Movsesian v. Victoria Versicherung Ag

671 F.3d 856
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 23, 2012
Docket07-56722
StatusPublished

This text of 671 F.3d 856 (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, 671 F.3d 856 (9th Cir. 2012).

Opinion

670 F.3d 1067 (2012)

Vazken MOVSESIAN; Harry Arzoumanian; Garo Ayaltin; Miran Khagerian; Ara Khajerian, individually and on behalf of all others similarly situated including thousands of senior citizens, disabled persons, and orphans as well as on behalf of the general public and acting in the public interest, Plaintiffs-Appellees,
v.
VICTORIA VERSICHERUNG AG, a German corporation; Ergo Versicherungsgruppe AG, a German corporation, Defendants, and
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft AG, a German corporation, Defendant-Appellant.

No. 07-56722.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted December 14, 2011.
Filed February 23, 2012.

*1069 Neil M. Soltman, Mayer Brown LLP, Los Angeles, CA, for the defendant-appellant.

Kathryn Lee Boyd, Schwarcz, Rimberg, Boyd & Rader, LLP, Los Angeles, CA; Mark J. Geragos, Geragos & Geragos, APC, Los Angeles, CA; and Richard L. Kellner, Kabateck Brown Kellner LLP, Los Angeles, CA, for the plaintiffs-appellees.

David M. Balabanian, Bingham McCutchen LLP, San Francisco, CA; David Saltzman, Saltzman & Evinch, PC, Washington, D.C.; Marco Simons, Earthrights International, Washington, D.C.; Antonette Benita Cordero, Deputy Attorney General, Los Angeles, CA; and Igor V. Timofeyev, Paul Hastings LLP, Washington, D.C., for the amici curiae.

Before: ALEX KOZINSKI, Chief Judge, MARY M. SCHROEDER, STEPHEN REINHARDT, SIDNEY R. THOMAS, BARRY G. SILVERMAN, SUSAN P. GRABER, M. MARGARET McKEOWN, RAYMOND C. FISHER, RICHARD A. PAEZ, JOHNNIE B. RAWLINSON, and SANDRA S. IKUTA, Circuit Judges.

OPINION

GRABER, Circuit Judge:

Section 354.4 of the California Code of Civil Procedure vests California courts with jurisdiction over certain insurance claims brought by "Armenian Genocide victim[s]" and extends the statute of limitations for such claims. Under that statute, individual Plaintiffs, including Vazken Movsesian, filed this class action against various insurers. One of the defendant insurance companies filed a Federal Rule of Civil Procedure 12(b)(6) motion to dismiss the claims, arguing, among other things, that section 354.4 is preempted under the foreign affairs doctrine. See U.S. Const. art. VI, cl. 2 (Supremacy Clause) ("This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding."). We hold that section 354.4 is preempted and, accordingly, *1070 reverse the district court's contrary ruling.[1]

FACTUAL AND PROCEDURAL HISTORY

In 2000, the California legislature enacted section 354.4, which provides that California courts may entertain various insurance claims brought by "Armenian Genocide victim[s]" arising out of policies issued or in effect between 1875 and 1923. The law also extends the statute of limitations for such claims. Section 354.4 reads in relevant part:

(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.[[2]]

In 2003, Movsesian and several other individuals filed this class action against Defendants Victoria Versicherung AG ("Victoria"), Ergo Versicherungsgruppe AG ("Ergo"), and Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft AG ("Munich Re"). Munich Re is the parent company of Victoria and Ergo. The class consists of persons of Armenian descent who claim benefits under Defendants' life insurance policies issued or in effect in the Ottoman Empire between 1875 and 1923.

Plaintiffs seek damages from Defendants on theories of breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment, and constructive trust. Plaintiffs rely on section 354.4 in order to bring their claims now. Munich Re moved to dismiss all claims, Fed.R.Civ.P. 12(b)(6), arguing that section 354.4 is unconstitutional because it violates the Due Process Clause of the 14th Amendment to the Constitution and because *1071 it is preempted under the foreign affairs doctrine. Munich Re also asserted that it is not a proper defendant and that the class members lack standing to bring claims under section 354.4.

The district court held that section 354.4 is not preempted under the foreign affairs doctrine. It also held that the class members have standing to bring their claims, that Munich Re is a proper defendant, and that section 354.4 does not violate the Due Process Clause. The court denied Munich Re's motion to dismiss the claims for breach of contract and breach of the covenant of good faith and fair dealing, but granted Munich Re's motion to dismiss the unjust enrichment and constructive trust claims.

Munich Re filed a motion to certify the district court's order for interlocutory appeal. The district court granted the motion and stayed the case. Munich Re timely petitioned this court for permission to pursue an interlocutory appeal, and we granted the petition. On appeal, the parties addressed three issues: (1) whether section 354.4 is preempted under the foreign affairs doctrine; (2) whether Munich Re is a proper defendant; and (3) whether the class members have standing to bring their claims. A three-judge panel affirmed. Movsesian v. Victoria Versicherung AG, 629 F.3d 901 (9th Cir.2010). We then took this case en banc, thereby vacating the panel's opinion. Movsesian v.

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Cite This Page — Counsel Stack

Bluebook (online)
671 F.3d 856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/movsesian-v-victoria-versicherung-ag-ca9-2012.