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PUBLICATION","paragraph_id":"para_1"},{"text":"UNITED STATES COURT OF APPEALS","paragraph_id":"para_2"},{"text":"FOR THE NINTH CIRCUIT","paragraph_id":"para_3"},{"text":"CONSUMER FINANCIAL","paragraph_id":"para_4"},{"text":"PROTECTION BUREAU,","paragraph_id":"para_5"},{"text":"Plaintiff-Appellee,","paragraph_id":"para_6"},{"text":"v.","paragraph_id":"para_7"},{"text":"CASHCALL, INC.; WS FUNDING,","paragraph_id":"para_8"},{"text":"LLC; DELBERT SERVICES","paragraph_id":"para_9"},{"text":"CORPORATION; J. PAUL","paragraph_id":"para_10"},{"text":"REDDAM,","paragraph_id":"para_11"},{"text":"Defendants-Appellants.","paragraph_id":"para_12"},{"text":"No. 23-55259","paragraph_id":"para_13"},{"text":"D.C. No.","paragraph_id":"para_14"},{"text":"2:15-cv-07522-","paragraph_id":"para_15"},{"text":"JFW-RAO","paragraph_id":"para_16"},{"text":"ORDER AND","paragraph_id":"para_17"},{"text":"AMENDED","paragraph_id":"para_18"},{"text":"OPINION","paragraph_id":"para_19"},{"text":"Appeal from the United States District Court","paragraph_id":"para_20"},{"text":"for the Central District of California","paragraph_id":"para_21"},{"text":"John F. Walter, District Judge, Presiding","paragraph_id":"para_22"},{"text":"Argued and Submitted March 20, 2024","paragraph_id":"para_23"},{"text":"San Francisco, California","paragraph_id":"para_24"},{"text":"Filed January 3, 2025","paragraph_id":"para_25"},{"text":"Amended April 24, 2025","paragraph_id":"para_26"},{"text":"Before: John B. Owens, Ryan D. Nelson, and Eric D.","paragraph_id":"para_27"},{"text":"Miller, Circuit Judges.","paragraph_id":"para_28"},{"text":"Order;","paragraph_id":"para_29"},{"text":"Opinion by Judge Miller;","paragraph_id":"para_30"},{"text":"Concurrence by Judge R. Nelson","paragraph_id":"para_31"},{"text":"2 CFPB V. CASHCALL, INC.","paragraph_id":"para_32"},{"text":"SUMMARY*","paragraph_id":"para_33"},{"text":"Seventh Amendment / Restitution Award","paragraph_id":"para_34"},{"text":"The panel affirmed the district court’s judgment, on","paragraph_id":"para_35"},{"text":"remand from this court, ordering CashCall, Inc. to pay more","paragraph_id":"para_36"},{"text":"than $134 million in legal restitution.","paragraph_id":"para_37"},{"text":"The Consumer Financial Protection Bureau brought an","paragraph_id":"para_38"},{"text":"action alleging that CashCall had engaged in an “unfair,","paragraph_id":"para_39"},{"text":"deceptive, or abusive act or practice” in violation of 12","paragraph_id":"para_40"},{"text":"U.S.C. § 5536(a)(1)(B), by attempting to collect interest and","paragraph_id":"para_41"},{"text":"fees to which it was not legally entitled. In this appeal,","paragraph_id":"para_42"},{"text":"CashCall primarily contended that the district court’s order","paragraph_id":"para_43"},{"text":"of legal restitution triggered its Seventh Amendment right to","paragraph_id":"para_44"},{"text":"a jury trial.","paragraph_id":"para_45"},{"text":"Assuming without deciding that CashCall had a Seventh","paragraph_id":"para_46"},{"text":"Amendment right to a jury trial, the panel concluded that it","paragraph_id":"para_47"},{"text":"had waived that right. CashCall made an express, knowing,","paragraph_id":"para_48"},{"text":"and voluntary waiver of its right to trial by jury. Although","paragraph_id":"para_49"},{"text":"CashCall contended that it waived its jury trial right only in","paragraph_id":"para_50"},{"text":"reliance on the Bureau’s incorrect characterization of the","paragraph_id":"para_51"},{"text":"relief it was seeking as equitable, rather than legal, CashCall","paragraph_id":"para_52"},{"text":"was not confused about the substance of that relief, and a","paragraph_id":"para_53"},{"text":"party need not demonstrate a correct understanding of the","paragraph_id":"para_54"},{"text":"law for its waiver to be effective. After CashCall voluntarily","paragraph_id":"para_55"},{"text":"participated in the bench trial, it did not challenge the","paragraph_id":"para_56"},{"text":"validity of the jury-trial waiver on remand, and even if it had,","paragraph_id":"para_57"},{"text":"* This summary constitutes no part of the opinion of the court. It has","paragraph_id":"para_58"},{"text":"been prepared by court staff for the convenience of the reader.","paragraph_id":"para_59"},{"text":"CFPB V. CASHCALL, INC. 3","paragraph_id":"para_60"},{"text":"an objection at that point could not have revived its jury","paragraph_id":"para_61"},{"text":"right.","paragraph_id":"para_62"},{"text":"The panel held that the district court did not abuse its","paragraph_id":"para_63"},{"text":"discretion in concluding that the doctrines of judicial","paragraph_id":"para_64"},{"text":"estoppel and waiver did not preclude the Bureau from","paragraph_id":"para_65"},{"text":"seeking an award of legal restitution. Also, the district court","paragraph_id":"para_66"},{"text":"did not overstate CashCall’s unjust gains. The district court","paragraph_id":"para_67"},{"text":"properly used CashCall’s net revenues as a basis for","paragraph_id":"para_68"},{"text":"measuring unjust gains. Finally, the panel rejected","paragraph_id":"para_69"},{"text":"CashCall’s contention that the Bureau’s statutory funding","paragraph_id":"para_70"},{"text":"mechanism is inconsistent with the Appropriations Clause.","paragraph_id":"para_71"},{"text":"Concurring, Judge R. Nelson agreed that CashCall","paragraph_id":"para_72"},{"text":"waived any Seventh Amendment jury trial right on the","paragraph_id":"para_73"},{"text":"Bureau’s claims for restitution. But even if CashCall had not","paragraph_id":"para_74"},{"text":"waived a jury, it still would have not been entitled to one","paragraph_id":"para_75"},{"text":"under FTC v. Commerce Planet, Inc., 815 F.3d 593, 602 (9th","paragraph_id":"para_76"},{"text":"Cir. 2016), abrogated on other grounds by AMG Cap.","paragraph_id":"para_77"},{"text":"Mgmt., LLC v. FTC, 593 U.S. 67 (2021), which diluted the","paragraph_id":"para_78"},{"text":"jury trial right, and which this court should reconsider en","paragraph_id":"para_79"},{"text":"banc.","paragraph_id":"para_80"},{"text":"COUNSEL","paragraph_id":"para_81"},{"text":"Kevin E. Friedl (argued), Senior Counsel; Kristin Bateman,","paragraph_id":"para_82"},{"text":"Assistant General Counsel; Steven Y. Bressler, Deputy","paragraph_id":"para_83"},{"text":"General Counsel; Seth Frotman, General Counsel; Thomas","paragraph_id":"para_84"},{"text":"McCray-Worrall, Attorney Advisor; Consumer Financial","paragraph_id":"para_85"},{"text":"Protection Bureau, Washington, D.C.; for Plaintiff-","paragraph_id":"para_86"},{"text":"Appellee.","paragraph_id":"para_87"},{"text":"Paul D. Clement (argued), Joseph J. DeMott, and Matthew","paragraph_id":"para_88"},{"text":"D. Rowen, Clement & Murphy PLLC, Alexandria, Virginia;","paragraph_id":"para_89"},{"text":"4 CFPB V. CASHCALL, INC.","paragraph_id":"para_90"},{"text":"Reuben C. Cahn and Gregory M. Sergi, Keller Anderle","paragraph_id":"para_91"},{"text":"Scolnick LLP, Irvine, California; Thomas J. Nolan, Law","paragraph_id":"para_92"},{"text":"Office of Thomas J. Nolan, Pasadena, California; for","paragraph_id":"para_93"},{"text":"Defendants-Appellants.","paragraph_id":"para_94"},{"text":"ORDER","paragraph_id":"para_95"},{"text":"The opinion filed on January 3, 2025, and published at","paragraph_id":"para_96"},{"text":"124 F.4th 1209, is hereby amended. The amended opinion","paragraph_id":"para_97"},{"text":"will be filed concurrently with this order.","paragraph_id":"para_98"},{"text":"The panel has voted to deny appellants’ petition for","paragraph_id":"para_99"},{"text":"rehearing and petition for rehearing en banc. The full court","paragraph_id":"para_100"},{"text":"has been advised of the petition for rehearing en banc, and","paragraph_id":"para_101"},{"text":"no judge has requested a vote on whether to rehear the matter","paragraph_id":"para_102"},{"text":"en banc. Fed. R. App. P. 40.","paragraph_id":"para_103"},{"text":"The petitions for rehearing and rehearing en banc are","paragraph_id":"para_104"},{"text":"DENIED. No future petitions for rehearing or rehearing en","paragraph_id":"para_105"},{"text":"banc will be entertained.","paragraph_id":"para_106"},{"text":"OPINION","paragraph_id":"para_107"},{"text":"MILLER, Circuit Judge:","paragraph_id":"para_108"},{"text":"CashCall, Inc., a consumer lender, returns to us","paragraph_id":"para_109"},{"text":"following our remand to the district court in a prior appeal.","paragraph_id":"para_110"},{"text":"See CFPB v. CashCall, Inc. (CashCall I), 35 F.4th 734 (9th","paragraph_id":"para_111"},{"text":"Cir. 2022). Last time, we agreed with the Bureau that","paragraph_id":"para_112"},{"text":"CashCall had engaged in an “unfair, deceptive, or abusive","paragraph_id":"para_113"},{"text":"act or practice,” in violation of 12 U.S.C. § 5536(a)(1)(B),","paragraph_id":"para_114"},{"text":"by attempting to collect interest and fees to which it was not","paragraph_id":"para_115"},{"text":"CFPB V. CASHCALL, INC. 5","paragraph_id":"para_116"},{"text":"legally entitled. 35 F.4th at 743–47. We also held that the","paragraph_id":"para_117"},{"text":"district court’s order denying restitution rested on a legal","paragraph_id":"para_118"},{"text":"error, so we vacated and remanded for further proceedings.","paragraph_id":"para_119"},{"text":"Id. at 749. On remand, the district court ordered CashCall to","paragraph_id":"para_120"},{"text":"pay more than $134 million in legal restitution.","paragraph_id":"para_121"},{"text":"CashCall appeals again. Its primary contention is that the","paragraph_id":"para_122"},{"text":"district court’s order of legal restitution triggered its Seventh","paragraph_id":"para_123"},{"text":"Amendment right to a jury trial. But CashCall waived that","paragraph_id":"para_124"},{"text":"right during the initial district court proceedings, in which it","paragraph_id":"para_125"},{"text":"voluntarily participated in a bench trial. Because CashCall’s","paragraph_id":"para_126"},{"text":"other challenges to the district court’s order also lack merit,","paragraph_id":"para_127"},{"text":"we affirm.","paragraph_id":"para_128"},{"text":"I","paragraph_id":"para_129"},{"text":"CashCall is a California corporation that makes","paragraph_id":"para_130"},{"text":"unsecured, high-interest loans to consumers. See generally","paragraph_id":"para_131"},{"text":"CashCall I, 35 F.4th at 738–40. In an effort to expand its","paragraph_id":"para_132"},{"text":"operations to other States while avoiding state usury laws, it","paragraph_id":"para_133"},{"text":"set up a lender incorporated under the laws of the Cheyenne","paragraph_id":"para_134"},{"text":"River Sioux Tribe. That lender issued loans whose terms","paragraph_id":"para_135"},{"text":"included choice-of-law provisions stating that they would be","paragraph_id":"para_136"},{"text":"governed by tribal law. CashCall then purchased the loans","paragraph_id":"para_137"},{"text":"and collected payments from consumers.","paragraph_id":"para_138"},{"text":"The Bureau believed that CashCall’s attempts to collect","paragraph_id":"para_139"},{"text":"payments were illegal because the loans—including the","paragraph_id":"para_140"},{"text":"choice-of-law provisions—were invalid under state law, so","paragraph_id":"para_141"},{"text":"they did not create legally enforceable obligations. In 2013,","paragraph_id":"para_142"},{"text":"the Bureau brought an enforcement action against CashCall,","paragraph_id":"para_143"},{"text":"its CEO, and several affiliated companies, alleging that","paragraph_id":"para_144"},{"text":"CashCall’s lending scheme was an “unfair, deceptive, or","paragraph_id":"para_145"},{"text":"abusive act or practice,” in violation of 12 U.S.C.","paragraph_id":"para_146"},{"text":"§ 5536(a)(1)(B). CashCall filed an answer to the complaint,","paragraph_id":"para_147"},{"text":"in which it demanded a jury trial.","paragraph_id":"para_148"},{"text":"6 CFPB V. CASHCALL, INC.","paragraph_id":"para_149"},{"text":"Thereafter, the district court granted partial summary","paragraph_id":"para_150"},{"text":"judgment to the Bureau on liability, and, after the parties","paragraph_id":"para_151"},{"text":"filed a joint status report stating that they “agreed to waive","paragraph_id":"para_152"},{"text":"their right to a jury,” the court conducted a bench trial to","paragraph_id":"para_153"},{"text":"determine the appropriate remedy. In addition to a civil","paragraph_id":"para_154"},{"text":"penalty, the Bureau sought restitution in the amount of the","paragraph_id":"para_155"},{"text":"total interest and fees paid on the void loans. The district","paragraph_id":"para_156"},{"text":"court imposed a civil penalty of $10.3 million but declined","paragraph_id":"para_157"},{"text":"to order restitution. CashCall I, 35 F.4th at 738.","paragraph_id":"para_158"},{"text":"Both sides appealed. CashCall contested the finding of","paragraph_id":"para_159"},{"text":"liability, and the Bureau argued that the civil penalty should","paragraph_id":"para_160"},{"text":"have been larger and that it was entitled to restitution.","paragraph_id":"para_161"},{"text":"CashCall I, 35 F.4th at 738. While the appeal was pending,","paragraph_id":"para_162"},{"text":"the Supreme Court decided Liu v. SEC, in which it surveyed","paragraph_id":"para_163"},{"text":"principles of equity jurisprudence and explained that “equity","paragraph_id":"para_164"},{"text":"practice long authorized courts to strip wrongdoers of their","paragraph_id":"para_165"},{"text":"ill-gotten gains” but “restricted the remedy to an individual","paragraph_id":"para_166"},{"text":"wrongdoer’s net profits.” 591 U.S. 71, 79 (2020). In the","paragraph_id":"para_167"},{"text":"wake of Liu, CashCall argued that because the Bureau had","paragraph_id":"para_168"},{"text":"sought equitable restitution, any award of restitution would","paragraph_id":"para_169"},{"text":"have to be limited to its net profits. Despite having","paragraph_id":"para_170"},{"text":"previously characterized the restitution it sought as","paragraph_id":"para_171"},{"text":"equitable, the Bureau responded by asserting that “in","paragraph_id":"para_172"},{"text":"substance the restitution that we . . . sought here was legal","paragraph_id":"para_173"},{"text":"restitution, not equitable restitution.”","paragraph_id":"para_174"},{"text":"We affirmed the district court’s finding of liability but","paragraph_id":"para_175"},{"text":"vacated the civil penalty and remanded with instructions for","paragraph_id":"para_176"},{"text":"the district court to impose a higher penalty based on a","paragraph_id":"para_177"},{"text":"determination that CashCall had acted recklessly. CashCall","paragraph_id":"para_178"},{"text":"I, 35 F.4th at 749. We also vacated the denial of restitution,","paragraph_id":"para_179"},{"text":"holding that the district court had relied on impermissible","paragraph_id":"para_180"},{"text":"considerations in denying restitution. We expressly declined","paragraph_id":"para_181"},{"text":"to resolve “whether the Bureau has waived a claim to legal","paragraph_id":"para_182"},{"text":"CFPB V. CASHCALL, INC. 7","paragraph_id":"para_183"},{"text":"restitution or how, if at all, Liu might limit equitable","paragraph_id":"para_184"},{"text":"restitution.” Id. at 750. Instead, we left those issues for the","paragraph_id":"para_185"},{"text":"district court to consider on remand. Id.","paragraph_id":"para_186"},{"text":"On remand, the parties disputed whether the district","paragraph_id":"para_187"},{"text":"court could order legal as opposed to equitable restitution.","paragraph_id":"para_188"},{"text":"As it had argued in this court, the Bureau insisted that “the","paragraph_id":"para_189"},{"text":"nature of the restitutionary remedy that [it] has sought","paragraph_id":"para_190"},{"text":"throughout this lawsuit is legal” because it sought only the","paragraph_id":"para_191"},{"text":"return of “consumer losses, measured by the interest and fees","paragraph_id":"para_192"},{"text":"that CashCall had illegally collected.” CashCall replied that,","paragraph_id":"para_193"},{"text":"based on what the Bureau said during the initial proceedings,","paragraph_id":"para_194"},{"text":"the court could award only equitable restitution, and that an","paragraph_id":"para_195"},{"text":"award in excess of net profits is “beyond a court’s equitable","paragraph_id":"para_196"},{"text":"powers and necessarily then implicates a defendant’s","paragraph_id":"para_197"},{"text":"Seventh Amendment rights.” But CashCall did not challenge","paragraph_id":"para_198"},{"text":"the validity of the jury-trial waiver that it had made during","paragraph_id":"para_199"},{"text":"the initial proceedings before the district court.","paragraph_id":"para_200"},{"text":"The district court determined that the Bureau was not","paragraph_id":"para_201"},{"text":"precluded from seeking legal restitution, explaining that","paragraph_id":"para_202"},{"text":"whether relief “qualifies as legal or equitable depends not on","paragraph_id":"para_203"},{"text":"the [Bureau]’s characterization, but rather on the nature of","paragraph_id":"para_204"},{"text":"the underlying remedies sought.” The district court reasoned","paragraph_id":"para_205"},{"text":"that the Bureau “has continuously sought, what by its nature","paragraph_id":"para_206"},{"text":"is, legal restitution.” And it concluded that “[b]ecause the","paragraph_id":"para_207"},{"text":"Supreme Court’s decision in Liu did not purport to limit the","paragraph_id":"para_208"},{"text":"scope of legal restitution,” it was unnecessary to “limit the","paragraph_id":"para_209"},{"text":"restitution in this case to net profits.”","paragraph_id":"para_210"},{"text":"The district court then applied this court’s two-step","paragraph_id":"para_211"},{"text":"burden-shifting framework to calculate the restitution award.","paragraph_id":"para_212"},{"text":"CashCall I, 35 F.4th at 751. Under that framework, the","paragraph_id":"para_213"},{"text":"Bureau “bears the burden of proving that the amount it seeks","paragraph_id":"para_214"},{"text":"in restitution reasonably approximates the defendant’s","paragraph_id":"para_215"},{"text":"8 CFPB V. CASHCALL, INC.","paragraph_id":"para_216"},{"text":"unjust gains.” Id. (quoting CFPB v. Gordon, 819 F.3d 1179,","paragraph_id":"para_217"},{"text":"1195 (9th Cir. 2016)). If the Bureau makes such a showing,","paragraph_id":"para_218"},{"text":"then “the burden shifts to the defendant to demonstrate that","paragraph_id":"para_219"},{"text":"the net revenues figure overstates the defendant’s unjust","paragraph_id":"para_220"},{"text":"gains.” Id. (quoting Gordon, 819 F.3d at 1195).","paragraph_id":"para_221"},{"text":"At step one, the district court concluded that the Bureau","paragraph_id":"para_222"},{"text":"had “met its initial burden.” After deducting payments","paragraph_id":"para_223"},{"text":"CashCall had already made to consumers in state","paragraph_id":"para_224"},{"text":"proceedings, the court concluded that CashCall’s unjust","paragraph_id":"para_225"},{"text":"gains could reasonably be approximated as $197 million. At","paragraph_id":"para_226"},{"text":"step two, however, the district court found that CashCall had","paragraph_id":"para_227"},{"text":"shown that this figure overstated its unjust gains. The","paragraph_id":"para_228"},{"text":"amount of restitution, the court explained, “should not","paragraph_id":"para_229"},{"text":"include the interest and fees paid by any consumer who paid","paragraph_id":"para_230"},{"text":"CashCall less than that consumer received in principal.”","paragraph_id":"para_231"},{"text":"After making the necessary adjustments, the district court","paragraph_id":"para_232"},{"text":"ordered CashCall to pay more than $134 million in","paragraph_id":"para_233"},{"text":"restitution. Because “[r]estitution may be measured by the","paragraph_id":"para_234"},{"text":"‘full amount lost by consumers rather than limiting damages","paragraph_id":"para_235"},{"text":"to a defendant’s profits,’” the court declined to deduct any","paragraph_id":"para_236"},{"text":"expenses that CashCall incurred in administering its lending","paragraph_id":"para_237"},{"text":"scheme. CashCall I, 35 F.4th at 751 (alteration in original)","paragraph_id":"para_238"},{"text":"(quoting Gordon, 819 F.3d at 1195).","paragraph_id":"para_239"},{"text":"II","paragraph_id":"para_240"},{"text":"The Seventh Amendment guarantees the right to a jury","paragraph_id":"para_241"},{"text":"trial “[i]n Suits at common law, where the value in","paragraph_id":"para_242"},{"text":"controversy shall exceed twenty dollars.” U.S. Const.","paragraph_id":"para_243"},{"text":"amend. VII. “In construing this language,” the Supreme","paragraph_id":"para_244"},{"text":"Court has “noted that the right is not limited to the ‘common-","paragraph_id":"para_245"},{"text":"law forms of action recognized’ when the Seventh","paragraph_id":"para_246"},{"text":"Amendment was ratified.” SEC v. Jarkesy, 144 S. Ct. 2117,","paragraph_id":"para_247"},{"text":"2128 (2024) (quoting Curtis v. Loether, 415 U.S. 189, 193","paragraph_id":"para_248"},{"text":"CFPB V. CASHCALL, INC. 9","paragraph_id":"para_249"},{"text":"(1974)). The right to a jury trial “extends to a particular","paragraph_id":"para_250"},{"text":"statutory claim if the claim is ‘legal in nature,’” considered","paragraph_id":"para_251"},{"text":"in light of “the cause of action and the remedy it provides.”","paragraph_id":"para_252"},{"text":"Id. at 2128–29 (quoting Granfinanciera, S.A. v. Nordberg,","paragraph_id":"para_253"},{"text":"492 U.S. 33, 53 (1989)). “[T]he remedy [is] the ‘more","paragraph_id":"para_254"},{"text":"important’ consideration.” Id. at 2129 (quoting Tull v.","paragraph_id":"para_255"},{"text":"United States, 481 U.S. 412, 421 (1987)); see also FTC v.","paragraph_id":"para_256"},{"text":"Commerce Planet, Inc., 815 F.3d 593, 602 (9th Cir. 2016),","paragraph_id":"para_257"},{"text":"abrogated on other grounds by AMG Cap. Mgmt., LLC v.","paragraph_id":"para_258"},{"text":"FTC, 593 U.S. 67 (2021).","paragraph_id":"para_259"},{"text":"The parties debate whether this case involves legal","paragraph_id":"para_260"},{"text":"remedies that are within the scope of the Seventh","paragraph_id":"para_261"},{"text":"Amendment guarantee. Our precedent suggests that the","paragraph_id":"para_262"},{"text":"answer is no: In Commerce Planet, we stated that “restitution","paragraph_id":"para_263"},{"text":"is an equitable remedy for Seventh Amendment purposes,","paragraph_id":"para_264"},{"text":"without drawing any distinction between the legal and","paragraph_id":"para_265"},{"text":"equitable forms of that relief”—in other words, no form of","paragraph_id":"para_266"},{"text":"restitution triggers the right to a jury trial. 815 F.3d at 602.","paragraph_id":"para_267"},{"text":"But CashCall argues that Commerce Planet does not apply","paragraph_id":"para_268"},{"text":"outside of its specific statutory context (the Federal Trade","paragraph_id":"para_269"},{"text":"Commission Act) and, in any event, that it has been","paragraph_id":"para_270"},{"text":"abrogated by more recent decisions of the Supreme Court,","paragraph_id":"para_271"},{"text":"including Liu. We need not resolve that debate here. Instead,","paragraph_id":"para_272"},{"text":"assuming without deciding that CashCall had a Seventh","paragraph_id":"para_273"},{"text":"Amendment right to a jury trial, we conclude that it waived","paragraph_id":"para_274"},{"text":"that right.","paragraph_id":"para_275"},{"text":"Like other constitutional rights, the Seventh Amendment","paragraph_id":"para_276"},{"text":"right can be waived. United States v. Moore, 340 U.S. 616,","paragraph_id":"para_277"},{"text":"621 (1951). To be valid, a waiver “must be made knowingly","paragraph_id":"para_278"},{"text":"and voluntarily based on the facts of the case.” Palmer v.","paragraph_id":"para_279"},{"text":"Valdez, 560 F.3d 965, 968 (9th Cir. 2009) (quoting Tracinda","paragraph_id":"para_280"},{"text":"Corp. v. DaimlerChrysler AG, 502 F.3d 212, 222 (3d Cir.","paragraph_id":"para_281"},{"text":"2007)).","paragraph_id":"para_282"},{"text":"10 CFPB V. CASHCALL, INC.","paragraph_id":"para_283"},{"text":"Here, CashCall made an express, knowing, and","paragraph_id":"para_284"},{"text":"voluntary waiver of its right to trial by jury. At the pretrial","paragraph_id":"para_285"},{"text":"hearing, the Bureau stated that it intended to “seek restitution","paragraph_id":"para_286"},{"text":"of interest and fees.” The Bureau explained that such an","paragraph_id":"para_287"},{"text":"award would be “an equitable remedy that, unless the Court","paragraph_id":"para_288"},{"text":"wanted to give it to an advisory jury, . . . would be the","paragraph_id":"para_289"},{"text":"Court’s remedy to decide,” adding that, based on the","paragraph_id":"para_290"},{"text":"Bureau’s “discussion with defense counsel,” the parties","paragraph_id":"para_291"},{"text":"“would be willing to waive [a] jury for any further","paragraph_id":"para_292"},{"text":"proceedings.” For its part, CashCall stated that it “generally","paragraph_id":"para_293"},{"text":"agree[d] with everything that [the Bureau] has represented","paragraph_id":"para_294"},{"text":"to the Court.” The district court said, “I don’t know and I","paragraph_id":"para_295"},{"text":"haven’t done the research to know whether or not [CashCall","paragraph_id":"para_296"},{"text":"is] entitled to a jury trial,” and it requested a joint status","paragraph_id":"para_297"},{"text":"report setting out the parties’ position on a jury-trial waiver.","paragraph_id":"para_298"},{"text":"That joint status report stated, in no uncertain terms, that","paragraph_id":"para_299"},{"text":"“[t]he parties have agreed to waive their right to a jury and","paragraph_id":"para_300"},{"text":"proceed with a bench trial to determine the appropriate relief,","paragraph_id":"para_301"},{"text":"should trial be necessary.”","paragraph_id":"para_302"},{"text":"Thereafter, in a supplemental brief, the Bureau again","paragraph_id":"para_303"},{"text":"explained the nature of the remedy that it sought: It believed","paragraph_id":"para_304"},{"text":"that “[r]estitution of the full amount lost by","paragraph_id":"para_305"},{"text":"consumers [was] necessary to achieve complete","paragraph_id":"para_306"},{"text":"justice . . . because [CashCall’s] deceptive conduct caused","paragraph_id":"para_307"},{"text":"consumers to pay interest and fees on loans that were legally","paragraph_id":"para_308"},{"text":"void.” According to the Bureau, that meant that consumers","paragraph_id":"para_309"},{"text":"“are all entitled to restitution based on the total amount of","paragraph_id":"para_310"},{"text":"interest and fees paid.” CashCall responded by contesting","paragraph_id":"para_311"},{"text":"the Bureau’s calculation methodology, arguing that the","paragraph_id":"para_312"},{"text":"proposed restitution “calculation would create an","paragraph_id":"para_313"},{"text":"impermissible windfall for” borrowers who defaulted or paid","paragraph_id":"para_314"},{"text":"less in interest and fees than they received in loan funds.","paragraph_id":"para_315"},{"text":"Further, CashCall argued that the Bureau was seeking “an","paragraph_id":"para_316"},{"text":"CFPB V. CASHCALL, INC. 11","paragraph_id":"para_317"},{"text":"equitable monetary award” that did “not account for the","paragraph_id":"para_318"},{"text":"expenses incurred by CashCall to run” its lending program—","paragraph_id":"para_319"},{"text":"which, in CashCall’s view, inappropriately transformed the","paragraph_id":"para_320"},{"text":"proposed remedy into a punitive sanction. See 12 U.S.C.","paragraph_id":"para_321"},{"text":"§ 5565(a)(3) (disallowing punitive damages).","paragraph_id":"para_322"},{"text":"At no point before trial did CashCall suggest that it was","paragraph_id":"para_323"},{"text":"entitled to a jury trial or seek to withdraw its waiver. The","paragraph_id":"para_324"},{"text":"case proceeded to a bench trial, in which CashCall","paragraph_id":"para_325"},{"text":"participated without objection.","paragraph_id":"para_326"},{"text":"CashCall does not dispute that it waived its jury trial","paragraph_id":"para_327"},{"text":"right but insists that it did so only in reliance on the Bureau’s","paragraph_id":"para_328"},{"text":"statements that the Bureau was seeking equitable restitution.","paragraph_id":"para_329"},{"text":"As subsequent developments in the law have revealed, the","paragraph_id":"para_330"},{"text":"Bureau’s characterization of the remedy it sought was","paragraph_id":"para_331"},{"text":"incorrect.","paragraph_id":"para_332"},{"text":"Restitution may be either legal or equitable, and","paragraph_id":"para_333"},{"text":"“whether it is legal or equitable depends on ‘the basis for [the","paragraph_id":"para_334"},{"text":"plaintiff’s] claim’ and the nature of the underlying remedies","paragraph_id":"para_335"},{"text":"sought.” Great-West Life & Annuity Ins. Co. v. Knudson, 534","paragraph_id":"para_336"},{"text":"U.S. 204, 213 (2002) (alteration in original) (quoting Reich","paragraph_id":"para_337"},{"text":"v. Continental Cas. Co., 33 F.3d 754, 756 (7th Cir. 1994)).","paragraph_id":"para_338"},{"text":"In general, “restitution is legal when the plaintiff cannot","paragraph_id":"para_339"},{"text":"‘assert title or right to possession of particular property,’” but","paragraph_id":"para_340"},{"text":"it “is equitable ‘where money or property identified as","paragraph_id":"para_341"},{"text":"belonging in good conscience to the plaintiff could clearly","paragraph_id":"para_342"},{"text":"be traced to particular funds or property in the defendant’s","paragraph_id":"para_343"},{"text":"possession.’” CashCall I, 35 F.4th at 750 (quoting Great-","paragraph_id":"para_344"},{"text":"West Life, 534 U.S. at 213).","paragraph_id":"para_345"},{"text":"In Liu, which was decided during the pendency of the","paragraph_id":"para_346"},{"text":"first appeal in this case, the Supreme Court acknowledged","paragraph_id":"para_347"},{"text":"that “[e]quity courts have routinely deprived wrongdoers of","paragraph_id":"para_348"},{"text":"their net profits from unlawful activity, even though that","paragraph_id":"para_349"},{"text":"12 CFPB V. CASHCALL, INC.","paragraph_id":"para_350"},{"text":"remedy may have gone by different names.” 591 U.S. at 79.","paragraph_id":"para_351"},{"text":"But, the Court explained, traditional principles of equity do","paragraph_id":"para_352"},{"text":"not permit “an equitable remedy in excess of a defendant’s","paragraph_id":"para_353"},{"text":"net profits from wrongdoing.” Id. at 85. Although the Court","paragraph_id":"para_354"},{"text":"made that statement in the context of disgorgement, we agree","paragraph_id":"para_355"},{"text":"with the Seventh Circuit that “Liu’s reasoning is not limited","paragraph_id":"para_356"},{"text":"to disgorgement; instead, the opinion purports to set forth a","paragraph_id":"para_357"},{"text":"rule applicable to all categories of equitable relief, including","paragraph_id":"para_358"},{"text":"restitution.” CFPB v. Consumer First Legal Grp., LLC, 6","paragraph_id":"para_359"},{"text":"F.4th 694, 710 (7th Cir. 2021).","paragraph_id":"para_360"},{"text":"Liu suggests that the Bureau was incorrect to","paragraph_id":"para_361"},{"text":"characterize the restitution it sought as equitable. Instead,","paragraph_id":"para_362"},{"text":"because that restitution was not limited to CashCall’s net","paragraph_id":"para_363"},{"text":"profits and did not seek “to restore to the [consumers]","paragraph_id":"para_364"},{"text":"particular funds or property in [CashCall]’s possession,” it","paragraph_id":"para_365"},{"text":"was more properly characterized as legal. Great-West Life,","paragraph_id":"para_366"},{"text":"534 U.S. at 214.","paragraph_id":"para_367"},{"text":"The Bureau’s error was perhaps understandable because","paragraph_id":"para_368"},{"text":"the Supreme Court had not “previously drawn [a] fine","paragraph_id":"para_369"},{"text":"distinction between restitution at law and restitution in","paragraph_id":"para_370"},{"text":"equity.” Great-West Life, 534 U.S. at 214. More importantly,","paragraph_id":"para_371"},{"text":"it was a legal error shared by both parties: CashCall told the","paragraph_id":"para_372"},{"text":"district court that it “generally agree[d] with everything” the","paragraph_id":"para_373"},{"text":"Bureau had said about the remedy it was seeking—including","paragraph_id":"para_374"},{"text":"that it would be “an equitable remedy that . . . would be the","paragraph_id":"para_375"},{"text":"Court’s remedy to decide.” And CashCash separately told","paragraph_id":"para_376"},{"text":"the district court that it understood the Bureau to be seeking","paragraph_id":"para_377"},{"text":"“an equitable monetary award.” It made those statements not","paragraph_id":"para_378"},{"text":"because it was confused about the substance of the relief the","paragraph_id":"para_379"},{"text":"Bureau was seeking—restitution in the form of the “total","paragraph_id":"para_380"},{"text":"amount of interest and fees paid” by consumers on invalid","paragraph_id":"para_381"},{"text":"loans—but because it shared the Bureau’s mistaken","paragraph_id":"para_382"},{"text":"understanding of the appropriate characterization of that","paragraph_id":"para_383"},{"text":"CFPB V. CASHCALL, INC. 13","paragraph_id":"para_384"},{"text":"relief. (Of course, it may also have made a strategic","paragraph_id":"para_385"},{"text":"judgment that, having been found liable for employing","paragraph_id":"para_386"},{"text":"deceptive practices to victimize thousands of consumers, it","paragraph_id":"para_387"},{"text":"might fare poorly before a jury.)","paragraph_id":"para_388"},{"text":"CashCall’s waiver was valid even if CashCall would not","paragraph_id":"para_389"},{"text":"have made it absent the parties’ mistaken characterization of","paragraph_id":"para_390"},{"text":"the relief the Bureau sought. We have never held that a","paragraph_id":"para_391"},{"text":"party’s legal error can vitiate its waiver of a jury-trial right,","paragraph_id":"para_392"},{"text":"or that a party must demonstrate a correct understanding of","paragraph_id":"para_393"},{"text":"the law for its waiver to be effective. Such a rule would be","paragraph_id":"para_394"},{"text":"inconsistent with the settled understanding that a party can","paragraph_id":"para_395"},{"text":"waive the right to a jury trial simply by doing nothing:","paragraph_id":"para_396"},{"text":"Federal Rule of Civil Procedure 38 provides that a party who","paragraph_id":"para_397"},{"text":"wants a jury trial must demand one in writing “no later than","paragraph_id":"para_398"},{"text":"14 days after the last pleading directed to the issue is served,”","paragraph_id":"para_399"},{"text":"and that “[a] party waives a jury trial unless its demand is","paragraph_id":"para_400"},{"text":"properly served and filed.” Fed. R. Civ. P. 38. Applying that","paragraph_id":"para_401"},{"text":"rule, we have held that “‘oversight or inadvertence,’”","paragraph_id":"para_402"},{"text":"including “a good faith mistake of law,” does not excuse the","paragraph_id":"para_403"},{"text":"failure to make a timely jury-trial demand. Zivkovic v.","paragraph_id":"para_404"},{"text":"Southern Cal. Edison Co., 302 F.3d 1080, 1086 (9th Cir.","paragraph_id":"para_405"},{"text":"2002) (quoting Pacific Fisheries Corp. v. HIH Cas. & Gen.","paragraph_id":"para_406"},{"text":"Ins., Ltd., 239 F.3d 1000, 1002 (9th Cir. 2001)). And even","paragraph_id":"para_407"},{"text":"after a party complies with Rule 38, its “knowing","paragraph_id":"para_408"},{"text":"participation in a bench trial without objection is sufficient","paragraph_id":"para_409"},{"text":"to constitute a jury waiver.” Palmer, 560 F.3d at 968","paragraph_id":"para_410"},{"text":"(quoting White v. McGinnis, 903 F.2d 699, 703 (9th Cir.","paragraph_id":"para_411"},{"text":"1990) (en banc)).","paragraph_id":"para_412"},{"text":"CashCall invokes Connolly v. United States, in which we","paragraph_id":"para_413"},{"text":"held that the defendants were entitled to a new trial after they","paragraph_id":"para_414"},{"text":"waived a jury and then, for the first time in closing argument,","paragraph_id":"para_415"},{"text":"the government said that it was seeking a statutory penalty.","paragraph_id":"para_416"},{"text":"149 F.2d 666, 668 (9th Cir. 1945). We explained that the","paragraph_id":"para_417"},{"text":"14 CFPB V. CASHCALL, INC.","paragraph_id":"para_418"},{"text":"defendants “could not waive their right to a jury trial on a","paragraph_id":"para_419"},{"text":"law point not in issue.” Id. at 669. That rule does not help","paragraph_id":"para_420"},{"text":"CashCall, which was aware all along of the relief that the","paragraph_id":"para_421"},{"text":"Bureau was seeking but simply misunderstood how the","paragraph_id":"para_422"},{"text":"Seventh Amendment might apply to it. An effective waiver","paragraph_id":"para_423"},{"text":"requires only that a party “knowingly and voluntarily” waive","paragraph_id":"para_424"},{"text":"its jury-trial right “based on the facts of the case.” Palmer,","paragraph_id":"para_425"},{"text":"560 F.3d at 968 (emphasis added) (quoting Tracinda Corp.,","paragraph_id":"para_426"},{"text":"502 F.3d at 222). CashCall did so here.","paragraph_id":"para_427"},{"text":"After CashCall voluntarily participated in the bench trial,","paragraph_id":"para_428"},{"text":"an objection on remand could not have revived its jury right.","paragraph_id":"para_429"},{"text":"See 9 Charles Alan Wright & Arthur R. Miller, Federal","paragraph_id":"para_430"},{"text":"Practice & Procedure § 2321, at 334 (4th ed. 2020) (“Once","paragraph_id":"para_431"},{"text":"the opportunity to demand a jury trial has been waived, the","paragraph_id":"para_432"},{"text":"right is not revived by a reversal on appeal or by the grant of","paragraph_id":"para_433"},{"text":"a new trial.”). But even on remand—after Liu had been","paragraph_id":"para_434"},{"text":"decided, after the Bureau reiterated that the relief it sought","paragraph_id":"para_435"},{"text":"was the return of “consumer losses, measured by the interest","paragraph_id":"para_436"},{"text":"and fees that CashCall had illegally collected,” and after the","paragraph_id":"para_437"},{"text":"Bureau expressly denied that it “sought equitable relief such","paragraph_id":"para_438"},{"text":"as the return of particular funds or property . . . or","paragraph_id":"para_439"},{"text":"disgorgement of profits, or an accounting for profits”—","paragraph_id":"para_440"},{"text":"CashCall still did not demand a jury trial. At oral argument","paragraph_id":"para_441"},{"text":"in this appeal, when asked about the position it took on","paragraph_id":"para_442"},{"text":"remand, CashCall answered that it had demanded a jury trial","paragraph_id":"para_443"},{"text":"“in sort of a back-handed way” by arguing that an award in","paragraph_id":"para_444"},{"text":"excess of net profits would implicate its Seventh","paragraph_id":"para_445"},{"text":"Amendment rights. That argument was both too little and too","paragraph_id":"para_446"},{"text":"late to undo CashCall’s waiver.","paragraph_id":"para_447"},{"text":"III","paragraph_id":"para_448"},{"text":"CashCall also contends that the doctrines of judicial","paragraph_id":"para_449"},{"text":"estoppel and waiver should have precluded the Bureau from","paragraph_id":"para_450"},{"text":"CFPB V. CASHCALL, INC. 15","paragraph_id":"para_451"},{"text":"seeking an award of legal restitution. According to CashCall,","paragraph_id":"para_452"},{"text":"because the Bureau initially said that it wanted an award of","paragraph_id":"para_453"},{"text":"equitable restitution, it is estopped from seeking—or has","paragraph_id":"para_454"},{"text":"waived any entitlement to—an award of legal restitution.","paragraph_id":"para_455"},{"text":"The district court rejected both theories, and we review its","paragraph_id":"para_456"},{"text":"decision for abuse of discretion. See Arizona v. Tohono","paragraph_id":"para_457"},{"text":"O’odham Nation, 818 F.3d 549, 558 (9th Cir. 2016) (judicial","paragraph_id":"para_458"},{"text":"estoppel); Gordon, 819 F.3d at 1187 (waiver). We see none.","paragraph_id":"para_459"},{"text":"Judicial estoppel is an equitable doctrine based on the","paragraph_id":"para_460"},{"text":"principle that, once a party takes a certain position, it “may","paragraph_id":"para_461"},{"text":"not thereafter . . . assume a contrary position, especially if it","paragraph_id":"para_462"},{"text":"be to the prejudice of the party who has acquiesced in the","paragraph_id":"para_463"},{"text":"position formerly taken by him.” New Hampshire v. Maine,","paragraph_id":"para_464"},{"text":"532 U.S. 742, 749 (2001) (quoting Davis v. Wakelee, 156","paragraph_id":"para_465"},{"text":"U.S. 680, 689 (1895)). The Supreme Court has set out three","paragraph_id":"para_466"},{"text":"factors to guide courts in applying the doctrine. First, a","paragraph_id":"para_467"},{"text":"“party’s later position must be ‘clearly inconsistent’ with its","paragraph_id":"para_468"},{"text":"earlier position.” Id. at 750 (quoting United States v. Hook,","paragraph_id":"para_469"},{"text":"195 F.3d 299, 306 (7th Cir. 1999)). Second, the court should","paragraph_id":"para_470"},{"text":"consider “whether the party has succeeded in persuading a","paragraph_id":"para_471"},{"text":"court to accept that party’s earlier position, so that judicial","paragraph_id":"para_472"},{"text":"acceptance of an inconsistent position in a later proceeding","paragraph_id":"para_473"},{"text":"would create ‘the perception that either the first or the second","paragraph_id":"para_474"},{"text":"court was misled.’” Id. (quoting Edwards v. Aetna Life Ins.","paragraph_id":"para_475"},{"text":"Co., 690 F.2d 595, 599 (6th Cir. 1982)). And third, the court","paragraph_id":"para_476"},{"text":"should determine “whether the party seeking to assert an","paragraph_id":"para_477"},{"text":"inconsistent position would derive an unfair advantage or","paragraph_id":"para_478"},{"text":"impose an unfair detriment on the opposing party if not","paragraph_id":"para_479"},{"text":"estopped.” Id. at 751.","paragraph_id":"para_480"},{"text":"None of those factors favors CashCall for the simple","paragraph_id":"para_481"},{"text":"reason that the Bureau’s position has remained consistent","paragraph_id":"para_482"},{"text":"throughout this case. The district court recognized that the","paragraph_id":"para_483"},{"text":"Bureau had indeed labeled its preferred remedy as","paragraph_id":"para_484"},{"text":"16 CFPB V. CASHCALL, INC.","paragraph_id":"para_485"},{"text":"“equitable” throughout the initial proceedings. But it also","paragraph_id":"para_486"},{"text":"noted that whether the relief being sought was equitable or","paragraph_id":"para_487"},{"text":"legal “depends not on the [Bureau’s] characterization, but","paragraph_id":"para_488"},{"text":"rather on the nature of the underlying remedies sought.” That","paragraph_id":"para_489"},{"text":"was correct. The Supreme Court in Liu warned against","paragraph_id":"para_490"},{"text":"“elevat[ing] form over substance” in distinguishing between","paragraph_id":"para_491"},{"text":"legal and equitable remedies. 591 U.S. at 76 n.1 (quoting","paragraph_id":"para_492"},{"text":"Aetna Health Inc. v. Davila, 542 U.S. 200, 214 (2004)). And","paragraph_id":"para_493"},{"text":"here, the nature of the remedy is—and always has been—","paragraph_id":"para_494"},{"text":"legal restitution: a money judgment to compensate","paragraph_id":"para_495"},{"text":"borrowers for the money that CashCall collected but","paragraph_id":"para_496"},{"text":"borrowers did not owe.","paragraph_id":"para_497"},{"text":"For much the same reason, CashCall’s waiver argument","paragraph_id":"para_498"},{"text":"fails as well. The Bureau has consistently asserted its right","paragraph_id":"para_499"},{"text":"to the same remedy. It did not waive the right to seek that","paragraph_id":"para_500"},{"text":"remedy simply because it—like CashCall—attached the","paragraph_id":"para_501"},{"text":"wrong label to that remedy during the initial proceedings","paragraph_id":"para_502"},{"text":"below.","paragraph_id":"para_503"},{"text":"IV","paragraph_id":"para_504"},{"text":"CashCall argues that even if some award of legal","paragraph_id":"para_505"},{"text":"restitution was appropriate, the district court overstated","paragraph_id":"para_506"},{"text":"CashCall’s unjust gains. The basis of its argument is that the","paragraph_id":"para_507"},{"text":"district court’s award of $134 million does not restore","paragraph_id":"para_508"},{"text":"consumers to the status quo because some consumers who","paragraph_id":"para_509"},{"text":"received loans did not repay all the principal they received","paragraph_id":"para_510"},{"text":"from CashCall. Those unpaid amounts were reflected on","paragraph_id":"para_511"},{"text":"CashCall’s ledgers as a loss of $93 million—a loss that","paragraph_id":"para_512"},{"text":"CashCall insists should be deducted from any award of","paragraph_id":"para_513"},{"text":"restitution.","paragraph_id":"para_514"},{"text":"We have stated that restitution awards are reviewed for","paragraph_id":"para_515"},{"text":"abuse of discretion, see CashCall I, 35 F.4th at 749, but we","paragraph_id":"para_516"},{"text":"have not specifically addressed the standard for legal","paragraph_id":"para_517"},{"text":"CFPB V. CASHCALL, INC. 17","paragraph_id":"para_518"},{"text":"restitution. CashCall argues that such awards are subject to","paragraph_id":"para_519"},{"text":"de novo review. Assuming without deciding that de novo","paragraph_id":"para_520"},{"text":"review applies, we conclude that CashCall’s argument fails","paragraph_id":"para_521"},{"text":"nonetheless.","paragraph_id":"para_522"},{"text":"As we have explained, equitable remedies must be","paragraph_id":"para_523"},{"text":"capped at net profits—meaning that “courts must deduct [a","paragraph_id":"para_524"},{"text":"defendant’s] legitimate expenses” from any award of","paragraph_id":"para_525"},{"text":"equitable restitution. Liu, 591 U.S. at 91; see also Consumer","paragraph_id":"para_526"},{"text":"First, 6 F.4th at 710. But the same is not true of legal","paragraph_id":"para_527"},{"text":"restitution, in which a plaintiff seeks to recover a defendant’s","paragraph_id":"para_528"},{"text":"unjust gains. See Great-West Life, 534 U.S. at 213","paragraph_id":"para_529"},{"text":"(explaining that restitution at law allows a plaintiff to","paragraph_id":"para_530"},{"text":"“recover[] money to pay for some benefit the defendant had","paragraph_id":"para_531"},{"text":"received from him” (quoting 1 Dan B. Dobbs, Dobbs Law of","paragraph_id":"para_532"},{"text":"Remedies § 4.2(1), at 571 (2d ed. 1993))). Legal","paragraph_id":"para_533"},{"text":"“[r]estitution may be measured by the ‘full amount lost by","paragraph_id":"para_534"},{"text":"consumers rather than limiting damages to a defendant’s","paragraph_id":"para_535"},{"text":"profits.’” CashCall I, 35 F.4th at 751 (quoting Gordon, 819","paragraph_id":"para_536"},{"text":"F.3d at 1195). That means that a “district court may use a","paragraph_id":"para_537"},{"text":"defendant’s net revenues as a basis for measuring unjust","paragraph_id":"para_538"},{"text":"gains.” Id. (quoting Gordon, 819 F.3d at 1195).","paragraph_id":"para_539"},{"text":"That is exactly what the district court did here. At step","paragraph_id":"para_540"},{"text":"one of the two-step burden-shifting framework set out in","paragraph_id":"para_541"},{"text":"Gordon, it found that the Bureau had met its initial burden","paragraph_id":"para_542"},{"text":"of demonstrating “a reasonable approximation of","paragraph_id":"para_543"},{"text":"[CashCall’s] unjust gains, i.e., net revenues.” After","paragraph_id":"para_544"},{"text":"deducting amounts CashCall had already paid in state","paragraph_id":"para_545"},{"text":"enforcement actions, the district court concluded that the","paragraph_id":"para_546"},{"text":"Bureau could request $197 million. The burden then shifted","paragraph_id":"para_547"},{"text":"to CashCall to prove that this overstated its unjust gains—a","paragraph_id":"para_548"},{"text":"burden that the district court concluded CashCall met. See","paragraph_id":"para_549"},{"text":"CashCall I, 35 F.4th at 751. The Bureau had argued that the","paragraph_id":"para_550"},{"text":"restitution award should include any interest and fees paid","paragraph_id":"para_551"},{"text":"18 CFPB V. CASHCALL, INC.","paragraph_id":"para_552"},{"text":"by any consumer, including those who paid CashCall less","paragraph_id":"para_553"},{"text":"than what they received in the form of loan principal. This","paragraph_id":"para_554"},{"text":"amount would be in addition to the interest and fees that","paragraph_id":"para_555"},{"text":"other consumers paid in excess of the amount of loan","paragraph_id":"para_556"},{"text":"principal CashCall disbursed to them. The district court","paragraph_id":"para_557"},{"text":"agreed with CashCall’s challenge to that approach, noting","paragraph_id":"para_558"},{"text":"our statement in the prior appeal: “Restitution . . . serves to","paragraph_id":"para_559"},{"text":"ensure that consumers are made whole,” not to grant them a","paragraph_id":"para_560"},{"text":"windfall. Id. at 750 (emphasis added). But the district court","paragraph_id":"para_561"},{"text":"also concluded that it did not need to deduct anything else,","paragraph_id":"para_562"},{"text":"including CashCall’s expenses.","paragraph_id":"para_563"},{"text":"CashCall now argues that this was error. It insists that the","paragraph_id":"para_564"},{"text":"district court should have deducted “the initial outlays of","paragraph_id":"para_565"},{"text":"loan principal” that CashCall disbursed to consumers but","paragraph_id":"para_566"},{"text":"which some consumers never fully repaid—an amount","paragraph_id":"para_567"},{"text":"totaling $93 million. But deducting the $93 million in unpaid","paragraph_id":"para_568"},{"text":"principal would serve to deduct one of CashCall’s expenses,","paragraph_id":"para_569"},{"text":"which is necessary only when restitution is awarded in","paragraph_id":"para_570"},{"text":"equity, not at law. See Liu, 591 U.S. at 91–92. Furthermore,","paragraph_id":"para_571"},{"text":"the amount of unjust gains that CashCall received from","paragraph_id":"para_572"},{"text":"consumers who paid more than they got in loan proceeds has","paragraph_id":"para_573"},{"text":"nothing to do with the success or failure of CashCall’s","paragraph_id":"para_574"},{"text":"dealings with other borrowers. If CashCall had $100 in","paragraph_id":"para_575"},{"text":"unjust gains from a transaction with consumer A, it should","paragraph_id":"para_576"},{"text":"pay $100 in restitution. It should not get away with paying","paragraph_id":"para_577"},{"text":"less just because it lost $50 in a separate transaction with","paragraph_id":"para_578"},{"text":"consumer B.","paragraph_id":"para_579"},{"text":"A restitution award “should be measured to reflect the","paragraph_id":"para_580"},{"text":"substantive law purpose that calls for restitution in the first","paragraph_id":"para_581"},{"text":"place.” Restatement (Third) of Restitution and Unjust","paragraph_id":"para_582"},{"text":"Enrichment § 49, Comment a (2011) (quoting 1 Dobbs","paragraph_id":"para_583"},{"text":"§ 4.5(1), at 629). Here, one of the purposes of the statute is","paragraph_id":"para_584"},{"text":"“to ensure that ‘consumers are protected from unfair,","paragraph_id":"para_585"},{"text":"CFPB V. CASHCALL, INC. 19","paragraph_id":"para_586"},{"text":"deceptive, or abusive acts and practices.’” CashCall I, 35","paragraph_id":"para_587"},{"text":"F.4th at 750 (quoting 12 U.S.C. § 5511(b)(2)). The reduction","paragraph_id":"para_588"},{"text":"in the award that CashCall seeks would frustrate that purpose","paragraph_id":"para_589"},{"text":"by ensuring that borrowers who paid CashCall more than","paragraph_id":"para_590"},{"text":"they received are not made whole.","paragraph_id":"para_591"},{"text":"V","paragraph_id":"para_592"},{"text":"Finally, CashCall contends that all the Bureau’s actions","paragraph_id":"para_593"},{"text":"in this case were unlawful because the Bureau does not","paragraph_id":"para_594"},{"text":"receive annual appropriations from Congress but instead is","paragraph_id":"para_595"},{"text":"authorized to draw from the Federal Reserve System","paragraph_id":"para_596"},{"text":"whatever amount it deems “reasonably necessary to carry","paragraph_id":"para_597"},{"text":"out” its duties, a funding scheme that CashCall says violates","paragraph_id":"para_598"},{"text":"the Appropriations Clause. 12 U.S.C. § 5497(a)(1); U.S.","paragraph_id":"para_599"},{"text":"Const. art. I, § 9, cl. 7. That argument is squarely foreclosed","paragraph_id":"para_600"},{"text":"by recent Supreme Court precedent holding that the","paragraph_id":"para_601"},{"text":"Bureau’s statutory funding mechanism is consistent with the","paragraph_id":"para_602"},{"text":"Appropriations Clause. See CFPB v. Community Fin. Servs.","paragraph_id":"para_603"},{"text":"Ass’n of Am., Ltd., 601 U.S. 416, 421 (2024).","paragraph_id":"para_604"},{"text":"AFFIRMED.","paragraph_id":"para_605"},{"text":"20 CFPB V. CASHCALL, INC.","paragraph_id":"para_606"},{"text":"R. NELSON, Circuit Judge, concurring:","paragraph_id":"para_607"},{"text":"I agree that CashCall, Inc. waived any Seventh","paragraph_id":"para_608"},{"text":"Amendment right to a jury trial on the Consumer Financial","paragraph_id":"para_609"},{"text":"Protection Bureau’s claims for restitution. Op. at 9–11. But","paragraph_id":"para_610"},{"text":"even if CashCall had not waived a jury, it still would not","paragraph_id":"para_611"},{"text":"have been entitled to one under our precedent. In FTC v.","paragraph_id":"para_612"},{"text":"Commerce Planet, Inc., we held that claims for restitution,","paragraph_id":"para_613"},{"text":"even when understood as actions at law, never trigger the","paragraph_id":"para_614"},{"text":"Seventh Amendment’s guarantee. 815 F.3d 593, 602 (9th","paragraph_id":"para_615"},{"text":"Cir. 2016), abrogated on other grounds by AMG Cap.","paragraph_id":"para_616"},{"text":"Mgmt., LLC v. FTC, 593 U.S. 67 (2021); see U.S. Const.","paragraph_id":"para_617"},{"text":"amend. VII (“preserv[ing]” the right to trial by jury “[i]n","paragraph_id":"para_618"},{"text":"Suits at common law”). Commerce Planet was wrong the","paragraph_id":"para_619"},{"text":"day it was decided. And its flaws have become even clearer","paragraph_id":"para_620"},{"text":"since. I write separately to explain why Commerce Planet","paragraph_id":"para_621"},{"text":"dilutes the jury trial right, and why, in the appropriate case,","paragraph_id":"para_622"},{"text":"we should reconsider it en banc.","paragraph_id":"para_623"},{"text":"I","paragraph_id":"para_624"},{"text":"A","paragraph_id":"para_625"},{"text":"The civil jury right was not always a given. The original","paragraph_id":"para_626"},{"text":"Constitution, as ratified in 1788, guaranteed a jury only in","paragraph_id":"para_627"},{"text":"criminal cases. See U.S. Const. art. III, § 2, cl. 3. Debates","paragraph_id":"para_628"},{"text":"about extending the same right to civil matters colored much","paragraph_id":"para_629"},{"text":"of the ratification period, with the Anti-Federalists insisting","paragraph_id":"para_630"},{"text":"that juries promote “an open and public discussion of all","paragraph_id":"para_631"},{"text":"causes” free from “secret and arbitrary proceedings.” SEC","paragraph_id":"para_632"},{"text":"v. Jarkesy, 144 S. Ct. 2117, 2144 (2024) (Gorsuch, J.,","paragraph_id":"para_633"},{"text":"concurring) (quoting Letter from a Federal Farmer (Jan. 18,","paragraph_id":"para_634"},{"text":"1788), in 2 The Complete Anti-Federalist 320 (H. Storing","paragraph_id":"para_635"},{"text":"ed. 1981)); see also Parsons v. Bedford, 28 U.S. (3 Pet.) 433,","paragraph_id":"para_636"},{"text":"446 (1830) (“One of the strongest objections originally taken","paragraph_id":"para_637"},{"text":"CFPB V. CASHCALL, INC. 21","paragraph_id":"para_638"},{"text":"against the constitution of the United States, was the want of","paragraph_id":"para_639"},{"text":"an express provision securing the right of trial by jury in civil","paragraph_id":"para_640"},{"text":"cases.”). Some Federalists were more skeptical. Despite the","paragraph_id":"para_641"},{"text":"jury’s importance in the criminal context, the Federalists","paragraph_id":"para_642"},{"text":"doubted “the essentiality of” a civil jury right, at least as a","paragraph_id":"para_643"},{"text":"matter of federal constitutional law. The Federalist No. 83","paragraph_id":"para_644"},{"text":"(Alexander Hamilton); see In re U.S. Fin. Sec. Litig., 609","paragraph_id":"para_645"},{"text":"F.2d 411, 420 (9th Cir. 1979). That view did not carry the","paragraph_id":"para_646"},{"text":"day for long. By 1791, the Anti-Federalists had prevailed,","paragraph_id":"para_647"},{"text":"and the right to civil trial by jury was enshrined in the","paragraph_id":"para_648"},{"text":"Seventh Amendment as part of the Bill of Rights.","paragraph_id":"para_649"},{"text":"Although the Seventh Amendment “preserve[s]” the","paragraph_id":"para_650"},{"text":"“right of trial by jury” in “[s]uits at common law,” it has been","paragraph_id":"para_651"},{"text":"interpreted to extend beyond the “common-law forms of","paragraph_id":"para_652"},{"text":"action recognized” in 1791. Curtis v. Loether, 415 U.S. 189,","paragraph_id":"para_653"},{"text":"192–93 (1974) (quoting U.S. Const. amend. VII). The","paragraph_id":"para_654"},{"text":"Amendment equally applies to statutory actions that are","paragraph_id":"para_655"},{"text":"“legal in nature,” rather than claims that traditionally arose","paragraph_id":"para_656"},{"text":"in equity. Jarkesy, 144 S. Ct. at 2128 (quoting","paragraph_id":"para_657"},{"text":"Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 53 (1989)).","paragraph_id":"para_658"},{"text":"In determining whether a suit is “legal in nature,” courts","paragraph_id":"para_659"},{"text":"“consider the cause of action and the remedy it provides.”","paragraph_id":"para_660"},{"text":"Id. at 2129; see Tull v. United States, 481 U.S. 412, 417–18","paragraph_id":"para_661"},{"text":"(1987). The second factor—the remedy—is “more","paragraph_id":"para_662"},{"text":"important.” Jarkesy, 144 S. Ct. at 2129 (quoting Tull, 481","paragraph_id":"para_663"},{"text":"U.S. at 421). Put simply, the Constitution “preserves the","paragraph_id":"para_664"},{"text":"right to trial by jury of all legal claims,” including those that","paragraph_id":"para_665"},{"text":"are statutory. Dollar Sys., Inc. v. Avcar Leasing Sys., Inc.,","paragraph_id":"para_666"},{"text":"890 F.2d 165, 170 (9th Cir. 1989). But “no right to a jury","paragraph_id":"para_667"},{"text":"exists” for equitable claims. Id.","paragraph_id":"para_668"},{"text":"22 CFPB V. CASHCALL, INC.","paragraph_id":"para_669"},{"text":"B","paragraph_id":"para_670"},{"text":"The Supreme Court, for much of its history, described","paragraph_id":"para_671"},{"text":"restitution as arising in equity. In Mertens v. Hewitt","paragraph_id":"para_672"},{"text":"Associates, the Court noted that restitution is “a remedy","paragraph_id":"para_673"},{"text":"traditionally viewed as ‘equitable.’” 508 U.S. 248, 255","paragraph_id":"para_674"},{"text":"(1993). And in Teamsters v. Terry, the Court characterized","paragraph_id":"para_675"},{"text":"“damages as equitable when they are restitutionary.” 494","paragraph_id":"para_676"},{"text":"U.S. 558, 570 (1990); see also, e.g., Tull, 481 U.S. at 424","paragraph_id":"para_677"},{"text":"(restitution “traditionally considered an equitable remedy”).","paragraph_id":"para_678"},{"text":"Thus, the Supreme Court, until 20 years ago, generally","paragraph_id":"para_679"},{"text":"characterized restitution as equitable relief.","paragraph_id":"para_680"},{"text":"Then came Great-West Life & Annuity Insurance Co. v.","paragraph_id":"para_681"},{"text":"Knudson, 534 U.S. 204 (2002). Great-West addressed","paragraph_id":"para_682"},{"text":"whether a provision of the Employee Retirement Income","paragraph_id":"para_683"},{"text":"Security Act (ERISA) authorizing “appropriate equitable","paragraph_id":"para_684"},{"text":"relief” includes claims for restitution. 534 U.S. at 209, 212","paragraph_id":"para_685"},{"text":"(quoting 29 U.S.C. § 1132(a)(3)(B)). The Court explained","paragraph_id":"para_686"},{"text":"that while restitution often sounds in equity, that is not","paragraph_id":"para_687"},{"text":"always the case. Id. at 212. “In the days of the divided","paragraph_id":"para_688"},{"text":"bench, restitution was available in certain cases at law, and","paragraph_id":"para_689"},{"text":"in certain others in equity.” Id. (citing 1 D. Dobbs, Law of","paragraph_id":"para_690"},{"text":"Remedies § 1.2, at 11 (2d ed. 1993)). Legal restitution","paragraph_id":"para_691"},{"text":"involved cases in which a plaintiff lacked title over a piece","paragraph_id":"para_692"},{"text":"of property but could “show just grounds for recovering","paragraph_id":"para_693"},{"text":"money to pay for some benefit the defendant had received","paragraph_id":"para_694"},{"text":"from him.” Id. at 213 (quoting 1 Dobbs § 4.2(1), at 571).","paragraph_id":"para_695"},{"text":"On the other hand, a plaintiff could seek equitable restitution","paragraph_id":"para_696"},{"text":"where money or objects that the plaintiff owned “could","paragraph_id":"para_697"},{"text":"clearly be traced to particular funds or property in the","paragraph_id":"para_698"},{"text":"defendant’s possession.” Id.","paragraph_id":"para_699"},{"text":"The Court clarified that the test for whether restitution","paragraph_id":"para_700"},{"text":"“is legal or equitable” ultimately “depends on the basis for","paragraph_id":"para_701"},{"text":"CFPB V. CASHCALL, INC. 23","paragraph_id":"para_702"},{"text":"the plaintiff’s claim and the nature of the underlying","paragraph_id":"para_703"},{"text":"remedies sought.” Id. (quoting Reich v. Cont’l Cas. Co., 33","paragraph_id":"para_704"},{"text":"F.3d 754, 756 (7th Cir. 1994)) (cleaned up). That’s the same","paragraph_id":"para_705"},{"text":"test for invoking the Seventh Amendment right. See, e.g.,","paragraph_id":"para_706"},{"text":"Jarkesy, 144 S. Ct. at 2129 (“To determine whether a suit is","paragraph_id":"para_707"},{"text":"legal in nature, we directed courts to consider the cause of","paragraph_id":"para_708"},{"text":"action and the remedy it provides.”). These similarities were","paragraph_id":"para_709"},{"text":"not lost on the Court. Parsing the “law-equity dichotomy,”","paragraph_id":"para_710"},{"text":"it explained, “is an inquiry . . . that we are accustomed to","paragraph_id":"para_711"},{"text":"pursuing, and will always have to pursue, in other contexts,”","paragraph_id":"para_712"},{"text":"including the Seventh Amendment’s right to a civil jury.","paragraph_id":"para_713"},{"text":"Great-W., 534 U.S. at 217 (citing Curtis, 415 U.S. at 192).","paragraph_id":"para_714"},{"text":"As others have recognized, “neither the correctness nor the","paragraph_id":"para_715"},{"text":"persuasiveness of Great-West Life’s description of","paragraph_id":"para_716"},{"text":"restitution at law and in equity turns on the particular context","paragraph_id":"para_717"},{"text":"in which Justice Scalia performed it.” United States v. ERR,","paragraph_id":"para_718"},{"text":"LLC, 35 F.4th 405, 414 (5th Cir. 2022); see also Liu v. SEC,","paragraph_id":"para_719"},{"text":"591 U.S. 71, 81 (2020) (invoking the Supreme Court’s","paragraph_id":"para_720"},{"text":"“‘transsubstantive guidance on broad and fundamental’","paragraph_id":"para_721"},{"text":"equitable principles” (quoting Romag Fasteners, Inc. v.","paragraph_id":"para_722"},{"text":"Fossil, Inc., 590 U.S. 212, 217 (2020))). So while Great-","paragraph_id":"para_723"},{"text":"West happened to involve ERISA, its discussion of legal and","paragraph_id":"para_724"},{"text":"equitable restitution illustrates the scope of the Seventh","paragraph_id":"para_725"},{"text":"Amendment right. After all, claims for legal restitution are,","paragraph_id":"para_726"},{"text":"in their nature, suits “at common law.” So they guarantee a","paragraph_id":"para_727"},{"text":"jury trial. Claims for equitable restitution trigger no such","paragraph_id":"para_728"},{"text":"guarantee.","paragraph_id":"para_729"},{"text":"II","paragraph_id":"para_730"},{"text":"We decided Commerce Planet against this backdrop.","paragraph_id":"para_731"},{"text":"You wouldn’t know it though, considering how little weight","paragraph_id":"para_732"},{"text":"our decision gave to Great-West. Rather than grapple with","paragraph_id":"para_733"},{"text":"the difference between legal and equitable restitution, as the","paragraph_id":"para_734"},{"text":"Supreme Court did, Commerce Planet asserted that the","paragraph_id":"para_735"},{"text":"24 CFPB V. CASHCALL, INC.","paragraph_id":"para_736"},{"text":"Court has labeled all restitution as equitable relief that","paragraph_id":"para_737"},{"text":"necessarily falls outside the Seventh Amendment’s scope.","paragraph_id":"para_738"},{"text":"815 F.3d at 602. Thus, the restitution remedy—in any","paragraph_id":"para_739"},{"text":"form—“confers no right to a jury trial.” Id. That could not","paragraph_id":"para_740"},{"text":"be further from the truth.","paragraph_id":"para_741"},{"text":"A","paragraph_id":"para_742"},{"text":"First, Commerce Planet anchored its holding not in the","paragraph_id":"para_743"},{"text":"Great-West majority opinion, but in Justice Ginsburg’s","paragraph_id":"para_744"},{"text":"dissent. According to the panel, the Supreme Court “has","paragraph_id":"para_745"},{"text":"consistently stated that restitution is an equitable remedy for","paragraph_id":"para_746"},{"text":"Seventh Amendment purposes, without drawing any","paragraph_id":"para_747"},{"text":"distinction between the legal and equitable forms of that","paragraph_id":"para_748"},{"text":"relief.” Id. (citing Great-W., 534 U.S. at 229 (Ginsburg, J.,","paragraph_id":"para_749"},{"text":"dissenting)) (emphasis added). Only part of that statement","paragraph_id":"para_750"},{"text":"is correct. Granted, Justice Ginsburg recognized, like the","paragraph_id":"para_751"},{"text":"Great-West majority, that the Supreme Court historically","paragraph_id":"para_752"},{"text":"“described restitutionary relief as ‘equitable’ without even","paragraph_id":"para_753"},{"text":"mentioning, much less dwelling upon, the ancient","paragraph_id":"para_754"},{"text":"classifications” between the remedy’s legal and equitable","paragraph_id":"para_755"},{"text":"forms. Great-W., 534 U.S. at 229 (Ginsburg, J., dissenting);","paragraph_id":"para_756"},{"text":"see id. at 214–15 (maj. op.) (“Admittedly, our cases have not","paragraph_id":"para_757"},{"text":"previously drawn this fine distinction between restitution at","paragraph_id":"para_758"},{"text":"law and restitution in equity . . . .”). But Justice Ginsburg","paragraph_id":"para_759"},{"text":"then acknowledged that the majority’s test for distinguishing","paragraph_id":"para_760"},{"text":"between legal and equitable restitution is also used “in the","paragraph_id":"para_761"},{"text":"context of the Seventh Amendment.” Id. at 232","paragraph_id":"para_762"},{"text":"(Ginsburg, J., dissenting). She even cited the majority’s","paragraph_id":"para_763"},{"text":"invocation of the Seventh Amendment as an example of the","paragraph_id":"para_764"},{"text":"legal-equitable dichotomy at work. Id. (citing 534 U.S. at","paragraph_id":"para_765"},{"text":"217). With Great-West holding that there’s a difference","paragraph_id":"para_766"},{"text":"between legal and equitable restitution, and Justice Ginsburg","paragraph_id":"para_767"},{"text":"conceding that the majority’s test for teasing out that","paragraph_id":"para_768"},{"text":"CFPB V. CASHCALL, INC. 25","paragraph_id":"para_769"},{"text":"difference coincides with the Seventh Amendment analysis,","paragraph_id":"para_770"},{"text":"not even the Great-West dissent supports Commerce Planet.","paragraph_id":"para_771"},{"text":"Commerce Planet also relied on the Supreme Court’s","paragraph_id":"para_772"},{"text":"decision in Teamsters. There, the Court noted that “we have","paragraph_id":"para_773"},{"text":"characterized damages as equitable where they are","paragraph_id":"para_774"},{"text":"restitutionary.” 494 U.S. at 570. That sentence, according","paragraph_id":"para_775"},{"text":"to Commerce Planet, “strongly suggests” that restitution “is","paragraph_id":"para_776"},{"text":"considered equitable under the Seventh Amendment even if","paragraph_id":"para_777"},{"text":"imposed as a merely personal liability upon the defendant.”","paragraph_id":"para_778"},{"text":"815 F.3d at 602. Whatever the meaning of the line from","paragraph_id":"para_779"},{"text":"Teamsters, it’s hardly a definitive statement about how to","paragraph_id":"para_780"},{"text":"understand a constitutional right. And in any event, it was","paragraph_id":"para_781"},{"text":"expressly disclaimed in—wait for it—Great-West. As the","paragraph_id":"para_782"},{"text":"majority explained, “[W]hile we noted” in Teamsters that","paragraph_id":"para_783"},{"text":"“‘we have characterized damages as equitable where they","paragraph_id":"para_784"},{"text":"are restitutionary,’ we did not (and could not) say that all","paragraph_id":"para_785"},{"text":"forms of restitution are equitable.” Great-W., 534 U.S. at","paragraph_id":"para_786"},{"text":"218 n.4 (quoting Teamsters, 494 U.S. at 570). Commerce","paragraph_id":"para_787"},{"text":"Planet simply ignores that language.","paragraph_id":"para_788"},{"text":"To sum up: Commerce Planet bucks the Supreme","paragraph_id":"para_789"},{"text":"Court’s decision in Great-West. And its reliance on","paragraph_id":"para_790"},{"text":"Teamsters is also misplaced. We practically conceded as","paragraph_id":"para_791"},{"text":"much; the panel wrote that the Supreme Court’s prior","paragraph_id":"para_792"},{"text":"precedent on restitution and the Seventh Amendment “may","paragraph_id":"para_793"},{"text":"need to be reconsidered in light of Great-West’s holding.”","paragraph_id":"para_794"},{"text":"Com. Planet, 815 F.3d at 602. Although the panel viewed","paragraph_id":"para_795"},{"text":"“that as a matter the Supreme Court must resolve,” id., it’s","paragraph_id":"para_796"},{"text":"hard to see how the Great-West majority could have been","paragraph_id":"para_797"},{"text":"clearer: “[N]ot all relief falling under the rubric of restitution","paragraph_id":"para_798"},{"text":"is available in equity,” 534 U.S. at 212; see id. at 217","paragraph_id":"para_799"},{"text":"(analogizing to the Seventh Amendment analysis). Yes,","paragraph_id":"para_800"},{"text":"earlier cases suggested that restitution is an exclusively","paragraph_id":"para_801"},{"text":"equitable remedy. See, e.g., id. at 214–16. But our job is to","paragraph_id":"para_802"},{"text":"26 CFPB V. CASHCALL, INC.","paragraph_id":"para_803"},{"text":"ensure that our law tracks current Supreme Court","paragraph_id":"para_804"},{"text":"precedent.1 See, e.g., Miller v. Gammie, 335 F.3d 889, 899–","paragraph_id":"para_805"},{"text":"900 (9th Cir. 2003) (en banc). And when the Court makes a","paragraph_id":"para_806"},{"text":"clear statement distinguishing its prior cases—as it did in","paragraph_id":"para_807"},{"text":"Great-West—we cannot bury our head in the sand until the","paragraph_id":"para_808"},{"text":"Justices have been even clearer.","paragraph_id":"para_809"},{"text":"B","paragraph_id":"para_810"},{"text":"Recent cases highlight Commerce Planet’s flaws. In Liu,","paragraph_id":"para_811"},{"text":"the Supreme Court performed the “familiar” task of","paragraph_id":"para_812"},{"text":"distinguishing equitable remedies, concluding that","paragraph_id":"para_813"},{"text":"traditional equity courts could not award relief that exceeded","paragraph_id":"para_814"},{"text":"“a defendant’s net profits from wrongdoing.” 591 U.S. at","paragraph_id":"para_815"},{"text":"78, 85. And as we hold today, Liu’s reasoning applies “to","paragraph_id":"para_816"},{"text":"all categories of equitable relief, including restitution.” Op.","paragraph_id":"para_817"},{"text":"at 12 (quoting CFPB v. Consumer First Legal Grp., LLC, 6","paragraph_id":"para_818"},{"text":"F.4th 694, 710 (7th Cir. 2021)). It follows from Liu that","paragraph_id":"para_819"},{"text":"when claims for restitution exceed net profits, that restitution","paragraph_id":"para_820"},{"text":"1 That is not to say we can treat Supreme Court precedent as “implicitly","paragraph_id":"para_821"},{"text":"overruled.” Mallory v. Norfolk S. Ry. Co., 600 U.S. 122, 136 (2023)","paragraph_id":"para_822"},{"text":"(quotation omitted). “As a circuit court, even if recent Supreme Court","paragraph_id":"para_823"},{"text":"jurisprudence has perhaps called into question the continuing viability of","paragraph_id":"para_824"},{"text":"its precedent, we are bound to follow a controlling Supreme Court","paragraph_id":"para_825"},{"text":"precedent until it is explicitly overruled by that Court.” Nunez-Reyes v.","paragraph_id":"para_826"},{"text":"Holder, 646 F.3d 684, 692 (9th Cir. 2011) (en banc) (cleaned up). That","paragraph_id":"para_827"},{"text":"rule does not apply here. Great-West was clear that existing precedent","paragraph_id":"para_828"},{"text":"only told part of the story when it comes to legal versus equitable","paragraph_id":"para_829"},{"text":"restitution. 534 U.S. at 214–15 (“[O]ur cases have not previously drawn","paragraph_id":"para_830"},{"text":"this fine distinction between restitution at law and restitution in equity,","paragraph_id":"para_831"},{"text":"but neither have they involved an issue to which the distinction was","paragraph_id":"para_832"},{"text":"relevant.” (emphasis added)). So Great-West did not overrule or cabin","paragraph_id":"para_833"},{"text":"those cases, implicitly or otherwise. See id. at 215 (“Mertens did not","paragraph_id":"para_834"},{"text":"purport to change the well-settled principle that restitution is ‘not an","paragraph_id":"para_835"},{"text":"exclusively equitable remedy’ . . . .”) (quoting Reich, 33 F.3d at 756)). It","paragraph_id":"para_836"},{"text":"merely developed another nuance that the Court had not considered.","paragraph_id":"para_837"},{"text":"CFPB V. CASHCALL, INC. 27","paragraph_id":"para_838"},{"text":"is “more properly characterized as legal.” Op. at 12. Yet","paragraph_id":"para_839"},{"text":"Commerce Planet treats legal and equitable restitution the","paragraph_id":"para_840"},{"text":"same under the Seventh Amendment, declining to address","paragraph_id":"para_841"},{"text":"the distinction that the Supreme Court reaffirmed in Liu. 815","paragraph_id":"para_842"},{"text":"F.3d at 602.","paragraph_id":"para_843"},{"text":"The Supreme Court’s recent decision in Jarkesy is even","paragraph_id":"para_844"},{"text":"more instructive. The issue in Jarkesy was whether the","paragraph_id":"para_845"},{"text":"Seventh Amendment is implicated when the Securities and","paragraph_id":"para_846"},{"text":"Exchange Commission seeks civil penalties against a","paragraph_id":"para_847"},{"text":"defendant in an in-house adjudication. 144 S. Ct. at 2127.","paragraph_id":"para_848"},{"text":"Answering yes, the Court found that the remedy in that case","paragraph_id":"para_849"},{"text":"(civil penalties) was “all but dispositive.” Id. at 2129. By","paragraph_id":"para_850"},{"text":"seeking a “prototypical common law remedy,” the Court","paragraph_id":"para_851"},{"text":"reasoned, the SEC triggered the civil jury right. Id. at 2129–","paragraph_id":"para_852"},{"text":"30; see Tull, 481 U.S. at 422 (“A civil penalty was a type of","paragraph_id":"para_853"},{"text":"remedy at common law that could only be enforced in courts","paragraph_id":"para_854"},{"text":"of law.”). Legal restitution, like a civil penalty, is a","paragraph_id":"para_855"},{"text":"“prototypical common law remedy.” As the Court explained","paragraph_id":"para_856"},{"text":"in Great-West, the right to legal restitution “derived from the","paragraph_id":"para_857"},{"text":"common-law writ of assumpsit.” 534 U.S. at 213 (citing 1","paragraph_id":"para_858"},{"text":"Dobbs § 4.2(1), at 571). Putting all this together, if Jarkesy","paragraph_id":"para_859"},{"text":"counsels that a request for common law remedies","paragraph_id":"para_860"},{"text":"“effectively decides” the Seventh Amendment question, and","paragraph_id":"para_861"},{"text":"if Great-West says that legal (not equitable) restitution is a","paragraph_id":"para_862"},{"text":"common law remedy, then Commerce Planet’s Seventh","paragraph_id":"para_863"},{"text":"Amendment holding cannot stand. See Jarkesy, 144 S. Ct.","paragraph_id":"para_864"},{"text":"at 2130.","paragraph_id":"para_865"},{"text":"C","paragraph_id":"para_866"},{"text":"Finally, Commerce Planet puts us at odds with the Fifth","paragraph_id":"para_867"},{"text":"Circuit, which interprets Great-West to require a jury trial on","paragraph_id":"para_868"},{"text":"statutory claims for legal restitution. In ERR, the Fifth","paragraph_id":"para_869"},{"text":"Circuit addressed whether the Seventh Amendment","paragraph_id":"para_870"},{"text":"28 CFPB V. CASHCALL, INC.","paragraph_id":"para_871"},{"text":"guarantees a jury trial on the government’s claims for","paragraph_id":"para_872"},{"text":"removal costs under the Oil Pollution Act. 35 F.4th at 407.","paragraph_id":"para_873"},{"text":"Pointing to Great-West’s distinction between legal and","paragraph_id":"para_874"},{"text":"equitable restitution, the court held that oil removal costs","paragraph_id":"para_875"},{"text":"“are most analogous to restitution at law.” Id. at 412–13","paragraph_id":"para_876"},{"text":"(emphasis removed). The court expressly rejected the","paragraph_id":"para_877"},{"text":"argument—so central to Commerce Planet—that","paragraph_id":"para_878"},{"text":"“restitution always sounds in equity.” Id. at 416 (citing","paragraph_id":"para_879"},{"text":"Hatco Corp. v. W.R. Grace & Co. Conn., 59 F.3d 400, 412","paragraph_id":"para_880"},{"text":"(3d Cir. 1995)). “Whatever the truth of that premise” before","paragraph_id":"para_881"},{"text":"2002, the court explained, “it has been squarely foreclosed","paragraph_id":"para_882"},{"text":"by subsequent Supreme Court precedent.” Id. (citing Great-","paragraph_id":"para_883"},{"text":"W., 534 U.S. at 212, 215); see id. at 414 (“[W]e’re obligated","paragraph_id":"para_884"},{"text":"to follow Great-West Life.”).","paragraph_id":"para_885"},{"text":"The Fifth Circuit concluded that Great-West thus","paragraph_id":"para_886"},{"text":"compelled a jury trial on the government’s claims, given that","paragraph_id":"para_887"},{"text":"the Supreme Court conducted “the exact same inquiry [its]","paragraph_id":"para_888"},{"text":"precedent requires for the Seventh Amendment.” Id. at 414;","paragraph_id":"para_889"},{"text":"see also Pereira v. Farace, 413 F.3d 330, 340 (2d Cir. 2005)","paragraph_id":"para_890"},{"text":"(“Like our sister circuits, we are compelled to read Great-","paragraph_id":"para_891"},{"text":"West as broadly as it is written.”). The Fifth Circuit got it","paragraph_id":"para_892"},{"text":"right.","paragraph_id":"para_893"},{"text":"III","paragraph_id":"para_894"},{"text":"The Seventh Amendment right is “of such importance","paragraph_id":"para_895"},{"text":"and occupies so firm a place in our history and jurisprudence","paragraph_id":"para_896"},{"text":"that any seeming curtailment of the right” must “be","paragraph_id":"para_897"},{"text":"scrutinized with the utmost care.” Jarkesy, 144 S. Ct. at","paragraph_id":"para_898"},{"text":"2128 (quoting Dimick v. Schiedt, 293 U.S. 474, 486 (1935)).","paragraph_id":"para_899"},{"text":"Commerce Planet did not scrutinize the Seventh","paragraph_id":"para_900"},{"text":"Amendment carefully. And the Supreme Court has whittled","paragraph_id":"para_901"},{"text":"away at Commerce Planet. See AMG Cap. Mgmt., 593 U.S.","paragraph_id":"para_902"},{"text":"at 71, 75 (abrogating Commerce Planet’s holding regarding","paragraph_id":"para_903"},{"text":"CFPB V. CASHCALL, INC. 29","paragraph_id":"para_904"},{"text":"restitution awards as “ancillary relief”); see also FTC v.","paragraph_id":"para_905"},{"text":"AMG Cap. Mgmt., LLC, 910 F.3d 417, 437 (9th Cir. 2018)","paragraph_id":"para_906"},{"text":"(O’Scannlain, J., specially concurring) (“Our decision in","paragraph_id":"para_907"},{"text":"Commerce Planet is therefore a relic of that ancien regime","paragraph_id":"para_908"},{"text":"that the Court over the last few decades has expressly and","paragraph_id":"para_909"},{"text":"repeatedly repudiated.”), rev’d, 593 U.S. 67 (2021). It’s","paragraph_id":"para_910"},{"text":"time to put the final nail in the coffin.","paragraph_id":"para_911"},{"text":"This is not the case for that final nail since CashCall","paragraph_id":"para_912"},{"text":"waived a jury trial. See Op. at 9–11. But in the right case,","paragraph_id":"para_913"},{"text":"the en banc court should get rid of Commerce Planet root","paragraph_id":"para_914"},{"text":"and branch. 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