Plaintiffs each own a 2010 Toyota Prius. They signed arbitration agreements with dealerships. The car manufacturer sought to compel arbitration under those arbitration agreements, and the district court denied the request because the manufacturer was a nonsignatory to the arbitration agreements, and because it waived any right to compel arbitration by vigorously litigating the action in […]
$160,000,000 Judgment Tossed In A Trade Secrets Misappropriation Case.
A jury awarded $80,000,000 on a counterclaim in a trade secrets misappropriation case involving two toy manufacturers, and the trial judge added another $80,000,000 in punitive damages. The Ninth Circuit reversed because the counterclaim was not compulsory and should not have been permitted. Even though the counterclaimant lost its damages judgment, it got to keep […]
Eighth Amendment Allegations Sufficient To Proceed Against Prison Authorities.
A state prison inmate brought an action against correctional officers who pepper sprayed him, allegedly when he attempted to explain he was a vegetarian due to his religion, and that he was given the wrong meal. The trial court granted summary judgment to the correctional officers. The Ninth Circuit reversed and remanded based on the inmate’s […]
Plaintiff’s State Law Failure To Warn Claim About A Medical Device Is Not Preempted.
Plaintiff had a pump and catheter surgically implanted in his abdomen to deliver pain relief medication directly to his spine, and he ended up a paraplegic. The opinion states defendant’s device caused the paralysis. The district court concluded plaintiff’s action was preempted by the Medical Device Amendment [MDA] to the Food, Drug, and Cosmetic Act [FDCA] […]
Class Action Against Life Insurance Company Not Precluded.
Plaintiffs purchased life insurance policies. The death benefit payable to survivors varies with the performance of the funds each customer selects. Because the policyholder bears the risk associated with the investments, some federal circuits have held that the policies qualify as securities. Accordingly, the federal trial court dismissed the class action under the Securities Litigation Uniform […]
Lawyer Must Produce Client’s Tax Returns.
Tax returns prepared by an accountant were turned over to the civil tax lawyer for the person being investigated by the IRS. The civil lawyer turned them over to a lawyer for the firm providing representation for the criminal tax investigation. That lawyer turned them over to the partner in charge of the criminal defense. The […]
Real Estate Development Conviction Vis-À-Vis The Clean Air Act.
The CEO of a real estate development company was convicted of violating the Clean Air Act [42 U.S.C. §85.]. In his appeal, he complained about a jury instruction: “You may find that the defendant acted knowingly if you find beyond a reasonable doubt that the defendant: [¶] 1. was aware of a high probability that there […]
Securities Fraud — The Sum Of The Allegations Is Greater Than Its Parts.
A securities fraud complaint alleged false financial adjustments were made to a company’s accounts, and the district court dismissed it for failure to sufficiently allege scienter as to each of the defendants. The Ninth Circuit reversed, noting that viewed in isolation any one allegation may not compel an inference of scienter, but “when we consider the […]
Boy Scouts Only Indirect Or Incidental Aid By A City For Religious Discrimination.
The plaintiffs are adults who are either lesbians or agnostics and who use two parks which are partially leased by the City of San Diego to a nonprofit corporation chartered by the Boy Scouts of America. Plaintiffs allege the leases violate provisions of the California and federal Constitutions relating to the Establishment of Religion and the […]
Statute Of Limitations On Federal Habeas Petition Does Not Apply In Face Of A Credible Claim Of Actual Innocence.
Under the Antiterrorism and Effective Death Penalty Act of 1996 [28 U.S.C. §2241, ff.] a federal petition for habeas corpus must generally be filed within one year from the date that direct review becomes final. (Check the statute for certain exceptions.) But in an en banc opinion, the 9th Circuit ruled that where the petitioner […]
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