U.S. Second Circuit - FindLaw

U.S. Second Circuit - The FindLaw 2nd Circuit Court of Appeals Opinion Summaries Blog


2nd Cir. Reverses Lower Ct. Libor Ruling, Says Antitrust Violated

The Second Circuit has reversed a lower federal court decision that had first determined that widespread collusion amongst international banks to price-fix the London Interbank Offered Rate (aka Libor) was not a violation of antitrust law for want of competition.

The Second Circuit's Court of Appeals reversed this recently, breathing new life into plaintiffs' hopes for redemption. As well as plaintiffs' lawyers. The ruling cracks open a doorway to potentially billions in damages tied to the manipulation of the price of money and lending.

Lynn Tilton Loses Bid to Bring Case to Circuit Ct. Over SEC ALJ

The matriarch of Patriarch Partners, the private equity firm, has lost her bid to halt SEC administrative proceedings over her alleged defrauding of investors. Lynn Tilton, founder of Patriarch, will have to go through lower SEC administrative channels first and exhaust those proceedings before getting any type of review by the federal appellate court.

The ruling is no surprise given the increase in the of SEC court proceedings following the Dodd-Frank Act of 2010.

'Hustle' Case Reversed: BofA Escapes $1.3 Billion Penalty

The Second Circuit just handed Bank of America a huge win when it reversed the trial court's order for the mortgage lender to pay up to the tune of $1.27 billion. This penalty was initially ordered for alleged violations by its Countryside unit when the mortgage-crisis reached a fever pitch. The case became known as the "Hustle" case because of its focus on the banking industry tactic of continuing to issue bad loans despite their quality.

The case is a curious one and is sure to infuriate now disbanded members of "Occupy Wall Street." In the opinion of Michael Hiltzik of the L.A. Times, the decision amounted to a kangaroo decision that turned on the following issue: "When is a fraud not a fraud, but just, sort of, a lie?"

WWII Vet Writes 2nd Cir., Reprimands the Panel Over 'Deflategate'

The Deflategate scandal is beginning to strike some as getting a little long in the tooth, particularly owing to the fact that the entire scandal revolves around the PSI of a football, but it looks like it will continue on. While probably everyone is tired of this scandal, no one is quite as frustrated as Warren B. Lessing, a 93-year-old WWII vet who reprimanded the Second Circuit for adding grease to a fire.

The tone of Lessing's letter to the court can be summed up with this very direct question: "Don't you have anything more important to do?"

James Haber and his tax shelter boutique, Diversified Group Inc, were fined $25 million by the Internal Revenue Service for their alleged failure to register offshore tax shelters. Haber handed over $18,370 and his company paid out $15,500, and that was it. To collect the significant balance remaining, the IRS turned to assets controlled by Haber's wife, Jill.

Haber sued, contesting the administrative summons issued by the IRS to Ms. Haber's bank. But, the Second Circuit ruled last Friday, that summons was well within the Service's power, allowing the IRS investigation into Haber's wife to continue ahead.

2nd Cir. Affirms Dismissal of ERISA Parity Case Against Anthem

The Second Circuit affirmed a lower court's dismissal of an ERISA discrimination suit against health insurers Anthem on the grounds that the latter discriminated against mental-health patients by reimbursing them less than other patients.

But the thrust of the disputed issue at law still remains red hot. The case was not dismissed on the merits so much as the circuit decided that psychiatrists, who brought the suit on behalf of their patients, lacked standing.

2nd Cir. Refuses to Re-Open Arab Bank Terrorism Suit

Controversy aside, jurists will have to live with the fact that precedent does not allow a re-hearing of the Arab Bank suit which ruled against victims of suicide bombers late last year.

This was the final say of the Second Circuit, which finally put to rest the suits brought by families of Israeli victims killed by Palestinian suicide bombers during the Second Intifada.

Tom Brady Must Be Punished for Deflategate, Says 2nd Circuit

The Second Circuit's Court of Appeals weighed in on the Deflategate controversy and decided that a reinstatement of a four-game suspension against Tom Brady was the proper route. Brady had earlier petitioned a lower district court ruling on due process grounds.

No surprise, the news was met with nodding approval by NFL Commissioner Roger Goodell who fast-tracked proceedings against Brady that led to the player's suspension.

Want to represent New Yorkers while keeping your only law office in Connecticut or New Jersey? Fuhgeddaboutit!

The Second Circuit has upheld New York's law requiring out-of-state attorneys to maintain a physical office in the state, reversing a district court opinion declaring the rule an unconstitutional violation of the Privileges and Immunities Clause. Sorry Empire State moon lighters, it's time to start looking for a lease.

The Second Circuit upheld the conviction of five former employees for Bernie Madoff this week. In a summary order issued Wednesday, the court rejected arguments challenging the sufficiency of the evidence against then and the behavior of federal prosecutors.

The defendants were directors, portfolio managers, and computer programmers who had aided Madoff in the Ponzi scheme which landed Madoff a 150-year prison term and lost investors an estimated $17 billion dollars.