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

Shahriyar Bolandian was convicted of insider trading based on allegations that he traded on nonpublic information regarding the mergers of two companies, information allegedly obtained from a friend, Ashish Aggarwal, who worked at J.P. Morgan. Bolandian executed trades in the stocks of PLX Technologies and ExactTarget before their respective acquisitions, ultimately earning substantial profits. These trades occurred while Aggarwal, though not assigned to the deals, worked in the relevant banking group. The case revolved around whether Aggarwal had improperly shared confidential information, and whether Bolandian knowingly traded on it.Initially, the United States District Court for the Central District of California severed Aggarwal’s trial from that of Bolandian and another co-defendant, Sadigh, due to the risk of antagonistic defenses. Aggarwal was ultimately acquitted by a jury. Afterward, a superseding indictment charged only Bolandian and Sadigh, and eventually Bolandian alone proceeded to trial. During Bolandian’s trial, a juror (Juror No. 6) expressed uncertainty about his ability to be impartial due to a family connection to J.P. Morgan. The district court questioned Juror No. 6 briefly, but allowed him to remain on the jury after both parties did not object.The United States Court of Appeals for the Ninth Circuit reviewed Bolandian’s conviction and focused on the issue of juror bias. The court held that the district court failed in its independent duty to investigate credible allegations of juror bias after Juror No. 6 expressed doubt about his impartiality. The panel concluded that defense counsel’s agreement to keep Juror No. 6 did not waive Bolandian’s right to challenge for bias, as a proper investigation is a prerequisite to waiver. The Ninth Circuit found plain error, vacated Bolandian’s conviction, and remanded for a new trial. View "USA V. BOLANDIAN" on Justia Law

The case concerns a fatal helicopter crash during a sightseeing tour in Hawaii, resulting in the deaths of all aboard, including the plaintiffs’ daughter. The helicopter, manufactured by Robinson Helicopter Company in 2000, had its main rotor hub and blades replaced with new, identical parts from Robinson in December 2018, which was over eighteen years after the helicopter’s initial delivery. The plaintiffs alleged that defects in the replaced rotor hub and blades caused the crash, and brought claims for negligence, strict products liability, and failure to warn.The United States District Court for the District of Hawaii heard the case first. Robinson invoked the General Aviation Revitalization Act of 1994 (GARA), which generally bars actions against manufacturers eighteen years after delivery of the aircraft. The plaintiffs argued for exceptions under GARA’s “rolling provision”—which restarts the repose period for newly replaced parts—and the “fraud exception”—which removes the bar if the manufacturer concealed or misrepresented material information to the FAA. The district court granted summary judgment for Robinson, holding that the rolling provision did not apply because the replacement parts were not substantively altered from the originals, and that the plaintiffs failed to plead fraud with the necessary specificity. The court also denied the plaintiffs’ motion to further amend their complaint.On appeal, the United States Court of Appeals for the Ninth Circuit held that the district court erred in requiring a “substantive alteration” for the rolling provision to apply, as GARA only requires that a new part replaces an old one. The Ninth Circuit reversed the grant of summary judgment in part and remanded for a new causation analysis regarding the replaced parts. However, the court affirmed the lower court’s determinations that the plaintiffs failed to meet the requirements for the fraud exception and that denying leave to amend was not an abuse of discretion. View "MCAULIFFE V. ROBINSON HELICOPTER COMPANY" on Justia Law

Several individuals alleged that Google collected and misused the private browsing data of Chrome users who utilized Incognito mode, despite Google’s representations about the privacy of this feature. In June 2020, five plaintiffs brought a putative class action on behalf of these users, seeking both injunctive relief and damages. After extensive discovery, the United States District Court for the Northern District of California certified a class for injunctive relief but denied certification for a damages class, finding the plaintiffs had not shown that common issues predominated over individual ones.Following the denial of damages class certification, the named plaintiffs sought review in the United States Court of Appeals for the Ninth Circuit under Rule 23(f), but the petition was denied. The case proceeded, and as trial approached, the parties settled: Google agreed to change its policies, the named plaintiffs would arbitrate their individual damages claims, and they waived their rights to appeal the denial of damages class certification. The settlement explicitly stated that absent class members were not releasing damages claims or appellate rights. Several months after the settlement, a group of 185 Chrome users, referred to as the Salcido plaintiffs, moved to intervene to preserve absent class members’ appellate rights regarding damages.The United States Court of Appeals for the Ninth Circuit reviewed the district court’s denial of the intervention motion. The Ninth Circuit held that the district court did not abuse its discretion in finding the intervention motion untimely. Applying the circuit’s traditional three-part test for intervention—considering the stage of the proceedings, prejudice to other parties, and the reason for and length of delay—the court found that intervention at this late stage would prejudice the existing parties, that the delay was unjustified, and that the timing weighed against intervention. The denial of the motion to intervene was therefore affirmed. View "BROWN V. SALCIDO" on Justia Law

A consumer purchased a set of bed sheets from a major retailer, choosing a more expensive option because the packaging stated the sheets were made of “100% cotton” and had an “800 Thread Count.” After using the sheets, he believed the quality did not match the advertised thread count. He later had the sheets tested by an expert, who determined the actual thread count was much lower. The consumer alleged that it is physically impossible for 100% cotton fabric to reach the advertised thread counts and claimed that the retailer’s labeling was false and misleading.The consumer initially brought a class action in California state court, alleging violations of California’s Unfair Competition Law and Consumer Legal Remedies Act. The retailer removed the suit to the United States District Court for the Southern District of California. The retailer moved to dismiss the complaint, arguing that the consumer failed to adequately plead his claims and that the impossibility of the claimed thread count meant no reasonable consumer would be misled. The district court agreed and dismissed the case with prejudice, relying on the Ninth Circuit’s decision in Moore v. Trader Joe’s Co., interpreting it to mean that literally impossible claims cannot deceive reasonable consumers as a matter of law.The United States Court of Appeals for the Ninth Circuit reviewed the dismissal de novo. The court held that the district court erred in its interpretation of Moore. The appellate court clarified that claims of literal falsity are actionable under California consumer protection laws and that even physically impossible claims may deceive reasonable consumers. The court reversed the district court’s dismissal and remanded the case for further proceedings, holding that the consumer’s allegations were sufficient to survive a motion to dismiss. View "PANELLI V. TARGET CORPORATION" on Justia Law

A consumer purchased a Brita water filter product, alleging that the product’s labeling and packaging led him to believe it would remove or reduce hazardous contaminants in tap water to below laboratory-detectable levels. He contended that the packaging conveyed the impression that the product would eliminate a broad range of harmful substances, but did not clearly or conspicuously state that it would not do so. The consumer claimed that he would not have purchased the product or would have paid less if he had known its actual capabilities, and asserted that reasonable consumers would have similar expectations based on the labeling.After Brita removed the lawsuit to the United States District Court for the Central District of California, the district court dismissed the complaint in its entirety without leave to amend. The district court found that the plaintiff’s claims for affirmative misrepresentation and material omission failed, applying the reasonable consumer standard and concluding that no reasonable consumer would interpret Brita’s packaging as promising removal of all hazardous contaminants to below lab-detectable limits. The district court also found the plaintiff lacked standing for certain statutory claims and determined that amendment would be futile.The United States Court of Appeals for the Ninth Circuit reviewed the district court’s dismissal and affirmed the decision. The appellate court held that no reasonable consumer would expect Brita’s water filter products to remove or reduce all hazardous contaminants to below laboratory-detectable levels, especially in light of Brita’s disclosures about the products’ capabilities and limitations. The court further held that the omission claim failed as a matter of law under the reasonable consumer standard. Finally, the appellate court concluded that the district court did not abuse its discretion by denying leave to amend, as amendment would not cure the defect. Judgment was affirmed. View "BROWN V. THE BRITA PRODUCTS COMPANY" on Justia Law

Roman Gonzales worked as a Security Police Officer for a government contractor managing a nuclear facility. He had a chronic back injury, for which he took prescription opiates. Battelle Energy Alliance, the contractor, was aware of his medical condition and medication. For several years, Gonzales performed his duties without incident, including after the Department of Energy began requiring more stringent security and medical certifications for such officers. Despite no change in his medication regimen or job performance, Battelle, after a change in medical staff and updated drug testing protocols, revoked Gonzales’s fitness-for-duty certification and subsequently terminated his employment. Gonzales then learned that management had informed coworkers he was being dismissed as an “opioid abuser,” which he reported to human resources.Gonzales filed suit in the United States District Court for the District of Idaho, alleging discrimination and retaliation under the Americans with Disabilities Act (ADA). After a five-day trial, the jury found in his favor on claims of retaliation and “regarded as” disability discrimination. Battelle moved for judgment as a matter of law, arguing that decisions involving the revocation of security-related certifications, such as the one at issue, were not subject to judicial review because such decisions are reserved for federal agencies under national security regulations. The district court denied this motion.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s judgment. The court held that revocation of Gonzales’s fitness-for-duty certification under 10 C.F.R. § 1046 was subject to judicial review because it involved medical and physical standards, not predictive national security determinations or security clearance decisions reserved to the Department of Energy. The court distinguished between non-justiciable security clearance decisions and fitness-for-duty certifications, ensuring ADA protections remain enforceable. View "GONZALES V. BATTELLE ENERGY ALLIANCE, LLC" on Justia Law

A man was convicted in California of forcible rape, false imprisonment by menace or violence, and corporal injury on a cohabitant after he assaulted his girlfriend. Following his prison sentence, as a Mexican national who had entered the United States unlawfully, he was removed from the United States through an expedited process based on his conviction for rape, which was deemed an aggravated felony under federal immigration law. Days later, he illegally reentered the country and was arrested near the border.He was then charged with illegal reentry under 8 U.S.C. § 1326. In the United States District Court for the Southern District of California, he moved to dismiss the indictment, arguing that his state rape conviction did not qualify as an aggravated felony under the Immigration and Nationality Act, and thus his removal had been improper. The district court denied his motion. He then entered a conditional guilty plea, preserving his right to appeal the denial of his motion to dismiss.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court assumed for the sake of argument that the defendant met the statutory requirements of exhaustion of administrative remedies and deprivation of judicial review. However, it held that he failed to show that his removal was “fundamentally unfair” under 8 U.S.C. § 1326(d)(3). The court concluded that the California rape statute under which he was convicted was a categorical match to the generic federal definition of rape, which includes rape by non-physical duress. Therefore, his conviction was properly considered an aggravated felony, making his expedited removal lawful. The Ninth Circuit affirmed the district court’s denial of the motion to dismiss the indictment. View "USA V. GONZALEZ-REYES" on Justia Law

Koby Don Williams, a supervisor with U.S. Immigration and Customs Enforcement, was charged with attempted online enticement of a minor after engaging in an undercover operation where he believed he was communicating with a thirteen-year-old girl named “Rebecca.” In reality, “Rebecca” was a persona created by law enforcement. Williams exchanged nearly 100 texts and several phone calls, during which “Rebecca” repeatedly stated her age. Williams negotiated sexual acts and payment, offered to travel with “Rebecca,” and ultimately arranged a meeting, bringing cash, alcohol, and generic Viagra. When arrested, Williams claimed he was conducting a human trafficking investigation.The United States District Court for the Eastern District of Washington presided over Williams’s trial. Williams’s primary defense was that he never believed “Rebecca” was a minor, asserting that he thought he was communicating with an adult. He filed pretrial motions to suppress or authenticate the decoy advertisement and, after conviction, moved for acquittal and a new trial, arguing insufficient evidence and statutory misinterpretation. The district court denied these motions. At sentencing, the court imposed a two-level obstruction-of-justice enhancement under the Sentencing Guidelines, based on Williams’s alleged perjury, without making specific factual findings.The United States Court of Appeals for the Ninth Circuit reviewed the case. It held that sufficient evidence supported the conviction for attempted enticement of a minor under 18 U.S.C. § 2422(b), rejecting Williams’s argument that the statute required proof he attempted to “transform or overcome the will” of a minor. The Ninth Circuit also found no plain error in the government’s failure to produce the original decoy advertisement. However, the court vacated Williams’s sentence, concluding the district court erred by not making explicit findings required to support the obstruction-of-justice enhancement, and remanded for resentencing. The conviction was affirmed. View "USA V. WILLIAMS" on Justia Law

An Iranian citizen, living in the United States, held a credit card account with a large financial institution. Due to United States sanctions against Iran, federal regulations prohibit U.S. banks from providing services to accounts of individuals ordinarily resident in Iran, unless those individuals are not located in Iran. The bank had a compliance policy requiring account holders from such sanctioned countries to regularly provide documents showing they were not residing in those countries. The plaintiff, subject to this policy, submitted various documents as proof of U.S. residency. After the bank mistakenly treated one of his residency documents as temporary rather than permanent, it closed his account when he failed to submit additional documentation.The plaintiff sued in state court, alleging violations of federal and state anti-discrimination and consumer protection statutes, including 42 U.S.C. § 1981, the Equal Credit Opportunity Act, the California Unruh Civil Rights Act, and the California Unfair Competition Law. The defendant bank removed the case to the United States District Court for the Southern District of California. The district court granted summary judgment for the bank on all claims except for an ECOA notice claim and a related UCL claim, both of which the plaintiff later voluntarily dismissed. The plaintiff then appealed.The United States Court of Appeals for the Ninth Circuit held that the International Emergency Economic Powers Act’s liability shield provision immunizes the bank from liability for good faith actions taken in connection with compliance with sanctions regulations, even if such actions are not strictly compelled by the regulations. The court found that the bank’s policy was consistent with federal guidance and that the plaintiff failed to show a genuine dispute of material fact regarding the bank’s good faith. The Ninth Circuit affirmed the district court’s judgment in favor of the bank. View "NIA V. BANK OF AMERICA, N.A." on Justia Law

A group of eighteen minors residing in California filed a lawsuit against the U.S. Environmental Protection Agency (EPA) and other federal officials, claiming that the government’s policy of discounting future costs and benefits in cost-benefit analyses for greenhouse gas (GHG) regulations discriminates against children. The plaintiffs alleged this practice favors present-day consumption, benefiting adults over minors, and leads to under-regulation of GHG emissions. They argued this under-regulation contributes to climate change, which, in turn, causes them various harms including property damage, health issues, and psychological distress.The case was first heard in the United States District Court for the Central District of California. That court dismissed the action, ruling that the plaintiffs lacked Article III standing. The court found that the plaintiffs’ claims did not establish a cognizable injury-in-fact, that the alleged environmental harms were not fairly traceable to the government’s discounting policies, and that the requested declaratory relief would not redress their injuries. The district court allowed the plaintiffs one opportunity to amend their complaint, but after the plaintiffs did so, the court again dismissed the case and denied further leave to amend, finding further amendment would be futile.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal. The Ninth Circuit held that the plaintiffs failed to allege a viable injury to their equal protection rights, as the government’s discounting policies were not shown to be motivated by discriminatory intent toward children. The court also found the alleged environmental harms too attenuated and speculative to be fairly traceable to the challenged policies. Additionally, circuit precedent foreclosed the requested declaratory relief, as it would not redress the plaintiffs’ injuries. The Ninth Circuit concluded that denying further leave to amend was not an abuse of discretion. View "G.B. V. ENVIRONMENTAL PROTECTION AGENCY" on Justia Law