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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 district court dismissed plaintiff's complaint without prejudice, acknowledging that amendment might not be futile.  Nevertheless, the district court did not grant leave to amend and entered judgment the same day against plaintiff.  This decision holds that, viewing the record as a whole, the district court intended to end the case, making its dismissal order final and appealable even though… Read More

Bucking the trend and disagreeing with United Talent Agency v. Vigilant Ins. Co. (2022) 77 Cal.App.5th 821, this decision holds that the trial court erred in sustaining the insurer's motion to dismiss this suit seeking coverage under a CGL policy's business interruption coverage for losses sustained by reason of COVID-19.  It reasons that however improbable it may now seem, on… Read More

Recognizing a divergence of opinions on this point, this decision follows Rice v. Crow (2000) 81 Cal.App.4th 725 and Le Parc Community Assn. v. Workers’ Comp. Appeals Bd. (2003) 110 Cal.App.4th 1161 in holding that the bare voluntary pre-trial dismissal of a lawsuit (pursant to settlement with less than all defendants) with prejudice does not result in the “actual litigation”… Read More

The district court erred in certifying a plaintiff class in this case challenging defendant's classification of its property preservation workers as independent contractors and asserting claims for overtime pay and expense reimbursement.  Plaintiffs could not prove fact of damage--not just amount of damage--by common evidence since some class members had not worked overtime or incurred reimbursable business expenses.  The district… Read More

This decision reverses a punitive damage award against a supplier of talc to the manufacturer of Old Spice talcum powder.  Defendant did not contest the jury's verdicts finding that plaintiff contracted mesothelioma from the asbestos in the talcum powder and that defendant was negligent in failing to detect and warn consumers about its presence in the product.  However, there was… Read More

The trial court correctly denied defendant's motion for reconsideration of its order granting the judgment creditor the right to execute on defendants' IRA and ERISA plan interest because the motion failed to cite new facts or law.  However, the trial court then properly exercised its inherent authority to reconsider its order because the reconsideration motion brought to its attention the… Read More

Summary judgment was properly granted to defendant in this 10b-5 suit that came after a dramatic decline in Align's stock price following an abrupt decrease in its sales growth in China.  The abrupt decline in sale growth which came only three months after positive remarks by Align's management and was unexplained by other external events was sufficient to give rise… Read More

The trial court correctly granted defendant summary judgment in this slip-and-fall injury suit in an exercise facility's sauna room.  The release of claims in the fitness center's membership agreement absolved the fitness center of liability for ordinary negligence.  Plaintiff failed to submit evidence creating a triable issue of fact as to gross negligence.  She claimed to have fallen because the… Read More

A PAGA suit is not a class action and need not satisfy Rule 23 requirements, including the requirement of manageability.  In light of PAGA's structure and purpose, imposing a manageability requirement in PAGA cases akin to that imposed under Rule 23(b)(3) would not constitute a reasonable response to a specific problem and would contradict California law by running afoul of… Read More

This decision rejects plaintiff's argument that the PAGA statute violates the state constitution's separation of powers clause because it supposedly allows private citizens to seek civil penalties on the state’s behalf without the executive branch exercising sufficient prosecutorial discretion.  The contention is barred by Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348, 360 which held that “PAGA… Read More

Plaintiff was a nurse, employed by a staffing company, on temporary assignment to a hospital run by defendant.  Plaintiff brought separate class actions against the staffing company and the hospital for wage and hour violations.  This decision holds that the settlement and dismissal of plaintiff's suit against the staffing company did not end or preclude her suit against the defendant. … Read More

Another employee of the same defendant employer is not entitled to intervene as of right in a PAGA suit brought by a different employee of that employer in order to challenge the settlement to which the latter employee and the employer have agreed.  To intervene as of right under FRCivP 24(a)(2), a party must show (among other things) that his… Read More

The trial court erred in granting defendant school district summary judgment.  Plaintiff, a student at the district's high school was stabbed by third person when following after school sports practice, she briefly visited a Starbucks and then returned to the high school to recover her books from her school locker.  The brief diversion to Starbucks did not interrupt the school's… Read More

The trial court did not abuse its discretion in denying defendants' motion to disqualify plaintiff's outside counsel firm, Pillsbury, on the ground that Pillsbury had hired two attorneys who eight years before had been associates at Sedgwick and while there had represented some of the defendant insurers in other coverage disputes involving different insureds.  Defendants' evidence failed to show that… Read More

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