On October 17, the U.S. Court of Appeals for the 9th Circuit vacated its own prior decision from August that overturned the lower court’s dismissal of a putative class action brought by two homeowners who alleged violations of Washington State’s Consumer Protection Act (covered by InfoBytes here). The 9th Circuit decided to vacate its prior ruling after it was persuaded upon petition to correct a technical error. The defendants asserted that since the state law copied the definition of “reverse mortgage” verbatim from federal law, federal caselaw should underlie the 9th Circuit’s decision. The defendants petitioned the appellate court to reconsider the case through a stipulated motion to voluntarily dismiss an appeal.
As a result of vacating its ruling, the district court’s original judgment remained in place. In his dissent, Judge Collins argued that the 9th Circuit acted improperly by vacating is own decision, since altering a judicial judgment entered by a panel of Article III judges is not relief that the circuit clerk may grant under federal appellate procedures.
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