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

Plaintiffs filed a putative class action suit on behalf of current and former students, alleging that Corinthian engaged in a deceptive scheme to entice the enrollment of prospective students in violation of California law. Corinthian moved to compel arbitration pursuant to arbitration clauses in plaintiffs' enrollment agreements. The court concluded that the Broughton-Cruz rule, which exempted claims for "public injunctive relief" from arbitration, was preempted by the Federal Arbitration Act (FAA), 9 U.S.C. 2. In the alternative, the court concluded that plaintiffs' claims were within the scope of their arbitration agreements and plaintiffs were required to arbitrate their public injunction claims. Accordingly, the court reversed the district court's order denying Corinthian's motion to compel arbitration and remanded. View "Ferguson, et al. v. Corinthian Colleges, Inc., et al." on Justia Law

After the Supreme Court issued its decision in AT&T Mobility LLC v. Concepcion, Ernst & Young filed a motion to compel arbitration of state wage and hour claims asserted by its former employee. The district court denied the motion, concluding that Ernst & Young had waived its right to arbitration by failing to assert that right as a defense in an action brought by two other former employees. The court reversed, concluding that plaintiff had not established any prejudice as a result of Ernst & Young's alleged delay in asserting its arbitral rights. View "Richards v. Ernst & Young, LLP" on Justia Law

This appeal concerned the parties' dispute over an arbitration award to plaintiff. Plaintiff appealed the district court's ruling on interest and attorney's fees, and Lloyd's cross-appealed requesting return of an alleged overpayment to plaintiff from a fund which held that the award in escrow pending the outcome of litigation. The court concluded that the decision of the arbitrators did not foreclose the district court from awarding interests on the remaining portions of the arbitration award; plaintiff was entitled to post-award, pre-judgment interest pursuant to Nev. Rev. Stat. 17.130; to the extent the mandate must include instructions on pre-judgment interest to comply with Rule 37(b) of the Federal Rules of Appellate Procedure, the court reformed the mandate as such; plaintiff was entitled to collect post-judgment interest on his post-award, pre-judgment interest from the date of this opinion until the date Lloyd's pays the interest; plaintiff was entitled to attorney's fees pursuant to Nev. Rev. Stat. 689A.410(5); and the district court did not impermissibly overpay plaintiff when it released the funds from the escrow account and included interest on the contract damages through the date of payment. Accordingly, the court reversed and remanded in part and affirmed in part. View "Lagstein v. Certain Underwriters" on Justia Law

Plaintiffs filed a putative consumer class action suit against DirecTV and Best Buy, alleging violations of California's consumer protection laws. The arbitration agreement at issue in this instance was a customer service agreement between DirecTV and individuals who believed they purchased DirecTV equipment from Best Buy stores. AT&T Mobility v. Concepcion held that Section 2 of the Federal Arbitration Act (FAA), 9 U.S.C. 2, preempted the State of California's rule rendering unenforceable arbitration provisions in consumer contracts that waive collective or class action proceedings. The court concluded that the arbitration agreement in this case was enforceable under Concepcion and, therefore, the district court did not err in compelling plaintiffs to arbitrate their claims against DirecTV. The court concluded, however, that plaintiffs were not required to arbitrate their claims with Best Buy. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Murphy v. DirecTV, Inc." on Justia Law

This case stemmed from a dispute between the parties over license agreements which allowed Myriad access to Oracle's Java programming language. On appeal, Myriad challenged the district court's partial denial of its motion to compel arbitration. The court concluded that the incorporation of the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules into the parties' commercial contract constituted clear and unmistakable evidence that the parties agreed to arbitrate arbitrability. Accordingly, the court reversed and remanded for further proceedings. View "Oracle America, Inc. v. Myriad Group A.G." on Justia Law

Plaintiffs brought a putative class action against Bresnan alleging violations of the Electronic Communications Privacy Act, 18 U.S.C. 2520-21, the Computer Fraud and Abuse Act, 18 U.S.C. 1030, and Montana state law for invasion of privacy and trespass to chattels in connection with targeted advertising they received while using Bresnan's Internet service. The district court declined to enforce a choice-of-law clause in the service subscriber agreement, provided to all Bresnan customers, specifying that New York law should apply, and an arbitration clause. The court held that AT&T Mobility LLC v. Concepcion further limited the savings clause in the Federal Arbitration Act (FAA), 9 U.S.C. 1-2 et seq., and therefore, the court held that the FAA preempted Montana's reasonable expectations/fundamental rights rule and that the district court erred in not applying New York law because a state's preempted public policy was an impermissible basis on which to reject the parties' choice-of-law selection. Accordingly, the court vacated the district court's denial of Bresnan's motion to compel arbitration and remanded to the district court with instructions to apply New York law to the arbitration agreement. View "Mortensen, et al. v. Bresnan Communications, LLC" on Justia Law

This case arose from a dispute between the parties over who could claim certain longshore work handling cargo at the Port of Seward, Alaska. At issue on appeal was whether Section 303 of the Labor Management Relations Act (LMRA), 29 U.S.C. 187, permitted an action challenging the union's conduct at the arbitration when plaintiff had admittedly failed to challenge the arbitration award itself in court under Section 301 of the LMRA. The court reversed the district court's dismissal for lack of statutory standing because nothing in section 303 precluded plaintiffs to first exhaust a petition to vacate the arbitration award before they could claim section 303's remedy. Nothing in section 303 barred an employer - whether primary or neutral - from seeking compensatory damages for a union's alleged unfair labor practice, even if that practice occurred during arbitration. View "American President Lines, Ltd. v. ILWU" on Justia Law

Plaintiff filed a class action complaint against NoteWorld alleging, among other things, violations under the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961 et seq., and Washington state law. At issue on appeal was whether an entity could compel arbitration on the basis of an arbitration clause in a contract to which it was not a party. The court concluded that the district court correctly concluded that NoteWorld was not entitled to invoke the arbitration clause as a third-party beneficiary or through equitable estoppel. Accordingly, the court need not decide any other question on appeal and affirmed the judgment. View "Rajagopalan v. NoteWorld, LLC" on Justia Law

Plaintiff played professional football for nineteen years. When he retired in 2002, he was employed by the Tennessee Titans. In 2008, he filed a workers' compensation claim in California, alleging that he suffered pain and disability from injuries incurred during his career. Plaintiff asked the Ninth Circuit Court of Appeals to vacate an arbitration award that prohibited him from pursuing workers' compensation benefits under California law, arguing (1) the award violated California public policy and federal labor policy, and (2) the award was in disregard of the Full Faith and Credit Clause. The district court confirmed the arbitration award. The Ninth Circuit affirmed, holding (1) Plaintiff did not allege sufficient contacts with California to show his workers' compensation claim came within the scope of California's workers' compensation regime, and therefore, he did not establish that the arbitration award violated California public policy; (2) because Plaintiff did not show that the award deprived him of something to which he was entitled under state law, he did not show it violated federal labor policy; and (3) Plaintiff did not establish that the arbitrator manifestly disregarded the Full Faith and Credit Clause. View "Matthews v. Nat'l Football League Mgmt. Council " on Justia Law

Plaintiffs, current and former customers of AT&T, filed a class action against AT&T, alleging unjust enrichment and and breach of contract. AT&T responded by seeking to enforce an arbitration agreement contained in its contracts with plaintiffs. The district court refused to enforce the arbitration agreement on state-law unconscionability grounds, relying primarily on the agreement's class-action waiver provision. The court reversed the district court's substantive unconscionability ruling where the FAA preempted the Washington state law invalidating the class-action waiver. The court remanded for further proceedings related to plaintiffs' procedural unconscionability claims for the district court to apply Washington choice-of-law rules.