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

Wright cut in front of Musanti as they were walking to their respective Manhattan offices during rush hour. Musanti responded by kicking Wright’s legs, and a verbal and physical altercation ensued. Musanti pressed criminal charges, telling the police that Wright was the initial aggressor, but the district court, relying on video footage and the testimony of both parties, found that Musanti had been the initial aggressor and had given false information to the police. Musanti was found liable for the battery, assault, and false arrest of Wright. The district court awarded Wright nominal, compensatory, and punitive damages (totaling $15, 001). The Second Circuit affirmed, upholding findings that Musanti gave false information to the police by failing to inform them that she initiated the physical contact, and by intentionally downplaying her aggressive conduct and that in requesting that the police press charges, Musanti had induced the police to arrest Wright, because Wright likely would have been released but for her request. It was within the court’s discretion to find that conduct amply egregious to merit punitive damages. View "Wright v. Musanti" on Justia Law

Wright cut in front of Musanti as they were walking to their respective Manhattan offices during rush hour. Musanti responded by kicking Wright’s legs, and a verbal and physical altercation ensued. Musanti pressed criminal charges, telling the police that Wright was the initial aggressor, but the district court, relying on video footage and the testimony of both parties, found that Musanti had been the initial aggressor and had given false information to the police. Musanti was found liable for the battery, assault, and false arrest of Wright. The district court awarded Wright nominal, compensatory, and punitive damages (totaling $15, 001). The Second Circuit affirmed, upholding findings that Musanti gave false information to the police by failing to inform them that she initiated the physical contact, and by intentionally downplaying her aggressive conduct and that in requesting that the police press charges, Musanti had induced the police to arrest Wright, because Wright likely would have been released but for her request. It was within the court’s discretion to find that conduct amply egregious to merit punitive damages. View "Wright v. Musanti" on Justia Law

Plaintiffs filed a putative class action, alleging that defendants (insurance providers, banks, and credit card companies) targeted credit card holders with fraudulent solicitations for illegal accidental disability and medical expense insurance policies. Plaintiffs were among the cardholders who purchased those policies, which plaintiffs allege were void ab initio because they violated New York insurance law. Although plaintiffs did not suffer qualifying losses or make claims for coverage, they argued that they are nevertheless entitled to reimbursement of the premiums and fees they paid defendants, plus enhanced damages, based on quasi‐contract, civil fraud, and statutory claims. The district court dismissed the suit, reasoning that plaintiffs could not establish the injury‐in‐fact element of Article III standing. The court concluded the policies were not void ab initio because under a New York savings statute, plaintiffs would have received coverage had they filed claims for qualifying losses, N.Y. Ins. Law 3103. The Second Circuit vacated, stating that an Article III court must resolve the threshold jurisdictional standing inquiry before it addresses the claim's merits. The district court’s analysis conflated the requirement for an injury in fact with the underlying validity of plaintiffs’ arguments, and engaged a question of New York state law that the state courts have yet to answer. View "DuBuisson v. Stonebridge Life Insurance Co." on Justia Law

Plaintiff filed a putative class action challenging the City's policy of denying tenants the opportunity to open water accounts in their own name and shutting off water service to tenants when landlords fail to pay water bills. The Second Circuit held that the City's policy of denying tenants the opportunity to open water accounts satisfied the requirements of the Equal Protection Clause of the Fourteenth Amendment. The court held, however, that the City's water shutoff policy violated the Due Process Clause and the Equal Protection Clause. While the City has offered sufficient reasons for its policy of refusing to allow tenants to open their own water accounts and thus satisfied the rational basis test, the City's practice of terminating water service to tenants when a landlord failed to pay the water bill was not rationally related to a legitimate government interest. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Winston v. City of Syracuse" on Justia Law

Plaintiff filed a putative class action challenging the City's policy of denying tenants the opportunity to open water accounts in their own name and shutting off water service to tenants when landlords fail to pay water bills. The Second Circuit held that the City's policy of denying tenants the opportunity to open water accounts satisfied the requirements of the Equal Protection Clause of the Fourteenth Amendment. The court held, however, that the City's water shutoff policy violated the Due Process Clause and the Equal Protection Clause. While the City has offered sufficient reasons for its policy of refusing to allow tenants to open their own water accounts and thus satisfied the rational basis test, the City's practice of terminating water service to tenants when a landlord failed to pay the water bill was not rationally related to a legitimate government interest. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Winston v. City of Syracuse" on Justia Law

Plaintiff, a variable annuity policy holder, filed a putative class action in state court alleging breach of contract by an insurance company when it introduced a volatility management strategy to the policies without full compliance with state law. The case was removed to district court and then dismissed. The Second Circuit reversed and remanded, holding that a holder's passive retention of a security following a misrepresentation of which the holder is unaware lacks the "in connection with" requirement for preclusion under the Securities Litigation Uniform Standards Act (SLUSA). In this case, the alleged misrepresentation was not made in connection with the purchase or sale of a SLUSA-covered security. There was no plausible allegation in the complaint that any decision to hold a security occurred that was related in any way to AXA's disclosures to the DFS. The court remanded with instructions to remand the case to state court. View "O'Donnell v. AXA Equitable Life Ins. Co." on Justia Law

Plaintiff, a variable annuity policy holder, filed a putative class action in state court alleging breach of contract by an insurance company when it introduced a volatility management strategy to the policies without full compliance with state law. The case was removed to district court and then dismissed. The Second Circuit reversed and remanded, holding that a holder's passive retention of a security following a misrepresentation of which the holder is unaware lacks the "in connection with" requirement for preclusion under the Securities Litigation Uniform Standards Act (SLUSA). In this case, the alleged misrepresentation was not made in connection with the purchase or sale of a SLUSA-covered security. There was no plausible allegation in the complaint that any decision to hold a security occurred that was related in any way to AXA's disclosures to the DFS. The court remanded with instructions to remand the case to state court. View "O'Donnell v. AXA Equitable Life Ins. Co." on Justia Law

Because New York Labor Law does not call for awards of New York Labor Law (NYLL) liquidated damages on top of liquidated damages under the Fair Labor Standards Act (FLSA), district courts may not award cumulative liquidated damages for the same course of conduct under both statutes. Defendant Islam appealed the district court's damages orders after a default judgment was entered against defendants in an action filed by plaintiff, alleging violations of various state and federal labor and human trafficking laws. The Second Circuit vacated the damages award in this case under the FLSA in favor of the NYLL award. View "Rana v. Islam" on Justia Law

The Second Circuit affirmed the district court's denial of plaintiff's motions to proceed in forma pauperis in three appeals challenging judgments under the three-strikes provision of 28 U.S.C. 1915(g), denial of leave to bring suit in forma pauperis, dismissal of his complaint without prejudice to his filing a new action with payment of the filing fee, and barring him from filing future actions in forma pauperis while a prisoner unless he was under imminent threat of serious physical injury. The court held that plaintiff had more than three strikes and has not met section 1915(g)'s exception to application of the three-strikes rule, and thus denied his arguments to the contrary. View "Akassy v. Hardy" on Justia Law

This appeal involved an intra‐family dispute over who owns a residential house. The Second Circuit held that the district court properly granted defendants' motion for summary judgment on the pleadings with respect to plaintiffs' adverse possession claim where the affirmative complaint did not contain any affirmative facts that plaintiffs did anything that constituted a distinct assertion of a right hostile to defendants. However, with regard to the constructive trust claim, the court held that there may be a genuine dispute of material fact as to whether an implied promise was made and as to whether defendants' refusal to honor this promise unjustly enriched them. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "Jaffer v. Hirji" on Justia Law