Franciscan Alliance v. Becerra

47 F.4th 368
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 26, 2022
Docket21-11174
StatusPublished
Cited by25 cases

This text of 47 F.4th 368 (Franciscan Alliance v. Becerra) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franciscan Alliance v. Becerra, 47 F.4th 368 (5th Cir. 2022).

Opinion

Case: 21-11174 Document: 00516449797 Page: 1 Date Filed: 08/26/2022

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

FILED August 26, 2022 No. 21-11174 Lyle W. Cayce Clerk

Franciscan Alliance, Incorporated; Christian Medical and Dental Society; Specialty Physicians of Illinois, L.L.C.,

Plaintiffs—Appellees,

versus

Xavier Becerra, Secretary, U.S. Department of Health and Human Services; United States Department of Health and Human Services,

Defendants—Appellants,

American Civil Liberties Union of Texas; River City Gender Alliance,

Intervenor Defendants—Appellants.

Appeal from the United States District Court for the Northern District of Texas USDC No. 7:16-CV-54 Case: 21-11174 Document: 00516449797 Page: 2 Date Filed: 08/26/2022

No. 21-11174

Before Elrod, Willett, and Engelhardt, Circuit Judges. Don R. Willett, Circuit Judge: This is the third time this case has reached us. 1 Last time we remanded to the district court so it could consider whether, in light of recent developments, Plaintiffs (collectively Franciscan Alliance) should have been granted a permanent injunction, and not just vacatur of the challenged regulation. On remand, the district court granted Franciscan Alliance’s motion, permanently enjoining the United States Department of Health and Human Services (HHS) from requiring Franciscan Alliance to perform gender-reassignment surgeries or abortions in violation of its sincerely held religious beliefs. HHS and the Intervenor Defendants—the American Civil Liberties Union of Texas, and River City Gender Alliance (collectively ACLU)— argue that the permanent injunction was improper. They contend that Franciscan Alliance’s claims are moot, it was improper to award relief not requested in the complaint, and Franciscan Alliance failed to show it would be irreparably harmed absent an injunction. While we agree with Appellants that we must DISMISS Franciscan Alliance’s APA claim as moot, we AFFIRM the district court’s judgment in all other respects. I Section 1557 of the Patient Protection and Affordable Care Act prohibits health care programs that receive federal funds from discriminating against patients on the basis of sex. 2 Section 1557 incorporates Title IX’s

1 See Franciscan All., Inc. v. Cochran, No. 7:16-CV-108, ECF 82 (June 30, 2017); Franciscan All., Inc. v. Becerra, 843 F. App’x 662 (5th Cir. 2021) (per curiam). 2 Pub. L. No. 111-148, tit. I, § 1557, 124 Stat. 119, 260 (2010) (codified at 42 U.S.C. § 18116).

2 Case: 21-11174 Document: 00516449797 Page: 3 Date Filed: 08/26/2022

definition of prohibited sex discrimination. 3 The Secretary of HHS has authority to issue regulations to implement Section 1557. 4 In May 2016, HHS issued a rule interpreting Section 1557’s prohibition of “discrimination on the basis of sex.” 5 It defined sex discrimination to include discrimination on the basis of “termination of pregnancy” and “gender identity.” 6 Franciscan Alliance claimed the rule violated the Administrative Procedure Act (APA) by defining “sex discrimination” inconsistently with Title IX. Franciscan Alliance also claimed that the rule violated the Religious Freedom Restoration Act (RFRA) by forcing it to perform abortions and gender-reassignment surgeries inconsistent with its sincerely held religious beliefs. The district court issued a nationwide preliminary injunction barring enforcement of the challenged parts of the 2016 Rule. The case was stayed to give HHS time to reconsider the 2016 Rule. Before HHS had completed its review, the parties jointly moved to lift the stay, which the district court granted. The district court then granted Franciscan Alliance’s motion for summary judgment and vacated the offending provisions of the 2016 Rule. But it declined to issue an injunction because it found there was no indication that, if the rule was vacated, HHS would bring an enforcement action against Franciscan Alliance. Franciscan Alliance timely appealed the denial of permanent injunctive relief.

3 Id. § 1557(a) (citing 42 U.S.C. § 2000d et seq.). 4 Id. § 1557(c). 5 Nondiscrimination in Health Programs, 81 Fed. Reg. 31375, 31376 (May 18, 2016) (formerly codified at 45 C.F.R. § 92.4 (2016)). 6 Id.

3 Case: 21-11174 Document: 00516449797 Page: 4 Date Filed: 08/26/2022

Shortly thereafter, HHS finalized a new rule implementing Section 1557 (the “2020 Rule”). 7 The 2020 Rule adopted Title IX’s religious exemption and repealed the 2016 Rule’s definition of sex discrimination. 8 But HHS declined to replace it with a new definition, reasoning that the Supreme Court’s impending decision in Bostock would “likely have ramifications for the definition of ‘on the basis of sex’ under Title IX.” 9 Just three days after HHS issued the 2020 Rule, the Supreme Court decided Bostock, holding that Title VII’s prohibition of discrimination “because of” sex made it unlawful to terminate employees for being homosexual or transgender. 10 Bostock triggered multiple lawsuits challenging the 2020 Rule. Most relevant here, two courts entered nationwide injunctions preventing much of the 2020 Rule from going into effect, effectively reinstating portions of the 2016 Rule (the Whitman and Whitman-Walker opinions). 11 Both courts acknowledged they had no power to undo the district court’s vacatur in this case. 12 But in effect they did just that. While those courts did not directly resurrect the 2016 Rule’s prohibition on “gender identity” discrimination, they did reanimate the rule’s “sex-stereotyping” prohibition. 13 Both courts further reasoned that, in light of Bostock, sex-stereotyping discrimination

7 85 Fed. Reg. 37160 (June 19, 2020). 8 Id. at 37162, 37168. 9 Id. at 37168. 10 Bostock v. Clayton Cnty., 140 S. Ct. 1731, 1737 (2020). 11 Whitman-Walker Clinic, Inc. v. HHS, 485 F. Supp. 3d 1, 60 (D.D.C. 2020); Walker v. Azar, 480 F. Supp. 3d 417, 420 (E.D.N.Y. 2020). 12 Whitman-Walker, 485 F. Supp. 3d at 26; Walker, 480 F. Supp. 3d at 427. 13 Whitman-Walker, 485 F. Supp. 3d at 64; Walker, 480 F. Supp. 3d at 430.

4 Case: 21-11174 Document: 00516449797 Page: 5 Date Filed: 08/26/2022

encompasses gender identity discrimination. 14 Whitman-Walker also enjoined the 2020 Rule’s incorporation of Title IX’s religious exemption, 15 even though the district court here held that the 2016 Rule was unlawful for not providing such an exemption. Also while Franciscan Alliance’s appeal was pending, President Biden issued an executive order declaring that his administration would apply Bostock’s interpretation of Title VII to other statutes prohibiting sex discrimination, including Title IX. 16 He instructed each agency to consider whether new actions are necessary to implement Bostock’s definition of sex discrimination. 17 HHS is in the process of reconsidering the 2020 Rule. We held oral argument on March 2, 2021. We remanded the case to the district court because “the legal landscape ha[d] shifted significantly” since the district court denied injunctive relief. 18 The 2020 Rule, the Bostock decision, the Walker and Whitman-Walker injunctions, and the new administration’s interpretation of Section 1557 all occurred after the district court issued its order. While the case was back with the district court, HHS issued a “Notification of Interpretation and Enforcement” (the 2021 Interpretation). 19 The 2021 Interpretation stated that in light of Bostock,

14 Whitman-Walker, 485 F. Supp. 3d at 39–42; Walker, 480 F. Supp. 3d at 429–30. 15 Whitman-Walker, 485 F. Supp. 3d at 64. 16 Exec.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Untitled Case
D. New Hampshire, 2026
Spirit Aerosystems v. Paxton
142 F.4th 278 (Fifth Circuit, 2025)
Anibowei v. Lynch
N.D. Texas, 2024
Crocker v. Austin
115 F.4th 660 (Fifth Circuit, 2024)
Mock v. Garland
N.D. Texas, 2024
Deanda v. Becerra
96 F.4th 750 (Fifth Circuit, 2024)
VanDerStok v. Garland
86 F.4th 179 (Fifth Circuit, 2023)
VanDerStok v. Garland
N.D. Texas, 2023

Cite This Page — Counsel Stack

Bluebook (online)
47 F.4th 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franciscan-alliance-v-becerra-ca5-2022.