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

CashCall made unsecured, high-interest loans to consumers throughout the country, and sought to avoid state usury and licensing laws by using an entity operating on an Indian reservation. The entity issued loan agreements that contained a choice-of-law provision calling for the application of tribal law. The Consumer Financial Protection Bureau brought an action alleging that the scheme was an “unfair, deceptive, or abusive act or abusive practice.” 12 U.S.C. Section 5536(a)(1)(B). The district court held that CashCall violated the Consumer Financial Protection Act (“CFPA”).   The court first considered whether the Bureau lacked authority to bring this action because it was unconstitutionally structured. The court found despite the unconstitutional limitation on the President’s authority to remove the Bureau’s Director, the Director’s actions were valid when they were taken. Both the complaint and the notice of appeal were filed while the Bureau was headed by a lawfully appointed Director. The court declined to consider CashCall’s new theory that the Bureau’s structure violated the Appropriations Clause of the Constitution.   Next, the court held that the Tribe had no substantial relationship to the transactions, and because there was no other reasonable basis for the parties’ choice of tribal law, the district court correctly declined to give effect to the choice-of-law provision in the loan agreements. The court concluded that from September 2013, the danger that CashCall’s conduct violated the CFPA was so obvious that CashCall must have been aware of it. The court vacated the civil penalty and remanded with instructions that the district court reassess it. View "CFPB V. CASHCALL, INC." on Justia Law

Defendant was convicted of distributing and receiving child pornography in violation of 18 U.S.C. Section 2252A. He challenged the sentences imposed. The Ninth Circuit held that the district court did not err in applying the enhancement and did not err in assessing a fine of $5,000 for each of Defendants two counts of conviction.   The court reasoned that to be eligible for a five-level enhancement under U.S.S.G. Section 2G2.2(b)(3)(B), which applies to offenders who distribute child pornography “in exchange for any valuable consideration,” Defendant need not actually receive the valuable consideration.   Further, the court held that the Justice for Victims of Trafficking Act, 18 U.S.C. Section 3014(a), mandates a $5,000 assessment for each of a defendant’s counts of conviction—not a single assessment per defendant in the case. The court explained that Section 3014(a) works in conjunction with 18 U.S.C. Section 3013, to which Section 3014 is closely related in terms of text, purpose, and statutory structure; and observed that every circuit court has interpreted Section 3013’s assessment on a person “convicted of an offense” to apply separately to each count of conviction rather than to each offender. The panel wrote that the ordinary meaning of Section 3014’s “convicted of an offense” also supports a separate assessment per conviction. View "USA V. DUSTIN RANDALL" on Justia Law

The Sycuan Band of the Kumeyaay Nation (“Sycuan” or “Tribe”), a federally recognized Indian tribe, sought the reversal of the district court’s order granting labor union, Unite Here Local 30’s (“Unite Here”), motion for judgment on the pleadings with respect to its own complaint and motion to dismiss Sycuan’s counterclaim. Unite Here alleged that Sycuan violated the labor provisions of a contract between the two parties respecting the operation of a casino. The union brought suit to compel arbitration of that dispute pursuant to a clause contained in the contract. Sycuan opposed arbitration.   The Ninth Circuit affirmed the district court’s judgment on the pleadings in favor of Unite Here and the district court’s dismissal of a counterclaim brought by Sycuan. The court held the district court had original jurisdiction over Unite Here’s claims. Further, the court held that the district court had supplemental, but not original, jurisdiction over Sycuan’s counterclaim because the Declaratory Judgment Act does not confer jurisdiction, and Section 301 of the Labor Management Relations Act could not confer federal question jurisdiction.   The court concluded that the arbitrator should decide issues of contract validity, and the counterclaim rested on an issue of contract validity. Accordingly, the district court’s declining to exercise supplemental jurisdiction served economy, convenience, and fairness. The court also held that Unite Here and Sycuan formed an agreement to arbitrate because Sycuan promised California that if any union made certain promises to the tribe, Sycuan would automatically enter into a bilateral contract with that union adopting the TLRO’s terms. View "UNITE HERE LOCAL 30 V. SYCUAN BAND" on Justia Law

Congress passed ARPA, American Rescue Plan Act, to help state, local, and tribal governments mitigate the ongoing effects of the COVID-19 pandemic. The statute contains a provision (the “Offset Provision”) – challenged in this appeal – prohibiting a State from using ARPA funds to subsidize a tax cut or otherwise a reduction in state net tax revenue. Specifically, Arizona contended that it was coerced into accepting the Offset Provision because of the size of the funds offered under ARPA and the financial situation brought on by the pandemic. Arizona sought a preliminary injunction enjoining the federal defendants from recouping funds or otherwise enforcing the Offset Provision, and declaratory relief that the Offset Provision violated the Constitution. The district court dismissed for lack of subject matter jurisdiction.The Ninth Circuit reversed the district court’s dismissal for lack of subject matter jurisdiction and held that Arizona had standing to challenge ARPA both because there was a realistic danger of ARPA’s enforcement, and because there was a justiciable challenge to the sovereignty of the State, which alleges infringement on its authority to set tax policy and its interest in being free from coercion impacting its tax policy. The court reasoned that standing is measured at the time of the complaint, and when the complaint was filed, there was not a required compliance scheme. The court declined to consider the merits of Arizona’s constitutional claims. The court remanded for the district court to consider the merits of Arizona’s Spending Clause and Tenth Amendment claims. View "STATE OF ARIZONA V. JANET YELLEN" on Justia Law

Nektar Therapeutics (“Nektar”) touted the results from a Phase 1 clinical trial (dubbed “EXCEL”) of its anti-cancer drug. A different and more comprehensive Phase 1/2 clinical trial (called “PIVOT”) showed that the drug was not as effective as the initial trial had suggested. Two public pensions sued Nektar for securities fraud, alleging that Nektar misleadingly relied on outlier data from a single patient during the Phase 1 EXCEL clinical trial. The district court dismissed their operative complaint.The Ninth Circuit affirmed the district court’s dismissal for two reasons. First, the court held that Plaintiffs did not adequately allege falsity under section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. Section 78j(b), and Securities and Exchange Commission Rule 10b-5. The complaint failed to articulate why Nektar’s statements about the Phase 1 EXCEL clinical trial would be materially misleading to investors. Plaintiffs do not sufficiently explain what the clinical trial would have shown without the alleged outlier data, nor do they specify how that would have affected the investing public’s assessment of the drug.Second, Plaintiffs did not plausibly allege loss causation. Nothing in the operative complaint suggests that Nektar’s disclosure of its later Phase 1/2 PIVOT clinical trial results uncovered the “falsity” of the earlier Phase 1 EXCEL trial. Rather, Plaintiffs’ factual allegations suggest a more mundane explanation: the different and more robust Phase 1/2 PIVOT clinical trial merely showed that the drug may not be as effective as the initial Phase 1 EXCEL clinical trial had suggested. View "OKLAHOMA FIREFIGHTERS PENSION V. NEKTAR THERAPEUTICS" on Justia Law

Petitioner petitioned for review of an order of the Board of Immigration Appeals (“BIA”) upholding the decision of the Immigration Judge (“IJ”) denying her application for cancellation of removal and ordering her removed to Mexico.     The Ninth Circuit denied in part and dismissed in part Petitioner’s petition and held that Petitioner’s conviction for corporal injury upon a child, in violation of California Penal Code Section 273d(a), is a crime of violence aggravated felony that made her ineligible for cancellation of removal. The court reasoned that The Immigration and Nationality Act (“INA”) defines “aggravated felony” to include a “crime of violence for which the term of imprisonment is at least one year.” 8 U.S.C. Section 1101(a)(43)(F). Thus, because Petitioner’s conviction records confirmed a jail term of 365 days, the court explained that whether Petitioner was convicted of an aggravated felony turned solely on whether a violation of Section 273d(a) constitutes a “crime of violence” under 18 U.S.C. Section 16.   The court explained that the relevant language of Section 273d(a) imposes criminal punishment on any “person who willfully inflicts upon a child any cruel or inhuman corporal punishment or an injury resulting in a traumatic condition.” The BIA noted that this phrasing is very similar to California Penal Code Section 273.5(a), which punishes any “person who willfully inflicts corporal injury resulting in a traumatic condition upon” specified persons. The court rejected the remaining challenges to Petitioner’s removal order View "AURORA OLEA-SEREFINA V. MERRICK GARLAND" on Justia Law

AK Futures LLC (“AK Futures”), an e-cigarette and vaping product manufacturer, brought suit for trademark and copyright infringement against Boyd Street Distro, LLC, (“Boyd”). According to AK Futures, Boyd has been selling counterfeit versions of its “Cake”-branded e-cigarette and vaping products containing delta-8 tetrahydrocannabinol (“delta-8 THC”). Boyd contended that AK Futures does not have protectible trademarks for its Cake products because delta-8 THC remains illegal under federal law. The district court held that theAgriculture Improvement Act (the “Farm Act”) legalized the company’s delta-8 THC products, and it granted injunctive relief.   The Ninth Circuit affirmed the district court’s grant of a preliminary injunction. The court reasoned that the district court’s order properly distinguished between trademark and copyright protection. Further, the court held that the plain and unambiguous text of the Farm Act compels the conclusion that AK Futures’ delta8 THC products are lawful. the court concluded that on the available record, the delta-8 THC in AK Futures’ e-cigarette liquid appears to fit comfortably within the statutory definition of “hemp”—i.e., the liquid is properly understood as a derivative, extract, or cannabinoid originating from the cannabis plant and containing “not more than 0.3 percent” delta-9 THC. The court wrote that because the Farm Act’s definition of hemp is not ambiguous, the court does not consider agency interpretation, and even if it did, the Drug Enforcement Agency’s view of the Farm Act’s plain text aligns with the court’s own. View "AK FUTURES LLC V. BOYD STREET DISTRO, LLC" on Justia Law

Appellant CPC Patent Technologies PTY Ltd. (“CPC”) sought documents to use in a potential lawsuit in Germany against an affiliate of appellee Apple, Inc. CPC filed an application in federal court seeking to compel Apple to turn over these documents pursuant to 28 U.S.C. Section 1782, which allows district courts to provide discovery assistance to foreign or international tribunals. After a magistrate judge denied the petition, a district judge reviewed the magistrate judge’s decision for clear error and declined to overturn it.The Ninth Circuit vacated the district court’s order and remanded for further proceedings because the district judge should have reviewed the magistrate judge’s decision de novo.Applying 28 U.S.C. Section 636(b) and its procedural counterpart, Fed. R. Civ. Pro. 72, the court held that CPC’s Section 1782 application was a dispositive matter because the magistrate judge’s order denied the only relief sought by CPC in this federal case: court-ordered discovery. Because both parties did not consent to the magistrate judge's jurisdiction, the magistrate judge lacked jurisdiction to enter an order denying the application, and the district court should have treated the magistrate judge’s ruling at most as a non-binding recommendation subject to de novo review. The court, therefore, remanded for the district court to apply the correct standard of review and left it to the district court to determine whether the case would benefit from further analysis and review by the magistrate judge. View "CPC PATENT TECHS. PTY LTD. V. APPLE, INC." on Justia Law

While tending to the wounds of a separatist fighter at a local hospital, Cameroonian soldiers punched Petitioner, attacked him and threatened to kill him if they ever caught him treating separatists again. Petitioner sought review of the Board of Immigration Appeals (“BIA”) denial of his applications for asylum, withholding of removal, and protection under the Convention Against Torture (“CAT”). The BIA denied asylum and withholding of removal on the grounds that Petitioner had (a) failed to demonstrate past persecution and (b) failed to prove a nexus between the feared harm and a protected ground.The Ninth Circuit held that the harm Petitioner suffered, including the physical injury, the specific death threats connected to the physical harm, and evidence of the country’s political and societal turmoil, compelled the finding of past persecution. The court held that the IJ’s finding that Petitioner failed to establish a nexus based on the fact that he had not testified as to what happened to a hospital coworker who helped Petitioner, was vague because it was not directly responsive to Petitioner’s argument. Further, the court held that it also was not clear whether this reason rested on the flawed findings of fact concerning past persecution or whether this reason faulted Petitioner for not providing corroborative evidence. In light of the ambiguities, the court concluded that it could not conduct a meaningful review of the agency’s nexus determination, and it remanded for a clear explanation. Finally, the court held that substantial evidence supported the denial of CAT relief. View "STEPHEN FON V. MERRICK GARLAND" on Justia Law

In July 2020, during the heart of the COVID pandemic, Defendant was arrested and charged with being a felon in possession of a firearm and ammunition. Defendant's case went to trial no long after his arrest, when the district court's COVID procedures were still in effect. More specifically, the Northern District of California imposed a restriction stating only "persons who have been authorized by a judge or the Clerk of Court may enter courthouse property." However, the district court judge overseeing Defendant's motion to suppress and trial imposed additional restrictions, disallowing any member of the public from entering the courtroom and instead streamed live audio over the internet. Defendant objected, citing a violation of his right to a public trial. The district court rejected Defendant's challenge, and a jury convicted him.On appeal, the Ninth Circuit vacated Defendant's conviction and reversed the district court's denial of his motion to suppress, holding that the district court’s COVID protocols violated Defendant's Sixth Amendment right to a public trial. The court found that the government presented an overriding interest in limiting the transmission of COVID while holding a criminal trial; however, the court's restriction on video access was not narrowly tailored. The Ninth Circuit noted that other courts around the county were able to allow for video access during the pandemic. View "USA V. JAMES ALLEN, II" on Justia Law