California Case Summaries

2nd District Court of Appeal

2nd District Court of Appeal, Insurance Law, Personal Injury & Tort

O’Brien v. Midway Rent-A-Car, Inc. — Federal Law Bars Owner Liability and Rental Company Had No Duty to Verify Insurance

The Second District affirmed. California Vehicle Code sections 17150 and 17151 ordinarily impose limited vicarious liability on an owner who permits another person to operate a vehicle. But the Graves Amendment expressly prevents states from imposing liability on a rental or leas

2nd District Court of Appeal, Banking & Finance, Estate Planning, Probate and Tax Law, Personal Injury & Tort

DeVone v. Morgan Stanley & Co. LLC — Elder-Abuse and Broader Fiduciary-Duty Theories Must Go to a Jury

The Second District reversed most of the judgment. Once a claim is timely under California’s delayed-discovery rule, the limitations period ordinarily determines whether the action may proceed; it does not automatically erase damages from earlier conduct that forms part of the ti

2nd District Court of Appeal, Business Transactions, Labor & Employment Law

Villasenor v. Schneiter — FEHA Does Not Presume Corporate Owners Are Alter Egos

The Second District affirmed and held that FEHA does not alter the common-law presumption of corporate separateness. FEHA contains no provision addressing alter ego liability or judgment enforcement, much less the clear and unequivocal statement courts expect before concluding that legislation displaced a settled common-law rule. The direction to construe FEHA liberally and provide effective remedies was not enough to create a new presumption.

2nd District Court of Appeal, Civil Procedure, Criminal Law

People v. Thompson — Preliminary-Hearing Deadline Includes Timely Resolution of Suppression Motion

The Second District affirmed. A defendant is statutorily entitled to make a suppression motion at the preliminary hearing, and that motion is part of the hearing that section 859b requires to occur within its specified time. The prosecution could not preserve the complaint by separating the evidentiary issue from the preliminary hearing and postponing it beyond the deadline over the defendant’s objection.

2nd District Court of Appeal, Labor & Employment Law, Litigation

Molina v. Triumph Residential Services — Mandatory Arbitration Agreement Unenforceable When FAA Does Not Apply

The Second District affirmed denial of arbitration. The Legislature added the FAA language in an attempt to avoid federal preemption; it protects only agreements that are actually enforceable under the federal statute. When the FAA does not apply, ordinary California contract principles remain in force, including the rule that courts will not enforce a contract that was illegal to form. A section 432.6 violation can therefore make a non-FAA arbitration agreement unenforceable.

2nd District Court of Appeal, Constitutional Law, Criminal Law

People v. Thomas — Investigatory Car Search Could Not Be Justified as an Inventory

The Second District reversed and ordered suppression. An inventory search must be tied to a legitimate caretaking purpose, such as protecting property, protecting police from claims, or removing a vehicle that threatens traffic or public safety. It cannot be used as a substitute for probable cause when officers hope to find evidence. The prosecution bears the burden of proving the exception.

2nd District Court of Appeal, Labor & Employment Law

McInerney v. Regents — Fair Chance Act Requires Process, Causation, and Actual Harm

The trial court concluded there was no triable issue of material fact as to whether UCLA followed the procedure set forth in section 12952, subdivision (c)(1)(A), which requires an employer to make an 'individualized assessment' of whether the applicant's conviction history has a direct and adverse relationship with the specific duties of the job that justify denying the applicant the position.

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