Nagrete v. Allianz Life Ins. Co. of North America

• Decision Date: 29 April 2008
• Docket Number: No. 07-55505.,07-55505.
• Citation: 523 F.3d 1091
• Parties: Vida F. NEGRETE, as Conservator for Everett E. Ow, an individual and on behalf of all other similarly situated persons, Plaintiff-Appellee, v. ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA, a Minnesota corporation, Defendant-Appellant.
• Court: U.S. Court of Appeals — Ninth Circuit

523 F.3d 1091

Vida F. NEGRETE, as Conservator for Everett E. Ow, an individual and on behalf of all other similarly situated persons, Plaintiff-Appellee, v. ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA, a Minnesota corporation, Defendant-Appellant.

No. 07-55505.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted April 8, 2008.

Filed April 29, 2008.

Thomas J. Nolan, Skadden, Arps, Slate, Meagher & Flom LLP, Los Angeles, CA; Sonia Escobio O'Donnell, Jorden Burt, LLP, Miami, FL, for the defendant-appellant.

Francis J. Balint, Jr., Bonnett, Fairbourn, Friedman & Balint, PC, Phoenix, AZ, for the plaintiff-appellee.

Appeal from the United States District Court for the Central District of California; Christina A. Snyder, District Judge, Presiding. D.C. No. CV-05-06838-CAS.

Before: HARRY PREGERSON, D.W. NELSON, and FERDINAND F. FERNANDEZ, Circuit Judges.

FERNANDEZ, Circuit Judge:

Vida F. Negrete filed this class action lawsuit against Allianz Life Insurance Company of North America. Allianz appeals a district court order that effectively prevents it from proceeding with any settlement negotiations on similar class action claims raised in any federal or state court without first obtaining permission from Negrete's Co-Lead Counsel,¹ and from finalizing a settlement in any other court "that resolves, in whole or in part, the claims brought in [the Negrete] action," without first obtaining the district court's approval. We reverse.

BACKGROUND

On September 21, 2005, Vida F. Negrete filed a class action lawsuit against Allianz, an insurance corporation, in which she challenged the sale of Allianz's fixed deferred annuities. Negrete, acting as conservator for Everett E. Ow, alleges that Ow was "sold an unsuitable financial product" because the maturity date exceeded his life expectancy and restricted his access to principal without surrender charges. The complaint asserted claims for violations of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-1968 ("RICO"), breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, and violation of California statutes.²

In November 2006, the district court certified a nationwide class on the RICO claims only and a California-purchaser-only class as to the California statutory claims. The district court's certification order on the RICO claims covered all Allianz's deferred annuities purchased by individuals aged 65 or older within the applicable statutes of limitations.³ This was not the only action against Allianz regarding its sales of annuities; several similar cases have been filed in various federal and state courts.

Iorio v. Asset Marketing Inc., No. 05-CV-00633 (S.D.Cal.) was filed in March 2005, in the United States District Court, Southern District of California, on behalf of a California class which purchased certain "bonus" annuity products. In July 2006, the district court in Iorio issued an order certifying a plaintiff's class. That class partially overlaps the Negrete class.

Mooney v. Allianz Life Insurance Co. of North America, No. 06-CV-00545 was filed on February 9, 2006, in the United States District Court, District of Minnesota. Plaintiffs in that case sought to represent a nationwide class asserting claims under Minnesota's Prevention of Consumer Fraud Act and unjust enrichment. On May 10, 2007, the court certified a nationwide class of all purchasers of "bonus" annuities. Negrete contends that many of the annuity transactions at issue in Mooney overlap those in Negrete.

Castello v. Allianz Life Insurance Co. of North America, Civ. No. MC03-20405 (Minn.Dist.Ct.) is a certified nation wide class action that was filed on December 22, 2003, in the Fourth Judicial District Court, State of Minnesota. The Castello class is comprised of individuals who purchased Allianz's "cash bonus" annuities.

Finally, on January 7, 2007, the Minnesota Attorney General filed an action, State of Minnesota v. Allianz Life Insurance Co. of North America, Civ. No. 07-581 (Minn.Dist.Ct.), in the Fourth Judicial District Court, State of Minnesota (The AG Action). The AG Action seeks relief under Minnesota law on behalf of Minnesota residents who purchased Allianz's fixed deferred annuity products. That class may also partially overlap the Negrete class.

On February 28, 2007, the parties in Castello participated in a hearing in which the court asked the parties to address settlement issues. Allianz indicated that it would be willing to engage in mediation discussions only if the discussions included possible settlement of Mooney and The AG Action. The parties in Castello, The AG Action and Mooney were amenable to that settlement plan, and on March 13, 2007, they met with a mediator to commence settlement discussions. Negrete Counsel was neither informed of nor included in that mediation session, but learned of the proceedings from a third party. Believing that settlement negotiations in Mooney could "possibly extend to and extinguish the claims of the class in Negrete," and that Allianz might be engaged in a collusive reverse auction, Negrete Counsel contacted Allianz and requested assurances that:

any settlement negotiations or mediation in the referenced cases will not address any of the claims or damages asserted on behalf of the Negrete class, that any proposed settlement reached as a result of those negotiations will not compromise, impair, prejudice or affect the claims of the Negrete class members, and that any proposed settlement class will expressly exclude all members of the Negrete class.

Allianz declined to provide those assurances. Negrete then commenced the proceedings that led to this appeal. She sought an ex parte order prohibiting Allianz from:

settling, attempting to settle, negotiating, compromising, or releasing any claims, causes of action, or damages relating to any Allianz deferred annuity purchased by any Class Member in the Negrete/Healey matter during the relevant Class Period, in any other forum, including but not limited to, the Mooney matter, without the express approval of this Court and participation of Court appointed Co-Lead Counsel in the Negrete/Healey matter.

Allianz opposed the ex parte application.

On March 19, 2007, the district court, without holding a hearing, issued an order nominally denying the application because it was "not authorized by the All Writs Act." However, the court went on to order:

Any discussions of a settlement that would affect any claims brought in this litigation, other than claims of an individual plaintiff or class member, must be conducted or authorized by plaintiffs' Co-Lead Counsel. Any proposed settlement that resolves, in whole or in part, the claims brought in this action shall first be subject to review and approval by the Court in this litigation.

Allianz appealed that order on April 18, 2007.

At a September 10, 2007, status conference, the district court ordered Negrete and Allianz to commence mediation. The court also indicated that it did not then intend to enforce the March 19 order as to the other federal cases because it would be inappropriate to interfere with the dockets of the other judges. The court also suggested that it might be inclined to rescind the order, but it did not do so. Later on, during a September 24, 2007, status conference, the district court stated that it had conferred with the judges presiding over the Mooney and Iorio cases and it "expressed clearly to both of them that [the court] did not intend for any order that [it] entered to any way impede their ability to go forward and set settlement conferences." Again, the court did not lift its own order or even state that Negrete Counsel were not to play a part in those other proceedings. Subsequently, on October 29, 2007, the district court reaffirmed that it was "not going to seek to enforce an order to prevent [Allianz] from attempting to settle" the other district court cases. Again, it did not rescind its own order. Finally, on November 27, 2007, the district court indicated that mediation was proceeding in Mooney; it did not, however, mention its own order at that point.

Allianz, which is still bound by the district court's order, has continued with this appeal.

STANDARDS OF REVIEW

We review a district court order granting an injunction pursuant to the All Writs Act for an abuse of discretion. Brother Records, Inc. v. Jardine, 432 F.3d 939, 942 (9th Cir.2005). A district court abuses its discretion in issuing a preliminary injunction if its decision is based on either an erroneous legal standard or clearly erroneous factual findings, or if the injunction is overbroad. Clear Channel Outdoor Inc. v. City of Los Angeles, 340 F.3d 810, 813 (9th Cir.2003). "A district court's decision is based on an erroneous legal standard if: `(1) the court did not employ the appropriate legal standards that govern the issuance of a preliminary injunction; or (2) in applying the appropriate standards, the court misapprehended the law with respect to the underlying issues in the litigation.'" Id.

"Whether an injunction may issue under the Anti-Injunction Act is a question of law reviewed de novo." G.C. & K.B. Invs., Inc. v. Wilson, 326 F.3d 1096, 1106 (9th Cir.2003). "However, the decision to issue an injunction that comes within an exception to the [Anti-Injunction] Act is reviewed for an abuse of discretion." California v. Randtron, 284 F.3d 969, 974 (9th Cir.2002).

"[C]hallenges to an injunction ... pursuant to Fed.R.Civ.P. 65(d) are reviewed de novo." Premier Commc'ns Network, Inc. v. Fuentes, 880 F.2d 1096, 1100 (9th Cir.1989).

JURISDICTION

At the threshold, we are met with Negrete's claim that we lack jurisdiction over the district court's order because it was not an injunction and because, even if it was, the issue is now moot. We disagree.

We recognize that, in general, our jurisdiction extends only to final district court decisions. See 28 U.S.C....