Justia U.S. 2nd Circuit Court of Appeals Opinion Summaries

Plaintiffs appealed the judgment of the district court dismissing their complaint for failure to state a claim. Plaintiffs argued that the Child Status Protection Act (CSPA), and in particular 8 U.S.C. 1153(h)(3), entitled Duo Cen, an alien who aged out of eligibility for an immigrant visa as a derivative beneficiary to his grandfather's 1994 priority date for his mother's 2008 family-sponsored petition for Duo Cen. The court held that section 1153(h)(3) did not entitle an alien to retain the priority date of an aged-out family preference petition if the aged-out family preference petition could not be "converted to [an] appropriate category." Therefore, because plaintiffs have specified no "appropriate category" to which Duo Cen's grandfather's petition could be converted, section 1153(h)(3) did not entitle him to retain the 1994 priority date from his grandfather's petition. Accordingly, the judgment of the district court was affirmed.

Enron Creditors Recovery Corp. (Enron) sought to avoid and recover payments it made to redeem its commercial paper prior to maturity from appellees, whose notes were redeemed by Enron. On appeal, Enron challenged the district court's conclusion that 11 U.S.C. 546(e)'s safe harbor, which shielded "settlement payments" from avoidance actions in bankruptcy, protected Enron's redemption payments whether or not they were made to retire debt or were unusual. The court affirmed the district court's decision and order, holding that Enron's proposed exclusions from the reach of section 546(e) have no basis in the Bankruptcy Code where the payments at issue were made to redeem commercial paper, which the Bankruptcy Code defined as security. Therefore, the payments at issue constituted the "transfer of cash ... made to complete [a] securities transaction" and were settlement payments within the meaning of 11 U.S.C. 741(8). The court declined to address Enron's arguments regarding legislative history because the court reached its conclusion based on the statute's plain language.

Plaintiff sued defendants under RICO, 18 U.S.C. 1961-1968, principally alleging injury to plaintiff's business by reason of defendants' establishment of a competing commercial enterprise through the investment of income derived from a pattern of racketeering activity. At issue was whether the district court properly granted defendants' motions for summary judgment on the pleadings and, in the alternative, for summary judgment on the grounds that plaintiff's complaint and the record were insufficient to show that any injury to plaintiff's business was proximately caused by defendants' alleged violation of section 1962(a). The court held that to the extent that plaintiff claimed injury from defendants' continuation in its Bronx store of the cash-no-tax scheme conducted in the Queens store, that claim appeared to be conceptually indistinguishable from the section 1962(c) claim previously rejected by the Supreme Court. The court held that to the extent, however, that plaintiff claimed that it lost sales to defendants because defendants invested the proceeds of their pattern of racketeering activity to establish and operate defendants' new store in the Bronx, the court rejected defendants' contentions and concluded that the district court erred in granting summary judgment on the pleadings on the basis of Bell Atlantic Corp. v. Twombly and erred in granting summary judgment.

Defendant appealed from the judgment of the district court granting defendants' motion to dismiss his claims brought pursuant to 42 U.S.C. 1983 and Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics. At issue was whether the district court erred in finding that the statute of limitations had run on the first of his two causes of action and in dismissing his second cause of action for improper venue. The court vacated and remanded on the grounds that claims brought by an inmate under the Prison Litigation Reform Act ("PLRA"), 32 U.S.C. 1997e(a), were entitled to equitable tolling during the time-period the inmate was exhausting his administrative remedies, as required by the PLRA. The court also vacated the judgment insofar as it dismissed some of defendants' claims for improper venue and remanded with instructions that the court transfer those claims to the Eastern District of New York if the court deemed it proper to do so upon reexamination of defendants' claims.

After a bench trial, the district court entered a judgment for plaintiffs concluding that on seventeen occasions, defendant had infringed plaintiffs' copyrights in their research reports, and that by collecting and disseminating to its own subscribers the summary recommendations with respect to securities trading contained in plaintiffs' reports, defendant had committed the New York state law tort of "hot news" misappropriation. Defendant appealed the judgment and injunction against it on the "hot news" misappropriation claim. The court held that plaintiffs' claim against defendant for "hot news" misappropriation of the plaintiff financial firms' recommendations to clients and prospective clients as to trading in corporate securities was preempted by federal copyright law. Based upon principles explained and applied in National Basketball Association v. Motorola ("NBA"), the court held that because plaintiffs' claim fell within the "general scope" of copyright, 17 U.S.C. 106, and involved the type of works protected by the Copyright Act, 17 U.S.C. 102 and 103, and because defendant's acts at issue did not meet the exceptions for a "hot news" misappropriation claim as recognized by NBA, the claim was preempted. Accordingly, the court reversed the judgment of the district court with respect to that claim.

Defendant appealed from a 45 month prison sentence following his guilty plea to possession of a firearm where the district court imposed a six-level sentence enhancement after finding that the stolen weapon was a machine gun. At issue was whether the enhancement was reversible error where the weapon's automatic fire feature was disabled at the time of defendant's theft and therefore, it no longer qualified as a machine gun. The court held that the weapon was a machine gun within the meaning of 26 U.S.C. 5845(b) because the undisputed evidence established that the weapon originally was designed to fire automatically. Accordingly, the sentence was affirmed.

Defendant was convicted of immigration fraud and sentenced to 51 months imprisonment. At issue was under what circumstances did the exclusion of the public from a courtroom during voir dire violate a defendant's Sixth Amendment right to a public trial. The court held that, although the district court's exclusion of defendant's brother and girlfriend during voir dire failed to meet the four-factor test set forth in Waller v. Georgia, and now Presley v. Georgia, the exclusion was too trivial to implicate defendant's Sixth Amendment right to a public trial. The court also held that Presley did not alter the "triviality exception" to the public trial guarantee. Accordingly, the court affirmed the judgment of the district court.

Petitioner brought this mandamus action to compel USCIS to make a determination on the merits of her I-212 application, alleging that USCIS denied her application in violation of the Administrative Procedure Act ("APA"), 5 U.S.C. 551 et seq., the Due Process Clause, and the Equal Protection Clause. At issue was whether the district court properly dismissed petitioner's complaint, concluding that it lacked jurisdiction pursuant to the REAL ID Act of 2005, 8 U.S.C. 1252(a)(5), and in the alternative, petitioner's claims were barred by res judicata. The court held that petitioner was indirectly challenging her reinstated order of removal and accordingly, the court held that section 1252(a)(5)'s jurisdictional bar applied equally to preclude such an indirect challenge. Therefore, because the court concluded that the district court lacked jurisdiction over petitioner's complaint, the court did not reach her remaining arguments.

Defendants Linda O'Connor and Dean Sacco appealed from convictions of sex trafficking of a child; O'Connor appealed from convictions of selling a child for the purpose of producing child pornography and producing child pornography; and Sacco appealed from convictions of buying a child for the purpose of producing child pornography, producing and possessing child pornography, and interstate travel with intent to engage in illicit sexual conduct with a minor. O'Connor contended that evidence was insufficient to support her conviction on any count and that the district court deprived her of a fair trial by denying her motions for severance of her trial from Sacco's trial. O'Connor also challenged certain evidentiary rulings. Sacco contended chiefly that the district court deprived him of a fair trial by denying his attorney's request to withdraw from the case, by admitting in evidence portions of his self-titled autobiography that gave an account of his past thoughts and conduct, and by denying his request for a continuance following unexpected testimony from a government witness. The court found no merit in any of defendants' contentions and therefore, affirmed the judgments and convictions.

Defendant appealed from a judgment of conviction for securities fraud and conspiracy to commit securities fraud and wire fraud. At issue, among other things, was whether venue was proper in the Eastern District of New York. The court held that venue in the Eastern District was proper for the conspiracy counts where defendant committed overt acts in furtherance of the conspiracies in the Eastern District. Accordingly, the court did not find venue for the conspiracy charges to be unfair or prejudicial. The court held, however, that venue in the Eastern District was improper for the substantive securities fraud count where no conduct that constituted the offense took place in the Eastern District. Accordingly, nothing in United States v. Svoboda called into question the principle that preparatory acts alone were insufficient to establish venue. Therefore, the court affirmed in part and reversed in part.