Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

The defendant engaged in a long-running scheme to illegally export components for night-vision and thermal-vision rifle scopes, which are classified as “defense articles” under federal law, from California to Russia. He did so without obtaining the required export license from the U.S. State Department and concealed his activities through offshore banking. Over nearly a decade, his illicit exports generated over $9 million in international wire transfers.After federal investigators uncovered the operation, the United States District Court for the Northern District of California charged him with conspiracy to export defense articles without a license under the Arms Export Control Act (AECA) and its implementing regulations, as well as two counts of money laundering. The defendant pleaded guilty to all three counts without a plea agreement and was sentenced to nine years in prison. His conviction and sentence were affirmed on direct appeal by the United States Court of Appeals for the Ninth Circuit, and the Supreme Court denied certiorari.Subsequently, the defendant filed a motion to vacate his sentence under 28 U.S.C. § 2255, arguing ineffective assistance of counsel. He claimed his lawyer failed to challenge the validity of the conspiracy regulation under which he was convicted and did not properly inform him about the money-laundering charges. The United States Court of Appeals for the Ninth Circuit reviewed the district court’s denial of this motion de novo. The court held that the AECA authorized the State Department to promulgate regulations criminalizing conspiracies to violate export restrictions, so counsel’s failure to challenge the regulation was not deficient. The factual record also foreclosed the defendant’s claim regarding the money-laundering pleas. The court affirmed the district court’s denial of the § 2255 motion and declined to expand the certificate of appealability to include additional claims. View "USA V. MORGOVSKY" on Justia Law

A company specializing in hybrid electric aircraft technology filed suit in Washington state court against a major aerospace manufacturer and its investment affiliate, alleging misappropriation of trade secrets, breach of contract, and tortious interference, among other state law claims. The plaintiff asserted that the defendant improperly used its confidential information, including by incorporating aspects of the plaintiff’s technology into two patents obtained by the defendant. The plaintiff’s claims involved several theories and more than 30 alleged trade secrets.The aerospace manufacturer responded by counterclaiming for a declaratory judgment that its employees were the sole inventors of one of the patents in question. The case was removed to the United States District Court for the Western District of Washington based on this federal patent law counterclaim, and a second inventorship counterclaim was later added regarding another patent. The district court granted summary judgment in favor of the defendant on both patent inventorship counterclaims. The remainder of the plaintiff’s claims proceeded to a jury, which returned a verdict awarding the plaintiff over $92 million for trade secret misappropriation and tortious interference. However, the district court granted the defendant’s post-trial motion for judgment as a matter of law and conditionally granted a new trial, vacating the jury award.On appeal, the United States Court of Appeals for the Ninth Circuit reversed the district court’s post-trial rulings and remanded the case with instructions for reassignment to a different district judge. In a subsequent petition for rehearing, the defendant argued for the first time that appellate jurisdiction belonged exclusively to the Federal Circuit because the counterclaims were compulsory and arose under patent law. The Ninth Circuit held that the defendant’s counterclaims, though arising under federal patent law, were permissive—not compulsory—because they did not share the same operative facts as the plaintiff’s state law claims; thus, Ninth Circuit jurisdiction was proper. The court also held that the district court appropriately exercised supplemental jurisdiction over the state law claims, as they shared a common nucleus of operative fact with the federal counterclaims. The petition for rehearing was denied. View "ZUNUM AERO, INC. V. THE BOEING COMPANY" on Justia Law

Federal agents conducted a sting operation in which Rami Ghanem attempted to export military equipment from the United States to Libya. Ghanem pleaded guilty to six counts, including violations of the Arms Export Control Act, unlawful smuggling, and money laundering. He proceeded to trial on a charge of conspiring to acquire, transport, and use surface-to-air missiles, for which he was found guilty and initially sentenced to 360 months in prison.The United States Court of Appeals for the Ninth Circuit vacated Ghanem’s conviction on the missile conspiracy charge due to improper jury instructions on venue and remanded the case for resentencing. On remand, the district court recalculated the guidelines range as 78-97 months but imposed the same 360-month sentence, considering the same relevant conduct as before.The Ninth Circuit reviewed Ghanem’s appeal, rejecting his arguments that the district court committed procedural errors at resentencing. The court held that the district court applied the correct legal standards in declining to reduce Ghanem’s offense level for acceptance of responsibility and did not clearly err in finding that Ghanem’s failure to accept responsibility outweighed his guilty plea and truthful admissions. The court also found that the district court adequately explained its sentencing decision, addressed Ghanem’s argument about sentencing disparities, and correctly considered conduct underlying the dismissed charge.The Ninth Circuit affirmed the 360-month sentence, concluding that the district court did not abuse its discretion in determining that the sentence was warranted under the 18 U.S.C. § 3553(a) factors. The court also rejected Ghanem’s constitutional arguments under Apprendi v. New Jersey, holding that the district court’s reliance on conduct underlying the dismissed charge did not violate the Fifth or Sixth Amendments. View "United States v. Ghanem" on Justia Law

Yi-Chi Shih, a UCLA electrical engineering professor, was convicted of violating the International Emergency Economic Powers Act (IEEPA) by exporting monolithic microwave integrated circuits (MMICs) to China without a license. These MMICs, which amplify microwave signals, were used in collaboration with Chinese engineers for a military weapons development project. Shih misrepresented the export status of the MMICs to the U.S.-based foundry, Cree, to facilitate their manufacture and export.The United States District Court for the Central District of California initially entered a judgment of acquittal on the IEEPA violation counts but later reinstated the conspiracy count upon reconsideration. At sentencing, the court applied a base offense level of 14, resulting in a 63-month sentence. Both parties appealed, and the Ninth Circuit reinstated the substantive IEEPA violation conviction and remanded for resentencing. On remand, the district court applied a base offense level of 26, concluding that Shih's conduct evaded national security controls, resulting in an 85-month sentence.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court's decision. The court held that the export controls Shih evaded were implemented for national security reasons, as the relevant Export Control Classification Numbers (ECCNs) listed national security as a reason for control. The court rejected Shih's argument that the controls were solely for foreign policy reasons and his attempt to characterize his conduct as a mere recordkeeping offense. The Ninth Circuit concluded that the higher base offense level of 26 was appropriate and affirmed the district court's judgment. View "USA V. SHIH" on Justia Law

The defendants immigrated to the U.S. from Somalia years ago and lived in Southern California. They were convicted of sending or conspiring to send, $10,900 to Somalia to support a foreign terrorist organization, 18 U.S.C. 2339, and money laundering.The Ninth Circuit affirmed the convictions. The government may have violated the Fourth Amendment and did violate the Foreign Intelligence Surveillance Act (FISA), 50 U.S.C. 1861, when it collected the telephony metadata of millions of Americans, including at least one of the defendants, but suppression was not warranted in this case because the metadata collection did not taint the evidence introduced at trial. The court’s review of the classified record confirmed that the metadata did not and was not necessary to support the probable cause showing for the FISA warrant application. The Fourth Amendment requires notice to a criminal defendant when the prosecution intends to enter into evidence or otherwise use or disclose information obtained or derived from surveillance of that defendant conducted pursuant to the government’s foreign intelligence authorities, but in this case, any lack of notice did not prejudice the defendants. Evidentiary rulings challenged by the defendants did not, individually or cumulatively, impermissibly prejudice the defense and sufficient evidence supported the convictions. View "United States v. Moalin" on Justia Law

Plaintiff, who had endured many hardships in 2003 while trying to leave Baghdad, alleged, in a purported class action, that former officials of the President George W. Bush administration engaged in the war against Iraq in violation of the Alien Tort Statute, 28 U.S.C. 1350. The district court held that plaintiff had not exhausted her administrative remedies as required by the Federal Tort Claims Act. The Ninth Circuit affirmed the dismissal, holding that the individual defendants were entitled to official immunity under the Westfall Act, 28 U.S.C. 2679(d)(1), which accords federal employees immunity from common-law tort claims for acts undertaken in the course of their official duties. The court upheld the Attorney General’s scope certification (determining that the employees were acting within the scope of their employment so that the action was one against the United States). The court rejected an argument that defendants could not be immune under the Westfall Act because plaintiff alleged violations of a jus cogens norm of international law from which no derogation is permitted and which can be modified only by a subsequent norm of general international law. Congress can provide immunity for federal officers for jus cogens violations. View "Saleh v. Bush" on Justia Law

The Federal Aviation Administration’s former Age 60 Rule required certain air carriers to cease scheduling pilots from operating aircraft when they turned age sixty. The Fair Treatment for Experienced Pilots Act (FTEPA) abrogated the Age 60 Rule and was non-retroactive with two exceptions. Plaintiff, an airline pilot for American Airlines (American), turned age sixty six days before the Age 60 Rule was abrogated. Plaintiff requested to be reinstated in lieu of the FTEPA. American denied the request. Plaintiff then filed a complaint in a federal district court, alleging that he qualified for one of the exceptions to the FTEPA’s non-retroactivity clause. The district court granted American’s motion to dismiss for failure to state a claim. The Ninth Circuit affirmed, holding that Plaintiff did not qualify for an exception to the FTEPA’s non-retroactivity, and therefore, the FTEPA’s abrogation of the Age 60 Rule was inapplicable to Plaintiff and American was immunized from any civil liability. View "Weiland v. American Airlines, Inc." on Justia Law

After an airplane was damaged in a runway accident, USAU indemnified the owner of the aircraft and brought a subrogation claim against Nabtesco. USAU alleged that the accident resulted from a defective component part, an actuator, manufactured by Nabtesco. The court affirmed the district court's order and held that the eighteen-year statute of repose set forth in the General Aviation Revitalization Act of 1994, 49 U.S.C. 40101, began to run from the date that the component part, along with the aircraft in which it was installed originally, was delivered to its first purchaser. View "United States Aviation Underwriters, Inc. v. Nabtesco Corp., et al" on Justia Law