by
The Second Circuit reversed the district court's denial of qualified immunity for federal law enforcement authorities in an action for money damages pursuant to Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971), based on alleged Fourth and Fifth Amendment violations in procuring and executing a search warrant. The court held that plaintiff failed to plead a plausible Fourth Amendment claim of unreasonable search and seizure because a corrected affidavit supports both probable cause for and the scope of the challenged search; plaintiff failed to plead a plausible Fifth Amendment claim that fabricated evidence (in the search warrant affidavit) deprived him of property without due process because the warrant would have issued on a corrected affidavit and thus any deprivation of the seized property was not the result of the fabricated evidence; plaintiff could not plausibly plead that defendants' alleged failure to intercede in the challenged search caused him preventable constitutional harm; plaintiff failed to plead any clearly established right to have federal officials state in a search warrant affidavit whether each referenced person is or is not then a target of investigation, nor a right to have federal officials so state after the fact if the search becomes public knowledge; and plaintiff failed to plead sufficient facts as to the supervisor defendants' personal involvement in the submission of any misstatements to the magistrate judge. Accordingly, the court remanded for entry of judgment for defendants. View "Ganek v. Leibowitz" on Justia Law

by
The Second Circuit vacated the district court's order granting summary judgment for Postal Holdings on Connecticut state law claims of private nuisance and negligence brought by plaintiffs. The court remanded with instructions to dismiss plaintiffs' First Amended complaint for lack of supplemental jurisdiction because a federal district court cannot exercise supplemental jurisdiction over state law claims unless it has subject matter jurisdiction over the federal claims originally presented. In this case, under the Contract Disputes Act, 41 U.S.C. 7101–7109, the district court lacked subject matter jurisdiction over Postal Holdings' Third Party Complaint. Therefore, the district court correctly dismissed the Third Party Complaint and thus lacked supplemental jurisdiction over plaintiffs' state law claims. View "Cohen v. Postal Holdings, LLC" on Justia Law

Posted in: Personal Injury

by
The Second Circuit vacated the district court's judgment in favor of shipowners in a negligence action filed by plaintiff after a deckhand unclipped a weighted halyard and it struck plaintiff in the head. The court held that plaintiff's evidence satisfied her burden of making a prima facie showing of entitlement to res ipsa loquitur. Moreover, the shipowners failed to rebut her evidence. The court explained that while no doubt things can happen at sea that could cause an extended halyard to slip out of a seaman's grasp without negligence, plaintiff's evidence was sufficient to show that this did not ordinarily happen without negligence. View "Manhattan by Sail, Inc. v. Tagle" on Justia Law

Posted in: Personal Injury

by
Defendant appealed his 180 month sentence after he was convicted of assaulting a federal officer and was sentenced as a career offender. In light of Beckles v. United States, 137 S. Ct. 886 (2017), the Second Circuit found that New York first‐degree robbery categorically qualifies as a crime of violence under the residual clause and the court therefore need not address defendant's argument based on the force clause. The court also found that defendant's sentence was substantively reasonable. Accordingly, the court affirmed the sentence and remanded for further considerations. View "United States v. Jones" on Justia Law

Posted in: Criminal Law

by
The Second Circuit reversed the district court's denial of the police's motion for qualified immunity. Plaintiff, a teenaged train enthusiast, was stopped and handcuffed after the police department received a 911 report that someone holding an electronic device was bending down by the tracks at a rail crossing. The court held that it could not be said that every reasonable officer in their circumstances would know that the conduct complained of violated clearly established law. In this case, plaintiff's unlawful arrest claim failed because his handcuffing was an investigatory detention that never ripened into an arrest and was supported by reasonable suspicion; if Officers McVeigh and Farina had a duty to intervene, that duty was not clearly established and defendants were entitled to qualified immunity on the failure to intercede claim; and defendants were entitled to qualified immunity on a supervisory liability claim. View "Grice v. McVeigh" on Justia Law

by
FHFA, as conservator for government-sponsored enterprises (GSEs), filed suit against defendants, alleging violations of the Securities Act of 1933 and analogous "Blue Sky laws," the Virginia Securities Act, and the D.C. Securities Act. The FHFA alleged that representations regarding underwriting criteria for certificates tied to private-label securitizations (PLLs) was a material misstatement. The district court rendered judgment in favor of the FHFA under Sections 12(a)(2) and 15 of the Securities Act, and analogous provisions of the Virginia and D.C. Blue Sky laws. The district court also awarded rescission and ordered defendants to refund the FHFA a total adjusted purchase price of approximately $806 million in exchange for the certificates. The Second Circuit found no merit in defendants' argument and held that defendants failed to discharge their duty under the Securities Act to disclose fully and fairly all of the information necessary for investors to make an informed decision whether to purchase the certificates at issue. Accordingly, the court affirmed the judgment. View "Federal Housing Finance Agency v. Nomura Holding America, Inc." on Justia Law

Posted in: Banking, Securities Law

by
The Second Circuit granted in part and denied in part a motion to abate David Brooks' offenses related to fraud and securities laws. Brooks was the founder, Chair of the Board of Directors, and CEO of DHB Industries, a publicly traded company. The court held that Brooks' counts of conviction resulting from the verdict abated with his death, but not the counts resulting from his guilty plea. The court also held that the bail bond subscribed by Brooks and his family remained forfeited. Finally, the order of restitution related to the fraud and securities laws counts was abated but not the order of restitution related to the tax counts. View "United States v. Brooks" on Justia Law

Posted in: Criminal Law

by
Plaintiff filed suit against defendants, alleging willful violations of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), 15 U.S.C. 1681c(g). Section 1681c(g) seeks to reduce the risk of identity theft by, among other things, prohibiting merchants from including more than the final five digits of a customer’s credit card number on a printed receipt. The Second Circuit affirmed the district court's dismissal of plaintiff's second amended complaint for lack of subject matter jurisdiction. The court held that the parties' factual disagreement as to whether printing the first six digits constituted a material risk of harm was a question of fact even at the Rule 12(b)(1) motion‐to‐dismiss stage, and so the court reviewed the district court's finding for clear error. On the basis of the record and plaintiffs' affirmative burden to establish subject matter jurisdiction by a preponderance of the evidence, and informed by the findings of other district courts as to this specific issue, the court concluded that the district court's findings were not clearly erroneous. The court held, however, that a complaint must be dismissed without prejudice where the dismissal was due to the court's lack of subject matter jurisdiction. Therefore, the court remanded so that the district court may amend the judgment and enter the dismissal without prejudice. View "Katz v. The Donna Karan Company, LLC" on Justia Law

by
George Elias, IV, Stephen Hadford, and Ross Fowler appealed the district court's dismissal of their defamation claims against Rolling Stone and others, alleging claims arising from a now-retracted Rolling Stone magazine article titled, "A Rape on Campus: A Brutal Assault and Struggle for Justice at UVA" as well as a subsequent online podcast. The Second Circuit held that the district court properly dismissed plaintiffs' defamation claim arising from the podcast; the district court properly dismissed plaintiffs' claims relating to Hadford individually; with regard to Elias and Fowler, the complaint plausibly alleged that the statements in the article were "of and concerning" them individually; and the complaint plausibly alleged that all plaintiffs were defamed as members of the Phi Kappa Psi under a theory of small group defamation. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Elias v. Rolling Stone LLC" on Justia Law

Posted in: Communications Law

by
The Second Circuit held that its appellate jurisdiction extended to defendant's challenges to both his conviction and sentences for various fraud and theft charges. In this case, the notice of appeal form stated defendant's intent to appeal his judgment of conviction and his narrower designation of issues appeared only in an administrative section of the same form. On the merits, the court affirmed the conviction and sentence, holding that the evidence was sufficient to support defendant's conviction for mail fraud; the district court did not improperly instruct the jury regarding the materiality element for the mail fraud counts; and the district court did not commit procedural error by applying the Guidelines' loss calculations. View "United States v. Caltabiano" on Justia Law

Posted in: Criminal Law