United States Court of Appeals for the Fifth Circuit ____________
No. 24-40381
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Veronica L. Davis; Jeff Kitchen; Charlie Brown Heritage Foundation,
Plaintiffs—Appellants,
versus
CenturyLink, Incorporated; DirecTV; AT&T; Lumen Technologies; Central Telephone Company of Texas; CenturyTel Broadband Services, L.L.C., Defendants—Appellees.
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Appeal from the United States District Court for the Southern District of Texas USDC No. 3:22-CV-38
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Before Elrod, Chief Judge, and Davis and Ramirez, Circuit Judges. Per Curiam:*
Plaintiff-Appellant Veronica Davis, appearing pro se and as counsel to Plaintiff-Appellants the Charlie Brown Heritage Foundation (the Foundation) and Jeff Kitchen, seeks vacatur of every "ruling" by the _____________________
* This opinion is not designated for publication. See 5th Cir. R. 47.5. United States Court of Appeals
Fifth Circuit
FILED
April 4, 2025 Lyle W. Cayce Clerk
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magistrate judge and reversal of final judgments that granted Defendant- Appellees' Rule 12(b)(6) and Rule 56 motions. We AFFIRM.
I.
Davis is a lawyer who previously represented the Foundation and Kitchen in two separate lawsuits before the U.S. District Court for the Southern District of Texas. Both cases ended in summary judgment against Davis's clients after the district court declined to consider late-filed materials Davis submitted.1This Court affirmed both summary judgments along with the district court's decisions to strike the late filings, characterizing the latter ruling in the Foundation's case as "entirely appropriate."2 Davis lays blame for these unfavorable judgments on "faulty internet service" by Defendant-Appellees CenturyTel Broadband Services, LLC and Central Telephone Company of Texas (collectively, CenturyTel), which allegedly prevented her from timely e-filing her clients' summary-judgment evidence.3Davis and her clients seek to recover in this suit the same damages they sought in the dismissed cases. Davis also asserts claims against DirecTV, LLC, with which she "bundled" satellite television with CenturyTel internet and phone service, until terminating relationships with both in January 2020. She contends DirecTV agreed to zero out her _____________________
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account, but that either it or its parent company, AT&T Corp., improperly forwarded her account to debt collectors.4
In a series of rulings, the district court dismissed all claims presented under Rules 12(b)(6) and 56.5Davis raises three issues on appeal.6First, she seeks vacatur of every ruling the magistrate judge issued before he recused at Davis's urging. Second, she argues claim preclusion doesn't bar her claims against CenturyTel, notwithstanding her membership in a Settlement Class that released the CenturyTel entities sued here, In re CenturyLink Sales Practices & Securities Litigation (CenturyLink).7Third, Davis appeals dismissal of her claims against DirecTV and AT&T under Rule 12(b)(6). We review for abuse of discretion the district court's refusal to vacate the magistrate judge's rulings and review the dismissals de novo.8 _____________________
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II.
On July 13, 2022, District Judge Jeffrey V. Brown properly delegated to Magistrate Judge Andrew M. Edison all non-dispositive matters for decision and all dispositive matters for report and recommendation.9Over the ensuing nine months, Judge Edison presided over the case and issued two reports and recommendations on dispositive matters—CenturyTel's summary-judgment motion and DirecTV's and AT&T's Rule 12(b)(6) motion to dismiss. He also ruled sua sponte that Davis could not serve as counsel to her co-plaintiff clients should the case proceed to trial under Texas attorney ethics rules.10After these rulings and recommendations issued, Davis moved to recuse Judge Edison under 28 U.S.C. §§ 455(a), (b)(1), and (b)(3) due to his participation in court-mediated settlement negotiations to resolve the Foundation's prior case that ended in summary judgment. Judge Edison granted the motion and recused, citing 28 U.S.C. § 455(b)(1).11After he stepped aside, Davis moved to vacate all of Judge Edison's rulings and _____________________
F.4th 448, 453-54 (5th Cir. 2022) (stating review of motions to dismiss and for summary judgment is de novo).
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recommendations, as well as all judgments emanating from them.12Judge Brown denied the motion, which we review for abuse of discretion.13 Courts employ a three-part test to decide when vacatur should follow a § 455 violation.14That test considers "the risk of injustice to the parties in the particular case, the risk that the denial of relief will produce injustice in other cases, and the risk of undermining the public's confidence in the judicial process."15Applying those factors here, we find no abuse of discretion.
As to the first element, Davis faces minimal risk of prejudice with respect to Judge Edison's recommendations on the two dispositive motions. The portions of the recommendations to which Davis objects have received two layers of de novo review—first, by Judge Brown and, second, by this Court on appeal—and involve the straightforward application of well- established law to allegations accepted as true and material facts not genuinely disputed.16In addition,
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[d]ecades ago, this court held that where the merits of a ruling would be subject to de novo review—such as a summary judgment ruling—"the parties are guaranteed a fair, impartial review of the merits of the ruling," and that "[i]n cases where we would otherwise affirm such a ruling, little would be gained by vacating and remanding with instructions that it be essentially reinstated."17
Because today we affirm the district court on both motions, nothing would be gained by our "vacating and remanding with instructions" that the rulings be reinstated.18Likewise, nothing would be gained by vacating Judge Edison's order disqualifying Davis from serving as trial counsel: this case was not tried, so the order never operated to disqualify Davis or to prejudice her in any way. The first element thus militates against vacating Judge Edison's rulings and recommendations. Davis offers no reason to vacate under the test's second or third elements and we find none in the record.19Judge Brown's denial of Davis's motion to vacate is AFFIRMED.
III.
We next address preclusion of Davis's claims against CenturyTel and begin with the CenturyLink litigation, which centralized various consumer _____________________
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class actions in the U.S. District Court for the District Minnesota.20There, a putative class alleged CenturyLink, Inc. and its affiliates (including the CenturyTel defendants in this case) engaged in bait-and-switch sales tactics, causing inaccurate billings, unauthorized charges, faulty service, and illegal debt collections. Much like Davis's complaint, CenturyLink's asserts claims under federal and state consumer-protection laws, breach of contract, negligent misrepresentation, and fraudulent inducement.21 In October 2019, the CenturyLink parties resolved their differences and submitted an executed Settlement Agreement and Release to the court. That Agreement defines the "Settlement Class" as:
All persons or entities in the United States who are identified by CenturyLink as a residential or small business customer and who, during the Class Period, had an account for local or long distance telephone, internet, or television services with one or more of the Operating Companies. Excluded from the class are
. . . persons who timely and validly request exclusion from the Settlement Class.
It sets the "Class Period" as "[b]etween January 1, 2014 and the date of entry of the Preliminary Approval Order," which entered on January 24, 2020. In that Preliminary Approval Order, the court provisionally certified the Settlement Class as set forth above, established a class-notification program, _____________________
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and provided an opt-out procedure.22After notification to the class and a fairness hearing, it entered final approval of the Settlement Agreement and Release on December 4, 2020. The final approval order binds absent class members who did not validly opt out and releases CenturyLink and its affiliates from liability for future claims "arising out of or asserted in" the case, as well as "all claims released under the Settlement Agreement,"
consisting of:
[l]iabilities, claims, cross-claims, causes of action, rights, actions, suits, debts, liens, contracts, agreements, damages, costs, attorneys' fees . . . , losses, expenses, obligations, or demands, of any kind whatsoever, whether known or unknown, existing or potential, or suspected or unsuspected . . . which Settlement Class Members have or may claim now or in the future to have, based on facts that occurred during the Class Period that were alleged or asserted against any of the Released Parties in [CenturyLink] or that could have been alleged or asserted against any of the Released Parties in [CenturyLink.] A Final Judgment reiterating the broad terms of the release was entered on December 14, 2020.
Davis received notice of the settlement and submitted a Claim Form on June 23, 2020. In it, she sought $2,000 for overcharges and $1,165,000 for the Foundation and Kitchen losses. A declaration by the Settlement Administrator states that Davis did not opt out of the Settlement Class and was issued a check for $67.54 in settlement of her CenturyLink claims. _____________________
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A.
Davis brought this suit eighteen months later, in February 2022. The operative complaint mirrors CenturyLink's, even adopting verbatim some of its allegations. CenturyTel moved to dismiss under Rule 12(b)(6), arguing Davis's claims were precluded by virtue of her membership in the CenturyLink Settlement Class. Davis disagreed because, in her view, (1) none of the parties in this case appeared in the CenturyLink action, (2) which was settled rather than fully litigated with "insufficient identity between" these and the CenturyLink claims; and (3) she opted out of the Settlement Class, citing an e-mail to the Settlement Administrator dated February 13, 2021— two months after the CenturyLink Final Judgment was entered.23 Judge Edison converted CenturyTel's motion to one for summary judgment and granted Davis time to file responsive materials.24Davis submitted a "Further Response" and exhibits, though none materially augmented her principal opposition.
On January 30, 2023, Judge Edison recommended that CenturyTel's motion be granted. Davis timely objected to the recommendation.25Judge Brown conducted a de novo review of the portions of the recommendation _____________________
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Davis objected to, overruled the objections, and dismissed Davis's claims against CenturyTel with prejudice.26
B.
On appeal, Davis argues that Judge Edison's conversion of CenturyTel's Rule 12(b)(6) motion to one for summary judgment was improper because res judicata cannot be decided on a motion to dismiss.
"Generally, a party cannot base a Rule 12(b)(6) motion on res judicata. That doctrine must be pleaded as an affirmative defense. Yet, if the trial court has treated the 12(b)(6) motion as one for summary judgment, its dismissal under 12(b)(6) is not reversible error."27Davis offers no contrary authority. Turning to her substantive arguments, "a final judgment on the merits of an action precludes the parties or their privies from relitigating issues that were or could have been raised in that action."28"A claim in a subsequent suit will be barred under res judicata principles if: (1) the prior suit involved identical parties; (2) the prior judgment was rendered by a court of competent jurisdiction; (3) the prior judgment was a final judgment on the merits; and (4) the same claim or cause of action was involved in both cases."29Davis challenges the first and fourth elements.30 _____________________
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The first element is straightforward: the defendants in this suit participated as Released Parties in the CenturyLink settlement, and Davis was a CenturyLink Settlement Class Member, both by its class definition and by virtue of participating in the class settlement.
Davis, however, argues she was not a Settlement Class Member because she opted out. We disagree. When submitting her claim to the Settlement Administrator, Davis included with her Claim Form a fourteen- page "Original Complaint" bearing the CenturyLink case caption. This
"Original Complaint" details the Foundation and Kitchen litigation losses and asks for contingent exclusion from the Settlement Class "if any cause of action pled herein exceeds the scope of the settlement provisions[.]" Such equivocation fails under the Preliminary Approval Order, which requires that opt outs be signed by the class member and state "the requestor does not wish to participate in the Settlement."31Moreover, Davis submitted her contingent opt out with her Claim Form, which under the terms of the _____________________
challenges. But Davis failed to raise these issues with the district court, so she waived them. Cupit, 28 F.3d at 535 n.5; Newby v. Enron Corp., 394 F.3d 296, 309 (5th Cir. 2004) (holding in appeal by class-action objectors that "[f]ailure to raise a due process objection before a district court waives that objection on appeal."). Even absent waiver, however, Davis failed to carry her burden of proving a due-process violation. Richardson v. Wells Fargo Bank, N.A., 839 F.3d 442, 448 (5th Cir. 2016). The record evidence is undisputed that the class representatives adequately represented the Settlement Class and that Davis received
"'notice plus an opportunity to be heard and participate in the litigation, whether in person or through counsel.'" See Hunter v. Transamerica Life Ins. Co., 498 F. App'x 430, 435 (5th Cir. 2012) (per curiam) (quoting Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 812 (1985)); In re CenturyLink Sales Pracs. & Sec. Litig., 2020 WL 7133805, at *14-17 (evaluating and issuing findings on settlement-class certification and notification, as well as on the adequacy of class settlement and class representation).
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Settlement Agreement and Release invalidated any accompanying request for exclusion. Given the size of the CenturyLink Settlement Class (17.2 million members), "the court and parties should not have to intuit an opt out from vague statements made in one of thousands of filings before the court."32As Davis did not validly opt out of the Settlement Class, the parties in this case and CenturyLink are the same.33
Davis argues under the test's fourth element that her claims and those in CenturyLink differ. The fourth element has never required the complete identity Davis urges, however.34"This court applies a 'transactional test' to make this determination, focusing on whether the cases 'are based on the same nucleus of operative facts.'"35Factors include "whether the facts are related in time, space, origin, or motivation, whether they form a convenient trial unit, and whether their treatment as a unit conforms to the parties' expectations or business understanding or usage."36
There exists a common nucleus of operative facts here. Davis's allegations replicate those asserted by the Settlement Class; a class _____________________
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representative lodged fact allegations parallel to hers;37Davis submitted to the CenturyLink Settlement Administrator the same claims she now asserts; and the conduct at issue took place during the same time period.38Res judicata thus precludes Davis's claims against CenturyTel. The dismissal with prejudice is AFFIRMED.39
IV.
Davis seeks to hold DirecTV and AT&T liable as principals for the actions of their alleged agents—CenturyTel and two debt collectors not party to this appeal, Credence Resource Management and Sequeim Asset _____________________
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Solutions, LLC. Her claims arise under the TIB, FDCPA, FCRA, and
TDTPA.40
DirecTV and AT&T moved to dismiss under Rule 12(b)(6). Judge Edison recommended dismissal for failure to state a claim for several reasons. First, he found the allegations of principal-agency relationships conclusory and insufficient as a matter of law. Second, neither DirecTV nor AT&T was alleged to be a "debt collector" to whom the FDCPA applies.41Third, he concluded the FCRA does not create a private right of action. Finally, he found Davis's TDTPA claim barred by that law's two-year limitations period.42Davis objected and, after reviewing de novo the portions of the recommendation Davis raised, Judge Brown adopted the recommendation as his own and granted the motion to dismiss.
Davis's principal brief fails to challenge the reasons for these dismissals. It asks us to "assume an implied agency relationship," which falls far short of the pleading requirements of Ashcroft v. Iqbal and Bell Atlantic Corp. v. Twombly.43The brief also does not dispute that the FCRA creates no private right of action; nor does it address the FDCPA's application to _____________________
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"debt collectors." It barely mentions Davis's TDTPA claim and, then, offers no coherent argument explaining why the claim isn't barred by limitations. Having been presented no ground to question the district court's dismissal of DirecTV and AT&T, we AFFIRM.