Ross Dress for Less, Inc. v. Makarios-Oregon, LLC ( 2022 )


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  •                  FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    ROSS DRESS FOR LESS, INC., a             No. 21-35106
    Delaware corporation,
    Plaintiff-Counter-Defendant-         D.C. No.
    Appellant,    3:14-cv-01971-SI
    v.
    MAKARIOS-OREGON, LLC, an
    Oregon limited liability company,
    Defendant-Counter-Claimant-
    Appellee,
    and
    WALKER PLACE, LLC, an Oregon
    limited liability company; CHARLES
    W. CALOMARIS; KATHERINE
    CALOMIRIS TOMPROS; JENNIFER
    CALOMIRIS,
    Defendants.
    2    ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    ROSS DRESS FOR LESS, INC., a                No. 21-35132
    Delaware corporation,
    Plaintiff-Counter-Defendant-            D.C. No.
    Appellee,        3:14-cv-01971-SI
    v.
    OPINION
    WALKER PLACE, LLC, an Oregon
    limited liability company,
    Defendant,
    and
    CHARLES W. CALOMARIS;
    KATHERINE CALOMIRIS TOMPROS;
    JENNIFER CALOMIRIS,
    Defendants-Appellants,
    MAKARIOS-OREGON, LLC, an
    Oregon limited liability company,
    Defendant-Counter-Claimant-
    Appellant.
    Appeal from the United States District Court
    for the District of Oregon
    Michael H. Simon, District Judge, Presiding
    Argued and Submitted May 10, 2022
    Portland, Oregon
    Filed July 8, 2022
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                           3
    Before: Richard C. Tallman and Morgan Christen, Circuit
    Judges, and Frederic Block,* District Judge.
    Opinion by Judge Christen
    SUMMARY**
    Jury Trial
    The panel affirmed the district court’s ruling granting
    defendant-appellee Makarios-Oregon, LLC’s motion to
    withdraw its demand for a jury trial in a diversity action
    involving the parties’ lease obligations.
    Plaintiff Ross Dress for Less, Inc. sued Makarios seeking
    declaratory relief regarding its end-of-lease obligations in
    connection with Ross’s lease of the Richmond Building, as to
    which Makarios had received an assignment of rights and
    thereafter acted as Ross’s landlord.            Makarios filed
    counterclaims against Ross and demanded a jury trial on its
    counterclaims. In January 2016, Ross filed a document
    waiving its right to a jury trial under Fed. R. Civ. P. 38. In
    November 2018, Makarios moved to withdraw its jury
    demand. Ross argued it was entitled to rely on Makarios’s
    request for a jury. Makarios argued that because Ross waived
    its right to a jury when it entered into the Richmond Building
    *
    The Honorable Frederic Block, United States District Judge for the
    Eastern District of New York, sitting by designation.
    **
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    4      ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    lease, Ross could not object to Makarios’s withdrawal of its
    jury demand or to take advantage of the general rule that
    parties must consent to a bench trial after a proper jury
    demand is made. The district court held a four-day Phase II
    bench trial and entered judgment in favor of Makarios.
    Fed. R. Civ. P. 38(d) provides that a proper jury trial
    demand “may be withdrawn only if the parties consent.” Fed.
    R. Civ. P. 39 requires trial by jury “on all issues demanded”
    unless the parties stipulate or the “court, on motion, or on its
    own, finds that on some or all of those issues there is no
    federal right to a jury trial.”
    Because jurisdiction in the district court was based on
    diversity of citizenship, Oregon substantive law and federal
    procedural law governed.
    Ross contended that the district court erred by allowing
    Makarios to unilaterally withdraw its demand for a jury trial
    because Fed. R. Civ. P. 38(d) and 39(a) required Ross’s
    consent. Neither party argued that the waiver in Section
    13.04 of the lease was unknowing or involuntary, but the
    parties disagreed on the scope of the provisions. First,
    applying Oregon law, the panel held that the ordinary
    meaning of Section 13.04 was clear and it established that
    Ross waived its right to a jury trial on counterclaims filed by
    Makarios. The panel affirmed the district court’s ruling as to
    waiver. Second, the panel rejected Ross’s argument that even
    if it contractually waived its jury trial right, it was still
    entitled to rely on Makarios’s jury demand under Rules 38(d)
    and 39(a). The panel affirmed the district court’s conclusion
    that Rules 38 and 39 did not apply because Ross had no right
    to a jury trial by virtue of its waiver in Section 13.04 of its
    lease. The panel held that typically, the combination of Rules
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON              5
    38(d) and 39(a) prevents a party from unilaterally
    withdrawing its jury demand, even when no other party has
    requested a jury trial. Although the right to rely on another
    party’s jury demand is not unlimited, the exceptions to the
    Rules did not apply here.
    The panel resolved the bulk of the issues on appeal in a
    concurrently filed memorandum disposition.
    COUNSEL
    Gregory D. Call (argued) and Tracy E. Reichmuth, Crowell
    & Moring LLP, San Francisco, California; Joel A. Parker,
    Rebecca Boyette, and Sara Kobak, Schwabe Williamson &
    Wyatt PC, Portland, Oregon; for Plaintiff-Counter-
    Defendant-Appellant/Cross-Appellee.
    Molly K. Honoré (argued), Paul S. Bierly, and Jeffrey M.
    Edelson, Markowitz Herbold PC, Portland, Oregon, for
    Defendant-Counter-Claimant-Appellee/Cross-Appellant.
    6      ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    OPINION
    CHRISTEN, Circuit Judge:
    Plaintiff-appellant Ross Dress for Less, Inc. appeals the
    district court’s ruling granting defendant-appellee Makarios-
    Oregon, LLC’s motion to withdraw its demand for a jury
    trial. Ross argues the district court erred because Federal
    Rules of Civil Procedure 38 and 39 generally allow a party to
    rely on another party’s jury demand without having to file its
    own demand. Ross further argues that the Rules require that
    parties consent before the court may conduct a bench trial if
    a proper jury demand has been made. Because Ross waived
    its right to a jury trial in its lease with Makarios, we affirm
    the district court’s ruling.
    I
    This appeal arises from Ross’s lease of the Richmond
    Building, a five-story property located at 600 SW Fifth
    Avenue in Portland, Oregon. The basement, first floor, and
    second floor of the Richmond Building are connected by
    concrete slabs to the same floors of the adjacent Failing
    Building, a twelve-story structure on the National Register of
    Historic Places. In September 1996, Ross assumed all rights
    in the leases for the Richmond and Failing Buildings. Ross’s
    lease for both buildings expired on September 30, 2016.
    From 1986 to 2017, the Calomiris family owned the
    Richmond Building. Makarios-Oregon is an entity associated
    with the Calomiris family. Makarios received an assignment
    of all rights to the lease of the Richmond Building in 2011,
    and thereafter acted as Ross’s landlord.
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                 7
    The lease for the Richmond Building was a “triple-net
    lease,” meaning Ross, as tenant, was responsible for all taxes,
    insurance, and other expenses related to the building’s
    operation, maintenance, and repair. Ross paid $34,000
    annually in rent for the entirety of its lease. Four provisions
    of the lease are at the center of the parties’ dispute. Two
    governed Ross’s end-of-lease obligations: Section 16.01
    required Ross to surrender the property “in good order,
    condition, and repair, except for reasonable wear and tear,”
    and Section 16.02 required Ross to “make such alterations to
    the building then erected on the demised premises as . . .
    necessary to constitute such building an entirely independent
    and self-sufficient structure.” The other two provisions are
    relevant to the jury demand issue. Section 13.04 of the lease
    provided that “[t]he Tenant waives all right to trial by jury in
    any summary or other judicial proceedings hereafter
    instituted by the Landlord against the Tenant in respect to the
    demised premises.” Section 26.01 stated that “the terms,
    conditions, covenants, provisions and agreements herein
    contained shall be binding upon and inure to the benefit of the
    Landlord, its successors and assigns, and the Tenant, its
    successors and assigns.”
    In December 2014, Ross sued Makarios and then-owner
    of the Failing Building, Walker Place, in the United States
    District Court for the District of Oregon seeking declaratory
    relief regarding its end-of-lease obligations for the Richmond
    and Failing Buildings. Ross asked the district court for a
    declaratory judgment establishing that: (1) Ross was only
    obligated to perform the work necessary to physically
    separate the Richmond and Failing Buildings; (2) the work
    Ross proposed to Makarios and Walker Place was sufficient
    to satisfy its lease obligations; (3) Ross was not obligated to
    perform additional work demanded by the landlords; and
    8      ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    (4) the landlords could not withhold consent to Ross’s
    proposed plans. Ross’s complaint also demanded a jury trial.
    Both defendants filed counterclaims against Ross alleging
    breach of contract and requesting a declaratory judgment
    regarding Ross’s end-of-lease obligations.               Makarios
    demanded a jury trial on its counterclaims. The parties
    agreed to bifurcate the case into two phases: in Phase I, the
    parties were to litigate their declaratory relief claims, and
    their remaining claims and damages were to be litigated in
    Phase II. In January 2016, Ross filed a document attesting
    that it “waives its right to a jury trial under the Federal Rules
    of Civil Procedure 38, as to any issue in this case for which
    a right to a jury trial exists.” The minutes for a March 2016
    status conference with the district court memorialized that
    “all parties waived their rights to a jury trial on all claims and
    counterclaims” and the court would conduct a “bench trial,
    rather than a jury trial.” But it appears the court interpreted
    these waivers to apply only to Phase I of the bifurcated claims
    because subsequent entries on the district court’s docket
    indicate the court anticipated Phase II would be tried to a
    jury.
    At the conclusion of the Phase I bench trial, the district
    court denied in part and granted in part the parties’ requests
    for declaratory judgment. The court ruled that Ross’s
    proposed plans to comply with its surrender obligations were
    insufficient, but it also ruled that Ross was not required to
    comply with the full scope of work the landlords demanded.
    The court retained jurisdiction to address the parties’
    remaining claims and to calculate damages in Phase II. Both
    defendants filed amended counterclaims against Ross in April
    2017, and both demanded a jury trial on those claims. Ross’s
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                9
    answers to the amended counterclaims also included a jury
    demand.
    In September 2017, Ross entered into a global settlement
    agreement with Walker Place. Thereafter, multiple entries on
    the district court’s docket reflect the court’s plan to hold a
    jury trial on Makarios’s counterclaims against Ross. But in
    November 2018, Makarios moved to withdraw its jury
    demand. The district court received briefing on the motion
    from both parties. In its opposition, Ross argued it was
    entitled to rely on Makarios’s request for a jury and that
    pursuant to Federal Rules of Civil Procedure 38 and 39,
    Makarios could not withdraw its demand unless Ross
    consented. See Reid Bros. Logging Co. v. Ketchikan Pulp
    Co., 
    699 F.2d 1292
    , 1304 (9th Cir. 1983) (explaining Rules
    38 and 39 are “designed to allow parties to rely upon the jury
    demand of other parties to the same case” without having to
    file their own demand). According to Makarios, because
    Ross waived its right to a jury trial when it entered into the
    Richmond Building lease, Ross had no ability to object to
    Makarios’s withdrawal of its jury demand or to take
    advantage of the general rule that parties must consent to a
    bench trial after a proper jury demand is made, see, e.g., U.S.
    Sec. & Exch. Comm’n v. Jensen, 
    835 F.3d 1100
    , 1107 (9th
    Cir. 2016).
    The district court conducted a telephonic hearing on
    Makarios’s motion in December 2018, and in an oral ruling
    the court granted Makarios’s motion. The court reasoned that
    Section 13.04 of the lease included “an unequivocal and
    voluntary and knowing waiver . . . by the tenant and its
    successors, including Ross, to a jury trial.” The court
    acknowledged that Rules 38 and 39 generally allow a party to
    rely on another party’s jury demand, but explained that
    10     ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    because the lease included a waiver of the tenant’s right to a
    jury trial, Ross could not invoke the protections of the Rules
    to oppose Makarios’s withdrawal of its demand. “[I]n order
    to eliminate any potential risk of prejudice to Ross” for
    having to prepare for a bench trial, the district court
    authorized Ross to reopen any depositions and to substitute
    any of its expert witnesses.
    In December 2019, the court held a four-day Phase II
    bench trial. The district court entered final judgment in favor
    of Makarios for $2,931,829 in January 2021. Ross timely
    appealed, and Makarios cross-appealed. We have jurisdiction
    pursuant to 
    28 U.S.C. § 1291
    . The bulk of the issues on
    appeal are resolved in a concurrently filed memorandum
    disposition. Here, we affirm the district court’s order
    granting Makarios’s motion to withdraw its jury trial demand.
    II
    Whether a party is entitled to a jury trial is a question of
    law that we review de novo. Thomas v. Or. Fruit Prods. Co.,
    
    228 F.3d 991
    , 995 (9th Cir. 2000); Jensen, 835 F.3d at 1106.
    We also review de novo “the district court’s interpretation of
    contract provisions,” but we review the district court’s factual
    findings for clear error. OneBeacon Ins. Co. v. Hass Indus.,
    Inc., 
    634 F.3d 1092
    , 1096 (9th Cir. 2011). Because
    jurisdiction in the district court was based on diversity of
    citizenship, Oregon substantive law and federal procedural
    law govern. See Feldman v. Allstate Ins. Co., 
    322 F.3d 660
    ,
    666 (9th Cir. 2003). When applying Oregon substantive law,
    we are bound by decisions of the Oregon Supreme Court. See
    In re Kirkland, 
    915 F.2d 1236
    , 1238–39 (9th Cir. 1990).
    Where there is no Oregon Supreme Court decision on point,
    we must use “intermediate appellate court decisions,
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                 11
    decisions from other jurisdictions, statutes, treatises, and
    restatements as guidance” to decide how the Oregon Supreme
    Court would rule. 
    Id. at 1239
    .
    III
    Ross contends the district court erred by allowing
    Makarios to unilaterally withdraw its demand for a jury trial
    because Rules 38(d) and 39(a) required Ross’s consent.
    Makarios maintains that Ross cannot take advantage of Rules
    38 and 39 because, pursuant to the terms of the parties’ lease,
    Ross waived its right to a jury trial in any proceeding initiated
    by the landlord. We must decide: (1) whether Ross waived
    its right to a jury trial pursuant to Section 13.04; and, if so,
    (2) whether Ross is nevertheless entitled to rely on Rules 38
    and 39 to oppose Makarios’s withdrawal of its jury demand.
    A
    “Because the right to a jury trial is a fundamental right
    guaranteed to our citizenry by the Constitution,” we “indulge
    every reasonable presumption against waiver.” Solis v.
    County of Los Angeles, 
    514 F.3d 946
    , 953 (9th Cir. 2008)
    (quoting Pradier v. Elespuru, 
    641 F.2d 808
    , 811 (9th Cir.
    1981)). A federal court sitting in diversity jurisdiction
    applies federal procedural law to determine the validity of a
    jury trial waiver, unless the underlying state law is more
    protective than federal law. See In re County of Orange,
    
    784 F.3d 520
    , 530–31 (9th Cir. 2015). Like federal law,
    Oregon law permits a party to waive its constitutional right to
    a jury trial by knowing and voluntary agreement. See Hays
    Grp., Inc. v. Biege, 
    193 P.3d 1028
    , 1029–30 (Or. Ct. App.
    2008). Neither Ross nor Makarios argue the waiver in
    12     ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    Section 13.04 of the lease was unknowing or involuntary, but
    the parties do disagree on the scope of the provision.
    Section 13.04 provides that “[t]he Tenant waives all right
    to trial by jury in any summary or other judicial proceedings
    hereafter instituted by the Landlord against the Tenant in
    respect to the demised premises.” Oregon’s three-part test for
    contract interpretation governs our interpretation of this
    provision. See Yogman v. Parrott, 
    937 P.2d 1019
    , 1021 (Or.
    1997). “First, the court examines the text of the disputed
    provision, in the context of the document as a whole. If the
    provision is clear, the analysis ends.” 
    Id.
     If the contractual
    provision is ambiguous, the court moves to the second step
    and examines extrinsic evidence of the parties’ intent. Id.
    at 1022. If that step does not resolve the ambiguity, the court
    proceeds to the last step and “relies on appropriate maxims of
    [contract] construction.” Id.
    Oregon courts routinely rely on dictionary definitions at
    the first step to understand the “ordinary meaning” of a
    contract’s terms. See id. To understand the meaning of the
    term “proceeding” as it applies in Section 13.04, both parties
    quote Black’s Law Dictionary, which defines “proceeding”
    to include:
    1. The regular and orderly progression of a
    lawsuit, including all acts and events between
    the time of commencement and the entry of
    judgment. 2. Any procedural means for
    seeking redress from a tribunal or agency.
    3. An act or step that is part of a larger action.
    4. The business conducted by a court or other
    official body; a hearing.
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON              13
    Proceeding, BLACK’S LAW DICTIONARY (11th ed. 2019). The
    Oregon Court of Appeals has also cited with approval Black’s
    definition of the term “judicial proceeding,” as meaning “any
    court proceeding; any proceeding initiated to procure an order
    or decree, whether in law or in equity.” Baldwin v. Seida,
    
    441 P.3d 720
    , 725 (Or. Ct. App. 2019) (alterations and
    emphases omitted). Cf. Whelchel v. Washington, 
    232 F.3d 1197
    , 1209 (9th Cir. 2000) (concluding that a deposition fell
    within the meaning of a “judicial proceeding,” as defined in
    the Sixth Edition of Black’s Law Dictionary).
    Ross argues Section 13.04’s waiver does not apply to the
    present dispute because Ross was the first to file suit and
    Section 13.04 only applies to proceedings initiated by the
    landlord. We are not persuaded. The ordinary meaning of
    “judicial proceeding” compels a broader interpretation of
    Section 13.04 than the one Ross advocates. Makarios can
    fairly be said to have initiated judicial proceedings when it
    filed counterclaims against Ross because, like Ross, it too
    invoked a “procedural means for seeking redress” from the
    court by filing its own claims. See Proceeding, BLACK’S
    LAW DICTIONARY (11th ed. 2019). At bottom, Section 13.04
    unequivocally states the tenant “waives all right to trial by
    jury in any . . . judicial proceedings . . . .”
    The ordinary meaning of Section 13.04 is clear and it
    establishes that Ross waived its right to a jury trial on
    counterclaims filed by Makarios. Because the ordinary
    meaning of the disputed provision is unambiguous, we need
    not engage in the latter two steps of Oregon’s three-part test
    for contract interpretation.       See Yogman, 937 P.2d
    at 1021–22. And because the parties do not dispute whether
    14       ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    Ross’s waiver was knowing and voluntary, we affirm the
    district court’s ruling as to waiver. 1
    B
    Next, Ross argues that even if it contractually waived its
    jury trial right, it was still entitled to rely on Makarios’s jury
    demand per Rules 38(d) and 39(a). Rule 38(d) provides that
    a proper jury trial demand “may be withdrawn only if the
    parties consent.” Fed. R. Civ. P. 38(d). Rule 39(a) requires
    trial by jury “on all issues so demanded” unless the parties
    stipulate or “the court, on motion or on its own, finds that on
    some or all of those issues there is no federal right to a jury
    trial.” Fed. R. Civ. P. 39(a)(1)–(2).
    Ross argues that it was entitled to rely on Makarios’s
    proper demand for a jury trial and that Rules 38 and 39
    prevented Makarios from unilaterally withdrawing its demand
    because the parties did not stipulate to a bench trial and the
    court did not find that no right to a jury trial exists. The
    district court concluded Rules 38 and 39 did not apply
    because Ross had no right to a jury trial by virtue of its
    waiver in Section 13.04 of its lease. The precise function of
    Rules 38 and 39 in the scenario presented here appears to be
    an issue of first impression in our court.
    1
    The parties did not raise, and the district court did not address,
    Ross’s January 2016 filing in the district court stating that Ross waived
    “its right to a jury trial under [the] Federal Rule[s] . . . as to any issue in
    this case for which a right to jury trial exists.” As noted, some entries on
    the district court docket that post-date the parties’ March 2016 status
    conference indicate the court was contemplating that Phase II would be
    tried to a jury. Because Section 13.04 was a knowing and voluntary
    waiver, we need not decide whether the January 2016 filing constituted a
    separate waiver of Ross’s right to a jury trial.
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                15
    A party is generally entitled to rely on another party’s
    original jury demand and need not file their own. See U.S.
    Sec. & Exch. Comm’n v. Jensen, 
    835 F.3d 1100
    , 1107 (9th
    Cir. 2016). Typically, the combination of Rules 38(d) and
    39(a) prevents a party from unilaterally withdrawing its jury
    demand, even when no other party has requested a jury trial.
    Cf. White v. McGinnis, 
    903 F.2d 699
    , 703 (9th Cir. 1990) (en
    banc) (“Rule 39(a) is designed to protect against some
    careless statement or ambiguous document being held to be
    a waiver when one was not intended.”). But the right to rely
    on another party’s jury demand is not unlimited. For
    example, we have said the right extends only to issues that the
    original demand actually covered. See, e.g., Cal. Scents v.
    Surco Prod., Inc., 
    406 F.3d 1102
    , 1105–08 (9th Cir. 2005)
    (explaining a party bringing claims may not rely on another
    party’s jury demand unless those claims “turn on the same
    matrix of facts” or “concern [] the same general area of
    dispute” as the claims on which a demand was originally
    made (alterations in original) (first quoting Las Vegas Sun,
    Inc. v. Summa Corp., 
    610 F.2d 614
    , 620 (9th Cir. 1979); and
    then quoting In re N-500L Cases, 
    691 F.2d 15
    , 23 (9th Cir.
    1982))).
    We have recognized at least two other exceptions to these
    Rules. First, a party may consent to the unilateral withdrawal
    of a jury demand through its conduct, and thereby waive its
    right to rely on the protections of Rules 38(d) and 39(a). See
    Reid Bros. Logging Co. v. Ketchikan Pulp Co., 
    699 F.2d 1292
    , 1304–05 (9th Cir. 1983). “Once a party demonstrates
    through its actions that it has not relied on another’s jury
    demand in failing to file its own, the reason for allowing it to
    object when another side unilaterally seeks to withdraw its
    demand dissolves.” Fuller v. City of Oakland, 
    47 F.3d 1522
    ,
    1532 (9th Cir. 1995). For example, we will decline to enforce
    16       ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    Rules 38 and 39 “when the party claiming the jury trial right
    is attempting to act strategically—participating in the bench
    trial in the hopes of achieving a favorable outcome, then
    asserting lack of consent to the bench trial when the result
    turns out to be unfavorable to him.” Solis v. County of Los
    Angeles, 
    514 F.3d 946
    , 955 (9th Cir. 2008). And in White,
    we explained that a party who “vigorously” argues its case to
    a judge “can only be ascribed to knowledgeable
    relinquishment of the prior jury demand” and cannot later
    object that its case was tried to the bench. See 
    903 F.2d at 700, 703
    . In contrast, one’s “[r]eluctant participation in a
    bench trial” does not amount to waiver of their right to a jury.
    Solis, 
    514 F.3d at 956
    .2
    Separately, we have recognized that the circumstances
    under which Rule 39(a) allows a jury demand to be
    withdrawn are not unlimited. Jensen cautioned that Rule
    39(a) applies “[a]s long as there is a federal right to a jury
    trial” in the first place. 835 F.3d at 1107. The plain language
    of Rule 39 requires this exception because it provides that a
    court may order a bench trial if it “finds that on some or all
    . . . issues there is no federal right to a jury trial.” Fed. R.
    Civ. P. 39(a)(2).
    Two cases involving jury demands are particularly
    instructive. First, in Craig v. Atlantic Richfield Co., 
    19 F.3d 472
     (9th Cir. 1994), we affirmed a district court’s ruling
    2
    This exception does not apply after trial begins because at that point
    “other reliance interests come into play.” Fuller, 
    47 F.3d at 1532
    . Once
    trial is underway, we enforce Rule 39(a)’s withdrawal procedures strictly.
    See 
    id.
     (“[O]nce trial begins, a party may no longer unilaterally withdraw
    its jury demand; other parties are entitled to rely whether they have waived
    their rights or not, and withdrawal may occur only in compliance with the
    language of Rule 39(a).”).
    ROSS DRESS FOR LESS V. MAKARIOS-OREGON                    17
    rejecting a Jones Act plaintiff’s attempt to rely on the
    defendant’s jury trial demand, id. at 479. We reasoned that
    the federal court’s sole basis for jurisdiction was the Jones
    Act claim and the defendant did not have the right to demand
    a jury trial for the Jones Act claim. Id. at 476–77 (explaining
    defendant “had neither a constitutional nor a statutory right to
    demand a jury trial,” and thus its demand could “not have
    been made ‘as provided in Rule 38’ for purposes of Rule
    39”).
    Rachal v. Ingram Corp., 
    795 F.2d 1210
     (5th Cir. 1986),
    is a case on which both Makarios and the district court relied.
    There, the Fifth Circuit affirmed a district court’s decision to
    allow the plaintiff to unilaterally strike its jury demand, over
    the defendant’s objection, after the plaintiff amended his
    complaint to remove the only basis for a jury trial. 
    Id.
    at 1213–17. Consistent with our court’s interpretation of
    Rule 39(a), the Fifth Circuit explained that Rule 39(a)’s
    consent requirement generally serves to protect the rights of
    a party who did not make the initial jury demand, but Rule 39
    does not grant that party “any new or independent right to a
    jury trial; it simply protects rights to a jury trial that the [non-
    requesting party] may have been granted elsewhere.” 
    Id.
    at 1215–16.
    The district court’s ruling in this case is analogous to the
    Fifth Circuit’s ruling in Rachal, and is also consistent with
    our precedent and our practice of interpreting the Rules “in a
    manner consistent with their underlying purpose.” Reid
    Bros., 
    699 F.2d at 1305
    . We therefore affirm the district
    court’s interpretation of Rules 38 and 39. We also affirm its
    ruling that the application of Rules 38 and 39 here did not
    entitle Ross to a jury trial after Makarios withdrew its
    demand because the parties’ lease included a waiver of the
    18     ROSS DRESS FOR LESS V. MAKARIOS-OREGON
    tenant’s right to a jury trial in proceedings initiated by the
    landlord.
    AFFIRMED.