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

The City amended it's zoning laws to prohibit the nonconforming use of non-owner-occupied multiple dwellings in various zoning districts. Plaintiffs alleged that the City's failure to notify them, as affected property owners, prior to enacting this zoning change violated their due process rights under the Fourteenth Amendment. The court affirmed the district court's conclusion that the change of zoning rules did not offend the procedural guarantees of the Due Process Clause because the zoning amendment was prospective and generally applicable, and was therefore "legislative" in character rather than "adjudicative." View "Edelhertz v. City of Middletown" on Justia Law

Defendant's criminal conduct involved selling various drugs to a confidential source working with the DEA. The central issue raised on appeal was whether the district court erred in concluding that defendant was not entitled to a sentence reduction for acceptance of responsibility pursuant to U.S.S.G. 3E1.1. Although defendant pleaded guilty to his drug conspiracy charge in a timely fashion, he also attempted to smuggle drugs into a detention center after his plea but prior to his sentencing. Such conduct was inconsistent with accepting responsibility, and the district court was therefore well within its discretion in denying defendant a reduction in his sentence on that basis. The court also concluded that defendant's sentence was otherwise procedurally and substantively reasonable. Accordingly, the court affirmed the judgment. View "United States v. Chu" on Justia Law

The Steel institute appealed the district court's grant of the City's motion for summary judgment and dismissal of its complaint, which alleged that the City's regulation of cranes and other hoisting equipment was preempted by federal law. The court granted some weight to OSHA's view in reaching its conclusion that local regulatory schemes such as the City's crane regulations have the aim and primary effect of regulating conduct to secure the safety of the general public, rather than the safety of workers in the workplace. Therefore, the City's crane regulations were saved from preemption as laws of general applicability and the court affirmed the judgment. View "Steel Institute of New York v. City of New York" on Justia Law

Several individual investors appealed from the district court's dismissal of their complaint alleging securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. 78a et seq. This litigation arose out of a fraudulent scheme engaged in a now-defunct broker-dealer (Baron). The court concluded that the investors have sufficiently pleaded with particularity that certain Baron investors (Dweck) provided knowing and substantial assistance in financing and facilitating the Baron fraud. While such allegations would easily be sufficient in an SEC civil action, or a federal criminal action because this knowing and substantial assistance constituted, at the least, aiding and abetting, they did not meet the standards for private damage actions under Section 10(b). Nevertheless, with the investors' state law claims - civil conspiracy to defraud and aiding and abetting fraud - the complaint alleged sufficient involvement by Dweck in the scheme to survive a motion to dismiss. Therefore, the court vacated the dismissal and remanded the state law claims for further proceedings. The court affirmed the dismissal of the federal securities claims. View "Fezzani v. Bear, Stearns & Co." on Justia Law

Plaintiffs appealed from the district court's dismissal of their Second Amended Class Action Complaint pursuant to Rule 12(b)(6). Plaintiffs challenged the veracity of certain advertisements in which Time Warner allegedly described its Road Runner Internet service. Plaintiffs asserted that Time Warner's allegedly deceptive advertisements violated New York General Business Law 349 and various California consumer protection statutes, and gave rise to claims for common law fraud, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. The court concluded that the allegations of the Complaint were materially inconsistent with the sole advertisement plaintiffs have submitted. Therefore, the court concluded that plaintiffs' claims lacked the facial plausibility necessary to survive a motion to dismiss. Accordingly, the court affirmed the judgment. View "Fink v. Time Warner Cable" on Justia Law

After defendant, a developer, had not furnished a "printed property report," as required by the Interstate Land Sales Full Disclosure Act (ISLA), 15 U.S.C. 1701 et seq., plaintiff claimed that their contract to purchase a condominium unit from defendant was voidable. On appeal, defendant challenged the district court's grant of summary judgment to plaintiff. At issue was whether a single-floor condominium unit in a multi-story building was a "lot," thus triggering the disclosure and reporting requirements of the ISLA. The Consumer Financial Protection Bureau (CFPB) and the Department of Urban Development (HUD) promulgated a rule defining the term "lot" to require the "exclusive use of... land," and, in turn, interpreted the term "land" to mean "realty," thus applying ILSA's requirements to condominium units in multi-story buildings. Because "land" could be used as a term of art meaning "realty," the court held that CFPB and HUD have reasonably interpreted their own definition of the term "lot." Accordingly, the court concluded that the district court properly granted summary judgment to plaintiff. Further, the district court did not err or abuse its discretion by awarding attorneys' fees. View "Berlin v. Renaissance Rental Partners, LLC" on Justia Law

Petitioner, a native of El Salvador, petitioned for review of the BIA's determination that he was ineligible for the Nicaraguan Adjustment and Central American Relief Act of 1997's (NACARA), Pub. L. No. 105-100, 111 Stat. 2193, so-called "special rule cancellation of removal" under 8 C.F.R. 1240.66(b)(1). The court concluded that the BIA's interpretation of section 1240.66(b)(1) was inconsistent with the regulation, and as an unadmitted alien, petitioner could not be ineligible for special rule cancellation of removal on the basis of a conviction that would make an admitted alien "deportable" under section 237 of the INA. Because the court's holding was limited to the conclusion that conviction of a crime specified under section 237 could not render petitioner, as an unadmitted alien, ineligible for special rule cancellation of removal, the court remanded so that the BIA could decide in the first instance any other matters that could be appropriate in determining whether to grant special rule cancellation of removal to petitioner. View "Reyes v. Holder" on Justia Law

Appellants, an Incumbent Local Exchange Carrier (ILEC), appealed the district court's judgment under the Telecommunications Act of 1996 (TCA), 47 U.S.C. 251-261. At issue was whether the TCA obligated ILECs to provide a connection service known as transit traffic service at negotiated rates or at lower regulated rates to new entrants seeking to exchange traffic with each other through the ILECs' facilities. The court affirmed the district court's determination that appellant was obligated to provide appellees with transit service under the TCA at regulated rates. Further, the court affirmed the district court's reversal of an order requiring appellant to apply regulated rates to all of its contracts for the provision of transit traffic service. View "Southern New England Telephone Co. v. Comcast" on Justia Law

Plaintiffs appealed from the district court's dismissal of their claims in connection with the design, manufacture, and sale by Philip Morris of cigarettes that allegedly contained unnecessarily dangerous levels of carcinogens when smoked by humans, and plaintiffs' independent equitable claim seeking to require Philip Morris to fund a program of medical monitoring for longtime smokers of Marlboro cigarettes who have not been diagnosed with, but were at risk for, lung cancer. The court concluded that the district court properly dismissed plaintiffs' claims for negligence and strict products liability as time barred by the applicable statute of limitations. Further, the implied warranty of merchantability was not breached if the cigarettes were minimally safe when used in the customary, usual, and reasonably foreseeable manner and, therefore, summary judgment dismissing these claims was appropriate. With respect to the claim seeking medical monitoring, the court certified a question of law to the New York Court of Appeals. View "Caronia v. Philip Morris USA" on Justia Law

Plaintiff appealed from the district court's dismissal of the counts in its amended complaint directed against the Vatican State. Plaintiff alleged fraud, negligence, breach of contract, unjust enrichment, and conversion, in connection with a licensing program involving artwork and artifacts in the Vatican Library collection. The district court dismissed plaintiff's claims on the grounds of improper venue based on the forum selection clauses contained in the Sublicense Agreements. Plaintiff is a New York corporation with its principal place of business in Long Beach, New York. The Vatican State is the territory over which the Holy See of the Roman Catholic Church exercised sovereignty. The court held that the Vatican State could invoke the forum selection clauses in the sublicense agreements because the licensee and the Vatican State were "closely related" parties and it was foreseeable that the Vatican would enforce the forum selection clauses. Accordingly, the court affirmed the judgment. View "Magi XXI, Inc. v. Stato della Citta del Vaticano" on Justia Law