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

This case stemmed from an asset purchase transaction where defendants and plaintiff entered into an allocation agreement that included an arbitration clause. Defendants appealed from the district court's order enjoining arbitration and denying their motion to stay judicial proceedings under section 3 of the Federal Arbitration Act ("FAA"), 9 U.S.C. 3. Defendants contended that the arbitration clause reserved the question of arbitrability for the arbitrators, and that the district court erred in determining that the dispute was not subject to arbitration. The court held that the arbitration clause in the agreement clearly and unmistakably expressed the parties' intent that the arbitrators determine questions of arbitrability, and that the district court therefore erred in permanently enjoining the arbitration and failing to stay judicial proceedings under section 3 of the FAA. Accordingly, the court reversed and remanded with instructions to grant the motion to stay proceedings under section 3 and dissolve the permanent injunction.

Plaintiffs sued defendants alleging copyright infringement, breach of implied contract, breach of confidence, and several other causes of actions where defendants produced a television series on the Sci-Fi Channel based on plaintiffs' materials. At issue was whether the district court properly dismissed plaintiff's contractual claims on the basis that the claims were preempted by copyright law. The court reversed and held that copyright law did not preempt a breach of implied contract claim where plaintiffs alleged a bilateral expectation that they would be compensated for use of the idea, the essential element of a Desny v. Wilder claim that separated it from preempted claims for the use of copyrighted material. The court also held that the breach of confidence claim was not preempted by copyright law where the claim protected the duty of trust or confidential relationship between the parties, an extra element that made it qualitatively different from a copyright claim. The court also held that the complaint sufficiently alleged facts to make out a claim for breach of implied contract and breach of confidence.

Plaintiffs sued Atlas Van Lines, Inc. ("Atlas") and Pickens Kane Moving & Storage Co. ("Pickens") for carrier liability under the Carmack Amendment to recover damages plaintiff paid to its insureds after the insureds' shipment of household goods were destroyed by a fire while in transit. Pickens was the receiving carrier and the goods were destroyed in the custody of Atlas. At issue was whether the district court properly interpreted sections 14706(f) and 14706(b) of the Carmack Amendment when apportioning the replacement value of household goods and apportioning costs. The court held that the district court properly apportioned the damages as it did under section 14706(f)(2), (3) to limit Atlas' liability to the tariff amount of $5.00 per pound in the absence of a declared value. The court also held that the district court did not abuse its discretion in apportioning costs where Atlas had custody of the shipment when it was destroyed and was liable to Pickens.