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

Appellants, American victims of terror attacks in Israel, appealed from the district court’s judgment dismissing their complaint for lack of in personam jurisdiction over Appellee Bank Saderat PLC, a bank associated with the Islamic Republic of Iran. Appellants challenged the district court’s conclusion that the Appellee’s default, which occurred just after the venue was transferred from the United States District Court for the District of Columbia to the Eastern District of New York, did not forfeit its objection to personal jurisdiction in New York.   The Second Circuit concluded that the district court’s judgment relied on the erroneous factual finding that the Appellee had successfully challenged personal jurisdiction in the District of Columbia before the case was transferred to New York. The court explained that the district court premised its legal conclusion – that this case was distinguishable from Mickalis Pawn Shop – on the incorrect factual finding that BSPLC’s pre-transfer, pre-default personal jurisdiction challenge in the District of Columbia was successful. The record demonstrates that BSPLC achieved no such victory. It was, therefore clear error for the district court to find otherwise and to rely on that fact for the purpose of distinguishing BSPLC’s conduct from that of the defendants in Mickalis Pawn Shop. View "Kaplan v. Bank Saderat PLC" on Justia Law

Plaintiff Jane Doe alleged that for a period of seven years, she suffered sexual, physical, and psychological abuse at the hands of an Immigration and Customs Enforcement (ICE) officer. Four years after the alleged abuse ended, Doe brought this action against the officer, the United States, the Department of Homeland Security, and two senior DHS officials, asserting various federal and state claims. The district court granted Defendants’ motions for summary judgment based on the applicable statutes of limitations and denied Doe’s request for equitable tolling.   The Second Circuit vacated the district court’s ruling and held that the district court erred in granting summary judgment because the evidence in the record could have allowed it to conclude that the prerequisites for equitable tolling were met. The court explained that the record makes plausible the inferences that years of violent sexual abuse and threats to Doe’s life constituted an extraordinary circumstance preventing Doe from sooner pursuing her claims and that she acted with reasonable diligence. View "Doe v. United States" on Justia Law

The Second Circuit vacated and remanded the district court’s ruling granting summary judgment for Defendants, a former Immigration and Customs Enforcement officer. Plaintiff, Jane Doe, alleged she was sexually and psychologically abused by Defendant, a former Immigration and Customs Enforcement officer. Four years after the abuse ended, Doe initiated this action against Rodriguez and various government defendants. Defendants moved for summary judgment, arguing Doe’s claims were untimely. Doe asked the district court to equitably toll the applicable statutes of limitations. The court granted summary judgment to Defendants.   The Second Circuit vacated and remanded. The court explained that in this case, the district court denied equitable tolling as a matter of law, purporting to draw every inference in favor of Doe. The court vacated its judgment because the record allows for a finding that Doe faced extraordinary circumstances and acted with reasonable diligence. On remand, the district court should act in a fact-finding capacity and determine whether Doe has demonstrated extraordinary circumstances and reasonable diligence. The court explained that if the court determines that she has established these prerequisites for equitable tolling, then it should engage in the discretionary determination of whether to grant her request for equitable tolling. View "Doe v. United States" on Justia Law

Twenty-eight individuals and businesses commenced this citizen suit under the Resource Conservation and Recovery Act (“RCRA”), which creates a private right of action against any entity that has “contributed . . . to the past or present handling, storage, treatment, transportation, or disposal of any solid or hazardous waste which may present an imminent and substantial endangerment to health or the environment.” Plaintiffs complained of elevated levels of radiation detected on their land and seek to hold responsible three entities that operated nearby chemical plants during the twentieth century. The district court dismissed their complaints, holding, among other things, that the radioactive materials found on the plaintiffs’ properties fall outside the scope of RCRA because they were recycled industrial byproducts rather than discarded waste. Defendants raised a host of additional arguments in support of dismissal.   The Second Circuit affirmed in part, vacated in part, and remanded. The court explained that as to Defendants Union Carbide Corporation and Occidental Chemical Corporation, the complaint plausibly alleged the elements of a citizen suit under RCRA, or the Plaintiffs have identified extrinsic evidence that may render amendment fruitful. However, as against defendant Bayer CropScience Inc., there are no particularized allegations from which liability can reasonably be inferred. The court reasoned that there is one probative allegation implicating Bayer: Stauffer’s Lewiston plant was located within 2,000 feet of the Robert Street properties and within a mile of four of the Plaintiffs’ other properties. But proximity alone is insufficient to make Bayer’s contribution plausible. View "Talarico Bros. Bldg. Corp., et al. v. Union Carbide Corp., et al." on Justia Law

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

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

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

Plaintiffs are 21 U.S. citizens who were harmed, and the estate and family members of a U.S. citizen who was killed in rocket attacks carried out in Israel in 2006 by the terrorist organization Hizbollah. Plaintiffs alleged that the Lebanese Canadian Bank (“LCB”) provided extensive financial assistance to Hizbollah in the years leading up to the attacks. In 2011, Defendant Société Générale de Banque au Liban SAL (“SGBL”) acquired all of LCB’s assets and liabilities in a transaction conducted under the laws of Lebanon. Plaintiffs sued for damages under the Anti-Terrorism Act of 1990 and sought to hold SGBL liable as LCB’s successor. The district court dismissed the complaint, concluding that SGBL did not inherit LCB’s status for purposes of personal jurisdiction when it acquired LCB’s assets and liabilities.   The Second Circuit concluded that Plaintiffs’ successor-jurisdiction theory raises an important and unresolved issue under New York law. Accordingly, the court certified the following two questions to the New York Court of Appeals:1. Under New York law, does an entity that acquires all of another entity’s liabilities and assets, but does not merge with that entity, inherit the acquired entity’s status for purposes of specific personal jurisdiction? 2. In what circumstances will the acquiring entity be subject to specific personal jurisdiction in New York? View "Lelchook v. Société Générale de Banque au Liban SAL" on Justia Law

Defendant Donald J. Trump and Appellant the United States of America appealed from a district court judgment denying their motion to substitute the United States in this action pursuant to the Westfall Act of 1988. In the Second Circuit’s prior opinion, the court vacated the district court’s judgment that Trump did not act within the scope of his employment, and the court certified to the D.C. Court of Appeals the following question: Under the laws of the District, were the allegedly libelous public statements made, during his term in office, by the President of the United States, denying allegations of misconduct, with regards to events prior to that term of office, within the scope of his employment as President of the United States?   The D.C. Court of Appeals reformulated our certified question in two parts, asking (1) whether the D.C. Court of Appeals should opine on the scope of the President of the United States’ employment and (2) how the court might clarify or modify the District of Columbia’s law of respondeat superior to resolve the issue in this appeal. The D.C. Court of Appeals answered the former part in the negative and provided additional guidance in response to the latter. Having vacated the district court’s judgment in the court’s prior opinion, the court remanded for further proceedings consistent with the guidance provided in the D.C. Court of Appeals’ opinion. View "E. Jean Carroll v. Donald J. Trump" on Justia Law

Plaintiff alleged that he was sexually abused and exploited from approximately 1978 to 1984, when he was between 12 and 17 years old, by Father P.M., a now-deceased Rhode Island priest. Plaintiff sued the Roman Catholic Bishop of Providence (“RCB”), St. Anthony’s Church Corporation North Providence (“St. Anthony’s”), and a retired Bishop (together, “Defendants”) for various torts based on Defendants’ alleged role in enabling the abuse. The district court dismissed for lack of personal jurisdiction, finding that New York’s long-arm statute did not permit the court to exercise personal jurisdiction over Defendants.   The Second Circuit affirmed. The court concluded that the district court correctly dismissed the case for lack of personal jurisdiction. First, P.M. did not commit the alleged sexual abuse in New York as an agent of Defendants. Second, the alleged conduct is unrelated to Defendants’ business activities in New York. The court explained that Plaintiff argued that the nexus requirement is satisfied because Defendants’ alleged business activity, conducted through P.M., was the “factual cause” of P.M.’s sexual assault of “Plaintiff in New York.” But a chain of causation involving physical presence in New York does not, by itself, create a nexus between an otherwise unrelated tort claim and a business transaction. View "Philip Edwardo v. The Roman Catholic Bishop, et al" on Justia Law