Articles Posted in US Court of Appeals for the Fifth Circuit

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The Fifth Circuit affirmed the district court's grant of judgment as a matter of law to defendants, concluding that federal law preempted ThermoTek's unfair competition claim and that ThermoTek failed to prove its damages for fraud. ThermoTek designs, manufacturers, and sells the VascuTherm system, which consists of a medical device and specially designed wraps that provide thermal and compression therapy. The court held that the district court did not abuse its discretion in reaching the preemption defense on the merits. On the merits, the court held that federal copyright and patent laws preempted the unfair-competition-by-misappropriation claim. View "Motion Medical Technologies, LLC v. Thermotek, Inc." on Justia Law

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The Fifth Circuit affirmed the district court's decision to enjoin state court civil proceedings until the conclusion of the government's criminal investigation, or for a period of one year, whichever first occurred. The court held that the district court had authority to enjoin the state court proceedings where the general prohibition against federal courts granting injunctions to stay state court proceedings did not apply when the United States, as here, seeks the injunction. The company in this case was pursuing a civil lawsuit in state court seeking, among other things, return or ownership of electronic devices currently held by federal investigators. If not enjoined, further proceedings in state court, including civil discovery, could undermine the federal criminal investigation into the company. View "In re: Grand Jury Subpoena" on Justia Law

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Claimants appealed the denial of civil claims under the Settlement Program that was established following the Deepwater Horizon oil spill. Claimants submitted Individual Economic Loss (IEL) claims for lost wages as employees of their architectural firm. The firm had already received a Business and Economic Loss (BEL) award under the Settlement Program. The Fifth Circuit held that the BEL framework, by compensating the business for the owners' lost wages through the fixed-cost designation of their wages, precluded compensating those same owners for the same wages through an IEL claim. Because the Settlement Program did not contemplate the requested compensation, the court affirmed the judgment. View "In Re: Deepwater Horizon" on Justia Law

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ASARCO filed suit against MRI, challenging MRI's refusal to bring ASARCO back into a partnership in a Montana copper mine. MRI argued that ASARCO's decisions during its Chapter 11 bankruptcy filing prevent it from suing for reinstatement. The Fifth Circuit affirmed the district court's denial of MRI's motion for summary judgment on preclusion and estoppel grounds. The court held that the district court correctly determined that ASARCO was not precluded from bringing its breach of contract claim and the claim was not barred by res judicata. The court explained that the claim was contingent on future events and thus ASARCO could not have brought it during the adversary proceeding. The court also held that ASARCO's disclosure of the right to reinstate, though scant, was sufficient. Finally, the court left it to the district court to decide in the first instance the nature of the provision and whether, if it is executory, the ride-through doctrine applies. View "ASARCO v. Montana Resources" on Justia Law