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

Plaintiffs Marco Destin, Inc., 1000 Highway 98 East Corp., E&T, Inc., and Panama Surf & Sport, Inc. (collectively, “Marco Destin”) filed a lawsuit against agents of L&L Wings, Inc. (“L&L”), alleging that a 2011 stipulated judgment in a trademark action was obtained through fraud. Marco Destin claimed that L&L had fraudulently procured a trademark registration from the USPTO, which was used to secure the judgment. They sought to vacate the 2011 judgment under Federal Rule of Civil Procedure 60(d)(3) and requested sanctions and damages.The United States District Court for the Southern District of New York dismissed the action for failure to state a claim. The court found that Marco Destin had a reasonable opportunity to uncover the alleged fraud during the initial litigation. Specifically, the court noted that the License Agreement between the parties indicated that other entities might have paramount rights to the "Wings" trademark, suggesting that Marco Destin could have discovered the fraud with due diligence.The United States Court of Appeals for the Second Circuit reviewed the district court’s dismissal for abuse of discretion. The appellate court confirmed that the district court acted within its discretion in declining to vacate the 2011 stipulated judgment. The court emphasized that Marco Destin had a reasonable opportunity to uncover the alleged fraud during the initial litigation and that equitable relief under Rule 60(d)(3) requires a showing of due diligence. The appellate court found no abuse of discretion in the district court’s conclusion that Marco Destin could have discovered the fraud through proper diligence.The Second Circuit affirmed the judgment of the district court, upholding the dismissal of Marco Destin’s claims. View "Marco Destin, Inc. v. Levy" on Justia Law

In 2021, Ellva Slaughter was charged with illegally possessing a firearm while knowing he had previously been convicted of a felony, violating 18 U.S.C. § 922(g)(1). Slaughter moved to dismiss the indictment, arguing that the jury selection plan of the Southern District of New York (SDNY) systematically underrepresented Black and Hispanic or Latino people, violating his Sixth Amendment right and the Jury Selection and Service Act of 1968 (JSSA). The district court assumed the underrepresentation was significant but denied the motion, finding Slaughter failed to prove systematic exclusion in the jury selection process.The United States District Court for the Southern District of New York denied Slaughter's motion to dismiss the indictment. The court assumed without deciding that there was significant underrepresentation of Black and Hispanic or Latino people but concluded that Slaughter did not establish that this underrepresentation was due to systematic exclusion. The court found that Slaughter's expert did not provide evidence that the identified practices caused the disparities and noted that many of the challenged practices were authorized by the Second Circuit. The court also found that any disparities were due to external factors outside the SDNY's control.The United States Court of Appeals for the Second Circuit reviewed the case. The court applied the framework from Duren v. Missouri, assuming without deciding that the underrepresentation was significant. However, it concluded that Slaughter did not meet his burden of proving systematic exclusion. The court found that Slaughter's expert did not provide sufficient evidence that the SDNY's practices caused the underrepresentation. The court affirmed the district court's judgment, holding that Slaughter failed to establish a prima facie violation of the fair cross-section requirement under the Sixth Amendment and the JSSA. View "United States v. Slaughter" on Justia Law

Jonathan Michel, a sophomore at Yale University during the Spring 2020 semester, filed a putative class action against Yale after the university transitioned to online-only classes due to the COVID-19 pandemic. Michel sought tuition refunds, claiming promissory estoppel and unjust enrichment under Connecticut law, arguing that Yale's refusal to refund tuition was inequitable since the online education provided was of lower value than the in-person education promised.The United States District Court for the District of Connecticut granted Yale's motion for summary judgment, concluding that Michel did not present evidence of financial detriment caused by the transition to online classes, a necessary element for both promissory estoppel and unjust enrichment claims. The court dismissed Michel's suit on January 31, 2023.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's judgment. The appellate court held that Michel's quasi-contract claims were barred by a "Temporary Suspension Provision" in Yale's Undergraduate Regulations. This provision, which acted as a force majeure clause, allowed Yale to transition to online-only classes during the pandemic without issuing tuition refunds. The court concluded that Michel and Yale had a contractual relationship governed by this provision, which precluded Michel's quasi-contract claims. Therefore, Yale was entitled to summary judgment. View "Michel v. Yale University" on Justia Law

In 2019, Tamika Miller filed a qui tam action under the False Claims Act (FCA) against Citibank, alleging that the bank violated 2015 consent orders by hiding failures in its management of third-party risks to avoid paying regulatory fines. Miller claimed that Citibank altered audit reports to downplay compliance violations, thereby avoiding penalties. The United States declined to intervene in June 2020. In October 2020, Citibank entered into a new consent order with the Office of the Comptroller of the Currency (OCC) and paid a $400 million civil penalty. Miller sought a share of this penalty, arguing it was an alternate remedy for her qui tam claim.The United States District Court for the Southern District of New York granted Citibank's motion to dismiss Miller's complaint for failure to state a claim and denied her motion for a share of the $400 million penalty. The court found that Miller failed to allege an "obligation" to pay the government as required by the FCA and did not meet the particularity requirement of Federal Rule of Civil Procedure 9(b). The court also denied Miller's request for leave to amend her complaint, concluding that the deficiencies could not be cured by amendment.The United States Court of Appeals for the Second Circuit affirmed the district court's decision. The appellate court held that Miller failed to state a reverse false claim because she did not allege an established duty for Citibank to pay the government. The court also found that Miller's complaint did not meet the particularity requirement of Rule 9(b) as it failed to identify specific false statements or reports. Consequently, Miller was not entitled to a share of the $400 million penalty, and the district court did not err in denying her leave to amend her complaint. View "Miller v. United States, Citibank, N.A." on Justia Law

The United States Senate Select Committee on Intelligence generated a report on the Detention and Interrogation Program conducted by the CIA after September 11th. The Committee transmitted the report to various federal agencies. Douglas Cox submitted FOIA requests to these agencies for their copies of the report. The agencies denied the requests, arguing that the report is a congressional record, not an agency record, and thus not subject to FOIA disclosure.The United States District Court for the Eastern District of New York granted summary judgment in favor of the agencies, agreeing that the report is a congressional record not subject to FOIA. The court also denied Cox’s request for discovery.The United States Court of Appeals for the Second Circuit reviewed the case. The court applied the test from Behar v. United States Department of Homeland Security, which asks whether the non-covered entity (Congress) manifested a clear intent to control the documents. The court found that the Committee had a clear intent to control the report at the time of its creation, as evidenced by a June 2, 2009, letter. The court concluded that the Committee’s subsequent actions did not vitiate this intent. Therefore, the report remains a congressional record not subject to FOIA. The court also held that the district court did not abuse its discretion in denying discovery, as Cox failed to show bad faith or provide evidence that the exemptions claimed by the agencies were improper. The Second Circuit affirmed the district court’s judgment. View "Cox v. Dep't of Justice" on Justia Law

Enock Mensah, a social worker, was convicted of theft of public funds and health care fraud for billing publicly funded agencies for over 1,600 treatment sessions that never occurred. The United States District Court for the Eastern District of New York sentenced him to forty-two months of imprisonment, followed by one year of supervised release, and ordered him to pay $177,345 in restitution.Mensah appealed, arguing that the district court erred in three ways: (1) failing to excuse or further examine a juror who knew a government witness, (2) denying his post-trial motion for a new trial based on a prosecutor's comment that suggested Mensah had the ability to testify, and (3) applying a ten-level enhancement based on the loss amount in calculating the United States Sentencing Guidelines advisory range.The United States Court of Appeals for the Second Circuit reviewed the case. The court found that the district court did not abuse its discretion by allowing the juror to remain, as the connection was too attenuated to presume bias. The voir dire was deemed adequate in screening for actual bias. Regarding the prosecutor's comment, the court held that any potential prejudice was moot since Mensah chose to testify, and there was no evidence that the comment compelled him to do so. Finally, the court found no clear error in the district court's calculation of the loss amount, which was based on substantial evidence, including video surveillance, license-plate reading technology, and cellphone records.The Second Circuit affirmed the district court's judgment, upholding Mensah's conviction and sentence. View "United States v. Mensah" on Justia Law

The defendants were involved in a fraudulent slip-and-fall scheme in which they recruited poor and homeless individuals to stage accidents and seek unnecessary medical treatment. The scheme involved doctors and lawyers who would then sue property owners or their insurance companies for damages, with the proceeds being divided among the conspirators. The recruits received minimal compensation compared to the organizers.The United States District Court for the Southern District of New York convicted the defendants of conspiracy to commit mail and wire fraud. The jury found them guilty, and the court sentenced them based on the guidelines calculations, including enhancements for the number of victims and the amount of loss. The defendants appealed their convictions and sentences, arguing various errors in the trial and sentencing process.The United States Court of Appeals for the Second Circuit reviewed the case. The court affirmed the convictions, finding no persuasive arguments to overturn them. However, it remanded for factfinding regarding the number of fraudulent accidents orchestrated by the conspiracy during the defendants' involvement to accurately compute the loss enhancement under U.S.S.G. § 2B1.1. The court vacated and remanded Duncan’s forfeiture order, concluding it was based on government allegations without factual support. The restitution order for Rainford and Locust was affirmed but modified by $120,000. Rainford’s sentence was affirmed but remanded for reconsideration in the interest of justice.The main holdings were: affirming the convictions, remanding for factfinding on the loss enhancement, vacating and remanding Duncan’s forfeiture order, modifying the restitution order, and remanding Rainford’s sentence for reconsideration. View "United States v. Rainford" on Justia Law

Scott Lupia, a locomotive engineer for New Jersey Transit Rail Operations, Inc. (NJT), was injured when the air conditioning (A/C) unit in his cab malfunctioned, causing the temperature to rise to 114 degrees Fahrenheit. Despite notifying his supervisors, Lupia was instructed to operate the train, leading to his collapse from heat exhaustion and subsequent permanent injuries. Lupia filed a lawsuit under the Federal Employers’ Liability Act (FELA), alleging that NJT violated the Locomotive Inspection Act (LIA) by failing to maintain the locomotive's parts and appurtenances, including the A/C unit, in safe operating condition.The United States District Court for the Southern District of New York denied NJT's motion for summary judgment, holding that a temperature control system, including an A/C unit, is considered a "part and appurtenance" of a locomotive under the LIA. The court found sufficient evidence that NJT's failure to maintain the A/C unit in proper condition posed an unnecessary danger of personal injury. During the trial, the court allowed Lupia to introduce a report to impeach NJT’s witness and permitted arguments regarding noneconomic damages. The jury awarded Lupia significant damages for lost earnings and pain and suffering.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the District Court's judgment. The appellate court agreed that a temperature control system is an integral part of a locomotive and that NJT was required to maintain the A/C unit in safe operating condition once it chose to use it as part of its temperature control system. The court also found no abuse of discretion in the District Court's evidentiary rulings and its decision to allow arguments on noneconomic damages. View "Lupia v. New Jersey Transit Rail Operations, Inc." on Justia Law

Carlos Martinez, a former federal prison guard, was convicted of multiple charges related to the repeated rape of an inmate, referred to as "Maria," at the Metropolitan Detention Center in Brooklyn, New York. Maria testified that Martinez raped her on five occasions, using both physical force and threats to coerce her. The jury found Martinez guilty of several counts, including sexual abuse by threats or fear, deprivation of civil rights, and aggravated sexual abuse for one of the rapes.The United States District Court for the Eastern District of New York sentenced Martinez to ten years in prison. Martinez challenged the sufficiency of the evidence for two counts, arguing that the jury's acquittals on other counts indicated they did not believe Maria's testimony. The government cross-appealed, arguing that the ten-year sentence was procedurally and substantively unreasonable.The United States Court of Appeals for the Second Circuit reviewed the case. The court rejected Martinez's sufficiency challenge, affirming that the jury was entitled to credit Maria's testimony that Martinez physically restrained her during one of the rapes. The court also noted that inconsistent verdicts do not undermine a conviction.The court found the district court's sentence procedurally unreasonable due to several errors: relying on clearly erroneous factual findings, misapprehending the law, and failing to sentence Martinez based on all his convictions. The district court had improperly treated the convictions for sexual abuse by threats or fear as equivalent to sexual abuse of a ward, and it had given undue weight to its doubts about the jury's guilty verdicts.The Second Circuit held that the ten-year sentence was also substantively unreasonable because it did not adequately reflect the seriousness of Martinez's offenses. The court affirmed the judgment of conviction, ordered that a specific paragraph in the Presentence Investigation Report be stricken, and remanded the case for resentencing consistent with its opinion. View "United States v. Martinez" on Justia Law

In December 2020, Steve Rosado was arrested after attempting to meet with a woman he believed to be the mother of two young girls, with the intent to engage in illegal sexual activity. The woman was actually an undercover law enforcement agent. Rosado, a registered sex offender with prior convictions involving minors, was charged with attempted enticement of a minor and attempted receipt of child pornography. He pled guilty to both charges.The United States District Court for the Southern District of New York sentenced Rosado to 240 months in prison, followed by a lifetime of supervised release. During sentencing, the court orally pronounced several conditions of supervised release. However, the written judgment included additional conditions that were not mentioned during the oral pronouncement. Rosado appealed, arguing that these additional conditions should have been pronounced at sentencing.The United States Court of Appeals for the Second Circuit reviewed the case. The court found that the district court had failed to pronounce the seven additional conditions at sentencing, as required by Federal Rule of Criminal Procedure 43(a). The appellate court held that the oral pronouncement of the sentence controls over the written judgment. Consequently, the court vacated the written judgment and remanded the case to the district court with instructions to remove the unpronounced conditions from the written judgment. The appellate court affirmed the district court’s judgment on other challenges raised by Rosado in a concurrently issued summary order. View "United States of America v. Rosado" on Justia Law