941 F.3d 1195
9th Cir.2019Background:
- In 2015 Nevada enacted S.B. 223 imposing administrative requirements on labor-union trusts for debt collection; trustees sued and the district court held S.B. 223 preempted by ERISA.
- While the appeal was pending, Nevada repealed S.B. 223 and enacted S.B. 338, expressly aiming to avoid ERISA-preemption problems and omitting the provisions the district court found preempted.
- A three-judge panel was divided on whether the repeal rendered the appeal moot; the Ninth Circuit granted en banc rehearing.
- The en banc court addressed whether repeal/amendment/expiration of legislation creates a presumption of mootness and what showing overcomes that presumption.
- The court held that repeal/amendment presumptively moots a challenge unless there is a reasonable, record-based expectation the legislature will reenact the same or substantially similar provision; applying that rule, the court found no such expectation and dismissed the appeal as moot.
- The case was dismissed and remanded with instructions to vacate the district-court judgment under United States v. Munsingwear, Inc.; all pending motions were denied as moot.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper mootness framework when legislature repeals or amends challenged law | Repeal prompted by litigation does not automatically moot the case; courts should guard against strategic evasion and require a high showing to dismiss | Legislative repeal/amendment should be treated differently from private voluntary cessation; presume government acted in good faith and repeal presumptively moots the case | Adopted presumption that repeal/amendment/expiration presumptively moots the challenge; challenger must show a reasonable expectation of reenactment (based on record), not a virtual certainty |
| Application to S.B. 223 / S.B. 338 | Repeal did not render case moot because litigation prodded legislative change and reenactment was a realistic possibility | Nevada acted in good faith to address ERISA concerns; S.B. 338 omitted the preempted provisions, so no reasonable expectation of reenactment | No record evidence of a reasonable expectation of reenactment; appeal is moot; district-court judgment vacated and complaint dismissed per Munsingwear |
Key Cases Cited
- Friends of the Earth v. Laidlaw Envtl. Servs., 528 U.S. 167 (2000) (voluntary cessation doctrine and standards for mootness)
- United States v. W. T. Grant Co., 345 U.S. 629 (1953) (voluntary cessation may not moot a case if defendant free to resume conduct)
- City of Mesquite v. Aladdin’s Castle, Inc., 455 U.S. 283 (1982) (refusal to dismiss where city indicated intent to reenact offensive ordinance)
- Northeastern Fla. Chapter, Associated Gen. Contractors v. City of Jacksonville, 508 U.S. 656 (1993) (repeal/replacement did not moot challenge where new ordinance still disadvantaged plaintiffs)
- Lewis v. Cont’l Bank Corp., 494 U.S. 472 (1990) (legislative amendments can render a case moot)
- Burke v. Barnes, 479 U.S. 361 (1987) (expiration of legislation can render a case moot)
- Kremens v. Bartley, 431 U.S. 119 (1977) (repeal and replacement can moot a challenge)
- United States v. Munsingwear, Inc., 340 U.S. 36 (1950) (vacatur of judgment when case becomes moot on appeal)
- McCorvey v. Hill, 385 F.3d 846 (5th Cir. 2004) (repeal generally moots statutory challenge absent evidence of likely reenactment)
