Justia Civil Procedure Opinion Summaries

Hamilton Reserve Bank, the beneficial owner of $250,490,000 in Sri Lankan government bonds, sued the Democratic Socialist Republic of Sri Lanka in the United States District Court for the Southern District of New York after Sri Lanka defaulted on the bonds. Over a year later, Jesse Guzman, Ultimate Concrete LLC, and Intercoastal Finance Ltd. sought to intervene, claiming Hamilton defrauded them by using their deposited funds to purchase the bonds and then refusing to allow them to withdraw their money.The district court denied the motion to intervene, holding that it lacked jurisdiction over the intervenors' claims. The court found that the claims did not derive from a "common nucleus of operative fact" with Hamilton's breach of contract claim against Sri Lanka, as required for supplemental jurisdiction under 28 U.S.C. § 1367(a).The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the district court applied the correct "common nucleus of operative fact" standard for evaluating supplemental jurisdiction under Section 1367(a). The court concluded that the intervenors' claims, which involved a banking dispute with Hamilton, did not share substantial factual overlap with Hamilton's breach of contract claim against Sri Lanka. Therefore, the district court correctly determined it lacked jurisdiction over the intervenors' claims and denied their motion to intervene. View "Hamilton Reserve Bank v. Sri Lanka" on Justia Law

Natasha Knox, a Black woman of Jamaican descent, worked as a customer service attendant at three Clean Rite laundromats in the Bronx from December 2018 until her termination in April 2019. She alleged that her supervisors, Cecilia Ashmeade and Kenneth Ferris, made derogatory comments about her race and national origin, and that Clean Rite failed to accommodate her disability following a thumb injury. Knox also claimed she was not paid for extra shifts worked at other locations and was wrongfully terminated after reimbursing herself for taxi fare from the cash register, which she claimed was permitted.The United States District Court for the Southern District of New York granted summary judgment in favor of Clean Rite, dismissing Knox’s claims of discriminatory and retaliatory termination, hostile work environment, refusal to accommodate her disability, and unpaid wages. The district court found that Knox had not provided sufficient evidence to support her claims. Knox’s motion to strike the defendants’ answer and request for default judgment against Ashmeade and Ferris, who had failed to appear, was denied as moot.The United States Court of Appeals for the Second Circuit reviewed the case de novo and found that Knox had presented sufficient evidence to survive summary judgment on all her claims. The court noted that evidence such as Knox’s testimony and sworn affidavit could lead a reasonable jury to find in her favor. The court vacated the district court’s judgment and remanded the case for further proceedings on each of Knox’s claims. The claims against Ashmeade and Ferris were reinstated for the district court to reconsider Knox’s motion to strike their answer and for default judgment. View "Knox v. CRC Management Co." on Justia Law

In 2020, Article 13 LLC filed a quiet title action against LaSalle National Bank Association (now U.S. Bank) to discharge a mortgage as time-barred, arguing that the statute of limitations had expired since a foreclosure action was commenced in 2007. U.S. Bank contended that the statute of limitations had not expired because the 2007 foreclosure action was invalid to accelerate the mortgage debt. The district court found a disputed issue of material fact regarding the validity of the 2007 foreclosure action and denied both parties' motions for summary judgment.Following the district court's ruling, New York enacted the Foreclosure Abuse Prevention Act (FAPA), which bars the defense of the invalidity of prior accelerations of mortgages in quiet title actions. Article 13 LLC moved for reconsideration, and the district court applied FAPA retroactively, granting summary judgment in favor of Article 13 LLC. U.S. Bank appealed, arguing that FAPA should not be applied retroactively and that such retroactivity would be unconstitutional under both the New York and U.S. Constitutions.The United States Court of Appeals for the Second Circuit reviewed the case and determined that the questions of FAPA's retroactivity and its constitutionality under the New York Constitution were novel and essential to the resolution of the appeal. Consequently, the Second Circuit certified two questions to the New York Court of Appeals: whether Section 7 of FAPA applies to foreclosure actions commenced before the statute's enactment, and whether FAPA's retroactive application violates substantive and procedural due process under the New York Constitution. The Second Circuit deferred its resolution of the appeal pending the New York Court of Appeals' response. View "Article 13 LLC v. Lasalle Nat'l Bank Ass'n" on Justia Law

Three former employees of Amazon filed a class action complaint seeking payment for straight-time and overtime wages under Connecticut’s wage laws for time spent undergoing mandatory security screenings after clocking out. The employees argued that this time should be compensable under state law. Amazon required employees to pass through security screenings when exiting the secured area of their fulfillment centers, but not upon entry. The screenings involved metal detectors and varied based on the personal belongings employees carried. Employees were not compensated for the time spent in these screenings.The United States District Court for the District of Connecticut granted summary judgment in favor of Amazon, dismissing the employees' complaint. The court relied on the United States Supreme Court’s decision in Integrity Staffing Solutions, Inc. v. Busk, which held that time spent in mandatory security screenings is not compensable under federal law. The employees appealed the decision and moved to certify a question to the Connecticut Supreme Court regarding the applicability of Connecticut’s wage laws to their case.The United States Court of Appeals for the Second Circuit reviewed the case and determined that the question of whether Connecticut’s wage laws require compensation for time spent in mandatory security screenings is unresolved. The court decided to certify this question to the Connecticut Supreme Court for a definitive resolution. Additionally, the court asked the Connecticut Supreme Court to address whether a de minimis exception applies to such compensable time and, if so, what amount of time is considered de minimis. The Second Circuit reserved its decision and dismissed the employees' motion to certify as moot, pending the Connecticut Supreme Court's response. View "Del Rio v. Amazon.com.DECE, LLC" on Justia Law

Anna Gristina, the plaintiff-appellant, sought to unseal transcripts related to her 2012 New York State criminal conviction for promoting prostitution. Nearly ten years after her guilty plea, she filed motions before Justice Juan Merchan, requesting the unsealing of several transcripts. After her motion was partially denied and while the decision was under review by higher state courts, Gristina filed a federal suit under 42 U.S.C. § 1983 against Justice Merchan and New York District Attorney Alvin Bragg, seeking declaratory and injunctive relief to unseal three specific transcripts.The United States District Court for the Southern District of New York dismissed Gristina's complaint for lack of subject-matter jurisdiction, citing the Younger abstention doctrine. The district court concluded that it was required to abstain from exercising jurisdiction because the state court order denying the unsealing of transcripts was a pending matter in New York State court involving a judicial function. Alternatively, the district court held that the Rooker-Feldman doctrine prohibited it from reviewing the state court order as it was a final state court judgment.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the district court properly abstained from exercising jurisdiction under the Younger abstention doctrine. The court found that the state court's order denying the unsealing of transcripts, which was still under review by higher state courts at the time Gristina filed her federal suit, was a pending civil proceeding uniquely in furtherance of the state court's ability to perform its judicial functions. Therefore, Younger abstention was required, and the district court's dismissal of the complaint was affirmed. View "Gristina v. Merchan" on Justia Law

In 2020, the Vermont Superior Court transitioned to electronic filing and adopted a policy that delayed public access to newly filed civil complaints until a court clerk reviewed them for compliance with technical requirements and the absence of unredacted confidential information. Plaintiffs, consisting of news and media organizations, challenged this practice, claiming it violated their First Amendment right of access to court documents.The United States District Court for the District of Vermont held a bench trial and ruled in favor of the Plaintiffs. The court found that Vermont’s pre-access review process violated the First Amendment and issued a permanent injunction preventing the Defendants from withholding complaints until the completion of the review process. The Defendants, administrators and clerks of the Vermont Superior Court, appealed the decision.The United States Court of Appeals for the Second Circuit reviewed the case and agreed with the district court that Vermont’s practice, as reviewed, violated the Plaintiffs’ First Amendment rights. However, the appellate court found that the terms of the permanent injunction were not supported by the court’s findings. The Second Circuit affirmed the district court’s judgment to the extent it found the practice violated the First Amendment but vacated the permanent injunction. The case was remanded for further proceedings to reconsider the terms of an appropriate injunction. The court also addressed and rejected the Defendants' arguments regarding abstention and mootness. View "Courthouse News Service v. Corsones" on Justia Law

Diego Penaranda Arevalo, a citizen of Ecuador unlawfully present in the United States, sought cancellation of a removal order under 8 U.S.C. § 1229b(b)(1). An immigration judge denied his application, and the Board of Immigration Appeals (BIA) affirmed. Penaranda then petitioned the United States Court of Appeals for the Second Circuit for review. While this petition was pending, Penaranda filed a motion with the BIA to terminate or remand his removal proceedings, arguing that his removal order was invalid because his original notice to appear did not include the date and time of his initial hearing, as required by 8 U.S.C. § 1229(a). The BIA denied the motion, reasoning that Penaranda had forfeited any objection based on the time-and-place requirement by failing to raise it in a timely manner.The Second Circuit reviewed both cases together. The court reaffirmed its decision in Banegas Gomez v. Barr that the time-and-place requirement is a non-jurisdictional rule and held that the BIA did not abuse its discretion in concluding that Penaranda forfeited his objection. Therefore, the court denied that petition.In his first petition, Penaranda challenged the immigration judge’s finding that he gave false testimony for the purpose of obtaining an immigration benefit, which led to the conclusion that he failed to establish good moral character and was therefore ineligible for the requested relief. The Second Circuit found that it lacked jurisdiction to review Penaranda’s petition insofar as it contested whether and why he testified falsely, as these are unreviewable questions of fact under 8 U.S.C. § 1252(a)(2)(B)(i). Penaranda also argued that the immigration judge held him to a higher burden of proof than required. The court found that this argument, while a question of law, failed on the merits. Accordingly, the court dismissed in part and denied in part Penaranda’s first petition. View "Penaranda Arevalo v. Bondi" on Justia Law

Dr. Ahmed Diaa Eldin Ali Hussein, a dual citizen of Egypt and the United States, sought to enforce an Egyptian administrative court ruling and a related ministerial decree in the United States. These rulings purportedly entitled him to compensation for the expropriation of his shares in the SIMO Middle East Paper Company by the Egyptian government in the 1990s. Hussein filed an enforcement action in New York State court against Dr. Mohamed Ahmed Maait, the Egyptian Minister of Finance, in his official capacity.The case was removed to the United States District Court for the Southern District of New York by Maait, albeit after the 30-day deadline for removal. The District Court found that Egypt was the real party in interest and allowed the late removal under Section 1441(d) of the U.S. Code, which permits enlargement of the removal period for cause. The court then dismissed the suit under Rule 12(b)(1) for lack of subject matter jurisdiction, concluding that Egypt was immune under the Foreign Sovereign Immunities Act (FSIA) and that no exceptions to this immunity applied.On appeal, the United States Court of Appeals for the Second Circuit affirmed the District Court's decision. The appellate court agreed that Egypt was the real party in interest, as Hussein's claims were fundamentally against the Egyptian government and sought compensation from the public treasury. The court also upheld the District Court's finding of cause to extend the removal period, noting the lack of prejudice to Hussein and the procedural challenges faced by Maait in securing U.S. counsel. Finally, the appellate court determined that Hussein had waived any argument regarding exceptions to FSIA immunity by not raising them on appeal. Thus, the dismissal for lack of jurisdiction was affirmed. View "Hussein v. Maait" on Justia Law

Richard Hoffer filed a lawsuit against the City of Yonkers, the City of Yonkers Police Department, and several individual police officers under 42 U.S.C. § 1983, claiming that the officers used excessive force during his arrest. The case went to trial, and the jury returned a verdict in favor of the officers. Hoffer appealed the district court's decision, specifically challenging the court's denial of his request for an adverse inference instruction due to a missing video of him being tased.The United States District Court for the Southern District of New York presided over the initial trial. Hoffer requested an adverse inference instruction based on the missing video, arguing that the video was crucial evidence. The district court denied this request, finding insufficient evidence to prove that the video was intentionally destroyed to deprive Hoffer of its use in litigation. The jury ultimately found in favor of the officers, and Hoffer's subsequent motion to set aside the verdict was also denied.The United States Court of Appeals for the Second Circuit reviewed the case. The court held that to impose sanctions under Federal Rule of Civil Procedure 37(e)(2), it must be proven by a preponderance of the evidence that a party acted with an "intent to deprive" another party of the lost information. The court clarified that the lesser "culpable state of mind" standard, which includes negligence, does not apply to Rule 37(e)(2) sanctions. Applying this standard, the Second Circuit concluded that the district court did not err in denying Hoffer's request for an adverse inference instruction and affirmed the judgment of the district court. View "Hoffer v. Tellone" on Justia Law

John Doe, an individual with a serious mental illness, sued James V. McDonald, M.D., New York’s Commissioner of Health, and other defendants, seeking declaratory and injunctive relief under the Americans with Disabilities Act, the Rehabilitation Act, the Fair Housing Act, and Article 78 of the New York Civil Practice Law and Rules. Doe alleged that New York State regulations discriminated against him by preventing his readmission to Oceanview Manor Home for Adults, a Transitional Adult Home (TAH) where he previously resided. After filing the suit, the State allowed Doe to return to Oceanview, amended the regulations to permit readmission of former TAH residents with serious mental illness, and removed Oceanview’s classification as a TAH.The United States District Court for the Northern District of New York denied the State’s motion for summary judgment, which argued that Doe lacked standing. The district court granted the State leave to file an interlocutory appeal. On appeal, the State contended that the district court erred in finding standing because Doe lacked a concrete plan to leave and seek readmission to Oceanview.The United States Court of Appeals for the Second Circuit reviewed the case and determined that the State’s jurisdictional challenge should be assessed as a question of mootness, not standing, because it addressed events occurring after Doe filed the suit. The court found that Doe’s suit was moot because the State had allowed Doe to return to Oceanview, amended the regulations, and removed Oceanview’s TAH classification. Consequently, there was no reasonable expectation that the alleged violation would recur.The Second Circuit dismissed the appeal, vacated the district court’s order, and remanded the case with instructions to dismiss for lack of subject matter jurisdiction. View "Doe v. McDonald" on Justia Law