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

In 2020, Illumina, a for-profit corporation that manufactures and sells next-generation sequencing (NGS) platforms, which are crucial tools for DNA sequencing, entered into an agreement to acquire Grail, a company it had initially founded and then spun off as a separate entity in 2016. Grail specializes in developing multi-cancer early detection (MCED) tests, which are designed to identify various types of cancer from a single blood sample. Illumina's acquisition of Grail was seen as a significant step toward bringing Grail’s developed MCED test, Galleri, to market.However, the Federal Trade Commission (FTC) objected to the acquisition, arguing that it violated Section 7 of the Clayton Act, which prohibits mergers and acquisitions that may substantially lessen competition. The FTC contended that because all MCED tests, including those still in development, relied on Illumina’s NGS platforms, the merger would potentially give Illumina the ability and incentive to foreclose Grail’s rivals from the MCED test market.Illumina responded by creating a standardized supply contract, known as the "Open Offer," which guaranteed that it would provide its NGS platforms to all for-profit U.S. oncology customers at the same price and with the same access to services and products as Grail. Despite this, the FTC ordered the merger to be unwound.On appeal, the United States Court of Appeals for the Fifth Circuit found that the FTC had applied an erroneous legal standard in evaluating the impact of the Open Offer. The court ruled that the FTC should have considered the Open Offer at the liability stage of its analysis, rather than as a remedy following a finding of liability. Furthermore, the court determined that to rebut the FTC's prima facie case, Illumina was not required to show that the Open Offer would completely negate the anticompetitive effects of the merger, but rather that it would mitigate these effects to a degree that the merger was no longer likely to substantially lessen competition.The court concluded that substantial evidence supported the FTC’s conclusions regarding the likely substantial lessening of competition and the lack of cognizable efficiencies to rebut the anticompetitive effects of the merger. However, given its finding that the FTC had applied an incorrect standard in evaluating the Open Offer, the court vacated the FTC’s order and remanded the case for further consideration of the Open Offer's impact under the proper standard. View "Illumina v. FTC" on Justia Law

Craig Price, a Black man, filed a lawsuit against his former employer, Valvoline LLC, alleging that his employment was terminated due to his race and he was subjected to a hostile work environment. Valvoline operated on an attendance policy, and Price had been repeatedly warned about his absenteeism, with his employment eventually terminated after he missed a shift due to food poisoning. Price also alleged that discriminatory comments had been made by his supervisors. The United States Court of Appeals for the Fifth Circuit affirmed the district court's summary judgment in favor of Valvoline. The Appeals Court found that Price's employment was terminated due to his repeated absenteeism, not because of his race. Furthermore, the court concluded that the allegedly race-motivated comments were not objectively severe or pervasive enough to create a hostile work environment. The court also noted that Price could not demonstrate that the alleged harassment he experienced was frequent or that it interfered with his work performance. Therefore, Price's claims of race discrimination and a hostile work environment were rejected. View "Price v. Valvoline" on Justia Law

A non-profit organization, Vote.org, sued several county election officials in Texas, alleging that a state law requiring an original signature on a voter registration form violated the Civil Rights Act of 1964 and the First and Fourteenth Amendments. The law frustrated Vote.org's use of its smartphone app, which only allowed for digital signatures. The district court ruled in favor of Vote.org, but the United States Court of Appeals for the Fifth Circuit reversed the decision. The appellate court concluded that Vote.org had standing to sue, both in its own right and on behalf of third parties. The court found that the requirement for an original signature on a voter registration form did not violate the Civil Rights Act of 1964 or the First and Fourteenth Amendments. The court held that Texas's requirement of an original signature was a material condition of voter registration and served legitimate state interests in ensuring the reliability of the registration process and reducing fraud. The court also found that the burden imposed by the requirement was only slight and did not unduly burden the right to vote. Therefore, the court ruled in favor of the defendants. View "Vote.Org v. Paxton" on Justia Law

In an appeal before the United States Court of Appeals for the Fifth Circuit, Erma Wilson sought to overturn the decision of the U.S. District Court for the Western District of Texas which dismissed her federal civil rights suit against Midland County, Texas, and individuals Ralph Petty and Albert Schorre. Wilson was convicted of cocaine possession 22 years prior and she maintained her innocence, claiming that the cocaine found was not hers. The case revolved around her claim that she was denied due process since the assistant district attorney in her case, Ralph Petty, was also moonlighting as a law clerk for the judge presiding over her trial. Wilson was sentenced to eight years of community supervision which derailed her dream of becoming a nurse.Upon review, the Fifth Circuit held that Wilson's claim is barred by the "favorable termination" rule from Heck v. Humphrey. The rule states that a convicted party cannot seek § 1983 damages for unconstitutional conviction or imprisonment without first showing that the conviction or sentence has been reversed on appeal or otherwise declared invalid. The court noted that Petty’s dual role indeed constituted a conflict of interest that violated Wilson's constitutional right to a fair trial. However, under the court's precedent, noncustodial plaintiffs, such as Wilson, must meet the favorable-termination requirement, even if it’s practically impossible for them to do so. The court found that it was bound by prior circuit precedent and could only affirm the lower court's decision. The court noted that only the en banc court or the United States Supreme Court could deliver a different result. The court affirmed the judgment of the lower court. View "Wilson v. Midland County" on Justia Law

A married couple who owned a small dental practice, D.L. Markham DDS, MSD, Inc., established an employee pension benefit plan for their business. They hired Variable Annuity Life Insurance Company (VALIC) to maintain the plan. Dissatisfied with VALIC's services, they decided to terminate their contract and were informed by VALIC that they would be charged a 5% surrender fee on all of the plan’s assets. The couple sued, alleging VALIC violated the Employee Retirement Income Security Act of 1974 (ERISA) by breaching its fiduciary duties and engaging in a prohibited transaction. The United States Court of Appeals for the Fifth Circuit affirmed the district court's dismissal of their claims. The court held that VALIC did not act as a fiduciary when it collected the surrender fee, as it simply adhered to the contract by collecting the previously agreed-upon compensation. The court also found that VALIC was not a "party in interest" when it entered the contract, as it had not yet begun providing services to the plan. Finally, the court held that VALIC's collection of the surrender fee did not constitute a separate transaction under ERISA, as it was a payment in accordance with an existing agreement. The court also affirmed the district court’s denial of the plaintiffs’ request to amend their complaint due to undue delay and insufficient detail of their new allegations. View "Markham v. Variable Annuity Life" on Justia Law

In the case before the United States Court of Appeals for the Fifth Circuit, the appellant, Brian Jackson, challenged the sufficiency of the evidence supporting his guilty plea for attempted interference with commerce by robbery in violation of 18 U.S.C. § 1951(a). Jackson and two co-conspirators had attempted to rob a convenience store, and in the course of the incident, the store was closed for about three hours, causing it to lose $600 in potential earnings. Jackson argued that the record did not sufficiently show that the attempted robbery impacted interstate commerce.The court, however, ruled that Jackson's plea agreement contained sufficient factual admissions to satisfy the Hobbs Act’s commerce element. It noted that Jackson admitted to attempting to rob the store with the intent to affect interstate commerce. In addition, the court found that the temporary closure of the store resulting from the attempted robbery affected interstate commerce, as it depleted the store's assets by $600, impeding its ability to engage in future interstate commerce. The court also inferred from the record that the store likely dealt in goods originating from outside Texas and therefore engaged in interstate commerce.Jackson's argument that he would not have pled guilty if he had known the facts were insufficient under the commerce element was dismissed by the court. The court noted that Jackson had pled guilty despite believing that the facts were insufficient to support the commerce prong, and he had admitted that his purpose in pleading guilty was to avoid potential conviction under a statute carrying longer sentences.The court thus found no reversible error and affirmed the lower court's decision. View "USA v. Jackson" on Justia Law

This case involves Delta Charter Group, Inc. (Delta), a public charter school operating within Concordia Parish in Louisiana. The case has its roots in a 1965 lawsuit against the Concordia Parish School Board for operating segregated schools in violation of the Fourteenth Amendment. The district court approved a desegregation plan, but the Board has yet to achieve unitary status, and Delta, which had intervened in the ongoing desegregation case, was required by a 2013 consent order to comply with the Board's desegregation decree. A second consent order in 2018 outlined a race-based enrollment process for Delta, giving the highest enrollment preference to black students.Four years later, Delta moved to discontinue the race-based enrollment process, arguing that it was unconstitutional. The district court declined to modify the order under Federal Rule of Civil Procedure 60(b)(5), which allows courts to modify or dissolve a consent decree if applying it prospectively is no longer equitable. Delta failed to show a significant change in factual conditions or in law that would justify modification. The United States Court of Appeals for the Fifth Circuit affirmed the judgment of the district court, stating that Delta had forfeited any argument that the district court had abused its discretion by failing to adequately brief the argument on appeal. The court did not offer any opinion on the underlying constitutional merits, as Delta had forfeited any available argument that the district court should have applied Rule 54(b) and that it had abused its discretion in denying relief under Rule 60(b)(5). View "Delta Charter v. Sch Bd Concordia Prsh" on Justia Law

A group of plaintiffs, who are voters in Travis County, Texas, filed a lawsuit against county officials alleging violations in the conduct of the November 2020 general election. Specifically, they claimed that the defendants used an uncertified electronic voting system for the election, thereby violating several state and federal laws. They sought injunctive and declaratory relief to prohibit electronic voting in Travis County, require paper ballots, and unseal various records related to the 2020 general election. The defendants removed the case to federal court and moved to dismiss the lawsuit, arguing that the plaintiffs lacked standing. The district court agreed and dismissed the case without prejudice. The decision was appealed to the United States Court of Appeals for the Fifth Circuit.In its decision, the Fifth Circuit agreed with the district court that the plaintiffs lacked standing to sue under Article III of the U.S. Constitution, which requires a plaintiff to establish that they have suffered a concrete and particularized injury that is likely caused by the defendant and would likely be redressed by judicial relief. The plaintiffs alleged two injuries: their votes were invalidated and not counted, and their personal information was unlawfully disclosed. The court found that neither injury was sufficient for Article III standing.However, the Fifth Circuit disagreed with the district court's dismissal of the case. Instead, it ruled that the proper course of action, when a federal court lacks subject matter jurisdiction due to a lack of standing, is to remand the case to state court rather than dismissing it. Accordingly, the Fifth Circuit vacated the district court's order and remanded the case with instructions to send it back to state court. View "Lutostanski v. Brown" on Justia Law

The case involves James Pierre, the sole doctor at a Houston pill mill, who was convicted of multiple federal drug crimes. He was charged with seven counts of unlawfully distributing and dispensing controlled substances and one count of conspiring to do the same. Pierre's defense argued that he had been deceived by the clinic's employees and only provided medicine for people he believed were in pain. However, the jury did not believe him and he was convicted on all counts.Pierre appealed his conviction on two grounds: that the district court erred in admitting improper profiling evidence and in instructing the jury. The United States Court of Appeals for the Fifth Circuit, however, found no reversible error and affirmed the conviction. The court held that the testimony about the mill operations was not profiling evidence, as it helped the jury understand the evidence. The court also held that any error in the jury instructions did not affect Pierre's substantial rights, as there was overwhelming evidence to prove that Pierre knew the prescriptions he was writing were medically unauthorized. View "USA v. Pierre" on Justia Law

In this case brought before the United States Court of Appeals for the Fifth Circuit, the plaintiffs were appealing the wording of a district court's declaratory judgment which held certain voter-registration provisions in the Houston City Charter unconstitutional. The plaintiffs were up against the City of Houston and two officials, Anna Russell and Pat J. Daniel, who were acting in their official capacities as City Secretaries.The court, however, found that there was no case or controversy as both parties had agreed from the start that the voter registration provisions were unconstitutional, and the city confirmed that it could not and would not enforce these provisions. The court cited precedent confirming that where there is no adversity between the parties on a constitutional question, there is no Article III case or controversy.Therefore, the court vacated the district court's judgment and remanded the case with instructions to dismiss the suit without prejudice, stating that such faux disputes do not belong in federal court. This dismissal allows for the possibility of the case being refiled in a competent jurisdiction in the future if necessary. View "Pool v. City of Houston" on Justia Law