Henson v. Fidelity National Financial Inc., No. 18-56071 (9th Cir. 2019)
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The Ninth Circuit reversed the district court's denial of plaintiffs' Federal Rule of Civil Procedure 60(b)(6) motion for relief from judgment in an action under the Real Estate Settlement Procedures Act (RESPA). In Phelps v. Alameida, 569 F.3d 1120, 1135–40 (9th Cir. 2009), the panel set out the analysis that courts should employ to guide their discretion when evaluating the merits of a Rule 60(b)(6) motion that seeks relief from the dismissal of a habeas corpus petition on the ground of an intervening change in the law. In this case, plaintiffs sought relief from judgment based on an intervening change of law in Microsoft Corp. v. Baker, 137 S. Ct. 1702 (2017).
The panel held that many of the Phelps factors were relevant to the Rule 60(b)(6) analysis in the present context, and reemphasized that courts must consider all of the relevant circumstances surrounding the specific motion before the court in order to ensure that justice be done in light of all the facts. In this case, the panel held that the district court's denial of plaintiffs' Rule 60(b)(6) motion rested upon an erroneous view of the law as to several significant factors, and thus the panel remanded with directions.
Court Description: Motion for Relief from Judgment. The panel reversed the district court’s order denying plaintiffs’ Fed. R. Civ. P. 60(b)(6) motion for relief from judgment in an action under the Real Estate Settlement Procedures Act. Plaintiffs sought relief from judgment based on an intervening change in the law in Microsoft Corp. v. Baker, 137 S. Ct. 1702 (2017) (holding that plaintiffs in putative class actions cannot transform a tentative interlocutory order into a final appealable judgment simply by dismissing their claims with prejudice). The panel addressed the analysis that courts should employ to guide their discretion when evaluating the merits of a Rule 60(b)(6) motion on the ground of an intervening change in the law in a non-habeas corpus case. The panel held that many of the factors set out in Phelps v. Alameida, 569 F.3d 1120 (9th Cir. 2009), a habeas case, are relevant, but courts must consider all of the relevant circumstances surrounding a specific motion. The panel examined the district court’s analysis of the six Phelps factors, including the nature of the change in the law, plaintiffs’ diligence in pursuing relief, the parties’ reliance interest in the finality of the case, the delay between the judgment and the Rule 60(b) motion, the relationship between the original judgment and the change in the law, and comity concerns. The panel also examined additional considerations, HENSON V. FIDELITY NAT’L FINANCIAL 3 such as the importance of heeding the intent of the rulings of the federal appellate courts, how best to stay true to the Supreme Court’s reasoning in Microsoft, and the negotiated nature of the voluntary dismissal in this case. The panel concluded that the district court’s denial of plaintiffs’ Rule 60(b)(6) motion was an abuse of discretion because it rested upon an erroneous view of the law as to several significant factors, and granting relief was appropriate. The panel reversed and remanded with directions to grant the Rule 60(b)(6) motion and for further proceedings.
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