Negrete v. Allianz Life Insurance Co.

Citation. 532 F.3d 1091 (9th Cir. 2008)

Brief Fact Summary.

Plaintiff sued Defendant for violating both state and federal statutes.

Synopsis of Rule of Law.

A district court may not prohibit judicial proceedings in other judicial systems without proper authority under the All Writs Act and the Anti-Injunction Act.

Facts.

Vida Negrete (Plaintiff) filed a class action lawsuit against Allianz Life Insurance Co. of North America (Defendant) for violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and California statutes.

Issue.

Was it proper for the District Court to enjoin Defendant from participating in settlement discussions in other courts?

Held.

No, it was not proper for the District Court to restrict other court proceedings in this way. The District Court’s order is reversed.

Discussion.

The Ninth Circuit Court of Appeals determined that the District Court’s order was not necessary under the All Writs Act and did not fall within any exceptions under the Anti-Injunction Act. There was no evidence of collusion that might purposefully interfere with the District Courts proceedings, discovery had not yet been completed, and no settlements were imminent.