Justia Civil Procedure Opinion Summaries

The case involves a dispute between the law firm Abraham Watkins Nichols Agosto Aziz & Stogner and its former associate, Edward Festeryga. Abraham Watkins terminated Festeryga’s employment after discovering that he attempted to take clients and firm files to a new firm. Abraham Watkins sued Festeryga in Texas state court for conversion, breach of fiduciary duty, and tortious interference with contract. Festeryga moved to dismiss the suit under Texas’s anti-SLAPP statute, the Texas Citizens Participation Act (TCPA), which stayed the expedited discovery sought by Abraham Watkins. Despite agreeing to produce certain documents, Festeryga filed a notice of removal to federal court, claiming diversity jurisdiction as a Canadian citizen.The United States District Court for the Southern District of Texas remanded the case back to state court. The district court did not address whether Festeryga had shown diversity of citizenship but concluded that Festeryga waived his right to remove by participating in state court proceedings, specifically by filing a TCPA motion to dismiss. The district court found that this action demonstrated an intent to invoke the jurisdiction of the state court.The United States Court of Appeals for the Fifth Circuit reviewed the case to determine if it had appellate jurisdiction over the remand order. The court concluded that it did not have jurisdiction, citing its precedent in In re Weaver, which held that waiver-based remand orders are jurisdictional under 28 U.S.C. § 1447(c) and thus unappealable under § 1447(d). The court noted that although it disagreed with the reasoning in Weaver, it was bound by the rule of orderliness to follow the precedent. Consequently, the Fifth Circuit dismissed the appeal for lack of appellate jurisdiction. View "Abraham Watkins Nichols Agosto Aziz & Stogner v. Festeryga" on Justia Law

A nonpartisan candidate filed a complaint challenging the primary election ballot in Hawaii, arguing that the requirement for voters to select a political preference violated the Hawaii Constitution and various state statutes. The plaintiff sought an order to redesign the ballot and declare the current ballot invalid.The State of Hawaii, Office of Elections, and the Chief Election Officer moved to dismiss the complaint for failure to state a claim or lack of jurisdiction. The Supreme Court of Hawaii reviewed the case and found that the plaintiff's claims under HRS §§ 11-173.5, 11-174.5, and 91-14 were not valid because no election results had been posted, which is a prerequisite for these statutes. Additionally, the court found that the plaintiff did not have standing to challenge all statewide ballots under HRS § 11-172, as he was only a candidate in the Mayor's race in Honolulu. The court also determined that the plaintiff's complaint did not state a claim under HRS § 11-172 because the alleged ballot defects would not impact his nonpartisan race.The Supreme Court of Hawaii dismissed the election contest claims for failure to state a claim. The court also construed the complaint as a petition for a writ of mandamus but denied the petition, finding that the plaintiff did not establish a clear and indisputable right to the relief requested or a lack of other means to address the alleged wrong. The court entered judgment in favor of the defendants. View "Dicks v. State " on Justia Law

Michele Tourangeau filed a complaint against her former employer, Nappi Distributors, alleging nine employment-related claims. Nappi moved for summary judgment on all claims, but the District Court denied the motion for all but one claim, leading to a jury trial. The jury found in favor of Nappi on all claims. Tourangeau then filed a motion for a new trial, citing juror bias and errors in jury instructions, which the District Court denied.Tourangeau appealed the District Court's decision to the United States Court of Appeals for the First Circuit. She argued that the District Court erred in not disqualifying a juror who allegedly displayed bias and failed to answer voir dire questions truthfully. The District Court had previously determined that the juror's conduct and Facebook activity did not demonstrate bias sufficient to warrant disqualification. The appellate court found no abuse of discretion in the District Court's handling of the juror bias allegations, noting that the District Court had appropriately assessed the juror's behavior and responses.Tourangeau also challenged the jury's verdict on one of her Equal Pay Act (EPA) claims, arguing that the verdict was against the great weight of the evidence and that the District Court erred in not giving a specific jury instruction. The appellate court upheld the District Court's decision, finding that Nappi had provided sufficient evidence that the pay differential was based on a business decision unrelated to sex. The court also agreed with the District Court's refusal to give the requested jury instruction, as there was no evidence of a prior illegal practice of gender discrimination in hiring.The United States Court of Appeals for the First Circuit affirmed the District Court's judgment, concluding that there was no reversible error in the handling of the juror bias allegations or the EPA claim. View "Tourangeau v. Nappi Distributors" on Justia Law

The case involves Dianna Murphy, who sued Thomas Schaible, her financial advisor and brother-in-law, for breaching his fiduciary duty. Thomas managed an investment account jointly held by Dianna and her husband Michael. Amidst marital difficulties, Michael instructed Thomas to transfer $2.5 million from the joint account to a bank account in Colorado, which Michael then moved to a Mexican account solely under his control. Dianna was not informed of this transfer and claimed that Thomas failed to protect her interests, despite knowing about the couple's marital issues and her interest in dividing their assets.The United States District Court for the District of Colorado heard the case. The jury found Thomas liable for breaching his fiduciary duty and awarded Dianna $600,000 in economic damages. Thomas filed a motion for judgment as a matter of law under Fed. R. Civ. P. 50(b), arguing that Dianna suffered no legally compensable injury and that he did not breach any fiduciary duty by following Michael’s instructions. The district court denied this motion and awarded Dianna prejudgment interest.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court affirmed the district court’s judgment, holding that Thomas breached his fiduciary duty by failing to inform Dianna of the transfer and not advising her on steps to protect her interests. The court also upheld the award of prejudgment interest, rejecting Thomas’s procedural arguments. The court emphasized that fiduciary duties include the duty to inform and act impartially, which Thomas failed to do. The judgment against Thomas was affirmed, and the award of prejudgment interest was deemed procedurally sound. View "Murphy v. Schaible" on Justia Law

The case involves a qui tam action under the False Claims Act (FCA) brought by Relators against Great American Insurance Company (GAIC) and Native American Services Corporation (NASCO). The Relators allege that GAIC and NASCO fraudulently took control of DWG & Associates, Inc. (DWG), a company that had graduated from the Small Business Administration's (SBA) 8(a) program but was still performing on 8(a) contracts. The 8(a) program is designed to help small, disadvantaged businesses compete for federal contracts. DWG, initially owned and controlled by a disadvantaged individual, Gose, lost its eligibility when GAIC and NASCO allegedly took over its ownership and control without notifying the SBA or seeking a waiver, as required by the program's regulations.The United States District Court for the Middle District of Florida dismissed the Relators' claims with prejudice. The court found that DWG, having graduated from the 8(a) program, was no longer a "participant" and thus not subject to the program's ownership and control requirements. Consequently, the court ruled that Relators failed to allege any false claims. Additionally, the court held that fraudulent inducement related to bidding on government contracts was not actionable under the FCA and that Relators failed to meet the particularity requirements of Rule 9(b) for pleading fraud.The United States Court of Appeals for the Eleventh Circuit reversed the District Court's decision. The appellate court held that a business that has graduated from the 8(a) program but is still performing on 8(a) contracts remains a "participant" and is subject to the program's ownership and control requirements. The court further held that submitting bids and claims for payment under these circumstances without notifying the SBA or obtaining a waiver could constitute an actionable claim under the FCA. The court also found that Relators' complaint met the particularity requirements of Rule 9(b) by providing sufficient details about the alleged fraudulent conduct, including the specific contracts, task orders, and the date DWG became ineligible to bid. The case was remanded for further proceedings consistent with the appellate court's opinion. View "Berry v. Native American Services Corporation" on Justia Law

Peter Quach filed a lawsuit against California Commerce Club (Commerce Club) after being terminated from his job at the casino where he had worked for nearly 30 years. Quach's complaint included claims of wrongful termination, age discrimination, retaliation, and harassment, and he demanded a jury trial. Commerce Club had previously provided Quach with a signed arbitration agreement from 2015, which mandated binding arbitration for employment-related disputes. Instead of moving to compel arbitration, Commerce Club answered the complaint and engaged in extensive discovery, including propounding interrogatories and taking Quach’s deposition.The Los Angeles County Superior Court denied Commerce Club’s motion to compel arbitration, finding that Commerce Club had waived its right to arbitrate by engaging in litigation for 13 months. The court noted that Commerce Club had actively participated in discovery and requested a jury trial, actions inconsistent with an intent to arbitrate. Commerce Club appealed, and the Second Appellate District, Division One, reversed the trial court’s decision, holding that Quach had not shown sufficient prejudice from Commerce Club’s delay in seeking arbitration.The Supreme Court of California reviewed the case and abrogated the state’s arbitration-specific prejudice requirement, aligning with the U.S. Supreme Court’s decision in Morgan v. Sundance, Inc. The court held that under California law, as under federal law, courts should apply the same principles to determine waiver of the right to compel arbitration as they do for other contracts. The court concluded that Commerce Club had waived its right to compel arbitration by engaging in litigation conduct inconsistent with an intent to arbitrate. The judgment of the Court of Appeal was reversed, and the case was remanded for further proceedings consistent with this decision. View "Quach v. Cal. Commerce Club, Inc." on Justia Law

The plaintiffs, Louis Paolino and Marie E. Issa, own property in Cumberland, Rhode Island, adjacent to a site operated as an automobile recycling business. The neighboring property, owned by J.F. Realty, LLC and operated by LKQ Route 16 Used Auto Parts, Inc., was found to be contaminated. The Department of Environmental Management (DEM) required remediation, leading the defendants, Commonwealth Engineers & Consulting, Inc., to design a stormwater remediation system. Plaintiffs alleged that this system discharged contaminated water onto their property and encroached on it.In prior litigation, the plaintiffs sued the Ferreira defendants in state court for trespass due to contamination. The case was removed to federal court, where federal claims were dismissed, and state claims were remanded. A jury found encroachment but awarded only nominal damages. The plaintiffs sought injunctive relief, which was partially granted. On appeal, the Rhode Island Supreme Court affirmed the denial of injunctive relief for the encroachment, deeming it de minimis, but ordered a new trial on other issues. In a subsequent trial, the jury found no continuing trespass. Plaintiffs also pursued a Clean Water Act claim in federal court, which was dismissed after a bench trial.The Rhode Island Supreme Court reviewed the Superior Court's grant of summary judgment in favor of Commonwealth. The court affirmed the judgment, holding that the issues in the current case were precluded by collateral estoppel. The court found that the issue of contamination had been litigated and decided in prior state and federal actions, and the encroachment was previously determined to be de minimis. Thus, the plaintiffs were barred from relitigating these issues. View "Paolino v. Commonwealth Engineers & Consulting, Inc." on Justia Law

In 2018, a juvenile court removed seven children from their biological parents' custody due to abuse and neglect. The children were returned in early 2019 but removed again a few months later after continued issues. The five oldest children were eventually placed with their grandparents in New Mexico, while the two youngest, Alice and Liam, were placed with a foster family in Utah. In October 2020, the juvenile court held a termination trial to determine the best permanent placement for Alice and Liam. The court decided it was in their best interest to terminate the biological parents' rights and allow the foster family to adopt them.The biological parents appealed the decision. The Utah Court of Appeals reversed the termination order, concluding that the juvenile court's decision was against the clear weight of the evidence. The appellate court also held that termination must be "materially better" than any other option. Because it reversed on the merits, the court of appeals did not address other issues raised by the parents, such as ineffective counsel.The Utah Supreme Court reviewed the case and found several errors in the court of appeals' reasoning. First, it rejected the "materially better" standard, stating that the correct standard is whether termination is "strictly necessary" to promote the child's best interest. Second, the court of appeals exceeded its scope by reweighing evidence and considering evidence outside the record. Third, the court of appeals erred in concluding that the juvenile court's decision was against the clear weight of the evidence. The Utah Supreme Court reversed the court of appeals' decision and remanded the case for consideration of the remaining issues in the biological parents' initial appeal. View "In re A.H." on Justia Law

Neu Cloud, a joint venture between IBM, TeamSun, and Zhuangyan Hao, alleged that IBM misappropriated its trade secrets. Neu Cloud claimed that IBM used confidential customer information, obtained through special bids submitted by Neu Cloud, to benefit a competing joint venture, INSPUR Power. This alleged misappropriation occurred between 2015 and 2018, leading to a significant decline in Neu Cloud's business.Neu Cloud initially filed a lawsuit in New York state court, asserting state-law claims such as unfair competition and breach of contract. The New York Supreme Court dismissed the state complaint on various grounds, including timeliness and lack of personal jurisdiction over IBM China. Shortly after, Neu Cloud filed a federal lawsuit in the United States District Court for the Southern District of New York, asserting a single cause of action under the Defend Trade Secrets Act (DTSA). The district court dismissed the federal complaint, ruling that the DTSA claim was both untimely and inadequately pleaded, and that there was no personal jurisdiction over IBM China.On appeal, the United States Court of Appeals for the Second Circuit reviewed the case. The court affirmed the district court's dismissal, but on the alternative ground of res judicata. The Second Circuit held that the New York Supreme Court's prior judgment barred Neu Cloud from asserting its DTSA claim in federal court. The court concluded that the state and federal claims arose from the same series of transactions and that the state court was competent to adjudicate the DTSA claim. Therefore, the judgment of the district court was affirmed on the basis of res judicata. View "Beijing Neu Cloud v. IBM Corp." on Justia Law

The case involves a public-records request submitted by David Armiak and the Center for Media and Democracy to the Ohio Attorney General. The request sought documents related to the Republican Attorneys General Association (RAGA) and the Rule of Law Defense Fund (RLDF). The Attorney General refused to produce the documents, arguing they were not public records as defined by Ohio law. Armiak then filed a mandamus action to compel the production of the documents.The Tenth District Court of Appeals handled the initial proceedings. During discovery, the court allowed Armiak to conduct broad discovery to test the Attorney General's claim that the documents were not public records. This included deposing the Attorney General and obtaining extensive documents and interrogatories. The Attorney General sought a protective order to limit this discovery, arguing it was overly burdensome and interfered with his constitutional duties. The Tenth District denied the protective order and allowed the broad discovery to proceed.The Supreme Court of Ohio reviewed the case to determine whether the discovery order was appealable. The court found that the order met the criteria for a provisional remedy under R.C. 2505.02(B)(4), as it determined the action regarding the discovery dispute and prevented a judgment in favor of the Attorney General. The court also found that the Attorney General would not be able to obtain effective relief through an appeal following final judgment, as the discovery process itself would cause irreparable harm. Consequently, the Supreme Court of Ohio denied Armiak's motion to dismiss the appeal and set the matter for oral argument. View "State ex rel. Ctr. for Media & Democracy v. Yost" on Justia Law