Movsesian v. Victoria Versicherung AG

578 F.3d 1052, 2009 U.S. App. LEXIS 18737, 2009 WL 2526676
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 20, 2009
Docket07-56722
StatusPublished
Cited by5 cases

This text of 578 F.3d 1052 (Movsesian v. Victoria Versicherung AG) 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
Movsesian v. Victoria Versicherung AG, 578 F.3d 1052, 2009 U.S. App. LEXIS 18737, 2009 WL 2526676 (9th Cir. 2009).

Opinions

Opinion by Judge THOMPSON; Dissent by Judge PREGERSON.

THOMPSON, Senior Circúit Judge:

Section 354.4 of the California Code of Civil Procedure extends the statute of limitations until 2010 for claims arising out of life insurance policies issued to “Armenian Genocide vietim[s].” Cal.Civ.Proc.Code § 354.4(c) (West 2006). The primary issue in this appeal is whether § 354.4 interferes with the national government’s conduct of foreign relations. We conclude that it does, and accordingly, we hold that the California statute is preempted. The district court’s order denying the Rule 12(b)(6) motion to dismiss is reversed.

[1054]*1054I. Background

In 2000, the California Legislature enacted Senate Bill 1915, which amended California’s Code of Civil Procedure to provide California courts with jurisdiction over certain classes of claims arising out of insurance policies that were held by “Armenian Genocide vitcim[s].” Sen. Bill No. 1915 (1999-2000 Reg. Sess.), 2000 Cal. Legis. Serv. 543 (West 2000), codified at Cal.Civ.Proc.Code § 354.4. The Bill also amended the Code to extend the statute of limitations for such claims until December 31, 2010. Id. Section 354.4, in its entirety, provides:

(a) The following definitions govern the construction of this section:
(1) “Armenian Genocide victim” means any person of Armenian or other ancestry living in the Ottoman Empire during the period of 1915 to 1923, inclusive, who died, was deported, or escaped to avoid persecution during that period.
(2) “Insurer” means an insurance provider doing business in the state, or whose contacts in the state satisfy the constitutional requirements for jurisdiction, that sold life, property, liability, health, annuities, dowry, educational, casualty, or any other insurance covering persons or property to persons in Europe or Asia at any time between 1875 and 1923.
(b) Notwithstanding any other provision of law, any Armenian Genocide victim, or heir or beneficiary of an Armenian Genocide victim, who resides in this state and has a claim arising out of an insurance policy or policies purchased or in effect in Europe or Asia between 1875 and 1923 from an insurer described in paragraph (2) of subdivision (a), may bring a legal action or may continue a pending legal action to recover on that claim in any court of competent jurisdiction in this state, which court shall be deemed the proper forum for that action until its completion or resolution.
(c) Any action, including any pending action brought by an Armenian Genocide victim or the heir or beneficiary of an Armenian Genocide victim, whether a resident or nonresident of this state, seeking benefits under the insurance policies issued or in effect between 1875 and 1923 shall not be dismissed for failure to comply with the applicable statute of limitation, provided the action is filed on or before December 31, 2010.
(d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

In the legislative findings accompanying the statute, the Legislature provides formal recognition to an “Armenian Genocide”:

The Legislature recognizes that during the period from 1915 to 1923, many persons of Armenian ancestry residing in the historic Armenian homeland then situated in the Ottoman Empire were victims of massacre, torture, starvation, death marches, and exile. This period is known as the Armenian Genocide.

Sen. Bill No.1915 at § 1.

Section 354.4 was modeled after §§ 354.5 and 354.6, which extended the statute of limitations until 2010 for Holocaust-era insurance claims and World War II slave labor claims, respectively. Sen. Jud. Com., analysis of Sen. Bill No. 1915 (1999-2000 Reg. Sess.) May 9, 2000, pp. 2, 4. Both of these sister statutes have been found unconstitutional, because they interfered with the national government’s foreign affairs power. Deustch v. Turner, 324 F.3d 692, 716 (9th Cir.2003) (finding § 354.6 unconstitutional); Steinberg v. Int. [1055]*1055Comm. on Holocaust Era Ins. Claims, 133 Cal.App.4th 689, 34 Cal.Rptr.3d 944, 953 (2005) (finding § 354.5 unconstitutional).

In December 2003, Vazken Movsesian (“Movsesian”) filed this class action against Victoria Verisherung AG (‘Victoria”), Ergo Veriseherungsgruppe AG (“Ergo”), and Munchener Ruekverischerungs-Gesellsehaft Aktiengesellschaft (“Munich Re”). Movsesian and his fellow class members are persons of Armenian descent who claim benefits from insurance policies issued by Victoria and Ergo. Munich Re is the parent company of Victoria and Ergo. Movsesian seeks damages from all three companies for breach of written contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and other related claims. Munich Re filed a Rule 12(b)(6) motion to dismiss the claims, arguing that the class members lacked standing to bring claims under § 354.4, and contending that it was not a proper defendant under § 354.4. Munich Re also challenged the constitutionality of § 354.4, on the grounds that it violated the due process clause of the United States Constitution and was preempted under the foreign affairs doctrine.

The district court granted Munich Re’s motion to dismiss the claims for unjust enrichment and constructive trust, and denied Munich Re’s motion to dismiss the claims for breach of contract and breach of the covenant of fair dealing. The court held that the class members had standing to bring their claims, and that Munich Re was a proper defendant under § 354.4. The court rejected Munich Re’s due process challenge, and held that § 354.4 was not preempted under the foreign affairs doctrine.

Munich Re filed a motion to certify the district court’s order for interlocutory appeal, and to stay the action pending appeal. The district court granted the motion, and stayed the case. Within the ten-day window provided by 28 U.S.C. § 1292(b), Munich Re petitioned this court for permission to pursue an interlocutory appeal, which we granted.

On appeal, the parties address three issues: first, whether § 354.4 is preempted under the foreign affairs doctrine; second, whether Munich Re is a proper defendant; and third, whether the Plaintiff-Appellees have standing to bring these claims.1 We conclude that § 354.4 impermissibly infringes on the federal government’s foreign affairs power, and is preempted. We do not reach the other issues.

On December 4, 2008, our court received a letter from the Turkish Ambassador via facsimile. Letter from Nabi Sensoy, the Turkish Republic’s Ambassador to the United States, to Molly Dwyer, Clerk of the United States Court of Appeals for the Ninth Circuit (December 4, 2008). The letter expresses Turkey’s opposition to § 354.4, and urges the court to overturn the California statute.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Museum of Fine Arts, Boston v. Seger-Thomschitz
623 F.3d 1 (First Circuit, 2010)
United States v. Zhen Zhou Wu
680 F. Supp. 2d 287 (D. Massachusetts, 2010)
Movsesian v. Victoria Versicherung AG
578 F.3d 1052 (Ninth Circuit, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
578 F.3d 1052, 2009 U.S. App. LEXIS 18737, 2009 WL 2526676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/movsesian-v-victoria-versicherung-ag-ca9-2009.