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

A writ of mandamus is reserved for extraordinary circumstances. TikTok, Incorporated, and various related entities contend that the district court’s denial of their motion to transfer to the Northern District of California was so patently erroneous that this rare form of relief is warranted. The district court denied Petitioners’ motion to transfer after finding that five of the eight factors were neutral, and three weighed against transferring to California.The Fifth Circuit granted the petition for writ of mandamus, finding that denying Petitioners’ motion to transfer was a clear abuse of discretion. The court explained that in the district court’s view, Petitioners’ large presence in the Western District of Texas raises an “extremely plausible and reasonable inference” that these employees possess some relevant documents. But the district court cannot rely on the mere fact that Petitioners have a general presence in the Western District of Texas because Volkswagen commands courts to assess its eight factors considering the circumstances of the specific case at issue. Further, the court explained that under Volkswagen’s 100-mile threshold, the Northern District of California is a clearly more convenient venue for most relevant witnesses in this case. The district court committed a clear abuse of discretion in concluding otherwise. View "In Re: TikTok, Inc." on Justia Law

Antero Resources, Corp., an oil and gas production company, sued a former employee (“Appellant”)  for breach of fiduciary duty, alleging that Appellant abused his position of operations supervisor to award service contracts to companies owned by his close friend Tommy Robertson. Antero also alleged that, after winning the contracts, Robertson’s companies deliberately delayed providing “drillout” operations, resulting in millions of dollars of overbilling. A jury found Appellant liable in the amount of $11,897,689.39, which consists of $11,112,140.00 in damages and $775,549.39 as recoupment for the value Appellant received as a result of the breach. The district court entered a final judgment in the same amount, along with post-judgment interest. The district court ordered Appellant to pay pre-judgment interest and to forfeit 130,170 shares of stock in Antero Midstream. Appellant challenged the judgment on two bases.   The Fifth Circuit concluded that sufficient evidence supported the jury’s finding on damages. The court further held that the district court’s decision to deny Appellant the opportunity to pursue post-trial discovery was an abuse of discretion. The court explained that discovery is procedural; federal law governs the question of whether a party is entitled to take post-trial discovery. Discovery after evidence has closed is typically reserved for situations where the trial reveals a new basis for seeking further information. Accordingly, the court vacated the order denying Appellant’s motion to amend the judgment. The court remanded to reconsider whether to allow Appellant to pursue discovery relating to Antero’s settlement with the Robertson companies and whether to offset the judgment in light of that settlement. View "Antero Resources v. Kawcak" on Justia Law

In 2010, Petitioner was convicted of three counts of juvenile molestation in violation of La. Rev. Stat. Section 14:81.2. Petitioner appealed of the denial of his Section 2254 petition challenging those convictions and his sentence—specifically, his claim on appeal that the evidence at trial was legally insufficient for a conviction on the last count.   The Fifth Circuit affirmed the district court’s denial of his Section 2254 petition. The court wrote that it did not find that the state court was objectively unreasonable in rejecting Petitioner’s claim that there was insufficient evidence to convict him on Count III. The court explained that the evidence was clearly sufficient for a rational jury to find that the described acts were “lewd and lascivious”—and Petitioner’s alternative explanations do not disturb this conclusion. Petitioner’s counsel’s argument, for instance, that it can be normal for adults to “squeeze and pinch” a child’s behind under their clothes flies in the face of common sense. Petitioner provided examples of when such behavior might occur—such as when a child needs help with the restroom—are far afield of the facts before the court. Equally unavailing is counsel’s suggestion that acts must be painful in order to be obscene or indecent. Finally, Petitioner contends that the evidence was insufficient to establish that any molestation occurred in Louisiana as opposed to Mississippi. The court explained that the place of the crime is not an element of the offense of molestation of a juvenile under Louisiana law. View "Terry v. Hooper" on Justia Law

In July 2021, Texas Governor Greg Abbott issued an executive order that prohibited private individuals from providing ground transportation to migrants who were previously detained or subject to expulsion. The United States brought a lawsuit against Governor Abbott and the State of Texas, arguing that the executive order was preempted by federal law. Three nonprofit organizations and a retired lawyer also brought a Section 1983 suit against the Governor and the Director of the Texas Department of Public Safety (“DPS”). The defendants moved to dismiss the suit brought by the private plaintiffs, arguing in part that the plaintiffs lacked standing and the suit against the Governor was barred by sovereign immunity. The district court rejected these arguments, and Governor Abbott appealed.   The Fifth Circuit agreed with the Governor that sovereign immunity bars the lawsuit brought by the private plaintiffs. The court explained Section 411.012 does not imbue the Governor with the “particular duty to enforce” the Executive Order. Second, even if the Governor had a particular duty to enforce GA-37 by commandeering DPS, he has not “demonstrated [a] willingness to exercise that duty.” Third, the Governor’s enforcement directive to DPS should have been sufficient to remove the Governor from this suit. Fourth, the court explained that if Plaintiffs want to show that the Governor silently invoked Section 411.012 and implicitly commandeered a state agency, they must plead facts to support that inference. Thus, the court held that sovereign immunity bars the private Plaintiffs’ suit against the Governor. View "USA v. Abbott" on Justia Law

Appellee attempted to use an “inversion table” located at an Anytime Fitness franchise. The equipment allegedly failed, and Appellee suffered neuromuscular injuries. Appellee filed a personal injury suit in Louisiana court against the franchise owner, Thornhill Brothers Fitness, LLC (“Thornhill”). An amended complaint named an additional defendant, franchisor Anytime Fitness, LLC (“Anytime”). Thornhill agreed to assign all rights it had “against Anytime Fitness LLC” to the Appellees, including any rights arising from “the indemnity agreement contained in the Franchise Agreement” between Thornhill and its franchise parent, Anytime. Anytime then protested in the bankruptcy court. The bankruptcy court vacated its prior order and allowed Anytime a hearing. But in July 2022, the bankruptcy court entered a new order ratifying the actions it took originally. Anytime appealed that July 2022 order and the district court affirmed.  At issue on appeal is whether 11 U.S.C. Section 365(f) or any other portion of Title 11, authorizes a bankruptcy court’s approval of a debtor’s partial assignment of an executory contract.   The Fifth Circuit wrote that it does not and reversed the bankruptcy court’s contrary order and remanded. The court explained that it does not construe any other provision of the Code to permit circumvention of the court’s interpretation of Section 365(f). It’s true that the Code contains various catch-all provisions. But those catch-alls do not create substantive powers not committed to the bankruptcy court by some other section. The court wrote that since the bankruptcy court order at issue here does not satisfy Section 365, it does not matter whether it satisfied Jackson Brewing. View "Anytime Fitness v. Thornhill Brothers" on Justia Law

Defendant was charged with conspiracy to obstruct commerce by robbery, obstruction of commerce by robbery, and using, carrying, brandishing, and discharging firearms during and in relation to a crime of violence, causing death. Defendant was charged alongside several others. The district court severed the trial of the then-capital defendants. Defendant’s first trial, in July 2021, ended in a mistrial after the jury could not reach a verdict. At his retrial in March 2022, a jury convicted Defendant of each of the three counts charged. Defendant appealed.   The Fifth Circuit affirmed. The court explained that it rejected Defendant’s assertion that his substantial rights were affected “because the government’s case was almost entirely premised on DNA evidence.” The court explained that the government also presented eyewitness testimony that, on the morning of the robbery, Defendant helped load a bag of firearms into the vehicle used in the robbery, and the government properly introduced a statement from a non-testifying co-defendant that Defendant was one of the shooters who emerged from the vehicle. Further, the court wrote that Defendant’s vague assertion does not establish that “there is a reasonable probability that the result of the proceedings would have been different but for the error.” View "USA v. Johnson" on Justia Law

Defendant State of Louisiana, ex rel. Jeff Landry (“the State”) sought to dissolve a consent decree that pertains to the method of selecting justices for the Louisiana Supreme Court. The State attempted to dissolve the consent judgment under the first and third clauses of Rule 60(b)(5) of the Federal Rules of Civil Procedure. The State contended that the judgment has been satisfied, released, or discharged because the State has substantially complied with the decree for more than thirty years and the decree was intended to terminate at a defined milestone. The State further contended that it is no longer equitable to enforce the consent judgment prospectively because of widespread malapportionment in Louisiana’s supreme court election districts. The district court denied the State’s motion to dissolve.   The Fifth Circuit affirmed. The court held that the district court did not abuse its discretion in denying the dissolution motion, as the State has failed to meet its evidentiary burdens under both the first and third clauses of Rule 60(b)(5). The court explained that the State did not meet the evidentiary burden associated with Rufo’s first prong, which requires a showing of changed factual or legal circumstances that warrant reexamination of a consent decree. The State only makes very general claims about malapportionment and asserts that “new policy concerns” have arisen which satisfy Rufo. But the State offers almost no evidentiary support for this argument. Further, the court wrote that the State’s argument that continued enforcement of the Consent Judgment is detrimental to the public interest is unavailing. View "Chisom v. State of Louisiana" on Justia Law

Plaintiff, a Louisiana prisoner, sued the Louisiana Board of Pardons and Parole (“Parole Board”), seeking to have his parole reinstated on the grounds that its rescission just prior to its effective date violated his due process rights. The district court agreed with Plaintiff and ordered his release on parole within 30 days. On appeal, the Parole Board’s arguments include that there is no constitutionally protected liberty interest in parole.   The Fifth Circuit affirmed. The court explained the State bases its argument on the premise that the Parole Board has unfettered discretion in all aspects of parole and release decisions. In support of its position, the State relied on an unpublished opinion, Burton v. Bd. of Parole. The court wrote that the opinion relies on Sinclair for its analysis, which the court has already rejected as inapplicable in this case. The court concluded the same now with regard to Burton because, there, the Louisiana First Circuit was considering an appeal from a prisoner’s denial of parole. The opinion discusses “expectancy of release,” while the question here is whether there are limits on the Parole Board to rescind parole after its formal grant but before the effective date of release. The court agreed and explained that Plaintiff’s parole was ostensibly rescinded because of an alleged problem with notice to a victim. He was notified of this reason on May 1, 2017, 10 days after his parole was rescinded. At the time, that was not a permissible reason to rescind his grant of parole. Therefore, Plaintiff’s parole was improperly rescinded. View "Galbraith v. Hooper" on Justia Law

Chapter 423 of the Texas Government Code governs the operation of unmanned aerial vehicles—drones—in Texas airspace. In this case, Plaintiffs claimed a sweeping First Amendment right to use unmanned aerial drones to film private individuals and property without their consent. They also assert a constitutional right to fly drones at low altitudes over critical infrastructure facilities like prisons and large sports venues.   The Fifth Circuit reversed and remanded with instructions to enter judgment in Defendants’ favor on the constitutional claims. The court explained that it disagreed with Plaintiffs claim that a sweeping First Amendment right to use unmanned aerial drones to film private individuals and property without their consent. The court explained that though it does not foreclose any as-applied constitutional defenses to any hypothetical future prosecutions under the drone laws, we hold that these facial challenges fail. The court also rejected Plaintiffs’ cross-appeal claiming that federal regulations occupy the entire field of drone regulation. On this issue, the court affirmed the district court’s dismissal of the field-preemption claim. The court explained that federal law expressly contemplates concurrent non-federal regulation of drones, especially where privacy and critical infrastructure are concerned. View "National Press v. McCraw" on Justia Law

Plaintiff Armadillo Hotel Group, LLC (“Armadillo”) is a buyer and operator of modular and mobile structures throughout North America. According to Armadillo, Defendants Todd Harris and Jason McDaniel were hired in May 2019 to oversee Armadillo’s construction operations and its hotel, food, and beverage operations, respectively. McDaniel resigned in January 2021, Harris in July 2021. Harris and McDaniel asserted that they entered employment agreements with AHG Management as part of the joint venture, but AHG Management breached these agreements by failing to pay the agreed-upon salary, bonuses, and profit-sharing interests. They asserted claims of fraudulent inducement, negligent misrepresentation, tortious interference, and unjust enrichment. Harris, McDaniel, SDRS, and BMC moved to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The district court granted the non-GML defendants’ motion to dismiss with prejudice.   The Fifth Circuit reversed. The court explained that it could not find sufficient information in the record to decide if Armadillo and AHG Management were in privity with each other. The fact that the same attorneys filed AHG Management’s amended state counterclaim and Armadillo’s federal complaint is insufficient to show privity. Accordingly, the court found that the district court did not have sufficient information or even assertions about the relationship of Armadillo and AHG Management to perform such an assessment. View "Armadillo Hotel v. Harris" on Justia Law