Newell-Davis v. Phillips, No. 22-30166 (5th Cir. 2022)
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Plaintiffs appealed the district court’s grant of a motion to dismiss and motion for summary judgment for the State after Plaintiffs alleged numerous state and federal constitutional violations in connection with the State’s Facility Need Review program (“FNR” or “FNR program”).
The Fifth Circuit affirmed, holding that the FNR program survives rational basis review and the Supreme Court has foreclosed Plaintiffs’ Privileges or Immunities Clause claim. The court explained that the FNR program survives rational basis review because it advances the State’s legitimate interest in enhancing consumer welfare. LDH offers many legitimate reasons for its FNR regime. Of those reasons, Plaintiffs have the most difficulty defeating the contention that LDH uses. The court held in favor of the State because Plaintiffs failed to negate “every conceivable basis which might support” the FNR program.
The court issued a subsequent related opinion or order on February 10, 2023.
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