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941 F.3d 1195
9th Cir.
2019
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Background:

  • 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  • While the appeal was pending, Nevada repealed S.B. 223 and enacted S.B. 338, expressly aiming to avoid ERISA-preemption problems and omitting the provisions the district court found preempted.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)
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Case Details

Case Name: Bd of Trustees Glazing Health v. Shannon Chambers
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Nov 7, 2019
Citations: 941 F.3d 1195; 16-15588
Docket Number: 16-15588
Court Abbreviation: 9th Cir.
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    Bd of Trustees Glazing Health v. Shannon Chambers, 941 F.3d 1195