Eldee-K Rental Properties, LLC v. Directv, Inc.

748 F.3d 943, 59 Communications Reg. (P&F) 1736, 2014 WL 1378120, 2014 U.S. App. LEXIS 6510
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 9, 2014
Docket11-17994
StatusPublished
Cited by11 cases

This text of 748 F.3d 943 (Eldee-K Rental Properties, LLC v. Directv, Inc.) 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
Eldee-K Rental Properties, LLC v. Directv, Inc., 748 F.3d 943, 59 Communications Reg. (P&F) 1736, 2014 WL 1378120, 2014 U.S. App. LEXIS 6510 (9th Cir. 2014).

Opinion

OPINION

IKUTA, Circuit Judge:

The district court dismissed Eldee-K Rental Properties, LLC’s complaint against DIRECTV, Inc. for lack of subject matter jurisdiction. Because the district court correctly determined that Eldee-K’s action was a local action under California law, and therefore had to be brought in Connecticut where the real property at issue is located, we affirm the district court’s dismissal of this action.

I

Eldee-K Rental Properties, LLC, is a limited liability company organized under the laws of Connecticut. It owns a residential apartment building in Hartford, Connecticut.

In May 2011, Eldee-K filed a complaint against DIRECTV, a direct broadcast satellite television provider, alleging that DIRECTV has a policy of installing satellite reception equipment in common areas of apartment buildings and other multiple dwelling units (such as the building’s exterior walls or rooftop) without the landlord’s consent. According to the complaint, DIRECTV requires prospective subscribers who reside in multiple dwelling units to complete an installation form authorizing the installation of equipment in common areas. A tenant can either complete Part 1 of the form by obtaining the landlord’s signature, or Part 2 of the form by certifying that the landlord has verbally authorized the installation or that the lease does not require landlord consent. 1 The complaint alleges that DIRECTV permanently installed equipment at Eldee-K’s apartment building, including by drilling holes in the exterior of the building, without obtaining Eldee-K’s consent. Beyond alleging that DIRECTV drilled holes in the building’s exterior, the complaint did not identify the specific common areas on its property where the installation took place.

Based on these allegations, Eldee-K sought to certify a class of all landlords who own and lease residential multiple dwelling units in the United States on which DIRECTV installed equipment based on Part 2 of its installation form. Eldee-K brought three causes of action against DIRECTV. First, Eldee-K alleged that DIRECTV violated California’s Unfair Competition Law (UCL), Cal. Bus. & ProfiCode §§ 17200-10, which makes a person who engages in unfair competition subject to an injunction and other civil penalties. The complaint alleged that DIRECTV’S use of Part 2 of the installation form was an unfair business act that violated the policies embodied in California Penal Code § 602(m), which makes “[e]n-tering and occupying real property or structures of any kind without the consent of the owner” a misdemeanor criminal offense. Through this claim, Eldee-K sought to enjoin DIRECTV from using Part 2 of the installation form.

Eldee-K’s second and third causes of action were for negligence. Eldee-K alleged that DIRECTV negligently breached *946 a legal duty not to install its equipment in common areas of apartment buildings owned by the putative class without the landlord’s consent. Eldee-K sought declaratory and injunctive relief in Count II to prohibit DIRECTV’S use of its Part 2 policy. In its third count, Eldee-K sought damages for the conduct.

DIRECTV moved to dismiss the complaint on the ground that the district court lacked subject matter jurisdiction over El-dee-K’s claims under the local action doctrine, which vests exclusive jurisdiction over specified types of actions involving real property in the forum where that property is located. DIRECTV argued that Eldee-K’s claims are local in nature, and therefore must be brought in Connecticut, the state where the property is located.

The district court agreed. It read El-dee-K’s complaint to focus on DIRECTV’S “unauthorized entry onto property” pursuant to Part 2 of the installation form. Because “the key harm” in the complaint related to trespass on real property situated in Connecticut, the district court held that the local action doctrine deprived it of jurisdiction to adjudicate the claim. The district court therefore dismissed it with prejudice under Rule 12(b)(1) of the Federal Rules of Civil Procedure. Eldee-K timely appealed.

We have jurisdiction to review Eldee-K’s appeal under 28 U.S.C. § 1291. We review de novo district court dismissals of actions based on Rule 12(b)(1). Viewtech, Inc. v. United States, 653 F.3d 1102,1103-04 (9th Cir.2011).

II

To determine whether the district court correctly applied the local action doctrine in this context, it is helpful to review the history and current status of this longstanding rule.

A

The local action doctrine has an ancient heritage. According to legal historians, the distinction between local and transitory actions began to arise in England during the 15th and 16th centuries. See William H. Wicker, The Development of the Distinction Between Local and Transitory Actions, 4 Tenn. L.Rev. 55, 58-59 (1925). Before the 15th century, jurors relied on their personal knowledge of a dispute to decide cases. Witnesses, as we use them today, played no role in court. See id. at 55-56; cf. Livingston v. Jefferson, 15 Fed.Cas. 660, 663 (C.C.D.Va.1811) (op. of Marshall, J.). For this reason, a plaintiff had to plead the location of the dispute, and at least some members of every jury had to be drawn from that location. See Wicker, supra, at 55, 59-60. After witnesses began to testify during the 15th century, courts started to relax the rules requiring jurors to come from the vicinity of the dispute. See id. at 55-57, 60.

The old rules were maintained, however, for actions directly operating on real estate or personal actions closely connected with real property, and courts still required plaintiffs to plead and prove the location where these causes of action arose. See id. at 62. Such actions were referred to as local actions and were required to be brought in the county where the real estate was located, while actions for which the plaintiff did not need to identify the location of the dispute were called transitory actions and could be brought in any county in England. See id. at 61-62. By the late 18th century, leading jurists had observed that these distinctions were outmoded, see, e.g., Mostyn v. Fabrigas, (1774) 1 Cowp. 161, 176 (K.B.) (op. of Lord Mansfield) (quoted in Wicker, supra, at 63), but they nevertheless persisted as part of English common law.

*947 The distinction between local and transitory actions was recognized as part of American common law in the leading case of Livingston v. Jefferson. In this case, Chief Justice John Marshall, sitting as a circuit judge in Virginia, held that a federal court in Virginia lacked subject matter jurisdiction to adjudicate an action against former President Thomas Jefferson to recover damages for trespass on real estate in Louisiana. See 15 Fed.Cas. at 665.

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748 F.3d 943, 59 Communications Reg. (P&F) 1736, 2014 WL 1378120, 2014 U.S. App. LEXIS 6510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eldee-k-rental-properties-llc-v-directv-inc-ca9-2014.