Filed: Oct. 23, 2013
Latest Update: Mar. 28, 2017
Summary: NOT FOR PUBLICATION UNITED STATES COURT OF APPEALS FILED FOR THE NINTH CIRCUIT OCT 23 2013 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS J. A. FISCHER; JOAN C. FISCHER; No. 09-56952 JOHN YOHANNES; KAREN YOHANNES; GLEN WEERHEIM; D.C. No. 2:07-cv-05729-ODW-CT JOHANNA WEERHEIM; SAM ETCHEGARAY; SUZANNE ETCHEGARAY; SAM MEMORANDUM* CROOKSHANKS; DOUG PHILLIPS; FAMOSO GOLD RANCH, LLC; KIWI GOLD CALIFORNIA, LLC; ETCHEGARAY FARMS, LLC; TRIPLE S LAMB FEEDING, CO., LLC, Plaintiffs - Appellees, v. ZESPRI INTER
Summary: NOT FOR PUBLICATION UNITED STATES COURT OF APPEALS FILED FOR THE NINTH CIRCUIT OCT 23 2013 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS J. A. FISCHER; JOAN C. FISCHER; No. 09-56952 JOHN YOHANNES; KAREN YOHANNES; GLEN WEERHEIM; D.C. No. 2:07-cv-05729-ODW-CT JOHANNA WEERHEIM; SAM ETCHEGARAY; SUZANNE ETCHEGARAY; SAM MEMORANDUM* CROOKSHANKS; DOUG PHILLIPS; FAMOSO GOLD RANCH, LLC; KIWI GOLD CALIFORNIA, LLC; ETCHEGARAY FARMS, LLC; TRIPLE S LAMB FEEDING, CO., LLC, Plaintiffs - Appellees, v. ZESPRI INTERN..
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NOT FOR PUBLICATION
UNITED STATES COURT OF APPEALS FILED
FOR THE NINTH CIRCUIT OCT 23 2013
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
J. A. FISCHER; JOAN C. FISCHER; No. 09-56952
JOHN YOHANNES; KAREN
YOHANNES; GLEN WEERHEIM; D.C. No. 2:07-cv-05729-ODW-CT
JOHANNA WEERHEIM; SAM
ETCHEGARAY; SUZANNE
ETCHEGARAY; SAM MEMORANDUM*
CROOKSHANKS; DOUG PHILLIPS;
FAMOSO GOLD RANCH, LLC; KIWI
GOLD CALIFORNIA, LLC;
ETCHEGARAY FARMS, LLC; TRIPLE
S LAMB FEEDING, CO., LLC,
Plaintiffs - Appellees,
v.
ZESPRI INTERNATIONAL LIMITED,
Business form unknown; ZESPRI GROUP
LIMITED, Business form unknown;
ZESPRI FRESH PRODUCE NORTH
AMERICA, INC., a Washington
Corporation,
Defendants,
And
HORTICULTURE AND FOOD
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
RESEARCH INSTITUTE OF NEW
ZEALAND, LTD.,
Defendant - Appellant.
Appeal from the United States District Court
for the Central District of California
Otis D. Wright, District Judge, Presiding
Argued and Submitted October 8, 2013
Pasadena, California
Before: PREGERSON, WARDLAW, and TALLMAN, Circuit Judges.
HortResearch appeals the denial of its motion for contractual attorneys’ fees
as the prevailing party below. We review de novo because the denial was based on
contract interpretation. See Siegel v. Fed. Home Loan Mortg. Corp.,
143 F.3d 525,
528 (9th Cir. 1998).
HortResearch argues that it can enforce the fee-shifting provisions here
because the relevant contracts, which are identical, name it as a third-party
beneficiary. The contracts designate California law, under which third-party
beneficiaries have whatever contractual rights the parties intended to give them.
Sessions Payroll Mgmt., Inc. v. Noble Constr. Co.,
84 Cal. App. 4th 671, 680
(2000). We rely on the contracts’ words to determine what those rights are. Id.;
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Cal. Civ. Code § 1639. Here, those words entitle HortResearch to enforce the fee-
shifting provisions.
Our analysis begins with the provision designating HortResearch as a
third-party beneficiary and defining its interests: “HortResearch . . . (the
‘Third-Party Beneficiar[y]’) ha[s] material interests in the Organic Material and the
Confidential Information . . . (collectively, ‘Third-Party Interests’).” Both
“Organic Material” and “Confidential Information” are defined terms. Organic
Material means the kiwi fruit and plants that the farmers were to receive under the
contracts. Confidential Information includes “Trade Secrets” and “any and all
information, know-how and data (technical or non-technical) which relate to
Organic Material . . . which . . . have been made available and/or disclosed to” the
farmers. Trade Secrets also includes “the terms and conditions of this Agreement.”
The contract uses these interests to define the third-party beneficiaries’
rights:
Each of the Third-Party Beneficiaries is entitled to the benefit of the
representations, warranties and covenants of the Grower contained
herein to the extent of its Third-Party Interests, and may (as
third-party beneficiaries or otherwise) enforce this Agreement against
the Grower and sue the Grower as if each such entity were a party
hereto . . . .
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Thus, HortResearch may “benefit” from, “enforce,” and “sue” under the contract,
but only “to the extent of its Third-Party Interests.”
The underlying lawsuit and the fee-shifting provisions are within the
“extent” of HortResearch’s interests. The lawsuit implicated those interests
because its challenge to HortResearch’s representations that gold-flesh kiwis
would flourish in California attacked HortResearch’s “know how . . . relate[d] to
Organic Material.” The fee-shifting provision is within the extent of
HortResearch’s interests because it is a “term[] . . . of this Agreement.”
Accordingly, HortResearch is entitled to enforce the fee-shifting provision “as if
[it] were a party.”
Because the contracts entitle HortResearch to its fees, we need not address
alternative arguments. The order denying its fees is VACATED and the case is
REMANDED so that the district court can award reasonable attorneys’ fees and
costs to HortResearch, including its costs on appeal.
4