Hoffman v. May

313 F. App'x 955
Court of Appeals for the Ninth Circuit·Decided February 27, 2009·No. Nos. 07-55538, 07-55564, 07-55580·Published·Cited by 3 cases

Opinion

MEMORANDUM **

Peter Hoffman and Cinevisions (referred to collectively as “Hoffman”) appeal the district court’s denial of Hoffman’s motion to remand, and its Rule 12(b)(6) dismissal of the claims asserted against Ap-pellees Laurie May and Alan Salke. Salke cross-appeals the district court’s denial of his motion for sanctions under Federal Rule of Civil Procedure (“Fed. R. Civ.P.”) 11, and his motion to have Hoffman declared a vexatious litigant. May cross-appeals the district court’s implicit denial of her motion to strike Hoffman’s first amended complaint pursuant to California’s anti-SLAPP statute, California Civil Procedure Code (“Cal.Civ.Proc.Code”) § 425.16. We have jurisdiction pursuant to 28 U.S.C. § 1291, and we affirm the dis[957] trict court’s denial of the motion to remand, the motion for Rule 11 sanctions, the motion to declare Hoffman a vexatious litigant, and its implicit denial of May’s anti-SLAPP motion. We also affirm the district court’s dismissal of the claims against Salke and May pursuant to Fed. R.Civ.P. 12(b)(6).1

Hoffman filed an action against Salke and May in state court, asserting claims against both for equitable indemnity and equitable contribution. By this action, Hoffman sought to hold Salke and May liable for an award of attorneys’ fees rendered against Hoffman in an arbitration between him and Jonesfilm.2 Salke, a California resident, removed the action to district court, alleging fraudulent joinder and moving for dismissal pursuant to Fed. R.Civ.P. 12(b)(6).3 The district court granted Salke’s motion to dismiss and denied Hoffman’s motion to remand.

We review a district court’s dismissal for failure to state a claim de novo, Decker v. Advantage Fund Ltd., 362 F.3d 593, 595-96 (9th Cir.2004), as well as its denial of a motion to remand. United Computer Sys. v. AT & T Info. Sys., 298 F.3d 756, 760 (9th Cir.2002).

“Fraudulent joinder is a term of art. If the plaintiff fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state, the joinder of the resident defendant is fraudulent.” McCabe v. General Foods Corp., 811 F.2d 1336, 1339 (9th Cir.1987) (citation omitted).

The district court correctly determined that Hoffman failed to state a claim against Salke, and that such failure was obvious under California law. Equitable indemnity “applies only among defendants who are jointly and severally liable to the [injured party].” BFGC Architects Planners, Inc. v. Forcum/Mackey Constr., Inc., 119 Cal.App.4th 848, 852, 14 Cal.Rptr.3d 721 (Ct.App.2004). Although equitable indemnity “is not limited to the old common term joint tortfeasor, ... there must be some basis for tort liability against the proposed indemnitor.” Id. (internal quotations omitted). Here, the injured party is Jonesfilm, and its injuries are the attorneys’ fees incurred in arbitrating Hoffman’s breach of contract. Hoffman failed to allege facts connecting Salke to that harm or otherwise demonstrating a basis for tort liability against him.

Hoffman’s assertion of “implied contractual indemnity” is also unavailing. “ ‘An action for implied contractual indemnity is ... grounded upon the indemnitor’s breach of duty owing to the indemnitee to properly perform its contractual duties.’ ” Bay Dev. v. Super. Ct., 50 Cal.3d 1012, 1039-40, 269 Cal.Rptr. 720, 791 P.2d 290 (Cal.1990) (quoting Bear Creek Planning Com. v. Title Ins. & Trust Co., 164 Cal.App.3d 1227, 1238-39, 211 Cal.Rptr. 172 (Ct.App.1985)) (emphasis in original). It is based “upon a contractual relationship between the indemnitee and indemnitor from which is implied an obligation on the part of the indemnitor to assume and pay any foreseeable damages assessed against the [958] indemnitee as a result of the indemnitor’s breach of contact.” Bear Creek Planning Com., 164 Cal.App.3d at 1239, 211 Cal. Rptr. 172. Hoffman failed to allege a contractual relationship between him and Salke, let alone one that implied an obligation to pay Jonesfilm’s fee awards. Moreover, Hoffman’s motion to remand pointed to no facts linking Salke’s actions to the fee award based on contract or any other grounds. Accordingly, under settled California law, Hoffman’s failure to state a claim against Salke for equitable indemnity was “obvious.” McCabe, 811 F.2d at 1339.

Hoffman’s failure to state a claim for equitable contribution was also obvious, because a “right of contribution can come into existence only after rendition of a judgment declaring more than one defendant jointly liable to the plaintiff.” Coca-Cola Bottling Co. v. Lucky Stores, Inc., 11 Cal.App.4th 1372, 1378, 14 Cal.Rptr.2d 673 (Ct.App.1992) (citations omitted). There is no such judgment against Salke, and Hoffman’s assertion that a common law claim for contribution does not require a judgment is unavailing. See id., at 1378, 1379 & n. 6, 14 Cal.Rptr.2d 673 (noting that equitable contribution is a creature of statute and was not recognized at common law). While a claim for equitable indemnity or contribution can be properly made in the same proceeding that initially determines liability, see, e.g., Yamaha Motor Corp. v. Paseman, 219 Cal.App.3d 958, 963 & n. 1, 268 Cal.Rptr. 514 (Ct.App.1990), this is not the posture of this case, where liability was previously determined in a separate arbitration proceeding.

Based on the foregoing, the district court properly granted Salke’s motion to dismiss and denied Hoffman’s motion to remand based on the pleadings and evidence before it. See Williams v. Costco Wholesale Corp., 471 F.3d 975, 976 (9th Cir.2006) (“propriety of removal is determined solely on the basis of the pleadings filed in state court”) (citations omitted).

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Hoffman v. May, 313 F. App'x 955 (9th Cir. 2009).

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