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

The Ninth Circuit reversed the district court's decision reversing the bankruptcy court's order allowing creditor's claim in the bankruptcy proceedings of Rejuvi, a chapter 11 debtor. Creditor seeks recognition and enforcement of a default money judgment for personal injuries against Rejuvi granted by an Australian district court. The panel held that Rejuvi waived any objection to personal jurisdiction by voluntarily appearing in the South Australian district court when it sought relief from the default judgment. Accordingly, the panel remanded to the district court for further proceedings. The panel granted creditor's motion to take judicial notice of Rules 230 and 242 of the 2006 Civil Rules of the District Court of South Australia. View "Corso v. Rejuvi Laboratory, Inc." on Justia Law

The Ninth Circuit reversed the district court's Federal Rule of Civil Procedure 12(b)(6) dismissal of plaintiffs' complaint in a tax refund action in which they sought to deduct mortgage interest that their lender received at the short sale of taxpayer's home. The panel held that, on the facts as pleaded, plaintiffs are entitled to deduct the mortgage interest paid in connection with the short sale of their home in 2011. In this case, the district court erred in applying Estate of Franklin v. Commissioner, 544 F.2d 1045 (9th Cir. 1976), to the very different circumstances presented here. The panel also rejected the IRS's alternative argument that I.R.C. 265(a)(1) precludes plaintiffs' home mortgage interest deduction.Under the settled rules for a short sale involving the extinguishment of nonrecourse debt, the panel stated that the Tufts approach applies, and plaintiffs were entitled to take the corresponding mortgage interest deduction for the interest paid and received at the short sale. The panel explained that the fact that, during an earlier bankruptcy, plaintiffs' mortgage had been converted, through their bankruptcy discharge, from recourse to nonrecourse, provides no basis for declining to apply those rules. View "Milkovich v. United States" on Justia Law

The Ninth Circuit affirmed the district court's order, dismissing on ripeness grounds, an action brought by Twitter against the Attorney General of Texas, in his official capacity, alleging First Amendment retaliation. Specifically, Twitter alleged that the service of a Civil Investigative Demand (CID) by the OAG to Twitter after the company banned President Donald Trump for life following the events at the U.S. Capitol on January 6, 2021, was government retaliation for speech protected by the First Amendment. Twitter asked the district court to enjoin the AG from enforcing the CID and from continuing his investigation, and to declare the investigation unconstitutional.The panel held that the case was not prudentially ripe because the issues were not yet fit for judicial decision where the OAG has not yet made an allegation against Twitter; where facts were not yet developed; and where Twitter need not comply with the CID, could challenge its enforcement, and could challenge the CID in state court. The panel stated that, while Twitter could suffer hardship from withholding consideration, adjudicating this case now would require determining whether Twitter has violated Texas's unfair trade practices law before OAG has a chance to complete its investigation. Furthermore, any hardship to Twitter from the alleged chill of its First Amendment rights was insufficient to overcome the uncertainty of the legal issue presented in the case in its current posture. View "Twitter, Inc. v. Paxton" on Justia Law

The Ninth Circuit affirmed the district court's denial of plaintiffs' motion for a remand to state court and the district court's dismissal of plaintiffs' class action suit alleging violations of the Fair Credit Reporting Act (FCRA) by Experian. Plaintiffs alleged that the FCRA required Experian to disclose behavioral data from its "ConsumerView" marketing database, "soft inquiries" from third parties and affiliates, the identity of certain parties who procured consumer reports, and the date on which employment data was reported.The panel concluded that the allegations of injury to plaintiffs' informational and privacy interests as recited in the first amended complaint are sufficiently concrete to support Article III standing at this pleading stage. The panel also concluded that none of the information plaintiffs contend Experian failed to include in its section 1681g of the FCRA disclosures is subject to disclosure under section 1681g(a)(1), (3) or (5), considered individually or in combination. View "Tailford v. Experian Information Solutions, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment in favor of police officers in a 42 U.S.C. 1983 action brought by plaintiffs, alleging that defendants violated plaintiffs' Fourteenth Amendment rights to companionship and familial association when they shot and killed Sergio Ochoa.Reviewing the district court's decision de novo and viewing the record in the light most favorable to plaintiffs, the panel concluded that the district court selected the correct legal test to assess whether the conduct here shocks the conscience, and it correctly concluded that it does not. In this case, the officers did not have time to deliberate before firing and the district court correctly applied the purpose-to-harm test in order to determine if the officers' conduct shocked the conscience. The panel explained that Ochoa had engaged in a domestic dispute that allegedly involved a gun while possibly under the influence of drugs, he had entered a stranger's home stating that he was armed with knives, he failed to yield to a police car, and drove erratically. Furthermore, Ochoa ignored repeated commands from the officers, refused to drop two kitchen knives, and then took a large step. Therefore, under the purpose-to-harm test, defendants did not violate plaintiffs' Fourteenth Amendment rights. Rather, the officers' actions reflected their attempts to satisfy legitimate law enforcement objectives: apprehension of an armed, dangerous suspect and protection of the safety of the officers, the home’s inhabitants, and the public. View "Ochoa v. City of Mesa" on Justia Law

The Ninth Circuit reversed the district court's dismissal of an action brought by plaintiff, a federal prisoner, alleging violation of his Eighth Amendment rights and seeking damages under Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971). Plaintiff alleged that a correctional officer labeled him a snitch to other prisoners, offered them a bounty to assault plaintiff, and failed to protect him from the predictable assault by another prisoner.The panel construed the pro se complaint liberally and held that plaintiff's complaint alleged conduct beyond deliberate indifference. The panel applied Carlson v. Green, 446 U.S. 14 (1980), explaining that if the Supreme Court allowed a guard who is aware of and deliberately indifferent to a substantial risk that a prisoner will suffer medical harm from an asthma attack to be sued under Bivens, it was but a modest extension to allow a suit against a guard who creates the substantial risk of harm and then allows it to occur. The panel stated that, although this case represents a modest extension of Bivens, no special factors caution against extending the remedy to encompass this well-established claim, brought against a single rogue officer under the same constitutional provision applied in a well-recognized Supreme Court Bivens case. Accordingly, the panel remanded for further proceedings. View "Hoffman v. Preston" on Justia Law

The Ninth Circuit withdrew the case from submission and certified to the Supreme Court of California the following two questions of state law: (1) Does California Public Utilities Code 1759 preempt a plaintiff’s claim of negligence brought against a utility if the alleged negligent acts were not approved by the California Public Utilities Commission, but those acts foreseeably resulted in the utility having to take subsequent action (here, a Public Safety Power Shutoff), pursuant to CPUC guidelines, and that subsequent action caused the plaintiff’s alleged injury? (2) Does PG&E’s Electric Rule Number 14 shield PG&E from liability for an interruption in its services that PG&E determines is necessary for the safety of the public at large, even if the need for that interruption arises from PG&E’s own negligence? View "Gantner v. PG&E Corp." on Justia Law

Cambodian villagers who alleged that they were trafficked into Thailand and subjected to forced labor at seafood processing factories sued under the civil remedy provision of the Trafficking Victims Protection Reauthorization Act, 18 U.S.C. 1595. The Ninth Circuit affirmed summary judgment in favor of the defendants.Section 1596 authorizes extraterritorial application of the Act for specific criminal trafficking offenses. Even assuming that section 1595 permits a private cause of action for extraterritorial violations of section 1596's substantive provisions if other requirements are satisfied, certain defendants were not “present in the United States” at any time relevant to the lawsuit as section 1596 requires. Even if section 1596 requires foreign companies to possess nothing more than minimum contacts with the United States, the plaintiffs did not meet that standard. The record did not support either specific or general jurisdiction as a basis for finding minimum contacts. The court rejected an argument that certain defendants were present in the U.S. through an agency relationship or joint venture with a Delaware LLC with its principal place of business in California. The plaintiffs failed to establish a triable issue that a Thai company registered to conduct business in California knowingly benefitted from the alleged human trafficking and forced labor abuses, financially and by accessing a steady stream of imported seafood. View "Ratha v. Phatthana Seafood Co. Ltd." on Justia Law

A fire swept through a cabin in the Idaho wilderness. Nobody was at home, and neither residents, neighbors, nor first responders saw the cabin catch fire. The owners claimed that the fire was caused by a negligent employee of Middlefork, the homeowners’ association. An expert report prepared by fire investigator Koster hypothesized that an open-flame pilot light at the cabin ignited combustible vapors from an excessive oil stain that had been applied to the wooden deck the previous day.The district court excluded Koster’s testimony as speculative, uncertain, and contradicted by multiple eyewitness accounts. The Ninth Circuit reversed, stating that the district court improperly assumed a fact-finding role. Although a court may screen an expert opinion for reliability and may reject testimony that is wholly speculative, it may not weigh the expert’s conclusions or assume a fact-finding role. In its opinion, the district court took issue only with the expert’s ultimate conclusions. In its findings, the district court disregarded much of the expert’s scientific analysis, weighed the evidence on record, and demanded corroboration – fact-finding steps that exceeded the court’s gatekeeping role. View "Elosu v. Middlefork Ranch, Inc." on Justia Law

Relatives of Saldana, who died from COVID-19 at Glenhaven nursing home, sued Glenhaven in California state court, alleging state-law causes of action. Glenhaven removed the case to federal court. The Ninth Circuit affirmed a remand to state court,The district court lacked jurisdiction under the federal officer removal statute, 28 U.S.C. 1442, because Glenhaven did not act under a federal officer or agency’s directions when it complied with mandatory directives from the Centers for Medicare and Medicaid Services, the Centers for Disease Control and Prevention, and the Department of Health and Human Services.The claims were not completely preempted by the Public Readiness and Emergency Preparedness Act, which provides immunity from suit when the HHS Secretary determines that a threat to health constitutes a public health emergency, but provides an exception for an exclusive federal cause of action for willful misconduct. A March 2020 declaration under the Act provided "liability immunity for activities related to medical countermeasures against COVID-19.” The Act does not displace non-willful misconduct claims related to the public health emergency, nor did it provide substitute causes of action. The federal scheme was not so comprehensive that it entirely supplanted state law claims.The district court did not have jurisdiction under the embedded federal question doctrine, which applies if a federal issue is necessarily raised, actually disputed, substantial, and capable of resolution in federal court without disrupting the federal-state balance approved by Congress. View "Saldana v. Glenhaven Healthcare LLC" on Justia Law