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

Plaintiff sued Defendants for violating his First and Fourteenth Amendment rights by recommending and imposing certain special conditions of post-release supervision that he contends is unconstitutional. The district court declined to grant Defendants summary judgment.   At issue in this appeal is whether a corrections professional who recommended that the Parole Board issue certain special conditions of release is absolutely or qualifiedly immune from claims challenging the constitutionality of those conditions and seeking monetary or injunctive relief.  The Second Circuit reversed and remanded. The court concluded that the Commissioner’s is absolutely immune from Plaintiff’s claims for damages because her challenged acts were quasi-judicial. The court did not address the Offender Rehabilitation Coordinator’s claim of absolute immunity but concluded that she is qualifiedly immune from Plaintiff’s damage claims because the challenged conditions were not clearly unlawful at the time she recommended them.   The court reasoned that to the extent Plaintiff is challenging the delegation of broad authority to the parole officer, the court noted that parole officers are statutorily authorized to impose special conditions. Plaintiff has not cited any law narrowing this authority. In sum, Plaintiff has failed to demonstrate that the parole officer’s recommendation of these case-specific conditions violated his clearly established rights. View "Peoples v. Leon, et al." on Justia Law

A putative class of over 12 million merchants brought this antitrust action under the Sherman Act against Visa U.S.A. Inc., MasterCard International Inc., and numerous banks that serve as payment-card issuers for those networks. Plaintiffs alleged that Visa and MasterCard adopted and enforced rules and practices relating to payment cards that had the combined effect of injuring merchants by allowing Visa and MasterCard to charge supracompetitive fees (known as “interchange fees”) on each payment card transaction. After nearly fifteen years of litigation, the parties agreed to a settlement of roughly $ 5.6 billion, which was approved by the district court over numerous objections. In so doing, $900,000 in service awards was granted to lead plaintiffs, and roughly $523 million was granted in attorneys’ fees. Appellants are various objectors who argue that the district court erred when it certified the class, approved the settlement, granted service awards and computed attorneys’ fees.   The Second Circuit affirmed in all respects the district court’s orders to the extent they constituted a final judgment, with the exception that the court directed the district court to reduce the service award to class representatives to the extent that its size was increased by time spent in lobbying efforts that would not increase the recovery of damages. The court made no ruling as to how damages should be allocated between branded oil companies and their branded service station franchisees, the reasonableness of the special master’s ultimate findings, or the legality of releasing an as-of-yet hypothetical future claim. View "In re Payment Card Interchange Fee and Merchant Discount Antitrust" on Justia Law

Federal Rule of Civil Procedure 60(b) authorizes relief from a final judgment, order, or proceeding based on, among other things, “fraud on the court.” Years after an adverse judgment and unsuccessful appeals in Mazzei v. The Money Store, 829 F.3d 260 (2d Cir. 2016) (“Mazzei I”), Plaintiff sought such relief in district court. He did so after a deposition in a separate, unrelated lawsuit cast doubt on the truthfulness of certain representations that Defendants’ counsel made to the court in Mazzei I. Defendants moved under Rule 12(b)(6) to dismiss the fraud on the court claim, which the district court granted. Plaintiff then moved for reconsideration, which was denied. Plaintiff then appealed these orders.   The Second Circuit affirmed. The court held that the district court correctly concluded that Plaintiff failed plausibly to plead a fraud on the court claim. The district court correctly reasoned that the conduct of which he complained had not impaired the court’s ability to fully and fairly adjudicate his case because the fraud alleged could have been redressed in Mazzei I. View "Mazzei v. The Money Store" on Justia Law

Pro se Plaintiff filed a whistleblower claim against his former employer, the Federal Energy Regulatory Commission, and his former supervisors in the United States District Court for the Southern District of New York. But before doing so, Plaintiff failed to exhaust his administrative remedies as required by the Whistleblower Protection Act of 1989 (WPA) and the Civil Service Reform Act of 1978. The district court thus dismissed the claim for lack of subject-matter jurisdiction.
The Second Circuit affirmed the district court’s dismissal of Plaintiff’s whistleblower claim under Federal Rule of Civil Procedure 12(b)(1) for failure to exhaust administrative remedies. Plaintiff did not file a complaint with the Office of Special Counsel or the Merit Systems Protection Board, as required by the CSRA. Instead, he went straight to federal court. The district court thus lacked “jurisdiction to entertain a whistleblower cause of action . . . in the first instance” because Plaintiff failed to follow the proper administrative process. Second, the court wrote that Plaintiff’s argument that his failure to exhaust should be excused on equitable grounds is meritless. The court noted that it has “no authority to create equitable exceptions to jurisdictional requirements.” And, in any event, Plaintiff offers no reason why he should be granted such an equitable exception. View "Chinniah v. Fed. Energy Regul. Comm'n" on Justia Law

Plaintiffs brought a class action under the Employee Retirement Income Security Act of 1974 ("ERISA"), arguing that Defendant Colgate-Palmolive Co. miscalculated residual annuities based on an erroneous interpretation of its retirement income plan and improperly used a pre-retirement mortality discount to calculate residual annuities, thereby working an impermissible forfeiture of benefits under ERISA. The district court granted summary judgment to Plaintiffs on these claims. Colgate appealed that order and the final judgment of the district court.   The Second Circuit affirmed. The court concluded that the text of the RAA is unambiguous and requires Colgate to calculate a member's residual annuity by subtracting the AE of LS from that member's winning annuity under Appendix C Section 2(b). Further, the court wrote that Colgate's "same-benefit" argument does not disturb our conclusion that the RAA's language is unambiguous. Because "unambiguous language in an ERISA plan must be interpreted and enforced in accordance with its plain meaning," the court affirmed the district court's grant of summary judgment to the class Plaintiffs as to Error 1. View "McCutcheon v. Colgate-Palmolive Co." on Justia Law

Plaintiff, a franchisor of tax preparation services, appeals from the district court’s denying its motion for preliminary injunctive relief to enforce, among other things, covenants not to compete or solicit former clients against Defendants, its former franchisees. On appeal, Plaintiff argues that the district court erroneously applied a heightened standard for obtaining preliminary injunctive relief, failed to credit an undisputed fact that Plaintiff had grounds to terminate the franchise agreements because Defendants were violating federal tax laws, and was compelled as a matter of law to find that it would suffer irreparable harm to its goodwill and client relationships in the absence of an injunction.   The Second Circuit affirmed the order denying preliminary relief. The court concluded that the district court applied the appropriate standard, permissibly credited Defendants’ denials that they violated federal tax laws, and acted well within its discretion in concluding that Plaintiff would not suffer irreparable harm. The court reasoned that nothing in the court’s precedents compels a district court to find irreparable harm to goodwill and client relationships in covenant-not-to-compete or -solicit cases simply because irreparable harm is often found in such cases. Instead, a plaintiff must present the district court with actual evidence. On that record, the court wrote it cannot conclude that the district court’s finding that Plaintiff had failed to make a strong showing of irreparable injury represented a clear error or exceeded the court’s discretion. View "JTH Tax d/b/a Liberty Tax Service v. Agnant" on Justia Law

After pleading guilty to first-degree conspiracy and second-degree murder in state court, Petitioner filed an unsuccessful federal habeas petition as well as an unsuccessful motion in state court to vacate his conviction. In this second habeas petition presently before the Second Circuit, Petitioner argued that newly discovered evidence shows that he is actually innocent of the murder charge. The district court dismissed the petition as both procedurally barred and lacking merit. Although Petitioner’s petition was filed after the one-year time limit in 28 U.S.C. Section 2244(d), he argued, based on Schlup v. Delo, 513 U.S. 298 (1995), for an equitable exception to the time limit based on a sufficient   The Second Circuit affirmed. The court held that Petitioner’s claim is time-barred because he failed to show that it is “more likely than not that no reasonable juror would have convicted him.” The court reasoned that the state post-conviction court’s factual findings, including determinations of witness credibility, are entitled to the presumption of correctness under Section 2254(e)(1). Here, the court agreed with the district court that Petitioner has not satisfied his burden of showing by clear and convincing evidence that the state court’s factual findings are wrong. Nor has Petitioner otherwise demonstrated that it is “more likely than not that no reasonable juror would have found [him] guilty beyond a reasonable doubt.” Because Petitioner’s petition fails to satisfy the high threshold standard set forth in Schlup for a gateway claim of actual innocence, the court concluded that it is untimely. View "Cosey v. Lilley" on Justia Law

Defendant appealed a judgment against him following a jury trial where he was convicted of one count of conspiring to illegally donate  monies to a political campaign and one count of aiding and abetting over $25,000 of such donations. Defendant argued that the district court erred in giving the standard jury instruction on willfulness: that “a person acts ‘willfully’ when he acts with a ‘bad purpose’ to disobey or disregard the law. Further, Defendant challenged the district court’s refusal to 1) instruct the jury that for count one, a co-conspirator must knowingly and willfully join the conspiracy with the “intent of achieving [the alleged conspiracy’s] unlawful objectives, namely violation of the federal election laws;” and 2) to provide e a good faith defense charge.   The Second Circuit affirmed. The court explained it is not necessary for the government to prove that the defendant was aware of the specific provision of the law that he is charged with violating.” Further, the district court charged the jury that the government needed to prove  Defendant acted willfully, knowingly, and voluntarily. As the district court aptly noted, “to have found that Defendants acted willfully, the jury had to conclude beyond a reasonable doubt that they intentionally did something that the law forbids, the opposite of good faith.” Where, as here, the district court correctly instructed the jury as to knowledge and willfulness and the defendant’s theory was thus “effectively presented elsewhere in the charge,” its refusal to provide a separate “good faith defense” instruction is not reversible error. View "United States v. Kukushkin" on Justia Law

The Republic of Turkey appealed the September 7, 2021, district court judgment. The court concluded that Turkey failed to prove its ownership of a six-thousand-year-old marble idol. The district court determined that Turkey’s claims of replevin and conversion failed and entered a declaratory judgment that all rights, title, and interest to the idol vested in Defendant. In addition, the district court held that Defendants were entitled to judgment because they established the equitable defense of laches. On appeal, Turkey argued the district court misconstrued fundamental principles of New York law in each of these holdings.   The Second Circuit affirmed, concluding that Turkey prejudiced Defendants by unreasonably delaying this action. The court explained that because Turkey had reason to know the Stargazer was its cultural patrimony in the 1990s, it had reason to investigate the artifact and assert its claim to ownership. This is not to say that sovereign nations have a standing obligation to investigate the potential theft of their dispersed artifacts. But Turkey sat on its hands despite signals from its own Ministry of Culture that the Stargazer was in New York City. Turkey’s failure to bring its claim (or even investigate it) until 2017 was unreasonable. View "Republic of Turkey v. Christie's Inc., et al." on Justia Law

Relevent Sports, LLC, a U.S.-based soccer promoter, alleges that the Fédération Internationale de Football Association (popularly known as FIFA) and the United States Soccer Federation, Inc. adopted and enforced a geographic market division policy in 2018 that unlawfully prohibits soccer leagues and teams from playing official season games outside of their home territory. Relevent claims that the 2018 policy represents an agreement among direct competitors to restrict competition in violation of federal antitrust laws. The district court concluded that Relevent failed to allege that the challenged anticompetitive conduct stemmed from a prior agreement to enter into the 2018 policy.   The Second Circuit vacated and remanded. The court explained that a plaintiff challenging an association policy or rule that governs the conduct of the members’ separate businesses need not allege an antecedent “agreement to agree.” Because Relevent challenges the allegedly monopolistic 2018 Policy directly, it has adequately alleged concerted action. The Sherman Antitrust Act and the Clayton Antitrust Act require no further allegations of an agreement to engage in concerted action for Relevent’s complaint to survive a motion to dismiss. View "Relevent Sports v. U.S. Soccer Federation" on Justia Law