Opinion ID: 773212
Heading Depth: 2
Heading Rank: 1

Heading: standard of review

Text: 6 This court reviews de novo a district court's dismissal for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Romano v. Bible, 169 F.3d 1182, 1185 (9th Cir. 1999). We can affirm the district court's dismissal for failure to state a claim on any basis fairly supported by the record. Id. The substantive law of California applies in this removed diversity action. Stanford Ranch, Inc. v. Maryland Cas. Co., 89 F.3d 618, 624 (9th Cir. 1996). Specifically: 7 When interpreting state law, federal courts are bound by decisions of the state's highest court. In the absence of such a decision, a federal court must predict how the highest state court would decide the issue using intermediate appellate court decisions, decisions from other jurisdictions, statutes, treatises, and restatements as guidance. However, where there is no convincing evidence that the state supreme court would decide differently, a federal court is obligated to follow the decisions of the state's intermediate appellate courts. 8 Lewis v. Tel. Employees Credit Union, 87 F.3d 1537, 1545 (9th Cir. 1996) (internal quotations and citations omitted). 9