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

The Ninth Circuit affirmed the district court's judgment affirming the bankruptcy court's order granting a Chapter 7 trustee's motion to exercise management rights over Dillon and authorizing the trustee's assumption of the operating agreement with Dillon. Dillon is a limited liability company created to hold title to foreclosed property securing investments by private investors in Point Center Financial, and appellants are the former principal of Point Center Financial, the debtor, and members of Dillon.The panel held that the Harkey parties have standing to pursue this appeal; the bankruptcy court had subject matter jurisdiction to confirm the vote establishing the trustee as manager of Dillon and to hear the assumption motion; the bankruptcy court properly authorized the trustee to exercise management rights over Dillon after the majority of Dillon's members voted for the trustee to manage Dillon; the bankruptcy court properly extended its own deadline for assumption of the operating agreement pursuant to Fed. R. Bankr. P. 9006(b)(1)(2); and the panel need not reach the question of equitable mootness because it affirmed the district court on other grounds. View "In re: Point Center Financial, Inc." on Justia Law

The Ninth Circuit affirmed the NLRB's decision that PSAV did not violate the Act by failing to produce documents responsive to Local 15's first document request. At issue in this collective bargaining case was whether PSAV effectively retracted its claim of inability to pay the union's wage and benefits proposals, thereby limiting its obligation to produce financial documents to the union, and whether PSAV failed to bargain in good faith.The panel held that substantial evidence supported the Board's findings that PSAV did retract its inability-to-pay claim. In this case, PSAV did not refer to financial nonviability after retracting its inability-to-pay claim, nor does the larger context of the parties' negotiations suggest that PSAV’s position was based on a lack of financial viability. The panel also held that PSAV's conduct both at and away from the bargaining table did not establish that it acted in bad faith in violation of the National Labor Relations Act. View "International Alliance of Theatrical Stage Employees v. National Labor Relations Board" on Justia Law

The Ninth Circuit affirmed the district court's order excluding plaintiff's expert opinion, and denying class certification in a design defect case concerning 2003–2008 Honda Pilot vehicles. Plaintiff's expert opined that the window regulators were not sufficiently durable when exposed to vibrations at certain frequencies.The panel held that the district court did not abuse its discretion in excluding plaintiff's expert opinion under Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993); the district court properly held that the expert's opinion was unreliable due to his failure to utilize a workable standard supporting his design defect theory, the lack of supporting studies or testing to demonstrate a common design defect, and deficiencies in the expert's methodology; and, in the absence of the report, plaintiffs failed to demonstrate commonality, as the remaining evidence consisted solely of highly individualized complaints. View "Grodzitsky v. American Honda Motor Co." on Justia Law

The Ninth Circuit vacated Defendant Bacon's conviction for assault with a deadly weapon with intent to do bodily harm and assault causing serious bodily injury, and remanded for a new trial. The court held that the district court abused its discretion in excluding the testimony of a clinical expert psychologist, which would have allowed Bacon to present an insanity defense, because the testimony was relevant to defendant's defense. Furthermore, the error was not harmless and the panel could not tell from the record whether the testimony was reliable. View "United States v. Ray" on Justia Law

Under 26 U.S.C. 2036(a)(1), a grantor's interest in a grantor-retained annuity trust (GRAT) is a sufficient "string" that requires the property interest to be included in the gross estate. The Ninth Circuit affirmed the district court's grant of summary judgment to the IRS in an action brought by plaintiff, challenging the inclusion of her mother's GRAT in a gross estate for purposes of the estate tax. The panel explained that the annuity flowing from a GRAT falls within the class intended to be treated as substitutes for wills by section 2036(a)(1). In this case, the panel held that the grantor retains enjoyment of a GRAT and thus it is properly included in the gross estate. Finally, even if plaintiff's challenges to 26 C.F.R. § 20.2036-1(c)(2), which includes the formula the IRS uses to calculate the portion of the property includable under section 2036(a) were not waived, the formula would not apply in this case. View "Badgley v. United States" on Justia Law

The Ninth Circuit denied petitioner's request for compensation at government expense of his court-appointed pro bono counsel in a petition for review of the BIA's denial of relief from removal.The panel held that petitioner and his amici curiae identify no authority, including under the federal habeas statutes, the All Writs Act, and the Criminal Justice Act, as informed by the Suspension Clause, allowing the panel to order the government to compensate counsel for mentally incompetent petitioners in petitions for review under 8 U.S.C. 1252(a). The panel stated that, although it has inherent authority to appoint pro bono counsel for petitioner, and did so in his petition for review, it lacked the requisite statutory authority to order government compensation for his appointed counsel. View "Perez v. Barr" on Justia Law

In 2003, Dansker obtained an $83,000 home loan to purchase Las Vegas real estate. In 2009, Dansker died. No probate proceedings were instituted. In 2011, the neighborhood HOA began foreclosure proceedings and sold the property to LN. The priority lien-holder was Fannie Mae and the Federal Housing Finance Agency. The district court held that LN had not identified any legal representative of Dansker’s estate, and since no such person was identified and joined, complete diversity existed. The district court dismissed and denied a motion to substitute Dansker’s daughter.The Ninth Circuit vacated. Diversity did exist at the time of removal. The trial judge did not abuse his discretion by denying a motion to substitute, so diversity jurisdiction continued to exist. The lawsuit was against Chase and Dansker. Dansker, being dead, had no legal existence, and, therefore, was not a citizen of any state. Jurisdiction exists where the federal entity is not the record beneficiary on the deed of trust but can prove its property interest through admissible evidence.The Federal Foreclosure Bar, which provides that FHFA's property shall not be subject to foreclosure without FHFA's consent, applies and is fatal to LN’s case on the merits. View "LN Management, LLC Series 5664 Divot V. JPMorgan Chase Bank N.A." on Justia Law

Luna is a former employee of Hansen, which employs over 1,100 big rig truckers, mechanics, dispatchers, and other support staff. Hansen’s hiring process involved a Commercial Driver Employment Application, which included notices and authorizations permitting Hansen to retrieve safety history and driving records, and conduct drug and background checks. Job applicants signed “the disclosure,” which appeared on a separate sheet of paper, and informed applicants “that reports verifying your previous employment, previous drug and alcohol test results, and your driving record may be obtained on you for employment purposes,” and “the authorization,” at the end of the Application, which indicated that an applicant’s signature authorized Hansen “to investigate my previous record of employment” and included other notices, waivers, and agreements unrelated to acquiring the consumer report.Luna filed a putative class action alleging Hansen ’s hiring process violated the Fair Credit Reporting Act (FCRA). The Ninth Circuit affirmed summary judgement in favor of Hansen. FCRA forbids procurement of a consumer report for employment purposes unless “a clear and conspicuous disclosure has been made in writing ... in a document that consists solely of the disclosure.” 15 U.S.C. 1681b(b)(2)(A)(i). Hansen’s disclosure may have been provided alongside other application materials, but it appeared in a standalone document, as FCRA requires. View "Luna v. Hansen & Adkins Auto Transport, Inc." on Justia Law

The Ninth Circuit reversed the district court's grant of summary judgment for prison officials in a 42 U.S.C. 1983 action alleging that defendants violated plaintiff's right to be free from cruel and unusual punishment when they failed to protect him from an attack by another inmate. The panel held that defendants violated plaintiff's Eighth Amendment right to be protected from serious harm while incarcerated. The panel also held that a reasonable fact-finder would be able to conclude that defendants were subjectively aware of the substantial risk of serious harm to plaintiff, and failed to respond reasonably; any reasonable prison official in the defendants' position would know that the actions defendants took, and failed to take, violated the Eighth Amendment; none of the defendants can claim ignorance to a prisoner's right to be protected from violence at the hands of other inmates where that right has been clearly established in Farmer v. Brennan, 511 U.S. at 833 (1994).Finally, the panel noted that throughout proceedings in the district court plaintiff struggled to obtain discovery from defendants. On remand, plaintiff should have another opportunity to seek the materials he requested previously, and the panel encouraged the district court to appoint him counsel. View "Wilk v. Neven" on Justia Law

The Ninth Circuit granted a petition for writ of mandamus and ordered the EPA to respond to the NRDC's petition requesting that the EPA end the use of a dangerous pesticide, tetrachlorvinphos (TCVP), in household pet products. The panel held that the EPA has unreasonably and egregiously delayed the performance of its statutory duties on this critical matter of public health and that the circumstances warrant the extraordinary remedy of issuing a writ of mandamus.The panel considered the factors established in Telecomms. Research and Action Ctr. (TRAC) v. FCC, 750 F.2d 70, 79–80 (D.C. Cir. 1984), and held that the factors supported mandamus relief where, for more than a decade, the EPA has frustrated NRDC's ability to seek judicial review by withholding final agency action, all the while endangering the well-being of millions of children and ignoring its "core mission" of "protecting human health and the environment." The panel noted that, if the EPA begins cancellation proceedings, then the panel expects cancellation proceedings to conclude within one year of the date of this decision, and any extension beyond that must be supported by a showing of good cause. If the agency denies NRDC's petition on the merits, then NRDC may appeal that final agency action under the standards of the Administrative Procedure Act and any other applicable law. View "Natural Resources Defense Council v. EPA" on Justia Law