*1 1077 clear from the record that the Phillip ALJ would Wolfson, Appellant, J. required to find the claimant if disabled v. Id.,
he considered the claimant’s evidence. Gary Watts; Ronald Yee Kome citing Bowen, Rodriguez 759, 876 F.2d Kathy Watts, Appellees. (9th Cir.1989) (crediting treating phy- testimony benefits); sician’s and awarding No. 00-55207. Sullivan, 683, Swenson v. F.2d United (9th Cir.1989) States Court of Appeals, (crediting subjective symp- Ninth Circuit. testimony tom awarding benefits); see Chater, 821, also Lester v. Argued and Submitted Oct. 2001. Cir.1995) (same); Heckler, Stewart v. Aug. Filed 2002. Cir.1984) F.2d (crediting finding VA disability and awarding ben-
efits). case, In this disability the VA’s
finding supported by several hundred
pages of medical records.7 The record is
fully and, developed giving great weight to
the VA disability rating, finding of dis-
ability is clearly required. Smolen, See Therefore,
F.3d at 1292. we hold that
McCartey throughout was disabled the rel-
evant period, and we reverse and remand
to the district court with instructions to
remand to payment the ALJ for of bene-
fits.
REVERSED and REMANDED. Gary WATTS; Ronald In re Yee Kathy
Kome Watts, Debtors, Appeals Council erred in its McCartey’s history determina- depression since tion that medical dated Sep- records after early history pro- 1990s. This is material and tember 1998 were immaterial because bative McCartey the fact that was disabled they documented medical treatment that oc- insured, his date last December curred after ALJ's decision. The treat- ment notes contained in these records record *2 CA, Vista, Switzer, Jr.,
J. Edward appellant. CA, for Diego, Mahoney, San M. Brian appellees. PAEZ, and O’SCANNLAIN Before: KING, District and Judges, Circuit Judge.* OPINION PAEZ, Judge. Circuit creditor, Wolfson, judgment Phillip J. Appellate Panel’s Bankruptcy appeals (“BAP”) the cancellation affirming debtors Ronald lien on judgment of his Kathy Yee Kome Gary Watts’s “Debtors”) declared (collectively, Watts’s recorded time Wolfson At the homestead. the value judgment, his abstract homestead, lien Debtors’ preexisting exemption, the homestead together with of Debtors’ value the fair market exceeded court can property. real in an avoids lien judgment celed Wolfson’s U.S.C. proceeding pursuant anee 522(f) of Jones rationale § under the Jones), F.3d 923 Heskett Cir.1997). Jones, under California we held
In
(“CCP”)
Procedure
of CM
Code
lien
704.950(c),
judgment
creditor’s
homestead
attach to a declared
does not
the home-
equity exists
unless
records an
creditor
the time the
stead at
Jones,
After
two
judgment.
abstract
rejected our in-
appellate courts
California
704.950(c) and con-
terpretation
*
wai'i,
designation.
sitting by
King,
United
Senior
P.
The Honorable Samuel
of Ha-
Judge for the District
District
States
that a
eluded
creditor is entitled
dence because there was no surplus equity
surplus equity
that accrues after the
the residence when Wolfson recorded
of judgment
abstract
light
is recorded.
abstract of judgment. Accordingly,
intervening
California
authority,
bankruptcy court canceled Wolfson’s
*3
§
which the
lien
Supreme
California
Court
under
would
The bankruptcy
522®.
court,
follow,
however,
we
overrule Jones. Accord-
likely
expressed
its disapproval
result,
we reverse
ingly,
and remand.
explaining that it agreed with
two subsequent
appellate
California
court
History
I.Factual
and Procedural
Merrill,
Smith v.
opinions,
64 Cal.App.4th
94,
Following Jones’s interpretation of section Bankruptcy tion Federal Law 704.950(c),the court bankruptcy found that Wolfson’s lien had not attached Federal bankruptcy provide laws debt- and could never attach to Debtors’ resi- ors with exemptions, various which exclude 522(f)(1) (A) U.S.C. pertinent states in judicial a lien[.] part: 522(f)(2)(A) provides Section a formula .for may fixing A debtor extent, avoid the aof lien calculating any, to what if lien im- an interest of the property debtor in to the pairs ability exempt debtor's property impairs that such exemption extent lien the bankruptcy from estate. to which the debtor would have been enti- ..., tled if such lien is— (B.A.P. Cir.1996); property bankruptcy 667-68 9th see also certain fromthe es- (In Pladson), Say. tate. Kendallv.Pladsort re BankofAm.Nat'lTrust& Ass'nv. (9thCir.1994); Hanger(In Hanger), 35F.3d 11U.S.C. 217B.R. 594- 522(d). 522(b)(1), (B.A.P. Cir.1997)(holding § § Pursuant to 11 U.S.C. 95 9th that the opted bankruptcy California outofthefed- courtmustdeterminethe ex exemptions impairs. exemption eral emptions. and enactedits ownex- tenttowhicha lien only § 703.130; CCP Little v. andthat that amountmustbe avoid (In Reaves), ed). only inquiry
Reaves re 285F.3d 1155 We address the first (9thCir.2002). here. A Californiadebtorin must B. Attachmentof a JudicialLienon a *4 exemptions electbetweentwosets of un DeclaredHomesteadUnderCalifor- applies law, der California onewhich to niaLaw generally ap debtors andthe otherwhich plies bankruptcy. Priorto ifa homeownerrecordeda to debtorsin CCP 703.140(a)~ California, § declarationofhomesteadin Californiahomestead Farrar v. McKown re exemptionprotected McKown), 203F.3d 1189 Cir. 2000). exemption Jones, the entirevalueofthe residence. Thehomestead available judgment judgment Thus, debtors, § 704.730, 106F.3dat 926. no lien to more CCP onlyoption generous exemption attach, could enforcehis anda creditor's than the judgment judicial applies bankruptcy, wasto seeka to debtors in id. property. 703.140(b)(1). prior filing 1982,however, § Here, saleofthe Id.In for bankruptcy, Legislature Debtorsrecordeda declara the California enactedtheEn- judgment Judgments Law, tion of homesteadavailableto forcementof CCP therebyentitling §~680.010-724.260, debtors, whichamendedthe Debtorsto a exemption, provisions. $75,000 homestead id. declaredhomestead Pursuant 704.730(a), judgment § 704.950, whichremainedeffectiveaf to section lienscould bankruptcypetition.2nowattachto declaredhomesteadsifthere ter filedtheir surplusequity in excessof the total filing bankruptcy, After Debt amountofliensandencumbrancesandthe sought pursuant judgment ors to avoidWolfson's exemption. homestead Section704.950 522(f) § lien ground to 11U.S.C. onthe provides pertinentpart: impaired that it their homestead (a)Except provided subdivision[] exemption. as To determinewhetheror to (c), judgment property judgment lienonreal whatextentWolfson's liencould doesnotattachto a declaredhome- 522(f) be avoidedunder becauseit im followingrequire- paired steadif bothof the Debtors'state-lawhomesteadex mentsaresatisfied: emption, bankruptcy apply (1) courthadto (1) describing A homesteaddeclaration Californialawto determinewhether the declaredhomesteadwas recorded prior Wolfson'slien attachedto Debtors'resi (2) dence, attached, to the timethe abstractor certi- and if the lien deter copy judgment fied ofthe wasrecorded mineunderfederal lawwheth judgment impaired tocreatethe lien. er or to what extentthe lien Debtors'homestead (2) exemption. Wiget The homesteaddeclarationnames See (In Nielsen), judgment spouse v.Nielsen re 197B.R. debtoror the "separate 1999); Wynns § 704.720; 2. Thereisalsoa anddistinct"auto- CCP seealso exemption, (In Wilson), matic, whichisnotrelevanthere.Katzv.Pike non-declaredhomestead Wilson re 90F'.3d 350 (Inye 1996). Cir. Pike,), (B.A.P. 243B.R. 6970 9thCir. judgment as a Commission, debtor declared Law Revision 16 Cal. L. Re homestead owner. (1982) (“Com vision Reports Comm’n
ment”). The Comment explained that judgment liens do not (c) attach to property A judgment lien attaches to a de- subject that is prior to a homestead decla clared homestead in the any amount of ration, but similar to the law over the total of the following: amendments, the 1982 a judgment (1) creditor All liens and encumbrances on the could reach any equity value in excess of declared homestead at the time the ab- the homestead exemption by levy of execu judgment stract of or certified copy Jones, tion on property. 106 F.3d at is recorded to create the specifically We noted the Com judgment hen. ment “was not revised to reflect the addi (2) exemption homestead set forth to;Section (c) tion of subdivision 704.950[.]” in Section 704.730.3 Id. Thus, (c) we concluded that subsection Jones, without the benefit of any Cali- was an “afterthought”-and that it “carve[d] fornia cases guide our interpretation of out a exception narrow to the general and 704.950(c), we addressed whether a long-standing California rule that judg *5 judgment lien attach a could to declared ment liens do not attach to a declared homestead if there was no surplus equity homestead.” Id. Judge Ferguson dissent at the time the abstract judgment of ed for several of the reasons later adopted recorded. We held that a judgment credi- by the California appellate courts, dis (1) tor’s lien attaches only surplus if equity cussed below. at exists the time the creditor records the Jones, Under lien, Wolfson’s judgment (2) judgment, abstract of or the creditor by created recording the abstract of judg- on judgment, executes thereby creat- ment, did not and could never attach to ing a lien that two-year has a life. 106 Debtors’ residence because there was no Jones, Thus, F.3d at 927. under even if surplus equity when he recorded the ab- surplus equity accrues after a creditor rec- stract judgment. The only way that ords abstract judgment, judg- Wolfson could reach any surplus equity creditor, ment confronted with a bankrupt- would be to rerecord the of judg- abstract cy petition, is not any entitled to surplus ment when surplus equity accrued. equity. Jones,
We reasoned in After Jones that California Ap- Court of Califor Smith, nia exemption peal homestead Cal.Rptr.2d laws 75 111-13, were de at Teaman, signed to prevent individuals from losing Cal.Rptr.2d 707-09, at homes, their disagreed and thus the homestead with our interpretation laws of sec- should liberally 704.950(c), tion construed in holding favor of judgment a Id. at homesteaders. creditor is We re entitled to surplus equity that history viewed the legislative the 1982 accrues a declared homestead after an amendments to the homestead as abstract of judgment statutes is recorded.4 We n reflected the Comment of the California find Smith and Teaman persuasive.
3. The exemption homestead apply accrues, does not at or equity when Tea- child, judgment a lien family, spousal man, or Cal.Rptr.2d at issue 709—this need support. 704.950(b). §CCP not be undisputed resolved here because it is surplus equity had accrued the time Although appellate California courts dis- Thus, bankruptcy petition. Debtors filed their agreed judgment as to when lien attaches— approach, judgment under either lien whether it attaches the time at the abstract of would have attached that date. recorded, Smith, judgment is Cal.Rptr.2d rejected (Cal.1975)). According- Both California courts 541 P.2d interpretation ly, despite "exception Jones `s section for section 704.950(c), noting 704.950, provisions that it leads to an ano none of the of section requires judgment reasonably prevent malous result. It cred 704.950 can be read to "continually applying
itors to
rerecord" their ab
section 697.340 from
to an in-
judgment
equity
property."
stracts of
to ensure that
their
crease in
in homestead
surplus equity
accrued,
lien attaches if
has
Id.
"cripple[s
priority
]
and it
the doctrine of
Teaman
also
relied
Teaman,
Cal.Rptr.2d
of liens."
at 708
704.800(a),
provides
which
that homestead-
(citing Jones,
(Ferguson,
that
is based
the earlier
when
another;
eraser
pow-
the
overrule
not
may
panel
demonstrably
has
law that
state
on
banc
to the en
confided
is
to overrule'
er
Herein
intervening period.
in the
changed
Pan-
alone.3
court
en banc
court,
the
demonstrabil-
proposition’s
A
the rub.
lies
they may question;
distinguish;
may
els
receptivity.
on the audience’s
ity depends
other
virtually any of the
may deploy
they
panels
our
must we ask
skeptical
How
But
vocabulary.
Shepard’s
in the
verbs
the
to exercise
they
urged
are
when
be
overrule.
may not
supervening
of a
light
in
to overrule
power
con-
need not
We
exceptions.
are
There
law?
underlying
change
the
Supreme
court when
en banc
vene
not act in
mind,
must
panel
a
my
To
we
Nor must
directly.
us
reverses
Court
without be-
precedent
of our
contravention
Court,
a case
reviewing
that
when
do so
do so.
authority to
of its
certain
ing highly
circuit,
out
props
knocks
another
from
easily
obtained
certainty is
that
And
See, e.g.,
of our decisions.
one
under
from
here,
change
state
when,
alleged
as
Inc.,
Cos.,
F.2d
Skaggs
v.
Le Vick
rather than statu-
case law
from
law comes
Cir.1983);
Label Co. v.
(9th
Piedmont
tory law.
Co.,
F.2d
Packing
Sun Garden
has
that
a
statute
is
state
When it
also,
Cir.1979);
(9th
e.g., Circuit
see
simpler,
is much
question
changed, the
Stores,
Najd, 294 F.3d
Inc.
City
codifica-
of formal
age
in this
particularly
Cir.2002)
v. Rob-
(noting that Duffield
tion.4
Co.,
&
Stephens
ertson
cases,
longer
no
hunt
we need
In most
implicitly over-
Cir.1998),
likely been
has
Califor-
of the
volumes
through yellowing
confi-
ruled).
represents our
practice
This
laws;
either
state
nia state session
court,
three-judge
our
dence,
that
aas
statutory sec-
has altered
legislature
be-
tell
difference
are able
panels
decision, or it
upon
in the
tion relied
ruling
rips
that
Court
Supreme
a
tween
has not.
Federal Re-
from
our decisions
one of
at
that
leaves
law,
and one
com-
altogether
pure
porter
case
whether
But with
it also
But
statutory
chad behind.
judicial glosses
hanging
law
least
mon
or
the Su-
difficult. We can
law,
confidence
is more
question
represents our
author-
law an
and to
case
ready to review
certain
state
stands
preme Court
only
(a
law
when it
expression
state
necessary
proposition
itative
us when
reverse
last resort.5
court of
the state’s
comes from
think,
which,
required).
no citation is
I
judges
of this court
specifically restricted
pan-
occasionally
because
backward:
2. And
(and,
exception,
28 U.S.C.
see
controlling
one
with
any given case is
el’s decision
*8
service).
afterward,
26(c)(1),
regular
judges
active
§
to
in
decision
submitted
others
over
but de-
is
first
occasionally
case
submitted
a
the consoli-
codification” refers to
“Formal
4.
second, necessitating the amendment or
cided
readily
legislative enactments under
of
dation
second but
the case submitted
of
withdrawal
an
subject headings,
than
at-
rather
indexed
4.1(a).
Gen.
9th
Order
first. See
Cir.
decided
law
the
all substantive
tempt to reduce
circuit,
court
of common
the en
law to
exclusion
Although,
this
banc
form of
the
code
Weiss,
authority
the first in-
A.
The Enchantment
exercises that
law. Gunther
of
World,
(cid:127)
limited,
eleven-judge panel rather
the
Law
Common
a
stance is
Codification
35-3,
(2000).
court,
the
& n.
Cir. R.
L.
see 9th
Yale X
the full
Int’l
than
is
banc court made
the en
convene
decision
law is
authorita-
active,
Certainty
state case
an
by majority
nonrecused
a
court's
of
law is at
enduring expression of state
tive and
man-
governing statute
judges, as the
circuit
court
last resort
highest
a
46(c);
when
state
its
R.App.
§
P. 35.
Fed.
dates.
U.S.C.
statute,
than
state’con-
a
rather
construes
banc court' is
on
en
participation
And
Anything
leaves room for
less
doubt—in-
er can find
persuasive
one more
than the
cluding
a decision
an
only by
intermediate
other
a
state
hairsbreadth —the winner
court, which,
appellate
though perhaps
by a preponderance, but
not
clear and
weightier authority than a trial court’s rul-
convicing evidence.
require
Yet we
“con-
an
ing,
attorney general’s
vincing
opinion, or a
evidence” before disregarding the
learned
pronouncement,
commentator’s
intermediate appellate court.
Owen,
inevitably less than conclusive. And it
II
blessed with
prior,
on-point Ninth Cir-
For the contrary position, the court’s
precedent,
cuit
would likely sigh with relief
opinion
primarily
relies
on Owen ex rel.
and apply
circuit,
the law of the
even if one
States,
Owen v. United
we decide impression, first we it rulings our each time the weight of must also revisit our decisions on the same (If authority shifts? the First District de- I basis. do think that the proposi- one A, holding cides on the Second and Third tion follows from the other. hand down holding year, not-A next
Consider a state with an intermediate Fourth, Fifth, and the weigh Sixth appeals court whose two divisions do not with holding A the following year, we will bind one another with their decisions. have to undertake three overrulings, with Suppose the two simultaneously divisions a fourth when the California Supreme opposite reach conclusions the identical not-A?) finally Court settles on outcome I question Suppose of law. further that the prefer keep would to a minimum the issue thorny is so and the two decisions so frequency with which we receive a new well-reasoned despite datum, the diametrical- revise our view state law accord- ly opposed outcomes, *9 impartial the ingly, observ- and reverse ourselves. law, stitution or the (1989). common due to the cus- 132 possibility L.Ed.2d But that the tomary rule that stare strongly is most highest decisis the day state's court will one overrule applicable cases, see, statutory in construction itself not rulings any does make its extant less
e.g., Union, Patterson v. McLean Credit purposes, 491 authoritative for our if not his- the 164, 172-73, 2363, U.S. 109 S.Ct. 105 torians’. 1086 Roemer, v. 501 Chisom ry protection. our own from not ascertain we But Can Cf. 2354, L.Ed.2d 380, 400, 111 115 S.Ct. that this U.S. likely it is how law the
reading of (1991); Pipeline Constr. in Northern actually march will horribles of parade Co., 458 here, Line U.S. Pipe would so we v. Marathon To do Co. case? given any 2858, L.Ed.2d 598 panel’s 10, 102 the Jones S.Ct. 59 n. whether evaluate have to ill (1982) status line with California Our opinion). of (plurality out is so decision likely indeed, is the Fram Appeal of lawmaking; other Court no us to law that suits of that sort precisely it mak And is we would be it. that not adopt expectation to ers’ pre- of judicial indepen reexamination us our on-the-merits law secured ing leave to supposed we are that cedent place. in the first dence court.6 banc the en reassur provides crucial decisis Stare it point: demonstrates on the latter ance HI the more than represent our decisions that the mere argue certainly that could One concurring of the subjective preferences given not be opinion panel fact of should 78, at 471 No. The Federalist judges. all, the After weight. this near-conclusive Hamilton) (Clinton (Alexander ed. Rossiter two) (or at the who arrived judges three in 1961) (“To arbitrary discretion avoid may or question holding precedential courts, they that it is indispensable thorough benefit have had may not and rules by strict should bound down state pertinent in the immersion briefing, and point to define which serve precedents balanced break law, aor nutritious case that every particular duty out their Tennessee, 501 v. U.S. Payne fast. Cf. also, ”); e.g., them.... see comes before 115 L.Ed.2d 834, 111 S.Ct. Co., 157 & Trust Loan Pollock Farmers’ v. (“[WJhat J., (1991) (Scalia, concurring) 429, 652, L.Ed. 759 S.Ct. U.S. governing as the power enshrine would (“The (White, J., funda (1895) dissenting) that an is the notion this Court principle body is that judicial conception of mental with constitutional important which precedents hedged of one about support rational must inadequate plainly regard to on court without binding are that it the sole reason in place for be left members.”). In the of its personality votes.”) five once attracted . three-judge panels courts we appeals, our usual rule—and that is not But mast and rigorously to this bind ourselves particular is of decisis reason. Stare good us. court to release only the en banc allow are, af- courts. We federal importance and Ste that Owen I unfortunate find it do jurisdiction that all, courts of limited ter Dowdle, F.2d 642 Cir. phan lawmaking common general enjoy this rule. See 1984), from departed have do. And many state courts authority that supra at judges are not law- that federal fact have, must re- and I depart But fact from the that inextricable makers is they cannot be holdings, for spect those armoring that enjoy the constitutional we See, Spears v. e.g., as dicta. dismissed independence appointment our secures — Cir.2002) Stewart, tenure, (rather election), life and sala- than principles to ascertain way same .Erie-derived to reduce the add one I that should law, give precedential exer- also this difficult situation but we state must incidence publishing prece- the utmost restraint application cise law in federal effect our However, diversity cases. decisions in cases, dential prece- creating federal court thus some in cases like us tool is not available principles may law Erie dent state one, incorporates or law this where federal later undermine. apply We law. must with state intersects *10 (Kozinski, J., concerning statement the de- banc) petitions
nial of for rehearing en
(“[S]o as the is long presented issue expressly
case and addressed in opin-
ion, that holding binding and cannot be or ignored by
overlooked later panels of
this court or by other courts of the cir-
cuit.”)- Nor have been overruled.
Thus, reluctantly applying the Owen
rule, I agree with the majority’s conclusion is no longer Jones viable and must be
rejected although, for the reasons de- — above, tailed I decline to use the term Accordingly,
“overruled.” I concur
judgment.
Hugo TORBET, Plaintiff-Appellant, AIRLINES, INC.;
UNITED Board
Airport Commissioners, City of Los
Angeles; Mike Edwards and Does 1
through 50, inclusive, Defendants-Ap
pellees.
No. 01-55319. States Appeals,
United Court of
Ninth Circuit.
Argued July Submitted Aug.
Filed
