.S.C. § 1182(a)(6)(A)(i).The Immigration Judge (IJ) initially granted Francois withholding of removal, finding that he would likely be persecuted in Haiti due to his mental illness. The IJ based this decision on expert testimony and country conditions evidence, which highlighted the dire conditions and violent treatment of mentally ill individuals in Haitian prisons. The government appealed, and the Board of Immigration Appeals (BIA) remanded the case for further factfinding, questioning whether Francois would be singled out for persecution and whether there was a pattern of persecution against similarly situated individuals.The IJ, on remand, reversed the initial decision, denying Francois's claims for withholding of removal and protection under the Convention Against Torture (CAT). The IJ found that Francois had not proven he would be targeted for persecution in Haiti based on his mental illness. The BIA affirmed this decision, finding no clear error in the IJ's findings. Francois then filed a petition for review with the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit held that the BIA deprived Francois of due process by violating its own regulations, specifically by remanding for further factfinding instead of reviewing the IJ's initial findings for clear error. The court granted Francois's petitions for review, vacated the BIA's orders, and remanded the case for the BIA to review the IJ's initial order under the proper standards of review. View "Francois v. Garland" on Justia Law

In November 2023, X Corp. filed a lawsuit against Media Matters, Inc., Eric Hananoki, and Angelo Carusone, alleging interference with X Corp.'s contracts, business disparagement, and interference with prospective economic advantage. X Corp. claimed that Media Matters manipulated images to portray X Corp. as a platform dominated by neo-Nazism and anti-Semitism, which alienated advertisers, publishers, and users. During discovery, X Corp. requested Media Matters to produce documents identifying its donors and communications with them. Media Matters resisted, citing First Amendment concerns.The United States District Court for the Northern District of Texas initially ordered Media Matters to log documents responsive to X Corp.'s requests as privileged. However, Media Matters did not comply, arguing that the requests overlapped with other discovery requests. The district court then granted X Corp.'s motion to compel production, ruling that Media Matters had waived any First Amendment privilege by not searching for or logging the documents. Media Matters appealed the order and sought a stay pending appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that it had jurisdiction under the collateral order doctrine, as the discovery order involved important First Amendment issues that were separate from the merits of the case and would be effectively unreviewable on appeal. The court determined that Media Matters was likely to succeed on the merits of its appeal because the discovery requests were not proportional to the needs of the case and posed a significant burden on Media Matters and its donors. Consequently, the court granted Media Matters's motion for a stay pending appeal, staying the district court's order compelling production. View "X Corp v. Media Matters" on Justia Law

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