Justia Civil Procedure Opinion Summaries

Plaintiff-appellant Bernell Beco filed suit against his former employer, defendant Fast Auto Loans, Inc. (Fast Auto) alleging 14 causes of action relating to the termination of his employment. Plaintiff alleged causes of action under with), including claims under the California Fair Employment and Housing Act (FEHA), numerous wage and hour violations under the Labor Code, wrongful termination, unfair competition, and additional tort claims. Fast Auto moved to compel arbitration, arguing that Beco had signed a valid arbitration agreement at the time he was hired. The trial court found the agreement unconscionable to the extent that severance would not cure the defects and declined to enforce it. After its review, the Court of Appeal agreed with the trial court that the agreement was unconscionable, and further rejected Fast Auto’s argument that the arbitrator, not the court, should have decided the issue of unconscionability. Additionally, because the agreement included numerous substantively unconscionable provisions, the appellate court found no abuse of discretion in the trial court’s decision not to sever them. View "Beco v. Fast Auto Loans, Inc." on Justia Law

This action was brought by plaintiff Nancy Holm, administratrix of the estate of her husband, Christopher Friedauer, who died in 2015 after falling at his workplace, Holmdel Nurseries, LLC. As a longtime employee of the family-owned business, Christopher had been covered by workers’ compensation insurance, but he was no longer covered after he became a member of the LLC in 2012. Plaintiff claimed that defendant Daniel Purdy, who served as the insurance broker for Holmdel Nurseries from 2002 to 2015, failed to provide to the LLC the notice mandated by N.J.S.A. 34:15-36, and that Christopher was unaware that he no longer had workers’ compensation coverage in his new role as an LLC member. She alleged that as a result of defendant’s negligence and breach of fiduciary duty, Friedauer’s dependents were deprived of a workers’ compensation death benefit to which they would have been entitled under N.J.S.A. 34:15-13 had he been covered by workers’ compensation insurance at the time of his death. Defendant asserted that Friedauer’s father, Robert Friedauer, the LLC’s managing member for insurance issues, instructed defendant in 2002 that Holmdel Nurseries did not want to purchase workers’ compensation coverage for its LLC members because of the cost of that coverage. At the close of a jury trial, the trial court granted defendant’s motion for an involuntary dismissal pursuant to Rule 4:37-2(b) and his motion for judgment at trial pursuant to Rule 4:40-1. Informed by the New Jersey Legislature’s expression of public policy in N.J.S.A. 34:15-36, the New Jersey Supreme Court concurred with the Appellate Division that defendant had a duty to advise the LLC members, at the time of the workers’ compensation policy’s purchase or renewal, that an LLC member actively performing services on the LLC’s behalf was eligible for workers’ compensation coverage, but that the LLC must elect to purchase such coverage in order to obtain it. Consistent with N.J.S.A. 34:15-36, however, the Supreme Court held that defendant could not be held liable for breach of that duty unless the damages alleged were caused by defendant’s willful, wanton or grossly negligent act of commission or omission. The Supreme Court disagreed with the trial court’s assessment of the evidence presented by plaintiff on the question of proximate cause. Accordingly, the Court concurred that the trial court erred when it granted defendant’s motion to dismiss and his motion for judgment at trial, and affirmed as modified the Appellate Division’s judgment. The case was thus remanded to the trial court for further proceedings. View "Holm v. Purdy" on Justia Law

Appellants J.K. and Mr. Electric (jointly “Mr. Electric”) challenged the district court’s grant of summary judgment in this 42 U.S.C. Section 1983 action in favor of Defendants-Appellees, and the Washington State Department of Labor and Industries (together “the Department”). Two Mr. Electric employees provided the Department with copious amounts of Mr. Electric’s data, particularly printouts of cell site location information that provided GPS coordinates for company vehicles which showed all movement of electricians in the field. The Department used the data to write citations and assess administrative fines against Mr. Electric for violations of Washington’s electrical code stemming from improper supervision of journeymen electricians in Clark County.   Appellants argued that Carpenter v. United States, 138 S. Ct. 2206 (2018), and Wilson v. United States, 13 F.4th 961 (9th Cir. 2021), foreclosed the Department’s use of Appellants’ location information because, when read together, the cases extinguished the applicability of the private search exception to the Fourth Amendment to location information.   The Ninth Circuit affirmed the district court’s grant of summary judgment for Appellees. The panel noted that although Carpenter held that the third-party doctrine does not apply as an exception to the Fourth Amendment’s warrant requirement when the government seeks cell site location information, the private search exception is an altogether separate exception to the Fourth Amendment. View "JAMES KLEISER, ET AL V. BENJAMIN CHAVEZ, ET AL" on Justia Law

The Religious Sisters of Mercy, Sacred Heart Mercy Health Care Center, SMP Health System, and the University of Mary (collectively, “RSM plaintiffs”) filed suit, alleging that the Department of Health and Human Services (‘HHS’) had violated, among other things, the APA, the First Amendment, and the RFRA. Additionally, the Catholic Benefits Association (CBA); Diocese of Fargo (Diocese); Catholic Charities North Dakota (“Plaintiffs”) filed suit, seeking declaratory and injunctive relief pursuant to the RFRA against HHS’s and the EEOC’s interpretation and enforcement of the relevant statutes to the extent they required the CBA plaintiffs to “provide, perform, pay for, cover, or facilitate access to health services for gender transition.”   The district court held that the RFRA entitles Plaintiffs to permanent injunctive relief. On appeal, HHS and the EEOC (collectively, “the government”) challenge the district court’s grant of declaratory and permanent injunctive relief to Plaintiffs.   The Eighth Circuit affirmed. The court first held that the CBA lacks associational standing to sue on behalf of unnamed members. However, the court held that Plaintiffs have satisfied the elements necessary to establish standing to challenge the government’s interpretation of Section 1557. Moreover, the court wrote that contrary to the government’s position, we conclude that the district court correctly determined that the CBA plaintiffs face a “credible threat” of enforcement from the EEOC. Accordingly, the court concluded that the district court correctly held that “intrusion upon the Catholic Plaintiffs’ exercise of religion is sufficient to show irreparable harm.” View "The Religious Sisters of Mercy v. Xavier Becerra" on Justia Law

Nexstar Broadcasting, Inc. owns and operates numerous local television stations. Nexstar acquired KOIN-TV, a local television station in Portland, Oregon, from LIN Television Corporation (LIN). When it acquired KOIN-TV, Nexstar adopted the CBA between Local 51 and LIN. A union representative, began asking employees to sign a petition in support of the union, but a Nexstar manager allegedly interfered with her activities by interrupting her and telling her not to talk about the union or to hand out union bulletins.   Based on a finding that the Regional Director was likely to succeed on the merits of the complaint and applying an inference of likely irreparable harm, the district court granted a preliminary injunction. An administrative law judge ruled in favor of the Regional Director, finding that Nexstar had violated Section 8(a)(1) and (5) of the NLRA. The Board affirmed the ALJ decision and ordered relief for the union. The Ninth Circuit vacated the district court’s order granting a petition of the Regional Director of the National Labor Relations Board (“Board”) for preliminary injunctive relief.   The panel held that a Section 10(j) injunction proceeding is the type of case that is inherently limited in duration because the controversy over the injunction exists only until the Board issues its final merits decision. The panel concluded that the Section 10(j) injunction met the first prong. The panel held that the Section 10(j) injunction also met the exception’s second prong, because there was a reasonable expectation that the complaining party, Nexstar, will be subject to a petition for a Section 10(j) injunction in the future. View "RONALD HOOKS V. NEXSTAR BROADCASTING, INC." on Justia Law

After Clifford Bufford, an employee of Borbet Alabama, Inc., injured his left arm in a workplace accident, he sued seven of his co-employees claiming that his injury was the result of their willful conduct. The co-employees sought summary judgment, arguing that they were immune from suit under Alabama's Workers' Compensation Act ("the Act") because, they said, there was no evidence to support Bufford's claims. Bufford voluntarily dismissed his claims against all the defendants except the petitioner, maintenance supervisor Jeffrey Varoff. The circuit court then denied Varoff's motion for summary judgment. He petitioned the Alabama Supreme Court for a writ of mandamus directing the trial court to enter judgment in his favor on the basis of the immunity afforded by the Act. We grant the petition and issue the writ. The Supreme Court concurred there was not evidence in the trial court record that would support a finding that Varoff had engaged in willful conduct as that term was described in § 25-5-11(c). The Court held Varoff was immune from liability under § 25-5- 53. Accordingly, the trial court erred by denying Varoff's motion for summary judgment. His petition was therefore granted, and the trial court directed to vacate its order denying Varoff's motion. View "Ex parte Jeffrey Varoff." on Justia Law

A Mississippi trial court denied Watercolor Salon LLC’s motion for a temporary restraining order and preliminary injunction filed against Watercolor’s former employee Nealie Hixon. The motion was based on an employment, confidentiality, and noncompetition agreement. Because Nealie was twenty years old and thus legally a minor when she entered the agreement, the trial court held the agreement was unenforceable. On appeal, Watercolor argues its employment agreement meets the statutory exception that permits minors eighteen years or older to enter into enforceable contracts “affecting personal property.” The Mississippi Supreme Court found Watercolor's logic was flawed and stretched the statutory minor disability exception too far. "Just because an employment contract restricts an employee from taking intellectual property or covers what happens upon breach or termination does not completely change the fundamental nature of the contract. And here the fundamental nature of the contract was a noncompetition agreement that Nealie would give up her ability to work in a certain geographical area for a fixed time in exchange for continued employment at a higher hourly wage. So this employment contract was simply a contract affecting Nealie’s right to work, not her personal property. Thus, the statutory exception does not apply. And because Nealie disaffirmed the contract, it is unenforceable against her." The Court affirmed the denial of Watercolor's motion for injunctive relief, which was based solely on the unenforceable agreement. Whether Watercolor had any remaining claims against Nealie that were not based on the contract, such as the taking of trade secrets, remained to be determined on remand. View "Watercolor Salon, LLC v. Hixon" on Justia Law

Three independent contractors of Eastman Chemical Company were severely injured, one of them fatally, when a pump exploded during maintenance. Eastman moved to dismiss their state-law personal injury suits, contending that the contractors qualified as Eastman’s “statutory employees” under the South Carolina Workers’ Compensation Law – which would mean that workers’ compensation was their exclusive remedy and that the courts lacked jurisdiction to hear their claims.   The district court agreed that Plaintiffs were Eastman’s “statutory employees” under the workers’ compensation law and dismissed their actions. On appeal, the Fourth Circuit held their cases in abeyance pending the decision of South Carolina’s Supreme Court in Keene v. CNA Holdings, LLC, 870 S.E.2d 156 (2021).   The Fourth Circuit reversed and remanded the district court’s ruling. The court explained that in Keene, when an employer makes a “legitimate business decision” to outsource a portion of its work, the contractors it hires to perform that work are not “statutory employees” for workers’ compensation purposes. 870 S.E.2d at 163. No party here contests that Eastman’s outsourcing of its maintenance and repair work was a “legitimate business decision.” It follows that the plaintiffs, independent contractors performing maintenance at the time of the 2016 pump explosion, were not statutory employees and may bring personal injury actions. View "Sallie Zeigler v. Eastman Chemical Company" on Justia Law

Plaintiff, formerly a tenured theology teacher at a Roman Catholic high school in Staten Island, appealed from the dismissal of his complaint against his labor union, the Federation of Catholic Teachers (the “FCT”), for allegedly breaching its duty of fair representation under the National Labor Relations Act (the “NLRA”) as amended by the Labor Management Relations Act (the “LMRA”), and for assorted violations under the New York State and New York City human rights laws. The district court dismissed Plaintiff’s duty-of-fair representation claim with prejudice for lack of subject-matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1), reasoning that the NLRA and LMRA are inapplicable to disputes between parochial-school teachers and their labor unions under NLRB v. Catholic Bishop of Chicago, 440 U.S. 490 (1979).   The Second Circuit affirmed. The court concluded, as a matter of first impression, that Catholic Bishop does preclude Plaintiff’s duty-of-fair-representation claim, but that dismissal was warranted under Rule 12(b)(6) for failure to state a claim on which relief could be granted, rather than for lack of federal subject-matter jurisdiction under Rule 12(b)(1). The court also concluded that Plaintiff has abandoned any challenge to the dismissal of his state and municipal-law claims. View "Jusino v. Fed'n of Cath. Tchrs., Inc." on Justia Law

Appellants Balubhai Patel, DTWO & E, Inc. (DTWO), and Stuart Union, LLC (Stuart Union) (collectively, appellants) have been before this court numerous times in connection with a labor dispute with a former employee, Defendant, that resulted in two California Labor Commissioner orders (ODAs) in Defendant’s favor. The instant appeal challenges a superior court order forfeiting a bond Appellants had posted in an unsuccessful attempt to challenge the ODAs, as well as a judgment against them as bond principals.   The Second Appellate District affirmed. The court explained that the only bonds Appellants posted here were for the exact amount owed under the ODAs— not double or one and one-half times that amount. Thus, aside from the fact that, when Appellants posted the bonds, Appellants identified the bonds as undertakings related to their attempted section 98.2 appeal to the trial court, not an appeal with this court, the bonds were insufficient to stay the actions below based on the pendency of any appeal with this court. The trial court, therefore, did not lack jurisdiction based on the pendency of related appeals in this court.   Further, the court held that Appellants’ jurisdictional arguments misunderstand the relationship between bonds issued pursuant to section 98.2 and jurisdiction. The statute expressly contemplates a situation in which an attempted section 98.2 appeal has failed without there necessarily having been an adjudication on the merits or jurisdiction to hear a section 98.2 appeal, and the court is not only empowered but required to satisfy the relevant ODA from a bond posted under such circumstances. View "Patel v. Chavez" on Justia Law