Justia Civil Procedure Opinion Summaries

The plaintiff leased and later purchased a 2013 vehicle from the defendant, which subsequently developed engine problems. After experiencing issues like rattling and crunching noises and receiving a safety recall notice, the plaintiff sought repairs and eventually requested that the defendant repurchase the car due to unresolved defects. The defendant did not respond to these repurchase requests.The plaintiff sued for violations under the Song-Beverly Consumer Warranty Act, breach of warranties, fraud by omission, and the Consumer Legal Remedies Act (CLRA). The Superior Court of San Diego County sustained the defendant’s demurrer to the CLRA claim without leave to amend, citing the plaintiff’s failure to file a required venue affidavit with the complaint. During discovery, the defendant repeatedly objected to producing documents related to engine defects and verified, under penalty of perjury, that no responsive documents existed. The plaintiff challenged the adequacy of the defendant’s document search and later discovered evidence indicating the defendant had produced such documents to a government agency in another matter. The trial court denied the plaintiff’s motions to compel and for terminating sanctions, accepted the defendant’s responses, and excluded key evidence at trial, which left the plaintiff unable to prove fraud.At trial, the jury found that a defect existed but concluded the defendant remedied it, resulting in a defense verdict. The trial court denied the plaintiff’s motions for a new trial and judgment notwithstanding the verdict, focusing on the plaintiff’s delay in discovering withheld documents and awarding costs to the defendant.On appeal, the California Court of Appeal, Fourth Appellate District, Division One, reversed and remanded. The court held that the defendant’s discovery misuse denied the plaintiff a fair trial, requiring a new trial and monetary sanctions to compensate for costs and attorney fees. It also directed that the plaintiff be given leave to amend the CLRA claim and vacated the award of prevailing-party costs to the defendant. View "Higginson v. Kia Motors America" on Justia Law

The State of Ohio brought a lawsuit in state court against several pharmacy benefit managers (PBMs) and related entities, alleging they conspired to artificially inflate prescription drug prices in violation of Ohio law. Ohio claimed that the PBMs, acting as intermediaries between drug manufacturers and health plans, negotiated rebates and fees in a manner that increased drug list prices and extracted payments from pharmacies, harming consumers and violating state antitrust and consumer protection statutes. The PBMs provided services to both private clients and federal health plans, including those for federal employees and military personnel.The defendants, Express Scripts and Prime Therapeutics, removed the case to the United States District Court for the Southern District of Ohio under the federal officer removal statute, arguing that their negotiations on drug prices were conducted on behalf of both federal and non-federal clients in a unified process subject to federal oversight. Ohio moved to remand the case to state court, asserting that its claims did not target conduct directed by federal officers and disclaimed any challenge to the administration of federal health programs like FEHBA or TRICARE. The district court accepted Ohio’s disclaimer and determined that the complaint did not impose liability for acts under federal direction, granting Ohio’s motion to remand.On appeal, the United States Court of Appeals for the Sixth Circuit reviewed the matter de novo. The court held that the PBMs were “persons acting under” federal officers because their negotiations were performed under detailed federal supervision and regulation for federal health plans. The court further found that the complaint related to acts under color of federal office, as the alleged wrongful conduct was inseparable from federally directed negotiations. The court also determined that the PBMs raised colorable federal defenses based on federal preemption. Consequently, the Sixth Circuit reversed the district court’s remand order and remanded the case for further proceedings in federal court. View "Ohio ex rel. Yost v. Ascent Health Services, LLC" on Justia Law

The State of Iowa brought suit against several related corporate entities associated with the TikTok social media platform, alleging violations of the Iowa Consumer Frauds Act. The State claimed that TikTok misrepresented the safety and age-appropriateness of its app by maintaining a “12+” rating on app stores despite the presence of mature and inappropriate content. The app was widely downloaded and used in Iowa, with hundreds of thousands of devices in the state activating it. TikTok entered into terms of service agreements with Iowa users, collected location data, and targeted Iowa-specific advertisements, thereby generating revenue from its Iowa user base.In the Iowa District Court for Polk County, the TikTok entities moved to dismiss the State’s petition on several grounds, including lack of personal jurisdiction. The district court denied the motion, finding that it had personal jurisdiction over the defendants and that the State had properly pleaded a valid claim. The district court also denied the State’s request for a temporary injunction, concluding that irreparable harm had not been shown. The defendants sought interlocutory review solely on the issue of personal jurisdiction, which was granted.Upon review, the Iowa Supreme Court found that the TikTok entities had sufficient minimum contacts with Iowa, having purposefully availed themselves of the privilege of conducting business in the state by entering into ongoing contractual relationships, collecting data, and serving targeted advertisements. The court concluded that the State’s claims “arose out of or related to” these contacts, and that exercising jurisdiction did not offend traditional notions of fair play and substantial justice. Accordingly, the Iowa Supreme Court affirmed the district court’s denial of the defendants’ motion to dismiss for lack of personal jurisdiction. View "State of Iowa, Ex Rel. Attorney General Brenna Bird v. Tiktok, Inc." on Justia Law

Taylor L. Wood, her husband, and her son received medical care from physicians employed by Intermountain Emergency Physicians, PLLC (IEP). The resulting medical debt was assigned to Medical Recovery Services, LLC (MRS) for collection. After Wood’s attorneys alleged violations of state law, the Woods and IEP entered into a settlement that discharged the debt and provided payment to the Woods. Nevertheless, MRS later sued Wood to collect the same debt. Wood responded by counterclaiming and bringing IEP into the case as a third-party defendant, relying on the settlement agreement. MRS dismissed its complaint upon learning of the prior settlement, and all claims were eventually dismissed by the court.After judgment was entered, both sides sought a determination of the prevailing party and an award of attorney fees. The District Court of the Seventh Judicial District, Bingham County, found that Wood was the prevailing party over MRS and ordered MRS to pay Wood’s costs and attorney fees, concluding that MRS’s complaint was frivolous due to lack of proper investigation and communication regarding the settlement. MRS and IEP filed a first motion for reconsideration of the fees order, which was denied. They then filed a second motion for reconsideration, also denied, and subsequently appealed.The Supreme Court of the State of Idaho reviewed the case. It held that it lacked jurisdiction to review the district court’s order awarding costs and attorney fees to Wood because MRS and IEP’s notice of appeal from that order was untimely under Idaho Appellate Rule 14(a). The court did have jurisdiction to review the denial of the second motion for reconsideration, but because MRS and IEP failed to provide argument or authority on that issue, they waived it. The Supreme Court affirmed the district court’s denial of the second motion for reconsideration. View "Medical Recovery Services, LLC v. Wood" on Justia Law

Daevieon Towns purchased a new Hyundai Elantra in 2016, and over the next 19 months, the car required multiple repairs for alleged electrical and engine defects. In March 2018, either Towns or his wife, Lashona Johnson, requested that Hyundai buy back the defective vehicle. Before Hyundai acted, the car was involved in a collision, declared a total loss, and Johnson’s insurance paid her $14,710.91.Towns initially sued Hyundai Motor America in the Superior Court of Los Angeles County for breach of express warranty under the Song-Beverly Consumer Warranty Act. As trial approached, Towns amended his complaint to add Johnson as a plaintiff, arguing she was the primary driver and responsible for the vehicle. The trial court allowed the amendment, finding Johnson was not a buyer but permitted her to proceed based on its interpretation of Patel v. Mercedes-Benz USA, LLC. At trial, the jury found for Towns and Johnson, awarding damages and civil penalties. However, the court reduced the damages by the insurance payout and adjusted the prejudgment interest accordingly. Both parties challenged the judgment and costs in post-trial motions.The California Court of Appeal, Second Appellate District, Division Four, reviewed the case. It held that only a buyer has standing under the Act, so Johnson could not be a plaintiff. The court also held that third-party insurance payments do not reduce statutory damages under the Act, following the Supreme Court’s reasoning in Niedermeier v. FCA US LLC. Furthermore, prejudgment interest is available under Civil Code section 3288 because Hyundai’s statutory obligations do not arise from contract. The court affirmed in part, reversed in part, and remanded for the trial court to enter a modified judgment and reconsider costs. View "Towns v. Hyundai Motor America" on Justia Law

Milliman, Inc. operates a service that compiles consumer medical and prescription reports, which are then sold to insurers for underwriting decisions. The named plaintiff, James Healy, applied for life insurance, but Milliman provided a report to the insurer containing another person's medical records and social security number. This erroneous report flagged Healy as high risk for several serious medical conditions he did not actually have, resulting in the denial of his insurance application. Healy attempted to correct the report, but Milliman did not timely investigate or remedy the errors.Healy filed a class action in the United States District Court for the Western District of Washington, alleging that Milliman’s procedures violated the Fair Credit Reporting Act by failing to ensure maximum possible accuracy. The district court certified an “inaccuracy class” for those whose reports included mismatched social security numbers and risk flags. Milliman moved for partial summary judgment, arguing that Healy needed to show class-wide standing at this stage. The district court agreed, finding under TransUnion LLC v. Ramirez, 594 U.S. 413 (2021), that Healy had failed to present direct evidence of concrete injury on a class-wide basis, and dismissed the inaccuracy class.On interlocutory appeal, the United States Court of Appeals for the Ninth Circuit held that, following class certification in damages actions, both named and unnamed class members must present evidence of standing at summary judgment. However, the court clarified that plaintiffs may rely on either direct or circumstantial evidence, and need only show that a rational trier of fact could infer standing, not that standing is conclusively established. The panel reversed the district court’s partial summary judgment and remanded for reconsideration under the correct summary judgment standard. View "HEALY V. MILLIMAN, INC." on Justia Law

During the COVID-19 pandemic, a university in Nebraska instituted a policy requiring all students to be vaccinated against COVID-19 by a specified deadline, with the only exemptions allowed for medical reasons or until a vaccine received full FDA approval. Religious exemptions were not permitted. Students who failed to comply were unenrolled and barred from campus, and some had holds placed on their accounts, preventing access to transcripts. One student complied with the mandate but suffered adverse effects and was medically exempted from further doses. Another student withdrew voluntarily before the deadline.After the university enforced the mandate, several students sought injunctive relief in the District Court for Douglas County to prevent their unenrollment, alleging breach of contract and unjust enrichment. The court denied relief, finding that any contract included the Emergency Use Authorization waiver agreements and that the students breached the contract by not being vaccinated after FDA approval. An initial appeal was dismissed by the Nebraska Supreme Court for lack of a final, appealable order. The students then consolidated their actions and filed an operative complaint alleging breach of implied contract, denial of due process, conversion, negligence, and violations of the Nebraska Consumer Protection Act (NCPA). The district court dismissed the complaint with prejudice and denied leave to amend.The Nebraska Supreme Court reviewed the district court’s dismissal de novo and found that the students plausibly alleged claims for breach of an implied contract and conversion, based on the university’s unilateral modification of conditions mid-semester and the withholding of transcripts. The court affirmed the dismissal of the negligence and NCPA claims, finding them preempted by the federal Public Readiness and Emergency Preparedness Act, and held that the due process claim was abandoned on appeal. The case was affirmed in part, reversed in part, and remanded for further proceedings on the breach of contract and conversion claims. View "Ramaekers v. Creighton University" on Justia Law

Epic Games, a developer and operator of the Epic Games Store, sued Apple over its App Store practices, alleging violations of federal and California competition law. The dispute centered on Apple’s rules requiring developers to use Apple’s in-app payment system, which imposed a 30% commission, and its prohibition of developers directing users to other purchasing options outside the App Store. After a bench trial, the district court found Apple’s anti-steering provisions violated California’s Unfair Competition Law by preventing informed consumer choice but upheld Apple’s in-app payment system requirement for digital goods. The court issued an injunction barring Apple from restricting developers from including in their apps buttons, links, or other calls to action that direct users to alternative purchasing mechanisms.Following the injunction, Apple implemented a compliance plan involving a 27% commission on linked-out purchases and a series of restrictions on how developers could present external payment options, including limitations on button design, link placement, and user flow. Epic contested Apple’s compliance, arguing these measures still effectively prohibited alternative purchases. After holding multiple evidentiary hearings, the United States District Court for the Northern District of California found Apple in civil contempt for failing to comply with the injunction, citing Apple’s bad faith and pretextual justifications. The district court imposed broad sanctions, including prohibiting any commission on linked-out purchases, restricting Apple’s ability to limit external links, and referring Apple for criminal investigation.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s contempt findings and most of the resulting sanctions but found portions of the sanctions—particularly the blanket ban on commissions—overbroad and more punitive than coercive. The Ninth Circuit reversed and remanded those parts for further tailoring, clarified the scope of permissible developer link prominence, and declined to vacate the injunction or reassign the case. The court otherwise affirmed the district court’s orders. View "EPIC GAMES, INC. V. APPLE INC." on Justia Law

Two individuals brought their dogs to a veterinary clinic for treatment. Dissatisfied with the care provided, both posted negative reviews on social media, detailing their experiences and criticizing the clinic’s practices. These posts were shared on multiple community Facebook pages and received significant engagement from the local community, including comments from others about the clinic. After the posters refused the clinic’s request to remove the reviews, the clinic filed a lawsuit for defamation per se against both individuals, alleging numerous defamatory statements.In the District Court for El Paso County, the defendants filed a special motion to dismiss under Colorado’s anti-SLAPP statute, arguing that their posts were protected as speech on a public issue. The district court denied the motion, finding that the statements concerned a private business dispute and did not address matters of public interest. The court also found that, even if the statute applied, the clinic had shown a reasonable likelihood of prevailing on its claims. On appeal, a division of the Colorado Court of Appeals agreed that the posts provided consumer information relevant to the public but concluded they did not contribute to a broader public discussion, largely because they were motivated by personal animosity and aimed to harm the clinic’s business.The Supreme Court of Colorado reviewed the case and determined that the lower courts had applied the wrong legal standard. The Supreme Court held that courts must use a two-step test to determine if speech is protected under the anti-SLAPP statute: first, whether an objective observer could reasonably understand the speech, in context, to be made in connection with a public issue or interest; and second, whether the speech contributed to public discussion of that issue. The court further held that the speaker’s motive is irrelevant to this analysis. The judgment of the court of appeals was reversed, and the matter was remanded for application of the correct standard. View "Lind-Barnett v. Tender Care Veterinary Ctr." on Justia Law

A group of homeowners, all over the age of 65, entered into contracts for energy efficiency improvements to their homes under California's Property Assessed Clean Energy (PACE) program. This program allows local governments to offer financing for such improvements, with repayment made through voluntary special assessments added to the homeowners’ property tax bills. Most local governments contracted private companies to administer these PACE loans. The homeowners alleged that these private administrators failed to comply with consumer protection and lending laws applicable to consumer lenders, such as providing required warnings and avoiding prohibited security interests. They filed suit under the Unfair Competition Law, seeking injunctive relief and restitution, including the return of assessment monies paid and prohibitions on future collection of delinquent assessments unless the assessments were removed from their properties.The San Diego County Superior Court sustained the defendants’ demurrers, concluding that the plaintiffs were required to exhaust administrative tax remedies before pursuing their claims in court. The California Court of Appeal affirmed, reasoning that because PACE assessments are collected as part of property taxes and the relief sought would invalidate those assessments, plaintiffs first needed to pay the assessments and seek administrative relief through the established tax refund procedures.The Supreme Court of California reviewed the case to determine whether plaintiffs were required to follow statutory procedures for challenging taxes. The court held that when plaintiffs’ claims effectively seek to invalidate PACE assessments or prevent their future collection, they must first pay the assessments and pursue administrative tax remedies. However, the court also held that plaintiffs are not required to use tax challenge procedures for claims that do not directly or indirectly challenge a tax, such as those solely addressing the administration of the PACE program. The judgment was affirmed in part, reversed in part, and the case remanded to consider whether plaintiffs should be allowed to amend their complaints to state only non-tax-related claims. View "Morgan v. Ygrene Energy Fund, Inc." on Justia Law