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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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Under 28 USC 1367(c)(4), the district court may decline jurisdiction of state law claims  if in extraordinary circumstances there are compelling circumstances for declining jurisdiction.  This decision affirms the district court's ruling that there were extraordinary circumstances in this ADA, physical barriers case, because California's Legislature had amended Civ. Code 52(a) and 55.56 to discourage repeat litigation by a small… Read More

Oakland lacked standing to bring a price-fixing antitrust claim against Oakland Raiders and other NFL teams arising out of the Raiders' move to Las Vegas.  A finding of antitrust standing requires a balancing of the nature of the plaintiff’s alleged injury, the directness of the injury, the speculative measure of the harm, the risk of duplicative recovery, and the complexity… Read More

In ruling on a motion for approval of a settlement of a PAGA claim, the trial court should apply the "fair, adequate and reasonable" standard applied to approval of class action settlements. Because many of the factors used to evaluate class action settlements bear on a settlement’s fairness—including the strength of the plaintiff’s case, the risk, the stage of the… Read More

Disagreeing with Turrietta v. Lyft, Inc. (2021) 2021 Cal. App. LEXIS 815, this decision holds that the plaintiff in one PAGA action is sufficiently aggrieved by an unfair settlement of a different plaintiff's parallel PAGA suit to have standing to appeal from the judgment following approval of settlement in the other action--so long as the appellant became a party to… Read More

The trial court did not abuse its discretion in awarding costs against plaintiff under CCP 2033.420 for having denied defendant's requests of admission regarding the breach of oral promise claim alleged in the complaint.  The evidence at trial showed that plaintiff could not have maintained a good faith belief, at the time he denied those requests, that he would prevail… Read More

The trial court abused its discretion in dismissing this action as a sanction under CCP 128.7 on the ground that there was no reasonable ground for thinking it was not barred by the statute of limitations.  The action sought to quiet title to the property that the plaintiff had purchased in 2008 with knowledge of prior agreements purportedly assigning "coverage… Read More

A breach of contract is not "wrongful conduct" sufficient to support a claim for interference with prospective economic relationships.  Here, plaintiff narrowed its claim to interference based on the defendant's breach of a nondisclosure agreement.  Held, the trial court erred in submitting that claim to the jury since it was the court's responsibility to determine whether the alleged conduct was… Read More

The trial court correctly excluded most of a declaration by Synchrony Bank's litigation assistant which attempted to show that plaintiff had agreed to the arbitration provision of the bank's credit card agreement.  Though the declaration attached copies of account statements and different versions of the credit card agreement containing the arbitration clause, it did not attach any record showing the… Read More

This decision affirms a demurrer to numerous claims by sellers against eBay for various charges and other policies it enforces against them under its user agreement.  Although the user agreement is an adhesion contract, the decision holds that it and eBau's policies are published on its website, and though they are lengthy, sellers are under no time pressure to agree. … Read More

Plaintiff insured's losses due to COVID-19-related restrictions on its business were not covered by the business interruption insurance policy defendant had issued to it.  To be covered, the business interruption had to result from physical loss of or damage to property at the insured location. Instead, the business interruption resulted from county closure orders that were issued due to the… Read More

This decision dismisses as moot a suit that a taxpayer brought seeking to enjoin a program for granting emergency aid to undocumented aliens in California during the COVID pandemic.  The program proceeded while the case was pending.  All the program's money was spent.  There is no way to get the money back and no realistic threat that the program will… Read More

A district court may decline jurisdiction over an action that seeks only declaratory relief, so long as the district court properly considers the factors listed in Brillhart v. Excess Ins. Co. (1942) 316 U.S. 491 and Government Employees Ins. Co. v. Dizol (9th Cir. 1998) 133 F.3d 1220.  However, the district court cannot decline jurisdiction if the declaratory relief claim… Read More

This decision affirms a summary judgment for the employer in a FEHA disability discrimination case.  The employer met its McDonnell Douglas burden of proving a nondiscriminatory reason for terminating the plaintiff; namely, her chronic absenteeism and failure to document dispensing of prescription medicine properly.  Plaintiff didn't produce any evidence showing the employer's reason was pretextual.  Though the employer had misclassified… Read More

Under Civ. Code 3360 and applicable California decisions, a plaintiff who proves that defendant breached a contract is entitled to an award of nominal damages even if the plaintiff is unable to prove actual damages caused by the breach.  (Sweet v. Johnson (1959) 169 Cal.App.2d 630, 632.)  Two 9th Circuit opinions stating that breach of contract claims are not actionable… Read More

Defendant's $200,000 998 offer was clear, not ambiguous, and was enforceable when plaintiff recovered less than $200,000--even though the offer did not refer to the workers’ compensation lien and state whether settlement proceeds could be used to recoup the lien.  Absence of a reference to the workers' comp. lien didn't render the offer uncertain or invalid.  A party making a… Read More

The trial court did not abuse its discretion in denying plaintiff a new trial on the ground of jury misconduct.  During deliberations one juror said that they were not to consider insurance, a worker's comp. lien was insurance, and since workers comp. had already paid for the plaintiff's medical treatment, the jury shouldn't award damages for those medical expenses.  The… Read More

Under the Knox-Keene Act, health care plans must reimburse out-of-contract hospital for emergency services provided to plan members at the reasonable and customary value for those services (in the absence of a contract setting another rate).  A hospital may sue a health plan in quantum meruit if if thinks the health plan has paid less than the reasonable and customary… Read More

The trial court did not abuse its discretion in denying the longshoremen's union permissive intervention in this multi-sided litigation over an environmental impact report for the China Terminal which handles 17% of the cargo at the Port of Los Angeles.  In ruling on a motion for permissive intervention, a court considers four factors:  1. whether the intervener has followed proper… Read More

This decision reverses a summary judgment in a disability discrimination case under FEHA.  Plaintiff presented sufficient evidence to support a prima facie case that he could perform the essential duties of a job with or without accommodation and that he was treated differently from other employees because of his disability. Defendant's showing of a legitimate, nondiscriminatory reason for plaintiff's discharge… Read More

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