Thoughts on recent Ninth Circuit and California appellate cases from Professor Shaun Martin at the University of San Diego School of Law.
Monday, November 29, 2021
U.S. v. Mora-Cobian (9th Cir. - Nov. 29, 2021)
Wednesday, November 24, 2021
Nababan v. Garland (9th Cir. - Nov. 23, 2021)
Tuesday, November 23, 2021
City of Oxnard v. County of Ventura (Cal. Ct. App. - Nov. 23, 2021)
Justice Tangeman may well be right that this is what California's EMS statute requires. That's what the trial court thought, and on appeal, the panel unanimously agreed.
But, if so, my intuition is that the principle behind the statute might be silly.
The EMS Act says, essentially, that after 1980, if a city joins a joint powers arrangement with another city or county for the provision of ambulance services, it can't withdraw from that agreement. Ever -- at least according to the Court of Appeal.
So no matter how terrible the ambulance company, no matter how abysmal the service, and no matter how deprived residents of the City are for ambulances, the City has no recourse. Only the relevant county can decide -- and as long as the county is happy, that's the end of the matter.
Here, the City of Oxnard is understandably doesn't like the existing ambulance provider. The city has a lot of poor people, whereas the county has a lot of rich people. The ambulance company (allegedly) loves to hang out in the rich areas, and hate to pick up people in the poor areas. The response time for calls in the city is a lot longer than the response time for calls in the county. The "floater" ambulances were twice as likely to be located in rich areas than in poorer areas. Delays in responding to city calls were twice the number of delays in responding to calls in the county. Stuff like that.
No matter. The county loves the ambulance company. (Perhaps you can see why.) But the city can't ever withdraw from the agreement and hire its own provider. Again: Ever.
I get the principle that there needs to be some stability in ambulance services so that companies can make investments and the like. But it'd be more than sufficient for the statute to allow cities to leave after five or ten years or so. That's more than enough time to recoup your investment. Plus, the statute allows the county to leave whenever it wants, so that's hardly proof that companies need an infinite contractual period for sufficient stability.
Seems to me the statute should be amended. The Court of Appeal didn't (at all) suggest that, so I thought I would. Seems to me like there's a classic agency problem here; cities have limited input, so get hosed.
Good luck getting an amendment through the lobbyists for counties and ambulance companies, though. Yet another agency problem.
Friday, November 19, 2021
Goulart v. Garland (9th Cir. - Nov. 18, 2021)
There are three opinions in this Ninth Circuit case.
Judge Paez writes a short (four paragraph), moderate opinion that affirms the denial of a request to reopen an immigration case; as a result, the petitioner stays deported.
Judge VanDyke concurs in the judgment and authors a lengthy discourse, and Judge Korman (sitting by designation) authors a dissent.
Here's a brief snippet from the debate between Judges VanDyke and Korman:
Judge VanDyke: "[O]ne wonders: Why would one champion charting a completely new and unsupported path of legal reasoning just to avoid the lawful removal of a convicted burglar? I agree with Judge Korman’s laudable paean to doing equal justice. But in our system of government that means respecting the laws passed by Congress, not bending them—including our nation’s immigration laws." (emphasis in original)
Judge Korman: "Judge VanDyke questions why I have bothered to “champion” the cause of a convicted burglar. The answer should be obvious. The judicial oath, which was adopted in the Judiciary Act of 1789, requires us to “administer justice without respect to persons, and do equal right to the poor and to the rich.” See 1 Stat. 73, 76 (codified at 28 U.S.C. § 453). We take such an oath, which derives from biblical teachings, see Deuteronomy 1:17, so as not to be blinded by our like or dislike of the parties. We are not called to decide whether Goulart is a good person, but rather whether a person who has been banished from the United States without legal justification should be permitted to seek to return. The Supreme Court has held that the precise statute under which Goulart was deported violates the Constitution. Principles of law and equity require that he be permitted to move for reconsideration in this case."
Thursday, November 18, 2021
Blizzard Energy v. Shaefers (Cal. Ct. App. - Nov. 18, 2021)
Just a couple of quick thoughts about today's opinion from the Court of Appeal, which affirms the addition of a judgment debtor but remands to see if the wife is an innocent spouse who should't be added:
(1) I think the opinion should add the word "allegedly" before its discussion of the separation agreement stuff. The wrongdoing husband owned 50% of an LLC -- the one added as a judgment debtor -- and his wife owned the other 50%. The trial court found that the wife's interest in the LLC could be included in the debt (since it was community property), but the Court of Appeal wasn't so sure. The panel said that since the parties separated in 1996, and all the fraud happened thereafter -- and didn't actively involve the wife -- maybe she's an innocent spouse and in the interests of justice her interest in the LLC shouldn't be attached.
Maybe. But the Court of Appeal repeatedly refers to their separation agreement, the fact that they lived apart since then, and all this other stuff as an established fact. Maybe it is; I can't find the decision below. But the trial court allowed the wife's interest to be attached, so I'm not at all certain that the trial court made a factual finding on any of those factual points recited by the Court of Appeal. And there's certainly reason to suspect that, uh, maybe those facts are not true; in particular, the fact that the parties allegedly separated in 1996, yet continued to own a boatload of companies together, didn't actually file for divorce until 2019 -- after the fraud judgment was entered and collection efforts began -- etc. etc.
There's a problem sometimes when the appellate court makes a statement of fact that supports its decision and then remands, and then the party that originally lost below says: "Law of the case! You can't dispute that fact any longer, since the Court of Appeal found it was true" even though what the Court of Appeal really meant so say was that one party said it was true and it might well be true. So you gotta be careful about that.
And maybe the opinion is here, and maybe it's not. Just be careful.
(2) Justice Yegan's opinion makes a joke in the first paragraph. Or a funny reference or whatever. He says: "Blizzard Energy, Inc. [] invested in a tire pyrolysis project in Kansas. A Kansas jury returned a $3.825 million fraud judgment in favor of respondent and against appellant Bernd Schaefers (Schaefers). We are not in Kansas anymore. The fraud judgment was entered in California. The instant appeal flows from the California trial court’s decision to add a judgment debtor pursuant to the “outside reverse veil piercing” doctrine."
Thank you, Dorothy. I admittedly smiled. But I was also thinking that the Kansas courts themselves gotta be really tired of that one. (According to Westlaw, that line's in twenty different opinions, and 70-plus law review articles and the like.)
(3) I made a quick search to find out more about the underlying fraudster, Bernd Shaeffers. Among other things, he was apparently a producer on the the 1984 film version of The NeverEnding Story -- or at least the names, which aren't totally common, are the same; I'm not actually vouching for whether they're the same person or not. Regardless, the reference to that movie reminded me of my favorite lawyer joke from The Simpsons. (Homer wants to file a false advertising suit against an all-you-can-eat seafood place that eventually kicked him out for eating too much, and here's what his classic boob of a lawyer says.) Classic.
Tuesday, November 16, 2021
Argonaut Ins. Co. v. St. Francis Medical Center (9th Cir. - Nov. 16, 2021)
Here's a Ninth Circuit opinion that only the hard core civil procedure geeks will enjoy: Whether the filing of a conditional counterclaim in response to a federal declaratory relief action obviates the district court's common law discretion to decline to exercise jurisdiction over such claims.
Exciting, eh?
Okay, but you know what is exciting about the thing? The attorney for the appellant is from a firm in Minneapolis; not something you see in the Ninth Circuit every day. And the underlying litigation, as well as the oral argument in the Ninth Circuit, was in . . . Hawaii.
Going from snowy Minnesota in February 2021 for a Ninth Circuit oral argument in Hawaii. That does not suck.
Even if, as here, you lose.
Monday, November 15, 2021
Noble v. Superior Court (Cal. Ct. App. - Nov. 10, 2021)
Friday, November 12, 2021
George v. eBay (Cal. Ct. App. - Nov. 12, 2021)
I get it, I get it, I get it: the Court of Appeal is sick and tired of this long-running and oft-appealed serial litigation, and thinks that eBay should win. Moreover, there's a lot to that: the plaintiff does indeed seem to be mostly complaining merely about the nature of the contract to which it agreed.
Mind you, there's a lot for buyers to complain about there; e.g., the fact that eBay pretty much always refunds purchases if the buyer is unhappy for any reason, which very much helps fraudulent buyers and hurts the sellers. But that's largely a reason just to not sell on eBay, which is one's choice. There are other platforms and other ways to sell. The Court of Appeal, understandably, doesn't think that satisfies the legal standards for unconscionability. Moreover, it's tired of seeing this same litigation on behalf of various different eBay buyers again and again.
The thing is this, though: in the process of getting rid of what you think's a meritless lawsuit, you've got to be extra careful not to make bad law. Particularly on appeal.
My thought in this regard relates to how the panel gets rid of a couple of different causes of action -- a tiny fraction, mind you, of the twenty-plus causes of action that plaintiff pleads. Here's what Justice Richman says about those claims:
"The 12th, 13th, and 14th causes of action are styled respectively “Breach of Contract for Hiding Plaintiffs’ Listings,” “Intentional Interference With Prospective Economic Advantage re Hiding of Listings,” and “Deceptive Business Practices in Violation of Business and Professions Code section 17200.” As indicated, all are based on the fundamental premise that eBay hides listings, “secretly,” “completely,” and on a “regularly recurring basis.” As appellants’ brief puts it at one point, eBay allegedly makes certain “listings completely invisible and not capable of being seen by prospective buyers.” . . .
To begin with, at no place do appellants identify any listing on eBay that was made “completely invisible” or “completely hidden.” Their brief does make the conclusory assertions that “all” of their listings were hidden “for a substantial period of time,” and that they “had no chance of selling their items” through the eBay website. But while the SAC alleges “many” listings were hidden, it lacks any allegation regarding any specific listing that could not be found or when the hiding allegedly occurred. Instead, the SAC theorizes that because sales allegedly decreased, listings were hidden, ignoring the innumerable other reasons that would readily explain why their sales may have fluctuated. Such speculation cannot support a viable claim. (Stevenson Real Estate Services, Inc. v. CB Richard Ellis Real Estate Services, Inc. (2006) 138 Cal.App.4th 1215, 1219–1220.) Again, Judge Hernandez’s holding is spot on: “the ‘hidden listing’ allegations remain deficient . . . [w]ithout more specific factual allegations eBay cannot possibly determine whether any listings were actually not displayed (i.e., were ‘hidden’) or if so, why.”
Not only that, facts alleged elsewhere in the SAC undermine the existence of any such practice. For example, plaintiff Cobb alleges he was initially unable to find some of his listings but found them “several days later,” again rebutting plaintiffs’ claims of listings being “completely hidden.” Were all that not enough, appellants’ brief acknowledges that eBay has the “contractual right to downgrade visibility.”
On those bases, the Court of Appeal dismisses, inter alia, the claim for breach of contract.
Let's unpack the various different reasons the Court of Appeal gives for this dismissal.
First, the panel says that the complaint alternatively says that "many" of the listings were hidden, but elsewhere says that "all" of their listings were hidden "for a substantial period of time." Well, okay, that might be a little unclear, but those claims aren't totally contradictory; I presume what they mean is that sometimes, all of their listings were hidden, and that sometimes, only lots of them were hidden. I could easily see that being a breach of contract if true. Plus, last I checked, plaintiffs were permitted to plead in the alternative anyway.
Then Justice Richman says that there's a lack of detail, and that seems to be one of his bigger points: the complaint "lacks any allegation regarding any specific listing that could not be found or when the hiding allegedly occurred." Okay, maybe that's a reason to order a more definite statement, but that's not the basis for dismissing a complaint with prejudice. Plus, since when am I required in a complaint to list every date and item with particularity? If I say in a complaint: "Defendant repeatedly punched me in the face," that states a claim: I'm not required to say how many times, or on what days, or with what instrument, or on what part of my face. We're pretty much all about notice pleading here in the United States -- unlike those stinking English we kicked out back in the eighteenth century -- and rely on discovery to flesh out those details, not the pleadings. Defendant can deny the allegation, or deny it for lack of information and belief, and we move on. That on "omitted details" in this regard is fairly clear; or at least it was before this opinion, which sort of mucks it up in the service of the purportedly good cause of getting this particular case kicked.
Then the Court of Appeal says that claim is deficient because "the SAC theorizes that because sales allegedly decreased, listings were hidden, ignoring the innumerable other reasons that would readily explain why their sales may have fluctuated. Such speculation cannot support a viable claim." That's even an even more severe (and worse) pleading requirement than the Supreme Court created in Tombley and Iqbal -- and that the California courts have (tellingly) rejected. You don't at the pleading stage come up with defenses for the other side sua sponte and kick the complaint on that basis. If the complaint says "Defendant did X and it harmed my business," then that's a factual claim, and you accept it for purposes of a demurrer. Plus, it's WAY plausible that if you in fact hide someone's listings, their sales will go down. Indeed: Duh! Of course they will. If there's an alternative explanation, and eBay can prove that hiding the listings actually made sales go up, or that there's a different explanation, great, they can establish that in an MSJ or at trial. We don't bounce complaints on the pleadings simply because a judge thinks that the damage allegations of the plaintiff are perhaps overstated or come from an alternative source.
Then there's the fourth basis for dismissal: that the "facts alleged elsewhere in the SAC undermine the existence of any such practice. For example, plaintiff Cobb alleges he was initially unable to find some of his listings but found them “several days later,” again rebutting plaintiffs’ claims of listings being “completely hidden.” That's a good example of being perhaps way too one-sided. The complaint says that some listings were hidden for a while. Maybe the listings here were gone for only a couple days, but if that's true, and if the contract requires them to be always visible, then that's a breach -- and the fact that the hidden listings were visible several days later doesn't mean that plaintiff is wrong or has contradicted himself or that something like judicial estoppel or whatever the Court of Appeal thinks it's relying on here permits the dismissal of the complaint. No way.
Which leaves only the final sentence: "Were all that not enough, appellants’ brief acknowledges that eBay has the “contractual right to downgrade visibility.” Okay. Maybe that's a defense, right? But surely we need more than just this hint, no? Let's hear about the contract. Does it really allow eBay to totally hide the listings? If so, great, kick the thing. But we'd need to know the actual terms of the contract -- not merely a five-word snippet from a brief -- analyze how they interact with the other contractual terms, evaluate whether totally removing listings is actually a breach (does it merely "diminish visibility" or do something more serious?), etc.
I'm not saying that plaintiff's got a great breach of contract claim. Maybe it does, maybe it doesn't. But to figure it out, I'd definitely need more than what I have here. More importantly, I definitely don't want litigants or trial courts citing or relying on this case for the propositions for which it facially seems to stand; e.g., that your complaint gets dismissed if you don't provide dates or itemizations, that you get bounced if your complaint doesn't affirmatively negate any possible alternative explanations for how you were damaged, etc. That'd be much worse systemically then anything this tiny little case will ever do to anyone -- particularly if we can get it bounced on the actual merits because it's not a breach since the eBay contract allows this stuff. (Personally, if eBay did, in fact, totally hide someone's listings for absolutely zero reason, I can in fact see that as possibly being a breach -- though I suspect that's not what in fact happened, and that if listings were indeed hidden, it was probably for a reason spelled out in eBay's contract. But, again, that's a matter for discovery or the merits, not the pleadings.)
As they say, bad cases sometimes make bad law.
Especially if you're not careful.
Thursday, November 11, 2021
Haytasingh v. City of San Diego (Cal. Ct. App. - Nov. 11, 2021)
The Court of Appeal's opinion in this case -- from lovely San Diego, and involving our lovely beaches and lovely surf -- came out back in July. Today, the California Supreme Court denies review, but a majority of the justices (four) author a statement concerning the denial of review to urge the Legislature to look at the underlying statute and potentially change it.
That's super rare. It's totally consistent with the Court of Appeal's opinion, in which the justices also told the Legislature that it might well want to take a look. So I suspect it'll have a real impact. (And should.)
But it's definitely something you don't see every day.
(Just like, I'll add, you definitely don't see a justice on the Court of Appeal quote a line from Star Trek's Spock in the opinion, which Justice Dato does in footnote 9 of his concurring opinion.)
Tuesday, November 09, 2021
Kremerman v. White (Cal. Ct. App. - Nov. 9, 2021)
Justice Stratton gets it spot on here. No way the default judgment should have been entered. No way. There simply wasn't proper service.
It's not often you see a landlord-tenant dispute in the Court of Appeal. But then again, this isn't your usual rental. When I was reading the facts, I thought that I was confused, since it talked about a $16,000 yearly rent and a $25,000 security deposit. Why would anyone pay a $25,000 deposit for a rental that only costs roughly $1,500 a month?
Oh, my bad. It's a year-long lease, but it's $16,000 a month. Got it. This is not your ho-hum rental. Even in Studio City.
The other thing that popped into my head was a line in the opinion from the defendant about why she was not at home during one of the various service attempts: "She stated she was out of town during the process server’s third stake-out on May 14, 2019, as she was in New York City to appear on the Wendy Williams show." Oh. The Wendy Williams show, eh? Defendant must be famous (in addition to wealthy).
So I go back and look at the caption. Her name is "Angela White". Never heard of her.
So I hit up Mr. Google. Which -- let just warn you -- has a very NSFW website as its first result.
What I should have done was simply read all the footnotes in the case first. Justice Stratton explains in one of them: "The parties interchangeably refer to appellant as Angela White or Blac Chyna, her professional name. We refer to appellant by her legal last name, White."
Oh. Blac Chyna. Her I've heard about. The whole kid-and-crazy-relationship-with-Rob-Kardashian thing. Plus the modeling and . . . other stuff.
Anyway, Ms. White wins. As she should.
Plus, to be honest, the landlord sounds like a . . . not good person. His name is Michael Kremerman. He rents the place to Ms. White, she re-ups the lease, and then she says she wants to leave early because she's bought a house, and he says, fine, though you'll still owe four months of rent if I'm not able to find someone to rent the place. (The agent's actual words in the email were: “The owner is happy to let [White] out of the contract, but as you may know, she is obligated to pay rent through the term of the lease, or until the Landlord finds new tenants that are willing to pay the same amount that she’s currently paying.”). Cool, that's the law.
Then Ms. White moves out, and the landlord charges Ms. White four months of rent, saying that he was unable to lease the place. (Then he takes her default, and garnishes her bank account.)
But check out what Ms. White's attorney subsequently finds (and presents to the court):
"White included as an exhibit the Zillow history of the Studio City property, which showed that on December 6, 2018, Kremerman listed the property for sale for $4.95 million, and then on December 7, 2018, he listed it for rent for $22,500 per month, “over $6,000 per month more than [White] had paid for rent.” On December 17, 2018, the rental listing was removed. On January 9, 2019, the property was sold; escrow closed on March 5, 2019. White argued “[h]ad [her] former landlord instead listed the [property] for rent . . . for $16,480, he would have been able to find a new tenant very quickly.” She also contended Kremerman improperly sought future unpaid rent for the month of March 2019 when Kremerman “no longer even owned the leased premises” as of March 5, 2019 when escrow closed."
When I hear that, I'm begging to find a way to reverse the default. Which is the right result anyway.
Because, IMHO, the landlord is not un-sleazy.
Monday, November 08, 2021
People v. Revels (Cal. Ct. App. - Nov. 8, 2021)
I've seen (or read about) a lot of weird things happening in court; clients assaulting their lawyers, lawyers going crazy in front of the judge, witnesses freaking out, etc.
But I've never heard of (1) a juror looking like she's fallen asleep (okay, that one happens a lot, but wait for it . . .), (2) the trial judge calling the juror's name four times, still with no response, (3) a doctor who's an expert witness on the stand at the time going over to the juror and checking her out, and then (4) after examining the juror, declaring: "She doesn't have a pulse."
Yikes!
Given the various admonitions and other curative efforts here, the Court of Appeal holds that there was no prejudice in not ordering a mistrial.
Still: Freaky, eh?
P.S. - The juror ended up just fine, thankfully.
Thursday, November 04, 2021
South Coast AQMD v. City of Los Angeles (Cal. Ct. App. - Nov. 4, 2021)
Here's what I was about to write yesterday about this opinion before I ran out of time and had to teach class (and then meet with students afterwards during office hours):
"Here's the first paragraph of this opinion. Can you tell who wrote it?
'A case within a case can arise when a legal malpractice suit accuses lawyers of poor work. The main case is the malpractice suit: were the defendant lawyers’ performances deficient? The case within the case is whether the lawyers’ performances mattered. If the underlying suit on which the lawyers worked lacked merit, then their alleged malpractice could not have had an impact, because the client would have lost anyway. The issue is causation: whether possible malpractice could have caused harm. (See Viner v. Sweet (2003) 30 Cal.4th 1232, 1239–1240.) This appeal follows that pattern.'"
I also had some tangential comments about the merits of the case, but whatever I ran out of time. In any event, merits aside, I was surprised that I was able to figure out who wrote the opinion -- which I scrolled down to right after reading the first paragraph -- even before I looked at the caption to see what district it was from and even before I read anything else.
But then, today, I read this opinion, which had the following opening paragraph:
"A labor union moved to intervene in an environmental dispute about the Port of Los Angeles. The union is the International Longshore and Warehouse Union, Locals 13, 63, and 94 (the Union). The trial court denied the motion because concerns about expanding the case’s scope outweighed the Union’s interest. We will introduce the many actors and events in this multipolar environmental dispute by using the allegations of the petition filed by South Coast Air Quality Management District (the Air District). Then we explain why denying permissive intervention to the Union was proper. Statutory references are to the Code of Civil Procedure."
At which point I thought: "Hmmm. I'm pretty sure I know who wrote this one as well. Same person as yesterday, right?"
And then, when I saw the next paragraph, I was certain of it:
"The Port of Los Angeles is the busiest seaport in the Western Hemisphere. It is critical for U.S. trade with Asia, and there is a lot of trade with Asia."
I honestly can't put a figure on precise why this jurist's writing style is so unique. Sure, in the last of those paragraphs, there's the whole "short, pithy statements of obvious fact that are kind of funny" thing going on, and that's a dead giveaway. But those first paragraphs don't have much of that, yet, still, of the 100+ justices on the Court of Appeal, you can pretty reliably figure out which one is writing stuff like that even from a single paragraph. (Or at least you can after a while, if and when you read every single published opinion over the years.)
Anyway, it's a unique writing style that's not mine, but that (mostly) works for me as a reader.
It's this jurist, by the way. If you didn't already know.