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Civil Procedure

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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The communicable disease extension of the comprehensive property insurance policy that Fireman's issued to Amy's provided coverage for the costs of remediating, cleaning, disinfecting, etc. the premises after a communicable disease event, defined to mean  “an event in which a public health authority has ordered that a location be evacuated, decontaminated, or disinfected due to the outbreak of a communicable… Read More

Following Sonner v. Premier Nutrition Corp. (9th Cir. 2020) 971 F.3d 834, this decision holds that even in a diverity case, a federal court may exercise equitable jurisdiction only if the plaintiff has no adequate legal remedy.  Here, plaintiff's remedies under the UCL were all equitable, and the federal court lacked equitable jurisdiction over them because the CLRA offered the… Read More

Though it did most other things right, the district court erred in expressly employing the wrong standard to decide whether the class action settlement in this case was fair, just, and equitable.  In a pre-certification settlement, like this one, the district court may not presume the settlement is reasonable but must instead exercise heightened scrutiny.  Application of the wrong standard… Read More

The district court correctly dismissed this suit on claim preclusion grounds.  A different environmental advocacy group had earlier brought suit in Oregon challenging the same Fish & Wildlife plan for bull trout.  The Oregon district court dismissed the complaint with leave to amend.  The plaintiff elected not to amend, instead appealing unsuccessfully.  Then the current plaintiff sued to challenge the… Read More

This decision reverses a judgment for the employee in a suit for unpaid overtime wages because of a botched special verdict question regarding the employer's affirmative defense that the employee was an exempt executive under Wage Order No. 5.  The question asked only if the employee spent more than 50% of her time on exempt duties.  The question overemphasized the… Read More

Under CCP 473(d), a court may correct a clerical error in a judgment at any time.  This decision holds that the trial court properly invoked that authority to correct the renewal of a judgment.  The original judgment had been against Audrey Douglas in her capacity as administrator of Billy Joe Douglas' estate.  The judgment creditor's application for renewal of the… Read More

This decision holds that the insured's original complaint failed to allege a covered business interruption loss due to COVID-19 stay-at-home orders.  However, it also holds that it was error to deny the insured leave to amend since the demurrer had been sustained to the insured's original complaint, the insured requested leave to amend and described in some detail what additional… Read More

Following Arroyo v. Rosas (9th Cir. 2021) 19 F.4th 1202, this decision affirms the district court's order declining supplemental jurisdiction over Unruh Act claims in this disability discrimination case.  California's procedural restrictions on disability discrimination suits under Civ. Code 52(a) and 55.56 are an exceptional circumstance warranting the refusal to exercise supplemental jurisdiction (which would allow plaintiffs the chance to… Read More

Under CCP 1987.2, a party that moves to quash a subpoena for that party's personal identifying information may recover attorney fees upon demonstrating (i) he prevailed on the motion to quash, (ii) the underlying action arises from the party's exercise of free speech rights on the Internet, and (iii) the plaintiff in that proceeding did not make a prima facie… Read More

The trial court erred in granting defendant summary judgment based on expiration of the statute of limitations (CCP 340.5) in this medical malpractice case arising from a stillbirth following an operation to turn the fetus to a head-down position for birth.  There was a question of fact as to whether plaintiff subjectively suspected malpractice the day before delivering the stillborn… Read More

Patients sued medical group after the group suffered a data breach that allowed hackers access to personal indentifying information concerning patients, including SSNs and medical histories.  This decision holds that the patients have UCL standing to sue.  Under their "benefit of the bargain" theory, the patients suffered a loss of money by purchasing the medical group's services which (a) weren't… Read More

Pinkert established a donor advised fund at Schwab, allowing him to take current year tax deductions for charitable donations that were not distributed until later.  He sued Schwab for charging excessive fees to the fund and for mismanaging it, both of which decreased the amounts ultimately distributed to charities.  This decision holds that Pinkert lacked Article III standing as he… Read More

During construction of a development in South Lake Tahoe, a worker for a subcontractor slipped on an icy floor, falling from a ladder and injuring himself.  This decision holds that the trial court granted defendant summary judgment based on the Privette doctrine which bars claims by an injured worker for an independent contractor against the hirer of that contractor.  This… Read More

This decision holds that under Civ. Code 9564 (providing for attorney fees in suits on construction surety bonds) and CCP 1032, the prevailing party is entitled to recover attorney fees and costs even if that party has been represented at no cost to that party--as here, the prevailing surety's defense was paid under by the construction contractor-principal on the bond… Read More

This decision holds that CRC 2.259(c) and 8.77(d) both apply to excuse late filing of notices of appeal in appropriate circumstances.  Rule 2.259(c) requires a court to deem a document filed on the day of the attempted filing if a technical problem with the court's filing system prevents the filing.  Rule 8.77(d) allows a court to deem a document filed… Read More

In this case, ZF sued TAT claiming that the director TAT appointed to ZF's predecessor, ZF Micro Devices, intentionally destroyed that corporation by disparaging its management and working behind the scenes to undermine its efforts to obtain funding.  This decision holds that ZF's claim is legal and must (at ZF's demand) be tried to a jury.  A director's duty to… Read More

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