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

Plaintiff filed suit alleging claims under the Securities Exchange Act of 1934, 15 U.S.C. 78p(b), against, inter alia, Lead Underwriters. Plaintiff sought to hold Lead Underwriters liable under Section 16(b) for disgorgement of short-swing profits received in connection with their sales and purchases of shares in the course of Facebook, Inc.'s initial public offering (IPO). The district court dismissed the complaint on the grounds that the lock-up agreements alone did not render the Lead Underwriters beneficial owners of the aggregated shares held by the Shareholders under Section 13(d). The court agreed that this standard form lock-up agreement is insufficient, on its own, to establish a group under Section 13(d). Accordingly, the court affirmed the judgment. View "Lowinger v. Morgan Stanley" on Justia Law

Petitioner, a citizen of Portugal and native of Angola, seeks review of DHS's order of removal that was issued without a hearing on the ground that he waived the right to challenge removal by submitting an Electronic System for Travel Authorization (ESTA) application and subsequently entering the country pursuant to the Visa Waiver Program (VWP). The court held that an ESTA record is sufficient evidence of waiver. In this case, the court concluded that the administrative record supports the agency’s finding that petitioner waived his right to a hearing by submitting an ESTA application and entering the United States pursuant to the VWP. Accordingly, the court denied the petition for review. View "Vasconcelos v. Lynch" on Justia Law

Defendant was convicted of murder for hire and related charges. Defendant argues on appeal that the district court erred in ruling that certain defense arguments would open the door to the admission of statements made during a proffer session; the district court erred in admitting evidence of prior bad acts; and there was insufficient evidence to support the conviction. The court concluded that the district court erred in unduly restricting defendant's ability to defend against the charges, and that such error was not harmless. Accordingly, the court affirmed the judgment. View "United States v. Rosemond" on Justia Law

Plaintiff prevailed in a jury trial on her claim of pregnancy discrimination. On appeal, plaintiff challenges the district court's decision denying plaintiff's request to provide a jury instruction on punitive damages under the New York City Human Rights Law (NYCHRL), N.Y.C. Admin. Code 8‐502. The court certified the following question to the New York Court of Appeals: What is the standard for finding a defendant liable for punitive damages under the New York City Human Rights Law, N.Y.C. Admin. Code 8‐502? View "Chauca v. Abraham" on Justia Law

Plaintiff, a union employee, filed suit alleging that his employer discriminated against him on the basis of his race and/or national origin, and retaliated against him. At issue on appeal is whether the collective bargaining agreement (CBA), which requires arbitration of disputes over discrimination, requires arbitration of statutory claims. The court concluded that the CBA’s arbitration requirement does not encompass statutory discrimination or retaliation claims with wording that is “clear and unmistakable.” Therefore, the court vacated the district court's grant of defendants' motion to compel arbitration and dismissed the complaint, remanding for further proceedings. View "Lawrence v. Sol G. Atlas Realty Co., Inc." on Justia Law

Plaintiffs filed suit alleging 42 U.S.C. 1983 claims for false arrest, malicious prosecution, abuse of process, and excessive force. Plaintiffs were arrested at a party after officers suspected that plaintiffs were trespassing, loitering for the purpose of using narcotics, and endangering the welfare of a child because there was a 12 year-old child present. Charges against plaintiffs were later dropped. The court held that there is a genuine dispute of material fact as to whether the defendant police officers had probable cause to arrest plaintiffs for trespass. Therefore, the court vacated the judgment. The court remanded the false arrest claim and defendants' claim of qualified immunity related to the false arrest. Finally, the court affirmed the dismissal of the malicious prosecution, abuse of process, and municipal liability claims. View "Mitchell v. The City of New York" on Justia Law

Plaintiffs filed a copyright infringement suit against MP3tunes and its founder and CEO, alleging that two internet music services created by MP3tunes infringed their copyrights in thousands of sound recordings and musical compositions. The district court granted partial summary judgment to defendants, holding that MP3tunes had a reasonably implemented repeat infringer policy under section 512 of the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 512. A jury returned a verdict in favor of plaintiffs, but the district court partially overturned the verdict. The court vacated the district court's grant of partial summary judgment to defendants based on its conclusion that MP3tunes qualified for safe harbor protection under the DMCA because the district court applied too narrow a definition of “repeat infringer”; reversed the district court's grant of judgment as a matter of law to defendants on claims that MP3tunes permitted infringement of plaintiffs’ copyrights in pre‐2007 MP3s and Beatles songs because there was sufficient evidence to allow a reasonable jury to conclude that MP3tunes had red‐flag knowledge of, or was willfully blind to, infringing activity involving those categories of protected material; remanded for further proceedings related to claims arising out of the district court's grant of partial summary judgment; and affirmed the judgment in all other respects. View "EMI Christian Music Group, Inc. v. MP3tunes, LLC" on Justia Law

Hermitage challenges the district court's denial of its motion to disqualify counsel for Prevezon. The underlying litigation arises out of a 2013 civil forfeiture action brought by the United States alleging that Prevezon received the proceeds of a complex, sweeping scheme that defrauded the Russian treasury of roughly $230 million. The government alleges Prevezon laundered portions of the fraud proceeds in New York by buying various real estate holdings in Manhattan. Hermitage, an investment advisory firm, is a victim of the Russian Treasury Fraud. The court concluded that this case presents the “extraordinary circumstances” necessary to grant a writ of mandamus, as Hermitage is without other viable avenues for relief and the district court misapplied well‐settled law. The court explained that it is rare that a nonparty, nonwitness will face the risk of prosecution by a foreign government based on the potential disclosure of confidential information obtained during a prior representation. That real risk, however, coupled with the misapplication of the law by the district court, outweighs the delay and inconvenience to Prevezon of obtaining new counsel. The court found the remaining arguments raised by the parties to be without merit. Accordingly, the court granted the petition for a writ of mandamus and instructed the district court to enter an order disqualifying Moscow and BakerHostetler from representing Prevezon in this litigation. Prevezon’s motion for clarification is denied as moot. View "United States v. Prevezon Holdings, Ltd." on Justia Law

Defendant, the owner and operator of a freight service that couriered items to and from the United States and Canada, was found guilty of nine counts of tax-related offenses. Defendant was charged with violating 26 U.S.C. 7212(a), which imposes criminal liability on one who ʺcorruptly or by force or threats of force . . . endeavors to intimidate or impede any officer or employee of the United States acting in an official capacity under this title.” Another portion of the statute, often referred to as the ʺomnibus clause,ʺ imposes criminal liability on one who ʺin any other way corruptly . . . obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title.ʺ On appeal, defendant argued that the court, like the Sixth Circuit, should construe the phrase ʺthe due administration of this titleʺ in the omnibus clause to include only a pending IRS action of which a defendant was aware. The court rejected defendant's argument and joined three of its sister circuits in concluding that section 7212(a)ʹs omnibus clause criminalizes corrupt interference with an official effort to administer the tax code, and not merely a known IRS investigation. The court also concluded that an omission may be a means by which a defendant corruptly obstructs or impedes the due administration of the Internal Revenue Code under section 7212(a). Finally, the court concluded that the district court did not commit procedural error by using the manner of calculating the tax loss and restitution amounts that it did, or by deciding not to apply a two‐level reduction to defendant's base offense level for acceptance of responsibility. Accordingly, the court affirmed the judgment. View "United States v. Marinello" on Justia Law

Plaintiffs, five entities incorporated in the British Virgin Islands, filed suit against the Republic of Ecuador and two of Ecuador's instrumentalities, CFN and Trust, claiming that an agency of the Republic of Ecuador unlawfully seized their property in Ecuador. The district court dismissed the complaint with prejudice for want of subject matter jurisdiction. The court affirmed and concluded that the presumption of legal separateness established by the Supreme Court in First National City Bank v. Banco Para el Comercio Exterior de Cuba, and respect for international comity compel the court to treat these legally separate entities as just that, unless plaintiffs can demonstrate that CFN and the Trust exercise “significant and repeated control over the [entities’] day‐to‐day operations.” Because plaintiffs have failed to clear this substantial bar, they fail to satisfy the requirements of Section 1605(a)(3) of the Foreign Sovereign Immunities Act (FSIA), 28 U.S.C. 1605(a)(3). Therefore, defendants are protected by sovereign immunity and the court need not consider the alternative bases for dismissal relied on by the district court or presented by defendants. View "Arch Trading Corp. v. Republic of Ecuador" on Justia Law