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Judgment creditors of the Islamic Republic of Iran and Iran's Ministry of Intelligence and Security sought to enforce underlying judgments obtaining the turnover of $1.68 billion in bond proceeds allegedly owned by Bank Markazi. The Second Circuit held that the settlement agreements released plaintiffs' non-turnover claims with respect to some but not all of the banks; the assets at issue were in fact located abroad, but that those assets may nonetheless be subject to turnover under state law pursuant to an exercise of the court's in personam jurisdiction, inasmuch as the district court has the authority under New York State law to direct a non‐sovereign in possession of a foreign sovereignʹs extraterritorial assets to bring those assets to New York State; and those assets will not ultimately be subject to turnover, however, unless the district court concludes on remand that such in personam jurisdiction exists and the assets, were they to be recalled, would not be protected from turnover by execution immunity. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "Peterson v. Islamic Republic of Iran" on Justia Law

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A debt collector engages in unfair or unconscionable litigation conduct in violation of section 1692f when, as alleged here, it in bad faith unduly prolongs legal proceedings or requires a consumer to appear at an unnecessary hearing. The Second Circuit vacated the district court's dismissal of an action alleging that GMBS violated sections 1692e and 1692f of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692e and 1692f, when it garnished plaintiff's bank account and then tried to block him from showing that all of the funds in his account were exempt from garnishment. In this case, GMBS was alleged to have violated each section based on different conduct: section 1692e based on the false statements made in GMBS's affirmation, and section 1692f based on GMBS's objection to plaintiff's exemption claim when it allegedly knew there was no legally sufficient basis to do so. The court held that the complaint stated a claim under sections 1692e and 1692f. View "Arias v. Gutman, Mintz, Baker & Sonnenfeldt LLP" on Justia Law

Posted in: Consumer Law

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Plaintiff, as assignees of its customers against the insurer, appealed the district court's grant of summary judgment for the insurer. Plaintiff alleged that the insurer failed to pay sufficient funds to fulfill its obligations to return damaged vehicles to pre‐accident condition, and engaged in deceptive practices in claims processing. The Second Circuit held that the district court erred in part in granting summary judgment to the insurer on plaintiff's breach of contract claims, because the insurer failed to show its entitlement to judgment for costs relating to labor hours, parts, labor rates, electronic database access, and hazardous waste removal charges, and the absence of genuine disputes of material fact on these issues. The district court erred in granting summary judgment to the insurer on plaintiff's New York General Business Law 349 claims, because there was a question of material fact regarding plaintiff's claim that the insurer engaged in deceptive practices concerning its labor rates payments and that claim was not precluded by N.Y. Ins. Law 2601. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "Nick's Garage, Inc. v. Progressive Casualty Insurance Co." on Justia Law

Posted in: Insurance Law

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The Second Circuit affirmed the district court's order granting plaintiffs' motion for class certification in an action asserting violations of section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. 78j(b). The court held that the Affiliated Ute Citizens of Utah v. United States, 406 U.S. 128 (1972), presumption did not apply because plaintiffs' claims were primarily based on misstatements, not omissions; direct evidence of price impact was not always necessary to demonstrate market efficiency, as required to invoke the Basic Inc. v. Levinson, 485 U.S. 224 (1988), presumption of reliance, and was not required here; defendants seeking to rebut the Basic presumption must do so by a preponderance of the evidence, which defendants failed to do; and the district court's conclusion regarding plaintiffs' classwide damages methodology was not erroneous. View "Waggoner v. Barclays PLC" on Justia Law

Posted in: Securities Law

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Plaintiff filed suit against defendant, alleging that defendant, who had power of attorney over plaintiff's finances, stole millions of dollars from him through fraudulent financial schemes. The district court granted defendant's motion to dismiss the complaint on the ground that plaintiff failed to allege a domestic injury as required by RJR Nabisco, Inc. v. European Community, 136 S. Ct. 2090 (2016). The Second Circuit held that, to the extent plaintiff alleged injuries to property located within the United States, he satisfied the Racketeer Influenced and Corrupt Organizations Act's, 18 U.S.C. 1964(c), domestic injury requirement. But to the extent plaintiff alleged injuries to property located outside of the United States, the fact that defendant or his co‐defendants transferred those stolen funds to (or through) the United States fails to transform an otherwise foreign injury into a domestic one. Accordingly, the court reversed in part, vacated in part, and remanded. View "Yarur Bascunan v. Yarur Elsaca" on Justia Law

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After claimant was injured while inspecting a moored barge, he filed claims against the barge company as his employer, the owner of the barge, and the operator of the rock processing facility, under the Jones Act, 46 U.S.C. 30101‐30106, the Longshore and Harbor Workersʹ Compensation Act (LHWCA), 33 U.S.C. 901‐950, general maritime law, and New York state law. The Second Circuit affirmed the dismissal of the Jones Act claims because claimant did not qualify as a ʺseamanʺ within the meaning of the Jones Act. However, the court held that the district court erred in dismissing certain of claimant's remaining claims against the owner of the barge and the operator of the rock processing facility. In this case, the district court erred in dismissing the LHWCA claim against Franz to the extent it was based on the alleged breach of Franzʹs duty, as owner, to turn over a reasonably safe vessel; and the state law claims against Tilcon for negligence, gross negligence, and violation of N.Y. Labor Law 200. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "In re Complaint of Buchanan Marine, L.P." on Justia Law

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Plaintiff appealed the district court's grant of summary judgment to defendants on his claims under 42 U.S.C. 1983 and the Fourth and Fifth Amendments for false arrest, malicious prosecution, and violation of due process. Plaintiff's claim stemmed from his arrest and charge in connection with a bar brawl that resulted in one dead victim and another severely injured victim. The Second Circuit held that the district court's grant of summary judgment on the false arrest and malicious prosecution claims was premature, because disputed questions of material fact remained regarding key aspects of the criminal investigation and subsequent prosecution. The panel concluded that those same questions of material fact preclude a grant of qualified immunity at the summary judgment stage. However, the court agreed with the district court that plaintiff's due process claim failed as a matter of law. Accordingly, the court affirmed in part, and vacated and remanded in part. View "Dufort v. City of New York" on Justia Law

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The Second Circuit granted leave to file a petition for 28 U.S.C. 1292(b) review. At issue was whether petitioners' notice of appeal, which was filed within ten days of the district court's order sought to be reviewed, was the functional equivalent of a section 1292(b) petition to invoke the court's jurisdiction over a later filed petition. The court held that, under all the circumstances of this case, the timely filed notice of appeal was sufficient to invoke the court's appellate jurisdiction over the section 1292(b) petition. View "Yu v. Hasaki Restaurant, Inc." on Justia Law

Posted in: Civil Procedure

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Three groups of creditors appealed MPM's substantially consummated plan of reorganization under Chapter 11 of the Bankruptcy Code. The Subordinated Notes holders challenged the lower courts' conclusions that their claims were subordinate to the Second-Lien Notes holders' claims; the Senior-Lien Notes holders contended that the lower courts erroneously applied a below-market interest rate to their replacement notes; the Senior-Lien Notes holders challenge the lower courts' rulings that they were not entitled to a make-whole premium; and debtors argued that the court should dismiss these appeals as equitably moot. The Second Circuit found merit only in the Senior-Lien Notes holders' contention with respect to the method of calculating the appropriate interest rate for the replacement notes. The court held that the Second-Lien Notes stand in priority to the Subordinated Notes; held that the Senior-Lien Notes holders were not entitled to the make-whole premium; declined to dismiss any of the appeals as equitably moot; and remanded to the bankruptcy court to assess whether an efficient market rate could be ascertained, and if so, applied to the replacement notes. View "In re MPM Silicones, LLC" on Justia Law

Posted in: Bankruptcy

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The Second Circuit reversed the district court's denial of qualified immunity for federal law enforcement authorities in an action for money damages pursuant to Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971), based on alleged Fourth and Fifth Amendment violations in procuring and executing a search warrant. The court held that plaintiff failed to plead a plausible Fourth Amendment claim of unreasonable search and seizure because a corrected affidavit supports both probable cause for and the scope of the challenged search; plaintiff failed to plead a plausible Fifth Amendment claim that fabricated evidence (in the search warrant affidavit) deprived him of property without due process because the warrant would have issued on a corrected affidavit and thus any deprivation of the seized property was not the result of the fabricated evidence; plaintiff could not plausibly plead that defendants' alleged failure to intercede in the challenged search caused him preventable constitutional harm; plaintiff failed to plead any clearly established right to have federal officials state in a search warrant affidavit whether each referenced person is or is not then a target of investigation, nor a right to have federal officials so state after the fact if the search becomes public knowledge; and plaintiff failed to plead sufficient facts as to the supervisor defendants' personal involvement in the submission of any misstatements to the magistrate judge. Accordingly, the court remanded for entry of judgment for defendants. View "Ganek v. Leibowitz" on Justia Law