California Legal Brief

The Rule of Torres v. Munoz is that a court abuses its discretion by citing and relying on fictitious case authorities in its order, but a party forfeits the right to challenge such error when the party's own counsel drafted and submitted the order containing the fabricated citations without objecting or alerting the court to the fictitious nature of the authorities, under circumstances where the party had opportunity to verify citations and speak up before the court signed the order.

The Rule of Benjamin Woodhouse v. The State Bar of California et al. is that trial courts have inherent authority to dismiss complaints that assert fantastic, delusional, or fanciful scenarios that have no arguable basis in law or fact, and may declare such plaintiffs vexatious litigants, under circumstances where the complaint presents allegations that no reasonable person would classify as within the realm of possibility.

The Rule of Navellier v. Putnam is that parties to an appeal must promptly notify the appellate court of any bankruptcy filing that "could cause or impose a stay" of proceedings, even if they believe the stay does not apply, under Local Rule 21's mandatory disclosure requirements.

The Rule of Higginson is that dismissal of a CLRA claim for failure to file a concurrent venue affidavit must be without prejudice (with leave to amend), not with prejudice, under Civil Code section 1780(d), and that unremedied discovery misuse that deprives a party of material evidence required for trial warrants a new trial and monetary sanctions, under circumstances where a party falsely verifies that responsive documents "never existed" and the court's remedial jury instruction becomes ineffective due to evidentiary exclusions.

The Rule of Dion v. Weber is that under the Victims of Corporate Fraud Compensation Fund statutory scheme, trial courts are precluded from relitigating the merits of underlying fraud judgments when evaluating payment claims from the fund, under circumstances where the Secretary of State denies payment based on challenges to the validity of the original fraud judgment.

The Rule of The Merchant of Tennis is that when employers obtain individual settlement agreements from putative class members through fraud or misrepresentation, a curative notice must inform those employees that rescinding their agreements to join the class action may require repayment of settlement funds at the conclusion of litigation, under Civil Code sections 1689, 1691, and 1693, even though the trial court retains discretion to adjust equities between the parties at judgment.

The Rule of The Merchant of Tennis is that when putative class members rescind individual settlement agreements obtained through fraud or duress to join a class action lawsuit, they must be notified in the curative notice that they could be responsible for repayment of settlement consideration at the conclusion of litigation pursuant to Civil Code sections 1689, 1691, and 1693, under circumstances where an employer has obtained nearly 1,000 individual settlement agreements from employees during pending class certification proceedings through misrepresentations about the litigation.