After reading the back and forth I'll try my explanation as someone who is a non-lawyer:
Some fairly to very legally sophisticated individuals believe there are problems with some of the paperwork which they believe (or don't believe) should have been filed for both Peruta and for Richards.
The paperwork was not filed in the case of Peruta but at least some legal experts don't think it needed to be.
Relevant paperwork was filed in the case of Richards but it is not clear to me that it was done right. The district court did not do what it should have done in regard to giving proper notice to the state - but that is not likely to affect the case.
So at this time the 9th Circuit has more or less told the lawyers for both Peruta and Richards to be prepared to address/argue whether or not notice of the lawsuits should have been properly served to the state, whether or not the notice was properly given (assuming it should have been given), and (assuming that proper notice was not given) whether this would require that the case be sent back to the district court to allow for proper notice and whatever other legal maneuvering must occur.
Some of the legally sophisticated think that neither Peruta nor Richards will be remanded and that both will have rulings from the 9th Circuit.
What does it mean for the cause of liberty? In the long-run not likely very much.
It does mean that there will be an issue which will be argued in court upon which there may not have been adequate written briefings - and that will be (I take it) relatively unusual.
But assuming the 9th Circuit does not remand to the District for further proceedings at the lower level - then this will have been much kerfuffle on our part over not much of anything.
Without the Remand I think one should expect the 9th Circuit to go ahead and rule against the cause of liberty sooner rather than later. But there is at least one judge on the hearing panel who is considered a really straight shooter even when he doesn't like the law - and that could help us a lot.
Whatever the outcome of the current proceedings at the 9th Circuit, I expect consideration to be given to asking for an en banc hearing and then an appeal to SCOTUS.
I hope our more legally sophisticated will fix the likely errors in the above.
CGN's token life-long teetotaling vegetarian. Not qualified to give any legal opinion so pay attention at your own risk.