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EDNY Blog

Current Developments in the US District Court for the
Eastern District of New York
Posted: May 6, 2014

Two Claims Revived Upon Reconsideration In HSBC Bank Overdraft Fee Litigation

In In re: HSBC Bank, USA, N.A. Debit Card Overdraft Fee Litigation, 13 MD 2451 (E.D.N.Y. April 21, 2014), Judge Arthur D. Spatt took the rare step of granting a motion for reconsideration in a class action involving allegations that HSBC customers were improperly charged “overdraft fees” on debit card transactions. Plaintiffs claimed that the bank posted debits in a...

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Posted: April 28, 2014

RICO Applies To Foreign Enterprises When Underlying Predicates Were Intended To Apply To Such Conduct

On April 23, 2014, the Second Circuit issued a decision in European Community v. RJR Nabisco, No. 11-2475-cv, reversing a decision of the EDNY holding that “RICO does not apply to enterprises outside the United States.” In European Community, the plaintiff asserted RICO and associated state law claims against the defendants alleging a multi-step international scheme involving “the smuggling of illegal narcotics into...

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Posted in EDNY, Appeals, RICO
Posted: April 23, 2014

Removal Clock For Class Action Fairness Act Does Not Start Until Plaintiff Discloses Facts Showing Removability

On April 17, 2014, the Second Circuit issued a decision in Cutrone v. Mortgage Electronic Registration Systems, Inc., No. 14-455-CV, holding that the 30-day time windows to remove an action under the Class Action Fairness Act (“CAFA”) do not start to run until the plaintiff serves the defendant with a document specifying the damages sought or setting forth facts from which...

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Posted: April 17, 2014

Judge Weinstein Grants Summary Judgment To Contract Creditor Piercing The Corporate Veil

In an April 4, 2014 judgment and order in Jiaxing Globillion Import and Export Co. v. Argington, Inc., 11 CV 6291 (JBW) (E.D.N.Y. Apr. 4, 2014), Judge Jack B. Weinstein granted summary judgment for plaintiff and pierced the corporate veil to hold one of the corporate defendant’s two shareholders liable for the company’s breach of contract. Plaintiff Jiaxing Globallion Import and...

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Posted: April 16, 2014

Order Allowing Defendant’s Proffer To Be Disclosed To His Co-Defendants Not Appealable

On April 14, 2014, the Second Circuit issued a decision in United States v. Doe, Docket No. 14-572, dismissing an appeal from “an oral order of the” EDNY “granting the government’s motion for a protective order that would allow proffer statements made by” defendant Doe “to be disclosed to his codefendants” because the order was not appealable. The Second Circuit determined that...

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Posted in EDNY, Appeals
Posted: April 4, 2014

Second Circuit Clarifies Rules for Time to Appeal Non-Final Orders

On April 2, 2014, the Second Circuit issued a decision in United States ex rel. Maurice Keshner v. Nursing Personnel Home Care, Docket Nos. 13-1688-cv (Lead), 14-251-cv (Con), addressing the question of when the time to appeal non-final fee awards begins to run. In Keshner, the Second Circuit addressed a motion to dismiss an appeal from an order issued by...

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Posted in EDNY, Appeals, Attorney Fees
Posted: April 3, 2014

Homeowners’ Fraud Claims Based On Lender’s Questionable Practices Dismissed

In Knox v. Countrywide Bank, 13 CV 3789 (JFB)(WDW) (E.D.N.Y. March 12, 2014), homeowners who took out first and second home mortgage loans from Countrywide sued the bank and others on two fraud theories. The first theory alleged that Countrywide had concealed that the note underlying the mortgage was invalid because the mortgage was held in the name of defendant...

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Posted in EDNY, Mortgage
Posted: March 28, 2014

Case Remanded To EDNY To Determine What Plaintiff Knew Or Could Have Known Regarding Its Claims Before Defendants’ Bankruptcy Discharge

On March 27, 2014, the Second Circuit issued a decision in DPWN Holdings (USA), Inc. v. United Airlines, Inc., No. 12-4867-cv, discussing the standard for determining whether a post-bankruptcy-discharge lawsuit can be brought based on pre-discharge claims. In DPWN Holdings, the EDNY denied the defendants’ motion to “dismiss an antitrust price-fixing claim,” rejecting the defendants’ argument that “the plaintiff had sufficient notice...

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Posted in EDNY, Bankruptcy
Posted: March 19, 2014

District Court May Not Refuse To Award Prevailing ERISA Plaintiff Attorney’s Fee Without Performing Full Analysis Of Relevant Factors

On March 11, 2014, the Second Circuit issued a decision in Donachie v. Liberty Mutual Ins. Co. et al., Nos. 12-2996-CV (Lead), 12-3031 (XAP), clarifying “the scope of a district court’s discretion in deciding whether to award attorneys’ fees to a prevailing” ERISA plaintiff. In Donachie, the EDNY granted the plaintiff summary judgment “on his claim for long-term disability benefits pursuant...

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Posted in EDNY, Attorney Fees, ERISA
Posted: March 17, 2014

Second Circuit Remands And Reassigns ADA Case After Judge Conducts His Own Investigation And Determines Plaintiff’s Counsel Not Deserving Of Attorneys’ Fees

In a March 11, 2014, summary order, the Second Circuit (Katzmann, C.C.J., Sack, C.J., and Rakoff, D.J.) vacated an order denying the plaintiff’s motion for attorneys’ fees under the Americans With Disabilities Act (the “ADA”). The court also remanded and reassigned the case because Eastern District Judge Sterling Johnson, Jr. had conducted his own investigation of the premises at issue...

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