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Shapira sued his former employer, Lifetech, for breach of an employment contract. The parties presented their evidence at a bench trial and rested. Before Shapira submitted his closing argument brief, he requested that the court dismiss the case under Code of Civil Procedure, section 581(e), which provides, “After the actual commencement of trial, the court shall dismiss the complaint . . . with prejudice, if the plaintiff requests a dismissal.” The court denied Shapira’s request. After the parties filed their closing argument briefs, the court entered a judgment in Lifetech’s favor, held that Lifetech was the prevailing party under Civil Code section 1717, and awarded Lifetech costs and $137,000 in attorney fees. Shapira appealed the attorney fees award. The court of appeal reversed. The court should have dismissed the case under section 581(e), so the award of attorney fees was erroneous under Civil Code section 1717(b)(2), which states, “Where an action has been voluntarily dismissed or dismissed pursuant to a settlement of the case, there shall be no prevailing party for purposes of this section.” Section 581(e) provides a right to dismiss a case before the completion of trial. View "Shapira v. Lifetech Resources" on Justia Law

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University Park hired Linear as its Village Manager through May 2015, concurrent with the term of its Mayor. In October 2014 the Village extended Linear’s contract for a year. In April 2015 Mayor Covington was reelected. In May, the Board of Trustees decided that Linear would no longer be Village Manager. His contract provides for six months’ severance pay if the Board discharges him for any reason except criminality. The Village argued that the contract’s extension was not lawful and that it owes Linear nothing. The district court agreed and rejected Linear’s suit under 42 U.S.C. 1983, reasoning that 65 ILCS 5/3.1-30-5; 5/8-1-7 prohibit a village manager's contract from lasting beyond the end of a mayor’s term. The Seventh Circuit affirmed on different grounds. State courts should address the Illinois law claims. Linear’s federal claim rests on a mistaken appreciation of the role the Constitution plays in enforcing state-law rights. Linear never had a legitimate claim of entitlement to remain as Village Manager. His contract allowed termination without cause. His entitlement was to receive the contracted-for severance pay. Linear could not have a federal right to a hearing before losing his job; he has at most a right to a hearing to determine his severance pay--a question of Illinois law. View "Linear v. Village of University Park" on Justia Law

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McCall resigned from Shaw and later became the CEO of Allied, Shaw’s direct competitor. Shaw sued, citing noncompete and nonsolicitation agreements in McCall’s employment contract. Those agreements call for arbitration and state that the employer may seek injunctive relief without waiving the right to arbitrate. The state court issued a Joint Protective Order. Aptim acquired the rights to McCall’s employment agreement but withdrew a subsequent motion for substitution in the suit. Aptim filed a demand for arbitration with the American Arbitration Association. Shaw filed an amended petition, deleting its request for damages, and a motion to dismiss the amended petition with prejudice. McCall filed an opposition, an answer, a counterclaim, a petition for declaratory judgment, a motion to consolidate, and a motion for constructive contempt against Aptim for demanding arbitration in violation of the protective order, though Aptim was not then a party to the case. Aptim, without Shaw, sued in federal court to compel arbitration and to stay the state-court proceeding. Before the federal court ruled, the state court issued an order joining Aptim in the state-court action, retroactively effective, finding that Aptim and Shaw had waived their arbitration rights. The federal district court then ordered arbitration and stayed the state-court action. The Fifth Circuit affirmed, finding that the factors weighed against abstention because the case does not involve jurisdiction over a thing and federal law provides the rules of decision on the merits and strongly favors arbitration. View "Aptim Corp. v. McCall" on Justia Law

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Former Maricopa County Sheriff Arpaio was referred for criminal contempt in August 2016. The government obtained a conviction on July 31, 2017. On August 25, 2017, the President pardoned Arpaio, noting that Arpaio’s sentencing was “set for October 5, 2017.” On August 28, 2017, Arpaio moved “to dismiss this matter with prejudice” and asked the district court “to vacate the verdict and all other orders” plus the sentencing. On October 4, the district court dismissed with prejudice the action for criminal contempt. No timely notice of appeal order was filed. The Ninth Circuit denied a late-filed request for the appointment of counsel to “cross-appeal” the dismissal. The district court denied Arpaio’s second request and refused to grant “relief beyond dismissal with prejudice.” Arpaio filed a timely notice of appeal. In response to a request for the appointment of counsel to defend the order denying Arpaio’s request for vacatur, the government stated that it “does not intend to defend the district court’s order” and intends to argue, as it did in the district court, that the motion to vacate should have been granted. The Ninth Circuit appointed a special prosecutor to file briefs and present oral argument on the merits. View "United States v. Arpaio" on Justia Law

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In 2013, federal agents obtained an 18 U.S.C. 2703 warrant requiring Microsoft to disclose all e-mails and other information associated with a customer's account that was believed to be involved in illegal drug trafficking. Microsoft determined that the account’s e-mail contents were all stored in Microsoft’s Dublin, Ireland datacenter and moved, unsuccessfully, to quash the warrant with respect to that information. The court held Microsoft in civil contempt. The Second Circuit reversed, holding that requiring Microsoft to disclose the electronic communications in question would be an unauthorized extraterritorial application of section 2703. In March 2018, Congress enacted and the President signed the Clarifying Lawful Overseas Use of Data Act (CLOUD Act), Pub. L. 115–141, amending the Stored Communications Act, 18 U.S.C. 2701, to add: “A [service provider] shall comply with the obligations of this chapter to preserve, backup, or disclose the contents of a wire or electronic communication and any record or other information pertaining to a customer or subscriber within such provider’s possession, custody, or control, regardless of whether such communication, record, or other information is located within or outside of the United States.” The Supreme Court vacated, finding the case moot. No live dispute remains between the parties over the issue with respect to which certiorari was granted; a new warrant replaced the original warrant. View "United States v. Microsoft Corp." on Justia Law

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The Castillos were employed and paid by GCA, a temporary staffing company, to perform work on-site at Glenair. Glenair was authorized to and did record, review, and report the Castillos’ time records to GCA so that the Castillos could be paid. In a wage and hours putative class action, the Castillos characterized GCA and Glenair as joint employers. While their case was pending, a separate class action brought against, among others, GCA resulted in a final, court-approved settlement agreement, “Gomez,” which contains a broad release barring settlement class members from asserting wage and hour claims such as those alleged by the Castillos against GCA and its agents. The Castillos are members of the Gomez settlement class and did not opt out of that settlement. The Castillos claims against Glenair involve the same wage and hour claims, for the same work done, covering the same time period as the claims asserted in Gomez. The court of appeal affirmed summary judgment rejecting the Castillo suit. Because Glenair is in privity with GCA (a defendant in Gomez) and is an agent of GCA, the Gomez settlement bars the Castillos’ claims against Glenair as a matter of law. View "Castillo v. Glenair, Inc." on Justia Law

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Google agreed with competitors, such as Apple, not to initiate contact to recruit each others' employees. In 2010, the Department of Justice filed a civil antitrust action, alleging that the agreements illegally diminished competition for tech employees, denying them job opportunities and suppressing wages. On the same day, the companies entered into a stipulated judgment, admitting no liability but agreeing to an injunction prohibiting the "no cold call" arrangements. Google posted a statement online announcing the settlement and denying any wrongdoing, with a link to a Department of Justice press release, describing the settlement terms. There was widespread media coverage. In 2011, class action lawsuits were filed against the companies by employees who alleged that the cold calling restrictions had caused them wage losses. A consolidated action sought over $3 billion in damages on behalf of more than 100,000 employees. A derivative suit, filed by shareholders in 2014, claimed that the company suffered financial losses resulting from the antitrust and class action suits and that the agreements harmed the company’s reputation and stifled innovation. Based on a three-year statute of limitations, the trial court dismissed. The court of appeal affirmed, finding the suit untimely because plaintiffs should have been aware of the facts giving rise to their claims by at least the time of the Department of Justice antitrust action in 2010. View "Police Retirement System of St. Louis v. Page" on Justia Law

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In July 2007, NMG, a luxury fashion retailer, notified its employees that acceptance of the NMG Arbitration Agreement was a mandatory condition of employment which would be implied for all employees who continued to work at NMG beyond July 15, 2007. Tanguilig unsuccessfully tried to negotiate its terms. Tanguilig chose not to return to work after July 15, and sued alleging, among other things: wrongful termination in violation of public policy; wrongful retaliation; wrongfully requiring employees to agree to allegedly illegal terms, failure to provide 10-minute rest periods and 30-minute meal periods and to pay overtime wages and minimum wage in violation of the Labor Code; and failure to pay wages owed at the time of discharge. Early in the proceedings, the court dismissed Tanguilig’s wrongful termination and related claims. Several years later, it dismissed the remaining claims under California’s five-year dismissal statute, Code of Civil Procedure 583.310. The court of appeal affirmed, rejecting Tanguilig’s argument that the trial court erred in failing to toll the five-year clock under section 583.340(c), for the period during which an order compelling a co-plaintiff to arbitration was in effect. Tanguilig made no factual showing that she could not have brought her claims to trial while that order was in effect View "Tanguilig v. Neiman Marcus Group, Inc." on Justia Law

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n 2008, Riske, a Los Angeles police officer from 1990 until his 2014 retirement, reported two fellow officers for filing false reports and testified against them. Afterward, Riske’s colleagues referred to him as a “snitch” and refused to work with him, even ignoring Riske’s requests for assistance in the field. From 2011-2013 Riske applied for 14 highly desirable detective positions. Notwithstanding his superior qualifications, each application was denied, in favor of less experienced or less qualified persons. Riske sued for unlawful retaliation, Labor Code 1102.5, and sought (Evidence Code 1043 and 10451) to obtain summary personnel records relied on by the city in making assignment and promotion decisions. Following a remand, the superior court conducted ordered the requested personnel records to be produced but, pursuant to section 1045(b)(1), which excludes from disclosure “[i]nformation consisting of complaints concerning conduct occurring more than five years before the event or transaction that is the subject of the litigation,” the court ordered redaction of all items concerning conduct that had occurred more than five years before Riske filed his 2014 complaint. The court of appeal again ruled in favor of Riske, holding that section 1045(b) has no application to the personnel reports sought in this case, which are not citizen complaints. View "Riske v. Superior Court" on Justia Law

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The District 5 Commission denied Korrow Real Estate LLC’s as-built application for an Act 250 permit to construct a barn on property alongside the Dog and Stony Brook Rivers, finding the project failed to comply with Act 250 Criteria 1(D) and 1(F). In doing so, the Commission construed key terms as defined by the Agency of Natural Resources (ANR). On appeal, the Environmental Division reversed the decision and remanded the matter to the Commission with instructions to grant an as-built permit for the project. The Vermont Natural Resources Board appealed the decision, arguing the court failed to accord proper deference to the ANR’s statutory authority and expertise, and that the project failed to comply with the necessary Act 250 permitting criteria. The Vermont Supreme Court affirmed in part, reversed in part and remanded. The Supreme Court found the ANR determined the Korrow project was within the Act 250 “floodway” based on the project’s location relative to the FEH area surrounding the Dog and Stony Brook Rivers. The Environmental Division erred when it determined that the methodology applied by Korrow’s expert, or the methodology of the court, was superior to that employed by the ANR. In applying the ANR definition, the Supreme Court found Korrow’s project was within the “floodway” under 10 V.S.A. 6001(6), triggering analysis of project compliance with Act 250 Criterion 1(D). Even though the court erroneously found that the project was located outside the “floodway,” there was sufficient evidence to support the trial court’s conclusion that the project complied with Criterion 1(D). With respect to Criterior 1(F), the Supreme Court found two flaws in the lower court’s findings: (1) interpreting the scope of land “adjacent” to the rivers was essential to determining whether a project was on a “shoreline,” no definition of “adjacent” was provided; and (2) even applying the court’s contextual, rather than distance-based, analysis of the project’s location in relation to the Dog and Stony Brook Rivers, the court’s conclusion that the project was not on the “shoreline” was based on insufficient evidence. The Supreme Court could not determine, based on the trial court record, whether the project at issue here was constructed on a “shoreline” and, if so, whether the project complied with the subcriteria required by statute. As such, the Environmental Division’s conclusion that the project complied with Criterion 1(F) was reversed and this issue remanded to the court for further findings. Because the question of what was meant by “adjacent” was critical to the shoreline determination and had not been briefed or argued, the parties were directed upon remand to brief this issue for the court. The Supreme Court reversed the Environmental Division’s ruling defining the term “floodway,” but affirmed its conclusion that the project complied with Criterion 1(D). The Court reversed and remanded to the Environmental Division for further proceedings to determine whether this project involved a “shoreline” and, if so, the project’s compliance with Criterion 1(F). View "In re Korrow Real Estate, LLC Act 250 Permit Amendment Application" on Justia Law