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

Plaintiff appealed from the district court's dismissal of his amended complaint, which alleged that FXDD engaged in dishonest and deceptive practices in managing its online foreign exchange trading platform in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962(c), and New York General Business Law 349(h), and 350. Plaintiff also alleged breach of contract and of the implied covenant of good faith and fair dealing. The court concluded that, at this stage, some part of the underlying transaction occurred in New York State, giving plaintiff statutory standing to sue for deceptive practices and false advertising under sections 349 and 350; because the complaint alleged that FXDD failed to act in good faith and intentionally delayed trades or caused them to fail in order to enrich itself at the expense of its customers, these practices were incompatible with a promise to execute orders on a best-efforts basis and, therefore, the court vacated the dismissal of the breach of contract claim; and the court affirmed the judgment of the district court as to the RICO claim and the claim for breach of the implied covenant of good faith and fair dealing. View "Cruz v. FXDirectDealer, LLC" on Justia Law

This case stemmed from plaintiff's suit against Sheraton, alleging state law claims and invoking subject matter jurisdiction based on diversity of citizenship pursuant to 28 U.S.C. 1332(a). The district court dismissed plaintiff's first and second complaint for lack of subject matter jurisdiction. Sheraton subsequently moved for "just costs" including attorney's fees pursuant to 28 U.S.C. 1919 and the district court granted the motion, concluding that plaintiff's second complaint was engineered to re-assert diversity jurisdiction. Plaintiff appealed. The court concluded that section 1919 did not authorize an award of attorney's fees and that, although such fees could be awarded on a non-statutory basis for bad faith in the conduct of litigation, fees were not warranted under the circumstances of this case. Therefore, the court vacated the district court's order and remanded with directions to delete the award of attorney's fees. View "Castillo Grand, LLC v. Sheraton Operating Corp." on Justia Law

This suit stemmed from plaintiff's suit for breach of contract against his former employer, ICD, and tortious interference with contract against ICD's president. On appeal, plaintiff challenged the district court's order, which amended a judgment to provide that plaintiff was entitled to post-judgment interest at the rate set forth in 28 U.S.C. 1961, contending that he was entitled to a post-judgment interest at the rate set forth in C.P.L.R. 5004. The court concluded that plaintiff was entitled to .25% post-judgment interest where section 1961's plain terms governed the rate of post-judgment interest applicable in this case. Accordingly, the district court correctly and constitutionally applied section 1961, notwithstanding that the judgment had been entered in a diversity action and had been docketed by plaintiff in a New York state court. View "Cappiello v. ICD Publ'ns, Inc." on Justia Law

Defendant appealed his sentence of 144 months' imprisonment after pleading guilty to two counts of possession with intent to distribute and distribution of cocaine within 1,000 feet of public housing property. The court concluded that defendant's sentence was not substantively unreasonable where it was below the applicable Sentencing Guidelines range. Accordingly, the court affirmed the sentence. View "United States v. Ingram" on Justia Law

Respondent appealed the district court's grant of her husband's petition for repatriation of their son from New York to Singapore. At issue was whether respondent's affirmative defenses to repatriation should have prevailed in the district court. The court concluded that, under the Hague Convention on the Civil Aspects of International Child Abduction, T.I.A.S. No. 11, 670, 1343 U.N.T.S. 89, and its implementing statute, the International Child Abduction Remedies Act, 42 U.S.C. 11601-10, the evidence did not establish that the child faced a grave risk of physical or psychological harm upon repatriation (Article 13 defense). The court also held that it was not inclined to conclude that the presence of a Syariah Court in a foreign state whose accession to the Convention had been recognized by the United States was per se violative of all notions of due process; the court was also mindful of the need for comity; and, therefore, the district court did not err in rejecting respondent's Article 20 defense. Respondent's remaining arguments were without merit and the court affirmed the judgment. View "Souratgar v. Fair" on Justia Law

Plaintiffs appealed the district court's judgment in favor of Federal, denying plaintiffs indemnification under their insurance policy for the destruction of their barn by fire. The court concluded that the permissive adverse inference instruction with respect to a photograph that plaintiffs had not produced in discovery was appropriate; Federal was not entitled to attorney fees; Federal was not entitled to equitable relief to recover payments made to plaintiffs; and, therefore, the judgment of the district court was affirmed. View "Mali v. Federal Ins. Co," on Justia Law

Plaintiff challenged the court's holding in Grochowski v. Phoenix Construction, which held that the Davis-Bacon Act, 40 U.S.C. 3141-3148, barred third-party private contract actions, brought under state law, aimed at enforcing the Act's prevailing wage schedules. The court concluded that Grochowski was the controlling law of this Circuit and foreclosed plaintiff's third-party beneficiary contract claim for failure to pay prevailing wages; the district court did not err in setting aside the jury's award of punitive damages under Federal Rule of Civil Procedure 50; the district court did not err in denying plaintiff's motion for a new trial as to damages on his discrimination claim; and, therefore, the judgment of the district court was affirmed. View "Carrion v. Agfa Construction, Inc." on Justia Law

Defendants appealed the district court's judgment of liability after a jury found them liable for false arrest, malicious prosecution, and violation of plaintiff's right to a fair trial. The court concluded that jury instructions adequately reflected the holding in Rehberg v. Paulk and mitigated the prejudicial impact of the opening and closing statements; the district court's instruction referencing the favorable termination of the prosecution without further elaboration was not a basis for reversal or a new trial; and the district court's exclusion of recognition evidence did not merit a new trial. Accordingly, the court affirmed the judgment. View "Marshall v. Randall" on Justia Law

Gaia and State Street were bound by a mezzanine loan agreement with Lehman Brothers to help finance the construction of a residential building in Manhattan. At issue on appeal was whether equitable estoppel, principles of good faith and fair dealing, or general principles of equity prevented State Street from keeping the Accrued Interest. The court concluded that Gaia could not rely on equitable estoppel to recover the Accrued Interest because Gaia did not demonstrate an omission or misrepresentation by State Street on which Gaia reasonably relied to its substantial detriment; State Street was entitled to act in its own self-interest and require payment of the Accrued Interest, even if such action lessened Gaia's anticipated profits, because State Street acted consistently with the contract and did not violate a presumed obligation or Gaia's reasonable expectations; State Street's actions were not taken in bad faith; State Street did not unlawfully demand payment of the Accrued Interest and it was not liable for the Doral damages; and the Professional Fee provision applied in this action and State Street was entitled to Professional Fees incurred as a result of this litigation. Accordingly, the court reversed and remanded. View "Gaia House Mezz LLC v. State St. Bank & Trust Co." on Justia Law

Petitioner, the father, initiated this action under the Hague Convention and the International Abduction Remedies Act (ICARA), 42 U.S.C. 11601 et seq., alleging that respondent, the mother, had wrongfully removed the child from Italy. The district court held that the father had not established that the child's habitual residence was Italy and denied the father's petition for return of the child. The court found no clear error in the district court's finding regarding the parents' shared intent that the child would reside in New York; the parents never shared an intent for their child to abandon his prior habitual residence in the United States; and the father waived any arguments with respect to "acclimation." Accordingly, the court affirmed the judgment dismissing the petition. View "Guzzo v. Cristofano" on Justia Law