Justia Civil Procedure Opinion Summaries

Liberty Insurance Corporation (“Liberty”) sought to rely on a general coverage exclusion, it was aware that its policy also contained an exception to the general exclusion if the Defendant homeowners, could show that the all-terrain vehicle (ATV) was not subject to motor vehicle registration and was used to “service” their cabin. One of Defendant homeowners was the only witness who testified during a bench trial.   After the trial concluded, the district court (at Liberty’s request) imposed Rule 37(c)(1) sanctions on Defendants for failing to disclose a witness. The district court also excluded one of the homeowner’s testimony about whether the ATV was registered and used to service the cabin, based on the theory that he had not been properly disclosed as a witness. The district court ruled that ATV was used to service the cabin at any time,” and thus found that the Defendants were not entitled to coverage.   The Ninth Circuit reversed the district court’s order imposing sanctions and remanded for a new trial. The court held that because Defendants complied with Rule 26(a)(1)(A)(i)’s requirement to disclose “individuals likely to have discoverable information—along with the subjects of that information” for the purpose of identifying potential fact witnesses, sanctions under Rule 37(c)(1) were not justified. But even Defendants had not complied with Rule 26, the district court abused its discretion by imposing Rule 37(c)(1) sanctions without analyzing (1) whether the alleged defects in the disclosures were harmless and (2) whether the defects involved willfulness, fault, or bad faith. View "LIBERTY INSURANCE CORPORATION V. YVONNE BRODEUR" on Justia Law

Affirming the district court’s summary judgment in favor of National Railroad Passenger Corporation and other railroad companies, the Ninth Circuit held that, as to railroad employees, the federal Railroad Unemployment Insurance Act preempts California’s Healthy Workplaces, Healthy Families Act, which requires employers to provide employees with paid sick leave that they may use for specified purposes.   RUIA provides unemployment and sickness benefits to railroad employees, and it contains an express preemption provision disallowing railroad employees from having any right to “sickness benefits under a sickness law of any State.” Looking at the plain meaning of the statutory text, the court concluded that the preemption provision broadly refers to compensation or other assistance provided to employees in connection with physical or mental well-being. The court concluded that RUIA’s statutory framework and stated purposes confirm the breadth of its preemptive effect.   The court found unpersuasive an argument by the California Labor Commissioner and union-intervenors that RUIA does not preempt the California Act as to railroad employees because the benefits the Act offers are different in kind than RUIA’s benefits. The court also found unpersuasive (1) an argument that RUIA should be interpreted as preempting only the kinds of state laws that existed at the time RUIA was amended to provide for sickness benefits; and (2) various textual arguments in support of a narrower interpretation of the preemption provision. View "NAT'L RAILROAD PASSENGER CORP. V. JULIE SU" on Justia Law

In a prior appeal, the Ninth Circuit vacated a prior dismissal for lack of personal jurisdiction and remanded with instructions that Plaintiff be permitted to undertake jurisdictional discovery. On remand, the district court granted defendant VNG Corporation’s renewed motion to dismiss, finding that there was no specific personal jurisdiction in California over VNG, a Vietnamese corporation that released the Zing MP3 mobile music application in the Apple App Store and the Google Play store.   The Ninth Circuit reversed the district court’s dismissal, for lack of personal jurisdiction, of a copyright infringement suit and remanded for further proceedings. In assessing whether Plaintiff established a prima facie case of jurisdiction, the court analyzed jurisdiction under Federal Rule of Civil Procedure 4(k)(2), which provides for jurisdiction over foreign defendants that have ample contact with the United States as a whole, but whose contacts are so scattered among states that none of them would have jurisdiction. Under Rule 4(k)(2), the plaintiff must prove: (1) the claim at issue arises from federal law; (2) the defendant is not subject to any state’s courts of general jurisdiction; and (3) invoking jurisdiction upholds due process. The plaintiff has the burden to show the first two prongs, and the burden then shifts to the defendant to show that the application of jurisdiction would be unreasonable. The court concluded that VNG purposefully targeted American companies and their intellectual property. Rejecting VNG’s argument regarding forum non conveniens, the court concluded that venue, in this case, was not proper in Vietnam. View "LANG VAN, INC. V. VNG CORPORATION" on Justia Law

Plaintiffs, an individual and his telemarketing companies, sued the Federal Trade Commission (“FTC”), over its alleged prohibition of most uses in telemarketing of soundboard technology.  The Ninth Circuit affirmed the district court’s dismissal for lack of subject matter jurisdiction of Plaintiffs’ complaint against the FTC based on Plaintiffs’ failure to adequately plead Article III standing.   The court rejected the FTC’s contention that the district court’s order was not final and appealable. The panel held that there was appellate jurisdiction based on the principles set forth in WMX Technologies, Inc. v. Miller, 104 F.3d 1133 (9th Cir. 1997), and subsequent precedents. The court concluded that based on the whole record – including the failure to grant leave to amend and the clerk’s immediate entry of final judgment – the district court’s dismissal was final.   The court agreed with the district court that Plaintiffs failed to plead facts establishing an injury in fact for purposes of standing under Article III of the Constitution. The court held that the complaint provided virtually no information about Plaintiffs’ use or concrete plans to use soundboard technology in a manner that contravened FTC regulations, nor did it offer any indication that the threat of FTC enforcement against them was credible or imminent. View "UNIFIED DATA SERVICES, LLC V. FTC" on Justia Law

Plaintiff Ross Dress for Less, Inc. sued Makarios seeking declaratory relief regarding its end-of-lease obligations in connection with Ross’s lease of the Richmond Building, as to which Makarios had received an assignment of rights and thereafter acted as Ross’s landlord. Makarios demanded a jury trial on its counterclaims. Ross filed a document waiving its right to a jury trial under Fed. R. Civ. P. 38. Makarios moved to withdraw its jury demand. Ross argued it was entitled to rely on Makarios’s request for a jury. The district court held a four-day Phase II bench trial and entered judgment in favor of Makarios.   The Ninth Circuit affirmed the district court’s ruling granting Defendant’s motion to withdraw its demand for a jury trial. The court explained that because jurisdiction in the district court was based on diversity of citizenship, Oregon substantive law and federal procedural law governed.   The court wrote that neither party argued that the waiver in Section 13.04 of the lease was unknowing or involuntary, but the parties disagreed on the scope of the provisions. The court held that the ordinary meaning of Section 13.04 was clear and it established that Ross waived its right to a jury trial on counterclaims filed by Makarios. The court rejected Ross’s argument that even if it contractually waived its jury trial right, it was still entitled to rely on Makarios’s jury demand under Rules 38(d) and 39(a).  The court held that typically, the combination of Rules 38(d) and 39(a) prevents a party from unilaterally withdrawing its jury demand, even when no other party has requested a jury trial. View "ROSS DRESS FOR LESS, INC. V. MAKARIOS-OREGON, LLC" on Justia Law

The Los Angeles Department of Transportation (“LADOT”) required e-scooter operators to provide vehicle location data through an application programming interface called Mobility Data Specification (“MDS”). Used in conjunction with the operators’ smartphone applications, MDS automatically compiles real-time data on each e-scooter’s location by collecting the start and end points and times of each ride taken.   The Ninth Circuit amended its prior opinion affirming the district court’s order dismissing, for failure to state a claim, an action brought by an e-scooter user alleging that the City of Los Angeles’ e-scooter permitting program violates the Fourth Amendment and California law.   The court first held that Plaintiff’s complaint alleged facts giving rise to Article III standing and therefore the court rejected LADOT’s assertion that the complaint was beyond the court’s constitutional purview because it was premised on a hypothetical invasion of privacy that might never occur. Drawing all reasonable inferences in favor of Plaintiff as it was required to do at the Fed. R. Civ. P. 12(b)(6) stage, the proper reading of the complaint was that Plaintiff alleged that the collection of the MDS location data itself—without more—violated his constitutional rights.   The court concluded that the third-party doctrine, which provides that a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties, foreclosed Plaintiff’s claim of a reasonable expectation of privacy over the MDS data. The court affirmed the district court’s dismissal of Plaintiff’s claim under the California Electronic Communications Privacy Act (“CalECPA”) on the grounds that the statute did not provide Plaintiff with authorization to bring an independent action to enforce its provisions. View "JUSTIN SANCHEZ V. LADOT" on Justia Law

Plaintiff-appellant Amber Machowski was an individual with a disability who used a wheelchair for mobility. Defendant 333 N. Placentia Property, LLC, was the owner of a property in Fullerton, California, on which a business establishment known as City Market Liquor II was located. When Machowski attempted to patronize the store, she encountered architectural barriers that prevented her from making full use and enjoyment of the premises. Machowski sued Defendant, asserting claims under the Americans with Disabilities Act, and the Unruh Civil Rights Act. The complaint sought injunctive relief, statutory damages under the Unruh Act, and reasonable attorney’s fees and costs. After Defendant failed to respond to the complaint, Machowski applied for the entry of default judgment, seeking injunctive relief and statutory damages. Machowski’s application for default judgment did not seek an award of attorney’s fees. Instead, it advised the district court that “plaintiff will separately file a motion for her attorney fees and costs once this application is granted and judgment has been entered.” The district court declined to exercise supplemental jurisdiction over Machowski’s Unruh Act claim, granted default judgment on her ADA claim, ordered injunctive relief, and sua sponte awarded Machowski $1000 in attorney’s fees under Central District of California Local Rule 55-3. Machowski timely appealed the fee award. The Ninth Circuit held that where, as here, a prevailing party advises the district court that it is opting out of the fee schedule and will seek by motion, an award of reasonable attorney's fees, the district court abuses its discretion by disregarding the plaintiff's choice and sua sponte awarding fees under the fee schedule. Accordingly, the fee award was vacated and the matter remanded for further proceedings. View "Machowski v. 333 N. Placentia Property, LLC" on Justia Law

A nonprofit organization called California River Watch claimed that the City of Vacaville, California was violating the Resource Conservation and Recovery Act (“RCRA”). River Watch claimed the City’s water wells were contaminated by a carcinogen called hexavalent chromium. That carcinogen, River Watch says, was in turn transported to the City’s residents through its water-distribution system. River Watch’s argument on appeal was that because the hexavalent chromium originated from the Wickes site, it was “discarded material” under RCRA, and thus the City was liable for its transportation through its water-distribution system. The parties cross-moved for summary judgment. The district court granted the City’s motion and denied River Watch’s motion because, as it explained, River Watch hadn’t demonstrated how the City’s water-processing activities could qualify as discarding “solid waste” under RCRA. Thus, the district court explained, RCRA’s “fundamental requirement that the contaminant be ‘discarded’” was not satisfied. River Watch appealed. The Ninth Circuit was satisfied that hexavalent chromium met RCRA's definition of "solid waste." However, the Court found RCRA’s context makes clear that mere conveyance of hazardous waste cannot constitute “transportation” under the endangerment provision. Under the facts presented, the Court found the City did not move hexavalent chromium in direct connection with its waste disposal process. Under River Watch’s theory of liability, hexavalent chromium seeped through groundwater into the City’s wells and the City incidentally carried the waste through its pipes when it pumps water to its residents. The Court concluded City did not have the necessary connection to the waste disposal process to be held liable for “transportation” under § 6972(a)(1)(B) of the Act. Because the City could not be held liable under RCRA, the district court’s grant of summary judgment for the City was affirmed. View "California River Watch v. City of Vacaville" on Justia Law

Plaintiff brought five claims arising under the California Private Attorneys General Act (“PAGA”), all concerning alleged wage and hour violations, against Wal-Mart Stores, Inc. and Wal-Mart Associates, Inc. (collectively, “Walmart”). The district court dismissed some of Plaintiff’s PAGA claims on the ground that they were unmanageable and dismissed her remaining PAGA claims as a discovery sanction.   The Ninth Circuit reversed the district court’s dismissal. The court explained California’s Labor Code allows employees to sue an employer for violating provisions designed to protect the health, safety, and compensation of workers. Following the enactment of PAGA in 2004, employees may stand in the shoes of the Labor Commissioner and recover civil penalties for Labor Code violations. Sections 2699 9(a) and 2699.3 of PAGA contain requirements for such actions.   The court held that the recently decided Viking River Cruises, Inc. v. Moriana, — S. Ct. —, 2022 WL 2135491, at *3 (2022), case expressly foreclosed Walmart’s argument that Plaintiff was barred from pursuing her PAGA claims because she did not seek class certification under Rule 23. In addition, given their differing coverage, PAGA and Rule 23 are fully compatible and do not conflict for purposes of the first step of an Erie analysis. The court also rejected Walmart’s argument that the district court correctly rejected some of Plaintiff's PAGA claims as unmanageable under its inherent authority. The court held that Rule 26(a) applied to claims for damages. Plaintiff's PAGA claims seek civil penalties, not damages, so Rule 26(a) does not apply to her PAGA claims. View "CHELSEA HAMILTON V. WAL-MART STORES, INC." on Justia Law

Plaintiff, a Russian citizen who resides in Russia, filed a civil RICO suit against Defendant Russian citizen who resides in California, and eleven other defendants. After securing a foreign arbitration award against Defendant. Plaintiff obtained a judgment from a United States district court confirming the award and giving Plaintiff the rights to execute that judgment in California and to pursue discovery. Plaintiff alleged that Defendants engaged in illegal activity, in violation of RICO, to thwart the execution of that California judgment.   Consistent with the Second and Third Circuits, but disagreeing with the Seventh Circuit’s residency-based test for domestic injuries involving intangible property, the court held that the alleged injuries to a judgment obtained by Plaintiff from a United States district court in California were domestic injuries to property such that Plaintiff had statutory standing under RICO. The court concluded that, for purposes of standing under RICO, the California judgment existed as property in California because the rights that it provided to Plaintiff existed only in California. In addition, much of the conduct underlying the alleged injury occurred in or was targeted at California. View "VITALY SMAGIN V. COMPAGNIE MONEGASQUE DE BANQUE" on Justia Law