The following published opinions were released by the U.S. Court of Appeals for the Fifth Circuit on August 25, 2008:

• Columbia Casualty Co. v. Georgia & Florida Railnet, Inc. (King, Higginbotham, Southwick, JJ.; opinion by Southwick, J.) (appeal from N.D. Tex.). Affirming district court’s decision after bench trial on a declaratory judgment action that railroad had no coverage for a former employee’s injury claims. The employee brought claims in Georgia state court under the Federal Employers Liability Act (”FELA”) and the Locomotive Boiler Inspection Act (”LBIA”), alleging that improperly designed and maintained locomotives caused high levels of diesel fumes and hazardous dusts to accumulate in the locomotive cabs where he worked, leading to respiratory maladies. The railroad’s policy issued by Columbia specifically excepted FELA claims from two relevant exclusions, but did not expressly except FELA claims from the exclusion for bodily injury resulting from “the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of ‘pollutants[.]’” Slip op. at 4. While the state court claim brought by the former employee was still pending, Columbia brought the federal court declaratory judgment action seeking a declaration that the employee’s inhalation damage claims were excluded from coverage. The district court granted declaratory judgment after a bench trial. The Fifth Circuit held that the declaratory judgment action was ripe for review, since it was apparent prior to resolution of the state court action that Columbia had no indemnification obligation; that to allow the FELA exceptions from two other exclusions to apply to the inhalation claim impermissibly would render the pollution exclusion meaningless; that there was no presumed prejudice to the railroad in the delay in Columbia’s disclaimer of coverage; and that Columbia’s reservation of rights and the timing of its disclaimer did not violate the Texas Insurance Code.
• In the Matter of: Southern Scrap Material Co. (Wiener, Barksdale, Dennis, JJ.; opinion by Dennis, J.) (appeal from E.D. La.). On interlocutory appeal, affirming district court’s judgment lifting Limitation Act stay to allow United States to bring a Wreck Act claim against Southern Scrap for full cost of removal of wrecked drydock from the New Orleans Inner Harbor Navigation Canal following Hurricane Katrina. The Fifth Circuit held that, viewing the facts in a light most favorable to the United States, the 1986 amendments to the Wreck Act allow the United States to bring an action seeking to hold Southern Scrap liable for the cost of removal of the sunken drydock, without being subject to the Limitation Act.
• Lisle v. Commissioner of Revenue (Higginbotham, Davis, Barksdale, JJ.; opinion by Davis, J.) (appeal from U.S. Tax Ct.). Vacating Tax Court’s judgment that the Lisles failed to report and pay taxes on approximately $1.3 million earned by Mr. Lisle as kickbacks in relation to various real estate transactions. The Fifth Circuit held that the Tax Court failed to give due regard to the Special Trial Judge’s factfindings and erred in issuing a judgment contrary to those findings.