Panagiotis Theodoropoulos v. County of Los Angeles
687 F. App'x 573
| 9th Cir. | 2017Background
- Plaintiffs Panagiotis Theodoropoulos and Eliki Olive Oil LLC sued Los Angeles County employees here, asserting § 1983 and RICO (18 U.S.C. § 1962) claims based on allegedly unlawful fee overcharges and related misconduct.
- Plaintiffs had previously sued the County and some of the same employees in a 2012 action (the "2012 suit") raising similar factual allegations and obtaining judgment in that earlier case.
- The current complaint includes allegations predating the 2012 suit and some allegations of continued misconduct after the 2012 suit was filed (primarily continued fee collection through 2015).
- The district court dismissed the federal claims; the plaintiffs appealed. The Ninth Circuit affirmed the dismissal.
- The panel held that preclusion doctrines bar the federal claims: claim preclusion for pre-2012 conduct and issue preclusion for post-2012 conduct (because the 2012 judgment found the fee collection lawful).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether claims based on pre-2012 conduct are barred by claim preclusion | Plaintiffs: new defendants and newly characterized RICO claims mean claims were not previously litigable | Defendants: same transactional nucleus, same or privity-linked defendants, claims could have been raised in 2012 | Affirmed: claim preclusion bars pre-2012 claims; privity exists and legal relabeling cannot avoid preclusion |
| Whether RICO (§ 1962) claims could not have been brought in 2012 because facts were later discovered | Plaintiffs: racketeering facts weren’t learned until after 2012 | Defendants: 2012 complaint already alleged conspiracy, criminal enterprise, and deception — same factual predicate | Rejected: § 1962 claims could have been litigated in 2012; relabeling doesn’t avoid preclusion |
| Whether post-2012 allegations (continued fee collection) survive given prior adjudication | Plaintiffs: continuing misconduct occurred after 2012 (racketeering through 2015) | Defendants: post-filing conduct is materially same as conduct adjudged lawful in 2012 | Affirmed: issue preclusion bars claims based on continued fee collection because the 2012 judgment resolved permissibility |
| Whether "actually litigated" requirement for issue preclusion is met where prior findings rested on deemed admissions/summary judgment | Plaintiffs: procedural posture (deemed admissions) means issues weren’t actually litigated | Defendants: plaintiffs actively participated in the 2012 litigation; summary judgment findings based on admissions were sufficiently tested | Affirmed: "actually litigated" satisfied under In re Daily due to plaintiffs’ substantial participation; issue preclusion applies |
Key Cases Cited
- Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg'l Planning Agency, 322 F.3d 1064 (9th Cir.) (transactional-nexus test for claim preclusion)
- Scott v. Kuhlmann, 746 F.2d 1377 (9th Cir.) (privity among employee-defendants supports res judicata)
- In re Dual-Deck Video Cassette Recorder Antitrust Litig., 11 F.3d 1460 (9th Cir.) (issue preclusion bars claims based on continued conduct previously adjudged lawful)
- F.D.I.C. v. Daily (In re Daily), 47 F.3d 365 (9th Cir.) (actual-litigation requirement may be met where party substantially participated despite deemed admissions)
- I.R.S. v. Palmer (In re Palmer), 207 F.3d 566 (9th Cir.) (contrast on abandonment and actual litigation)
- Reyn’s Pasta Bella, LLC v. Visa USA, Inc., 442 F.3d 741 (9th Cir.) (appellate courts may affirm on any ground supported by record)
- Daniels-Hall v. Nat’l Educ. Ass’n, 629 F.3d 992 (9th Cir.) (courts need not credit conclusory allegations)