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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 trial court properly admitted HP's expert's lost profits opinion.  Unlike the plaintiff in Sargon Enterprises, Inc. v. University of Southern California (2012) 55 Cal.4th 747, HP was an established business.  The expert had based his opinion on HP's past performance data and considered multiple variables including new product offerings by competing manufacturers.  The expert's projection of lost profits five… Read More

Oracle breached its contract with HP by announcing that its next product releases would not be compatible with HP's Itanium computers.  Following the first phase of trial in this case, the trial court concluded that the parties' contract required Oracle to offer Itanium-compatible versions of its product releases.  Oracle then announced that it would release Itanium-compatible versions, but also announced… Read More

To settle disputes that arose from Oracle's hiring HP's former CEO, the two signed a settlement agreement containing a "reaffirmation" clause that  stating each company’s commitment to their strategic relationship and support of their shared customer base, and that Oracle "“will continue to offer its product suite on HP platforms.”  This lengthy opinion holds that the quoted words committed Oracle… Read More

This decision contains a lengthy discussion of requirements contracts and how they should be interpreted.  The only appealed issue was the amount of damages that plaintiff should recover for the defendant's breach of the contract.  The trial court had limited damages to a three month period before trial; whereas, the plaintiff sought damages for the entire period after the defendant… Read More

Under 9 USC 4, the district court must hold a summary jury trial if a party timely demands a jury and the district court finds, on a motion to compel arbitration, that there are disputed issues of fact as to whether the plaintiff entered into or is otherwise bound by an arbitration clause.  Here, the district court so found, but… Read More

Distinguishing Law v. Siegel (2014) 134 S.Ct. 1188, this decision holds that a bankruptcy court may apply claim and issue preclusion doctrines to bar later assertion of exemptions it has already denied.  Here, Albert claimed two exemptions when she originally filed her Chapter 13 petition.  A creditor objected, and the bankruptcy court denied the exemptions.  Albert failed to appeal.  Later,… Read More

Under 28 USC 1367(d), an applicable state statute of limitations is tolled for a period of 30 days after the claim is dismissed from a federal lawsuit on the ground that the district court declines to exercise jurisdiction over the case.  This decision holds that the 30 day period does not begin to run on entry of the judgment of… Read More

Gov. Code 12965(b) is an exception to the normal cost provisions of CCP 1032.  Hence, when, as in this case, the plaintiff loses her FEHA claims but prevails on other claims, she is not entitled to recover costs incurred solely in relation to the FEHA claims.  Also, since the total recovery in this case was less than the amount that… Read More

11 USC 108(c) extends time limits (such as statutes of limitation) for actions against the debtor until 30  period after the automatic stay in bankruptcy is vacated.  This decision holds that 108(c) extends the 10-year period in which a judgment creditor may apply for renewal of the judgment under CCP 683.130.  The majority opinion also disagrees with In re Lobherr… Read More

The federal Poultry Products Inspection Act (21 U.S.C. § 467e) preempts Webb's state law claims that Trader Joe's labels are misleading in stating that they contain less than 5% retained water.  Under the PPIS, a poultry products producer must file with the Food Safety and Inspection Service a proposed protocol for measuring retained water.  Unless the FSIS objects within 30… Read More

California follows Rest.2d Torts sec. 920 in allowing a reduction of a plaintiff's damages if the defendant's tortious conduct has conferred a special benefit on the plaintiff as well as damaging the plaintiff.  But the reduction is permitted only to the extent it is equitable to reduce damages.  In weighing the equities, the court can consider not only whether the… Read More

Under the recently revised Rule 23(e)(2) requires a district court to consider, in determining whether to approve a class action settlement, not only the adequacy of the relief in light of the risks of litigation, but also the effectiveness of the proposed means of distributing the settlement and the terms of any proposed award of attorney fees.  This decision holds… Read More

Federal courts lack Article III jurisdiction over portions of a PAGA suit that attack alleged wage and hour regulations which did not injure the named plaintiff.  A PAGA suit does not fall within the qui tam action exception to the ordinary Article III requirement that the plaintiff has sustained injury from the wrong he sues to redress.  Unlike a traditional… Read More

Plaintiff is a medical doctor specializing in pain management.  CVS, a pharmacy, informed him it would no longer fill his patients' prescriptions, citing conerns he was over-prescribing controlled substances.  Plaintiff sued for an injunction directing CVS to fill his prescriptions.  Held, injunction properly denied.  The State Board of Pharmacy has primary jurisdiction over the issues in this litigation.  It enforces… Read More

Under Gov. Code 821.6, a public employee is immune from liability for instituting or prosecuting a judicial or administrative proceeding.  That immunity extends to investigation activities that precede a potential judicial proceeding.  This decision holds that the immunity applies to policemen who investigate a crime scene.  So plaintiff cannot recover from the police or their public employer for the emotional… Read More

Under Fed. R. App. 39(a), the Court of Appeals determines which party is the prevailing party entitled to an award of costs on appeal, and it may, in its discretion, order that the prevailing party recover only some of the normally awardable costs on appeal.  Under Fed. R. App. 39(e), costs for preparing and transmitting the record and appellate transcripts… Read More

BMW sent plaintiff a 998 offer, proposing to settle this personal injury case for $15,000 in exchange for a general release.  The 998 offer did not mention entry of judgment against BMW or specify that plaintiff would file a dismissal with prejudice instead.  Plaintiff accepted the offer.  Then the parties disagreed about terms of the release and entry of judgment. … Read More

This decision holds that a suit filed by the decedent's heirs under CCP 377.32 was timely since it was filed within the limitations period even though the heirs didn't file the required declarations until after the limitations period expired and even though after probate proceedings were begun on the decedents' estates, the complaint was amended to name as an added… Read More

A defendant may challenge an order denying his forum non conveniens motion on an appeal from a final judgment even though CCP 418.10 allows a petition for writ of mandate from the order, just as it permits such a petition from denial of a motion to quash the summons for lack of personal jurisdiction.  But unlike the personal jurisdiction objection… Read More

Molfetta was White's criminal defense lawyer.  After White was convicted, he requested Molfetta's files so he could prepare habeas corpus petitions.  Molfetta failed to turn over the files.  While some of the files were confidential and could not be turned over, most were not and should have been timely provided once White requested them.  While condemning Molfetta's actions, this decision… Read More

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