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

Joseph Boswell, Sr. was convicted by a jury of bankruptcy fraud and tax evasion. Boswell operated a business servicing pizza ovens and stopped reporting income and paying taxes around 1995. He filed for bankruptcy in 2011, claiming significant back taxes owed. The government alleged that Boswell used various corporate entities, nominally owned by family members, to conceal assets from the IRS and creditors. During his bankruptcy, Boswell reported minimal assets and income, despite evidence suggesting he controlled significant funds through these entities.The United States District Court for the Western District of Louisiana oversaw the initial trial. Boswell moved to dismiss the bankruptcy fraud charge, arguing it was untimely and that the indictment was improperly sealed. The district court denied this motion, finding the government had a legitimate reason for sealing the indictment. Boswell also requested a bill of particulars, which the court denied, and he was ultimately convicted on both counts. The district court sentenced him to sixty months in prison and ordered restitution to the IRS.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the government failed to demonstrate a legitimate prosecutorial purpose for sealing the indictment, which meant the statute of limitations was not tolled, rendering the bankruptcy fraud charge untimely. Consequently, the court reversed Boswell's conviction on the bankruptcy fraud charge. However, the court affirmed the tax evasion conviction, finding sufficient evidence to support the jury's verdict. The court also upheld the district court's jurisdiction to impose restitution while the appeal was pending and found no cumulative errors warranting a new trial for the tax evasion charge. View "USA v. Boswell" on Justia Law

The plaintiffs, five Muslim U.S. citizens, allege they have been placed on the Terrorist Screening Dataset, commonly known as the "terrorist watchlist." This list includes the No-Fly List, which prevents individuals from boarding flights, and the Selectee List, which subjects individuals to enhanced security screening. Four plaintiffs claim they are on the Selectee List due to repeated enhanced screenings, while one plaintiff, Adis Kovac, claims he is on both the No-Fly List and the Selectee List. Each plaintiff sought redress through the Department of Homeland Security’s Traveler Redress Inquiry Program (TRIP), but only Kovac received confirmation of his No-Fly List status.The plaintiffs filed a lawsuit in the U.S. District Court for the Northern District of Texas against various federal agency heads, alleging violations of their constitutional rights and unlawful agency action under the Administrative Procedure Act (APA). The district court dismissed several claims, including due process and equal protection claims, and later dismissed Kovac’s No-Fly List claims as moot after he was removed from the list. The remaining APA claims were addressed at summary judgment, where the district court ruled that the agencies had statutory authority to maintain the watchlist and that the TRIP procedures were not arbitrary and capricious.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court affirmed the district court’s decision, holding that the relevant federal agencies have clear statutory authority to create, maintain, and use the watchlist for screening airline passengers. The court found that the statutory framework, including the Aviation and Transportation Security Act, the Homeland Security Act, and subsequent legislation, provided unambiguous authority for the watchlist. The court did not address whether the major questions doctrine applied, as the statutory authority was clear. The court also concluded that the plaintiffs lacked standing to challenge the watchlist’s use in contexts unrelated to airport security. View "Kovac v. Wray" on Justia Law

In July 2020, Taylor Hildreth was a passenger in a car stopped by police at known narcotics locations. The driver consented to a search, and Hildreth admitted to having drugs in his pant leg, which led to the discovery of methamphetamine, Xanax, and drug paraphernalia. A loaded firearm was found in the glove compartment, which Hildreth admitted was his, knowing he was barred from possessing it due to a prior felony conviction. Hildreth was indicted for being a felon in possession of a firearm and released on pretrial supervision. He was later arrested for assaulting his father, violating his pretrial conditions, and was ordered to in-patient drug treatment, which he completed after an initial discharge for policy violations.The United States District Court for the Southern District of Texas reviewed the case. Hildreth pleaded guilty to the firearm possession charge. The presentence investigation report (PSR) calculated a total offense level of eighteen and a criminal history category IV, resulting in a Guidelines range of forty-one to fifty-one months. The PSR recommended no adjustment for acceptance of responsibility due to Hildreth's continued criminal conduct. The district court denied the adjustment and imposed an upward departure, sentencing Hildreth to eighty months' imprisonment followed by three years of supervised release.The United States Court of Appeals for the Fifth Circuit reviewed the case. Hildreth raised four challenges: the inclusion of a prior misdemeanor in his criminal history, the denial of an acceptance of responsibility adjustment, the upward departure in sentencing, and the constitutionality of 18 U.S.C. § 922(g)(1). The court found no clear or obvious error in including the misdemeanor, upheld the denial of the adjustment based on continued criminal conduct, found no abuse of discretion in the upward departure, and rejected the constitutional challenge based on existing precedent. The Fifth Circuit affirmed Hildreth's sentence and conviction. View "U.S. v. Hildreth" on Justia Law

David Devaney, Jr. was convicted of participating in a drug trafficking conspiracy. He provided security for a drug deal orchestrated by his father, which went wrong when the buyers refused to go to a hotel room. This led to a car chase where David and his co-conspirators shot at the buyers, injuring one and killing a bystander. David was later identified by one of the buyers and arrested after a high-speed chase. In his post-arrest interview, he admitted to his role in the drug deal but denied firing a gun. Searches of his car and cell phones revealed drugs and incriminating messages.The United States District Court for the Northern District of Texas denied David’s motions to suppress evidence from his car and cell phones, as well as his post-arrest statements. The court found him guilty of conspiracy to possess methamphetamine with intent to distribute and sentenced him to 480 months in prison. David appealed, challenging the suppression rulings and the calculation of his offense level under the Sentencing Guidelines.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court upheld the district court’s denial of the suppression motions, finding that the search warrants were supported by probable cause and that David did not unequivocally invoke his right to counsel during his post-arrest interview. The court also affirmed the district court’s application of the Sentencing Guidelines, including the cross-reference to the murder guideline, which set David’s offense level at 43. The court concluded that any other potential errors in the sentencing calculation were harmless, as the cross-reference dictated the offense level. The Fifth Circuit affirmed the district court’s judgment. View "USA v. Devaney" on Justia Law

A group of plaintiffs, including several states and corporations, challenged a Department of Labor rule that allowed ERISA fiduciaries to consider environmental, social, and governance (ESG) factors when making investment decisions if those factors equally serve the financial interests of the plan. This rule was issued following an executive order by President Biden, which counteracted a previous Trump-era rule that prohibited considering non-pecuniary factors in investment decisions.The United States District Court for the Northern District of Texas upheld the Department of Labor's rule, relying on the Chevron deference doctrine, which allows courts to defer to a federal agency's interpretation of ambiguous statutory language. The district court concluded that the rule was not "manifestly contrary to the statute" after affording the Department the deference due under Chevron.The United States Court of Appeals for the Fifth Circuit reviewed the case. During the appeal, the Supreme Court decided Loper Bright Enterprises v. Raimondo, which overruled Chevron, thus eliminating the deference previously given to agency interpretations. Given this significant change in the legal landscape, the Fifth Circuit vacated the district court's judgment and remanded the case for reconsideration in light of the new Supreme Court decision. The appellate court emphasized the importance of allowing the district court to reassess the merits without the Chevron framework, ensuring that the lower court's independent judgment is applied to the statutory interpretation of ERISA. View "State of Utah v. Su" on Justia Law

Marek Matthews, a seaman and captain, filed a lawsuit against Tidewater, Inc. and Tidewater Crewing, Ltd., alleging that he was exposed to toxic chemicals during his employment, resulting in severe health issues including end-stage renal failure and stage IV cancer. Matthews, a Florida resident, claimed that the exposure occurred while working on offshore supply vessels in the Red Sea. His employment contract included a forum-selection clause mandating that any disputes be litigated in the High Court of Justice in London, England.Initially, Matthews and other plaintiffs filed the suit in Louisiana state court, asserting claims under the Jones Act and general maritime law. Tidewater removed the case to the United States District Court for the Eastern District of Louisiana and moved to dismiss it based on the forum-selection clause and, alternatively, for failure to state a claim. The district court granted the motion to dismiss on forum non conveniens grounds, finding the forum-selection clause valid and enforceable. Matthews's subsequent motion to reconsider the dismissal was denied.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court's decision, holding that the forum-selection clause was enforceable. The court applied a de novo review to the enforceability of the clause and an abuse of discretion standard to the forum non conveniens analysis. It concluded that Matthews did not meet the heavy burden of proving the clause was unreasonable under the circumstances, despite his health conditions and Louisiana's public policy against such clauses. The court emphasized the federal policy favoring the enforcement of forum-selection clauses in maritime contracts, which outweighed the conflicting state policy. View "Matthews v. Tidewater" on Justia Law

The case involves two nonprofit organizations, the National Federation of the Blind of Texas and Arms of Hope, which use donation boxes to collect items for fundraising. The City of Arlington, Texas, enacted an ordinance regulating the placement and maintenance of these donation boxes, including zoning restrictions and setback requirements. The nonprofits challenged the ordinance, claiming it violated the First Amendment by restricting their ability to place donation boxes in certain areas of the city.The United States District Court for the Northern District of Texas reviewed the case. The court granted summary judgment in favor of Arlington on several counts, including the constitutionality of the setback requirement and the ordinance not being overbroad or a prior restraint. However, the court ruled in favor of the nonprofits on the zoning provision, finding it was not narrowly tailored and thus violated the First Amendment. The court enjoined Arlington from enforcing the zoning provision against the nonprofits.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the ordinance was content-neutral and subject to intermediate scrutiny. It found that the zoning provision, which limited donation boxes to three of the city's 28 zoning districts, was narrowly tailored to serve Arlington's significant interests in public health, safety, welfare, and community aesthetics. The court also upheld the setback requirement, finding it did not burden more speech than necessary and left ample alternative channels of communication. The court concluded that the ordinance's permitting provisions did not constitute an unconstitutional prior restraint.The Fifth Circuit vacated the district court's judgment regarding the zoning provision and rendered judgment in favor of Arlington on that part. The rest of the district court's judgment was affirmed. View "National Federation of the Blind of Texas, Incorporated v. City of Arlington" on Justia Law

The case involves the estate of Bud Conyers seeking a relator’s share of the proceeds from a settlement between the United States and military contractor Kellogg Brown & Root (KBR) under the False Claims Act (FCA). Conyers, a former KBR truck driver, had filed a qui tam suit alleging various fraudulent activities by KBR, including the use of mortuary trailers for supplies, kickbacks for defective trucks, and billing for prostitutes. The government later intervened in Conyers’s suit but pursued different claims involving KBR employees Mazon, Seamans, and Martin, who were involved in separate kickback schemes.The United States District Court for the Southern District of Texas awarded Conyers’s estate approximately $1.1 million, finding a “factual overlap” between Conyers’s allegations and the settled claims, particularly with Martin’s kickback scheme involving trucks. The court reasoned that Conyers’s allegations had put the government on notice of fraud in trucking contracts, which arguably led to the investigation of Martin. The district court also ordered the government to pay Conyers’s attorney’s fees.The United States Court of Appeals for the Fifth Circuit reviewed the case and reversed the district court’s decision. The appellate court held that under the FCA, a relator is entitled to a share only of the settlement of the claim he brought, not additional claims added by the government. The court found no relevant factual overlap between Conyers’s claims and the settled claims involving Mazon, Seamans, and Martin. The court also rejected the district court’s reasoning that Conyers’s allegations spurred the investigation into Martin’s misconduct, noting that the FCA does not entitle a relator to recover from new claims discovered by the government. Consequently, the Fifth Circuit concluded that Conyers’s estate was not entitled to any share of the settlement proceeds and reversed the award of attorney’s fees. View "USA v. Conyers" on Justia Law

Dean Dabbasi was terminated by his employer, Motiva Enterprises, in 2019. Dabbasi filed a lawsuit alleging age discrimination under the Age Discrimination in Employment Act (ADEA) and the Texas Commission on Human Rights Act (TCHRA), as well as disability discrimination under the Americans with Disabilities Act (ADA) and the TCHRA. He claimed that his termination was due to his age and a cardiac incident he experienced during a performance improvement plan (PIP) meeting. Motiva argued that Dabbasi was terminated for poor performance and attitude.The United States District Court for the Southern District of Texas granted summary judgment in favor of Motiva. The court found that Dabbasi's claims related to his transition to a different role and the failure to place him in a promised position were time-barred or not actionable. The court also held that Dabbasi failed to establish a prima facie case of age discrimination because he was not replaced by someone younger in his final position. Additionally, the court concluded that Dabbasi was not disabled at the time of his termination, as he returned to work without restrictions after his medical leave.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in evaluating Dabbasi's age-discrimination claim in isolation rather than considering the totality of the evidence. The appellate court determined that there was sufficient circumstantial evidence to create a genuine dispute of material fact regarding whether Dabbasi was terminated because of his age. However, the court agreed with the district court that Dabbasi failed to establish a prima facie case of disability discrimination, as he was not disabled at the time of his termination.The Fifth Circuit affirmed the dismissal of Dabbasi's disability-discrimination claim but reversed the summary judgment on his age-discrimination claim, remanding it for further proceedings. View "Dabbasi v. Motiva Enterprises" on Justia Law

Caris MPI, Inc. (Caris) provided cancer diagnostic services to UnitedHealthcare, Inc. (United) for over ten years without a written contract. United audited Caris’s past claims and determined that Caris had used incorrect billing codes, resulting in overpayments. United began recouping these overpayments by offsetting them against new payment claims from Caris. Caris challenged United’s recoupment through United’s internal process, but after United rejected Caris’s appeals, Caris filed suit in Texas state court alleging various state law claims.United removed the case to the United States District Court for the Northern District of Texas, asserting federal officer jurisdiction under 28 U.S.C. § 1442(a)(1). The district court denied Caris’s motion to remand and dismissed Caris’s claims without prejudice, finding that Caris failed to exhaust administrative remedies under the Medicare Act.The United States Court of Appeals for the Fifth Circuit reviewed the case and agreed that federal officer jurisdiction existed. However, the court found that the district court erred in dismissing Caris’s claims for failure to exhaust administrative remedies. The Fifth Circuit held that the administrative review process under Medicare Part C does not extend to claims where an enrollee has no interest, and there were no administrative remedies for Caris to exhaust. The court distinguished this case from others by noting that no enrollee had requested an organization determination or appeal, and all enrollees had already received the services for which United sought recoupment. Consequently, the court affirmed the denial of the remand motion, reversed the dismissal of Caris’s claims, and remanded the case for further proceedings. View "Caris MPI v. UnitedHealthcare, Incorporated" on Justia Law