Justia California Court of Appeals Opinion Summaries

Pillar hired Epiphyte to convert its cryptocurrency into Euros. Epiphyte informed Pillar that it used Payward’s online exchange to convert its clients’ cryptocurrencies. Pillar transferred its cryptocurrency into Epiphyte’s account on Payward’s platform. After Epiphyte converted the currency but before the exchanged funds were transferred to Pillar’s bank account, four million Euros belonging to Pillar were stolen from Epiphyte’s account.Pillar sued Payward, alleging Payward knew or should have known that Epiphyte was using its Payward account on Pillar's behalf, failed to use standard security measures that would have prevented the theft, and falsely advertised that it provided the best security in the business. Payward moved to compel arbitration, claiming that Epiphyte agreed to Payward’s “Terms of Service” when it created an account, as required for all users, that those Terms included an arbitration agreement, and that Pillar was bound by that agreement.The court of appeal affirmed the denial of Payward’s motion. There is no evidence Epiphyte was acting as Pillar’s agent when it agreed to the Terms two years before Pillar hired it or that the agency relationship automatically bound the principal to the agent’s prior acts. There is no evidence Pillar knew the arbitration agreements existed or had a right to rescind them. No ratification occurred. There was no intent to benefit Pillar or similar parties. Pillar’s claims are not inextricably intertwined with the Terms. View "Pillar Project AG v. Payward Ventures, Inc." on Justia Law

Plaintiff filed suit against Amazon for injuries she suffered from an allegedly defective hoverboard she purchased from a third party seller named TurnUpUp on Amazon's website. The trial court granted summary judgment in favor of Amazon.The Fourth District recently addressed this issue as a matter of first impression in Bolger v. Amazon.com, LLC (2020) 53 Cal.App.5th 431 (Bolger), review denied November 18, 2020, holding that Amazon is an integral part of the overall producing and marketing enterprise that should bear the cost of injuries resulting from defective products.The Court of Appeal reversed the trial court's judgment and concluded that Bolger properly applied a well-established strict liability law to the facts of its case and was correctly decided. Based on the court's review of Amazon's third-party business model under the Business Solutions Agreement (BSA), the court is persuaded that Amazon's own business practices make it a direct link in the vertical chain of distribution under California's strict liability doctrine. Although the court concluded that Amazon is a link in the vertical chain of distribution, the court nevertheless recognizes that e-commerce may not neatly fit into a traditional sales structure. Viewing the evidence in the light most favorable to plaintiff, the court concluded that there exists a triable issue of material fact as to liability under the stream of commerce approach and thus the trial court erroneously granted summary adjudication on the strict liability claim. The court rejected Amazon's contention that it was merely a service provider and thus not strictly liable for plaintiff's injuries. Furthermore, the court was not persuaded by Amazon's reliance on those decisions that restrict strict liability to sellers or manufacturers by applying out-of-state law. The court also concluded that policy considerations underlying the doctrine are furthered by imposing strict products liability in this case. Finally, summary adjudication was improperly granted as to the negligent products liability claim where Amazon provides no legal support for its argument that negligent products liability may only be imposed on manufacturers and sellers. View "Loomis v. Amazon.com LLC" on Justia Law

Yue, living in California, established and moderated a Chinese language online community website, ZZB. Many of ZZB’s bloggers and readers are California residents. Liu is a California resident who lives in Canada and owns and operates a competing website, Yeyeclub.com. Yang, who lives in Canada, posted on both sites. Yue filed suit in Contra Costa County against several defendants, including Yang and Liu, alleging unfair competition and defamation, citing Yang’s “sexually explicit, violent and insulting” posts on Yeyeclub. Some posts referred to Yang traveling to California to harm Yue. According to the complaint, Yang intentionally directed his defamatory messages at Yue in California, and intended to, and did, cause harm there.The trial court granted a motion to quash, finding that there was no basis for general jurisdiction over Yang. The court of appeal reversed. Yang purposefully availed himself of forum benefits, targeting his conduct at California through a website operated by a California resident that had a California audience, with a California focus. Yang’s defamatory posts on Yeyeclub injured Yue’s business and his reputation in California. Yang has not met his burden of presenting a compelling case that jurisdiction would be unreasonable under all of the circumstances. View "Yue v. Yang" on Justia Law

California residents who sell goods on eBay, an online marketplace, as part of their online businesses and use PayPal to receive payments for many of their sales filed a putative class action. The suit challenged provisions of the user agreements, including PayPal’s policy of placing a temporary hold on funds in a user’s account when PayPal believes there is a high level of risk associated with a transaction or a user’s account; PayPal’s retention of interest on users’ funds that are placed in pooled accounts when users maintain a balance in their PayPal accounts; PayPal’s buyer’s protection policy, which allows buyers, under certain circumstances, to dispute transactions up to 180 days after the date of purchase; and a claim that PayPal aids and abets buyers in defrauding sellers by the manner in which it resolves disputes. The court of appeal affirmed the dismissal of the claims against PayPal, without leave to amend. The challenged practices are not unconscionable. The degree of procedural unconscionability that arises from the fact that a contract is one of adhesion is ‘minimal.” View "Chen v. Paypal, Inc." on Justia Law

Murphy, a journalist with approximately Twitter 25,000 followers, had a Twitter “verification badge,” which “lets people know that an account of public interest is authentic.” Murphy “writes primarily on feminist issues, including the Me Too movement, the sex industry, sex education, third-wave feminism, and gender identity politics.” Murphy argues “that there is a difference between acknowledging that transgender women see themselves as female and counting them as women in a legal or social sense.” Murphy posted several tweets critical of transgender women. Twitter removed her posts and informed her she had violated its hateful conduct rules. After she posted additional similar messages, Twitter permanently suspended her account.Murphy filed suit, alleging breach of contract, promissory estoppel, and violation of the unfair competition law. The trial court dismissed the complaint, concluding Murphy’s suit was barred by the Communications Decency Act of 1996, 47 U.S.C. 230, under which interactive computer service providers have broad immunity from liability for traditional editorial functions undertaken by publishers—such as decisions whether to publish, withdraw, postpone or alter content created by third parties. The court of appeal affirmed. Each of Murphy’s causes of action seeks to hold Twitter liable for its editorial decisions. Murphy also failed to state a cognizable claim under California law. The Hateful Conduct Policy was in place when Murphy began posting her deleted tweets; Twitter expressly reserved the right to remove content, and suspend or terminate accounts “for any or no reason.” View "Murphy v. Twitter, Inc." on Justia Law

Plaintiffs-appellants Robert Dziubla and Linda Stanwood claimed defendant Ignatius Piazza II, owner of a Nevada firearms training facility, harassed and threatened them by publishing defamatory statements along with their personal identifying information, and sending associates to invade their home. Piazza retorted that plaintiffs conned him out of thousands of dollars and are now attempting to steal his property and "chill his constitutional rights." The trial court granted in part and denied in part Piazza’s special motion to strike under California’s anti-SLAPP statute. With one important clarification as to the scope of protected activity, the Court of Appeal reached the same conclusion. That clarification involved so-called “doxing” allegations in the complaint: plaintiffs’ claim that Piazza published private personal identifying information about them to thousands of gun enthusiasts as a thinly-veiled threat about what could happen if they continued to litigate the business dispute. Although it was included in an otherwise-protected litigation “alert” that discussed the pending lawsuit, the doxing information was entirely extraneous to the court proceedings that were the ostensible subject of the communication. The Court of Appeal thus rejected Piazza’s assertion that plaintiffs could not meet the “minimal merit” standard on the anti-SLAPP motion because the doxing allegations would necessarily be barred by the litigation privilege in Civil Code section 47(b). The order granting the special motion to strike was reversed in part as to two of plaintiffs’ cause of action ‒ the tenth, seeking an injunction, and the twelfth, alleging a civil rights violation ‒ but only as to the claims included in these causes of action that alleged injury from the publication of their personal information, i.e., the doxing allegations. In all other respects, the order was affirmed. The matter was remanded to the trial court for further proceedings. View "Dziubla v. Piazza" on Justia Law

Plaintiffs Cheryl Thurston and Luis Licea (collectively Thurston) were California residents who purchased items from defendant Fairfield Collectibles of Georgia, LLC (Fairfield), a Georgia limited liability company, through the company's website. Thurston alleged Fairfield’s website was not fully accessible by the blind and the visually impaired, in violation of the Unruh Civil Rights Act. The trial court granted Fairfield’s motion to quash service of summons, ruling that California could not obtain personal jurisdiction over Fairfield, because Fairfield did not have sufficient minimum contacts with California. The Court of Appeal reversed, finding the evidence showed that Fairfield made some eight to ten percent of its sales to Californians. "Hence, its website is the equivalent of a physical store in California. Moreover, this case arises out of the operation of that website." The trial court therefore could properly exercise personal jurisdiction over Fairfield. View "Thurston v. Fairfield Collectibles of Georgia, LLC" on Justia Law

Coinbase is an online digital currency platform that allows customers to send, receive, and store certain digital currencies. Archer opened a Coinbase account to purchase, trade, and store cryptocurrency. On October 23, 2017, a third party launched a new cryptocurrency, “Bitcoin Gold,” Coinbase monitored and evaluated Bitcoin Gold’s network and informed its customers via its website: “ ‘At this time, Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public to review. This is a major security risk.’ ” In 2018, the Bitcoin Gold network was attacked by hackers who stole millions of dollars of funds from trading platforms and individuals on its network.Archer sued Coinbase, based on Coinbase’s failure and refusal to allow him to receive his Bitcoin Gold currency and Coinbase’s retention of control over his Bitcoin Gold. The trial court rejected his claims of negligence, conversion, and breach of contract on summary judgment. The court of appeal affirmed. Archer failed to establish the existence of an agreement by Coinbase to provide the Bitcoin Gold to him and failed to demonstrate Coinbase acted in any way to deprive him of his Bitcoin Gold currency. View "Archer v. Coinbase, Inc." on Justia Law

The defendants were indicted on murder, weapons, and gang-related charges stemming from a drive-by shooting. Each defendant served a subpoena duces tecum on one or more social media providers (Facebook, Instagram, and Twitter, collectively “Providers”), seeking public and private communications from the murder victim’s and a prosecution witness’s accounts. Providers repeatedly moved to quash the subpoenas on the ground that the federal Stored Communications Act (18 U.S.C. 2701) barred them from disclosing the communications without user consent. The trial court concluded that the Act must yield to an accused’s due process and confrontation rights, denied the motions to quash, and ordered Providers to produce the victim’s and witness’s private communications for in camera review. The court of appeal granted mandamus relief, concluding the trial court abused its discretion by not adequately exploring other factors, particularly options for obtaining materials from other sources, before issuing its order. The trial court focused on defendants’ justification for seeking the private communications and the record does not support the requisite finding of good cause for the production of the private communications for in camera review. View "Facebook, Inc. v. Superior Court of the City and County of San Francisco" on Justia Law

Plaintiff, who is blind and uses a screen reader, filed suit alleging that defendant violated the Unruh Civil Rights Act by violating the federal American with Disabilities Act of 1990 (ADA). Plaintiff's claims stemmed from her being unable to access defendant's restaurant website with her screen reader.The Court of Appeal held that Title III of the ADA applies to defendant's website; at a minimum, Title III covers a website with a nexus to a physical place of public accommodation; and the undisputed facts show a sufficient nexus between defendant's website and its restaurant. The court also held that plaintiff's and the trial court's references to nongovernmental guidelines did not violate defendant's due process rights; the trial court could and did disregard surplus comments plaintiff made about the Web Content Accessibility Guidelines 2.0; and the specification of WCAG 2.0 guidelines in the injunction did not support or show a due process violation. Finally, the court held that whether defendant's alternative means of communication would be effective was not a triable issue of fact; plaintiff had standing to obtain an injunction; and the injunction mandating compliance with WCAG 2.0 was not overbroad or uncertain. View "Thurston v. Midvale Corp." on Justia Law