Yelp Inc. v. Paxton

137 F.4th 944
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 15, 2025
Docket24-581
StatusPublished
Cited by13 cases

This text of 137 F.4th 944 (Yelp Inc. v. Paxton) 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
Yelp Inc. v. Paxton, 137 F.4th 944 (9th Cir. 2025).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

YELP INC., No. 24-581 D.C. No. Plaintiff - Appellant, 3:23-cv-04977- TLT v.

KEN PAXTON, in his official capacity as Attorney General of OPINION Texas,

Defendant - Appellee.

Appeal from the United States District Court for the Northern District of California Trina L. Thompson, District Judge, Presiding

Argued and Submitted December 4, 2024 San Francisco, California

Filed May 15, 2025

Before: Mark J. Bennett, Daniel A. Bress, and Danielle J. Forrest, Circuit Judges.

Opinion by Judge Bress 2 YELP INC. V. PAXTON

SUMMARY *

Younger Abstention

The panel affirmed the district court’s dismissal pursuant to Younger v. Harris, 401 U.S. 37 (1971), of an action brought by Yelp, a company that publishes consumer reviews of businesses, seeking to enjoin the Texas Attorney General’s civil enforcement action against it in Texas state court concerning Yelp’s since-withdrawn consumer notice for crisis pregnancy centers (CPCs). In 2022, Yelp introduced a new notification on Yelp business pages for CPCs that informed consumers that the businesses typically offer limited medical services. After objections from a number of state Attorney Generals that the notification was misleadingly overbroad and discriminatory, Yelp replaced this notice with a second notice that stated that CPCs did not offer abortions or abortion referrals. Two months later, Texas Attorney General Paxton initiated an investigation of Yelp pertaining to the first notice and subsequently sent Yelp a notice of intent to file suit on the grounds that the first notice violated the Texas Deceptive Trade Practices – Consumer Protection Act (DTPA). Yelp then filed the instant lawsuit pursuant to 42 U.S.C. § 1983 against Paxton, alleging First Amendment retaliation. The next day Paxton filed a state court action against Yelp for violations of the DTPA. Yelp moved for a preliminary injunction in the federal litigation to enjoin Paxton from further action, while Paxton sought to dismiss the federal

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. YELP INC. V. PAXTON 3

case. The district court dismissed the federal case based on the Younger abstention doctrine, which reflects a national policy forbidding federal courts from interfering with pending state judicial proceedings. The parties do not dispute that the requirements for Younger abstention were met in this case: the state proceedings were ongoing, involved quasi-criminal enforcement, implicated an important state interest, and permitted federal constitutional defenses, and the federal action would have the effect of the enjoining the proceedings. Rather, Yelp alleges that abstention was not warranted because the bad faith exception to Younger applied. The panel held that Younger’s narrow bad faith exception did not apply. Yelp had not sufficiently established that the Texas civil enforcement action was brought without a reasonable expectation of obtaining a valid judgment or was facially meritless. Nor was it clear or obvious that applying the DTPA to Yelp’s first notice would violate Yelp’s First Amendment rights. Yelp also failed to show that Paxton’s enforcement action was motivated by a desire to harass Yelp or was pursued in retaliation for Yelp’s support of abortion rights. Given the obligation of the federal courts to respect the domain of the state courts, any retaliatory motive or harassment must be sufficiently severe or pervasive to legitimize the halt of state court proceedings in which these same constitutional objections could be raised. Here, Yelp did not allege any bias by the tribunal, nor did it identify a serial pattern of litigation against it or a history of personal conflict or animus that would raise an inference of vindictive retaliation. Although Paxton’s enforcement action may 4 YELP INC. V. PAXTON

implicate a sensitive matter on which people disagree, that does not mean his pursuit of Yelp is retaliatory within the meaning of Younger’s bad faith exception, especially when the enforcement action itself was not facially meritless. Because Yelp was unable to make the high showing that Younger’s bad faith exception applied, the district court did not err by denying Yelp’s request for discovery and an evidentiary hearing.

COUNSEL

James Sigel (argued) and Thomas R. Burke, Davis Wright Tremaine LLP, San Francisco, California; Ambika Kumar and Sara A. Fairchild, Davis Wright Tremaine LLP, Seattle, Washington; Adam Sieff, Davis Wright Tremaine LLP, Los Angeles, California; Eric Feder, Davis Wright Tremaine LLP, Washington, D.C.; for Plaintiff-Appellant. Lanora C. Pettit (argued), Principal Deputy Solicitor General; J. Andrew Mackenzie and Alyssa Bixby-Lawson, Assistant Attorneys General; Aaron L. Nielson, Solicitor General; Brent Webster, First Assistant Attorney General; Ken Paxton, Texas Attorney General; Office of the Texas Attorney General, Austin, Texas; Abigail E. Smith and Ryan Baasch, Assistant Attorneys General, Consumer Protection Division, Office of the Texas Attorney General, Dallas, Texas; Eric Grant, Hicks Thomas LLP, Sacramento, California; for Defendant-Appellee. Michael L. Charlson and Robert H. Wu, Vinson & Elkins LLP, San Francisco, California, for Amici Curiae First Amendment Clinics and Scholars. YELP INC. V. PAXTON 5

Bruce D. Brown, Katie Townsend, Gabe Rottman, Grayson Clary, and Emily Hockett, Reporters Committee for Freedom of the Press, Washington, D.C., for Amicus Curiae Reporters Committee for Freedom of the Press. Neil Sawhney and Shilpi Agarwal, American Civil Liberties Union Foundation of Northern California, San Francisco, California; Jennifer Dalven and Brian Hauss, American Civil Liberties Union Foundation, New York, New York; for Amici Curiae American Civil Liberties Union and American Civil Liberties Union of Northern California.

OPINION

BRESS, Circuit Judge:

This case concerns whether a federal court may enjoin ongoing state court proceedings. Yelp, a company that publishes consumer reviews of businesses, asked a federal district court in California to halt the Texas Attorney General’s civil enforcement action against Yelp in Texas state court concerning Yelp’s since-withdrawn consumer notice for crisis pregnancy centers. The Texas Attorney General maintains that Yelp’s consumer notice was misleading. Yelp maintains that the Texas Attorney General is pursuing Yelp in retaliation for the company’s expressed views about abortion. Because Yelp wanted a federal court to enjoin ongoing state court proceedings, the district court dismissed the case under Younger v. Harris, 401 U.S. 37 (1971), finding that Younger’s narrow bad faith exception did not apply. We agree and affirm. 6 YELP INC. V. PAXTON

I Yelp owns and operates websites and mobile apps that allow users to read and write reviews about local businesses and services. Since 2012, Yelp has maintained a “Consumer Alert” program that warns users when Yelp detects fake reviews or other attempts to mislead customers. In 2018, Yelp claims it learned that “crisis pregnancy centers,” or CPCs, were diverting women seeking abortions away from abortion providers. CPCs do not provide abortions or make referrals to abortion providers. Yelp evaluated nationwide listings for entities providing pregnancy-related services, and if an entity did not offer abortion services or referrals, Yelp categorized it as a CPC. In August 2022, Yelp released a blog post in response to the Supreme Court’s decision in Dobbs v.

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137 F.4th 944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yelp-inc-v-paxton-ca9-2025.