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California Appellate Tracker

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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Attorneys Fees, Prevailing Party, Prevailing Defendant, Asymmetrical Standard To Further Statutory Purpose, 1, 2 This decision holds that Penal Code 502(e) allows attorney fee awards to prevailing defendants since it simply states that in a case under that section (which forbids computer hacking) the court may award attorney fees.  The Legislature knew how to stay awards to prevailing plaintiffs only,… Read More

Plaintiff, as a 17-year old student, engaged in a fight with another student in class. The teacher intervened and in trying to separate the two students, fell on plaintiff, breaking his leg.  This decision affirms a judgment on a jury verdict for the defendant teacher and school district finding they were not negligent.  There was conflicting evidence as to negligence,… Read More

Settlement, 998 Offer, Sanction for Refusing Applies to Prejudgment Costs and Fees Only, 1, 2 Plaintiff recovered judgment against defendant but for less than defendant's 998 offer which plaintiff had refused.  Consequently, under CCP 998, the plaintiff could recover only pre-offer costs and fees.  However, the CCP 998 sanction applies only to pre-judgment costs and fees.  Here, plaintiff incurred additional… Read More

Insurance, Homeowner's Insurance, Property Damage, Ash, Smoke & Debris from Wildfire, 1, 2 A wildfire that stopped half a mile from plaintiff's property dropped ash and debris on the property and temporarily caused it to have a fire smell.  Relying on Another Planet Entertainment, LLC v. Vigilant Ins. Co. (2024) 15 Cal.5th 1106, this decision holds that the smell, ash… Read More

Plaintiff obtained a big judgment against Ningbo.  Before it could enforce the judgment, Celestron and Ningbo arranged an atypical $4.2 million payment from Ningbo to Celestron to pay in advance for product later to be delivered by Celestron to Ningbo.  The purpose of the transaction was to move assets from Ningbo to other Chinese companies to thwart collection of the… Read More

This opinion affirms sanctions the trial court awarded against defendant's attorney for filing a frivolous opposition to a motion to confirm an arbitration award.  The opposition argued that the arbitrator had exceeded his powers by not considering (sufficiently) exhibits that the sanctioned attorney's client had introduced.  The only authority the sanctioned attorney cited for the proposition that an arbitration award… Read More

Attorneys Fees, Attorneys' Fee Clause, Interpretation, Costs of Enforcing Includes Attorney Fees, 1, 2 A contract that provided that Party A agreed to pay "for all third party costs incurred by Party B to collect overdue invoices" was a clause providing for recovery of attorney fees since they are likely third party expenses incurred in attempting to collect overdue invoices. … Read More

A bakery's refusal to sell an undecorated white cake to a same-sex couple for their wedding reception was intentional discrimination on the basis of sexual orientation in violation of the Unruh Civil Rights Act.  The policy turned on the buyers' sexual orientation as the sole basis for denying them a product sold any other customer.  Also, the bakery did not… Read More

Consumer Protection, Debt Buyers Act, No Actual Damages Required, 1, 2 The California Debt Buyers Act (Civ. Code 1788.50-1788.66) requires buyers of charged-off consumer debt to have the following before writing to the consumer to collect the debt:  sufficient records of the debt, the consumer’s liability for that debt, and the debt buyer’s entitlement to collect instead of the original… Read More

The landlord's 3-day notice to quit included a $4.44 charge for Los Angeles' Systemic Code Enforcement Program fees the landlord paid for the tenant's apartment.  Held, the notice was invalid.  LARSO does not allow the landlord to charge the tenant for SCEP fees. Because the 3-day notice did not state the correct sum owed, the unlawful detainer action was properly… Read More

 A plaintiff may obtain an appealable final judgment after suffering a loss on the principal claim by dismissing the other claims without prejudice, just so long as the plaintiff does not obtain any agreement from the defendant waiving or tolling the statute of limitations.  The risk that the limitations period will expire while the case is on appeal is sufficient… Read More

A property owner may sue the public waterworks agency for inverse condemnation based on allegations that the way it designed the water system resulted in the agency delivering water bearing far more sediment to his property than to other water users' properties.  The sediment ruining the irrigation pipes for his avocado orchard.  Plaintiff's claim was not barred simply because plaintiff… Read More

Settlement, Injunction Against Pending Or Future Suits Against Settling Defendant, 2, 2 In an SEC enforcement action, the court has the equitable power to appoint a receiver for entities through which a Ponzi scheme was operated.  The receiver stands in the shoes of the injured corporations and pursues their claims on behalf of all innocent investors in the scheme.  In… Read More

Alabama cannot raise failure to exhaust administrative remedies as a defense to a claim under 42 USC 1983 that seeks to challenge the state's delays in processing their claims for unemployment benefits.  To hold otherwise would place claimants in a catch-22 situation where they would have to wait to bring their claims in court until after the delayed administrative process… Read More

 A False Claims Act case may be brought if any portion of the money to pay the claim comes from the US Treasury.  Here, the claim was that Wisconsin Bell cheated the E-Rate subsidization fund of money by charging subsidized schools at higher rates than legally allowed thus generating inflated claims against the subsidy fund.  Though most of the subsidy… Read More

Under the expropriate exception to the Foreign Sovereign Immunities Act, a plaintiff must be able to trace the expropriated property or its proceeds to a commercial enterprise operated by the defendant sovereign state in the United States.  This case holds that it does not suffice merely to show that the proceeds from sale of expropriated property were commingled in a… Read More

  If a lawyer enters into a business deal with a client in violation of Rule of Professional Conduct 3-300 (i.e., without fair and reasonable terms, disclosed in writing, advice that client may seek independent legal advice, and client consent in writing) there is a presumption that the attorney exercised undue influence over the client, rendering the transaction voidable by… Read More

 The district court erred in requiring an employer to prove by clear and convincing evidence that an employee fell within the outside salesman exemption from the FLSA's minimum wage requirements.  The statute is silent as to the standard of proof for exemptions.  So the ordinary civil standard of proof by a preponderance of the evidence applies.  More stringent standards of… Read More

Plaintiffs were injured at a nightclub shooting that occurred during a rap concert featuring performers from rival gangs.  Plaintiffs sued the nightclub's owner on claims for negligence per se and strict liability on an ultrahazardous activity theory.  This opinion affirms summary judgment for defendants on both claims.  The defendants’ alleged violation of certain provisions of a conditional use permit to… Read More

Under Gov. Code 66412.6, a subdivision of fewer than five parcels made before 1972 is conclusively presumed to have been lawfully created.  For this purpose, it is not enough to show that a subdivision map was created or recorded.  The lots must also have been conveyed separately from adjoining land.  Thus, in this case, an old conveyance (and later deeds)… Read More

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