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

A multi-district antitrust class action was brought by plaintiffs against defendants, entities incorporated under the laws of China, alleging that defendants conspired to fix the price and supply of vitamin C sold to U.S. companies on the international market in violation of Section 1 of the Sherman Act, 15 U.S.C. 1, and Sections 4 and 16 of the Clayton Act, 15 U.S.C. 4, 16. Defendants challenge the district court's denial of their initial motion to dismiss, denial of a subsequent motion for summary judgment, and, after a jury trial, an entry of judgment awarding plaintiffs $147 million in damages and enjoining defendants from engaging in future anti-competitive behavior. The court held that the district court erred in denying defendants' motion to dismiss. In this case, because the Chinese Government filed a formal statement in the district court asserting that Chinese law required defendants to set prices and reduce quantities of vitamin C sold abroad, and because defendants could not simultaneously comply with Chinese law and U.S. antitrust laws, the principles of international comity required the district court to abstain from exercising jurisdiction in this case. Accordingly, the court vacated the judgment, reversed the district court's order denying defendants' motion to dismiss, and remanded for further proceedings. View "In Re: Vitamin C Antitrust Litig." on Justia Law

Plaintiffs, offenders who had been subject to post-release supervision (PRS) in violation of Earley v. Murray, filed suit against defendants for the actions they took in violation of Earley I and moved for summary judgment. The district court granted the motion and defendants appealed. The court agreed with the district court that defendants did not make an objectively reasonable effort to relieve plaintiffs of the burdens of those unlawfully imposed terms after they knew it had been ruled that the imposition violated federal law. The issue regarding the motion to deem the appeal frivolous is moot because defendants obtained a stay of further proceedings in the district court. Accordingly, the court affirmed the judgment and remanded for further proceedings. View "Betances v. Fischer" on Justia Law

Plaintiffs, individually and on behalf of their respective daughters J.C. and T.H., filed suit against District Defendants and NYSED Defendants. Plaintiffs claim that the district court erred in concluding that plaintiffs did not make a prima facie showing of discrimination against District Defendants pursuant to the Americans with Disabilities Act (ADA), 42 U.S.C. 12101 et seq., and Section 504 of the Rehabilitation Act (Section 504), 29 U.S.C. 794 et seq. In this case, plaintiffs' disparate impact claim relies exclusively on data concerning students with disabilities under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400 et seq. The court concluded that, aside from their receipt of special education services, the record is devoid of any evidence as to whether the students included in the data qualify as disabled under the ADA or Section 504. Because, as a matter of law, an IDEA disability does not necessarily constitute a disability under the ADA or Section 504, the court concluded that plaintiffs’ data does not establish “a significantly adverse or disproportionate impact on persons of a particular type produced by the defendant’s facially neutral acts or practices.” Therefore, the court concluded that plaintiffs failed to make their prima facie showing that District Defendants’ academic intervention services (AIS) policy adversely impacted individuals protected by the ADA and Section 504. The court concluded that the district court properly entered summary judgment in favor of District Defendants as to the ADA and Section 504 claims. Likewise, the district court properly entered summary judgment on their derivative Section 1983 claim against the District Defendants. The court affirmed the judgment. View "B.C. v. Mount Vernon Sch. Dist." on Justia Law

The principal issue in this appeal is whether the district court correctly determined the measure of compensation due to Noteholders, represented by BNY Melon, arising from the underpayment to the Noteholders by Chesapeake in connection with Chesapeake's early redemption of the Notes. The court concluded, substantially for the reasons set forth in the district court's thorough opinion, that the district court correctly determined the measure of compensation due to the Noteholders in the circumstances presented. In this case, applying New York law, Section 1.7 of the Supplemental Indenture - a contract Chesapeake does not contend was invalid or unenforceable - dictates the Noteholders’ recovery arising from Chesapeake’s underpayment for its May 13, 2013 redemption. Because Chesapeake completed its redemption on May 13, 2013, it owed the Noteholders the Make‐Whole Price for that redemption, pursuant to Section 1.7(c), and it breached the Supplemental Indenture by paying only the At‐Par Price. The court agreed with the district court that the correct damages award was the difference between the At‐Par Price and the Make‐Whole Price, plus prejudgment interest. To hold otherwise would frustrate the Noteholders’ legitimate expectations regarding their rights under the Supplemental Indenture. Furthermore, Chesapeake was similarly on notice at all relevant times that the district court could require it to pay the Make‐Whole Price for its May 13, 2013 redemption. Finally, the court rejected Chesapeake’s contention that, even if the district court properly awarded breach‐of‐contract damages, it erred by awarding compensation that allowed the Noteholders to recoup in excess of the value of the Notes before the redemption. Accordingly, the court affirmed the judgment. View "Chesapeake Energy v. Bank of New York Mellon Trust" on Justia Law

Plaintiffs, students who are currently enrolled in the District's public school system, filed suit alleging that a majority of the School Board are of the Orthodox/Hasidic Jewish faith or are sympathetic to the interests of the Orthodox/Hasidic Jewish community. Plaintiffs claim that the Board Defendants have promoted the Hasidic Jewish faith in violation of the First Amendment. Plaintiffs argue that defendants' unconstitutional actions contributed to the defunding of the public school system, which in turn injured plaintiffs by depriving them of educational opportunities and by damaging their psychological and mental well‐being.The court held that plaintiffs lack standing to assert an Establishment Clause claim against defendants because they are only indirectly affected by the conduct alleged to violate the Establishment Clause. Therefore, it is unnecessary to decide whether defendants are entitled to absolute or qualified immunity. View "Montesa v. Schwartz" on Justia Law

Defendant, a marketer of over-the-counter pregnancy test kits, was found liable for false advertising in violation of section 43(a) of the Lanham Act, 15 U.S.C. 1125(a). Plaintiff, a leading competing marketer of over-the-counter pregnancy test kits, claimed that, in informing the user as to how long her pregnancy had been in effect, defendant’s product communicated the false impression that it uses the same metric and gives the same number of weeks of pregnancy as a medical professional would do. The district court found in favor of plaintiff and imposed an injunction on defendant. The court agreed with the district court that plaintiff's Lanham Act claim is not precluded by the Food, Drug, and Cosmetic Act, 21 U.S.C. 301 et seq., claim; there is no error in the district court's finding of falsity in defendant's Launch Package and advertising messages associated with it by reason of their unambiguous implication that defendant’s product measures weeks-pregnant in a manner that is consistent with the measurement used by doctors; agreed with the district court's finding, based on survey evidence, that the message communicated by the Revised Package was impliedly false; there was no error in the district court’s findings that the falsity was material and injurious to plaintiff; and the court did not abuse its discretion in issuing the injunction. Accordingly, the court affirmed the judgment. View "Church & Dwight Co. v. SPD Swiss Precision Diagnostics" on Justia Law

Marvel challenges the tax court's grant of summary judgment for the Commissioner. At issue is whether Marvel's consolidated group must reduce its consolidated net operating loss (CNOL) under I.R.C. 108(b)(2)(A) by the total amount of the groupʹs previously excluded cancellation of indebtedness income under a ʺsingle entityʺ approach as opposed to determining the amount of CNOL apportionable to each member and applying section 108(b)(2)(A) on a member‐by‐member basis. Applying de novo review, the court affirmed the tax court's application of a ʺsingle entityʺ approach to reduce the CNOL, and finding of deficiencies in income tax due for the taxable years 2003 and 2004 in the amounts of $2,144,756 and $14,453,653, respectively. View "Marvel Entm't, LLC v. Comm'r" on Justia Law

Time Warner filed suit alleging a violation of the Sherman Act, 15 U.S.C. 1 et seq., in the tying of certain premium cable television services to the leasing of ʺinteractiveʺ set‐top cable boxes. The district court dismissed two iterations of the complaint, including the Third Amended Complaint, the operative complaint for the purposes of this opinion. The court held that the Third Amended Complaint fails to adequately plead facts that, if proven, would establish that:  (i) the set‐top cable boxes and the premium programming they transmit are separate products for the purposes of antitrust law; and (ii) Time Warner possesses sufficient market power in the relevant markets to establish an illegal tie‐in. Accordingly, the court affirmed the judgment. View "In re Set-Top Cable Television Box Antitrust Litig." on Justia Law

Defendant was convicted of participating in a robbery conspiracy (Count One) and using and carrying firearms during and in relation to the robbery conspiracy (Count Two). The district court cited Michigan v. Long and determined after a hearing on defendant's motion to suppress evidence of the gun that the officers possessed “a reasonable belief based on ‘specific and articulable facts’ . . . that the suspect [was] dangerous and the suspect [might] gain immediate control of weapons,” entitling them to conduct the search. The court concluded that, on the record, the events identified as leading to the search of defendant's car and recovery of the gun introduced as evidence at trial are, without more, not enough to justify a full protective search of the passenger compartment of a car based on immediate danger to the officers involved or to others. Accordingly, the court reversed and remanded. View "United States v. Cunningham" on Justia Law

Defendant appealed his conviction of wire fraud, access device fraud, aggravated identity theft, and money laundering in connection with a scheme to make unauthorized credit card charges to the credit cards of customers of defendant's digital retail company. The court concluded that the district court did not err in denying defendant's motion to dismiss the Superseding Indictment for spoliation of evidence where, pursuant to Arizona v. Youngblood, there is no evidence of the government's bad faith. The court joined its sister circuits and held that wire fraud does not require convergence between the parties intended to be deceived and those whose property is sought in a fraudulent scheme. Therefore, the district court did not err in denying defendant's motion to dismiss the wire fraud counts in the Superseding Indictment for failure to plead a legally cognizable scheme. That the Superseding Indictment alleges that defendant's misrepresentations were directed at acquiring banks and others, but that the credit card holders were the intended victims of the scheme, is irrelevant. Accordingly, the court affirmed the judgment. View "United States v. Greenberg" on Justia Law