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

When Plaintiff was a pretrial detainee and a patient at Patton State Hospital in California, he was twice attacked by a fellow patient. He sued Defendant, the psychiatrist in charge of his unit, under 42 U.S.C. Section 1983 for injuries from the second attack, alleging that Defendant violated his Fourteenth Amendment right to substantive due process. The district court granted Defendant’s motion for summary judgment based on the defense of qualified immunity.   The Ninth Circuit affirmed. The panel determined that both tests ask whether Defendant’s conduct was reasonable, and both require Alexander to show that Defendant’s conduct was worse than negligent. The panel held that under either test, Plaintiff offered no evidence that Defendant failed to act reasonably, let alone that he was “more than negligent” in not transferring Plaintiff or the other patient after the first attack. Although Plaintiff was attacked a second time, the evidence showed that Defendant’s responses to both incidents were thorough and careful. Accordingly, the panel found no violation of Plaintiff’s constitutional rights. View "SURIE ALEXANDER V. DAU NGUYEN" on Justia Law

Appellants, the Law Offices of Ben C. Martin and the law firm Martin Baughman, PLLC (collectively, BCM), argued that the district court in this multidistrict litigation (MDL), In re Bard IVC Filters Products Liability Litigation, lacked authority to order common benefit fund assessments against the recoveries of claimants who were not involved in cases that were part of the MDL—that is, those with claims that were not filed in any court, or were filed in state court, or were filed in federal court after the MDL closed (collectively, non-MDL cases). After settling their clients’ claims against C.R. Bard, Inc. and Bard Peripheral Vascular, Inc. (collectively, Bard), BCM moved to exempt the recoveries of their clients in non-MDL cases from common benefit fund assessments. The district court denied the motion.   The Ninth Circuit affirmed the district court’s order. The panel held that the district court’s order requiring common benefit fund assessments in the non-MDL cases was within the scope of the district court’s authority. A district court properly exercises its authority to order common benefit fund holdback assessments from claimants’ recoveries in non-MDL cases when (1) counsel for claimants voluntarily consents to the district court’s authority by signing, or otherwise entering into, a participation agreement requiring contributions in exchange for access to common benefit work product, (2) that participation agreement is incorporated into a court order, and (3) as a result of entering the participation agreement, counsel receives access to common benefit work product. The panel affirmed the district court’s order denying claimants’ motion to exempt non-MDL cases from common benefit fund assessments. View "IN RE: LAW OFFICES OF BEN C. MARTIN V. BABBITT & JOHNSON PA, ET AL" on Justia Law

Petitioner challenged the constitutionality of the appointment and removal process for Immigration Judges and members of the Board of Immigration Appeals (BIA). These officials exercise significant authority within our immigration system, making them officers under the Appointments Clause.   The Ninth Circuit denied the petition. The panel rejected Petitioner’s suggestion that Immigration Judges and BIA members are principal officers who, under the Appointments Clause of Article II, must be nominated by the President and confirmed by the Senate. Rather, the panel concluded that they are inferior officers (whose appointment may be vested in the head of a department) because the Attorney General ultimately directs and supervises their work. Thus, the panel held that the Appointments Clause allows Congress to vest their appointment in the Attorney General. The panel next held that the removal process for Immigration Judges and BIA members satisfies Article II, which requires that officers remain accountable to the President by limiting restrictions on the removal of the President’s subordinates. The panel explained that Attorney General has the power to remove Immigration Judges and BIA members, and that nothing restricts the Attorney General’s ability to remove them. Thus, these officers remain dependent on the Attorney General for their positions—and by extension, on the President. View "FORTUNATO AMADOR DUENAS V. MERRICK GARLAND" on Justia Law

The Ninth Circuit affirmed the district court’s order denying Vitol, Inc.’s motion to dismiss, as untimely under the applicable statute of limitations, a complaint filed by the Federal Energy Regulatory Commission (FERC) that sought an order affirming the assessment of a civil penalty against Vitol and one of its traders for making unlawful manipulative trades in the California energy market.   The court explained that in measuring the limitations period, the critical question is when FERC’s claim “accrues.” Vitol contended that FERC’s federal district court action was untimely because FERC’s claim accrued as soon as the allegedly unlawful trading occurred. The panel rejected Vitol’s contention and held that FERC’s claim accrued on the date that FERC assessed a civil penalty. The panel reasoned that FERC’s claim arises under 16 U.S.C. Section 823b(d)(3)(B), which gives the agency a cause of action in federal court for “affirming the assessment of the civil penalty,” and that claim does not accrue until FERC has assessed a penalty. The panel also agreed with the district court’s conclusion that FERC’s administrative process for assessing a civil penalty is itself a “proceeding” that is subject to the five-year statute of limitations in 28 U.S.C. Section 2462, and therefore FERC must initiate the proceeding by issuing a notice of proposed penalty within five years of any alleged wrongdoing. View "FERC V. VITOL INC., ET AL" on Justia Law

Columbia Basin College officials terminated R.W. from the nursing program after learning that he had sought medical treatment for homicidal thoughts about three instructors. R.W. filed suit seeking damages, reinstatement in the nursing program, and expungement of his failing grades.   On interlocutory appeal, the Ninth Circuit  (1) affirmed the district court’s order determining that Plaintiff’s suit for injunctive relief against Columbia Basin College officials in their official capacity could proceed under the Ex parte Young exception to Eleventh Amendment sovereign immunity; and (2) dismissed in part defendants’ appeal for lack of jurisdiction in plaintiff R.W.’s action alleging First Amendment violations and other claims arising from his termination from a nursing program at Columbia Basin College.   The panel held that R.W.’s complaint alleged an ongoing violation of his constitutional rights given the uncertainty as to whether he could reenroll in the nursing program or qualify for financial aid; his claim for prospective relief was not moot; and the Dean of Student Conduct was a proper defendant because he was directly involved with the alleged constitutional violations and there was a question of fact as to whether he had authority to implement injunctive relief if so ordered.   the panel held that it lacked jurisdiction to review the district court’s order declining to reconsider its prior partial summary judgment for R.W. on his 42 U.S.C. Section 1983 claim for violation of the First Amendment. The merits of R.W.’s First Amendment claim were severable from, and neither necessary to nor necessarily resolved by, the district court’s ruling on the Ex parte Young issue and were reviewable upon entry of final judgment. View "R. W. V. COLUMBIA BASIN COLLEGE, ET AL" on Justia Law

Two putative class actions are at issue in these appeals: Nacarino v. Kashi Co., No. 22-15377, and Brown v. Kellogg Co., No. 22-15658. The complaints were filed in the Northern District of California, and they asserted materially identical state-law consumer protection claims for unfair business practices, unjust enrichment, and fraud. Both complaints alleged that the front labels on several of Defendants’ products are “false and misleading” under state and federal law. At issue is whether food product labels that advertise the amount of protein in the products are false or misleading.   The Ninth Circuit affirmed on different grounds the district court’s dismissal of the two complaints. The panel rejected Plaintiffs’ arguments that the protein claims on Defendants’ labels were false because the nitrogen method for calculating protein content overstated the actual amount of protein the products contained. The panel held that FDA regulations specifically allow manufacturers to measure protein quantity using the nitrogen method.   The panel rejected Plaintiffs’ arguments that the protein claims on Defendants’ labels were misleading because the “amount of digestible or usable protein the Products actually deliver to the human body is even lower” than the actual amount of protein the products contain. The panel held that Defendants’ protein claims could be misleading under FDA regulations if they did not accurately state the quantity of protein or if the products did not display the quality-adjusted percent daily value in the Nutritional Facts Panel. However, Plaintiffs’ complaints did not allege that the challenged protein claims were misleading within the meaning of the federal regulations. View "ELENA NACARINO, ET AL V. KASHI COMPANY" on Justia Law

Appellant, former Chief Financial Officer of Convergence Ethanol, Inc., and former employee of Convergence and its subsidiary California MEMS USA, Inc., challenged his liability for the unpaid payroll taxes of California MEMS. The bankruptcy court denied both sides’ motions for summary judgment on the issue of whether Appellant was a “responsible person” regarding the payroll taxes under 26 U.S.C. Section 6672. Rather than proceed to trial, Appellant agreed to a stipulated judgment allowing the Internal Revenue Service’s claim, but he made clear on the record that his consent was subject to his stated intention to appeal that judgment on the grounds that his motion for summary judgment should have been granted.   The Ninth Circuit affirmed the district court’s order affirming the bankruptcy court’s judgment in favor of the United States. The panel concluded that the bankruptcy court’s judgment was sufficiently “final” under Section 158(d)(1) because it fully disposed of the claims raised by Appellant’s adversary complaint. The panel held that jurisdiction was not precluded by the holding of Ortiz v. Jordan, 562 U.S. 180 (2011), and Dupree v. Younger, 598 U.S. 729 (2023), that, on appeal from a final judgment after a trial on the merits, an appellate court may not review a pretrial order denying summary judgment if that denial was based on the presence of a disputed issue of material fact. The panel held that the bankruptcy court correctly concluded that Appellant failed to show that, viewing the summary judgment record in the light most favorable to the IRS, a rational trier of fact could not reasonably find in the IRS’s favor. View "IN RE: RICHARD YORK, ET AL V. USA" on Justia Law

Relator John Hendrix and five public-agency exemplar plaintiffs claim that J-M Manufacturing Co. (“J-M”) violated the federal and various state False Claims Acts (“FCAs”) by representing that its polyvinyl chloride (“PVC”) pipes were compliant with industry standards. In Phase One of a bifurcated trial, a jury found that J-M knowingly made false claims that were material to the public agencies’ decisions to purchase J-M pipe. After the jury was unable to reach a verdict in Phase Two, the district court granted J-M judgment as a matter of law (“JMOL”) on actual damages and awarded one statutory penalty for each project involved in plaintiffs’ claims.   The Ninth Circuit affirmed. The panel held that sufficient evidence of falsity, materiality, and scienter supported the Phase One verdict. A reasonable jury could conclude that plaintiffs received some pipe not meeting industry standards. Further, the jury reasonably found that plaintiffs would not have purchased or installed J-M pipe had they been told the truth that J-M knew it had stopped producing pipes through processes materially similar to those used at the time of compliance testing and also knew that a significant amount of the pipe later produced did not meet industry standards. Plaintiffs’ failure to prove that any individual stick of pipe that they received was non-compliant did not mean that they failed to establish scienter. The panel held that the district court properly awarded JM judgment as a matter of law on actual damages under the federal False Claims Act. Plaintiffs did not establish actual damages by showing that they would not have bought the pipe had they known the truth. View "JOHN HENDRIX, ET AL V. J-M MANUFACTURING CO., INC., ET AL" on Justia Law

Plaintiff brought suit in federal district court against the Corporation of the President of the Church of Jesus Christ of Latter-Day Saints, alleging fraud under California law. Plaintiff is a former member of the Church of Jesus Christ of Latter-Day Saints. (The Corporation is the legal entity behind the Church of Jesus Christ of Latter-Day Saints. We refer to both the Corporation and the Church as “the Church.”) Plaintiff alleged that, from 1993 until 2015, he contributed substantial amounts of cash and corporate shares to the Church as tithes. He alleged that during at least some of that time, he relied on false and misleading statements by the Church about its use of tithing money. The district court granted the Church’s motion for summary judgment. It held that no reasonable juror could find that the Church had fraudulently misrepresented how tithing funds were used.   The Ninth Circuit reversed in part, affirmed in part, and remanded. The court held that there is evidence in the record from which a reasonable juror could conclude that the Church knowingly misrepresented that no tithing funds were being or would be used to finance the development of the shopping mall and that Huntsman reasonably relied on the Church’s misrepresentations. The panel rejected the Church’s argument that Plaintiff’s fraud claims are barred by the First Amendment. The panel held that the ecclesiastical abstention doctrine did not apply because the questions regarding the fraud claims were secular and did not implicate religious beliefs about tithing itself. Nor was the panel required to examine Plaintiff’s religious beliefs about the appropriate use of church money. View "JAMES HUNTSMAN V. CORPORATION OF THE PRESIDENT, ET AL" on Justia Law

High-level officials in the California prison system transferred 122 inmates from the California Institution for Men, where there was a widespread COVID-19 outbreak, to San Quentin State Prison, where there were no known cases of the virus. The transfer sparked an outbreak of COVID-19 at San Quentin that ultimately killed one prison guard and over twenty-five inmates. The guard’s family members sued the prison officials, claiming that the officials violated the guard’s due process rights. The officials moved to dismiss, arguing that they were entitled to qualified immunity. The district court denied the motion with respect to some of the officials, who then filed an interlocutory appeal.   The Ninth Circuit affirmed the district court’s denial of Defendants’ motion to dismiss. The panel held that based on the allegations in the complaint, Defendants were not entitled to qualified immunity. Plaintiffs sufficiently alleged a violation of the guard’s substantive due process right to be free from a state-created danger, under which state actors may be liable for their roles in creating or exposing individuals to danger they otherwise would not have faced. The panel held that the unlawfulness of defendants’ alleged actions was clearly established by the combination of two precedents: L.W. v. Grubbs, 974 F.2d 119 (9th Cir. 1992), which recognized a claim under the state-created danger doctrine arising out of a prison’s disregard for the safety of a female employee who was raped after being required to work alone with an inmate known to be likely to commit a violent crime if placed alone with a woman; and Pauluk v. Savage, 836 F.3d 1117 (9th Cir. 2016). View "PATRICIA POLANCO, ET AL V. RALPH DIAZ, ET AL" on Justia Law