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Case Summaries

Commercial Law

[06/28] Bilski v. Kappos
In a patent application seeking protection for a claimed invention explaining how commodities buyers and sellers in the energy market could protect, or hedge, against the risk of price changes, the denial of the application is affirmed where: 1) the machine-or-transformation test is not the sole test for patent eligibility under 35 U.S.C. section 101; 2) Section 101 precluded a reading of the term "process" that would categorically exclude business methods; and 3) even though petitioners' application was not categorically outside of section 101 under the two atextual approaches the Court rejected today, that did not mean it was a "process" under section 101.

[06/25] Rathborne Land Co. v. Ascent Engy., Inc.
In an action for breach of defendant's obligations to reasonably develop and explore a leased parcel of oil, gas, and mineral land, judgment for plaintiff is affirmed in part where: 1) plaintiff's letter to defendant met the La. Rev. Stat. Ann. section 31:136 demand requirement; and 2) district court did not clearly err in concluding that plaintiff would have been able to lease the disputed acreage more than once if it had been able to seismically survey the parcel prior to 2006. However, the judgment is vacated in part where neither the district court nor plaintiff could show an adequate ground -- indeed, any relevant precedent -- for awarding consequential damages for lost leasing and seismic revenues on the entire parcel.

[06/25] Bagby Elevator Co. v. Schindler Elevator Corp.
In an action for tortious interference with contract, judgment for plaintiff is affirmed where: 1) under the court's highly deferential standard of review, there was no reversible error in the district court's decision to use the pattern jury instruction; 2) there was sufficient evidence of both malice and gross negligence to support an award of exemplary damages; and 3) there was ample evidence of causation to support the verdict.

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Family Law

[06/24] Doe v. Reed
In a First Amendment case arising out of a state law extending certain benefits to same-sex couples, involving a challenge to the Washington Public Records Act based on its provision permitting the disclosure of referendum petition signers' names and addresses, the Ninth Circuit's reversal of the district court's preliminary injunction in favor of plaintiffs is affirmed where disclosure of referendum petitions does not as a general matter violate the First Amendment.

[06/23] In re Marriage of Hartman
Trial court's denial of wife's motion to vacate an order restraining her from interfering with ex-husband's child custody time is affirmed as the restraining order is neither ambiguous nor overbroad.

[06/22] In re Kyle E.
In juvenile dependency proceedings, the juvenile court's visitation order is reversed and remanded as it unlawfully delegated the responsibility of whether or not the father's visitation would occur at all to the Sacramento County Department of Health and Human Services.

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Professional Malpractice

[06/21] Med. Assurance Co., Inc. v. Hellman
District court's order issuing a stay of federal proceedings in an insurer's request for declaratory judgment, claiming that it no longer has a duty to defend or indemnify a doctor due to his disappearance in more than 350 medical malpractice claims, is reversed and remanded as it was an abuse of discretion to stay this action.

[06/17] Price v. Wolford
In the Oklahoma Health Care Authority (OHCA)'s appeal from the district court's order allotting part of a malpractice settlement to OHCA in full satisfaction of the lien, the order is reversed where the district court correctly construed Oklahoma law but erred in finding that the settling parties had proved by clear and convincing evidence that only $67,666.67 of the settlement could be attributed to medical care paid by Medicaid.

[06/17] Martinez v. Cui
In plaintiff's suit against a first-year medical resident claiming that she was sexually assaulted during an examination, judgment in favor of the defendant is affirmed where: 1) the district court's evidentiary rulings were not error; and 2) the jury was correctly instructed on the shocks-the-conscious element as this standard applies to claims that an executive official's sexual assault violated the substantive due process clause.

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Class Actions

[06/25] Lincoln Nat'l Life Ins., Co. v. Bezich
A petition for permission to appeal, arising from the district court's remand of plaintiff's class action lawsuit against an insurer for breach of contract claims on the basis that CAFA's exception to federal jurisdiction for the action applied, is dismissed for lack of jurisdiction as plaintiff's claim "related to the rights, duties,...and obligations relating to or created by or pursuant to...a security," as defined in the Securities Act of 1933.

[06/24] Faulkinbury v. Boyd & Assoc. Inc.
In a suit brought by about 4000 current and former employees against an employer, claiming that the company, which provides security guard services throughout Southern California, denied meal and rest breaks and failed to pay for overtime, trial court's denial of their motion for class certification is affirmed in part, reversed in part and remanded where: 1) order denying the motion for class certification as to the meal break class and the rest break class is affirmed as the trial court did not abuse its discretion in finding common issues of law and fact did not predominate over individual issues; and 2) order denying the motion for class certification as to the overtime-pay class is reversed and remanded.

[06/24] Brown v. Kelly
In a class action by persons allegedly arrested pursuant to an unconstitutional New York anti-begging statute, the district court's class certification order is affirmed in part where the citywide plaintiff class met the requirements of Federal Rules of Civil Procedure 23(a) and 23(b)(3). However, the order is reversed in part where the district court erred in certifying a statewide defendant class because the defendant class representatives did not meet the adequacy and typicality requirements of Federal Rule of Civil Procedure 23(a), and the district court also erred in certifying a statewide plaintiff class because the certification of this class was contingent on the bilateral certification of both a statewide plaintiff and a statewide defendant class.

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Probate Trusts

[06/25] Greenspan v. LADT, LLC
In a trust's suit for breach of contract and other claims against two affiliated companies and individuals, trial court's confirmation of an arbitrator's award against defendants in the amount of $6.34 million is affirmed where: 1) per the JAMS rules, the arbitrator, not a court, determines what issues are arbitrable, and here, the arbitrator determined that the issue of joint and several liability was arbitrable; 2) arbitrator's finding of joint and several liability was rationally related to the parties' contract; 3) as to the timeliness of the final award under JAMS rules, the arbitrator's interpretation and application of the rules cannot be judicially reviewed on the merits; and 4) the suit against the arbitrator was barred by arbitral immunity and would not have caused a reasonable person to doubt the arbitrator's impartiality.

[06/22] Jay E. Hayden Found. v. First Neighbor Bank, NA
In a RICO suit against a bank, two law firms, and affiliated individuals, grant of defendants' motion to dismiss on the ground that the complaint itself showed that plaintiffs had missed the four-year deadline governing RICO suits is affirmed as, by the summer of 2003 at the latest, the plaintiffs knew that a lawyer had looted the estate and that bank's employees were trying to prevent further investigation of the lawyer.

[06/17] Estate of Charania v. Shulman
In a tax deficiency case, the judgment of the tax court is affirmed in part and reversed in part where: 1) the tax court's judgment that all of the Citigroup shares were the separate property of the decedent for federal estate tax purposes and, thus, were includable in his gross taxable estate is affirmed, as the rule of De Nicols is that a change in marital domicile does not, in itself, effect a change in the marital property regime governing the spouses' rights in personal property acquired throughout the course of the marriage; but 2) the tax court's approbation of the late-filing penalty was in error and is therefore reversed.

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Wills & Trusts

[06/30] MICHAEL J. v. THE SUPERIOR COURT OF ORANGE COUNTY (ROGERS)
The conservator of the person and the estate of a mentally disabled person who is unable to communicate her wishes does not have the power to initiate and prosecute a petition for the dissolution of her marriage.

[03/12] E. ARMATA, INC. v. KOREA COMMERCIAL BANK OF NEW YORK
Under the Perishable Agricultural Commodities Act (PACA), a bank is not liable to the beneficiaries of a PACA trust for receipt of funds in breach of the trust where, having extended revolving overdraft privileges to a produce dealer covered by PACA, the bank routinely applied deposited PACA funds to reduce the negative balance in the produce dealer's overdrawn account.

[03/12] E. ARMATA, INC. v. KOREA COMMERCIAL BANK OF NEW YORK
Under the Perishable Agricultural Commodities Act (PACA), a bank is not liable to the beneficiaries of a PACA trust for receipt of funds in breach of the trust where, having extended revolving overdraft privileges to a produce dealer covered by PACA, the bank routinely applied deposited PACA funds to reduce the negative balance in the produce dealer's overdrawn account. (Amended opinion)

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