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Diaz v. First American Home Buyers Protection Corp.

Citations: 732 F.3d 948; 86 Fed. R. Serv. 3d 1028; 2013 U.S. App. LEXIS 20327; 2013 WL 5495702Docket: 11-57239

Court: Court of Appeals for the Ninth Circuit; October 4, 2013; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves a class action lawsuit initiated by a plaintiff against a home warranty company, alleging breaches of contract, misrepresentation, and bad faith in relation to the company's warranty services. The district court dismissed claims of unfair competition and concealment, and after denying class certification, the company extended a Rule 68 offer to settle the plaintiff's individual claims, which was not accepted. Consequently, the district court dismissed the remaining claims as moot, asserting that the unaccepted offer deprived the court of jurisdiction as it would have fully satisfied the claims. On appeal, the Ninth Circuit vacated the district court's dismissal, aligning with arguments that an unaccepted Rule 68 offer does not moot a claim, as it leaves the plaintiff's interest in the litigation intact and the court's ability to provide relief viable. The appellate court emphasized that the concept of mootness requires the impossibility of effective relief, which was not the case here. The matter was remanded for further proceedings, reinstating the plaintiff's claims and allowing her to continue her legal action. Additionally, it was determined that the dismissal of concealment and unfair competition claims was improper, and jurisdiction was lacking for reviewing the motion to correct the record. Each party was instructed to bear its own appellate costs.

Legal Issues Addressed

Class Certification and Personal Stake

Application: Plaintiff maintained a personal stake in appealing the denial of class certification despite the individual claims being subject to a Rule 68 offer.

Reasoning: She maintained a personal stake in appealing the denial of class certification.

Judgment and Unaccepted Offers

Application: Justice Kagan's view, reflected in the case, is that an unaccepted offer remains a legal nullity, preserving the plaintiff's claim for relief.

Reasoning: Justice Kagan emphasized that a case is only moot when no court can provide effective relief to the prevailing party.

Mootness and Rule 68 Offers

Application: The Ninth Circuit ruled that an unaccepted Rule 68 offer that would fully satisfy a plaintiff's claim does not render the claim moot.

Reasoning: The Ninth Circuit panel, led by Judge Fisher, vacated the district court's dismissal, ruling that an unaccepted Rule 68 offer that would fully satisfy a plaintiff's claim does not render the claim moot.

Subject Matter Jurisdiction and Mootness

Application: The district court's dismissal of claims based on mootness was vacated as the unaccepted offer did not remove the court's ability to provide relief.

Reasoning: Therefore, her claim was not moot, and the district court improperly dismissed it for lack of jurisdiction.