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

Plaintiff appealed from a judgment granting defendant's motion to dismiss as untimely plaintiff's complaint, which alleged breach of fiduciary duty, intentional misrepresentation, negligent misrepresentation, and conspiracy to commit those three offenses. At issue was whether the district court properly ruled that tolling of the untimely claims, on the basis of defendant's continuing concealment, was unwarranted. The court affirmed and held that the lawsuit, commenced on April 2004, arose from an injury suffered no later than June 2000 and therefore, was barred by the applicable statute of repose, Conn. Gen. Stat. 52-577. The court also held that plaintiff could not seek the safe harbor of equitable estoppel due to its failure to recognize that it was required to pursue its action. Accordingly, the court affirmed the judgment of the district.

Petitioners appealed from a Memorandum and Order and Final Order of Forfeiture entered by the district court dismissing their petition for an ancillary hearing and rejecting their claim as beneficiaries of a putative constructive trust in defendant's forfeiture assets. At issue was whether the remission provision of 21 U.S.C. 853(i) precluded the imposition of a constructive trust in petitioners' favor and whether imposing a constructive trust would be consistent with a forfeiture statutory scheme provided by section 853. Because the court concluded that section 853(i) did not preclude, as a matter of law, recognizing a constructive trust and because a constructive trust was not inconsistent with the forfeiture statute, the court vacated the Final Order of Forfeiture and remanded the case to the district court to consider whether, pursuant to Vermont law, a constructive trust should be recognized in favor of petitioners.

K&L Gates LLP ("K&L Gates") filed a motion to lift two protective orders prohibiting disclosure of communications made during mediation. Savage & Associates, P.C. ("Savage") filed a cross-motion to enjoin K&L Gates from raising questions about the validity of certain provisions of a settlement agreement as a defense to malpractice in a related action. At issue was whether the district court properly denied both K&L Gates' motion and Savage's cross-motion. The court held that the district court did not err in the denial of K&L Gates' motion where K&L Gates failed to demonstrate a compelling need for the discovery, failed to show that the information was not otherwise available, and failed to establish that the need for the evidence was outweighed by the public interest in maintaining confidentiality. The court also held that the district court did not err in holding that K&L Gates was not barred from asserting a defense challenging the validity of any provision of the settlement agreement in connection with the related malpractice action currently pending against the law firm.

Kristan Peters, an attorney admitted to the bars of both New York and Connecticut and formerly a partner at the law firm of Dorsey & Whitney, appealed from an order of the Committee on Grievances for the United States District Court for the Southern District of New York ("Grievance Committee") suspending her from practicing law before that court for a period of seven years. The Grievance Committee found that she had engaged in misconduct which involved instructing a junior attorney to deface transcripts ("Brackett allegation") and violating a confidentiality order ("Confidentiality Order allegation"). At issue was whether the Grievance Committee's failure to hold an independent hearing, and its reliance on a prior sanctions hearing in the underlying litigation, violated her due process rights and the district court's local rules. Also at issue was whether the two charges of misconduct now at issue did not, as a matter of law, support the Grievance Committee's imposition of discipline. The court held that Peters was not provided adequate prior notice of the Brackett allegation or adequate opportunity to cross-examine witnesses. The court also held that evidence concerning the Confidentiality Order allegation was not adequately developed during that prior proceeding so as to permit the Grievance Committee to forego an independent evidentiary hearing in the present matter. Therefore, the court vacated the Grievance Committee's suspension order and remanded the matter for the further proceedings.