Justia California Court of Appeals Opinion Summaries

Since 1986, the GSW NBA basketball team has played their home games at the Authority's Oakland arena. A 1996 License Agreement gave GSW certain obligations to pay the debt incurred in renovating the arena if GSW “terminates” the agreement. In 2012, GSW announced its intention to construct a new arena in San Francisco. GSW did not exercise the renewal option in the Agreement, and, on June 30, 2017, its initial term expired. GSW initiated arbitration proceedings, seeking a declaration that it was no longer obliged to make debt payments if it allowed the License Agreement to expire rather than terminating it.The arbitrator ruled in favor of the Authority and against GSW, awarding the Authority attorney fees. The court of appeal affirmed. Based on extrinsic evidence, the arbitrator found the parties intended to adhere to the terms of a pre-agreement Memorandum of Understanding, which required the team to continue making debt payments after the initial term. The 1996 License Agreement is reasonably susceptible to the parties’ competing interpretations, so parol evidence was admissible to prove what the parties intended. Even assuming that the arbitrator addressed a question of law when she interpreted the Agreement, the parties intended to include a termination of the agreement upon GSW’s failure to exercise the first two options to renew. View "Oakland-Alameda County Coliseum Authority v. Golden State Warriors, LLC" on Justia Law

While going down Festival’s waterslide, Sharufa inadvertently slipped from a seated position on an inner tube onto his stomach. When he entered the pool below, his feet hit the bottom with enough force to fracture his hip and pelvis. Sharufa sued for negligence, product liability (including breach of express and implied warranties), and negligent misrepresentation. Sharufa’s opposition to a summary judgment motion included a mechanical engineer's opinion that going down the slide on one’s stomach could lead to injury because it would cause a person to enter the water with more velocity than sliding on one’s back. The court found that the engineer did not qualify as an expert on the relevant subject matter and granted Festival summary adjudication on all but the negligent misrepresentation claim. Sharufa dismissed that claim without prejudice to allow an appeal. The court of appeal affirmed as to Sharufa’s negligence cause of action, Festival owes a heightened duty of care as a common carrier; but there was no evidence of breach. The court reversed as to Sharufa’s products liability causes of action; the record is insufficient to show the park provided primarily a service rather than use of a product. The purpose of riding a waterslide is “entertainment and amusement,” but where a product is intended for entertainment, to allow a supplier to be characterized as an “amusement service” provider would risk weakening product liability protections for consumers. View "Sharufa v. Festival Fun Parks, LLC" on Justia Law

After a seaman's hands were injured on a commercial fishing vessel out on the Gulf of Mexico and he ultimately loss some of his fingers due to infection, he filed suit against the vessel's owner and the production company that was filming a reality TV show on the vessel.The Court of Appeal affirmed the trial court's grant of summary judgment to the production company, holding that the production company was not liable under the Jones Act because plaintiff was not an "employee" or a "borrowed servant" to the production company. The court declined to construe the borrowed servant doctrine in the maritime context to impose a duty upon passengers and observers on a vessel to undertake acts inconsistent with the orders of the vessel's captain. The court also held that the production company was not liable under maritime tort law because there were not genuine issues of material fact as to whether the production company had a "special relationship" with plaintiff, the production company's rescue attempts were grossly negligent, and the production company acted negligently in taking charge of a "helpless" person. View "McHenry v. Asylum Entertainment Delaware, LLC" on Justia Law

The provision of adequate protective netting in a perceived zone of danger behind home plate (or for field-level seating along the first- and third-base lines between home plate and the dugouts) increases safety and minimizes the risk of injury to spectators without altering the nature of baseball as it is played today in professional and college ballparks.The Court of Appeal reversed the trial court's judgment entered in favor of US Baseball after sustaining without leave to amend US Baseball's demurrer to the first amended complaint of a 12 year-old who was seriously injured by a line drive foul ball while watching a baseball game sponsored by US Baseball. The court held that plaintiff's proposed second amended complaint stated causes of action for negligence and premises liability against US Baseball. In this case, plaintiff adequately alleged duty and breach, and any issue of "open and obvious danger" could not be resolved on demurrer. Accordingly, the court remanded with directions to the trial court to vacate its order sustaining US Baseball's demurrer without leave to amend and to enter a new order sustaining the demurrer and granting plaintiff leave to file a second amended complaint. View "Summer J. v. United States Baseball Federation" on Justia Law

Sony, the Estate of Michael J. Jackson, and MJJ Productions appealed from the superior court's order partially denying their motion to strike under the anti-SLAPP statute. Plaintiff alleged that defendants marketed a posthumous Michael Jackson album in violation of the Unfair Competition Law (UCL) and the Consumers Legal Remedies Act (CLRA). Plaintiff also brought a fraud claim against the Cascio Defendants, alleging that they knowingly misrepresented to defendants that Jackson was the lead singer on the three tracks at issue.Upon reconsideration in light of FilmOn.com Inc. v. Double Verify Inc. (2019) 7 Cal.5th 133, the Court of Appeal held that its prior opinion was correct. In the prior opinion, the court held that plaintiff's claims against defendants arose from conduct furthering defendants' right of free speech in connection with a public issue, and that plaintiff did not show a probability that her claims under the UCL and the CLRA would succeed because the claims concern noncommercial speech that is not actionable under those statutes.The court largely adopted the prior opinion, except that it revised the discussion of the first step of the anti-SLAPP procedure to take into account the FilmOn decision and its application to the circumstances of this case. The court held that defendants' challenged statements were sufficiently connected to an issue of public interest to warrant anti-SLAPP protection. In this case, the representations that plaintiff challenged did not simply promote sale of the album, but also stated a position on a disputed issue of public interest. View "Serova v. Sony Music Entertainment" on Justia Law

Defendant California Community College Athletic Association (Athletic Association) administered intercollegiate athletics for the California community college system. The parties agreed that, as a condition of participating in the intercollegiate football league, plaintiff Bakersfield College (the College) agreed to be bound by the Athletic Association’s bylaws and constitution, including a provision requiring the College to resolve any sanctions and penalty disputes by binding arbitration. Instead of proceeding through binding arbitration to challenge the sanctions and penalty decisions issued by the Athletic Association and codefendant the Southern California Football Association (the Football Association) against the College, the College and coplaintiffs Jeffrey Chudy and the Kern Community College District elected to file civil litigation. Plaintiffs argued they were excused from pursuing binding arbitration because the arbitration provision was unconscionable. The trial court said the “issue [wa]s close,” but ultimately, after severing the one-sided attorney fees subsections, found the arbitration provision was not unconscionable. The trial court, therefore, found plaintiffs’ litigation was barred by the failure to exhaust their administrative remedies. The Court of Appeal agreed with the trial court that this was a close case but concluded the arbitration provision was unconscionable. Accordingly, it reversed. View "Bakersfield College v. Cal. Community College Athletic Assn." on Justia Law

JRE filed suit against defendants in an action stemming from a dispute concerning a television production based on the life of the Mexican-American celebrity Jenni Rivera. JRE filed suit against Rivera's former manager, the program's producers, and the program's broadcaster. JRE alleged that the manager breached a nondisclosure agreement by disclosing information to the producers and the broadcaster.The Court of Appeal affirmed the trial court's order denying the producers' special motion to strike under Code of Civil Procedure section 425.16, holding that JRE satisfied its burden to demonstrate a prima facie case, with reasonable inferences from admissible evidence, that the producers had knowledge of the nondisclosure agreement before taking actions substantially certain to induce the manager to breach the agreement. However, the court held that the First Amendment protected the broadcaster's use and broadcast of the information in the series, and the court reversed the trial court's order denying the broadcaster's special motion to strike. In this case, although First Amendment protection for newsgathering or broadcasting does not extend to defendants who commit a crime or an independent tort in gathering the information, it was undisputed that the broadcaster did not know of the nondisclosure agreement at the time it contracted with the producers to broadcast the series, and JRE did not show that the broadcaster engaged in sufficiently wrongful or unlawful conduct after it learned of the nondisclosure agreement to preclude First Amendment protection. View "Jenni Rivera Enterprises, LLC v. Latin World Entertainment Holdings, Inc." on Justia Law

Plaintiffs, former and current members of the band WAR, filed suit for breach of contract, alleging that their music publisher failed to pay them a share of the royalties generated from public performances of the band's songs. Plaintiffs alleged that paragraph 22 of the 1972 Agreement defined Composition Gross Receipts to include "all moneys" FOM had received from the sale, lease or license of the compositions.The Court of Appeal reversed the trial court's grant of summary judgment for the publisher and held that the language of the 1972 Agreement, considered in conjunction with plaintiffs' extrinsic evidence, demonstrated that the contract was reasonably susceptible to plaintiffs' proposed interpretation. The court also held that plaintiffs' interpretation was more reasonable than the interpretation FOM has proposed. In this case, FOM chose not to submit any extrinsic evidence that contradicted or otherwise responded to plaintiffs' extrinsic evidence. Rather, FOM relied solely on the text of the 1972 Agreement and asserted that it unambiguously excluded performance royalties from the revenue-sharing provision described in paragraph 22. View "Brown v. Goldstein" on Justia Law

In August 2011, Long was shot by a third-party assailant in the Candlestick Park parking lot after a professional football game. Long sued the San Francisco Forty-Niners, Ltd. in state court, alleging breach of contract, negligence, and liability under the rescue doctrine. In 2013, Long learned that Ltd. had converted into a Delaware LLC and filed an identical complaint against the LLC and Ltd.'s general partner, in federal court. Long voluntarily dismissed the state court action in July 2013, less than a month before trial. Subsequently, the federal court dismissed the federal case for lack of diversity jurisdiction. Long filed another state suit, against LLC, in November 2013, with the same allegations. The court dismissed the suit as time-barred, having been filed more than two years after the shooting; the court rejected an argument that the statute of limitations was equitably tolled while the federal case was pending. The court of appeal affirmed. Although LLC was on notice of Long’s claims from the beginning of the first state court action, the doctrine of equitable tolling was not intended to burden a defendant or the courts with having to repeatedly re-start litigation that was almost fully adjudicated, simply because the plaintiff had a last-minute change of mind about the forum. The factual allegations do not establish reasonable and good-faith conduct. View "Long v. Forty Niners Football Co." on Justia Law

George Zakk filed suit against Vin Diesel, One Race Films, Inc., and Revolution Studios for breach of an oral contract, breach of an implied-in-fact contract, intentional interference with contractual relations, quantum meruit, promissory estoppel, and declaratory relief. Plaintiff alleged that he was entitled to be paid and receive an executive producer credit for a film that was a sequel to a film he had worked on and developed. The trial court sustained defendants' demurrers and dismissed the third amended complaint.With regard to oral contracts that fall within the statute of frauds category of contracts not to be performed within a year, the Court of Appeal held that the promisee's full performance of all of his or her obligations under the contract takes the contract out of the statute of frauds, and no further showing of estoppel is required. The court distinguished cases involving other categories of contracts within the statute of frauds, such as contracts to make a will or contracts not to be performed within the promisor's lifetime, because those categories of contracts historically have been treated differently than contracts not to be performed within a year. The court held that, to the extent those cases hold that avoidance of the statute of frauds requires the promisee to satisfy the elements of estoppel--showing extraordinary services by the promisee or unjust enrichment by the promisor--they do not apply to the category of contracts not to be performed within a year.In this case, the court affirmed in part and reversed in part, holding that Zakk's allegation that he fully performed his obligations under the alleged oral contract at issue is enough to avoid the statute of frauds. The trial court erred in finding that Zakk's breach of contract and related claims were barred by the statute of frauds absent alleged facts showing defendants were estopped to assert the statute. Furthermore, the trial court erred by finding that the third amended complaint was a sham pleading and that the quantum meruit claim was time-barred. However, the trial court did not abuse its discretion in dismissing the promissory estoppel claim. View "Zakk v. Diesel" on Justia Law