Alliance of Nonprofits for Ins v. Brett Barratt
712 F.3d 1316
9th Cir.2013Background
- ANI is a Vermont-chartered risk retention group that registered with Nevada's Division of Insurance in 2001 but never obtained a Nevada Certificate of Authority.
- ANI provided first dollar automobile liability coverage in Nevada, which Nev. MVIFRA requires you to obtain from an authorized insurer.
- Nevada DMV began denying vehicle registrations to owners with ANI first-dollar policies in April 2010 due to lack of authority.
- The Nevada Commissioner issued an Order prohibiting ANI from writing first-dollar policies; the Order was later amended.
- ANI sued in federal court seeking declaratory and injunctive relief; the district court granted summary judgment preempting Nevada law.
- The district court also awarded ANI attorney’s fees under § 1988, which the Commissioner appealed; the court of appeals affirms preemption but vacates the fee award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| LRRA preemption of the Order | ANI contends LRRA preempts the Order as applied to ANI. | Commissioner argues LRRA does not preempt the Order. | Yes, LRRA preempts. |
| §3905(d) exception applicability | ANI argues the Order falls within §3905(d) as a financial-responsibility requirement. | Commissioner contends the exception does not apply here. | Not salvaged by §3905(d). |
| §3902(a)(4) anti-discrimination | ANI asserts the Order discriminates against RRGs in violation of §3902(a)(4). | Commissioner argues the discriminatory effect is justified or not proven. | Order discriminates and is not saved from preemption. |
| Attorneys’ fees under §1988 | ANI seeks fees under §1988 as prevailing party under §1983. | LRRA does not confer a federal right enforceable under §1983 to obtain fees. | Fees vacated; LRRA does not confer a §1983 right entitling fees. |
Key Cases Cited
- National Warranty Insurance Co. v. Greenfield, 214 F.3d 1073 (9th Cir. 2000) (LRRA §3905(d) discrimination analysis for RRGs)
- Gonzaga University v. Doe, 536 U.S. 273 (U.S. 2002) (unambiguously conferred rights under statutory text)
- Blessing v. Freestone, 520 U.S. 329 (U.S. 1997) (three-factor framework for implied rights under §1983)
- Golden State Transit Corp. v. City of Los Angeles, 493 U.S. 103 (U.S. 1989) (Supremacy Clause does not create rights enforceable under §1983 by itself)
- White Mountain Apache Tribe v. Williams, 810 F.2d 844 (9th Cir. 1987) (field and conflict preemption cannot always be §1983 rights)
- National Warranty Insurance Co. v. Greenfield, 214 F.3d 1073 (9th Cir. 2000) (LRRA preemption and §3905(d) applicability to state schemes)
- Schmidt v. Contra Costa Cnty., 693 F.3d 1122 (9th Cir. 2012) (de novo review of LRRA preemption question)
- Rincon Band of Mission Indians v. Harris, 618 F.2d 569 (9th Cir. 1980) (injunctive relief authority under 28 U.S.C. § 2202)