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

Defendants appealed from a judgment of the district court awarding the United States $112,324.18, plus statutory additions and interest, in connection with an unpaid tax assessment from 2007. The district court granted summary judgment in favor of the government, notwithstanding the fact that the Internal Revenue Service (the “IRS”) referred the assessment to the Department of Justice (the “DOJ”) before formally rejecting Defendants’ proposed installment agreement. Defendants contended that this referral violated the provisions of the Internal Revenue Code and the implementing Treasury Regulations that curb the IRS’s collection activities while a proposed installment agreement remains on the table.   The Second Circuit affirmed. The court explained that as their plain terms indicate, the suspension provisions of Section 6331(i) and (k) prohibit the commencement of a collection action in court during specified periods, not the IRS’s antecedent request that the DOJ file such an action. The court wrote that the Internal Revenue Code is silent on when the IRS may refer an action to the DOJ, and a Treasury Regulation that limits the IRS’s referral power cannot read into the statute something that is not there. Further, this conclusion is not altered because authorization from the Treasury Secretary is a prerequisite to commencing an in-court proceeding.   Further, the court explained that Defendants have not claimed a violation of their constitutional rights and the regulatory limits on IRS referrals of collection actions are not statutorily derived. As a result, Defendants must demonstrate prejudice for the government’s regulatory violation to invalidate the instant collection action. The court found that Defendants have failed to do so. View "United States v. Schiller" on Justia Law

Petitioner applied for asylum, withholding of removal, and protection under the Convention Against Torture. An immigration judge found Petitioner not credible and denied her application. Petitioner appealed to the Board of Immigration Appeals (BIA), which affirmed the IJ’s credibility decision. In addition to challenging the adverse credibility finding, Petitioner claimed for the first time that the border interview record was improperly admitted into evidence at the IJ hearing. The BIA rejected that argument as waived and also rejected it on the merits. Petitioner petitioned the Second Circuit for review.   The Second Circuit granted in part, denied in part, and vacated the BIA’s decision. The court explained that the immigration judge failed to consider various factors that may have affected the reliability of the border interview record. Petitioner claimed that she was frightened during the interview because a border patrol officer hit her and yelled at her upon her arrival to the United States. Petitioner may also have been reluctant to reveal information about persecution because authorities in her home country were allegedly unwilling to help her due to her indigenous status. Moreover, the questions asked during Petitioner’s border interview generally were not designed to elicit the details of an asylum claim. The court explained that in Ramsameachire v. Ashcroft, it cautioned immigration judges to consider these factors and others before relying on a border interview to find an asylum applicant not credible. Consistent with Ramsameachire and subsequent precedent, the court wrote that immigration judges are required to take such precautions. View "Pomavilla-Zaruma v. Garland" on Justia Law

Appellants-Cross-Appellees Konstantine W. Kyros and his law firm, Kyros Law P.C. (together, “Kyros”), appealed from a judgment imposing sanctions for litigation misconduct under Rules 11 and 37 of the Federal Rules of Civil Procedure. In 2014 and 2015, Kyros brought several lawsuits against Appellees-Cross-Appellants World Wrestling Entertainment, Inc. and Vincent K. McMahon (together, “WWE”). Subsequently, the district court imposed sanctions against Kyros in the amount of $312,143.55—less than the full amount requested by WWE. Kyros now appeals these final sanctions determinations. On cross-appeal, WWE challenged the district court’s reduction of the requested fee award by application of the “forum rule,” under which a court calculates attorney’s fees with reference to the prevailing hourly rates in the forum in which the court sits.   The Second Circuit affirmed. The court held that the district court did not abuse its discretion by imposing Rule 11 sanctions on Kyros. WWE’s sanctions motions and the district court’s order that reserved ruling on those motions gave abundant notice to Kyros of the repeated pleading deficiencies that risked imposition of sanctions, and he was afforded sufficient opportunity to be heard. The district court did not abuse its discretion by imposing Rule 37 sanctions on Kyros because Kyros failed to make a good-faith effort to comply with the district court’s order compelling responses to WWE’s interrogatories. The district court did not abuse its discretion by applying the forum rule to award WWE less than the requested amount of sanctions. View "Kyros Law P.C. v. World Wrestling Entertainment, Inc." on Justia Law

In this collective action, a group of 2,519 EMTs and paramedics allege that their employer, the City of New York, willfully violated the Fair Labor Standards Act by requiring them to perform work before and after their shifts without paying them for that work unless the plaintiffs specifically requested overtime compensation from the City. The district entered a $17.78 million judgment against the City. The City appealed, raising four arguments: (1) the jury’s liability verdict cannot stand because plaintiffs failed to request overtime pay for the work at issue; (2) the jury’s willfulness finding was not supported by the evidence; (3) due to an erroneous instruction, the jury failed to make a necessary factual finding regarding the calculation of damages; and (4) the district court incorrectly forbade the jury from considering whether one component of the plaintiffs’ post-shift work was de minimis and therefore noncompensable. The City accordingly asked that the court reverse the jury’s verdict or remand for a new trial on damages.   The Second Circuit affirmed. The court explained that here, each factor weighs against deeming plaintiffs’ post-shift work de minimis. First, post-shift work was very easy to record: CityTime already does, recording to the minute each post-shift sliver an EMT or paramedic spends at the station. Second, the court explained that the size of the claim favors plaintiffs. The City focuses exclusively on how much time the claimed work takes per day, but the proper inquiry is the amount of time claimed “in the aggregate.” Finally, plaintiffs’ post-shift work occurred regularly—the tasks had to be performed every day. View "Perry v. City of New York" on Justia Law

The plaintiffs in this case are American service members who were wounded, and the relatives of service members who were killed or wounded, in terrorist attacks carried out in Iraq from 2004 to 2011 by proxies of the Lebanese militant group Hezbollah. In 2019, victims 20 and their family members sued several Lebanese banks, alleging that the banks aided and abetted the attacks by laundering money for Hezbollah. After Plaintiffs filed suit, the United States Department of the Treasury labelled one of those banks, Jammal Trust Bank (JTB), a Specially Designated Global Terrorist. That designation prompted the Banque du Liban, Lebanon’s central bank, to liquidate JTB and acquire its assets. JTB then moved to dismiss the case against it, on the ground that it was now entitled to sovereign immunity as an instrumentality of Lebanon. The district court denied the motion, holding that a defendant is entitled to foreign sovereign immunity only if it possesses such immunity at the time suit is filed. JTB appealed.    The Second Circuit vacated. The court held that immunity under the Foreign Sovereign Immunities Act, 28 U.S.C. Section 1604, may attach when a defendant becomes an instrumentality of a foreign sovereign after a suit is filed. Further, the court explained that it was the U.S. designation of JTB as a terrorist organization, not any attempt by Lebanon to avoid this lawsuit, that forced the bank into liquidation and public receivership. View "Bartlett v. Baasiri" on Justia Law

Plaintiff filed this nationwide class action on behalf of herself and others similarly situated after her personally identifying information (“PII”), including her name and Social Security number, which had been entrusted to Defendants, were exposed to an unauthorized third party as a result of a targeted data hack. At issue is the proper framework for evaluating whether an individual whose PII is exposed to unauthorized actors, but has not (yet) been used for injurious purposes such as identity theft, has suffered an injury in fact for purposes of Article III standing to sue for damages.   The Second Circuit reversed and remanded. The court concluded that with respect to the question of whether an injury arising from risk of future harm is sufficiently “concrete” to constitute an injury, in fact, TransUnion controls; with respect to the question whether the asserted injury is “actual or imminent,” the McMorris framework continues to apply in data breach cases like this. Thus, the court concluded that Plaintiff’s allegation that an unauthorized third party accessed her name and Social Security number through a targeted data breach gives her Article III standing to bring this action against Defendants to whom she had entrusted her PII. View "Bohnak v. Marsh & McLennan Companies, Inc." on Justia Law

Plaintiff-Appellant appealed from a district court order granting summary judgment to Defendants-Appellees on his claim under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). On appeal, Appellant argued that the district court erroneously held that he lacks RICO standing to sue for his lost earnings because those losses flowed from, or were derivative of, an antecedent personal injury.   The Second Circuit vacated and remanded. The court explained that RICO’s civil-action provision, 18 U.S.C. Section 1964(c), authorizes a plaintiff to sue for injuries to “business or property.” While that language implies that a plaintiff cannot sue for personal injuries, that negative implication does not bar a plaintiff from suing for injuries to business or property simply because a personal injury was antecedent to those injuries. The court explained that it is simply wrong to suggest that the antecedent-personal-injury bar is necessary to ensure “genuine limitations” in Section 1964(c), or to give restrictive significance to Congress’s implicit intent to exclude some class of injuries by the phrase “business or property”’ when it enacted RICO. View "Horn v. Medical Marijuana, Inc." on Justia Law

Plaintiff appealed the district court’s judgment granting summary judgment in favor of Defendants County of Suffolk, Suffolk County District Attorney’s Office Division Chief Edward Heilig, and Suffolk County District Attorney’s Office Special Investigations Bureau Chief Joseph Carroll. Plaintiff was a Clerk Typist in the District Attorney’s Office from 2008 until her employment in the Special Investigations Bureau was terminated in 2015. She alleged that defendants discriminated against her based on her disability and retaliated against her for seeking an accommodation for that disability, in violation of the Americans with Disabilities Act of 1990, the New York State Human Rights Law, N.Y. Exec. Law Section 296, and 42 U.S.C. Section 1983. On appeal, Plaintiff argued that the district court erred in granting summary judgment on her reasonable accommodation and retaliation claims.   The Second Circuit affirmed the district court’s judgment as to Plaintiff’s Section 1983 claim and vacated the district court’s judgment with respect to the reasonable accommodation and retaliation claims. The court agreed with Plaintiff that the district court erred in granting summary judgment on her reasonable accommodation and retaliation claims. The court explained that construing the evidence most favorably to Plaintiff, a rational jury could find that archiving was not an essential function of Plaintiff’s position and that defendants failed to provide a reasonable workplace accommodation for her disability. The court similarly concluded that disputed issues of material fact preclude summary judgment on Plaintiff’s retaliation claim. View "Tafolla v. Heilig" on Justia Law

Plaintiff painted two large murals directly onto the walls inside a building on the campus of Defendant-Appellee Vermont Law School, Inc. The work stirred controversy, which eventually prompted the law school to erect a wall of acoustic panels around the murals to permanently conceal them from public view. Kerson brought suit against the law school, alleging that obscuring his work behind a permanent barrier violated his rights under the Visual Artists Rights Act of 1990 (“VARA”), which creates a cause of action for artists to prevent the modification and, in certain instances, destruction of works of visual art.   The Second Circuit affirmed. The court held that merely ensconcing a work of art behind a barrier neither modifies nor destroys the work, as contemplated by VARA, and thus does not implicate VARA’s protections. The court explained that this case presents weighty concerns that pin an artist’s moral right to maintain the integrity of an artwork against a private entity’s control over the art in its possession. On the facts presented here, the court resolved this tension by hewing to the statutory text, which reflects Congress’s conscientious balancing of the competing interests at stake.  Because mere concealment of the Murals neither “modifies” nor “destroys” them, the Law School has not violated any of VARA’s prohibitions. As such, VARA does not entitle Plaintiff to an order directing the Law School to take the barrier down and continue to display the Murals. View "Kerson v. Vermont Law School, Inc." on Justia Law

Objector-Appellant appealed from a district court judgment approving a settlement award, attorneys’ fee award, and incentive award in a class action lawsuit. Plaintiff-Appellee, on behalf of similarly situated subscribers in California, sued Defendant-Appellee The New York Times (“NYT”), claiming that NYT automatically renewed NYT subscriptions without providing the disclosures and authorizations required by California’s Automatic Renewal Law (the “ARL”).  The parties negotiated a settlement agreement whereby class members dropped their claims in exchange for NYT’s reformation of its business practices and either Access Codes for one-month NYT subscriptions or pro rata cash payments. The settlement agreement also provided for the payment of substantial attorneys’ fees to class counsel and an incentive award to the class representative. Appellant objected to the proposed settlement, primarily arguing that the settlement is unfair, the attorneys’ fees calculation improperly exceeds limits set by the coupon settlement provisions of the Class Action Fairness Act (“CAFA”), and the incentive award is not authorized by law. The district court disagreed, certifying a class and approving the settlement, $1.25 million attorneys’ fees, and a $5,000 incentive award.   On appeal, the Second Circuit agreed with Appellant that the district court exceeded its discretion when it approved the settlement based on the wrong legal standard in contravention of Rule 23(e). The court also agreed that the Access Codes are coupons,  which subject the attorneys’ fees calculation to CAFA’s coupon settlement requirements. Because the district court’s conclusions are intertwined, the court vacated the district court’s judgment in its entirety and remanded the case to the district court for further proceedings. View "Maribel Moses v. The New York Times Company" on Justia Law