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

Michael Terpin, a cryptocurrency investor, sued AT&T Mobility, LLC after hackers gained control over his phone number through a fraudulent "SIM swap," received password reset messages for his online accounts, and stole $24,000,000 of his cryptocurrency. Terpin alleged that AT&T failed to adequately secure his account, leading to the theft.The United States District Court for the Central District of California dismissed some of Terpin's claims for failure to state a claim and later granted summary judgment against him on his remaining claims. The court dismissed Terpin's fraud claims and punitive damages claim, holding that he failed to allege that AT&T had a duty to disclose or made a promise with no intent to perform. The court also held that Terpin failed to allege facts sufficient to support punitive damages. On summary judgment, the court ruled that Terpin's negligence claims were barred by the economic loss rule, his breach of contract claim was barred by the limitation of liability clause in the parties' agreement, and his claim under Section 222 of the Federal Communications Act (FCA) failed because the SIM swap did not disclose any information protected under the Act.The United States Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of Terpin's fraud claims and punitive damages claim, agreeing that Terpin failed to allege a duty to disclose or an intent not to perform. The court also affirmed the summary judgment on Terpin's breach of contract claim, holding that consequential damages were barred by the limitation of liability clause. The court affirmed the summary judgment on Terpin's negligence claims, finding them foreclosed by the economic loss rule. However, the Ninth Circuit reversed the summary judgment on Terpin's claim under Section 222 of the FCA, holding that Terpin created a triable issue over whether the fraudulent SIM swap gave hackers access to information protected under the Act. The case was remanded for further proceedings on this claim. View "TERPIN V. AT&T MOBILITY LLC" on Justia Law

The case involves a challenge by local governments and municipal organizations to the Federal Communications Commission’s (FCC) 2020 Ruling, which interprets and clarifies existing legislative rules from the 2014 Order. These rules implement section 6409(a) of the Middle Class Tax Relief and Job Creation Act of 2012, requiring state and local governments to approve certain wireless network modifications that do not substantially change existing facilities.The petitioners challenged several provisions of the FCC’s 2020 Ruling: the Shot Clock Rule, the Separation Clause, the Equipment Cabinet Provision Clarification, the Concealment and Siting Approval Conditions Provisions, and the Express Evidence Requirement. They argued that these clarifications were either arbitrary and capricious or improperly issued without following the Administrative Procedure Act’s (APA) notice-and-comment procedures.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court found that the 2020 Ruling’s clarifications of the Shot Clock Rule, the Separation Clause, and the Equipment Cabinet Provision were consistent with the 2014 Order, were interpretive rules, and were not arbitrary or capricious. Therefore, the court denied the petition for review regarding these provisions.However, the court found that the 2020 Ruling’s clarifications of the Concealment and Siting Approval Conditions Provisions were inconsistent with the 2014 Order, making them legislative rules. The FCC’s failure to follow the APA’s procedural requirements in issuing these legislative rules was not harmless. Consequently, the court granted the petition for review concerning these provisions.Finally, the court denied the petition for review regarding the Express Evidence Requirement, concluding that its application would not have a retroactive effect. The court’s decision was to grant the petition in part and deny it in part, affirming some of the FCC’s clarifications while invalidating others. View "League of California Cities v. Federal Communications Commission" on Justia Law

The case involves X Corp., the owner of a large social media platform, challenging California Assembly Bill AB 587. This law requires large social media companies to post their terms of service and submit semiannual reports to the California Attorney General detailing their content-moderation policies and practices, including how they define and address categories like hate speech, extremism, and misinformation. X Corp. sought a preliminary injunction to prevent the enforcement of AB 587, arguing that it violates free speech and is federally preempted.The United States District Court for the Eastern District of California denied X Corp.'s motion for a preliminary injunction. The court found that X Corp. was unlikely to succeed on the merits of its First Amendment claim, applying the Zauderer standard for compelled commercial speech. The court concluded that the law's requirements were purely factual and uncontroversial, and reasonably related to the state's interest in transparency. The court also rejected X Corp.'s preemption argument, stating that AB 587 does not impose liability for content moderation activities but only for failing to make required disclosures.The United States Court of Appeals for the Ninth Circuit reversed the district court's decision. The Ninth Circuit held that the Content Category Report provisions of AB 587 likely compel non-commercial speech and are subject to strict scrutiny because they are content-based. The court found that these provisions are not narrowly tailored to serve the state's interest in transparency and therefore likely fail strict scrutiny. The court also determined that the remaining factors for a preliminary injunction weighed in favor of X Corp. The Ninth Circuit remanded the case to the district court to enter a preliminary injunction consistent with its opinion and to determine whether the Content Category Report provisions are severable from the rest of AB 587. View "X CORP. V. BONTA" on Justia Law

The case involves the plaintiffs, including the estate of Carson Bride and three minors, who suffered severe harassment and bullying through the YOLO app, leading to emotional distress and, in Carson Bride's case, suicide. YOLO Technologies developed an anonymous messaging app that promised to unmask and ban users who engaged in bullying or harassment but allegedly failed to do so. The plaintiffs filed a class action lawsuit against YOLO, claiming violations of state tort and product liability laws.The United States District Court for the Central District of California dismissed the plaintiffs' complaint, holding that Section 230 of the Communications Decency Act (CDA) immunized YOLO from liability. The court found that the claims sought to hold YOLO responsible for third-party content posted on its app, which is protected under the CDA.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court reversed the district court's dismissal of the plaintiffs' misrepresentation claims, holding that these claims were based on YOLO's promise to unmask and ban abusive users, not on a failure to moderate content. The court found that the misrepresentation claims were analogous to a breach of promise, which is not protected by Section 230. However, the court affirmed the dismissal of the plaintiffs' product liability claims, holding that Section 230 precludes liability because these claims attempted to hold YOLO responsible as a publisher of third-party content. The court concluded that the product liability claims were essentially about the failure to moderate content, which is protected under the CDA. View "Estate of Bride v. Yolo Technologies, Inc." on Justia Law

A national trade association of online businesses challenged the California Age-Appropriate Design Code Act (CAADCA), which aims to protect children's online privacy and ensure that online products accessed by children are designed with their needs in mind. The association argued that the CAADCA's requirements, particularly those mandating businesses to assess and mitigate risks of exposing children to harmful content, violated the First Amendment.The United States District Court for the Northern District of California granted a preliminary injunction, finding that the association was likely to succeed in its First Amendment challenge. The court held that the CAADCA's requirements compelled businesses to express opinions on controversial issues and act as censors, which constituted a violation of free speech. The court enjoined the entire law, concluding that the unconstitutional provisions were not severable from the rest of the statute.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed in part and vacated in part the district court's preliminary injunction. The Ninth Circuit agreed that the CAADCA's requirement for businesses to create Data Protection Impact Assessment (DPIA) reports, which included assessing and mitigating risks of exposing children to harmful content, likely violated the First Amendment. The court affirmed the injunction against these provisions and those not grammatically severable from them.However, the Ninth Circuit vacated the remainder of the preliminary injunction, finding that it was unclear whether other challenged provisions of the CAADCA facially violated the First Amendment. The court noted that further proceedings were necessary to determine the full scope and impact of these provisions. The case was remanded to the district court for further consideration. View "NETCHOICE, LLC V. BONTA" on Justia Law

The case involves Clayton Zellmer, who sued Meta Platforms, Inc. (formerly Facebook) for alleged violations of the Illinois Biometric Information Privacy Act (BIPA). Zellmer, who never used Facebook, claimed that the company violated BIPA when it created a "face signature" from photos of him uploaded by his friends and failed to publish a written policy outlining its retention schedule for collected biometric data.The district court granted summary judgment in favor of Meta on Zellmer's claim under Section 15(b) of BIPA. The court reasoned that it would be practically impossible for Meta to comply with BIPA if it had to obtain consent from everyone whose photo was uploaded to Facebook before it could use its Tag Suggestions feature. The court also dismissed Zellmer's claim under Section 15(a) of BIPA for lack of standing, holding that Zellmer did not suffer a particularized injury.The United States Court of Appeals for the Ninth Circuit affirmed the district court's decisions but on different grounds. The appellate court rejected the district court's reasoning for granting summary judgment, stating that BIPA's plain text applies to everyone whose biometric identifiers or information is held by Facebook. However, the court concluded that there was no material dispute of fact as to whether Meta violated BIPA's plain terms. The court found that face signatures, which are created from uploaded photos, cannot identify and therefore are not biometric identifiers or information as defined by BIPA. The court also affirmed the dismissal of Zellmer's claim under Section 15(a) of BIPA for lack of standing, agreeing with the district court that Zellmer did not suffer a particularized injury. View "ZELLMER V. META PLATFORMS, INC." on Justia Law

The case involves plaintiffs Christopher Calise and Anastasia Groschen, who alleged that they were harmed by fraudulent third-party advertisements posted on Meta Platforms, Inc.'s (commonly known as Facebook) website, in violation of Meta's terms of service. Meta claimed immunity from liability under § 230(c)(1) of the Communications Decency Act (CDA), which applies to a provider or user of an interactive computer service that a plaintiff seeks to treat, under a state law cause of action, as a publisher or speaker of information provided by another information content provider.The district court dismissed the plaintiffs' non-contract claims, ruling that they were barred by § 230(c)(1) of the CDA. The court also dismissed the plaintiffs' contract-related claims, holding that Meta's duty arising from its promise to moderate third-party advertisements was related to Meta's status as a "publisher or speaker" of third-party advertisements, and therefore § 230(c)(1) barred the plaintiffs' contract claims.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of the plaintiffs' non-contract claims, agreeing that these claims derived from Meta's status as a "publisher or speaker" of third-party advertisements. However, the appellate court vacated the dismissal of the plaintiffs' contract-related claims, holding that Meta's duty arising from its promise to moderate third-party advertisements was unrelated to Meta's status as a "publisher or speaker" of third-party advertisements, and therefore § 230(c)(1) did not bar the plaintiffs' contract claims. The case was remanded for further proceedings. View "Calise v. Meta Platforms, Inc." on Justia Law

A group of telecommunications carriers, including Assurance Wireless USA, L.P., MetroPCS California, LLC, Sprint Spectrum LLC, T-Mobile USA, Inc., and T-Mobile West LLC, sued the California Public Utilities Commission (CPUC) over a rule change. The CPUC had altered the mechanism for charging telecommunications providers to fund California’s universal service program. Previously, the program was funded based on revenue, but due to declining revenues, the CPUC issued a rule imposing surcharges on telecommunications carriers based on the number of active accounts, or access lines, rather than revenue.The carriers sought a preliminary injunction against the access line rule, arguing that it was preempted by the Telecommunications Act, which requires providers of interstate telecommunications services to contribute to the Federal Communications Commission's (FCC) universal service mechanisms on an equitable and nondiscriminatory basis. The carriers argued that the access line rule was inconsistent with the FCC's rule and was inequitable and discriminatory.The United States District Court for the Northern District of California denied the preliminary injunction. The court found that the carriers were unlikely to succeed on the merits of their express preemption claims. It held that the access line rule was not inconsistent with the FCC's rule and was not inequitable or discriminatory.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court's decision. The appellate court agreed that the carriers were unlikely to succeed on the merits of their claims. It held that the access line rule was not inconsistent with the FCC's rule and was not inequitable or discriminatory. The court concluded that the carriers had failed to show that the access line rule burdened the FCC's universal service programs or that it unfairly advantaged or disadvantaged any provider. View "ASSURANCE WIRELESS USA, L.P. V. ALICE REYNOLDS" on Justia Law

In this case, the plaintiff, a victim of sex trafficking, brought a putative class action against various entities, including foreign-based defendants who operated websites on which videos of her abuse were uploaded and viewed. The district court dismissed the claims against the foreign-based defendants for lack of personal jurisdiction. On appeal, the United States Court of Appeals for the Ninth Circuit reversed and vacated in part, holding that the district court erred in its conclusion.The Ninth Circuit found that the plaintiff had established a prima facie case for the exercise of specific personal jurisdiction over two foreign defendants, WebGroup Czech Republic, a.s. ("WGCZ") and NKL Associates, s.r.o. ("NKL"), which operated the websites. The court concluded that the plaintiff had shown that these defendants had purposefully directed their activities toward the United States, that her claims arose from these forum-related activities, and that the exercise of jurisdiction would be reasonable.The court based its decision on several factors. WGCZ and NKL had contracted with U.S.-based content delivery network services to ensure faster website loading times and a more seamless viewing experience for U.S. users, demonstrating that they had actively targeted the U.S. market. They also profited significantly from U.S. web traffic. Furthermore, the harm the plaintiff suffered—namely, the publication of videos of her abuse on the defendants' websites—had occurred in the U.S., and a substantial volume of the widespread publication of the videos occurred in the U.S.As for the remaining foreign defendants, the court vacated the district court's dismissal of them because it was based solely on the incorrect assumption that there was no personal jurisdiction over WGCZ and NKL. The court remanded the case for further proceedings to determine whether personal jurisdiction could be asserted against these additional defendants. View "DOE V. WEBGROUP CZECH REPUBLIC, A.S." on Justia Law

The United States Court of Appeals for the Ninth Circuit affirmed the lower court's order to compel arbitration and dismiss without prejudice a series of lawsuits against several sports goods e-commerce companies (the defendants). The lawsuits were brought by several plaintiffs, who were consumers that purchased goods online from the defendants and had their personal information stolen during a data breach on the defendants' websites. The defendants moved to compel arbitration based on the arbitration provision in their terms of use. The appellate court held that the plaintiffs had sufficient notice of the arbitration provision and that the arbitration clause was not invalid under California law, was not unconscionable, and did not prohibit public injunctive relief. Furthermore, the parties agreed to delegate the question of arbitrability to an arbitrator according to the commercial rules and procedures of JAMS, a private alternative dispute resolution provider. View "PATRICK V. RUNNING WAREHOUSE, LLC" on Justia Law