James Dondero had appealed to the Fifth Circuit in September 2022, arguing the bankruptcy judge wrongly found him in contempt of a temporary restraining order and awarded compensatory damages to Highland. Judge Leslie H. Southwick wrote that the “minor factual issues” Dondero raised on appeal weren’t enough to undo the sanction. “Undergirding our analysis of the sanctions award here is a recognition of the goal of such awards everywhere: ‘to do rough justice,’” he wrote.
Litigation Roundup: Primexx Energy Wants Suit Over $788M Sale Tossed
In this edition of Litigation Roundup, we offer an update from the most recent hearing in the lawsuit stemming from the $788 million sale of Primexx Energy, a threatened lawsuit over the death of Congresswoman Eddie Bernice Johnson yields a settlement, and six officers and directors of a Houston-based clinic see an end to a $285 million breach claim.
SCOTUS Vacates Fifth Circuit Decision in Social Media Case
In a decision Monday by the U.S. Supreme Court, the justices ruled that the U.S. Court of Appeals for the Fifth Circuit failed to “conduct a proper analysis of the First Amendment challenges” to a Texas law that regulates content posted on large internet platforms, such as Facebook and YouTube. The Supreme Court vacated and remanded NetChoice v. Paxton — a case in which the Fifth Circuit upheld a Texas law prohibiting websites and social media outlets from editing or deleting posts deemed to be false or harmful.
SCOTX Reverses Jury’s $26 Million Verdict for Woman Paralyzed in Minivan Crash
A 2003 tort reform law limits Honda’s liability because its ceiling-mounted detachable seatbelt system met federal safety regulations. The case presented novel questions about the interplay of state law and federal regulations. The large jury verdict was considered by some lawyers to be a so-called “nuclear verdict” ripe for reversal.
SCOTUS Snapshot: The Fifth Circuit Is 3-7 This Term
The U.S. Supreme Court heard arguments in 10 cases during the 2023-24 term that came from the U.S. Court of Appeals for the Fifth Circuit. It reversed the Fifth Circuit seven times.
Texas Experts: SCOTUS’ Jarkesy Decision to Have Limited Impact on SEC Enforcement
The U.S. Supreme Court’s decision Thursday that defendants in fraud cases have the right to a civil jury trial in cases in which the U.S. Securities and Exchange Commission seeks financial penalties appears to be broad and sweeping but may have only minimal impact on SEC enforcement actions. But legal experts say that the decision could have a significant impact on settlements with the SEC. The SEC’s case against George Jarkesy, a Texas hedge fund manager and conservative radio talk show host, dates back to 2013 when the government claims that Jarkesy defrauded investors by falsely leading them to believe that KPMG was auditing two funds he launched. The SEC brought their case in an administrative proceeding before an SEC-appointed ALJ. The SEC hit Jarkesy and a co-defendant with $300,000 in penalties and ordered Jarkesy’s fund, Patriot28, to disgorge about $685,000 in ill-gotten gains.
Also, click here to see the list of Fifth Circuit cases handled by the Supreme Court this term.
Landfill Dispute Returned to District Court Minus Fair Market Value Claim
The Texas Supreme Court kept alive the lawsuit filed by Travis Central Appraisal District over a landfill’s slashed property valuation but returned the case to the district court on substantially narrowed grounds. The court sided with Texas Disposal System in removing the appraiser’s fair market value claim but will allow market value evidence to be heard. The tax dispute centers on an unusual property that also houses exotic animals and hosts private parties.
Divided Court Wipes Out Dentist’s $16M Medicaid Fraud Penalty
During oral arguments, much of the court’s questioning centered around whether Texas had proven scienter, or that Dr. Richard Malouf knew he was violating the statute when he submitted 1,842 claims for reimbursement, which is required for the judgment against Malouf to stand. But that was not the issue that carried the day for Malouf.
Nate Paul’s Fight Against Criminal Contempt Finding Goes to SCOTUS
Paul, who argues that what happened to him in this case is “a stunning episode of Wild West justice,” filed his petition on June 13. The Mitte Foundation, which alleges Paul’s petition contains “many factual misstatements,” has until July 18 to file a response. The petition asks the U.S. Supreme Court to answer two questions: 1. Whether a criminal-contempt prosecution by an interested private party violates the Due Process Clause. 2. Whether sentencing a criminal defendant to jail via email, in absentia and without the opportunity to address the judge, violates the Due Process Clause or the Sixth Amendment.
Litigation Roundup: Trafigura Pays $55M, Settles Trading Fraud Claims; New Rules at the Fifth Circuit
In this edition of Litigation Roundup, we detail two new changes in rules governing attorneys who practice before the U.S. Court of Appeals for the Fifth Circuit, a jury in Harris County issues a $17 million verdict in a seven-year-old lawsuit and Whataburger goes to court to defend its trademark.
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