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

Emergency air medical providers challenged award determinations made under the No Surprises Act (NSA). The NSA, enacted in 2022, protects patients from surprise bills for emergency services from out-of-network providers by creating an Independent Dispute Resolution (IDR) process for billing disputes between providers and insurers. Guardian Flight transported a patient in Nebraska, and a dispute arose with Aetna over the service value. Similarly, Guardian Flight and its affiliates provided emergency services to patients insured by Kaiser, leading to disputes over payment amounts. Both disputes were submitted to Medical Evaluators of Texas (MET) as the IDR entity, which sided with the insurers.The United States District Court for the Southern District of Texas consolidated the cases. The court dismissed Guardian Flight’s claims against Aetna and Kaiser, ruling that the providers failed to plead sufficient facts to trigger vacatur of the awards. However, the court denied MET’s motion to dismiss based on arbitral immunity, leading to MET’s cross-appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the NSA does not provide a general private right of action to challenge IDR awards, incorporating Federal Arbitration Act (FAA) provisions that allow courts to vacate awards only for specific reasons. The court affirmed the district court’s dismissal of the providers’ claims against Aetna and Kaiser, finding that the providers did not allege facts sufficient to show that the awards were procured by fraud or undue means under the FAA.Additionally, the Fifth Circuit addressed MET’s claim of arbitral immunity. The court concluded that MET, functioning as a neutral arbiter in the IDR process, is entitled to the same immunity from suit typically enjoyed by arbitrators. Consequently, the court reversed the district court’s judgment on this point and remanded with instructions to dismiss the providers’ claims against MET. View "Guardian Flight, L.L.C. v. Aetna Health, Inc." on Justia Law

Casey Cotton rear-ended Caleb Crabtree, causing significant injuries. Cotton, insured by Allstate, faced potential liability exceeding his policy limit. Allstate allegedly refused to settle with Crabtree and failed to inform Cotton of the settlement negotiations or his potential liability, giving Cotton a potential bad-faith claim against Allstate. The Crabtrees sued Cotton, who declared bankruptcy. The bankruptcy court allowed the personal-injury action to proceed, resulting in a $4 million judgment for the Crabtrees, making them judgment creditors in the bankruptcy proceeding. Cotton’s bad-faith claim was classified as an asset of the bankruptcy estate. The bankruptcy court allowed the Crabtrees to purchase Cotton’s bad-faith claim for $10,000, which they financed through Court Properties, Inc.The Crabtrees sued Allstate, asserting Cotton’s bad-faith claim. The United States District Court for the Southern District of Mississippi dismissed the action for lack of subject matter jurisdiction, holding that the assignments of Cotton’s claim to Court Properties and then to the Crabtrees were champertous and void under Mississippi law. Consequently, the court found that the Crabtrees lacked Article III standing as they had not suffered any injury from Allstate.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court certified a question to the Supreme Court of Mississippi regarding the validity of the assignments under Mississippi’s champerty statute. The Supreme Court of Mississippi held that the statute prohibits a disinterested third party engaged by a bankruptcy creditor from purchasing a cause of action from a debtor’s estate. Based on this ruling, the Fifth Circuit held that the assignment of Cotton’s claim to Court Properties was void, and thus, the Crabtrees did not possess Cotton’s bad-faith claim. Therefore, the Crabtrees lacked standing to sue Allstate, and the district court’s dismissal was affirmed. View "Crabtree v. Allstate Property" on Justia Law

Two air ambulance providers, Guardian Flight, LLC, and Med-Trans Corporation, sued Health Care Service Corporation (HCSC) for failing to timely pay dispute resolution awards under the No Surprises Act (NSA). The providers also claimed that HCSC improperly denied benefits under the Employee Retirement Income Security Act (ERISA) and was unjustly enriched under Texas law.The United States District Court for the Northern District of Texas dismissed the providers' complaint. The court found that the NSA does not provide a private right of action for enforcing dispute resolution awards. It also dismissed the ERISA claim for lack of standing, as the providers did not show that the beneficiaries suffered any injury since the NSA shields them from liability. Lastly, the court dismissed the quantum meruit claim, stating that the providers did not perform their services for HCSC's benefit. The court also denied the providers' request for leave to amend their complaint, deeming it futile.The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The appellate court agreed that the NSA does not contain a private right of action and that the statute's text and structure support this conclusion. The court also upheld the dismissal of the ERISA claim, reiterating that the beneficiaries did not suffer any concrete injury. Finally, the court affirmed the dismissal of the quantum meruit claim, as the providers did not render services for HCSC's benefit. The appellate court also found no abuse of discretion in the district court's denial of leave to amend the complaint. View "Guardian Flight v. Health Care Service" on Justia Law

In this case, the defendant, Louis Vernon Jackson, was involved in two separate drug busts in Louisiana in April and May 2020. During these busts, law enforcement found significant quantities of drugs, firearms, and drug paraphernalia in motel rooms linked to Jackson. Following these incidents, Jackson was indicted on multiple charges, including conspiracy to distribute methamphetamine, possession with intent to distribute Tramadol, possession of firearms in furtherance of drug trafficking, possession of a firearm by a convicted felon, and possession with intent to distribute methamphetamine.Jackson chose to represent himself throughout the trial process. The magistrate judge conducted a Faretta colloquy to ensure Jackson's waiver of his right to counsel was made knowingly and voluntarily. Despite repeated warnings about the dangers and disadvantages of self-representation, Jackson insisted on proceeding pro se. Before the trial, the district judge conducted another Faretta colloquy to reaffirm Jackson's decision.The jury convicted Jackson on three counts: conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon. He was acquitted on the charges of possession with intent to distribute Tramadol and possession of firearms in furtherance of drug trafficking. Jackson was sentenced to 360 months of imprisonment and subsequently appealed.The United States Court of Appeals for the Fifth Circuit reviewed the case. Jackson argued that the district court erred by not conducting a competency hearing sua sponte to determine his ability to represent himself. The Fifth Circuit found no abuse of discretion by the district court, noting that Jackson had been repeatedly warned about the challenges of self-representation and had demonstrated a rational understanding of the proceedings. The court affirmed the district court's decision, concluding that Jackson was competent to represent himself. View "United States v. Jackson" on Justia Law

In 2008, a class action was filed against officials from the City of Tenaha and Shelby County under 42 U.S.C. § 1983, alleging violations of the Fourth and Fourteenth Amendments. Plaintiffs claimed that the officials had an illegal practice of targeting and seizing property from racial or ethnic minorities. A settlement agreement, including a consent decree, was reached, requiring the defendants to follow specific procedures to prevent future illegal stops. The decree also included a court-appointed monitor to ensure compliance. The consent decree was initially entered in 2013, amended in 2019, and expired in July 2020. Plaintiffs' motion to extend the decree was denied, and the County Defendants settled, leaving only the City Defendants in the case.The United States District Court for the Eastern District of Texas handled the case, where class counsel filed four motions for attorney fees. The first three motions were granted, totaling $324,773.90. The fourth motion requested $88,553.33 for fees from April to December 2020. Initially denied as untimely, the decision was vacated and remanded by the appellate court. On reconsideration, the district court awarded $16,020, reducing the hourly rates and the hours deemed reasonable.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court failed to provide class-wide notice of the attorney-fee motion as required by Federal Rule of Civil Procedure 23(h). This failure deprived class members of the opportunity to object to the fee motion. The appellate court held that the district court abused its discretion by not enforcing the notice requirement and vacated the fee award, remanding the case for further proceedings to ensure compliance with Rule 23(h). View "Morrow v. Jones" on Justia Law

Dow Construction, L.L.C. leased property within a forced pooled drilling unit operated by BPX Operating Company. Dow received proceeds from the unit but disputed the deduction of post-production costs by BPX. Dow sought a judgment to recover these costs, while BPX sought dismissal and summary judgment on various grounds.The United States District Court for the Western District of Louisiana held that Dow had standing to sue and that the Louisiana doctrine of negotiorum gestio allowed operators to recover post-production costs. The court also ruled that the forced-pooling statute’s forfeiture provision included post-production costs and that claims under this statute were subject to a ten-year prescriptive period. BPX's motions to dismiss and for summary judgment were partially granted and denied, leading to an interlocutory appeal.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court’s interpretation that La. Rev. Stat. § 30:10(A)(3) applies to mineral interest owners unleased by the operator. However, it vacated the district court’s ruling that negotiorum gestio allows operators to recover post-production costs, following a Louisiana Supreme Court decision in Self v. BPX Operating Co. The court affirmed that post-production costs are included within the forfeiture provision of La. Rev. Stat. § 30:103.2. Finally, the court reversed the district court’s finding on the prescriptive period, holding that claims under § 30:103.2 are subject to a one-year prescriptive period, not ten years.The case was remanded for further proceedings consistent with these findings. View "Dow Construction v. BPX Operating Co." on Justia Law

Three-month-old La’Mello Parker died during a confrontation between his father, Eric Smith, and law enforcement. Smith, a fugitive wanted for double homicide, used La’Mello as a human shield and fired at officers, who returned fire, killing La’Mello. La’Mello’s grandfather and brother sued various law enforcement entities and officers, alleging constitutional violations under 42 U.S.C. § 1983 and state law claims.The United States District Court for the Southern District of Mississippi dismissed the case, finding that the officers’ actions did not constitute constitutional violations and that they were protected by qualified immunity. The court also dismissed the Fourteenth Amendment claims, stating that the conduct did not shock the conscience, and declined to exercise jurisdiction over the state-law claims.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court’s dismissal, holding that the officers did not violate La’Mello’s Fourth Amendment rights as their use of force was reasonable under the circumstances. The court noted that Smith posed a grave and immediate threat, and the officers’ decision to return fire was justified. The court also found that the officers were entitled to qualified immunity because the law was not clearly established that their conduct was unconstitutional. Additionally, the court held that the Fourteenth Amendment claims failed as the officers’ actions did not shock the conscience. The court concluded that without an underlying constitutional violation, the bystander liability and municipal liability claims also failed. View "Estate of Parker v. Mississippi Department of Public Safety" on Justia Law

Quintan Cockerell, a marketer for two compounding pharmacies, was convicted for receiving illegal kickbacks as part of a conspiracy to induce physicians to prescribe highly lucrative prescriptions. These pharmacies, including Xpress Compounding, focused on formulating expensive topical creams, resulting in significant reimbursements from federal insurers like TRICARE. Cockerell was involved in recruiting physicians, developing new formulas, and receiving commissions disguised as payments to his then-wife. He also provided financial incentives to physicians, including lavish vacations and investment opportunities, to encourage them to prescribe these creams.The United States District Court for the Northern District of Texas convicted Cockerell of violating the Anti-Kickback Statute, conspiracy, and money laundering. He was sentenced to 29 months of imprisonment, two years of supervised release, and ordered to pay $59,879,871 in restitution. Cockerell appealed, challenging the sufficiency of the evidence, alleged misstatements of law by the Government during trial, and the restitution order.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that a reasonable jury could have convicted Cockerell based on the evidence presented. The court held that the Government provided sufficient evidence of Cockerell's involvement in the illegal kickback scheme and his intent to influence physicians. The court also found no reversible error in the Government's statements during closing arguments and upheld the restitution order, noting that Cockerell failed to provide evidence of legitimate services to offset the loss amount. Consequently, the Fifth Circuit affirmed the district court's judgment. View "United States v. Cockerell" on Justia Law

The defendant, Justin Gregory Jubert, was charged with cyberstalking under 18 U.S.C. § 2261A(2)(B) and transmitting a threatening communication in interstate commerce. The charges arose from a prolonged online campaign where Jubert used multiple Facebook accounts to threaten, harass, and intimidate the victim, M.R., his wife, and their two minor daughters. The harassment included posting threats, insults, and personal information, escalating to threats of violence and tracking the daughters' activities. The family took significant security measures in response, including installing cameras and contacting law enforcement.The United States District Court for the Southern District of Mississippi denied Jubert's motion to dismiss the charges, rejecting his facial challenge to the statute but deferring the as-applied challenge. Jubert then pleaded guilty to the cyberstalking charge, reserving his right to appeal the denial of his motion to dismiss. The district court sentenced him to 27 months in prison followed by three years of supervised release. Jubert appealed the denial of his motion to dismiss.The United States Court of Appeals for the Fifth Circuit reviewed the case and addressed two main questions: whether the statute is facially overbroad and whether Jubert's conduct qualifies as a true threat. The court concluded that the statute is not overbroad and that Jubert's conduct constituted true threats, which are not protected by the First Amendment. The court held that 18 U.S.C. § 2261A(2)(B) is constitutional as applied to Jubert and does not violate his right to freedom of speech. Consequently, the Fifth Circuit affirmed the district court's decision. View "United States v. Jubert" on Justia Law

In 2018, Marcus Delars Branson was convicted of bank robbery in Texas and sentenced to thirty-seven months in prison, followed by three years of supervised release. A condition of his release was that he not possess a firearm. In March 2023, a probation officer found two firearms in Branson's apartment, leading to his indictment for possession of a firearm by a felon under 18 U.S.C. § 922(g)(1). Branson moved to dismiss the indictment, arguing that § 922(g)(1) violated the Second Amendment, the Commerce Clause, and the Fifth Amendment's Due Process Clause. The district court denied his motion, and Branson pled guilty, receiving a forty-one-month prison sentence, consecutive to a twenty-four-month revocation sentence, followed by three years of supervised release.The United States District Court for the Southern District of Mississippi denied Branson's motion to dismiss the indictment. Branson then pled guilty and was sentenced to a total of sixty-five months in prison, followed by three years of supervised release. Branson appealed, presenting both preserved and unpreserved constitutional challenges.The United States Court of Appeals for the Fifth Circuit reviewed Branson's appeal. The court affirmed the district court's decision, holding that Branson's facial and as-applied Second Amendment challenges were foreclosed by precedent, specifically United States v. Diaz and United States v. Schnur. The court also rejected Branson's Commerce Clause and Fifth Amendment challenges, citing previous rulings that had addressed similar arguments. Finally, the court found that Branson's void-for-vagueness challenge lacked merit, as § 922(g)(1) clearly defined the prohibited conduct, and Branson had fair notice that his actions were unlawful. The court reviewed the unpreserved challenges for plain error and found none. Thus, the district court's sentence was affirmed. View "USA v. Branson" on Justia Law