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

The case involves First Baptist Church of Iowa, Louisiana (FB Church) and Church Mutual Insurance Company, S.I. (CM Insurance). FB Church sued CM Insurance for failing to pay benefits for property damage caused by Hurricane Laura under an insurance policy. The property included three buildings: the main church, a parsonage, and a vacant building. After the hurricane, FB Church reported the loss to CM Insurance, which then hired a third-party administrator to adjust the loss. The administrator estimated the total loss at $630,000 before deductibles. However, FB Church was dissatisfied with how its claim was being handled and hired a public adjuster, who prepared an estimate of over $1 million in damages. FB Church then sued CM Insurance, alleging claims for additional covered losses and for statutory penalties, costs, and attorney’s fees under Louisiana Revised Statutes § 22:1892.The United States District Court for the Western District of Louisiana found in favor of FB Church, awarding it damages, statutory penalties, attorney’s fees, and costs. CM Insurance appealed the decision to the United States Court of Appeals for the Fifth Circuit.The Fifth Circuit affirmed in part and reversed in part. The court agreed with the district court that CM Insurance failed to adjust the claim and that FB Church was entitled to statutory penalties. However, the court found that the district court erred in calculating damages based on prices in January 2023 instead of at the time of loss, and in awarding any damages for slab repair and damages in excess of $4,500 for the sanctuary’s electrical repair. The case was remanded for recalculation of damages. View "First Baptist Church of Iowa, Louisiana v. Church Mutual Insurance, S.I." on Justia Law

Ascension Data & Analytics, Rocktop Partners, and Rocktop Holdings II (collectively, "Ascension") entered into a contract with Pairprep, Inc. for data extraction services. The contract was terminated due to an alleged data breach and Pairprep's failure to extract reliable data. Ascension then contracted with another vendor, Altada Technologies Solutions, but that contract was also terminated early due to Altada's financial crisis. Ascension initiated arbitration proceedings against Pairprep to recover remediation costs incurred as a result of the data breach. Pairprep counterclaimed, alleging breach of contract and violation of the federal Defend Trade Secrets Act. The arbitration panel rejected Ascension's defenses and granted Pairprep a monetary award.Ascension filed an application in the Northern District of Texas to vacate the arbitration award, arguing that Pairprep's counterclaims were barred by res judicata due to a previous dismissal of identical claims against Altada. Pairprep filed an application to confirm the arbitral award in a Texas state court, which was granted. The district court dismissed Ascension's application for lack of subject matter jurisdiction and denied its motion for preliminary injunctive relief.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court applied the Supreme Court's decision in Badgerow v. Walters, which held that a district court must have an independent jurisdictional basis to consider applications to confirm, modify, or vacate arbitral awards under the Federal Arbitration Act. The court found that Ascension had not established an independent basis for subject matter jurisdiction, as the parties were not diverse and Ascension did not identify any federal law entitling it to relief. Therefore, the court concluded that the dispute over the enforceability of the arbitral award must be litigated in state court. View "Ascension Data v. Pairprep" on Justia Law

The case involves the American Rescue Plan Act (ARPA), which allocated nearly $200 billion to states and the District of Columbia to assist with economic recovery following the COVID-19 pandemic. However, to accept the funds, states had to agree not to use them to "directly or indirectly offset" reductions in state tax revenue. The states of Texas, Louisiana, and Mississippi filed a lawsuit seeking to enjoin the enforcement of this provision, arguing that it was unconstitutionally ambiguous and violated the Spending Clause and the anticommandeering doctrine.The district court granted summary judgment in favor of the states, finding that the provision was unduly coercive and commandeered the states. It held that the amount of money at stake was too great to present the states with a real choice and that the provision unlawfully forced the states to adopt certain tax policies. The court permanently enjoined the enforcement of the provision, and the federal defendants appealed.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court found that the provision was impermissibly ambiguous and fell short of Congress's constitutional obligation to clearly outline the conditions for states accepting federal funding. The court held that the provision violated the Spending Clause's requirement for clarity, as it left states unable to determine the terms of the deal they were agreeing to. The court also affirmed the district court's grant of a permanent injunction against the enforcement of the provision. View "State of Texas v. Yellen" on Justia Law

The case involves Thomas John Boukamp, a 19-year-old Michigan State University student, who was found guilty on sixteen counts related to a sexual relationship with a 13-year-old girl, identified as M. The relationship began online and became physical when Boukamp picked up M. from her middle school in Texas and drove her to his house in Michigan. The government described Boukamp as a dangerous sexual predator who psychologically and emotionally tortured M., while Boukamp portrayed the relationship as a mutual bond between two emotionally immature individuals.The case was tried in the United States District Court for the Northern District of Texas, where Boukamp represented himself. He was found guilty and sentenced to life in prison. Boukamp appealed his conviction and sentence to the United States Court of Appeals for the Fifth Circuit, raising nine issues, including the lower court's finding of his competency to stand trial, the court's comments on his decision not to testify, the reasonableness of his life sentence, and the court's denial of his motion to continue the trial date.The Fifth Circuit affirmed the lower court's decisions. It found no error in the lower court's determination of Boukamp's competency to stand trial, its comments on his decision not to testify, or its denial of his motion to continue the trial date. The court also found that Boukamp's life sentence was not substantively unreasonable given the severity of his crimes. The court rejected Boukamp's other arguments, including his claim that the lower court erred in its jury instructions and its limitation on his ability to cross-examine witnesses. View "U.S. v. Boukamp" on Justia Law

Three individuals and the State of Texas filed a lawsuit seeking to enjoin federal statutes that criminalize the creation of silencers for personal use without paying a $200 excise tax, applying for permission from the federal government, and, if permission is granted, registering the silencer in a federal database and labeling the silencer with a serial number. The plaintiffs argued that these federal regulations violated their Second Amendment rights. In 2021, Texas had enacted a law stating that a firearm suppressor manufactured in Texas and remaining in Texas is not subject to federal law or regulation.The United States District Court for the Northern District of Texas granted summary judgment in favor of the federal government, holding that the plaintiffs lacked standing to bring their claims. The court did not address the merits of the plaintiffs' Second Amendment claims.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court found that the individual plaintiffs failed to demonstrate an injury in fact, a requirement for standing, because they did not express a serious intention to engage in conduct proscribed by law. The court also found that Texas did not have standing to bring the lawsuit. The state's claim that it had a quasi-sovereign interest in its citizens' health and well-being was found to be wholly derivative of the personal Second Amendment interests of its citizens. Furthermore, the court found that Texas's claim that it had a sovereign interest in the power to create and enforce a legal code was not implicated in this case. The court concluded that the plaintiffs lacked standing to challenge the federal statutes. View "Paxton v. Dettelbach" on Justia Law

The case involves a trademark dispute between two appliance companies, Appliance Liquidation Outlet, L.L.C. (ALO) and Axis Supply Corporation (Axis). ALO had been operating under its name for over two decades when Axis opened a store in 2021, using a large banner with the words “Appliance Liquidation.” ALO claimed that this led to confusion among customers who believed ALO operated both stores. When Axis refused to change its name, ALO sued for trademark infringement.The district court found that ALO had valid trademarks in the words “Appliance Liquidation Outlet” and “Appliance Liquidation,” and that Axis’s banner infringed those marks. The court ruled in favor of ALO, prohibiting Axis from using ALO’s marks or causing confusion with ALO’s brand, and awarded ALO attorney’s fees.Axis appealed, arguing that the marks were not valid, its banner did not infringe those marks, and the district court erred in awarding ALO attorney’s fees. The United States Court of Appeals for the Fifth Circuit agreed in part, finding that the district court erred in ruling that “Appliance Liquidation” is a valid trademark, but did not err in finding that “Appliance Liquidation Outlet” is a valid mark that Axis’s banner infringed. The court reversed the judgment as to the “Appliance Liquidation” mark, affirmed as to the “Appliance Liquidation Outlet” mark, and vacated the fee award. View "Appliance v. Axis Supply" on Justia Law

A group of individuals and businesses challenged the Affordable Care Act's requirement for private insurers to cover certain types of preventive care, including contraception, HPV vaccines, and drugs preventing HIV transmission. The plaintiffs argued that the mandates were unlawful because the agencies issuing them violated Article II of the Constitution, as their members were principal officers of the United States who had not been validly appointed under the Appointments Clause. The district court mostly agreed, vacating all agency actions taken to enforce the mandates and issuing both party-specific and universal injunctive relief.The United States Court of Appeals for the Fifth Circuit agreed that the United States Preventive Services Task Force, one of the challenged administrative bodies, was composed of principal officers who had not been validly appointed. However, the court found that the district court erred in vacating all agency actions taken to enforce the preventive-care mandates and in universally enjoining the defendants from enforcing them. The court also held that the Secretary of the Department of Health and Human Services had not validly cured the Task Force’s constitutional problems.The court affirmed in part, reversed in part, and remanded the case for further proceedings. The court did not rule on the plaintiffs' challenges against the other two administrative bodies involved in the case, the Advisory Committee on Immunization Practices and the Health Resources and Services Administration, reserving judgment on whether the Secretary had effectively ratified their recommendations and guidelines. View "Braidwood Mgmt v. Becerra" on Justia Law

The case involves Jennifer Sugg, a student who was dismissed from her Certified Registered Nurse Anesthesiology (CRNA) program at Midwestern University after failing several required courses. Sugg sued Midwestern University and EmergencHealth (EH), alleging breach of contract and fraud. The United States District Court for the Southern District of Texas granted summary judgment in favor of the defendants on all causes of action, and Sugg appealed.Sugg enrolled in Midwestern's CRNA program in 2016. She failed a course in her first semester and was placed on academic leave. After retaking the course and receiving a passing grade, she was placed on academic probation due to her low GPA. Sugg later failed her first clinical rotation course and was dismissed from the program. She appealed the decision, and the dismissal was overturned so she could retake the course. However, after failing another course, she was dismissed again. Sugg appealed this decision as well, but it was upheld by the university's Promotion and Graduation Committee and the Dean of the College of Health Sciences.The United States Court of Appeals for the Fifth Circuit affirmed the lower court's decision. The court found that Midwestern University did not breach the contract as it followed its guidelines and dismissed Sugg based on her academic performance. The court also found that Sugg failed to show that the university's decision was a substantial departure from accepted academic norms. Regarding the claims against EH, the court found that EH did not interfere with Sugg's contract with Midwestern University and did not make any false or misleading statements. Therefore, the court affirmed the summary judgment in favor of the defendants. View "Sugg v. Midwestern University" on Justia Law

Randal Hall filed a civil rights case against Officer Travis Trochesset and the City of League City, Texas, alleging constitutional violations following his arrest for interference with a police investigation. The incident began when Hall's wife was involved in a minor car accident. The other driver reported the incident as a hit-and-run, leading to an investigation by Officer Trochesset. When Trochesset arrived at the Halls' home to gather information, Hall, who was not present, instructed his wife over the phone not to provide the requested information to Trochesset. As a result, Trochesset obtained an arrest warrant for Hall for interfering with public duties.The United States District Court for the Southern District of Texas dismissed Hall's suit, ruling in favor of Trochesset and the City of League City. Hall appealed the decision.The United States Court of Appeals for the Fifth Circuit affirmed the lower court's decision. The court found that probable cause existed for Hall's arrest, as Hall had interfered with Trochesset's investigation. The court also applied the independent intermediary doctrine, which states that an officer who presents all relevant facts to an impartial intermediary (in this case, a justice of the peace) is not liable if the intermediary's independent decision leads to an arrest. The court found that Trochesset had not withheld any relevant information from the justice of the peace. Furthermore, the court ruled that Hall failed to establish that Trochesset violated the Fourth or Fourteenth Amendments. The court also dismissed Hall's claim against the City of League City, as there was no constitutional violation by Trochesset, and Hall failed to identify an official policy or custom that led to the alleged violation. The court rejected Hall's argument to discontinue the application of the qualified immunity doctrine, stating that it is bound by the Fifth Circuit rule of orderliness to follow established precedent. View "Hall v. Trochessett" on Justia Law

Three Black citizens of Caddo Parish, Louisiana, Darryl Carter, Diane Johnson, and Theresa Hawthorne, were struck from jury duty during voir dire in 2015. They alleged that their removal violated the Fourteenth Amendment's Equal Protection Clause, claiming that the Caddo Parish prosecutors peremptorily struck them based on their race. The plaintiffs joined an ongoing litigation challenging the Caddo District Attorney's alleged custom of racially biased peremptory strikes. They sued District Attorney James E. Stewart, in his official capacity, under 42 U.S.C. § 1983.The district court dismissed all plaintiffs except Carter, Johnson, and Hawthorne. The District Attorney then moved for summary judgment, which the district court granted. The plaintiffs appealed this decision, leading to a de novo review by the United States Court of Appeals for the Fifth Circuit.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court found that the plaintiffs could not establish a predicate constitutional violation, which is necessary for a Monell claim. The prosecutors had provided race-neutral explanations for each plaintiff's dismissal. For Carter, the prosecutor noted his expressed bias against evidence from Shreveport. For Johnson, the prosecutor highlighted her potential bias against the police department due to a family member's felony conviction. For Hawthorne, the prosecutor found her colloquies with defense counsel problematic due to her preconceived notions about firearm possession. The court found these explanations sufficient and not merely pretexts for race-based dismissals. The court also noted that the plaintiffs' statistical evidence did not prove discriminatory motive. Without an underlying Equal Protection claim, the plaintiffs' Monell claim failed. View "Pipkins v. Stewart" on Justia Law