Justia California Court of Appeals Opinion Summaries

The Town of Apple Valley (TAV) sought to condemn a private water utility system via eminent domain. In November 2015, TAV passed two resolutions of necessity (RON) to acquire the water system, which was owned by Carlyle Infrastructures Partners and operated by Apple Valley Ranchos Water (AVR). In January 2016, TAV filed an eminent domain action to acquire the system. A day later, Carlyle sold the system to Liberty Utilities. After extensive proceedings, including a 67-day bench trial, the trial court found that TAV did not have the right to acquire the system and entered judgment and awarded attorney’s fees to Liberty. TAV appealed.The Superior Court of San Bernardino County ruled that Liberty bore the burden of proving by a preponderance of the evidence that at least one of the required elements for eminent domain was not satisfied. The court also ruled that Liberty need not submit the administrative record (AR) underlying TAV’s RONs. The trial court held a bench trial and issued a Statement of Decision (SOD) finding that Liberty met its burden, rejecting TAV’s evidence and relying on Liberty’s post-RON evidence. TAV’s objections to the SOD were overruled, and the court entered judgment for Liberty and awarded attorney’s fees.The California Court of Appeal, Fourth Appellate District, Division Two, reversed the trial court’s decision. The appellate court held that the trial court applied the wrong standard of proof and failed to give appropriate deference to TAV’s decision and findings. The trial court also improperly based its decision on post-RON facts and events. The appellate court remanded the matter for further proceedings consistent with its opinion, directing the trial court to determine whether to allow TAV to take the water system, remand the matter to TAV for further administrative proceedings, or hold a new trial applying the correct burdens of proof and standard of review. View "Town of Apple Valley v. Apple Valley Ranchose Water" on Justia Law

A minor, L.W., suffered severe injuries when an Audi Q7, allegedly defective, surged forward and crushed him against a garage wall. L.W., his mother, and two siblings filed a products liability suit against Audi AG and Volkswagen Group of America Inc. (VWGoA), claiming the vehicle lacked necessary safety features. Audi AG, a German company, manufactures vehicles sold in the U.S. through VWGoA, which markets and sells them to authorized dealerships, including in California.The Superior Court of Placer County granted Audi's motion to quash service of summons, finding no personal jurisdiction. The court concluded that plaintiffs failed to establish Audi's purposeful availment of California's market or a substantial connection between Audi's activities and the plaintiffs' injuries. The court also found that exercising jurisdiction would not be reasonable or consistent with fair play and substantial justice.The California Court of Appeal, Third Appellate District, reviewed the case. The court found that Audi, through VWGoA, deliberately served the U.S. market, including California, and thus could reasonably anticipate being subject to suit in California. The court held that the plaintiffs met their burden of demonstrating Audi's purposeful availment and the relatedness of the controversy to Audi's contacts with California. The court also found that exercising jurisdiction over Audi would be fair and reasonable, given California's significant interest in providing a forum for its residents and enforcing safety regulations.The appellate court reversed the trial court's order granting the motion to quash and remanded the case with directions to enter a new order denying the motion. The plaintiffs were awarded their costs on appeal. View "L.W. v. Audi AG" on Justia Law

Plaintiffs, ParaFi Digital Opportunities LP, Framework Ventures, L.P., and 1kx LP, invested in Curve, a decentralized cryptocurrency trading platform developed by Mikhail Egorov. They allege that Egorov fraudulently induced them to invest by making false promises about their stake in Curve and then canceled their investment, leading to claims of fraud, conversion, and statutory violations. Egorov, who developed Curve while living in Washington and later moved to Switzerland, formed Swiss Stake GmbH to manage Curve. The investment agreements included Swiss law and forum selection clauses.The San Francisco County Superior Court granted Egorov’s motion to quash for lack of personal jurisdiction, finding that Egorov did not purposefully avail himself of California’s benefits. The court noted that the plaintiffs initiated contact and negotiations, and the agreements specified Swiss jurisdiction. The court also denied plaintiffs’ request for jurisdictional discovery, concluding that plaintiffs did not demonstrate that discovery would likely produce evidence establishing jurisdiction.The California Court of Appeal, First Appellate District, Division Two, affirmed the lower court’s decision. The appellate court agreed that Egorov’s contacts with California were insufficient to establish specific jurisdiction, as the plaintiffs had solicited the investment and Egorov had not directed any activities toward California. The court emphasized that the plaintiffs’ unilateral actions could not establish jurisdiction and that the agreements’ Swiss law and forum selection clauses further supported the lack of jurisdiction. The court also upheld the denial of jurisdictional discovery, finding no abuse of discretion by the trial court. View "ParaFi Digital Opportunities v. Egorov" on Justia Law

Sentinel Energy Center, LLC owns a power plant in North Palm Springs and hired DGC Operations, LLC (OPS) to manage and operate the plant. In 2017, during annual maintenance, five OPS employees failed to follow the new depressurization protocol for the fuel filter skid, leading to an explosion that killed Daniel Collins. Collins's family sued Diamond Generating Corporation (DGC), which has a 50% indirect ownership in Sentinel and is the parent company of OPS, claiming DGC's negligence in safety oversight led to Collins's death.The Superior Court of Riverside County denied DGC's request to instruct the jury on the Privette doctrine, which generally shields a hirer from liability for injuries to an independent contractor's employees. The jury found DGC 97% at fault and awarded the plaintiffs over $150 million. DGC's motions for nonsuit and judgment notwithstanding the verdict, based on the Privette doctrine, were also denied.The Court of Appeal of the State of California, Fourth Appellate District, Division Three, reviewed the case. The court declined to grant judgment notwithstanding the verdict to DGC, citing unresolved factual questions about whether DGC retained control over the plant and negligently exercised that control. However, the court found that the trial court erred in not instructing the jury on the Privette doctrine and its exceptions, which could have led to a more favorable outcome for DGC. Consequently, the appellate court reversed the judgment and remanded the case for a new trial with instructions to include the Privette doctrine and its exceptions. View "Collins v. Diamond Generating Corp." on Justia Law

Pamela Pollock sued her supervisor, Michael Kelso, in 2018 for sexual harassment and racial discrimination, alleging that Kelso asked her for sexual intercourse in 2016 and, after she rejected him, promoted less qualified individuals of other races to positions she sought. The trial court initially ruled that Pollock’s suit was time-barred, a decision which was affirmed by the appellate court. However, in 2021, the California Supreme Court reversed this decision, holding that the statute of limitations begins when plaintiffs knew or should have known of the adverse promotion decision, that the defense bears the burden on this issue, and that costs or fees on appeal cannot be awarded to a prevailing defendant without determining the plaintiff’s action was frivolous, unreasonable, or groundless.Following the Supreme Court’s directions, the appellate court remanded the case and ordered costs for Pollock. Pollock then moved for attorney fees in the trial court, which awarded her $493,577.10. Kelso appealed this award. Before the trial date, Kelso and Pollock settled the bulk of their case, with Pollock moving to dismiss her underlying case with prejudice except for the attorney fee award, which Kelso was appealing. The trial court retained jurisdiction regarding the fee award.The California Court of Appeal, Second Appellate District, Division Eight, reviewed the case. The court denied Pollock’s motion to dismiss Kelso’s appeal, affirming that Kelso was appealing from a final collateral order. On the merits, the court affirmed the fee award, holding that the trial court did not abuse its discretion in determining Pollock as the prevailing party and in the amount awarded. The court found that the trial court’s decision was supported by substantial evidence and that the fee award, including the use of a 1.8 multiplier, was reasonable. View "Pollock v. Kelso" on Justia Law

A non-medical entrepreneur, Randhir Tuli, helped form a medical business with Dr. Andrew Brooks, creating a group of surgery centers. Tuli, who was initially active, later became inactive but continued to take profits. His colleagues, frustrated by his inactivity, sought to buy him out, but Tuli refused. Tuli then sent a threatening letter to potential investors, suggesting criminal liability, without a good faith basis. In response, the company warned Tuli to rectify the situation within 30 days or face ejection without compensation. Tuli did not comply, and the company ejected him, paying him nothing. Tuli then initiated a decade-long litigation against his former colleagues.The Superior Court of Los Angeles County rejected all of Tuli’s claims. Tuli appealed, and the case was reviewed by the Court of Appeal of the State of California, Second Appellate District, Division Eight. The trial court had granted summary judgment in favor of the defendants, finding that the business judgment rule protected the company’s decision to eject Tuli. The court found that the company acted rationally to protect its interests and that Tuli’s letter was disruptive and baseless.The Court of Appeal affirmed the lower court’s decision. It held that the business judgment rule applied, as the company’s actions were rational and in the best interest of the business. The court found no conflict of interest, bad faith, or improper investigation by the company. It also ruled that Tuli’s claims for declaratory relief, unfair competition, breach of fiduciary duty, and breach of the covenant of good faith and fair dealing were without merit. The court concluded that Tuli’s ejection and the zero-dollar redemption of his shares were not an illegal forfeiture, as Tuli had already received substantial returns on his investment and had disrupted the business. View "Tuli v. Specialty Surgical Center of Thousand Oaks, LLC" on Justia Law

In November 2014, Andre Pompey purchased a recreational vehicle (RV) from a dealership, with financing provided by the Bank of Stockton. Pompey later sued the dealership and the Bank, alleging that the retail installment sales contract did not include required disclosures under the Automobile Sales Finance Act (ASFA). Specifically, the contract failed to itemize the downpayment, showing $19,100 as a cash payment instead of $1,000 in cash and $18,100 in trade-in value. Pompey sought rescission of the contract and restitution of the amounts paid.The Superior Court of Fresno County ruled in favor of Pompey, concluding that the four-year statute of limitations for written contracts applied, rather than the one-year statute for statutory penalties. The court granted summary adjudication for Pompey against the dealership on the ASFA violation and, by stipulation, applied the judgment to the Bank under the Federal Trade Commission’s holder rule. The Bank appealed, arguing that the one-year statute of limitations for penalties should apply.The California Court of Appeal, Fifth Appellate District, reviewed the case. The court determined that the rescission and restitution remedy under the ASFA is a penalty because it is imposed without regard to fault or actual damages and significantly limits the court's discretion. The court noted that the legislative history of the ASFA indicated it was intended to be a penalty. Consequently, the court concluded that the one-year statute of limitations for statutory penalties under Code of Civil Procedure section 340 applies. The court reversed the trial court's decision and remanded the case for further proceedings consistent with this opinion. View "Pompey v. Bank of Stockton" on Justia Law

Blake Wentworth, a former professor at the University of California, Berkeley, sued the Regents of the University of California for various claims, including failure to engage in the interactive process, failure to provide reasonable accommodations, and invasion of privacy. Wentworth alleged that the Regents did not accommodate his bipolar II disorder and disclosed confidential information about him.The trial court granted summary adjudication in favor of the Regents on Wentworth's claims for failure to engage in the interactive process, failure to provide reasonable accommodations, and invasion of privacy. The court found that the Regents had engaged in the interactive process and offered reasonable accommodations, such as stopping Wentworth's tenure clock. The court also ruled that the invasion of privacy claim failed because Wentworth did not demonstrate that the Regents disclosed any confidential information.The Court of Appeal of the State of California, First Appellate District, reviewed the case. The court affirmed the trial court's rulings on the interactive process and reasonable accommodations claims, finding that the Regents had acted appropriately. However, the appellate court reversed the summary adjudication of the invasion of privacy claim, concluding that there were triable issues of fact regarding whether the Regents disclosed Wentworth's personal information in violation of the Information Practices Act (IPA).The appellate court also reversed the trial court's denial of Wentworth's motion for attorney's fees and costs, remanding the case for further proceedings to determine whether Wentworth was entitled to fees under the catalyst theory or based on his success in obtaining his personnel file during the litigation. The court affirmed the trial court's denial of Wentworth's motion for a retrial on the personnel file cause of action, finding that Wentworth had forfeited his challenge by failing to object to the verdict form before the jury was discharged. View "Wentworth v. Regents of the University of California" on Justia Law

Terrence Richard, a brakeman for Union Pacific Railroad Company, fell from a train and broke his leg while working. He sued Union Pacific for negligence under the Federal Employers’ Liability Act (FELA). Richard claimed that the locomotive engineer’s mishandling of the train caused a surge that led to his fall. Union Pacific argued that Richard fell because he was improperly positioned on the train. The trial court excluded the testimony of Richard’s expert, Richard Hess, a retired Union Pacific engineer, who would have testified that the engineer’s actions caused the surge.The Superior Court of Los Angeles County granted Union Pacific’s motion in limine to exclude Hess’s testimony, finding that Hess lacked the necessary qualifications. The jury returned a special verdict for Union Pacific, finding the company was not negligent. Richard appealed, arguing that the exclusion of Hess’s testimony was erroneous and prejudicial.The Court of Appeal of the State of California, Second Appellate District, reviewed the case. The court concluded that the trial court erred in excluding Hess’s testimony. Hess had extensive experience relevant to the subject matter and his testimony would have been helpful to the jury. The exclusion of Hess’s testimony was prejudicial because it left Richard without a witness to testify about the locomotive engineer’s actions and their potential danger.The Court of Appeal reversed the judgment for Union Pacific and remanded the matter for a new trial, holding that the trial court abused its discretion by excluding Hess’s expert testimony and that the error was prejudicial to Richard’s case. View "Richard v. Union Pacific Railroad Co." on Justia Law

The case involves a failed business venture between longtime friends, resulting in a $20 million judgment against Stanley N. Cohen for negligent misrepresentation. Cohen, a professor at Stanford University, and his colleague discovered a genetic mutation related to Huntington’s disease and formed a company, Nuredis, with Moshe and Chris Alafi, who invested $20 million. The FDA later rejected Nuredis’s request to conduct human clinical trials for the drug HD106 due to its toxicity. The Alafis sued Cohen and his colleague for negligent misrepresentation and other related causes, alleging they failed to disclose the drug’s history of being withdrawn from the market due to toxicity.The Santa Clara County Superior Court held a bench trial and found in favor of the plaintiffs on the negligent misrepresentation claim against Cohen, awarding $20 million in damages. The court did not reach the other causes of action. Cohen appealed, arguing that the claim failed as a matter of law and that the trial court committed prejudicial error by not issuing a statement of decision upon his request.The California Court of Appeal, Sixth Appellate District, found that the trial court’s failure to issue the requested statement of decision was prejudicial error, as it prevented effective appellate review of the trial court’s factual and legal findings. Consequently, the appellate court did not address Cohen’s arguments on the merits and reversed and remanded the case for the trial court to issue the statement of decision. View "Alafi v. Cohen" on Justia Law