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

Abraham Bielski, a user of cryptocurrency exchange Coinbase, brought a lawsuit alleging that Coinbase failed to investigate the unauthorized transfer of funds from his account. Coinbase attempted to compel arbitration based on an arbitration agreement in its User Agreement, which included a delegation provision stating that any dispute arising out of the agreement, including enforceability, should be decided by an arbitrator, not a court. Bielski argued that the delegation provision and arbitration agreement were unenforceable due to unconscionability. The United States Court of Appeals for the Ninth Circuit held that a party must specifically reference and challenge the delegation provision for a court to consider it, and that a party may use the same arguments to challenge both the delegation provision and the arbitration agreement, as long as they articulate why the argument invalidates each specific provision. The court also held that when evaluating whether a delegation provision is unconscionable under California law, a court must interpret the provision in the context of the entire agreement, which may require examining the underlying agreement. After analyzing the Coinbase delegation provision in context, the court determined that it was not unconscionable. The court reversed the district court’s order denying Coinbase’s motion to compel arbitration. View "BIELSKI V. COINBASE, INC." on Justia Law

The United States Court of Appeals for the Ninth Circuit affirmed the district court's denial of the second federal habeas corpus petition by Jaime Dean Charboneau, who sought to overturn his conviction for the 1984 shooting death of his ex-wife in Idaho. Charboneau alleged that Idaho officials violated their obligations under Brady v. Maryland by encouraging his ex-wife's daughter, Tira, to provide false statements and testimony regarding her mother’s death and to dispose of potentially exculpatory evidence. In support of these allegations, Charboneau relied on a letter written by Tira in 1989. However, the court held that Charboneau failed to meet the threshold requirement of showing actual innocence as required by 28 U.S.C. § 2244(b)(2)(B)(ii) for consideration of second or successive federal habeas petitions. The court held that, even if the letter was genuine, the statements in the letter, viewed in light of all the evidence, were not sufficient to establish by clear and convincing evidence that no reasonable factfinder would have convicted Charboneau of first-degree murder. The court concluded that Charboneau’s new materials did not suffice to make the requisite showing of actual innocence. Therefore, the district court properly dismissed his petition without reaching the merits of his Brady claim. View "CHARBONEAU V. DAVIS" on Justia Law

The United States Court of Appeals for the Ninth Circuit vacated a Biological Opinion (BiOp) by the U.S. Fish and Wildlife Service (the Service) and remanded the case for further consideration. The case involved a dispute over the use of water from the San Pedro River Basin in Arizona by the U.S. Army's Fort Huachuca. The Army uses water from the basin, which is also home to several species protected under the Endangered Species Act. To compensate for the water use, the federal government proposed a "conservation easement" that would limit the use of nearby land for agricultural purposes, therefore saving water and protecting the wildlife that depend on the basin. The plaintiffs, environmental organizations, argued that the BiOp lacked evidence to support the claim of water savings from the easement. The Ninth Circuit agreed, stating that the government's determination that the easement would not jeopardize wildlife was arbitrary and capricious due to the lack of evidence supporting the claimed water savings. The court stated that the government must show that the benefit from the conservation easement would be "reasonably certain" under the relevant regulations. The court also held that the government's conclusion that reduced flow in the Babocomari River, a tributary of the San Pedro River, would not jeopardize the northern Mexican gartersnake was not arbitrary and capricious. View "CENTER FOR BIOLOGICAL DIVERSITY V. DEB HAALAND" on Justia Law

In this case, the plaintiffs, who are shareholders of Facebook, Inc., brought a securities fraud action against the company and its executives, alleging that they made materially misleading statements and omissions about the risk of improper access to Facebook users' data, Facebook's internal investigation into the actions of Cambridge Analytica, and the control Facebook users have over their data. The United States Court of Appeals for the Ninth Circuit affirmed in part and reversed in part the decision of the District Court for the Northern District of California.The Circuit Court held that the shareholders adequately pleaded falsity as to the challenged risk statements in Facebook's 2016 Form 10-K. The court held that these statements were materially misleading because Facebook knew at the time of filing that the risk of improper third-party misuse of Facebook users' data was not hypothetical, but had already occurred.As to the statements regarding Facebook's investigation into Cambridge Analytica, the court affirmed the district court's decision, holding that the shareholders failed to plead scienter, or intent to defraud.Lastly, the court held that the shareholders adequately pleaded loss causation as to the statements assuring users that they controlled their data on the platform. The court found that the shareholders had adequately pleaded that the March 2018 revelation about Cambridge Analytica and the June 2018 revelation about Facebook's whitelisting policy were the first times Facebook investors were alerted that Facebook users did not have complete control over their own data, causing significant stock price drops.The case was remanded to the district court for further proceedings. View "AMALGAMATED BANK V. FACEBOOK, INC." on Justia Law

A group of individuals from India, who have been lawfully working in the United States for years and waiting in line for more than a decade for their immigrant visas, sued the U.S. Citizenship and Immigration Services (USCIS) and U.S. Department of State. They sought to compel the USCIS to act on their applications for adjustment of status to become lawful permanent residents. However, the USCIS had not processed their applications because the State Department revised its forecast and concluded that it had hit the visa cap for the year. The plaintiffs argued that the USCIS and the State Department were improperly interpreting the Immigration and Nationality Act (INA) by requiring an immigrant visa to be available at the time of adjudication rather than at the time of filing the application.The United States Court of Appeals for the Ninth Circuit affirmed the district courts' denials of injunctive relief. The court concluded that the plaintiffs were unlikely to succeed on the merits of their claims. The court found that the government's interpretation of the INA, requiring an immigrant visa to be available before the government can adjudicate an application for adjustment of status, was consistent with the INA and reasonably filled in a procedural detail left open by Congress. The court also noted that the regulation was not in conflict with the statutory text and was left in the government's discretion by Congress. The court further opined that the plaintiffs' proposed rule could result in inefficiency and further delay. View "JIGAR BABARIA, ET AL V. ANTONY BLINKEN, ET AL" on Justia Law

Plaintiff employees who opted out of their union and employer-sponsored health plans received a monetary credit, part of which was deducted as a fee that was then used to fund the plans from which plaintiffs had opted out. Plaintiffs argue that this opt-out fee should be treated as part of their “regular rate” of pay for calculating overtime compensation under the Fair Labor Standards Act (FLSA).   The Ninth Circuit affirmed the district court’s grant of summary judgment. The panel held that the opt-out fees were not part of the employees’ “regular rate” of pay, but rather were exempted as “contributions irrevocably made by an employer to a trustee or third person pursuant to a bona fide plan for providing” health insurance under 29 U.S.C. Section 207(e)(4). View "ANTHONY SANDERS, ET AL V. COUNTY OF VENTURA" on Justia Law

Petitioner is a native and citizen of Mexico. He was admitted to the United States as a lawful permanent resident in 2002. But in 2019, a jury convicted him of possessing methamphetamine, a controlled substance, with intent to deliver, in violation of Idaho Code section 37-2732(a)(1)(A). The Department of Homeland Security initiated removal proceedings in 2021, charging that Petitioner is removable (1) under 8 U.S.C. Section 1227(a)(2)(A)(iii), for having been convicted of an aggravated felony related to illicit trafficking in a controlled substance, and (2) under 8 U.S.C. Section 1227(a)(2)(B)(i), for having been convicted of violating a state law relating to a controlled substance. Petitioner filed a motion to terminate proceedings, asserting that his conviction is neither for an aggravated felony nor for a crime related to a controlled substance. The immigration judge disagreed and ordered Petitioner’s removal. The Board of Immigration Appeals (“BIA”) dismissed Petitioner’s appeal. Petitioner sought review of the final order of removal.   The Ninth Circuit denied Petitioner’s petition. Applying the modified categorical approach, the panel concluded that Petitioner’s conviction record clearly documents that his conviction involved methamphetamine, a controlled substance under federal and Idaho law. The panel next concluded that the required mental state under federal and Idaho law—knowledge—is the same in all relevant respects: the defendant either must know what the substance is (even if the defendant does not know that it is controlled) or must know that the substance is illegal (even if the defendant does not know what the substance is). View "TELLEZ-RAMIREZ V. GARLAND" on Justia Law

Plaintiff is a resident of California. While present in California, Plaintiff used his iPhone’s Safari browser to navigate to the website of California-based retailer IABMFG to purchase fitness apparel. Although Plaintiff claims he did not know it at the time, IABMFG’s website used software and code from Shopify, Inc. to process customer orders and payments. Shopify, Inc. is a Canadian corporation with its headquarters in Ottawa, Canada. Plaintiff filed a putative class action lawsuit in California alleging that Shopify violated various California privacy and unfair competition laws because it deliberately concealed its involvement in consumer transactions. The district court agreed, dismissing the second amended complaint without leave to amend. Plaintiff timely appealed.   The Ninth Circuit affirmed. For specific jurisdiction to exist over Shopify, Plaintiff’s claim must arise out of or relate to Shopify’s forum-related activities. The panel held that there was no causal relationship between Shopify’s broader business contacts in California and Plaintiff’s claims because these contacts did not cause Plaintiff’s harm. Nor did Plaintiff’s claims “relate to” Shopify’s broader business activities in California outside of its extraction and retention of plaintiff’s data. Because there was an insufficient relationship between plaintiff's claims and Shopify’s broader business contacts in California, the activities relevant to the specific jurisdiction analysis were those that caused Plaintiff’s injuries: Shopify’s collection, retention, and use of consumer data obtained from persons who made online purchases while in California. The panel held that Shopify, which provides nationwide web-based payment processing services to online merchants, did not expressly aim its conduct toward California. View "BRANDON BRISKIN V. SHOPIFY, INC., ET AL" on Justia Law

Plaintiff and other tenants filed suit against the Duringer Law Group, PLC, and Stephen C. Duringer, alleging that Duringer violated the Act by filing a memorandum of costs in state court proceedings concerning an unlawful-detainer judgment. The district court concluded that Tenants’ federal suit constituted an improper appeal of a state-court judgment and thus was barred by the Rooker-Feldman doctrine.   The Ninth Circuit reversed the district court’s summary judgment. The court explained that the Rooker-Feldman doctrine provides that, by vesting jurisdiction over state-court appeals in the U.S. Supreme Court, 28 U.S.C. Section 1257 precludes a federal district court from exercising subject-matter jurisdiction in an action asking the court to overturn an injurious state-court judgment. The panel held that the doctrine is limited to cases (1) brought by state-court losers (2) complaining of injuries caused by state-court judgments (3) rendered before the district court proceedings commenced and (4) inviting district court review and rejection of those judgments. The panel concluded that the tenants’ action did not challenge a memorandum of costs on which the state court already had rendered judgment, but rather a later memorandum. Because there was no relevant state-court judgment purporting to adjudicate the validity of the costs in the later memorandum, Rooker-Feldman did not apply. View "JANEY BROWN, ET AL V. DURINGER LAW GROUP PLC, ET AL" on Justia Law

This case involves alleged violations of the Clean Water Act (CWA). Plaintiff Cottonwood Environmental Law Center (Cottonwood) filed suit against Defendants Big Sky County Water & Sewer District No. 363 (the District) and Boyne USA, Inc. (Boyne) for their alleged discharge of treated wastewater into the West Fork of the Gallatin River (the West Fork) without a National Pollution Discharge Elimination System (NPDES) permit. The district court ruled that Cottonwood could not advance a direct-discharge theory of CWA liability against the District at trial. The district court also dismissed Cottonwood’s claim against Boyne for lack of proper notice.   The Ninth Circuit affirmed in part and reversed in part the district court’s judgment. Affirming in part, the panel held that the district court properly ruled, in orders denying summary judgment, that Cottonwood could not advance a direct-discharge theory of liability against the District at trial. The panel held that it had jurisdiction to review the district court’s orders denying summary judgment to Cottonwood because, in those orders, the district court rejected Cottonwood’s direct-discharge theory as a matter of law. The panel affirmed the district court’s holding that the District could not be liable on a direct-discharge theory because an underdrain pipe below but not connected to the District’s holding ponds did not transfer pollutants between meaningfully distinct water bodies and thus was not a “point source” of pollution. Reversing the district court’s dismissal of Cottonwood’s Clean Water Act the panel held that Cottonwood’s letter to Boyne provided sufficient notice of Cottonwood’s indirect-discharge theory of liability. View "COTTONWOOD ENVIRONMENTAL LAW CENTER, ET AL V. RON EDWARDS, ET AL" on Justia Law