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

The Ninth Circuit reversed the district court's dismissal of plaintiff's claims based on lack of Article III standing. Plaintiffs filed suit against online retailer Zappos.com, alleging that they were harmed by hacking of their accounts. The panel held that plaintiffs sufficiently alleged standing based on the risk of identity theft under Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir. 2010). Plaintiffs also alleged an injury in fact under Krottner, based on a substantial risk that the Zappos hackers will commit identity fraud or identity theft. The panel explained that it assessed standing at the time the complaints were filed, not as of the present. Finally, the panel held that plaintiffs sufficiently alleged that the risk of future harm was fairly traceable to the conduct being challenged and that their identity theft injury was redressable. The panel addressed an issue raised by sealed briefing in a concurrently filed memorandum disposition. View "Stevens v. Zappos.com, Inc." on Justia Law

The Ninth Circuit reversed the district court's dismissal of plaintiff's claims based on lack of Article III standing. Plaintiffs filed suit against online retailer Zappos.com, alleging that they were harmed by hacking of their accounts. The panel held that plaintiffs sufficiently alleged standing based on the risk of identity theft under Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir. 2010). Plaintiffs also alleged an injury in fact under Krottner, based on a substantial risk that the Zappos hackers will commit identity fraud or identity theft. The panel explained that it assessed standing at the time the complaints were filed, not as of the present. Finally, the panel held that plaintiffs sufficiently alleged that the risk of future harm was fairly traceable to the conduct being challenged and that their identity theft injury was redressable. The panel addressed an issue raised by sealed briefing in a concurrently filed memorandum disposition. View "Stevens v. Zappos.com, Inc." on Justia Law

Receiving an overly revealing credit card receipt -- unseen by others and unused by identity thieves-- was not a sufficient injury to confer Article III standing. The Ninth Circuit affirmed the district court's dismissal of a putative class action alleging a violation of the Fair Credit Reporting Act. In this case, plaintiff filed suit alleging that ABM violated the Act's requirement that businesses redact certain credit card information on printed receipts. 15 U.S.C. 1681c(g). The panel joined the Second and Seventh Circuits in affirming dismissal under identical circumstances and held that plaintiff failed to allege a concrete injury sufficient to give him standing. View "Bassett v. ABM Parking Services, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment for defendants in a class action under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227. In this case, plaintiff received a text message from AC Referral, a non-party, that violated the TCPA. Plaintiff claimed that three lenders and two marketing companies ratified the unlawful text messages. The panel held that, although one of the marketing companies, Click Media, had an agency relationship with AC Referral, it was not bound by AC Referral's acts because it lacked knowledge that AC Referral was violating the TCPA and did not have knowledge of facts that would have led a reasonable person to investigate further. Therefore, Click Media could not be deemed to have ratified AC Referral's actions and was not vicariously liable. View "Kristensen v. Credit Payment Services" on Justia Law

The Ninth Circuit reversed the dismissal of an action against a debt collector under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq. The panel remanded for further proceedings, holding that federal law preempts a private party's use of state execution procedures to acquire and destroy a debtor's FDCPA claims against it. The panel explained that such a procedure frustrates the Act's purpose. View "Arellano v. Clark County Collection Service" on Justia Law

California consumers who can seek in California state court an order requiring the manufacturer of an allegedly falsely advertised product to cease the false advertising may also seek such an order in federal court. A consumer's inability to rely in the future upon a representation made on a package, even if the consumer knew or continued to believe the same representation was false in the past, is an ongoing injury that may justify an order barring the false advertising.The Ninth Circuit reversed the dismissal of an action alleging that Kimberly-Clark falsely advertised that four cleansing wipes they manufactured and sold were flushable. The action was filed in state court and then removed to federal court. The panel held that plaintiff plausibly alleged that Kimberly-Clark engaged in false advertising and that she will suffer further harm in the absence of an injunction. Accordingly, the panel remanded for further proceedings. View "Davidson v. Kimberly-Clark Corp." on Justia Law

A liability insurance policy that unequivocally and broadly excludes coverage for invasion of privacy claims also excludes coverage for Telephone Consumer Protection Act (TCPA) claims. After Federal denied insurance coverage and declined to defend the Lakers in an underlying suit for invasion of privacy, the Lakers filed suit against Federal for breach of contract and tortious breach of the implied covenant of good faith and fair dealing. The Ninth Circuit affirmed the district court's dismissal of the suit under Federal Rule of Civil Procedure 12(b)(6). The panel held that a TCPA claim was inherently an invasion of privacy claim and thus Federal correctly concluded that the underlying TCPA claim fell under the insurance policy's broad exclusionary clause. In this case, Federal did not breach the policy, or the implied covenant of good faith and fair dealing, under any cognizable legal theory, when it declined to defend against or cover the underlying complaint. View "LA Lakers v. Federal Insurance Co." on Justia Law

Anaya Law Group, a debt collector, filed suit in state court to collect an unpaid credit card debt, but the complaint overstated both debtor's principal due and the applicable interest rate. Debtor then filed suit against Anaya in federal court for violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq., and of California's Rosenthal Fair Debt Collection Practices Act. The district court granted summary judgment to Anaya. The Ninth Circuit held, however, that the false statements made by Anaya were material because they could have disadvantaged a hypothetical debtor in deciding how to respond to the complaint. Accordingly, the panel vacated summary judgment as to the FDCPA claim and remanded. In regard to the Rosenthal Act claim, the panel affirmed summary judgment on an alternative ground. The panel held that Anaya corrected the misstatements within fifteen days of discovering the violation and thus satisfied the requirements necessary to avail itself of a defense under the Rosenthal Act. View "Afewerki v. Anaya Law Group" on Justia Law

To establish a concrete injury for purposes of Article III standing, the plaintiff must allege a statutory violation that caused him to suffer some harm that actually exists in the world. There must be an injury that is "real" and not "abstract" or merely "procedural." On remand from the Supreme Court, the Ninth Circuit reversed the district court's dismissal of an action alleging willful violations of the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681 et seq. In this case, plaintiff alleged that Spokeo failed to follow reasonable procedures to assure maximum possible accuracy of the information in his consumer report. The panel was satisfied that plaintiff had alleged injuries that were sufficiently concrete for the purposes of Article III; the alleged injuries were also sufficiently particularized to plaintiff and they were caused by Spokeo's alleged FCRA violations and were redressable in court; and therefore plaintiff had adequately alleged the elements necessary for standing. Accordingly, the court remanded. View "Robins v. Spokeo, Inc." on Justia Law

Plaintiffs filed suit against Royal under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227, seeking to hold Royal vicariously liable for several telephone calls made by telemarketers employed by AAAP. The Ninth Circuit applied the ten non-exhaustive factors set forth in the Restatement (Second) of Agency 220(2) (1958), and found that AAAP's telemarketers were acting as independent contractors rather than as Royal's agents. Therefore, the court held that Royal was not vicariously liable for the telephone calls and the district court properly granted summary judgment in favor of Royal. View "Jones v. Royal Administration Services" on Justia Law