Justia U.S. 9th Circuit Court of Appeals Opinion Summaries
Articles Posted in Civil Procedure
In re Becker
The Ninth Circuit denied a petition for a writ of mandamus challenging the district court's order transferring an action under the Employee Retirement Income Security Act (ERISA) from the Northern District of California to Minnesota federal court pursuant to a forum selection clause in a retirement plan. The panel held that mandamus relief was not warranted because the district court did not clearly err in transferring the case. The panel explained that courts are in near universal agreement: ERISA does not bar forum selection clauses. Therefore, the panel found no reason to disagree with their well-reasoned conclusion. In this case, the plan contained a forum selection clause and the district court properly enforced that clause. View "In re Becker" on Justia Law
Posted in:
Civil Procedure, ERISA
Friends of the Earth v. Organic Consumer Ass’n
The Ninth Circuit affirmed the district court's dismissal for lack of organizational standing of an action brought by two public interest groups against Sanderson Farms, alleging false advertising related to the use of antibiotics. The panel concluded that the groups failed to establish standing through a diversion of resources to combat Sanderson's advertising. In this case, the district court did not err by weighing the evidence and concluding that the various activities proffered by the groups were continuations of non-Sanderson-specific initiatives undertaken in furtherance of their missions to address antibiotic use generally. The panel also concluded that the California Unfair Competition Law claim fails because it is tethered to Sanderson's advertisements. View "Friends of the Earth v. Organic Consumer Ass'n" on Justia Law
Posted in:
Civil Procedure, Constitutional Law
Maine Community Health Options v. Albertsons Companies, Inc.
The Ninth Circuit agreed with the Second Circuit that the amount in controversy in a Section 7 of the Federal Arbitration Act enforcement action can be measured by either the benefit to the plaintiff or the detriment to the defendant that would result from enforcement of the subpoena. In this case, because there is a good faith allegation that the benefit to plaintiff of obtaining the subpoenaed information in this controversy exceeds $75,000, the panel reversed the district court's order dismissing for want of subject matter jurisdiction and remanded for further proceedings regarding enforcement of the subpoena. View "Maine Community Health Options v. Albertsons Companies, Inc." on Justia Law
Posted in:
Arbitration & Mediation, Civil Procedure
Academy of Country Music v. Continental Casualty Co.
In 2020, the Academy filed suit in state court alleging that Continental breached an insurance policy by denying coverage for a claim asserted against it by a former executive. After removal to the district court, the district court issued a sua sponte order remanding the case to state court.The Ninth Circuit concluded that the district court's transmittal of its sua sponte order remanding this civil action to a state court based solely on the notice of removal does not deprive federal courts of jurisdiction. The panel also concluded that despite the district court's characterization of its order, 28 U.S.C. 1447(d) does not bar the panel's review because jurisdiction could not be determined when the district court issued its sua sponte order. The panel explained that section 1447(d) bars review only of a remand order that is based on a colorable section 1447(c) ground. In this case, the district court's requirement that a notice of removal prove subject matter jurisdiction is contrary to Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 89 (2014), and accordingly, is not a "colorable" ground under section 1447(c). Accordingly, the panel vacated the district court's remand order. View "Academy of Country Music v. Continental Casualty Co." on Justia Law
Posted in:
Civil Procedure, Insurance Law
United States v. State Water Resources Control Board
The Ninth Circuit reversed the district court's order granting a partial stay under Colorado River Water Conservation District v. United States, 424 U.S. 800 (1976), of three state law claims, in an action brought by the United States alleging that the California State Water Resources Board violated various provisions of the California Environmental Quality Control Act.The panel held that the district court abused its discretion in granting a partial Colorado River stay. The panel explained that partial stays pursuant to Colorado River are permissible only in very limited circumstances, namely when there is strong evidence of forum shopping. In this case, there is little evidence of forum shopping. The panel also concluded that it could not affirm the district court on the basis of Pullman abstention where the Board, which did not cross-appeal, cannot ask the court to affirm on Pullman grounds. The panel reasoned that it would necessarily have to stay the intergovernmental immunity claim, which the district court allowed to proceed. On remand, the panel instructed the district court to allow the United States' claims to proceed, subject to regular issues of justiciability. View "United States v. State Water Resources Control Board" on Justia Law
Greenberg v. Target Corp.
To fight his hair loss, Greenberg bought an $8 bottle of biotin. The product label states that biotin “helps support healthy hair and skin” and has an asterisk that points to a disclaimer: “This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.” A Supplement Facts panel on the bottle states that the biotin amount in the product far exceeds the recommended daily dosage. Greenberg filed a putative class action under California’s Unfair Competition Law, alleging that the labels are deceptive because most people do not benefit from biotin supplementation.The panel affirmed summary judgment in favor of the manufacturer and distributors. The plaintiff’s state law claims were preempted by the federal Food, Drug, and Cosmetic Act (FDCA), under which the FDA requires that dietary supplement labels be truthful and not misleading; 21 U.S.C. 343(r)(6)(B) authorizes several categories of statements, including disease claims and structure/function claims. The FDCA includes a preemption provision to establish a national, uniform standard for labeling. The challenged statement was a permissible structure/function claim. There was substantiation that biotin “helps support healthy hair and skin”; that statement was truthful and not misleading. The label had the appropriate disclosures and did not claim to treat diseases. The state law claims amounted to imposition of different standards from the FDCA. View "Greenberg v. Target Corp." on Justia Law
Consumer Financial Protection Bureau v. Seila Law LLC
On remand from the Supreme Court, the Ninth Circuit reaffirmed the district court's order granting CFPB's petition to enforce the law firm's compliance with the Bureau's civil investigative demand (CID) requiring the firm to produce documents and answer interrogatories. The Supreme Court held that the statute establishing the CFPB violated the Constitution's separation of powers by placing leadership of the agency in the hands of a single Director who could be removed only for cause. The Court concluded, however, that the for-cause removal provision could be severed from the rest of the statute and thus did not require invalidation of the agency itself.The panel concluded that the CID was validly ratified, but the panel need not decide whether that occurred through the actions of Acting Director Mulvaney. After the Supreme Court's ruling, the CFPB's current Director expressly ratified the agency's earlier decisions to issue the civil investigative demand to the law firm, to deny the firm's request to modify or set aside the CID, and to file a petition requesting that the district court enforce the CID. The new Director knew that the President could remove her with or without cause, and nonetheless ratified the agency's issuance of the CID. Therefore, this ratification remedies any constitutional injury that the law firm may have suffered due to the manner in which the CFPB was originally structured. The panel explained that the law firm's only cognizable injury arose from the fact that the agency issued the CID and pursued its enforcement while headed by a Director who was improperly insulated from the President's removal authority. The panel concluded that any concerns that the law firm might have had about being subjected to investigation without adequate presidential oversight and control have now been resolved. The panel rejected the law firm's remaining contentions. View "Consumer Financial Protection Bureau v. Seila Law LLC" on Justia Law
McGee v. S-L Snacks National
The Ninth Circuit affirmed the district court's dismissal for lack of constitutional Article III standing of a putative class action brought by a plaintiff, a consumer of Pop Secret popcorn. Plaintiff contends that Diamond engaged in unfair practices, created a nuisance, and breached the warranty of merchantability by including partially hydrogenated oils (PHOs) as an ingredient in Pop Secret. Plaintiff also alleges that PHOs, the primary dietary source of industrially produced trans fatty acids (also known as artificial trans fat), are an unsafe food additive that causes heart disease, diabetes, cancer, and other ailments. The panel held that plaintiff has not plausibly alleged that, as a result of her purchase and consumption of Pop Secret, she suffered economic or immediate physical injury, or that she was placed at substantial risk of adverse health consequences. Therefore, the district court properly dismissed the action based on lack of standing. View "McGee v. S-L Snacks National" on Justia Law
Posted in:
Civil Procedure, Consumer Law
KST Data, Inc. v. DXC Technology Co.
A defendant is not required to file a new answer reasserting its affirmative defenses when the claim in the amended complaint related to those affirmative defenses remains the same. After ES entered into a contract with KST to provide services to NASA, KST filed suit against ES after ES's nonpayment of invoices. The district court granted summary judgment sua sponte to KST on its breach of contract claim.Applying de novo review, the Ninth Circuit held that, by not giving ES notice and the opportunity to assert its affirmative defenses, the district court erred in granting summary judgment sua sponte. The panel also held that ES was not required to respond and reassert its affirmative defenses to KST's Second Amended Complaint because ES had already asserted those affirmative defenses in response to the same breach of contract claim in the First Amended Complaint. Therefore, the panel reversed the district court's grant of summary judgment and entry of judgment for KST and remanded with instructions for the district court to allow ES to show why KST is not entitled to judgment as a matter of law on KST's breach of contract claim. View "KST Data, Inc. v. DXC Technology Co." on Justia Law
Posted in:
Civil Procedure, Contracts
Bristol-Myers Squibb Co. v. Connors
After the State of Hawaii filed suit against several pharmaceutical companies in state court for allegedly deceptive drug marketing related to the medication Plavix, the companies turned to federal court, seeking an injunction against the state court litigation based on a violation of their First Amendment rights.The Ninth Circuit agreed with the district court that the state court litigation is a quasi-criminal enforcement proceeding and that Younger v. Harris, 401 U.S. 37 (1971), bars a federal court from interfering with such a proceeding. The panel explained that, even though the state proceeding is being litigated by private counsel, it is still an action brought by the State of Hawaii. The panel stated that what matters for Younger abstention is whether the state proceeding falls within the general class of quasi-criminal enforcement actions—not whether the proceeding satisfies specific factual criteria. Looking to the general class of cases of which this state proceeding is a member, the panel concluded that Younger abstention is appropriate here. In this case, the State's action has been brought under a statute that punishes those who engage in deceptive acts in commerce, and the State seeks civil penalties and punitive damages to sanction the companies for their allegedly deceptive labeling practices. Because the companies' First Amendment concerns do not bring this case within the scope of Younger's extraordinary circumstances exception, they have no bearing on the application of Younger. Accordingly, the panel affirmed the district court's dismissal of the action. View "Bristol-Myers Squibb Co. v. Connors" on Justia Law