Chen C. Wang Victoria R. Wang Eic Group, Inc. v. United States of America Internal Revenue Service Special Agent Seddio James Horio

Chen and Victoria Wang appeal from a dismissal of their civil action; they challenge three orders of the United States District Court for the Northern District of California. We vacate the first and second orders and remand to the district court for a new evidentiary hearing. We affirm the third order dismissing the Wangs’ constitutional claims against James Horio.

DISCUSSION

The Wangs hired Horio in 1980 as a “financial consultant and advisor.” After uncovering what he believed to be financial improprieties, Horio volunteered to provide information, documents, and secretly recorded conversations to the Internal Revenue Service (“IRS”). Horio was officially designated a “controlled informant” for the IRS on August 21, 1982, and began delivering information to the IRS. A civil audit was subsequently resolved in the Wangs’ favor. A criminal indictment against Chen Wang was dismissed after evidence was suppressed by the district court.

The Wangs then sued Horio in state court on a number of contract and tort claims arising from his activities as an informant. They also asserted constitutional tort claims under the doctrine of Bivens v. Six Unknown Named Agents, 403 U.S. 388 , 91…