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

Defendant was convicted of narcotics violations and unlawful possession of a firearm. At issue was whether the district court abused its discretion when it declined to sever the firearm count. The court held that the district court did not abuse its discretion in denying defendant's motion to sever where there was a sufficient logical connection between the narcotics counts and the firearm count; where separate trials of the narcotics counts and the firearm count would have required much of the same evidence; where the district court took adequate precautions to limit the danger of unfair prejudice; and where defendant had not met his heavy burden of showing substantial prejudice from the joinder of the narcotics counts with the firearm count. Accordingly, the court affirmed the conviction.

This case stemmed from the use of the pesticide dichlorovinyl dimethyl phosphate (DDVP) to kill many types of insects. The NRDC sought review of an EPA order overruling the NRDC's objections to, inter alia, the EPA's risk assessments for the pesticide and denying NRDC's requests for a public evidentiary hearing. Because the EPA conducted certain DDVP risk assessments without using a tenfold children's safety factor that Congress provided should presumptively apply, and the EPA failed to explain why it did not apply this margin of safety, the court granted the NRDC's petition for review in part, vacated the EPA's order in part, and remanded for further proceedings.

Defendant was convicted of various sex offenses. On defendant's appeal from his conviction and sentence imposed by the district court, counsel filed a motion with this court pursuant to Anders v. California and the government filed a motion for summary affirmance. The court granted the motions because there were no non-frivolous issues for appeal and remand could not benefit defendant in this case where the district court imposed a below-Guidelines sentence without providing a written statement that explained with "specificity" the reasons for the sentence imposed. The court held that, although it had previously held that, solely in the context of an Anders motion, failure to provide a written statement of reasons that complied with 18 U.S.C. 3553(c)(2) always necessitated a remand to the district court, the court saw no reason why the Anders context required this unique treatment. Therefore, the court held that, although compliance with the strictures of section 3553(c)(2) was always required, remand was not always required to remedy noncompliance. In so ruling, the court abrogated the court's prior holding in United States v. Hall only to the limited extent that it uniformly required remand in these circumstances.

Petitioner, a native and citizen of Cameroon, petitioned from an order of the BIA affirming the IJ's denial of asylum, but granting his application for withholding of removal. At issue was whether the government's prima facie showing of firm resettlement could be rebutted by an alien's showing that his ties to the third country into which he fled, in this case Guatemala, before coming here were formed before his last flight from persecution. The court held that firm resettlement was determined from the totality of the circumstances and that even ties formed in the third country prior to an alien's last flight from persecution were relevant to that determination. The court considered petitioner's arguments and found them to be without merit and therefore, based on the totality of the circumstances, denied the petition for review.

Defendant appealed his conviction for visa fraud and conspiracy to commit visa fraud, as well as his sentence. Defendant had requested specific jury instructions with respect to the government's burden of proof regarding his knowledge of the fraud for which he was indicted. The district court denied these requests and instead gave a general instruction on acting "knowingly." Defendant challenged those denials as well as the sufficiency of the evidence presented at trial. The court found these challenges meritless. In calculating defendant's Guidelines sentencing range, the district court relied on four enhancements, three of which defendant challenged on appeal. Though the basis of the district court's application of the leader/organizer enhancement could have been more fully elaborated, the court found that the record supported its application here. Regarding the obstruction-of-justice and number-of-document enhancements, however, the court agreed with defendant that the evidence was insufficient to sustain their use in this case. Therefore, the court vacated defendant's sentence. Defendant also challenged the order of restitution imposed by the district court under the Mandatory Victim Restitution Act (MVRA), 18 U.S.C. 3663A. Because the court found the record evidence insufficiently specific to demonstrate that each client to whom the court ordered restitution was a "victim" of the fraud, the court vacated the restitution order. Accordingly, the court remanded the case for resentencing, including reconsideration of the restitution award.

The government appealed from an order of the district court granting a preliminary injunction to stay enforcement of provisions of the Prevent All Cigarette Trafficking Act (PACT Act), Pub. L. No. 111-154, section 2(a), 124 Stat. 1087, 1088, requiring mail-order cigarette sellers to pay state excise taxes. The government argued that the district court erred in concluding that plaintiffs were likely to succeed on the merits of their claim that the PACT Act's provision requiring out-of-state tobacco sellers to pay state excise taxes, regardless of their contact with that state, violated the Due Process Clause. The court held that because the district court's entry of the preliminary injunction was not an abuse of discretion, the court affirmed the judgment.

UBS appealed the denial of their motion for a preliminary injunction enjoining defendants from proceeding with an arbitration before the Financial Industry Regulatory Authority (FINRA), and alternatively requiring that the arbitration proceed in New York County. In the arbitration, defendants sought damages for UBS's alleged fraud in connection with defendants' issuances of auction rate securities. The court held that defendants were entitled to arbitration because they became UBS's "customer" under FINRA's rules when they undertook to purchase auction services from UBS. The court also held that the enforceability of the forum selection clause was a procedural issue for FINRA arbitrators to address and that the district court lacked jurisdiction to resolve it.

Petitioner, a native and citizen of China, sought review of the BIA's order affirming the IJ's decision denying her application for asylum, withholding of removal, and relief under the Convention Against Torture on the basis that her testimony regarding an alleged forced abortion was insufficient to carry her burden of proof and she failed to produce reasonably available corroborative testimony from her husband, an undocumented immigrant. The principal issue on appeal was whether substantial evidence supported the IJ's determination that petitioner failed to provide reasonably available corroborating evidence to support her claim. The court held that the IJ's determination that petitioner's testimony was insufficient by itself to meet her burden of proof was supported by substantial evidence; the IJ's determination that petitioner's husband was available to provide corroborating testimony was reasonable; and the IJ's consequent conclusion that petitioner had failed to meet her burden of proof, despite providing arguably credible testimony, was reasonable. Accordingly, the petition for review was denied.

Plaintiffs, on behalf of themselves and all other similarly situated, filed a complaint alleging that defendants violated the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201-19, by requiring waiters to share tips with tip-ineligible employees. Plaintiffs also alleged that Park Avenue also violated various provisions of the New York Labor Law by requiring servers to share tips with tip-ineligible employees and by failing to pay waiters for an extra hour's work when their workdays lasted more than ten hours. Defendants appealed from the district court's order granting plaintiffs' motion for class certification. The court held that plaintiffs provided ample and sufficient evidence as to the elements of Rule 23(a)(1)-(4) and Rule 23(b)(3) for it to uphold the district court's findings and conclusions with respect to each of the Rule 23 requirements. Accordingly, the court affirmed the district court's order.

Appellants appealed the dismissal of their class action complaint against Nextel, the law firm of Leeds, Morelli & Brown, P.C. (LMB), and seven of LMB's lawyers (also LMB). Appellants were former clients of LMB who retained the firm to bring discrimination claims against Nextel. The complaint asserted that, inter alia, LMB breached its fiduciary duty of loyalty to appellants and the class by entering into an agreement with Nextel in which Nextel agreed to pay: (i) $2 million to LMB to persuade en masse its approximately 587 clients to, inter alia, abandon ongoing legal and administrative proceedings against Nextel, waive their rights to a jury trial and punitive damages, and accept an expedited mediation/arbitration procedure; (ii) another $3.5 million to LMB on a sliding scale as the clients' claims were resolved through that procedure; and (iii) another $2 million to LMB to work directly for Nextel as a consultant for two years beginning when the clients' claims had been resolved. The court held that appellants have alleged facts sufficient to state a claim against LMB for, inter alia, breach of fiduciary duty and against Nextel for aiding and abetting breach of fiduciary duty. Therefore, the court vacated and remanded for further proceedings.