671 F.3d 856
9th Cir.2012Background
- California enacted §354.4 in 2000: allows Armenian Genocide victims and heirs to sue insurers for policies issued between 1875–1923 in California courts; extends SOL for such claims.
- Plaintiffs Movsesian and others—Armenian descent—brought a class action against Victoria Versicherung AG, Ergo Versicherungsgruppe AG, and Munich Re.
- Defendants moved to dismiss under Rule 12(b)(6) arguing §354.4 is unconstitutional under the foreign affairs doctrine and preempted; Munich Re challenged standing and propriety as a defendant.
- District court held §354.4 not preempted by foreign affairs and denied most claims, except unjust enrichment and constructive trust were dismissed.
- Panel decision affirmed; this court granted en banc review, vacating the panel and taking up three issues: preemption, proper defendant, and standing.
- Court ultimately held §354.4 preempted, remanding with instructions to dismiss all claims revived by that statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §354.4 is preempted by foreign affairs doctrine | Movsesian argues preemption because statute intrudes on foreign policy | Munich Re contends no field/preemption; protects traditional state interest | Yes; §354.4 is preempted by field preemption under foreign affairs doctrine |
| Whether Munich Re is a proper defendant under §354.4 | Movsesian contends Munich Re as parent may be liable | Munich Re argues improper defendant status | Reversed/undetermined here; focus on preemption; not reached on this issue |
| Whether class members have standing to invoke §354.4 | Movsesian asserts standing as Armenian Genocide victims/heirs | Munich Re challenges standing | Standing analysis not dispositive after preemption ruling |
Key Cases Cited
- United States v. Pink, 315 U.S. 203 (U.S. Supreme Court 1942) (foreign affairs power is exclusive to federal government)
- Hines v. Davidowitz, 312 U.S. 52 (U.S. Supreme Court 1941) (federal power over foreign affairs; state intrusion prohibited)
- Garamendi, 539 U.S. 396 (U.S. Supreme Court 2003) (HVIRA preempted; field preemption analysis guidance)
- Von Saher v. Norton Simon Museum of Art at Pasadena, 592 F.3d 954 (9th Cir. 2010) (field preemption applied to Holocaust-era claims; not traditional state function)
- Zschernig v. Miller, 389 U.S. 429 (U.S. Supreme Court 1968) (foreign policy impact; field preemption concerns)