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Justia Daily Opinion Summaries

US Court of Appeals for the Ninth Circuit
March 23, 2021

Table of Contents

Academy of Country Music v. Continental Casualty Co.

Civil Procedure, Insurance Law

Allied Premier Insurance v. United Financial Casualty Co.

Insurance Law

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US Court of Appeals for the Ninth Circuit Opinions

Academy of Country Music v. Continental Casualty Co.

Docket: 20-55589

Opinion Date: March 22, 2021

Judge: Consuelo Maria Callahan

Areas of Law: Civil Procedure, Insurance Law

In 2020, the Academy filed suit in state court alleging that Continental breached an insurance policy by denying coverage for a claim asserted against it by a former executive. After removal to the district court, the district court issued a sua sponte order remanding the case to state court. The Ninth Circuit concluded that the district court's transmittal of its sua sponte order remanding this civil action to a state court based solely on the notice of removal does not deprive federal courts of jurisdiction. The panel also concluded that despite the district court's characterization of its order, 28 U.S.C. 1447(d) does not bar the panel's review because jurisdiction could not be determined when the district court issued its sua sponte order. The panel explained that section 1447(d) bars review only of a remand order that is based on a colorable section 1447(c) ground. In this case, the district court's requirement that a notice of removal prove subject matter jurisdiction is contrary to Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 89 (2014), and accordingly, is not a "colorable" ground under section 1447(c). Accordingly, the panel vacated the district court's remand order.

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Allied Premier Insurance v. United Financial Casualty Co.

Docket: 20-55099

Opinion Date: March 22, 2021

Judge: Diarmuid Fionntain O`Scannlain

Areas of Law: Insurance Law

The Ninth Circuit certified to the California Supreme Court the following question: Under California's Motor Carriers of Property Permit Act, Cal. Veh. Code 34600 et seq., does a commercial automobile insurance policy continue in full force and effect until the insurer cancels the corresponding Certificate of Insurance on file with the California Department of Motor Vehicles, regardless of the insurance policy's stated expiration date?

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