Damian Langere v. Verizon Wireless Services

983 F.3d 1115
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 29, 2020
Docket19-55747
StatusPublished
Cited by61 cases

This text of 983 F.3d 1115 (Damian Langere v. Verizon Wireless Services) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Damian Langere v. Verizon Wireless Services, 983 F.3d 1115 (9th Cir. 2020).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

DAMIAN LANGERE, on behalf of No. 19-55747 himself and others similarly situated, Plaintiff-Appellant, D.C. No. 2:15-cv-00191- v. DDP-AJW

VERIZON WIRELESS SERVICES, LLC, Defendant-Appellee. OPINION

Appeal from the United States District Court for the Central District of California Dean D. Pregerson, District Judge, Presiding

Argued and Submitted November 9, 2020 Pasadena, California

Filed December 29, 2020

Before: Barrington D. Parker, Jr., * Paul J. Watford, and Patrick J. Bumatay, Circuit Judges.

Opinion by Judge Bumatay

* The Honorable Barrington D. Parker, Jr., United States Circuit Judge for the U.S. Court of Appeals for the Second Circuit, sitting by designation. 2 LANGERE V. VERIZON WIRELESS SERVS.

SUMMARY **

Arbitration / Appellate Jurisdiction

The panel dismissed for lack of jurisdiction a Verizon Wireless customer’s appeal from the district court’s orders denying his motions to compel arbitration and reconsideration, and from his own voluntary dismissal, in a case in which the plaintiff brought a putative class action against Verizon for violation of federal and state consumer- protection laws.

In Omstead v. Dell, Inc., 594 F.3d 1081 (9th Cir. 2010), this court held that a plaintiff can avoid arbitration and manufacture appellate jurisdiction simply by voluntarily dismissing his claims with prejudice. The panel concluded that Omstead has been effectively overruled by Microsoft Corp. v. Baker, 137 S. Ct. 1702 (2017). The panel therefore held that a plaintiff does not create appellate jurisdiction by voluntarily dismissing his claims with prejudice after being forced to arbitrate them.

** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. LANGERE V. VERIZON WIRELESS SERVS. 3

COUNSEL

Jordan S. Esensten (argued) and Robert L. Esensten, Esensten Law, Los Angeles, California, for Plaintiff- Appellant.

Julia B. Strickland (argued) and David W. Moon, Stroock Stroock & Lavan LLP, Los Angeles, California, for Defendant-Appellee.

OPINION

BUMATAY, Circuit Judge:

After being compelled to arbitrate by court order, can a plaintiff avoid arbitration and manufacture appellate jurisdiction simply by voluntarily dismissing his claims with prejudice? We’ve previously answered that question in the affirmative. See Omstead v. Dell, Inc., 594 F.3d 1081 (9th Cir. 2010). But a later decision of the Supreme Court has forced us to reconsider. See Microsoft Corp. v. Baker, 137 S. Ct. 1702 (2017). After finding that our previous approach is clearly irreconcilable with that outlined by the Court, we change our answer.

We conclude that our decision in Omstead has been effectively overruled by the Court’s decision in Microsoft. And so we hold that a plaintiff does not create appellate jurisdiction by voluntarily dismissing his claims with prejudice after being forced to arbitrate them.

I.

Damian Langere is a Verizon Wireless customer who purchased the company’s extended warranty program for his 4 LANGERE V. VERIZON WIRELESS SERVS.

cellphone. He was unhappy to find out that the Verizon warranty offers similar protections to those already provided by his cellphone’s manufacturer for the first year. He therefore brought this putative class action against Verizon for the violation of federal and state consumer-protection statutes. Verizon moved to compel arbitration and stay judicial proceedings under 9 U.S.C. § 4. 1 The district court obliged and granted the motion to compel arbitration. It also denied Langere’s later motion for reconsideration.

Ordinarily, a plaintiff in this position has two choices to appeal: arbitrate the claims to completion and then appeal as of right, see 9 U.S.C. § 16(a)(1)(3), (b)(1)–(3), or hope that the courts approve an interlocutory appeal, id. § 16(b); 28 U.S.C. § 1292(b). But Langere tried something different. Finding himself in a “procedural bind,” Langere voluntarily dismissed his claims with prejudice, as he was entitled to under Federal Rule of Civil Procedure 41(a)(1), without leave from the district court. 2 He did so because arbitration was not “economically feasible,” and he felt that appealing the arbitration order was his only viable option. He assured the district court that he was “not refusing to prosecute his claims,” but only refusing to do so in a way that he thought “would be futile and uneconomical.”

1 That section permits a party aggrieved by another party’s refusal to arbitrate to move the district court for an order directing that arbitration proceed as agreed by the parties. 2 Under Rule 41(a)(1)(A)(i), a plaintiff can file for voluntary dismissal without order of the court if filed before the opposing party serves either an answer or a motion for summary judgment. Here, Verizon did not file either and so Langere’s dismissal was procedurally proper. LANGERE V. VERIZON WIRELESS SERVS. 5

Langere then appealed his own voluntary dismissal, and the district court’s orders, to this court. Verizon moved to dismiss for lack of appellate jurisdiction. A motions panel of this court denied that motion without prejudice to renew during the merits consideration of the case. Verizon so renewed its concern about appellate jurisdiction before this panel. We now grant that motion.

II.

A.

Generally speaking, we may only review decisions from district courts that are “final.” See 28 U.S.C. § 1291. That means that a party normally must raise all their claims of error in a single appeal following a final judgment. Flanagan v. United States, 465 U.S. 259, 263 (1984). This principle, called the final-judgment rule, is fundamental to our legal system. See McLish v. Roff, 141 U.S. 661, 665–66 (1891). Few have said it better than Justice Frankfurter: “Since the right to a judgment from more than one court is a matter of grace and not a necessary ingredient of justice, Congress from the very beginning has, by forbidding piecemeal disposition on appeal of what for practical purposes is a single controversy, set itself against enfeebling judicial administration.” Cobbledick v. United States, 309 U.S. 323, 325 (1940). The Supreme Court, therefore, has “resisted efforts to stretch § 1291 to permit appeals of right that would erode the finality principle and disserve its objectives.” Microsoft, 137 S. Ct. at 1712.

On top of the general final-judgment rule, Congress has carefully designed a framework for appeals in the arbitration context. In the Federal Arbitration Act (“FAA”), Congress has expressed “a national policy favoring arbitration.” Southland Corp. v. Keating, 465 U.S. 1, 10 (1984). For that 6 LANGERE V. VERIZON WIRELESS SERVS.

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