California v. NRG Energy Inc.

The fundamental question in this appeal from a district court order of remand is whether we have appellate jurisdiction in light of the limitations of 28 U.S.C. § 1447 (d). We hold that we have jurisdiction to review the district court’s ruling on substantive issues of controlling law on the merits of the case. We affirm all of the district court’s rulings on those substantive issues, relating principally to immunity, but hold that the claims against the U.S. government agencies should have been dismissed rather than remanded to state court.

BACKGROUND

The underlying consolidated actions are suits arising from the energy crisis of 2000-2001. See generally Duke Energy Trading & Marketing, L.L.C. v. Davis, 267 F.3d 1042 (9th Cir.2001). As a result of the crisis, the State of California, together with some of its private and corporate citizens, filed suits in California state courts against Reliant Energy, Duke Energy and other generators of power in the California energy market (collectively referred to as “Duke and Reliant”). The Plaintiffs alleged that Defendants conspired to fix prices of wholesale electricity in violation of California’s Cartwright Act, Cal. Bus. & Prof.Code §…