Opinion

Consum Data Indust Assoc v. State of TX

Court
Court of Appeals for the Fifth Circuit
Filed
Jul 25, 2023
Status
Unpublished
Nature of suit
Private Civil Federal
Cited by
0 cases
Authority
More cited than 23.7%

though criminal penalty provision had not yet been applied, state had not disavowed any intention of invoking it

How later courts described this case

  • though criminal penalty provision had not yet been applied, state had not disavowed any intention of invoking it
  • standing to seek injunctive relief does not necessarily establish standing to seek retrospective damages
  • “When ‘establishing redressability, [a plaintiff] need only show that a favorable ruling could potentially lessen its injury; it need not definitively demonstrate that a victory would completely remedy the harm.’”
  • having to “[choose] between abandoning [] rights or risking prosecution—is ‘a dilemma that it was the very purpose of the Declaratory Judgment Act to ameliorate’”

Written by the judges who cited it.

The opinion

Case: 21-51038 Document: 00516833688 Page: 1 Date Filed: 07/25/2023

United States Court of Appeals

for the Fifth Circuit United States Court of Appeals

Fifth Circuit

____________ FILED

July 25, 2023

No. 21-51038

Lyle W. Cayce

____________ Clerk

Consumer Data Industry Association,

Plaintiff—Appellee,

versus

State of Texas, through Attorney General Ken Paxton, acting in his

official capacity,

Defendant—Appellant.

______________________________

Appeal from the United States District Court

for the Western District of Texas

USDC No. 1:19-CV-876

______________________________

Before Graves, Willett, and Engelhardt, Circuit Judges. *

Per Curiam: **

Defendant-Appellant, the State of Texas, through Attorney General

Ken Paxton (“Paxton”), 1 appeals the district court’s determination that the

_____________________

*

Judge Willett concurs in the judgment only.

**

This opinion is not designated for publication. See 5th Cir. R. 47.5.

1

On July 14, 2023, Texas Governor Greg Abbott appointed Angela Colmenero to

serve as Interim Attorney General for the State of Texas pending the Texas Senate’s

resolution of the articles of impeachment filed against Ken Paxton. See Press Release,

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No. 21-51038

Ex parte Young exception to sovereign immunity applies, that Plaintiff-

Appellee Consumer Data Industry Association (“CDIA”) has standing, and

that CDIA’s claim is ripe for review. On the instant record, we AFFIRM.

I.

Plaintiff-Appellee CDIA is an international trade association that rep-

resents the three nationwide credit reporting agencies (“CRAs”)—Ex-

perian, Equifax, and Trans Union—and other credit reporting agencies that

furnish information concerning Texas consumers. On September 9, 2019,

CDIA sued Texas Attorney General Ken Paxton, in his official capacity, con-

tending that Section 20.05(a)(5) of the Texas Business & Commerce Code is

preempted by the Federal Fair Credit Reporting Act (“FCRA”), 15 U.S.C.

§ 1681, et seq., and seeking declaratory and injunctive relief. The Texas stat-

utory provision, § 20.05(a)(5), prohibits CRAs from including information

regarding certain medical debt collection accounts in consumer credit reports

that are furnished to third-parties. Tex. Bus. & Com. Code

§ 20.05(a)(5).

Defendant-Appellant Paxton filed motions to dismiss, pursuant to

Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), contending that (1)

CDIA has not suffered an “injury in fact” and thus lacks standing; (2)

CDIA’s claim is not ripe for review; (3) the State of Texas is entitled to

sovereign immunity from suit; and (4) § 20.05(a)(5) is not preempted by the

FCRA. On September 28, 2021, the district court denied the motions.

Considering the prospective nature of the relief sought by CDIA, and

CDIA’s factual allegations, the district court determined that Ex parte

Young’s exception to sovereign immunity applies, CDIA has Article III

_____________________

Office of the Texas Governor (July 10, 2023), https://gov.texas.gov/news/post/governor-

abbott-appoints-angela-colmenero-as-interim-attorney-general-of-texas.

2

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standing, and its claim is ripe for review. In rejecting the Rule 12(b)(6)

motion, the district court reasoned that CDIA had sufficiently alleged

express preemption because the state and federal statutory provisions

concern the same subject matter. This interlocutory appeal followed. 2

II.

The statutory provision that CDIA claims is preempted by federal law,

and thus seeks to enjoin its enforcement—Section 20.05(a)(5) of the Texas

Business and Commerce Code—was enacted in 2019 and became effective

on May 31, 2019. It prohibits CRAs from including information regarding

certain medical debt collection accounts in consumer credit reports that are

furnished to third-parties. Specifically, § 20.05(a)(5) states:

(a) Except as provided by Subsection (b), a consumer reporting

agency [“CRA”)] may not furnish a consumer report contain-

ing information related to:

***

(5) a collection account with a medical industry code, if the

_____________________

2

This court’s appellate jurisdiction is generally limited to appeals from “final

decisions.” See 28 U.S.C. § 1291. However, “beginning with Cohen v. Beneficial Industrial

Loan Corp.,[337 U.S. 541, 548–49 (1949)], the Supreme Court has recognized narrow

exceptions to this rule under what is now termed the collateral-order doctrine.” Planned

Parenthood Gulf Coast, Inc. v. Phillips, 24 F.4th 442, 448 (5th Cir. 2022). “The collateral-

order doctrine permits appeals of interlocutory orders that ‘[1] conclusively determine the

disputed question, [2] resolve an important issue completely separate from the merits of

the action, and [3] [are] effectively unreviewable on appeal from a final judgment.’” Id.

(quoting Coopers & Lybrand v. Livesay, 437 U.S. 463, 468 (1978)). When dismissal on

grounds of sovereign immunity is denied, interlocutory appeal is permitted under the Cohen

collateral-order doctrine. Id. at 448–50. Given the significant overlap in the issues

presented in this appeal, we also will review the district court’s interlocutory rulings

regarding standing and ripeness. See, e.g., City of Austin v. Paxton, 943 F.3d 993, 1003 n. 3

(5th Cir. 2019) (declining to consider standing on interlocutory appeal of sovereign

immunity ruling but citing cases where standing was considered). The same is not true,

however, of the district court’s preemption ruling.

3

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consumer was covered by a health benefit plan at the time of

the event giving rise to the collection and the collection is for

an outstanding balance, after copayments, deductibles, and co-

insurance, owed to an emergency care provider or a facility-

based provider for an out-of-network benefit claim[.]

Tex. Bus.& Com. Code § 20.05(a)(5).

Enforcement of the provisions of Chapter 20 of the Texas Business

and Commerce Code—which is entitled “Regulation of Consumer Credit

Reporting Agencies”—is addressed in Subchapter D, §§ 20.08–20.13. No-

tably, both consumers and the Texas Attorney General are granted enforce-

ment authority. A consumer may file an enforcement action in court or, if

agreed to by the parties, submit the matter to binding arbitration. Tex. Bus.

& Com. Code § 20.08(a). 3 If the CRA’s violation is willful, the CRA is

liable to the consumer against whom the violation occurred for the greater of

three times the amount of the consumer’s actual damages or $1,000, as well

as reasonable attorney fees and court or arbitration costs. Id. § 20.09(a). 4 If

a CRA negligently violates the chapter, it can be liable to the consumer for the

greater of the actual amount of damages or $500, as well as reasonable attor-

ney fees and court or arbitration costs. Id. § 20.09(b).

_____________________

3

If the consumer prevails in arbitration and the disputed adverse information in

the consumer’s file or record is not stricken or removed in a timely manner, the consumer

may bring an action against the noncomplying CRA without regard to the 120-day waiting

period otherwise required by § 20.08(d) for successive arbitrations. Tex. Bus. & Com.

Code § 20.08(f).

4

In addition to liability imposed under § 20.09(a), a consumer reporting agency

that does not correct inaccurate information in a consumer’s file and consumer report

before the 10th day after the date on which a judgment is entered against the agency is also

liable for $1,000 a day until the inaccuracy is corrected. Tex. Bus. & Com. Code

§ 20.09(c).

4

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The Texas Attorney General’s enforcement power relative to

§ 20.05(a)(5) is found in §§ 20.11 and 20.12. Section 20.11 states:

§ 20.11 Injunctive Relief; Civil Penalty

(a) The attorney general may file a suit against a person for:

(1) injunctive relief to prevent or restrain a violation of this

chapter; or

(2) a civil penalty in an amount not to exceed $2,000 for each

violation of this chapter.

(b) If the attorney general brings an action against a person under

Subsection (a) and an injunction is granted against the person or the

person is found liable for a civil penalty, the attorney general may

recover reasonable expenses, court costs, investigative costs, and

attorney’s fees.

(c) Each day a violation continues or occurs is a separate viola-

tion for purposes of imposing a penalty under this section.

Tex. Bus.& Com. Code § 20.11. Section 20.12 adds, relative to the

Texas Deceptive Trade Practices Act–Consumer Protection Act:

§ 20.12 Deceptive Trade Practice

A violation of this chapter is a false, misleading or deceptive act

or practice under Subchapter E, Chapter 17.

Tex. Bus.& Com. Code § 20.12; Tex. Bus.& Com. Code § 17.41,

et seq.

As stated in the district court’s order, CDIA’s First Amended Com-

plaint includes the following allegations:

• Some CDIA members currently include in their reports Medical

Account Information that the Statute now prohibits.

• The State has the authority to enforce the Statute and has never

agreed not to enforce it against CDIA members.

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• Absent a declaration that the Statute is preempted by the FCRA,

CDIA members will be forced to make material changes to their

day-to-day business operations to comply with the Statute, includ-

ing making changes to products currently provided in Texas.

• CDIA members which maintain Medical Account Information

will have to undertake significant efforts and adopt processes to:

(i) identify any information that would be implicated by the Stat-

ute; (ii) take steps to assure the removal of such data from their

files or otherwise prevent such data from being included in con-

sumer reports provided in Texas; and (iii) manage the collection

of such information from the furnishers in the future to prevent its

appearance.

• These remediation efforts require material investments of time

and resources. Similar undertakings regarding other changes to

the credit reporting system have taken members years to com-

plete.

See September 28, 2021 District Court Order at 5 (citing First Amended

Complaint, ¶¶ 5-6, 8, 10, 18, 20, 25–28, 30–34 (emphasis added)). For pur-

poses of this appeal, the factual allegations in the complaint are accepted as

true.

III.

On appeal, Paxton challenges the district court’s sovereign immunity,

standing, and ripeness rulings. We review the district court’s standing and

ripeness determinations de novo. Ctr. for Individual Freedom v. Carmouche,

449 F.3d 655, 659 (5th Cir. 2006). The same is true for the district court’s

jurisdictional determination of sovereign immunity. City of Austin v. Paxton,

943 F.3d 993, 997 (5th Cir. 2019). “If the district court resolves any factual

disputes in making its jurisdictional findings, the facts expressly or impliedly

found by the district court are accepted on appeal unless the findings are

clearly erroneous.” Pederson v. Louisiana State Univ., 213 F.3d 858, 869 (5th

Cir. 2000).

6

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In this instance, our decision regarding standing also is determinative

of Paxton’s assertions of error regarding the district court’s sovereign

immunity and ripeness rulings. Thus, although it is the district court’s

sovereign immunity ruling that provides interlocutory appellate jurisdiction, 5

we will address Article III standing first.

IV.

Article III of the United States Constitution permits federal courts to

decide certain “cases” and “controversies.” Choice Inc. of Texas v. Green-

stein, 691 F.3d 710, 715 (5th Cir. 2012); U.S. Const., art. III, § 2. And,

“the justiciability doctrines of standing, mootness, political question, and

ripeness all originate from Article III’s ‘case’ or ‘controversy’ language.”

Greenstein, 691 F.3d at 715 (internal quotation marks deleted). “A question

of standing raises the issue of whether the plaintiff is entitled to have the

court decide the merits of the dispute or of particular issues.” Pederson, 213

F.3d at 869 (quoting Cook v. Reno, 74 F.3d 97, 98–99 (5th Cir. 1996)). Stand-

ing must exist at the time suit is filed. Id. 6

“[T]he irreducible constitutional minimum of standing consists of

three elements.” Lujan v. Defs. of Wildlife, 504 U.S. 555, 560 (1992). “The

plaintiff must have (1) suffered an injury in fact, (2) that is fairly traceable to

the challenged conduct of the defendant, and (3) that is likely to be redressed

by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338

(2016), as revised (May 24, 2016). To establish Article III standing, an alleged

“injury in fact” must be “concrete, particularized, and actual or imminent.”

Clapper v. Amnesty Intern. USA, 568 U.S. 398, 409 (2013). The district court,

_____________________

5

See note 1, supra.

6

The mootness doctrine, in contrast, considers whether the present or threatened

injury required for standing continues to exist. See Friends of the Earth, Inc. v. Laidlaw, 528

U.S. 167, 189–94 (2000) (distinguishing standing and mootness).

7

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accepting CDIA’s allegations as true, concluded that CDIA had satisfied Ar-

ticle III’s requirement of an “injury in fact” and thus had “associational

standing” to bring this pre-enforcement judicial action, on behalf of its mem-

bers, seeking declaratory and injunctive relief relative to Texas Business and

Commerce Code § 20.05(a)(5). 7

On appeal, Paxton challenges this determination, contending CDIA’s

assertion that the Texas Attorney General will seek to enforce § 20.05(a)(5)

by filing a suit seeking injunctive relief or a civil penalty, pursuant to §§ 20.11

and 20.12, is likewise “purely speculative” and, thus, insufficient to provide

the “injury in fact” required for Article III standing. In making this assertion,

Paxton emphasizes the absence of any formal enforcement proceedings un-

dertaken, or threatened, by the Texas Attorney General since § 20.05(a)(5)

became effective on the May 31, 2019 enactment date. Based on that history,

Paxton also argues that the operational changes that CDIA’s members alleg-

edly must make (to comply with § 20.05(a)(5)) are not traceable to actions by

the Texas Attorney General. Lastly, Paxton contends that enjoining the

_____________________

7

As noted by the district court, an association has standing to sue on behalf of its

members when “(a) its members would otherwise have standing to sue in their own right;

(b) the interests it seeks to protect are germane to the organization’s purpose; and

(c) neither the claim asserted nor the relief requested requires the participation of

individual members in the lawsuit.” Hunt v. Wash. State Apple Advert. Comm’n, 432 U.S.

333, 343 (1977). Participation of individual members generally is not required when the

association seeks prospective or injunctive relief, as opposed to damages. United Food &

Commercial Workers Union Local 751 v. Brown Grp., Inc., 517 U.S. 544, 546 (1996). Paxton’s

standing challenge focuses solely on the requirement that CDIA’s members “would

otherwise have standing to sue in their own right.” Notably, the presence of any one party

with standing as to each claim satisfies Article III’s case-or-controversy requirement.

Rumsfeld v. Forum for Acad. & Inst. Rights, Inc., 547 U.S. 47, 52 n. 2 (2006); Bowsher v.

Synar, 478 U.S. 714, 721 (1986); Brackeen v. Haaland, 994 F.3d 249, 291 (5th Cir. 2021)

rev’d in part on other grounds, 143 S. Ct. 1609 (2023). Still, a plaintiff must establish standing

for each form of relief sought. See Transunion, LLC v. Ramirez, 141 S. Ct. 2190, 2210 (2021)

(standing to seek injunctive relief does not necessarily establish standing to seek

retrospective damages).

8

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Texas Attorney General’s enforcement of § 20.05(a)(5) will not redress

CDIA’s injury because consumers still will be able to enforce the provision’s

requirements by suing, under §§ 20.08 and 20.09, for damages.

An allegation of future injury may establish standing if the threatened

injury is “certainly impending or there is a substantial risk that the harm will

occur.” Susan B. Anthony List v. Driehaus, 573 U.S. 149, 158 (2014) (quoting

Clapper, 568 U.S. at 414 n.5). Here, CDIA does not allege that the Texas

Attorney General has threatened any of its members with enforcement,

issued warning letters, or formally announced an intent to enforce the statute.

On the other hand, the Texas Attorney General has never stated or even

suggested that the statute would not be enforced in the future. Indeed, in

Attorney General Opinion No. KP-0367, issued on April 13, 2021, in

response to a query from the San Patricio County Attorney, Paxton opined

regarding the likelihood that a court would conclude that the prohibition set

forth in § 20.05(a)(5) applies to a certain type of health plan. See Tex.

Atty. Gen. Op. KP-0367 (Apr. 13, 2021), 2021 WL 2803919.

Significantly, nonenforcement of the prohibition is never mentioned.

Paxton’s submissions to the district court and this court likewise lack

a clear statement of intent regarding future enforcement of § 20.05(a)(5)

despite the obvious materiality of that information. Given the ease by which

this point could be clarified by the Texas Attorney General—thereby

enlightening federal courts, state courts, the Texas Legislature, the Texas

Governor, Texas voters, CRAs, consumers, debt collection agencies, health

care providers, health care insurers, etc.—the omission is telling.

This is particularly true given that the risk of harm to CDIA’s

members is decidedly different from pre-enforcement cases in which

standing was lacking because the plaintiff was not within the class of persons

to whom the statute in question applied, or the statute had such general

9

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applicability that the likelihood of its future application vis-à-vis the plaintiff

was aptly described as little more than mere possibility or speculation. Here,

in contrast, the statutory provision in question, § 20.05(a)(5), is expressly

directed to CRAs, i.e., CDIA’s members, and no one else. Cf. Contender

Farms, L.L.P. v. U.S. Dep’t of Agric., 779 F.3d 258, 264 (5th Cir. 2015) (“If a

plaintiff is an object of a regulation ‘there is ordinarily little question that the

action or inaction has caused him injury, and that a judgment preventing or

requiring the action will redress it.’”) (quoting Lujan, 504 U.S. at 561)).

Furthermore, CDIA alleges that some of its members currently include

information in their reports that § 20.05(a)(5) prohibits.

Nor, moreover, is the statute moribund such that standing is absent

because there is no reasonable fear of enforcement. See, e.g., Mayle v. State of

Illinois, 956 F.3d 966 (7th Cir. 2020) (plaintiff lacked standing to challenge

Illinois’ “archaic” adultery and fornication laws because they were no longer

enforced but remained in statute books “‘as a residue of legislative inertia.’”)

(quoting Peña v. Mattox, 84 F.3d 894, 900 (7th Cir. 1996)). To the contrary,

§ 20.05(a)(5) was enacted less than five years ago, because of, according to

Paxton, legislative “concern[s] about the damaging effects of credit of in-

sured individuals whose medical bills appeared past-due based on no fault

their own.” See Appellant’s Brief, at 5; see also 2019 Texas Senate Bill No.

1037, Senate Research Center Bill Analysis. 8

In the First Amendment context, courts addressing similar circum-

stances “will assume a credible threat of prosecution [or enforcement] in the

absence of compelling contrary evidence.” See Turtle Island Foods, S.P.C. v.

Strain, 65 F.4th 211, 218 (5th Cir. 2023); Barilla v. City of Houston, Texas, 13

_____________________

8

(https://capitol.texas.gov/tlodocs/86R/analysis/html/SB01037F.htm (last

visited July 24, 2023).

10

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F.4th 427, 433–34 (5th Cir. 2021); Speech First, Inc. v. Fenves, 979 F.3d 319,

335 (5th Cir. 2020); cf. Babbitt v. United Farm Workers Nat. Union, 442 U.S.

289, 302 (1979) (though criminal penalty provision had not yet been applied,

state had not disavowed any intention of invoking it). On this record, we will

do the same.

Accordingly, given that CDIA has sufficiently alleged that certain

members must either make material operational changes to comply with

§ 20.05(a)(5), or expose themselves to a substantial threat of enforcement

by the Texas Attorney General, pursuant to §§ 20.11 and 20.12, we agree that

CDIA has alleged the requisite “injury in fact” required for standing. See,

e.g., Abbott Labs. v. Gardner, 387 U.S. 136, 1553–54 (1967) (plaintiffs had

standing to challenge regulation that was directed at them and required sig-

nificant changes in everyday business practices because noncompliance ex-

posed them to the imposition of strong sanctions); MedImmune v. Genentech,

Inc., 549 U.S. 118, 129 (2007) (having to “[choose] between abandoning []

rights or risking prosecution—is ‘a dilemma that it was the very purpose of

the Declaratory Judgment Act to ameliorate’”) (quoting Abbott Labs., 387

U.S. at 152)).

Paxton’s assertion that the alleged injury is not traceable to actions by

the Texas Attorney General, but is instead “self-inflicted,” fails for

essentially the same reasons. See Federal Election Comm’n v. Cruz, 142 S. Ct.

1638, 1647 (2022) (injury remained fairly traceable to government actor

despite plaintiffs’ having knowingly triggered election statute because

plaintiffs were subject to the challenged provision and faced legal penalties

for non-compliance); id. (distinguishing Clapper on grounds that the plaintiffs

there could not show that they were likely to be subjected to the challenged

11

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government policy). 9

Finally, Paxton’s contention that enjoining the Texas Attorney

General’s enforcement of § 20.05(a)(5) will not redress CDIA’s injury—

because consumers will still be able to enforce the provision’s requirements

by suing, under §§ 20.08 and 20.09, for money damages—likewise lacks

merit. While it is true that an injunction directed to the Texas Attorney

General would not in itself preclude consumers from seeking relief under

§§ 20.08 and 20.09, it would reduce the total amount of risk and liability that

CDIA’s members face by failing to comply with § 20.05(a)(5). Such a

reduction satisfies the redressability required to establish standing. See

Sanchez v. R.G.L., 761 F.3d 495, 506 (5th Cir. 2014) (“When ‘establishing

redressability, [a plaintiff] need only show that a favorable ruling could

potentially lessen its injury; it need not definitively demonstrate that a victory

would completely remedy the harm.’”) (quoting Antilles Cement Corp. v.

Fortuno, 678 F.3d 310, 318 (1st Cir. 2012)). 10 And, if an injunction is upheld

_____________________

9

Paxton’s reliance on Clapper to support this argument is particularly problematic.

As explained therein, the plaintiffs in Clapper—various attorneys and human rights, labor,

legal, and media organizations—challenged a federal statute that allowed the United States

Attorney General and the Director of National Intelligence to obtain foreign intelligence

information by authorizing electronic surveillance of individuals who are not “United

States persons” and are reasonably believed to be located outside of the United States. The

plaintiffs, as “United States persons” were not the intended target of the statute. Finding

standing to be lacking, the Supreme Court emphasized that the alleged injury (the

likelihood that the plaintiffs’ communications with foreign contacts would be intercepted

at some point in the future) relied upon “highly speculative fear” and “a highly attenuated

chain of possibilities” that included the discretionary decisions and uncertain conduct of

multiple third parties. See Clapper, 568 U.S. at 402, 407–20. Additionally, even before the

statute in question was enacted, the plaintiffs in Clapper “had a similar incentive to engage

in many of the [‘costly and burdensome’] countermeasures” that they claimed were

necessitated by the challenged statute. Id. at 407, 417–18.

10

The parties’ briefs do not discuss whether, for purposes of evaluating standing,

the separate statutory enforcement provisions available to the Texas Attorney General and

consumers yield two separate injuries, rather than one. Nor is it apparent whether that

12

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against the Texas Attorney General on grounds of federal preemption, that

ruling ultimately may have estoppel effect in subsequent actions brought by

consumers.

For these reasons, we agree with the district court’s determination

that CDIA has the associational standing required by Article III. Specifically,

CDIA has alleged an “injury in fact” that is fairly traceable to the challenged

conduct of the defendant and is likely to be redressed by a favorable judicial

decision.

V.

Paxton also contests the district court’s sovereign immunity and

ripeness rulings. Regarding sovereign immunity, the district court

determined that the criteria for Ex parte Young’s exception to that immunity

—permitting suits for prospective injunctive relief against state officials

acting in violation of federal law—are satisfied. See Verizon Maryland, Inc. v.

Pub. Serv. Comm’n of Maryland, 535 U.S. 635, 645 (2002); Ex parte Young,

209 U.S. 123 (1908). Specifically, the Texas Attorney General is named in

his official capacity; CDIA alleges that § 20.05(a)(5) is preempted by the

Federal Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq., thus presenting

an ongoing violation of federal law; and the requested injunction—

prohibiting the Texas Attorney General from enforcing a preempted state

law—is properly characterized as prospective relief.

The district court concluded that CDIA’s claim is ripe for

adjudication because it involves the “purely legal question” of whether the

FCRA preempts § 20.05(a)(5), and CDIA has adequately alleged that its

_____________________

issue was presented to the district court. Accordingly, we note the question but do not

consider it further.

13

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No. 21-51038

members face hardship by being forced to either implement the measures

necessary for compliance with § 20.05(a)(5) or risk a state enforcement

action. Generally, a case is ripe when any remaining questions are purely legal

ones and no further factual development is required. Orix Credit All., Inc. v.

Wolfe, 212 F.3d 891, 895 (5th Cir. 2000). “The ripeness inquiry for an injury

that is predicated on threat of litigation “‘focuses on whether an injury that

has not yet occurred is sufficiently likely to happen to justify judicial

intervention.’” Id. at 897 (citing Chevron U.S.A., Inc. v. Traillour Oil Co., 987

F.2d 1138, 1153 (5th Cir. 1993)).”

In contesting Ex parte Young’s application to this dispute, Paxton

reiterates his assertion that CDIA has not alleged a sufficient threat of

enforcement by the Texas Attorney General. Paxton likewise maintains that

CDIA’s claim is not ripe for review for the same reasons that he contends

CDIA lacks standing. That is, he contends that CDIA’s alleged injury is

premised on a fear of enforcement that is not sufficiently likely to justify pre-

enforcement judicial review.

Given the intertwined nature of Paxton’s assertions of error, our

reasons for affirming the district court’s “standing” ruling likewise control

our assessment of Paxton’s sovereign immunity and ripeness challenges.

VI.

The State of Texas, through Attorney General Ken Paxton, appeals

the district court’s rulings denying his motion seeking dismissal on grounds

of sovereign immunity, standing, and ripeness. For the reasons stated herein,

we AFFIRM and REMAND for additional proceedings, including final

disposition of the preemption issue.

14

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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