The Fifth Circuit Court of Appeals has officially declined to rehear a high-stakes legal challenge involving short-term rentals in New Orleans, leaving an earlier panel ruling intact after a deeply divided court split down the middle.
October 30 Order Halts En Banc Appeal
In an order filed on October 30, 2026, the United States Court of Appeals for the Fifth Circuit denied a petition for rehearing en banc in the case of Bodin v. New Orleans (No. 25-30524), as documented on Justia Law. The underlying litigation, which traces back to a panel opinion issued on August 5, 2026, pits property owners and booking platforms against municipal regulations in Louisiana.
A Razor-Thin Nine-to-Eight Judicial Split
The refusal to reconsider the case came after the court was polled at the request of one of its members. A majority of the active judges ultimately voted against granting an en banc rehearing, though the final tally exposed a stark ideological and judicial fracture within the New Orleans-based appellate court. Eight judges voted in favor of taking up the case again, while nine voted to deny the petition.
Can New Orleans harshly limit short term rentals like AirBNB? Fifth Circuit said yes. And then it declined to go to full court review by *one* vote. The vote was 8-9 against. If Judge Southwick 's successor is more like fellow Mississippian Judge Wilson, the outcome would change pic.twitter.com/6he0tEmtYR
How the Bench Voted on Rehearing
Chief Judge Elrod, along with Judges Jones, Smith, Willett, Ho, Duncan, Engelhardt, and Oldham, voted in favor of the en banc poll. Conversely, Judges Stewart, Richman, Southwick, Haynes, Graves, Higginson, Wilson, Douglas, and Ramirez voted against rehearing the matter.
Plaintiffs Face City Regulations Without Full Court Review
The lawsuit features a diverse array of plaintiffs-appellants, including Bret Bodin, Brad Newell, Darian Morgan, Michael Rosas, Mid-City Mike Rentals, L.L.C., and Airbnb, Incorporated. They are locked in a legal battle against the City of New Orleans over municipal rules governing the short-term rental market.
Federal Pathways Narrow for Property Owners
The appeal stems from an earlier decision out of the United States District Court for the Eastern District of Louisiana under docket number 2:25-CV-329. With the full circuit court declining to step in, the immediate avenue for appeal within the federal appellate framework narrows significantly, leaving property owners and platform operators to deal with the regulations upheld by the prior panel's rulings.
