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

On appeal, GranCare argued that the district court applied an improper standard for fraudulent joinder and that removal was objectively reasonable. The Ninth Circuit affirmed the district court's order, holding that the fraudulent joinder standard shared some similarities with the analysis under Fed. R. Civ. P. 12(b)(6), but the tests for fraudulent joinder and failure to state a claim were not equivalent; if a plaintiff's complaint could withstand a Rule 12(b)(6) motion with respect to a particular defendant, that defendant had not been fraudulently joined; but the reverse was not true, and if a defendant could not withstand a Rule 12(b)(6) motion, the fraudulent joinder inquiry did not end there. In this case, Thrower's heirs had shown a colorable claim against state and common law. The panel also held that GranCare's reliance on a district court's order in Johnson v. GranCare LLC, No. 15-CV-03585-RS, 2015 WL 6865876 (N.D. Cal. Nov. 9, 2015), was unreasonable due to clear factual distinctions between the cases. Finally, the award of costs and attorneys' fees was not premised on an erroneous view of the law or a clearly erroneous assessment of the evidence. View "GranCare v. Thrower" on Justia Law

Bozic purchased the weight-loss supplement Lipozene in her home state of Pennsylvania. Disappointed by the product, Bozic filed a putative class action in the Southern District of California, asserting state law claims and seeking a declaratory judgment defining Lipozene purchasers’ rights under a 2005 FTC consent decree that restricts Defendants’ ability to sell weight-loss products. The Southern District, where the decree was entered and where Defendants reside, retains jurisdiction over “construction, modification, and enforcement” of that decree. Two related putative class actions were already pending in California. Defendants moved to transfer the case to the Eastern District for consolidation with one of those cases or, in the alternative, to stay the proceedings. The court held that Bozic’s action was governed by the first-to-file rule and transferred the case. The Ninth Circuit denied Bozic’s request to reverse the transfer. While the Eastern District was not a proper venue under 28 U.S.C. 1391 and 28 U.S.C 1404(a) requires that an action can be transferred only to a district where it “might have been brought,” Bozic was not entitled to mandamus relief because issuance of a writ would have no practical impact on this case in its current procedural posture, and any injury Bozic might face was purely speculative. View "Bozic v. United States District Court, Southern District of California" on Justia Law

Garrison, a licensed physician’s assistant, was convicted of conspiracy to distribute controlled substances, 21 U.S.C. 846. During the trial, the government offered evidence that Garrison and his co-conspirators had abused their positions as healthcare providers by intentionally prescribing OxyContin, a powerful opioid pain reliever, for no legitimate medical purpose as part of a scheme to sell the drug on the street. The Ninth Circuit affirmed, rejecting an argument that there was insufficient evidence to support his conviction. The court upheld the remedies the trial court crafted for the government’s late disclosures concerning two prosecution witnesses; the district court had advised the jury of the government’s failure to timely comply with its constitutional obligations, stating that the jury could draw adverse inferences from this failure, which could lead the jury to find reasonable doubt as to Garrison’s and his codefendants’ guilt. The court also upheld jury instructions regarding the abrupt departure of two co-defendants from the trial and the dismissal of charges against a third co-defendant. View "United States v. Garrison" on Justia Law

The Ninth Circuit reversed the district court's judgment and remanded with instructions to enter judgment in favor of defendant in an action brought by the owner of a mobile home park alleging that the City engaged in an unconstitutional taking. Plaintiff alleged that the City violated the Fifth Amendment when it approved a lower rent increase than he had requested. The panel applied the factors in Penn Central Transportation Co. v. City of New York, 438 U.S. 104 (1978), and held that plaintiff did not present sufficient evidence to create a triable question of fact as to the economic impact caused by the City's denial of larger rent increases; plaintiff failed to present sufficient evidence supporting its investment-backed expectations claim; and the character of the City's action could not be characterized as a physical invasion by the government. Based on the evidence, the panel held that no reasonable finder of fact could conclude that the denials of plaintiff's requested rent increases were the functional equivalent of a direct appropriation of the property. View "Colony Cove Properties, LLC v. City of Carson" on Justia Law

The Ninth Circuit affirmed the Bankruptcy Appellate Panel's opinion reversing the bankruptcy court's order entering contempt sanctions against creditors for knowingly violating the discharge injunction in the Chapter 7 case. The panel held that creditors did not knowingly violate the discharge injunction because they had a subjective good faith belief that the discharge injunction did not apply to their state-court claim for post-petition attorneys' fees. The panel explained that creditors' subjective good faith belief, even if unreasonable, insulated them from a finding of contempt. View "In re Taggert" on Justia Law

Plaintiff filed suit against the County and two deputy sheriffs after plaintiff was shot during the deputies' response to a 911 call. When the deputies arrived at plaintiff's apartment, plaintiff answered the door holding a large knife. Although the jury's verdict that Deputy Rose violated plaintiff's right to be free from excessive force was sufficient to deny him qualified immunity under the first prong of the qualified immunity analysis, the panel held that plaintiff failed to identify any sufficiently analogous cases showing that under similar circumstances a clearly established Fourth Amendment right against the use of deadly force existed at the time of the shooting. Therefore, the panel affirmed the district court's ruling that Deputy Rose was entitled to qualified immunity. The panel held that the district court erroneously concluded that the California Bane Act required a separate showing of coercion beyond that inherent in the use of force. The panel held that the Bane Act required a specific intent to violate the arrestee's right and that no reasonable jury in this case could find that the deputy had a specific intent to violate plaintiff’s Fourth Amendment rights. Accordingly, the panel reversed and remanded this claim for a new trial. Finally, the panel addressed claims in defendants' cross-appeal. View "Reese v. County of Sacramento" on Justia Law

The Ninth Circuit affirmed the district court's dismissal of copyright infringement claims brought by a monkey over selfies he took on a wildlife photographer's unattended camera. Naruto, a crested macaque, took several photos of himself on the camera, and the photographer and Wildlife Personalities subsequently published the Monkey Selfies in a book. PETA filed suit as next friend to Naruto, alleging copyright infringement. The panel held that the complaint included facts sufficient to establish Article III standing because it alleged that Naruto was the author and owner of the photographs and had suffered concrete and particularized economic harms; the monkey's Article III standing was not dependent on the sufficiency of PETA; but Naruto lacked statutory standing because the Copyright Act did not expressly authorize animals to file copyright infringement suits. Finally, the panel granted defendants' request for attorneys' fees on appeal. View "Naruto v. Slater" on Justia Law

The Ninth Circuit held that it had subject matter jurisdiction in this case because 28 U.S.C. 1332's amount-in-controversy requirement was met when the case was removed. The panel clarified that the amount in controversy is not limited to damages incurred prior to removal—for example, it is not limited to wages a plaintiff-employee would have earned before removal (as opposed to after removal). Rather, the panel explained that the amount in controversy is determined by the complaint operative at the time of removal and encompasses all relief a court may grant on that complaint if the plaintiff is victorious. In this case, the amount-in-controversy requirement was easily satisfied and the panel had subject matter jurisdiction over the action. View "Chavez v. JPMorgan Chase & Co." on Justia Law

Plaintiff, on behalf of former Emulex shareholders, appealed the district court's dismissal of his putative securities class action. The Ninth Circuit held that claims under Section 14(e) of the Securities Exchange Act of 1934, 15 U.S.C. 78n(e), require a showing of negligence, not scienter. Therefore, the panel reversed the dismissal of the complaint and remanded to the district court for it to reconsider defendants' motion to dismiss under a negligence standard. Because plaintiff's Section 14(e) claim survived, his claim under Section 20(a) of the Exchange Act also remained. Furthermore, the panel affirmed the district court's conclusion that Section 14(d)(4) of the Exchange Act did not create a private right of action and dismissal of the complaint as to Emerald Merger Sub because it was not a proper defendant. View "Varjabedian v. Emulex Corp." on Justia Law

Former Maricopa County Sheriff Arpaio was referred for criminal contempt in August 2016. The government obtained a conviction on July 31, 2017. On August 25, 2017, the President pardoned Arpaio, noting that Arpaio’s sentencing was “set for October 5, 2017.” On August 28, 2017, Arpaio moved “to dismiss this matter with prejudice” and asked the district court “to vacate the verdict and all other orders” plus the sentencing. On October 4, the district court dismissed with prejudice the action for criminal contempt. No timely notice of appeal order was filed. The Ninth Circuit denied a late-filed request for the appointment of counsel to “cross-appeal” the dismissal. The district court denied Arpaio’s second request and refused to grant “relief beyond dismissal with prejudice.” Arpaio filed a timely notice of appeal. In response to a request for the appointment of counsel to defend the order denying Arpaio’s request for vacatur, the government stated that it “does not intend to defend the district court’s order” and intends to argue, as it did in the district court, that the motion to vacate should have been granted. The Ninth Circuit appointed a special prosecutor to file briefs and present oral argument on the merits. View "United States v. Arpaio" on Justia Law