Justia Civil Procedure Opinion Summaries

The Centers for Medicare & Medicaid Services (CMS) pays Medicare Advantage organizations fixed monthly amounts for each enrollee. Medicare Advantage organizations have a financial incentive to exaggerate an enrollee’s health risks by reporting diagnosis codes unsupported by the enrollee’s medical records, and therefore, Medicare regulations require a Medicare Advantage organization to certify that the risk adjustment data is submits are accurate and truthful. Qui Tam Relator James Swoben filed a third amended complaint alleging that Medicare Advantage organizations performed biased retrospective medical record reviews, which rendered Defendants’ periodic certifications false, in violation of the False Claims Act. Defendants moved to dismiss Swoben’s claims. In response, Swoben sought to amend his complaint. The district court dismissed the third amended complaint with prejudice, concluding that Swoben failed to allege a claim with particularity as required by Fed. R. Civ. P. 9(b). The court also denied leave to amend, citing both futility of amendment and undue delay. The Ninth Circuit vacated the district court’s judgment, holding that the dismissing Swoben’s third amended complaint without leave to amend based on futility of amendment and undue delay and that leave to amend was proper in this case. View "United States v. United Healthcare Insurance Co." on Justia Law

The Yakama Nation, King Mountain Tobacco Company, and Delbert Wheeler brought suit for injunctive and declaratory relief seeking to bar federal agencies and officials from imposing the federal excise tax on tobacco products manufactured by King Mountain, a corporation organized, existing, and operating under the laws of the Yakama Nation. The district court granted the federal agencies’ motion to dismiss as to King Mountain and Wheeler. The court then entered summary judgment in favor of the federal agencies. The Yakama Nation appealed. The Ninth Circuit vacated the district court’s summary judgment, holding (1) Yakama Nation’s claims were barred by the Anti-Injunction Act; and (2) the Yakama Nation’s claims did not fall within the narrow exception to the Act set out in South Carolina v. Regan. Remanded with instructions to dismiss for lack of jurisdiction. View "Yakama Indian Nation v. Alcohol & Tobacco Tax & Trade Bureau" on Justia Law

After the County approved a county ordinance prohibiting the growth, testing, and cultivation of genetically engineered crops, plaintiffs filed suit to enjoin and invalidate the Ordinance. Two public-interest citizens’ groups, Shaka and MOM Hui, filed motions to intervene. The magistrate judge granted Shaka’s motion to intervene but denied MOM Hui’s, finding that Shaka would adequately represent MOM Hui’s interests. The district court held that the magistrate judge had jurisdiction to rule on MOM Hui’s motion to intervene; any appeal from the magistrate judge’s order needed to be taken to the Ninth Circuit because the magistrate judge, having obtained the consent of the parties, had authority to enter a final decision under 28 U.S.C. 636(c)(1); and thus the district court lacked jurisdiction to hear MOM Hui’s appeal. The court agreed with the Seventh Circuit that a prospective intervenor is not a "party" as the term is used in section 636(c)(1). The court concluded that, because the magistrate judge had the consent of the parties and did not need the consent of MOM Hui, the magistrate judge had jurisdiction to rule on MOM Hui’s motion to intervene. Effectively presiding as a district judge over the suit, the court explained that the magistrate judge’s intervention order became immediately appealable to this court. Accordingly, the court affirmed the judgment. View "Roberto Ito Farm, Inc. v. County of Maui" on Justia Law

Plaintiff filed suit against the State Defendants, alleging state and federal claims arising out his discharge from the Hospital and subsequent transportation to Sacramento. The district court dismissed the federal statutory claims with prejudice as a sanction under Fed. R. Civ. P. 41(b), and the supplemental state law claims without prejudice. The court held that plaintiff waived the argument that the district court abused its discretion in dismissing his federal claims under Rule 41(b). The court explained that, in the absence of a showing that the district court abused its discretion, because the prior interlocutory order of dismissal under Rule 12(b)(6) is not reviewable, there would be no basis to appeal. Therefore, the court concluded that, because plaintiff failed to make in his opening brief the abuse of discretion argument as to Rule 41(b), he has waived it. Accordingly, the court affirmed the district court's dismissal. View "Brown v. Rawson-Neal Psychiatric Hospital" on Justia Law

Plaintiffs filed suit against the County Defendants in 2008, alleging that the County Defendants were discharging polluted stormwater in violation of the terms of their National Pollutant Discharge Elimination System (NPDES) permit, issued pursuant to the Federal Water Pollution Control Act (the Clean Water Act), 33 U.S.C.1251 et seq. The court held in 2013 that as a matter of law, the County Defendants had violated their permit. In 2012, during the pendency of appellate proceedings, the County Defendants sought and received a new NPDES permit from the Los Angeles Regional Water Quality Control Board (the Regional Board), which now governs the County Defendants’ stormwater discharges. In January 2015, the County Defendants filed a motion to dismiss plaintiffs’ entire lawsuit on mootness grounds, arguing that the 2012 Permit supplanted the 2001 Permit and therefore relief was not available to plaintiffs. Plaintiffs filed an interlocutory appeal from the district court's dismissal of their claims for injunctive relief. The court held that it has jurisdiction over the appeal under 28 U.S.C. 1292(a)(1). The court also held that plaintiffs' injunctive claims are not moot because the County Defendants are still subject to receiving water limitations, which are substantially the same as the limitations in the 2001 Permit. The County Defendants have not met their burden of making it “absolutely clear” that no violation will recur in the future. Accordingly, the court reversed the judgment. View "NRDC V. County of Los Angeles" on Justia Law

Safe Cig challenges an almost $1.5 million default judgment awarded in NewGen's favor as void for lack of subject matter jurisdiction. The court concluded that the district court acted within its statutory authority to give NewGen the opportunity to correct its allegations. In this case, the amended complaint remedied the deficiencies of the original complaint, alleging the parties were of diverse citizenship; alleged that NewGen was an LLC organized in Wisconsin and that its sole member was a citizen of Wisconsin when the complaint was filed; and alleged that Safe Cig was an LLC organized in California with five members, each of which was a citizen of California at the time the complaint was filed. The court also concluded that the district court had subject matter jurisdiction and the amended complaint corrected any defect in the pleadings. Because the only real challenge to jurisdiction concerned the sufficiency of the pleadings, the amended allegations - which were undoubtedly legally sufficient - resolved the only question ever raised regarding the district court’s subject matter jurisdiction. The court further concluded that the district court’s decision to enter default judgment was not an abuse of discretion where none of the district court's factual findings were in clear error. Finally, the court upheld the district court's damage award. Accordingly, the court affirmed the judgment. View "NewGen v. Safe Cig" on Justia Law

After Sony and HannStar engaged a mediator to resolve a price-fixing dispute, the mediator proposed settlement in an email exchange. Both parties accepted by email, but when HannStar refused to comply, Sony filed suit to enforce the agreement. The district court denied Sony’s motion for summary judgment, holding that the California Evidence Code’s mediation privilege bars introduction of the settlement emails. The parties stipulated to a final judgment. The court held that, because at the time the parties engaged in mediation, their negotiations concerned (and the mediated settlement settled) both federal and state law claims, the federal law of privilege applies. Accordingly, the court concluded that the district court erred in applying California privilege law to resolve this dispute. The court reversed and remanded. View "Sony Electronics v. HannStar Display Corp." on Justia Law

Plaintiff filed suit in state court against Innoventions, alleging several causes of action, including four class claims. The gravamen of her complaint was that Innoventions had marketed a product called DiabeStevia with “grossly misleading and exaggerated claims” concerning its use and effectiveness. Innoventions removed the case to federal court pursuant to the Class Action Fairness Act of 2005 (CAFA), Pub. L. No. 109-2, 119 Stat. 4. The district court subsequently dismissed the case. The court held that the rule that a removed case in which the plaintiff lacks Article III standing must be remanded to state court under 28 U.S.C. 1447(c) applies as well to a case removed pursuant to CAFA as to any other type of removed case. The court rejected Innoventions' three arguments to the contrary. Finally, the court could not say with “absolute certainty” that remand would be futile. Therefore, the district court should have remanded this case to state court pursuant to section 1447(c). The court reversed and remanded. View "Polo v. Innoventions Int'l" on Justia Law

Plaintiff, a member of the Tribe, filed suit against the Tribe in California state court for employment-related claims. The Tribe timely removed to district court and then moved to dismiss based on tribal immunity. The district court denied the motion based on the ground that the Tribe unequivocally waived its immunity by removing the action to federal court. The court followed the Eleventh Circuit and held that the act of removal does not express the clear and unequivocal waiver that is required for a tribe to relinquish its immunity from suit. Accordingly, the court reversed and remanded for further proceedings. View "Bodi v. Shingle Springs Band of Miwok Indians" on Justia Law

This case concerns a dispute between the parties over who has priority ownership of property located in Las Vegas. Nevada has a statute that gives a homeowners’ association lien priority over “all other liens and encumbrances” (subject to some limited exceptions) for up to nine months of unpaid HOA fees. NEV. REV. STAT. 116.3116(2)–(3). After the HOA foreclosed on property that Ashley Spencer bought, Weeping Hollow purchased the property at the foreclosure sale. Just over two months after the HOA foreclosure sale, Wells Fargo attempted to foreclose on the property under its 2008 deed of trust. Weeping Hollow filed suit in state court against Spencer, Wells Fargo, and a title insurance company. Wells Fargo removed to federal court. The district court then granted Wells Fargo’s motion to dismiss Weeping Hollow’s complaint. After the district court issued its ruling, the Nevada Supreme Court issued an opinion that expressly abrogates the district court’s interpretation of the HOA statute. Under the Nevada Supreme Court’s holding, a foreclosure on an HOA lien extinguishes an earlier-recorded security interest even though the HOA lien was recorded later. The court held that the district court erred in applying the fraudulent-joinder doctrine to this case. Because Spencer was not shown to be fraudulently joined, her presence in the action divests the district court of diversity jurisdiction and the district court must remand the case to state court. Since this case should never have made it into federal court, the court has no reason to address Wells Fargo’s constitutional and state-law arguments. View "Weeping Hollow Ave. Trust v. Spencer" on Justia Law