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Stay of Proceedings

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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In re PG&E Corp. Sec. Litig.(9th Cir 2024) 100 F.4th 1076

A district court has inherent authority to stay before it, pending resolution of independent proceedings which bear upon the case.  The stay order is reviewed for abuse of discretion. When deciding whether to issue a docket management stay, the district court must weigh: (1) the possible damage which may result from the granting of a stay; (2) the hardship or… Read More

In re PG&E Corp. Sec. Litig. (9th Cir 2024) 100 F.4th 1076

A stay order entered by a district court is appealable as a final judgment under 28 USC 1291 if it effectively places the plaintiff out of court.  An indefinite stay to be ended only upon the occurrence of an external event that is not time delimited.  If the stay lasts 18 months or longer, the stay is not automatically appealable,… Read More

Mattson Technology, Inc. v. Applied Materials, Inc. (2023) 96 Cal.App.5th 1149

The trial court correctly denied Mattson's motion to compel arbitration of Applied's suit against it for violation of the Uniform Trade Secrets Act. Mattson had hired Lai away from Applied.  Lai's employment agreement with Applied contained an arbitration clause.  Mattson was not a party to that contract and could not enforce it on a equitable estoppel basis since Applied's claim… Read More

Forrest v. Spizzirri, No. 22-16051, 2023 U.S. App. LEXIS 6284 (9th Cir. Mar. 16, 2023)

Although the FAA (9 USC 3) appears to require a district court to stay pending court proceedings when it compels arbitration, binding 9th Circuit precedent holds that, instead, a district court may dismiss the litigation if it compels arbitration of all claims raised in the case.  See Johnmohammadi v. Bloomingdale’s,Inc., 755 F.3d 1072, 1074 (9th Cir. 2014).  The two-judge concurrence… Read More

State of Cal. ex rel. Sills v. Gharib-Danesh, No. B312459, 2023 Cal. App. LEXIS 134 (Ct. App. Feb. 27, 2023)

Under the state's False Claims Act and Insurance Frauds Prevention Act, a qui tam plaintiff must file the complaint under seal and send it to the Attorney General or Insuance Commissioner and district attorney.  Only after those entities decide not to intervene and take over prosecution of the action may the plaintiff serve the defendant(s) and proceed to litigate the… Read More