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

Following a jury trial Defendant was convicted of numerous crimes related to his leadership of two organizations, a self-styled executive coaching and self-help organization called NXIVM and a secret society called DOS. On appeal, Defendant challenged his convictions for sex trafficking crimes. At the center of his appeal is the meaning of “commercial sex act,” which Section 1591 defines as “any sex act, on account of which anything of value is given to or received by any person.” He contended that evidence the Government submitted at trial showing that individuals received benefits, such as privileged positions within an organization, is insufficient to sustain his sex trafficking convictions.   The Second Circuit affirmed, concluding that Section 1591 requires neither that a “[]thing of value” have a monetary or financial component nor that the sexual exploitation is conducted for profit. Accordingly, the court affirmed the October 30, 2020 judgment as it concerns Defendant’s sex trafficking offenses: the sex trafficking conspiracy (Count 5), the sex trafficking of N  (Count 6), the attempted sex trafficking of J (Count 7), and the racketeering act of sex trafficking of N (Act 10A).   The court further explained that the phrase “anything of value” need not have a monetary or financial component, and the actionable sexual exploitation need not have been conducted for profit. The jury was neither misinformed nor misled. Moreover, the court concluded that the evidence was strong enough to reach a jury and that Defendant was afforded at least “the minimum that due process requires.”. View "United States v. Raniere" on Justia Law

Plaintiff brought this putative class action against more than twenty banks and brokers, alleging a conspiracy to manipulate two benchmark rates known as Yen-LIBOR and Euroyen TIBOR. He claimed that he was injured after purchasing and trading a Euroyen TIBOR futures contract on a U.S.-based commodity exchange because the value of that contract was based on a distorted, artificial Euroyen TIBOR. Plaintiff brought claims under the Commodity Exchange Act (“CEA”), and the Sherman Antitrust Act, and sought leave to assert claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”).   The district court dismissed the CEA and antitrust claims and denied leave to add the RICO claims. Plaintiff appealed, arguing that the district court erred by holding that the CEA claims were impermissibly extraterritorial, that he lacked antitrust standing to assert a Sherman Act claim, and that he failed to allege proximate causation for his proposed RICO claims.   The Second Circuit affirmed. The court explained that fraudulent submissions to an organization based in London that set a benchmark rate related to a foreign currency—occurred almost entirely overseas. Here Plaintiff failed to allege any significant acts that took place in the United States. Plaintiff’s CEA claims are based predominantly on foreign conduct and are thus impermissibly extraterritorial. As such, the district court also correctly concluded that Plaintiff lacked antitrust standing because he would not be an efficient enforcer of the antitrust laws. Finally, Plaintiff failed to allege proximate causation for his RICO claims. View "Laydon v. Coöperatieve Rabobank U.A., et al." on Justia Law

The United States appealed the district court’s judgment sentencing Defendant to 60 months' imprisonment following his plea of guilty to bank robbery, entering the banks with intent to commit larceny, bank larceny, and interstate communication of a threat to injure. The district court declined to sentence Defendant as a career offender under Sentencing Guidelines Section 4B1.1, ruling that a predicate advanced by the government for the enhancement—Defendant’s 2002 conviction of third-degree attempted criminal sale of a  controlled substance under New York Penal Law Sections 220.39(1) and 110--was not a proper predicate because New York's controlled substances schedule included naloxegol, which was removed from the federal controlled substances schedules. On appeal, the government contended that the district court misinterpreted the Guidelines by failing to compare the New York schedule to the federal schedules as they existed at the time of Defendant’s state-law conviction in 2002.   The Second Circuit affirmed. The court found no merit in the government’s contention. The court explained that while there is much to be said for looking to federal criminal law as it stood at the time Defendant engaged in the conduct that constitutes his present offense, rather than at the time of sentencing for his present offense, the court need not decide between the two in this case because either leads to affirmance. Federal criminal law--both at the time of this conduct and at the time of sentencing for it--was narrower than the state law that governed Defendant’s 2002 conviction. View "USA v. Gibson" on Justia Law

Defendant, indicted for participating in a successful murder-for-hire scheme, was ordered detained pending trial. Defendant appealed the district court’s decision not to reopen his detention hearing under 18 U.S.C. Section 3142(f) after the U.S. Department of Justice confirmed that it would not seek the death penalty against him.   The Second Circuit affirmed the district court’s decision not to reopen Defendant’s detention hearing and denied Defendant’s motion for bail. The court concluded that the district court did not abuse its discretion in declining to revisit its detention ruling. In its initial detention determination, the district court had assumed that the death penalty would not be sought, and so the government’s later confirmation of that point did not materially change the detention calculus. Moreover, the district court’s consideration of the strength of the evidence that Defendant committed the charged offense, as part of its assessment of whether Defendant posed a danger to the community or a risk of flight, was consistent with the Bail Reform Act and did not undermine the presumption of innocence, which is a trial right. View "United States v. Zhang" on Justia Law

Plaintiff alleged that a participant loan program that Teachers Insurance and Annuity Association of America (TIAA) offered to her retirement plan is a prohibited transaction under the Employee Retirement Income Security Act of 1974 (ERISA). After ruling that Haley’s suit could proceed against TIAA as a nonfiduciary under ERISA, the district court certified a class of employee benefit plans whose fiduciaries contracted with TIAA to offer loans that were secured by a participant’s retirement savings. TIAA argues that the district court erred when it found that common issues predominated over individual ones without addressing the effect of ERISA’s statutory exemptions on liability classwide and without making any factual findings as to the similarities of the loans.   The Second Circuit vacated the district court’s decision holding that the predominance inquiry of Federal Rule of Civil Procedure 23(b)(3) requires that a district court analyze defenses, and the court did not do so here. Further, because the predominance inquiry of Federal Rule of Civil Procedure 23(b)(3) requires that a district court analyze defenses, and the court did not do so here, the district court did not analyze the exemptions, it also did not engage with the evidence that TIAA submitted to substantiate the purported variations among the plans. A district court cannot simply “take the plaintiff’s word that no material differences exist.” View "Haley v. TIAA" on Justia Law

In 2014, Plaintiff, then a women’s soccer player at the University of Connecticut (“UConn”) and recipient of a one-year athletic scholarship, raised her middle finger to a television camera during her team’s post-game celebration after winning a tournament championship. Although she initially was suspended from further tournament games for that gesture, Plaintiff was ultimately also punished by UConn with a mid-year termination of her athletic scholarship. She brought this lawsuit against UConn (through its Board of Trustees) and several university officials alleging, inter alia, violations of her First Amendment and procedural due process rights under 42 U.S.C. Section 1983, as well as a violation of Title IX of the Education Amendments Act of 1972 (“Title IX”), in connection with the termination of her scholarship. On appeal, Plaintiff challenges the decision of the district court granting Defendants’ motion for summary judgment on those claims.   The Second Circuit affirmed the district court’s grant of summary judgment as to Plaintiff's procedural due process and First Amendment claims and vacated the district court’s judgment to the extent it granted summary judgment to UConn on the Title IX claim. The court explained Plaintiff has put forth sufficient evidence, including a detailed comparison of her punishment to those issued by UConn for male student-athletes found to have engaged in misconduct, to raise a triable issue of fact as to whether she was subjected to a more serious disciplinary sanction, i.e., termination of her athletic scholarship, because of her gender. View "Radwan v. Manuel" on Justia Law

International Flavors & Fragrances Inc. (“IFF”), a U.S.-based seller of flavoring and fragrance products, acquired Frutarom Industries Ltd. (“Frutarom”), an Israeli firm in the same industry. Leading up to the merger, Frutarom allegedly made material misstatements about its compliance with anti-bribery laws and the source of its business growth. Plaintiffs, who bought stock in IFF, sued Frutarom, alleging that those misstatements violated Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder.   The Second Circuit affirmed. The court held that Plaintiffs here lack standing to sue based on alleged misstatements about Frutarom because they never bought or sold shares of Frutarom. The court explained that Section 10(b) standing does not depend on the significance or directness of the relationship between two companies. Rather, the question is whether Plaintiff bought or sold the securities about which the misstatements were made. Here, Plaintiffs did not purchase the securities about which misstatements were made, so they did not have standing to sue under Section 10(b) or Rule 10b-5. View "Menora Mivtachim Ins. Ltd. v. Frutarom Indus. Ltd." on Justia Law

Appellant, proceeding pro se and under the pseudonym, “Publius Publicola,” appeals from the district court’s judgment (1) denying his motion to proceed under a pseudonym and (2) dismissing his claims under 42 U.S.C. Section 1983 against various state and municipal officials and agencies for actions they took in response to his efforts to seal records pertaining to criminal cases from his youth.   After the Court ordered him to refile his briefs under his real name, with leave to request filing under seal should circumstances justify the filing of a redacted version on the public docket, Appellant submitted a letter indicating his refusal to comply with the Court’s order.   On appeal, the Second Circuit was tasked with deciding (1) whether a litigant may comply with Federal Rule of Appellate Procedure 32(d) – which requires that “every brief, motion, or other paper filed with the Court of Appeals must be signed by the party filing the paper” – by signing his submissions under a pseudonym; and (2) whether a pro se appellant’s failure to comply with that requirement warrants dismissal of his appeal.   The Second Circuit dismissed the appeal. The court concluded that, because papers signed under a pseudonym cannot adequately “ensure that a readily identifiable attorney or party takes responsibility for every paper,” they do not satisfy Rule 32(d). The court further concluded that under Rule 3(a)(2) and our precedents emphasizing the obligation of pro se litigants to comply with Court orders, dismissal is warranted here. View "Publicola v. Lomenzo" on Justia Law

Plaintiff, formerly a tenured theology teacher at a Roman Catholic high school in Staten Island, appealed from the dismissal of his complaint against his labor union, the Federation of Catholic Teachers (the “FCT”), for allegedly breaching its duty of fair representation under the National Labor Relations Act (the “NLRA”) as amended by the Labor Management Relations Act (the “LMRA”), and for assorted violations under the New York State and New York City human rights laws. The district court dismissed Plaintiff’s duty-of-fair representation claim with prejudice for lack of subject-matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1), reasoning that the NLRA and LMRA are inapplicable to disputes between parochial-school teachers and their labor unions under NLRB v. Catholic Bishop of Chicago, 440 U.S. 490 (1979).   The Second Circuit affirmed. The court concluded, as a matter of first impression, that Catholic Bishop does preclude Plaintiff’s duty-of-fair-representation claim, but that dismissal was warranted under Rule 12(b)(6) for failure to state a claim on which relief could be granted, rather than for lack of federal subject-matter jurisdiction under Rule 12(b)(1). The court also concluded that Plaintiff has abandoned any challenge to the dismissal of his state and municipal-law claims. View "Jusino v. Fed'n of Cath. Tchrs., Inc." on Justia Law

Petitioner, a native and citizen of Honduras, sought review of two decisions of the Board of Immigration Appeals (“BIA”) denying asylum, withholding of removal, and relief under the Convention Against Torture (“CAT”). Specifically, Petitioner claimed that her family had been threatened, kidnapped, and beaten by members of the Mara 18 gang while a local Honduran police officer was present. Garcia-Aranda sought asylum and withholding of removal, arguing that the gang had persecuted her because she was a member of the Valerio family, which ran its own drug trafficking ring in Garcia-Aranda’s hometown. She also sought protection under CAT based on an asserted likelihood of future torture at the hands of the gang with the participation or acquiescence of the local Honduran police.Petioner's CAT petitioner alleged that she had been kidnapped while local police were present. These allegations required the BIA to inquire, whether it was more likely than not (1) that the gang will intentionally inflict severe pain or suffering to intimidate or coerce her, including meeting all the harm requirements for torture under section 1208.18(a); and (2) that local police acting under color of law will either (i) themselves participate in those likely gang actions or (ii) acquiesce in those likely gang actions.However, neither of these inquiries was made below. Thus, the Second Circuit reversed in part, remanding to the BIA for further proceedings. View "Garcia-Aranda v. Garland" on Justia Law