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

The New York State Legislature amended N.Y. C.P.L.R. 5206 in 2005, increasing the state's homestead exemption from $10,000 to $50,000. At issue was whether the 2005 Amendment's increased homestead exemption applied to judgment liens perfected prior to the amendment's effective date and, if so, whether application of the law to pre-enactment judgment liens violates the Takings Clause of the Fifth Amendment. The court held that the 2005 Amendment applies to all creditors and all obligations, including pre-existing obligations, regardless of whether the debt was reduced to a judgment lien prior to the statute's enactment; and (2) that retroactive application of the exemption does not constitute an uncompensated taking of pre-enactment judgment liens in violation of the Takings Clause. Accordingly, the court affirmed the judgment of the district court affirming the bankruptcy court's conclusion that there was been no taking of claimant's property.View "1256 Hertel Avenue Associates v. Calloway" on Justia Law

Claimant appealed from the district court's order of forfeiture seizing roughly $750,000 in cash, arguing that the district court erred in granting the government's motion for a default judgment against the res without first considering his motion to dismiss for lack of jurisdiction. The court affirmed the district court's judgment of forfeiture because claimant failed to establishing standing to challenge the forfeiture. View "United States v. Vazquez-Alvarez" on Justia Law

Plaintiffs filed a putative class action alleging that Verizon installed multi-unit terminal boxes on their property without just compensation and violated their due process rights. The court concluded that Williamson Cnty. Reg'l Planning Comm'n v. Hamilton Bank of Johnson City applied to physical takings, with the recognition that the finality requirement was satisfied by a physical taking; in regards to plaintiffs' due process claims, Williamson County applies to such claims arising from the same circumstances as a takings claim; and plaintiffs have failed to exhaust their state remedies through an inverse condemnation proceeding. Accordingly, the court affirmed the judgment of the district court.View "Kurtz v. Verizon New York, Inc." on Justia Law

Plaintiff appealed the dismissal of her complaint alleging that defendants fraudulently procured a mortgage on her home, and thereafter sought to foreclose on that mortgage, in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961 et seq., the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691 et seq., the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq., the New York General Business Law, N. Y. Gen. Bus. Law 349, and common law. The district court denied plaintiff's motion for partial summary judgment on the issues of liability and granted the motions of defendants for summary judgment dismissing the claims against them, ruling that, because plaintiff failed to disclose these claims in a 2006 proceeding under Chapter 13 of the Bankruptcy Code, her present suit was barred for lack of standing or by collateral estoppel. The court considered all of the parties' arguments and, except to the extent indicated, have found them to be without merit. The court affirmed the judgment in regards to the denial of plaintiff's motion for partial summary judgment in her favor and the grant of defendants' motions for summary judgment dismissing her claims under RICO, ECOA, New York Business Law 349, and for negligent misrepresentation. The court vacated so much of the judgment as dismissed plaintiff's claims for violation of TILA and for common-law fraud, and remanded for further proceedings.View "Crawford v. Franklin Credit Management Corp." on Justia Law

Plaintiff filed suit seeking equitable relief to prevent the Town from denying her the ability to build on a lot that she owns in the Town. The district court granted plaintiff an injunction following a bench trial. The Town appealed, arguing that plaintiff did not avail herself to state law proceedings to seek relief concerning her property's zoning status before she filed her municipal estoppel claim in federal court. The court concluded that plaintiff failed to exhaust her administrative remedies as required by state law and, therefore, the district court lacked jurisdiction over the case. The court vacated and remanded with instructions to dismiss the complaint. View "Holt v. Town of Stonington" on Justia Law

Plaintiffs filed a putative class action against defendants alleging that defendants violated the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq., and New York statutory and common law. Plaintiffs alleged that defendants obtained unauthorized attorneys' fees and costs in connection with actions to foreclose liens on plaintiffs' properties arising out of unpaid municipal property taxes and water and sewer charges. The court held that liens for mandatory water and sewer charges imposed by New York City as an incident to property ownership, which are treated as akin to property tax liens, are not subject to the FDCPA because they do not involve a "debt" as that term is defined in the statute. The court also held that the district court properly declined to exercise supplemental jurisdiction over the state law claims. Accordingly, the court affirmed the judgment of the district court. View "Boyd v. J.E. Robert Co., Inc." on Justia Law

Plaintiffs appealed the district court's dismissal of their claims against four trusts to which their loans and mortgages were assigned in transactions involving the mortgagee bank, and against those trusts' trustee. The district court granted defendants' motion to dismiss for failure to state a claim, finding that plaintiffs were neither parties to nor third-party beneficiaries of the assignment agreements and therefore lacked standing to pursue the claims. It is undisputed that in 2009 or 2010, each plaintiff was declared to be in default of his mortgage, and foreclosure proceedings were instituted in connection with the institution of said foreclosure proceedings, the trustee claimed to own each of plaintiff's mortgage and that plaintiffs are not seeking to enjoin foreclosure proceedings. Assuming that these concessions have not rendered plaintiffs' claims moot, the court affirmed the district court's ruling that plaintiffs lacked standing to pursue their challenges to defendants' ownership of the loans and entitlement to payments. Plaintiffs neither established constitutional nor prudential standing to pursue the claims they asserted. View "Rajamin v. Deutsche Bank Nat'l Trust Co." on Justia Law

Plaintiff filed suit alleging that CitiMortgage's responses to requests for information about her mortgage violated the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2601-2617; the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692-1692p; and N.Y. General Business Law (GBL) section 349. The district court dismissed the complaint for failure to state a claim under Rule 12(b)(6). The court concluded that plaintiff failed to allege that CitiMortgage did not properly designate a qualified written address (QWR) or that any or her lawyer's letters were sent to the designated address. Because plaintiff's lawyer's letters are not QWRs, CitiMortgage's RESPA duties were not triggered, and therefore the district court properly dismissed the RESPA claims. The district court did not err in dismissing the FDCPA claims where the amended complaint failed to alleged that CitiMortgage qualified as a debt collector under the FDCPA. The district court did not err in dismissing the section 349 claim where CitiMortgage's QWR address notice was not inadequate. Finally, the court affirmed the judgment of the district court and denied her request for leave to amend. View "Roth v. CitiMortgage Inc." on Justia Law

Stockbridge, a recognized Indian tribe, appealed from the district court's dismissal of its claims asserting title of a tract of land in upstate New York. The court affirmed the judgment of the district court, concluding that it was well-settled that claims by an Indian tribe alleging that it was unlawfully dispossessed of land early in America's history were barred by the equitable principles of laches, acquiescence, and impossibility. View "Stockbridge-Munsee v. State of New York, et al." on Justia Law

Claimants appealed from the district court's forfeiture orders of 23 of the defendant funds and properties to the United States. The judgments were entered by default after the district court granted the motion of the United States under the fugitive disentitlement statute, 28 U.S.C. 2466, to strike Claimants' claims to the properties on the ground that Claimants Padma and Reddy (the "Allens") remained outside the United States in order to avoid prosecution in a related criminal case. The court rejected the government's contention that the burden of proof as to intent under the fugitive disentitlement statute was on Claimants. However, the court also rejected Claimants' contentions that summary judgment standards were applicable, and that the court was required to find that avoidance of criminal prosecution was the Allens' sole, dominant, or principal reason for remaining outside of the United States. The court concluded that the district court's findings were not clearly erroneous and that its application of the fugitive disentitlement statute was well within the bounds of its discretion. The court considered all of Claimants' challenges and found them to be without merit. Accordingly, the court affirmed the judgment of the district court. View "United States v. Technodyne LLC" on Justia Law