Commercial Litigation and Arbitration

Factors Rendering a Finding Clearly Erroneous — Application of Equitable Defenses / Equitable Doctrines Reviewed under Abuse of Discretion Standard

From Seller Agency Council, Inc. v. Kennedy Ctr. for Real Estate Educ., Inc., 2010 U.S. App. LEXIS 18446 (9th Cir. Sept. 3, 2010):

To the extent that Appellants challenge the district court's factual findings, such findings are reviewed for clear error. Fed. R. Civ. P. 52(a)(6). A district court's finding of fact is clearly erroneous if it is "(1) 'illogical,' (2) 'implausible,' or (3) without 'support in inferences that may be drawn from the facts in the record.'" United States v. Hinkson, 585 F.3d 1247, 1262 (9th Cir. 2009) (citing Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 577 (1985)).

The application of the equitable doctrine of unclean hands is within the discretion of the trial court and is reviewed for abuse of that discretion. See TransWorld Airlines, Inc. v. Am. Coupon Exch., Inc., 913 F.2d 676, 694 (9th Cir. 1990) (citing Wash. Capitols Basketball Club, Inc. v. Barry, 419 F.2d 472, 478 (9th Cir. 1969) (finding that the application of the unclean hands doctrine was committed to the district court's discretion).

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