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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 first trial of this case resulted in a jury verdict for defendant on all seven of plaintiff's claims.  The trial court granted plaintiff a new trial on three of her claims.  The second trial resulted in a verdict for plaintiff on all three of those claims.  This decision holds that the jury verdicts on the four claims that were… Read More

Under the Rest.2d Conflicts of Law's most significant relationship test, the law of the state of incorporation governs a directors and officers liability policy rather than the law of the state where the corporate headquarters are located.  The state of incorporation's law governs the directors' and officers' duties to the corporation, so it is logical that the same state's law… Read More

Under CCP 708.410, a judgment creditor may obtain a lien on the judgment debtor's right to obtain any money under a judgment, order or decree in any other action in which the judgment debtor is a party.  This decision holds that the lien under sectin 708.410 attaches to money owed the judgment debtor under an order requiring the other party… Read More

In a construction dispute that originally was over $22,096, the trial court did not abuse its discretion in awarding plaintiff only $90,000 in attorney fees out of the $292,140 requested.  The case was relatively simple, ultimately turning on the contractor's lack of a license and proper insurance.  It involved only money, so it was reasonable to compare fees against recovery… Read More

Threatening or filing suit on a time-barred debt is a misleading and unfair debt collection practice violating 15 USC 1692e and 1692f.  To allege and prove a violation of those sections, the debtor need not allege or prove that the debt collector knew the debt was time-barred.  However, the debt collector may be able to establish an affirmative defense of… Read More

It is not per se a breach of the insurer's duty of good faith for it to fail to accept a reasonable settlement offer within policy limits.  Accordingly, to support a bad faith judgment against the insurer, the jury must find that the insurer acted unreasonably in rejecting (or failing to accept) even a reasonable settlement offer within policy limits. … Read More

A request for nominal damages satisfies the redressability element of standing where a plaintiff’s claim is based on a completed violation of a legal right.  For the purpose of Article III standing, nominal damages provide the necessary redress for a past, completed violation of a legal right. Read More

Ordinarily, a judgment dismissing a case on the ground that the court lacks subject matter jurisdiction over is not a judgment on the merits and does not operate as res judicata.  However, in the unique context of the Federal Tort Claims Act, the court has subject matter jurisdiction only if the complaint plausibly alleges all six elements of an FTCA… Read More

A proper 998 settlement offer must include a provision that allows the opposing party to accept the offer by signing a statement that the offer is accepted.  A purported 998 offer lacking that provision cannot be used to shift costs if it is not accepted.  (Puerta v. Torres (2011) 195 Cal.App.4th 1267.)  This decision holds that the deficient offer also… Read More

Judgment for defendant is reversed.  Plaintiff alleged that defendant sold plaintiff his membership interest in the LLC, which held a business tax registration certificate for selling marijuana in L.A., but after doing so secretly converted the LLC into a corporation of which he was the sole owner.  The individual plaintiff had standing to sue for loss of her membership interest… Read More

The dormant Commerce Clause does not prohibit California from applying its labor laws to airline employees who reside or are employed predominantly in California.  The airline's block time method of computing pay was similar to the pay scheme approved in Oman v. Delta Air Lines, Inc. (2020) 9 Cal.5th 762, and so did not offend California Labor Code guarantees of… Read More

A defendant can be held liable for negligent misrepresentation on two disparate theories.  First, under Rest.2d Torts section 311, a defendant may be liable for negligent misrepresentation in endorsing a product that physically harms the plaintiff.  (See Hanberry v. Hearst Corp. (1969) 276 Cal.App.2d 680.)  Here, plaintiff suffered no physical injury and so couldn't rely on that theory to pursue… Read More

The federal Poultry and Poultry Products Inspection Act (21 U.S.C. §§ 451 et seq.) expressly preempts state laws that impose different or additional labeling requirements to the labels approved by the Secretary of Agriculture under the PPIA.  (21 U.S.C. 467e.)  This decision holds that the federal statute preempts any state law claim that the federally approved label for a poultry… Read More

Having secured a default judgment against the contractor that build a retaining wall on adjacent property which collapsed damaging plaintiff's property, plaintiff sued the contractor's general liability insurer.  This decision holds that the trial court erred in entering summary judgment in the insurer's favor.  The insurance policy was an occurrence policy.  With a continuing loss, coverage attaches when the damage… Read More

Following n Hill v. Superior Court (2016) 244 Cal.App.4th 1281 and Kerley v. Weber (2018) 27 Cal.App.5th 1187, and disagreeing with Levin v. Winston-Levin (2019) 39 Cal.App.5th 1025, this decision holds that double damages may be awarded under Probate Code 859 without a finding of bad faith if the defendant has taken or concealed property of a dependent adult, a… Read More

Plaintiff contracted mesothelioma, allegedly from asbestos-concrete pipe manufactured by defendant, a successor to Johns Manville's asbestos-concrete business.  A $15 million punitive damage award is reversed for lack of evidence that an officer, director or managing agent of defendant acted with malice, oppression or fraud or authorized or ratified any conduct.  Romo v. Ford Motor Co. (2002) 99 Cal.App.4th 1115 doesn't… Read More

Brown, a teacher, complained that the electro-magnetic waves emanating from the new wi-fi system installed in her school caused her chronic pain, headaches, nausea, itching, burning sensations on her skin, ear issues, shortness of breath, inflammation, heart palpitations, respiratory complications, foggy headedness, and fatigue.  She reported her symptoms to the school, which initially gave her the option of having it… Read More

A PAGA suit under Lab. Code 2988 may be brought against the employer in any county in which an aggrieved employee worked and a Labor Code violation was allegedly committed.  The private plaintiff need not bring the action in the county in which he worked or where the violations against him occurred. Read More

A release that ratepayers were required to sign in order to obtain a partial rebate of illegal water charges was enforceable.  The city did not fraudulently conceal facts from ratepayers.  Its FAQs said the partial refund was due to the statute of limitations barring claims for any greater refund and revealed that the overcharges had been assessed for a longer… Read More

The Ninth Circuit applies the abuse of discretion standard of review to review a summary judgment in a trademark infringement case if the summary judgment is granted on equitable grounds such as unclean hands, laches or acquiescence. Read More

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