California Case Summaries

Litigation

Primary practice area

California Supreme Court, Administrative Law, Litigation

In re Spielbauer — California Supreme Court Orders Attorney Restitution to Non-Client Fraud Victim

The California Supreme Court held that a restitution order is appropriate in attorney discipline cases where an attorney's intentional, fraudulent misconduct caused direct financial harm to a non-client, correcting a State Bar Court misreading of prior precedent that had treated tort-based damages to non-clients as categorically excluded from restitution.

California Supreme Court, Civil Procedure, Litigation

Maniago v. Desert Cardiology Consultants — Voluntary Dismissal Forfeits Right to Appeal Adverse Pretrial Rulings

The California Supreme Court held that when plaintiffs voluntarily dismiss their action before any of their claims have been finally resolved by the trial court, the dismissal terminates the action and forfeits the right to appeal — it does not create an appealable judgment even if the stated purpose was to expedite review of adverse pretrial rulings.

Ninth Circuit Court of Appeals, Banking & Finance, Civil Procedure, Litigation

Relator LLC v. Erskine — Ninth Circuit Revives PPP Fraud Whistleblower Suit, Holds Mortgage Company’s Own Website Is Not “News Media” Under False Claims Act

The Ninth Circuit reversed dismissal of a False Claims Act qui tam suit alleging PPP fraud by a California mortgage company, holding that a NAICS industry code alone does not publicly disclose fraud and that a company's own website does not qualify as 'news media' for purposes of the Act's public disclosure bar.

1st District Court of Appeal, Civil Procedure, Litigation, Personal Injury & Tort

Wilkins v. Cruise, LLC — Autonomous Vehicle Company’s Sign-In Wrap Agreement Enforces Arbitration Clause Against Injured Rider

California's First District Court of Appeal reversed a trial court that had refused to compel arbitration, holding that Cruise's mobile app sign-in screen gave an injured employee-rider sufficiently conspicuous notice of the arbitration clause in its Terms of Service, and that GM's related corporate entities were not "third parties" under the CCP §1281.2(c) exception.

Ninth Circuit Court of Appeals, Business Transactions, Intellectual Property, Litigation

Comet Technologies USA v. XP Power — Ninth Circuit Vacates $40 Million Trade Secret Verdict Over Burden-of-Proof Error

The Ninth Circuit vacated a $40 million jury verdict for semiconductor component maker Comet Technologies and ordered a new trial after finding that the district court erroneously placed the burden of proving "ready ascertainability" of alleged trade secrets on XP Power rather than on Comet, in violation of the federal Defend Trade Secrets Act.

4th District Court of Appeal, Civil Procedure, Litigation, Personal Injury & Tort

Victor Valley Union High School District v. Superior Court — School District Immunity Turns on Where Negligence Occurred, Not Where Student Was Harmed

The Fourth District Court of Appeal clarifies that a school district’s immunity under Education Code section 44808 depends on where the district’s negligent act occurred — not where the student was ultimately injured — overruling two of its own prior decisions in the process.

Ninth Circuit Court of Appeals, Civil Procedure, Litigation

Price v. Diab — ADA Plaintiff Who Wins Accessibility Injunction via Default Judgment Is a “Prevailing Party” Entitled to Attorney’s Fees

The Ninth Circuit holds that an ADA plaintiff who obtains a default judgment and injunction requiring a Fontana Family Dollar to fix accessibility barriers is a “prevailing party” entitled to seek attorney’s fees — even though the injunction only requires what federal law already mandates.

Ninth Circuit Court of Appeals, Civil Procedure, Immigration, Litigation

Menjivar-Ayala v. Blanche — Ninth Circuit Holds BIA Must Consider Ineffective Assistance Claim Even When Attorney’s Failure Occurred Before a Different Court

The Ninth Circuit holds that the Board of Immigration Appeals has authority — and obligation — to consider ineffective assistance of counsel claims arising from an attorney's post-final-order misconduct before a different tribunal, and that mailing a courtesy copy of a BIA decision to a represented noncitizen does not overcome the presumption of prejudice from counsel's failure to notify them.

4th District Court of Appeal, Civil Procedure, Litigation

Damak v. Superior Court — Trial Courts Must Apply Section 2023.050’s Mandatory $1,000 Sanction for Bad-Faith Discovery Conduct, Regardless of Whether the Moving Party Incurred Expenses

The Fourth District held that trial courts must consider Code of Civil Procedure section 2023.050 — which imposes a mandatory $1,000 sanction for bad-faith document production conduct regardless of the other party's actual expenses — and that a self-represented litigant facing discovery stonewalling by opposing counsel is not left without a remedy.

Ninth Circuit Court of Appeals, Labor & Employment Law, Litigation

Combs v. Netflix, Inc. — Ninth Circuit Sets Test for When a Sexual Harassment ‘Dispute Arises’ Under the EFAA, Holding Pre-2022 Internal Complaints Triggered the Clock

In a matter of first impression, the Ninth Circuit held that under the EFAA's timing provision, a "dispute arises" when an employee registers internal disagreement with an employer and the employer expressly or constructively opposes it — not when the employee later files a formal complaint — and that "claims accrue" under standard accrual principles; here both happened before March 3, 2022, so the EFAA did not apply and Netflix's arbitration agreement was enforceable.

4th District Court of Appeal, Constitutional Law, Labor & Employment Law, Litigation

Adelanto Elementary School District v. Krause — Employers Cannot Waive the Right to Seek a Workplace Violence Restraining Order for Employees

The Fourth District holds that an employer's statutory right to seek a workplace violence restraining order on behalf of its employees cannot be signed away in a separation agreement, and strikes as a First Amendment violation a provision barring an elected board member from discussing the restraining order at public meetings.

1st District Court of Appeal, Criminal Law, Litigation

People v. Tyler — Court Warns That ‘Could Be Convicted’ Is the Wrong Standard at a Penal Code Section 1172.6 Resentencing Hearing

The First District publishes this opinion specifically to flag a recurring error: at a section 1172.6 evidentiary hearing, the trial court is an independent fact-finder who must decide whether the petitioner IS guilty beyond a reasonable doubt under current law — not whether a jury 'could' convict them.

Ninth Circuit Court of Appeals, Criminal Law, Litigation

United States v. Shi — Ninth Circuit Vacates Sophisticated-Laundering Enhancement Where Required Guideline Step Was Skipped

The Ninth Circuit vacated a sophisticated-laundering sentencing enhancement because the district court applied the enhancement without first working through the required preceding step in U.S.S.G. § 2S1.1(b)(2), remanding for limited resentencing of three defendants convicted in a large-scale gift-card laundering scheme.

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