Bai v. Johnson

Court of Appeals for the Ninth Circuit·Decided August 21, 2026·No. 25-2479·Unpublished

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS AUG 21 2026 MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

XIAO YE BAI, No. 25-2479 D.C. No.

Plaintiff - Appellee, 2:20-cv-02192-RFB-EJY v.

MEMORANDUM*

CALVIN JOHNSON; BOB FAULKNER; JEREMY BEAN; JAYMIE CABRERA; JACOB HOLGUIN, erroneously named as Jacob Holquin; RONALD OLIVER; KENNETH WILLIAMS; JUAN ZELAYA; SAM QADERI; PAULA RUDOLPH, erroneously named as Paula Rudoph,

Defendants - Appellants,

SCALLEY, ONTIVEROS, OWENS, MICHAEL MINEV, JORJA POWERS, CHARLES DANIELS, DAVID RIVAS, HEATHER GARRETT, LARRY TREADWELL, KEITH MCKEEHAN, RIGNEY, CHRISTY, Nurse, STALK,

Defendants.

Appeal from the United States District Court for the District of Nevada Richard F. Boulware, II, District Judge, Presiding

*

This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3.

Argued and Submitted June 9, 2026 San Francisco, California

Before: NGUYEN and VANDYKE, Circuit Judges, and HUIE, District Judge.** Partial Concurrence and Partial Dissent by Judge VANDYKE

Defendants-Appellants (“Defendants”) appeal the district court’s denial of their motion to dismiss Plaintiff-Appellee Xiao Ye Bai’s (“Bai”) Third Amended Complaint. Bai, an inmate at a Nevada state correctional institution, sued numerous prison officials for alleged federal and state constitutional violations. We have jurisdiction under 28 U.S.C. § 1291, and we affirm in part, reverse in part, and remand.

We review de novo questions of qualified immunity, Polanco v. Diaz, 76 F.4th 918, 925 (9th Cir. 2023), and Eleventh Amendment sovereign immunity, Doe v. Regents of the Univ. of Cal., 891 F.3d 1147, 1152 (9th Cir. 2018).

State Law Claims 1. The district court lacked jurisdiction over Bai’s state law claims. To perfect a waiver of Nevada’s sovereign immunity, Bai was required to include Nevada as a defendant in his tort action arising out of an act “within the scope of a person’s public duties or employment.” Nev. Rev. Stat. §§ 41.0337(1), 41.031. Nevada has not waived its Eleventh Amendment immunity from suit in federal

**

The Honorable Robert Steven Huie, United States District Judge for the Southern District of California, sitting by designation.

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court, and Congress has not abrogated state sovereign immunity for actions brought under 42 U.S.C. § 1983. See O’Connor v. State of Nev., 686 F.2d 749, 750 (9th Cir. 1982). Because Nevada is an indispensable party to the state law claims, and the district court lacked jurisdiction over Nevada, the district court erred in failing to dismiss Bai’s state law claims. See Hirst v. Gertzen, 676 F.2d 1252, 1264 (9th Cir. 1982); see also Cardenas-Ornelas v. Johnson, No. 24-6755, 2026 WL 237695 (9th Cir. Jan. 29, 2026).

Bai argues that Section 41.0337 does not apply to his claims raised against the Defendants in their individual capacities. But Bai’s complaint alleges that “[a]ll mentioned defendants were acting within the scope of their employment at the times of the incidents giving rise to the causes of action.”1 Sovereign immunity, therefore, applies. We reverse the district court’s denial of the motion to dismiss Bai’s state law claims.

Qualified Immunity 2. As a preliminary matter, Bai argues that we lack jurisdiction to review the district court’s denial of qualified immunity because “the fact-bound disputes in Defendants’ brief are not appropriate for an interlocutory appeal.” See Johnson v. Jones, 515 U.S. 304, 307 (1995). However, we have jurisdiction because our

1 We also find that Defendants did not waive their Eleventh Amendment sovereign immunity defense because they explicitly raised this issue below.

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review rests on legal and not factual disputes. See Morales v. Fry, 873 F.3d 817, 821 (9th Cir. 2017) (“We hold that the ‘clearly established’ inquiry [for qualified immunity] is a question of law that only a judge can decide.”); see also Ashcroft v. Iqbal, 556 U.S. 662, 674–75 (2009) (“Evaluating the sufficiency of a complaint is not a ‘fact-based’ question of law, so the problem the Court sought to avoid in Johnson is not implicated here.”).

In determining whether the officers are entitled to qualified immunity, we ask: (1) “[t]aken in the light most favorable to the party asserting the injury,” whether “the facts alleged show the officer’s conduct violated a constitutional right”; and (2) “if a violation could be made out on a favorable view of the parties’ submissions,” whether the right was “clearly established.” Saucier v. Katz, 533 U.S. 194, 201 (2001).

Due Process Claim

a. Defendants argue that Bai’s Fourteenth Amendment due process claim should be dismissed for three reasons: (1) Bai did not sufficiently allege the personal involvement of Defendants Zelaya, Garret, or Rudolph; (2) the deprivation of Bai’s funds did not violate due process; and (3) Bai had an adequate post-deprivation remedy under state law. We reject each of these arguments.

First, Bai sufficiently alleges the personal involvement of Defendants Zelaya, Garret, and Rudolph. Bai alleges that Zelaya conducted the hearing

4 25-2479

leading to a finding of restitution, Garret communicated with Bai about his restitution amount and charged his account, and Rudolph is the Inmate Banking Officer at the prison. Second, Bai sufficiently alleges that the deprivation of his inmate trust account funds violated due process. Defendants claim that Bai has “been provided all that due process requires” because prison officials are allowed to deduct funds from an inmate’s trust account to fulfill restitution obligations, see Craft v. Ahuja, 475 Fed. Appx. 649, 650, 2012 WL 688411, at *1 (9th Cir. 2012), including for medical treatment relating to self-inflicted injuries, see Nev. Rev. Stat. § 209.246. However, this does not resolve Bai’s dispute regarding the prison’s determination and calculation of the restitution amount, his inability to contest the amount, or the hearing process which led to the determination that his injuries were self-inflicted. At this stage in the proceedings, Bai has sufficiently alleged a violation of his clearly established Fourteenth Amendment right. See Shinault v. Hawks, 782 F.3d 1053, 1059 (9th Cir. 2015) (“At a minimum, due process requires that inmates be informed of their financial liability (including the basis for the calculation), and have a meaningful opportunity to contest the assessment before significant assets are deducted or frozen.”).

Finally, the availability of a post-deprivation remedy under Nevada law does not foreclose Bai’s due process claim where, as here, the state officials were “acting pursuant to an[] established state procedure.” Zinermon v. Burch, 494 U.S.

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113, 130 (1990); see also Zimmerman v. City of Oakland, 255 F.3d 734, 738 (9th Cir. 2001) (explaining that “postdeprivation remedies [can]not save an otherwise unconstitutional act from unconstitutionality in cases in which the state officer acted pursuant to some established procedure.”).

We affirm the district court’s denial of qualified immunity as to Bai’s due process claim.

First Amendment Claim

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