Filed: Jul. 08, 2020
Latest Update: Jul. 08, 2020
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS JUL 8 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT E.R.E. VENTURES, LLC, a Delaware No. 18-56573 limited liability company; et al., D.C. No. Plaintiffs-Appellants, 2:17-cv-01561-R-RAO v. MEMORANDUM* DAVID EVANS AND ASSOCIATES, an Oregon corporation; et al., Defendants-Appellees, and KOLOA PACIFIC CONSTRUCTION, INC.; et al., Defendants. Appeal from the United States District Court for the Central District of Califo
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS JUL 8 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT E.R.E. VENTURES, LLC, a Delaware No. 18-56573 limited liability company; et al., D.C. No. Plaintiffs-Appellants, 2:17-cv-01561-R-RAO v. MEMORANDUM* DAVID EVANS AND ASSOCIATES, an Oregon corporation; et al., Defendants-Appellees, and KOLOA PACIFIC CONSTRUCTION, INC.; et al., Defendants. Appeal from the United States District Court for the Central District of Califor..
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS JUL 8 2020
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
E.R.E. VENTURES, LLC, a Delaware No. 18-56573
limited liability company; et al.,
D.C. No.
Plaintiffs-Appellants, 2:17-cv-01561-R-RAO
v.
MEMORANDUM*
DAVID EVANS AND ASSOCIATES, an
Oregon corporation; et al.,
Defendants-Appellees,
and
KOLOA PACIFIC CONSTRUCTION,
INC.; et al.,
Defendants.
Appeal from the United States District Court
for the Central District of California
Manuel L. Real, District Judge, Presiding
Argued and Submitted June 3, 2020
Pasadena, California
Before: RAWLINSON and N.R. SMITH, Circuit Judges, and KORMAN,**
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The Honorable Edward R. Korman, United States District Judge for
the Eastern District of New York, sitting by designation.
District Judge.
In 2008, Appellant entities (collectively E.R.E.), began renovating their
property on Catalina Island. General contractors performed grading and excavation
work, while David Evans & Associates (DEA) and Langan Engineering conducted
certain preliminary services, including a soil report that revealed the presence of
naturally occurring asbestos. In 2015, after DEA and Langan had completed their
services, E.R.E. discovered that asbestos was dispersed over the property, allegedly
spread during construction.
In 2017, E.R.E. sued their contractors, including DEA and Langan, under the
Comprehensive Environmental Response, Compensation, and Liability Act and an
array of common-law theories. E.R.E. sought to recover cleanup and remediation
costs incurred due to the asbestos contamination. The district court granted DEA’s
and Langan’s motions for partial summary judgment, denying E.R.E.’s claims
against them. E.R.E. then settled with the other defendants before trial. This appeal
relates solely to E.R.E.’s claims against DEA and Langan.
Following the grant of partial summary judgment in favor of DEA and
Langan, all parties—including the defendants not subject to this appeal—filed a
joint stipulation dismissing their remaining claims without prejudice. The district
court did not approve the stipulation or otherwise participate in the voluntary
dismissal. Rather, the district court simply entered a minute order noting that the
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case “should have been closed on entry date 10/31/2018.” The district court never
entered a final judgment.
This court only has jurisdiction over appeals from a final judgment. See
Galaza v. Wolf,
954 F.3d 1267, 1270 (9th Cir. 2020). “[A] voluntary dismissal
without prejudice is ordinarily not a final judgment from which the plaintiff may
appeal.”
Id. (citation omitted) (emphases in the original). Our recent decision in
Galaza requires that the district court “meaningfully participate” in the voluntary
dismissal of claims in order for this court to have jurisdiction over the appeal.
Id.
at 1271. Meaningful participation means more than the court simply entering an
order allowing (without necessarily approving) a voluntary dismissal, as the district
court did in this case. Cf. James v. Price Stern Sloan, Inc.,
283 F.3d 1064, 1066
(9th Cir. 2002) (noting the “district court’s participation” in the voluntary
dismissal). There is an exception to this general rule: “when a party that has
suffered an adverse partial [summary] judgment subsequently dismisses remaining
claims without prejudice with the approval of the district court, and the record
reveals no evidence of intent to manipulate our appellate jurisdiction, the judgment
entered after the district court grants the motion to dismiss is final and appealable.”
Id. at 1070 (citation omitted) (emphasis added).
For example, in American States Ins. Co. v. Dastar Corp.,
318 F.3d 881, 888
(9th Cir. 2003), we concluded that we did not have jurisdiction because the district
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court did not meaningfully participate in dismissal of the claims. Indeed, we stated
that, “[a]lthough the district court ‘approved’ the stipulations to amend and
dismiss, such approval cannot be said to involve meaningful consideration or
participation by the district court inasmuch as the parties were entitled to do so
without leave of the court.”
Id. (citations and footnote reference omitted). Thus,
unlike in James, there was no jurisdiction at least in part because the district court
was never empowered “to manage the development of this action, thereby
facilitating efficiency [and] avoiding [a] premature appeal.”
Id. at 889.
Similarly, in Galaza, we determined that there was no appellate jurisdiction,
as “the district court did not meaningfully participate in the dismissal” of claims
voluntarily dismissed without prejudice under Rule
41(a)(1), 954 F.3d at 1269, and
the district was never allowed to “make ‘a determination that its adjudication of
those claims was ripe for review,’”
id. at 1272 (quoting
James, 283 F.3d at 1069).
We concluded that, “though Rule 41(a)(1) may not have required Galaza to seek
permission of the court to voluntarily dismiss her remaining claims, the district
court’s involvement was needed to establish whether that dismissal would produce
a final, appealable judgment or order.”
Id. We held “that when a party that has
suffered an adverse partial summary judgment subsequently dismisses any
remaining claims without prejudice, and does so without the approval and
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meaningful participation of the district court, this court lacks jurisdiction under 28
U.S.C. § 1291.”
Id. (emphasis added).
In addition, the record contains evidence that the parties intended to
manufacture jurisdiction. Correspondence between the parties reflected that E.R.E.
was adamant about conditioning its stipulation to dismiss on retaining the ability to
revive its claims depending on the outcome of the appeal. Under these
circumstances, no appellate jurisdiction exists.
For the reasons discussed, we grant Appellees DEA and Hall Foreman,
Inc.’s Motion to Dismiss for Lack of Jurisdiction filed on February 25, 2019.
APPEAL DISMISSED.
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