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

Thomas Mooney, the plaintiff, was employed as the Chief Operating Officer (COO) for Dr. Douglas Fife, Heather Fife, and Fife Dermatology, PC, doing business as Vivida Dermatology. Mooney raised concerns about improper billing practices at Vivida. After a conversation with Dr. Ken Landow, a dermatologist from another practice, Vivida terminated Mooney's employment, citing unauthorized disclosure of confidential information in violation of his employment agreement.The United States District Court for the District of Nevada granted summary judgment in favor of Vivida on all three of Mooney's claims: False Claims Act (FCA) retaliation, breach of contract, and breach of the implied covenant of good faith and fair dealing. The district court concluded that Mooney's reporting of billing irregularities did not put Vivida on notice of potentially protected conduct under the FCA. It also found that Mooney had violated the confidentiality provision of his employment agreement and that his claim for breach of the implied covenant of good faith and fair dealing failed because he did not argue that Vivida literally complied with the contract.The United States Court of Appeals for the Ninth Circuit reversed the district court's summary judgment. The appellate court held that the district court erred in applying the relevant substantive law for Mooney's FCA retaliation claim and failed to view the evidence in the light most favorable to Mooney for his breach of contract and breach of the covenant of good faith and fair dealing claims. The Ninth Circuit clarified that the McDonnell Douglas burden-shifting framework applies to FCA retaliation claims and that the Moore test for protected conduct continues to apply following the 2009 amendment to the FCA. The court concluded that Mooney engaged in protected conduct, satisfied the notice requirement, and established genuine issues of material fact regarding whether Vivida's reasons for his termination were pretextual. The court reversed and remanded the case for further proceedings. View "MOONEY V. FIFE" on Justia Law

Michael Terpin, a cryptocurrency investor, sued AT&T Mobility, LLC after hackers gained control over his phone number through a fraudulent "SIM swap," received password reset messages for his online accounts, and stole $24,000,000 of his cryptocurrency. Terpin alleged that AT&T failed to adequately secure his account, leading to the theft.The United States District Court for the Central District of California dismissed some of Terpin's claims for failure to state a claim and later granted summary judgment against him on his remaining claims. The court dismissed Terpin's fraud claims and punitive damages claim, holding that he failed to allege that AT&T had a duty to disclose or made a promise with no intent to perform. The court also held that Terpin failed to allege facts sufficient to support punitive damages. On summary judgment, the court ruled that Terpin's negligence claims were barred by the economic loss rule, his breach of contract claim was barred by the limitation of liability clause in the parties' agreement, and his claim under Section 222 of the Federal Communications Act (FCA) failed because the SIM swap did not disclose any information protected under the Act.The United States Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of Terpin's fraud claims and punitive damages claim, agreeing that Terpin failed to allege a duty to disclose or an intent not to perform. The court also affirmed the summary judgment on Terpin's breach of contract claim, holding that consequential damages were barred by the limitation of liability clause. The court affirmed the summary judgment on Terpin's negligence claims, finding them foreclosed by the economic loss rule. However, the Ninth Circuit reversed the summary judgment on Terpin's claim under Section 222 of the FCA, holding that Terpin created a triable issue over whether the fraudulent SIM swap gave hackers access to information protected under the Act. The case was remanded for further proceedings on this claim. View "TERPIN V. AT&T MOBILITY LLC" on Justia Law

The case involves doctors who create and administer a stem cell mixture called stromal vascular fraction (SVF) by removing fat tissue from patients, processing it to concentrate stem cells, and then re-administering it to the same patients. The FDA inspected the clinics and found that the doctors were manufacturing and administering unapproved drug products, leading to a lawsuit alleging violations of the Food, Drug, and Cosmetic Act (FDCA).The United States District Court for the Central District of California held a bench trial and ruled in favor of the defendants. The court concluded that the SVF was not a "drug" under the FDCA and that the same-day SVF treatment fell under the "same surgical procedure" (SSP) exception, which exempts certain procedures from FDA regulation. The district court found that the cells in the same-day SVF were not altered chemically or biologically and that the procedure did not introduce any foreign material into the body.The United States Court of Appeals for the Ninth Circuit reviewed the case and reversed the district court's judgment. The appellate court held that the SVF constitutes a "drug" under the FDCA based on the plain text of the statute, which defines drugs as articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease, or intended to affect the structure or any function of the body. The court also rejected the defendants' argument that their same-day SVF treatment was exempt from FDA regulation under the SSP exception. The court concluded that the SSP exception applies only if the removed and implanted human cells, tissues, and cellular and tissue-based products (HCT/Ps) are the same, and in this case, the removed fat tissue and the implanted SVF are not the same.The Ninth Circuit reversed the district court's judgment and remanded the case for further proceedings. View "USA V. CALIFORNIA STEM CELL TREATMENT CENTER, INC." on Justia Law

In this case, the plaintiff alleged that a Montana Probation Officer used excessive force during an encounter in a parking lot. The incident was captured by surveillance footage, which was later auto-deleted. Despite efforts to preserve the footage, the State failed to do so, leading to the plaintiff's motion for sanctions against the State for the loss of evidence.The United States District Court for the District of Montana found that the State acted recklessly in failing to preserve the footage but did not act with gross negligence or willfulness. Invoking its inherent authority, the district court sanctioned the State by instructing the jury that it was established as a matter of law that the officer used excessive force. The jury awarded the plaintiff $75,000 in damages for the excessive-force claim.The United States Court of Appeals for the Ninth Circuit reviewed the case and held that the district court committed legal error by relying on its inherent authority to impose sanctions. The appellate court determined that Federal Rule of Civil Procedure 37(e) governs the loss of electronically stored information and the sanctions imposed. Rule 37(e)(2) allows for severe sanctions only if the party acted with the intent to deprive another party of the information's use in litigation. The district court's findings confirmed that no such intent was present, making the sanctions unlawful.As a result, the Ninth Circuit reversed the district court's sanctions orders, reversed the verdict and judgment against the probation officer, vacated the award of attorneys' fees to the plaintiff, and remanded the case for a new trial on the excessive-force claim. View "GREGORY V. STATE OF MONTANA" on Justia Law

The case involves an encounter between the Hawai'i Police Department (HPD) and Steven Hyer, which resulted in Hyer's death. On June 22, 2018, HPD officers responded to calls about Hyer's erratic behavior. Hyer, who had a history of mental illness, barricaded himself in his apartment. After several hours of failed negotiations and attempts to subdue him, including the use of a Taser and chemical munitions, HPD officers deployed a police dog. When Hyer allegedly threatened the officers with a compound bow, Corporal Torres shot and killed him.The United States District Court for the District of Hawaii granted summary judgment in favor of the defendants, the City and County of Honolulu, and several HPD officers. The court excluded the plaintiffs' expert reports, finding them speculative, unreliable, and containing legal conclusions. The court ruled that the use of force was objectively reasonable and that the officers were entitled to qualified immunity. The court also dismissed the plaintiffs' claims under the Americans with Disabilities Act (ADA) and various state law claims.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court held that the district court erred in excluding the entirety of the plaintiffs' expert reports, as the reports were based on sufficient facts and data. The Ninth Circuit found that the exclusion of these reports was prejudicial because they created genuine disputes of material fact regarding the reasonableness of the use of deadly force and chemical munitions, as well as potential ADA violations. The court reversed the district court's summary judgment on these claims but affirmed the grant of qualified immunity regarding the use of the police dog, as the law was not clearly established. The case was remanded for further proceedings. View "HYER V. CITY AND COUNTY OF HONOLULU" on Justia Law

The plaintiff pleaded guilty to obstructing a peace officer under California Penal Code § 148(a)(1) after an incident where San Diego County Deputy Sheriffs came to his home to investigate a report of domestic violence. During the encounter, the plaintiff did not comply with the deputies' orders, leading to his being pushed to the floor, which he claims resulted in a dislocated shoulder and rotator cuff tear. He later filed a 42 U.S.C. § 1983 action alleging that the deputies used excessive force.The United States District Court for the Southern District of California dismissed the plaintiff's complaint, citing Heck v. Humphrey, which bars § 1983 actions if a judgment in favor of the plaintiff would necessarily imply the invalidity of his conviction. The district court concluded that the plaintiff's resistance and the force used by the deputies were part of the same factual context and could not be separated into isolated events. Therefore, the court held that the § 1983 action was barred by Heck and denied the plaintiff's request to amend his complaint.The United States Court of Appeals for the Ninth Circuit reversed the district court's dismissal. The appellate court held that Heck did not bar the plaintiff's suit because he engaged in multiple acts of resistance or obstruction that could serve as the factual basis for his conviction, both before and after the use of force he claimed was excessive. Since the plaintiff's guilty plea did not specify which act was the basis of his conviction, success in his § 1983 action would not necessarily undermine his conviction. The court emphasized that a § 1983 action is barred by Heck only if success in the action would necessarily imply the invalidity of the plaintiff's conviction. The case was remanded for further proceedings. View "MARTELL V. COLE" on Justia Law

Three nonprofit organizations challenged two Arizona election law amendments: one allowing the cancellation of a voter’s registration if they move to another county (the “Cancellation Provision”) and another making it a felony to provide a voting mechanism to someone registered in another state (the “Felony Provision”). The plaintiffs argued these laws would jeopardize voting rights in Arizona.The United States District Court for the District of Arizona preliminarily enjoined the enforcement of both provisions, agreeing with the plaintiffs that the laws could harm voters and were likely unconstitutional. The defendants, including the Arizona Attorney General and the Yuma County Republican Committee, appealed the decision.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court held that the plaintiffs lacked Article III standing to challenge the Cancellation Provision because they only alleged a frustrated mission and diverted resources, failing to show direct harm to their core activities. The court emphasized that organizational standing requires more than just a diversion of resources; it requires a direct impact on the organization’s core activities.Regarding the Felony Provision, the court found that the plaintiffs had standing because they faced a realistic possibility of prosecution, which could chill their voter outreach activities. However, the court concluded that the plaintiffs were unlikely to succeed on the merits of their vagueness challenge. The court interpreted the phrase “mechanism for voting” narrowly, determining it referred only to unlawful acts of voting, not voter outreach or registration.The Ninth Circuit vacated the district court’s preliminary injunction and remanded the case for further proceedings consistent with its opinion. View "ARIZONA ALLIANCE FOR RETIRED AMERICANS V. MAYES" on Justia Law

In 2020, Milos Product Tanker Corporation transported approximately 40,000 tons of jet fuel belonging to Valero Marketing and Supply Company. Milos had a maritime transportation contract (Charter Party) with GP Global PTE Ltd., which arranged the voyage. Valero purchased the fuel from Koch Refining International PTE Ltd. on "cost and freight" terms, meaning Koch paid for the transportation. Upon delivery, Valero refused to pay Milos, arguing it had already paid Koch. GP Global, facing financial difficulties, also did not pay Milos, leading Milos to sue Valero for breach of contract.The United States District Court for the Central District of California granted summary judgment in favor of Milos, concluding that Valero breached an express or implied contract to pay Milos for the transportation. The court reasoned that Valero's conduct showed its consent to be bound by the Charter Party between Milos and GP Global. The court also found that Valero was alternatively liable under an implied promise to pay, based on its acceptance of the fuel.The United States Court of Appeals for the Ninth Circuit reversed the district court's decision. The appellate court held that under maritime law, the shipper (GP Global) is primarily liable for freight charges, even if a bill of lading suggests otherwise. The court found no express contract between Milos and Valero that would rebut this presumption. The Charter Party specifically stated that GP Global would pay the freight. The court also determined that Valero's conduct did not imply an agreement to be bound by the bills of lading or to pay freight. Additionally, the court found no basis for an implied obligation for Valero to pay under the principles established in States Marine International, Inc. v. Seattle-First National Bank. The court concluded that Valero was not unjustly enriched, as it had paid Koch for the freight charges. The case was remanded for further proceedings consistent with this opinion. View "MILOS PRODUCT TANKER CORPORATION V. VALERO MARKETING AND SUPPLY COMPANY" on Justia Law

Coastal Environmental Rights Foundation (CERF) sued Naples Restaurant Group, LLC, and its owner over the restaurant’s annual Fourth of July fireworks show at Alamitos Bay in Los Angeles, alleging violations of the Clean Water Act (CWA) due to fireworks discharges into the water without a permit. The district court found that one firework malfunctioned and fell into the water, but this single incident was insufficient to establish a continuing violation of the CWA. Consequently, the district court dismissed CERF’s claim without prejudice.After the district court’s decision, the Los Angeles Regional Water Quality Control Board began issuing a general National Pollutant Discharge Elimination System (NPDES) permit for public fireworks displays over Los Angeles waters. Naples applied for and received this permit, which authorized the discharges that CERF had challenged.The United States Court of Appeals for the Ninth Circuit reviewed the case and determined that it was constitutionally moot. The court held that the issuance of the NPDES permit made it absolutely clear that the alleged CWA violations could not reasonably be expected to recur, as Naples now had a permit authorizing the discharges. Therefore, CERF’s claims for declarative and injunctive relief were moot. The court also held that the same mootness standard applied to CERF’s claim for civil penalties, following the precedent set by the Supreme Court in Friends of the Earth, Inc. v. Laidlaw Environmental Services (TOC), Inc. Finally, the court concluded that CERF’s claim for attorneys’ fees was also moot.The Ninth Circuit vacated the district court’s judgment and remanded the case with instructions to dismiss it as moot. View "COASTAL ENVIRONMENTAL RIGHTS FOUNDATION V. NAPLES RESTAURANT GROUP, LLC" on Justia Law

The case involves International Petroleum Products and Additives Company (IPAC), a California-based company, which entered into sales and distribution agreements with Black Gold S.A.R.L., a Monaco-based company. Black Gold breached these agreements by using IPAC’s confidential information to develop competing products. IPAC won an arbitration award of over $1 million against Black Gold. However, Black Gold declared bankruptcy in Monaco, complicating IPAC’s efforts to collect the award.The United States District Court for the Northern District of California confirmed the arbitration award and entered judgment against Black Gold. During post-judgment discovery, Black Gold engaged in misconduct, leading the district court to sanction Black Gold and add Lorenzo and Sofia Napoleoni, Black Gold’s owners, as judgment debtors on the grounds that they were Black Gold’s alter egos. Black Gold’s petition for recognition of its Monaco bankruptcy proceedings was initially denied by the bankruptcy court, but this decision was later reversed by the Bankruptcy Appellate Panel (BAP), which mandated recognition of the Monaco proceedings.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court held that the automatic bankruptcy stay under 11 U.S.C. § 1520 did not retroactively apply to the date of the bankruptcy court’s initial denial of Black Gold’s petition. The court also held that the automatic stay did not extend to IPAC’s alter ego claim against the Napoleonis. The court affirmed the district court’s judgment and the award of attorneys’ fees and costs in favor of IPAC, concluding that the alter ego claim was not the property of Black Gold’s estate under California law. View "International Petroleum Products and Additives Co, Inc. v. Black Gold S.A.R.L." on Justia Law