Justia Civil Procedure Opinion Summaries
Articles Posted in U.S. Court of Appeals for the Ninth Circuit
YELP INC. V. PAXTON
Yelp, a company that publishes consumer reviews, introduced a notification on its business pages for crisis pregnancy centers (CPCs) in 2022, stating that these centers typically offer limited medical services. After objections from several state Attorneys General, including Texas Attorney General Ken Paxton, Yelp replaced the notice with one stating that CPCs do not offer abortions or abortion referrals. Despite this change, Paxton initiated an investigation and sent Yelp a notice of intent to file suit, alleging that the original notice violated the Texas Deceptive Trade Practices – Consumer Protection Act (DTPA). Yelp then filed a lawsuit in federal court, claiming First Amendment retaliation, and sought to enjoin Paxton from further action. The next day, Paxton filed a state court action against Yelp.The United States District Court for the Northern District of California dismissed Yelp’s federal case based on the Younger abstention doctrine, which prevents federal courts from interfering with ongoing state judicial proceedings. The district court found that the requirements for Younger abstention were met and that the bad faith exception did not apply.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal. The Ninth Circuit held that Younger’s bad faith exception did not apply because Yelp had not sufficiently established that the Texas civil enforcement action was brought without a reasonable expectation of obtaining a valid judgment or was facially meritless. The court also found that Yelp failed to show that Paxton’s enforcement action was motivated by a desire to harass or retaliate against Yelp for its support of abortion rights. The court concluded that the district court did not err in denying Yelp’s request for discovery and an evidentiary hearing. View "YELP INC. V. PAXTON" on Justia Law
MIROTH V. COUNTY OF TRINITY
County officials in Trinity County, California, obtained warrants to take Patricia and Stanley Miroth's children into protective custody, leading to the termination of their parental rights by a state court. The Miroths alleged that the officials failed to provide required social services and committed fraud in the state child custody proceedings, which led to the termination of their parental rights. After unsuccessful appeals in state court, the Miroths filed a federal lawsuit seeking money damages for these alleged wrongs.The United States District Court for the Eastern District of California dismissed the federal claims under the Rooker-Feldman doctrine, which prevents federal courts from reviewing state court judgments. The district court found that the Miroths were essentially seeking relief from the state court judgments and declined to exercise jurisdiction over the state law claims.The United States Court of Appeals for the Ninth Circuit reviewed the case and reversed the district court's dismissal. The Ninth Circuit held that the Rooker-Feldman doctrine did not apply because the Miroths' claims did not seek relief from or reversal of the state court's order. Instead, they sought money damages for alleged legal wrongs by adverse parties that preceded the state court's order. The court emphasized that the Rooker-Feldman doctrine is limited to cases where the federal plaintiff asserts injury caused by a state court judgment and seeks relief from that judgment. The Ninth Circuit remanded the case for further proceedings. View "MIROTH V. COUNTY OF TRINITY" on Justia Law
FALLON V. DUDEK
The plaintiff, Mya Noelia Fallon, applied for Supplemental Security Income (SSI) under the Social Security Act, citing epileptic seizures and cognitive and behavioral limitations. Her application included assessments from her neurologist, Dr. Joseph Drazkowski, and licensed professional counselor (LPC) Terry Galler, who noted significant cognitive impairments and anxiety disorders. An Administrative Law Judge (ALJ) found Fallon not disabled, giving minimal weight to the opinions of Dr. Drazkowski and LPC Galler, and discrediting other medical and lay testimony.The United States District Court for the District of Arizona partially reversed the ALJ's decision, finding errors in the discounting of some witnesses but agreeing with the ALJ's assessment of Dr. Drazkowski's and LPC Galler's opinions. The case was remanded for further consideration. On remand, the ALJ again found Fallon not disabled, incorporating the prior evaluations. Fallon appealed, and the district court affirmed the ALJ's decision, refusing to revisit its prior conclusions about the medical opinions based on the law-of-the-case doctrine.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court held that the law-of-the-case doctrine applies in the social security context, meaning that the district court did not abuse its discretion by refusing to reconsider the evaluations of Dr. Drazkowski and LPC Galler. The court explained that a social-security applicant has two options to preserve the right to appeal: immediately appeal the remand order or proceed on remand, understanding that the district court may decline to revisit settled issues. The Ninth Circuit affirmed the district court's decision, noting that Fallon forfeited her ability to challenge the evaluations by not raising the issue in her first appeal. View "FALLON V. DUDEK" on Justia Law
TESLA MOTORS V. BALAN
Cristina Balan, an automotive design engineer, filed a defamation lawsuit against Tesla, Inc. and Elon Musk, alleging that Tesla made defamatory statements about her, including accusations of theft, after an article about her was published in the Huffington Post. Tesla moved to compel arbitration based on an arbitration agreement in Balan's employment contract. The United States District Court for the Western District of Washington partially granted Tesla's motion, compelling arbitration for part of the defamation claim. Balan then amended her arbitration demand to include a defamation claim against Musk.The Western District of Washington initially denied Tesla's motion to compel arbitration in part, but the Ninth Circuit reversed this decision, ruling that the entire defamation claim was subject to arbitration. Consequently, the district court dismissed the case. The arbitrator applied California law and dismissed Balan's defamation claims against Tesla and Musk based on the statute of limitations, issuing an award in favor of Tesla and Musk.Tesla and Musk petitioned the United States District Court for the Northern District of California to confirm the arbitration award. The district court granted the petition, confirming the award. Balan appealed, arguing that the district court lacked subject matter jurisdiction to confirm the award.The United States Court of Appeals for the Ninth Circuit reviewed the case and held that the district court lacked subject matter jurisdiction to confirm the arbitration award. The Ninth Circuit cited the Supreme Court's decision in Badgerow v. Walters, which prohibits looking past the face of a petition under 9 U.S.C. § 9 to establish jurisdiction. Since Tesla's petition to confirm a zero-dollar award did not meet the amount in controversy requirement, the Ninth Circuit vacated the district court's order and remanded the case with instructions to dismiss for lack of jurisdiction. View "TESLA MOTORS V. BALAN" on Justia Law
AirDoctor, LLC v. Xiamen Qichuang Trade Co., Ltd
Plaintiff AirDoctor, LLC, sells air purifiers and replacement air filters, while Defendant Xiamen Qichuang Trade Co., Ltd., sells replacement air filters primarily through Amazon.com. Plaintiff alleged that Defendant falsely advertised its air filters as compatible with Plaintiff’s air purifiers and offering equivalent filtration, which diverted sales from Plaintiff and harmed its reputation. Plaintiff filed a Complaint alleging violations of the Lanham Act, California’s Unfair Competition Law, and California’s False Advertising Law, seeking various forms of relief, including actual damages to be determined at trial, attorney’s fees, and an injunction.The United States District Court for the Central District of California entered default judgment in favor of Plaintiff after Defendant failed to appear or respond. However, the district court denied Plaintiff’s request for actual damages, reasoning that awarding damages would exceed what was demanded in the pleadings under Rule 54(c) of the Federal Rules of Civil Procedure, as the Complaint did not specify an amount of damages sought. The district court also denied attorney’s fees based on its local rules, which tied fees to the amount of damages awarded.The United States Court of Appeals for the Ninth Circuit reviewed the case and held that Rule 54(c) does not prohibit awarding actual damages in a default judgment when the pleadings sought such damages in an amount to be determined at trial. The court referenced its decision in Henry v. Sneiders, which allowed for damages to be awarded even if the exact amount was not specified in the complaint. The Ninth Circuit reversed the district court’s denial of damages and remanded the case for further proceedings consistent with its opinion. View "AirDoctor, LLC v. Xiamen Qichuang Trade Co., Ltd" on Justia Law
IN RE EX PARTE APPLICATION OF GLINER
Gregory Gliner, a dual citizen of the United Kingdom and the United States, sought to identify the anonymous operator of the PoliticalLore.com website and the pseudonymous author of an allegedly defamatory article published on the website. Gliner intended to use this information for a defamation lawsuit in the United Kingdom. He filed an ex parte application under 28 U.S.C. § 1782 to obtain discovery from Dynadot, Inc., a California-based company that provided domain registration and privacy protection services for the website.The United States District Court for the Northern District of California denied Gliner’s application, citing the First Amendment interests of the website operator and the article author. The court did not make any relevant factual findings and did not address the statutory requirements or the Intel factors for granting discovery under § 1782. Gliner subsequently filed a motion to alter or amend the judgment, which the district court also denied.The United States Court of Appeals for the Ninth Circuit reviewed the case and found that the district court abused its discretion. The appellate court held that the First Amendment protections cited by the district court did not apply because there was no evidence that the website operator or the article author were U.S. citizens or present in the United States. Additionally, the court found no indication that the website had a U.S. audience whose First Amendment rights might be implicated. The Ninth Circuit vacated the district court’s order and remanded the case for further consideration of the § 1782 statutory factors and the Intel factors. The district court was instructed to allow Dynadot and any affected parties to contest the subpoenas if issued. View "IN RE EX PARTE APPLICATION OF GLINER" on Justia Law
BIGFOOT VENTURES LIMITED V. KNIGHTON
Bigfoot Ventures Limited brought a shareholder derivative action on behalf of NextEngine, Inc. against Mark S. Knighton, ShapeTools, LLC, and NextEngine. Bigfoot alleged that the agreement between NextEngine and ShapeTools was not intended to benefit NextEngine or its shareholders. Bigfoot had a history of litigation against NextEngine, including disputes over loans and intellectual property (IP) rights.The United States District Court for the Central District of California dismissed Bigfoot’s suit, finding that Bigfoot could not fairly or adequately represent the interests of NextEngine’s shareholders as required by Federal Rule of Civil Procedure 23.1. The court considered the ongoing litigation between Bigfoot and NextEngine, which suggested that the derivative action was being used as leverage in other lawsuits. The court also found that Bigfoot’s personal interest in gaining control of NextEngine’s IP outweighed its interest in asserting rights on behalf of NextEngine.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal. The Ninth Circuit clarified that courts are not required to assess each of the eight factors from Larson v. Dumke when determining plaintiff adequacy in a shareholder derivative action. The court held that the district court did not err in considering the ongoing litigation as an outside entanglement and found that the record supported the district court’s conclusion that Bigfoot was an inadequate plaintiff. The Ninth Circuit also held that the district court did not abuse its discretion by vacating the trial to hear the motion to dismiss, as it raised significant issues that needed to be resolved before trial. View "BIGFOOT VENTURES LIMITED V. KNIGHTON" on Justia Law
SDVF, LLC V. COZZIA USA LLC
SDVF, LLC registered a default judgment against Cozzia USA LLC in the U.S. District Court for the Central District of California to enforce and collect the judgment. This judgment was originally entered by the U.S. Bankruptcy Court for the District of Delaware. However, the Delaware Bankruptcy Court later vacated the default judgment.The U.S. District Court for the Central District of California dismissed SDVF's action to enforce the judgment, reasoning that the registered judgment was no longer valid after the underlying judgment had been set aside.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court's dismissal. The Ninth Circuit held that a registered judgment under 28 U.S.C. § 1963 is not valid if the underlying judgment has been vacated. The court explained that the registered judgment relies on the existence of the original final judgment, and once the original judgment is vacated, the registered judgment cannot be enforced. The court also noted that neither Rule 60 of the Federal Rules of Civil Procedure nor the court's inherent equitable power allows SDVF to challenge the Delaware Bankruptcy Court's ruling in the Central District of California. Thus, the district court's dismissal of the case was affirmed. View "SDVF, LLC V. COZZIA USA LLC" on Justia Law
Coleman v. Newsom
In 1990, a group of California state prisoners filed a lawsuit alleging that the State of California violated the Eighth Amendment by failing to provide adequate mental health care in its prisons. The plaintiffs, who later achieved class certification, prevailed in a 1995 bench trial, and the State was found to be in violation of its Eighth Amendment obligations. Despite efforts to develop and implement remedial plans, the State remained noncompliant with court orders to reduce mental health care provider staffing vacancies to fixed levels.The United States District Court for the Eastern District of California issued several orders over the years to address the staffing issues, including a 2017 order requiring the State to achieve a maximum ten percent vacancy rate for mental health care providers. By 2023, the State had not complied, leading the district court to establish a schedule of prospective fines for continued noncompliance. After finding persistent noncompliance, the district court issued final contempt findings in 2024, resulting in over $110 million in fines.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court's decision to hold the State in civil contempt. The Ninth Circuit agreed that the State failed to establish a substantial compliance defense or an impossibility defense. The court also held that the contempt fines were civil in nature and did not require criminal due process protections. However, the Ninth Circuit vacated the fines to the extent they exceeded the State’s monthly salary savings and remanded the case for additional findings and analysis regarding the exact amount of fines to be imposed. View "Coleman v. Newsom" on Justia Law
CAHILL V. NIKE, INC.
Plaintiffs filed a class action lawsuit against Nike, Inc., alleging gender discrimination and hostile workplace claims. During discovery, a collection of internal workplace complaints, known as the Starfish complaints, was produced under a protective order. Three media organizations, including The Oregonian, intervened in the case to gain access to these documents. Plaintiffs' attorney inadvertently sent confidential documents to a reporter from The Oregonian, who refused to return or destroy them upon request.The United States District Court for the District of Oregon initially granted a motion to intervene by the media organizations. However, when the inadvertent disclosure occurred, the magistrate judge ordered The Oregonian to return or destroy the documents. The district court vacated this order, reasoning that it lacked authority to compel a non-party to return the documents. The magistrate judge then denied the motion, and the district court affirmed this decision.The United States Court of Appeals for the Ninth Circuit reviewed the case and held that the district court had the inherent authority to order The Oregonian, as an intervenor and thus a party to the case, to return or destroy the confidential documents. The court determined that The Oregonian did not have a First Amendment right to withhold the documents because pretrial discovery proceedings are not public components of the judicial process. The court applied relaxed First Amendment scrutiny and concluded that the district court's exercise of its inherent authority over discovery furthered a substantial government interest unrelated to the suppression of expression. The Ninth Circuit vacated the district court's order and remanded the case for further proceedings consistent with its opinion. View "CAHILL V. NIKE, INC." on Justia Law