California Appellate Tracker

Under the FCRA, a furnisher of credit information must make a reasonable investigation if the consumer about whom it furnishes information to a credit reporting bureau properly protests the inaccuracy of the furnisher's information.  Furnishers, unlike credit reporting agencies, may be required to investigate the legal as well as factual bases of the information it furnishes.  Here, CitiMortgage continued to… Read More

A Delaware corporation's bylaw requiring any shareholder derivative suit be brought in Delaware Chancery Court is enforceable.  Such a forum selection clause does not offend any federal statute or public policy. Read More

CCP 340.3(a) lengthens the statute of limitations for suing a defendant convicted of a felony for the wrongful act on which the plaintiff sues.  This decision holds that section 340.3(a) does not lengthen the statute of limitations for suits against those vicariously liable for the felon's wrongful act, such as his employer in this case.  The decision also holds that… Read More

Under 28 USC 1782, a party to a proceeding in a foreign court may petition a district court to compel a deposition or production of documents from a resident of the district for use in the foreign proceeding.  This decision holds that since the only relief sought in such a proceeding is an order compelling discovery, a magistrate judge may… Read More

When a nonexempt lender charges more interest than is allowed under Cal. Const. art. XV, sec. 1, the interest provisions of the loan agreement are unenforceable.  The principal amount of the loan is deemed due on the maturity date of the loan, and all payments on the loan before then are credited against principal.  However, if the loan is not… Read More

An insurer is not required to appoint Cumis counsel when it accepts its insured's defense without a reservation of rights but, for premium purposes only, decides that the insured is the at-fault driver in the accident and so increases his premium for future years' coverage. Read More

This decision holds that B&P Code 7031 prevents a licensed general contractor from obtaining compensation for work done by an unlicensed subcontractor (here, a tree-trimming contractor). Read More

This decision reverses a summary judgment for defendant, finding a triable issue of fact as to whether defendant willfully violated the FCRA's requirement that an employer provide a job applicant a stand alone disclosure of its potential use of credit reports for employment screening.  (15 USC 1681b(b)(2)(A).)  Wilful for this purpose includes reckless conduct that increases the risk of violation… Read More

Though recognizing a conflict between Court of Appeal decisions on the subject, this opinion sticks with Housing Group v. Superior Court (1994) 24 Cal.App.4th 549 in holding that a good faith settlement determination under CCP 877.6 may only be attacked by petition for extraordinary writ, not by appeal from the final judgment in the case. Read More

Under the out-of-pocket loss rule for fraud damages, a purchaser cannot recover the purchase price as consequential damages.  However, in applying the out-of-pocket loss rule, the trier of fact is not limited to considering the market value of the product or service on the date it was purchased, but may also consider post-sale evidence that bears on its market value… Read More

Assuming that it is unconstitutional to award statutory penalties for the same wrongful conduct that is also a basis for a punitive damage award, this decision holds that the jury's award of punitive damages for fraud and statutory double damages under the Song-Beverly Act did not offend that rule.  The punitive damages were for misrepresentations that induced purchase of the… Read More

Under Evid. Code 1222, authorized admissions are an exception to the hearsay rule.  This decision holds that the exception applies to any authorized statements by an agent or employee, whether made to third parties or to other agents or employees of the same principal.  It also holds that under Dart Industries, Inc. v. Commercial Union Ins. Co. (2002) 28 Cal.4th… Read More

Following Berroteran v. Superior Court (2022) 2021 Cal. LEXIS 8418, this decision holds that the trial court did not abuse its discretion in admitting testimony by Ford witnesses given in depositions in a class action involving defects in the same model truck as plaintiff sued on.  Plaintiffs were not parties to the class action since the class was not certified… Read More

Under 46 U.S.C. 30511(c), a shipowner may sue to limit its liability for claims to the value of the vessel and any pending freight so long as the shipowner sues for that relief within 6 months after a claimant gives the shipowner written notice of a claim.  To trigger that six-month limitations period, the claimant's "written notice of a claim”… Read More

Under St. Agnes Medical Center v. Pacificare of California (2003) 31 Cal.4th 1187, a court cannot hold that the defendant waived the contractual right to arbitrate solely by delayed assertion of that right, absence a showing of prejudice by the opposing party.  Here, defendant waited 13 months after plaintiff filed suit to move to compel arbitration and took plaintiff's deposition… Read More

California Health & Safety Code 25982 bans the sale in California of foie gras produced by force feeding geese.  The law is not preempted by the federal Poultry Products Inspection Act.  Even assuming that the USDA has exercised its authority under PPIA to require that foie gras be produced by fore feeding geese, California's statute does not conflict with federal… Read More

While an easily correctible defect is not a disability protected under the Americans with Disabilities Act, a disability need not be permanent or long-term to be protected.  Here, the employee adequately alleged an ADA claim against her former employer by pleading facts plausibly establishing that she had a physical impairment both during an immediate post-surgical period after a bone biopsy… Read More

Amato violated Riverside County's local rule about filing jointly prepared pretrial statement  witness and exhibit lists, and jury instructions the first day of a jury trial or before.  As a result, the trial court held that Amato had waived his right to a jury trial, and after hearing his evidence, granted a motion for judgment under CCP 631.8.  This decision… Read More

One union representing some of Antioch's employees brought an administrative grievance making the same claim as the retired employee plaintiff brought in this later suit--that the City was stinting them on contributions for their benefit to CalPers,  This decision holds that the due process limits on collateral estoppel keep it from operating to bar the current suit based on the… Read More

Plaintiff served a notice of levy on Zions' agent for service of process, Corporation Service Company (CSC), attempting to levy on funds the judgment debtor held in two bank accounts at Zions.  CSC rejected the levy because someone had underscored, by hand, the name of a corporate defendant in the caption of the notice of levy.  CSC thought that was… Read More