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Justia Daily Opinion Summaries

US Court of Appeals for the Fifth Circuit
February 12, 2020

Table of Contents

Trendsetter HR LLC v. Zurich American Insurance Co.

Bankruptcy

McCoy v. Alamu

Civil Rights, Constitutional Law

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Legal Analysis and Commentary

Kansas v. Glover and Conditional Irrelevance

SHERRY F. COLB

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Cornell law professor Sherry F. Colb discusses the concept of “conditional irrelevance”—which she first identified in a law review article in 2001—and explains why the concept is useful for understanding the arguments before the U.S. Supreme Court in Kansas v. Glover. Through the lens of conditional irrelevance, Colb explains why the knowledge of one fact (that the owner of the vehicle in that case lacked a valid license) should not itself provide police reasonable suspicion to stop the vehicle.

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US Court of Appeals for the Fifth Circuit Opinions

Trendsetter HR LLC v. Zurich American Insurance Co.

Docket: 19-10056

Opinion Date: February 11, 2020

Judge: Don R. Willett

Areas of Law: Bankruptcy

Zurich filed suit against Trend after Trend purchased workers' compensation insurance from Zurich and then eventually went with a new insurance provider. Trend then filed for bankruptcy and the bankruptcy court allowed Zurich's claims for various unpaid invoices, estimated future losses, and unpaid fee schedule write-down fees. The Fifth Circuit affirmed the district court's decision upholding the bankruptcy court's allowance of Zurich's unpaid-invoices and future-losses claims. The court applied federal bankruptcy law and held that there was no legal error due to unintentionality; Zurich's unpaid-invoices claim was a cognizable bankruptcy claim because the underlying invoices were enforceable rights to payment under New York law; the bankruptcy court did not clearly err in its assessment of the evidence by concurrently allowing Zurich's claims such that the total allowance was $4,674,629 for "future losses." The court also held that there was no error in the bankruptcy court's allowance of Zurich's claim for unpaid fee schedule write-down fees. In this case, Zurich has a cognizable claim to the unpaid fee schedule write-down fees, and the bankruptcy court did not clearly err by concluding that the "25% of Total Savings" fee, as applied to fee schedule write-downs, was not unconscionable.

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McCoy v. Alamu

Docket: 18-40856

Opinion Date: February 11, 2020

Judge: Jerry E. Smith

Areas of Law: Civil Rights, Constitutional Law

The Fifth Circuit affirmed the district court's grant of summary judgment based on qualified immunity to a correctional officer in a 42 U.S.C. 1983 action. Plaintiff, a Texas prisoner, filed suit alleging that the officer violated his Eighth Amendment rights by spraying him in the face with a chemical agent without provocation. The court held that, although a reasonable jury could conclude that the officer's use of force was excessive, it was not beyond debate that the officer's single use of spray stepped over the de minimis line. Therefore, the law was not clearly established at the time and the officer was entitled to qualified immunity. Finally, the court held that the district court did not err by refusing plaintiff leave to amend his complaint and for injunctive relief.

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