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

Deltech Corp. (“Deltech”), a chemical manufacturer, joins here with Stolt-Nielsen USA, Inc., and Stolt Tank Containers B.V. (together, “Stolt”), a shipping concern, to challenge the district court’s determination that they alone bear liability for damages caused by an explosion and fire that took place in June 2012 aboard the ocean-going vessel M/V MSC Flaminia. In the first phase of a three-part proceeding, the district court addressed the causes of the explosion. It determined that the decision to ship DVB-80 from New Orleans Terminal rather than a northeastern port, the early filling of the DVB-80 containers and their early transport to New Orleans Terminal, the conditions in which the tanks of DVB-80 were kept at New Orleans Terminal, and their placement and stowage onboard the Flaminia were the primary causes of the explosion. It exculpated other parties to the shipping transaction from legal liability. It is this decision that Deltech and Stolt challenge now in an interlocutory appeal.   The Second Circuit affirmed in part and reversed in part. The court reversed the district court’s determination that Deltech and Stolt are strictly liable under Section 4(6) of the Carriage of Goods at Sea Act (“COGSA”), but the court affirmed its ruling that Deltech and Stolt are liable under a failure-to-warn theory pursuant to Section 4(3).  As to the other defendants, the court affirmed the district court’s conclusion that the carrier and related shipowner interests were not negligent in their treatment of the shipment and that New Orleans Terminal too, was not negligent. The court also affirmed the district court’s determination that Stolt has not stated a claim against its subcontractor. View "In re: M/V MSC Flaminia" on Justia Law

Plaintiff, an aspiring sidewalk counselor, brought a First Amendment challenge to Westchester County’s recently enacted “bubble zone” law, which makes it illegal to approach within eight feet of another person for the purpose of engaging in “oral protest, education, or counseling” when inside a one-hundred-foot radius of a reproductive health care facility. The district court dismissed the complaint, holding that Plaintiff lacks standing to mount a pre-enforcement challenge to the bubble zone law and that, in any event, the Supreme Court’s decision in Hill v. Colorado, 530 U.S. 703 (2000) forecloses her First Amendment claim.   The Second Circuit vacated the district court’s ruling insofar as it dismissed Plaintiff’s suit for lack of standing. The court nevertheless affirmed the judgment on the merits because the district court correctly concluded that Hill is dispositive of Plaintiff’s First Amendment claim. The court concluded that Plaintiff has standing to seek pre-enforcement relief because she has pleaded sufficient facts to support a credible threat that Westchester County will enforce the bubble zone law if she pursues her stated intention to engage in sidewalk counseling. View "Vitagliano v. County of Westchester" on Justia Law

Appellants in these tandem appeals are each a parent of a disabled child. Arguing that his or her child was entitled to benefits under the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. Section 1415(i), each parent brought an administrative action against his or her local education agency and prevailed. Subsequently, each parent brought a federal action for attorneys’ fees pursuant to 20 U.S.C. Section 1415(i)(3)(B). In each case, the district court awarded less attorneys’ fees than the parent requested, and the parents appealed.   The Second Circuit reversed the district court’s denial of travel-related fees in No. 21-1961 and remanded for further proceedings. The court otherwise affirmed the judgments of the district courts. The court found that it was persuaded that there was no abuse of discretion in the district court’s calculation of reasonable attorneys’ fees in each case. Further, the court wrote that the district courts that declined to award prejudgment interest did not abuse their discretion because “delays in payment” may be remedied by “application of current rather than historic hourly rates.” However, the court held that the district court abused its discretion when it denied any travel-related fees to M.D.’s counsel. A district court may permissibly adjust excessive travel costs. But the district court could not “eliminate all of the hours submitted by [CLF] as travel time” by denying travel-related fees altogether. View "H.C. v. NYC DOE, et al." on Justia Law

Plaintiffs-Appellants are American victims and the relatives and estates of victims of terrorist attacks in Israel between 2001 and 2003. Plaintiffs alleged that Palestine Investment Bank ("PIB") facilitated the attacks, in violation of the Anti-Terrorism Act, 18 U.S.C. 2213-39D. The district court dismissed the case on the ground that it lacked personal jurisdiction over PIB.Federal Rule of Civil Procedure 4(k)(1)(A) permits a federal court to exercise personal jurisdiction over a defendant to the extent allowed by the law of the state in which it sits. New York's long-arm statute, C.P.L.R. 302(a)(1) authorizes personal jurisdiction over a foreign defendant for causes of action that arise out of “transact[ing] any business within the state,” whether in person or through an agent. in this context, transacting business means “purposeful activity—some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State," invoking the benefits of the state's laws.Here, the PIB's actions indicated that it availed itself of the benefits of New York's financial system and that Plaintiff's claim arose from these activities. View "Spetner v. PIB" on Justia Law

Appellants appealed from a district court’s order reversing an order of the United States Bankruptcy Court confirming a Chapter 11 plan that included nonconsensual third-party releases of direct claims against non-debtors.   The Second Circuit reversed the district court’s order holding that the Bankruptcy Code does not permit nonconsensual third-party releases against non-debtors, affirmed the bankruptcy court’s approval of the Plan, and remanded the case to the district court for such further proceedings as may be required. The court also affirmed the district court’s denial of the Canadian Creditors’ cross-appeal. The court held that nonconsensual third-party releases of such direct claims are statutorily permitted under 11 U.S.C. 10 Sections 105(a) and 1123(b)(6) of the Bankruptcy Code. The court further concluded that the court’s case law also allows for nonconsensual third-party claim releases in specific circumstances, such as those presented in this appeal. View "In re: Purdue Pharma L.P." on Justia Law

Plaintiff brought an action against several police officers and the City of New York, asserting various claims under 42 U.S.C. Section 1983 and New York state law based on his allegation that police officers falsely claimed that they observed him selling drugs. After his criminal trial, Plaintiff was acquitted of a drug sale charge and convicted of a drug possession charge. Plaintiff subsequently filed this civil action, and the district court dismissed all of Plaintiff’s claims.   The Second Circuit affirmed in part and vacated in part the district court’s dismissal of Plaintiff’s claims and remanded. The court wrote that it agreed with the district court’s dismissal of all of the federal claims except for the dismissal of Plaintiff’s due process claim based on the use of fabricated evidence regarding the drug sale charge of which he was acquitted. Specifically, the district court erred in concluding that because Plaintiff was arrested, detained, prosecuted, and convicted for drug possession simultaneous to the drug sale proceedings, this precludes, as a matter of law, his ability to plead a deprivation of liberty caused by the drug sale prosecution. Because the prosecution of an individual based on fabricated evidence may itself constitute a deprivation of liberty, even in the absence of custody or a conviction, Plaintiff was not required to show that his drug sale prosecution resulted in additional custody or a conviction in order to sufficiently allege a claim at the pleading stage. View "Barnes v. City of New York" on Justia Law

Defendant, a reinsurer, appealed from a district court’s ruling granting summary judgment to Plaintiff, its reinsured. On appeal, Defendant argues that the district court erroneously held that its reinsurance obligations to Plaintiff are co-extensive with Appellee’s separate insurance obligations to a third party and that it presented no triable issue of fact on its late-notice defense.   The Second Circuit affirmed. The court wrote that the district court correctly determined that English law, which governs the relevant reinsurance policy, would interpret that policy to provide coverage that is coextensive with Plaintiff’s separate insurance obligations. The district court also correctly rejected Defendant’s late-notice defense because Defendant has not shown the extreme facts necessary under English law to support recognition of that defense where, as here, timely notice is not a condition precedent to coverage. View "The Insurance Company of the State of Pennsylvania v. Equitas Insurance" on Justia Law

Plaintiffs, a group of current and former professional models, appealed the district court’s judgment against them on a variety of claims arising from the use of their images in social media posts promoting a “gentlemen’s club” operated by Defendants. On appeal, Plaintiffs argued, among other things, that the district court misapplied this Court’s framework for evaluating the likelihood of consumer confusion in the context of a Lanham Act false endorsement claim, misconstrued Supreme Court guidance constraining the Lanham Act’s reach in the false advertising context, and applied the wrong statute of limitations to Plaintiffs’ state law right of publicity claims.   The Second Circuit affirmed. The court concluded that the district court properly granted summary judgment on Plaintiffs’ federal claims and the majority of their state law claims and permissibly declined to exercise supplemental jurisdiction over their remaining claims. The Plaintiff’s argument is foreclosed in this specific context by Electra, which held under effectively identical circumstances that the same three factors were sufficient to definitively tilt the Polaroid balance at the summary judgment stage. Further, the court held that here, there is no evidence that Plaintiffs – professional models who have brought this lawsuit precisely because they object to the suggestion that they are even associated with Defendants’ marketplace – directly compete with Defendants. The district court was, therefore, correct to grant summary judgment to Defendants on Plaintiffs’ false advertising claims. Finally, the court wrote that the district court correctly determined the majority of Plaintiffs’ right of publicity claims to be time-barred and permissibly declined to exercise supplemental jurisdiction over the remaining timely claims. View "Souza v. Exotic Island Enterprises, Inc." on Justia Law

In pleading guilty to wire fraud and tax evasion, Defendant agreed to forfeit to the Government his interests in Jreck Subs, a franchised chain of sandwich shops that he used to perpetrate his fraud. Claimants, the Swartz Family Trust and Orienta Investors, LLC filed third-party petitions asserting an interest in the forfeited property. The district court granted the Government’s motions to dismiss the petitions, finding that the Trust’s petition was not submitted before the thirty-day deadline to file such petitions expired and that Orienta failed to state a claim under the forfeiture statute, as either the holder of an interest superior to the Government or as a bona fide purchaser for value. The district court also denied Orienta’s motion for reconsideration, as well as Orienta’s motion for leave to amend its petition.   The court affirmed in part and vacated in part. The court concluded that the Trust’s petition was correctly dismissed as untimely and that Orienta’s petition does not state a claim. The court remanded, however, to allow the district court to further consider Orienta’s motion for leave to amend its petition with respect to its claim that it is a bona fide purchaser for value. The court explained that here, two things potentially tip the scales in favor of granting Orienta leave to amend its bona fide purchaser claim. First, the district court based its dismissal of that claim primarily on a technical issue. Second, the Government acknowledged that additional factual development was necessary to resolve whether Orienta’s petition stated a bona fide purchaser for value claim. View "United States v. Swartz Family Trust" on Justia Law

Defendant Niagara Mohawk Power Corporation (the "Company"), which does business as National Grid, is an electric and natural gas utility that operates throughout New York State. According to Plaintiff Local Union 97, International Brotherhood of Electrical Workers, AFL-CIO (the "Union"), Defendant agreed to provide to certain retired employees, former members of the Union. The Union filed a motion to compel arbitration pursuant to section 301(a) of the Labor Management Relations Act, 29 U.S.C. Section 185(a). The same day, the Company filed a motion for summary judgment dismissing the Complaint. The district court granted the Union's motion to compel arbitration, denied the Company's motion for summary judgment, and ordered that the case be closed.   The Second Circuit affirmed, holding that the agreement covers the dispute. The court explained that when it negotiated the Agreement, the Union bargained both for health insurance benefits for retired employees and for a grievance procedure that included, where necessary, access to arbitration. The court explained that it expressed no view on the merits of the Union's grievance; that is a question for the arbitrator. But interpreting the collective bargaining agreement in light of the principles the Supreme Court reaffirmed in Granite Rock, it is clear that the parties intended to arbitrate this dispute. View "Local Union 97, Int'l Bhd. of Elec. Workers, AFL-CIO v. Niagara Mohawk" on Justia Law