Articles Posted in US Court of Appeals for the Second Circuit

by
The Second Circuit affirmed the district court's judgment granting attorneys' fees and costs to defendants under section 505 of the Copyright Act and section 35(a) of the Lanham Act. These provisions authorized the district court to award fees to the prevailing party in a lawsuit. The court held that defendants met the definition of "prevailing party" under both fee-shifting provisions. Although defendants did not obtain a dismissal on the the Copyright and Lanham Acts claims, defendants have fulfilled their primary objective by obtaining dismissal of the complaint on collateral estoppel grounds. View "Manhattan Review, LLC v. Yun" on Justia Law

by
The Second Circuit affirmed the district court's order enjoining Reed Smith's action for tortious interference and unjust enrichment in New York state court against Wohl & Fruchter, in a dispute arising from the two firms' concurrent representation of the plaintiff class in the now-settled litigation. The court held that the district court had ancillary jurisdiction over the motion to stay the state court proceedings; the district court properly declined to abstain from exercising jurisdiction where all six factors in Woodford v. Cmty. Action Agency of Green Cty., Inc., 239 F.3d 517, 522 (2d Cir. 2001), favored retaining jurisdiction; the injunction was proper under the Anti-Injunction Act where the district court properly issued the injunction to prevent Reed Smith from relitigating the terms of the Fee Order; and Wohl & Fruchter's cross appeal was procedurally untenable. View "Kaplan v. Reed Smith LLP" on Justia Law

by
The United States appealed the district court's order precluding the government from introducing at trial certain testimony by a co-defendant turned government witness on the basis of the common-interest rule of attorney-client privilege. The Second Circuit reversed the judgment of the district court, finding nothing in the circumstances in this case to support the application of the privilege. Here, the excluded statements were not made to, in the presence of, or within the hearing of an attorney for any of the common-interest parties; nor did the excluded statements seek the advice of, or communicate advice previously given by, an attorney for any of the common-interest parties; nor were the excluded statements made for the purpose of communicating with such an attorney. View "United States v. Krug" on Justia Law

by
The Supreme Court addressed in Goodyear Tire & Rubber Co. v. Haeger, 137 S. Ct. 1178, 1183‐84 (2017), a federal court's inherent authority to sanction a litigant for bad‐faith conduct by ordering it to pay the other side's legal fees. The Court held that such an order is limited to the fees the innocent party incurred solely because of the misconduct—or put another way, to the fees that party would not have incurred but for the bad faith. This appeal stemmed from a suit against T-Mobile for property damage to a building T-Mobile had leased space on the roof of for cell tower equipment. The Second Circuit vacated and remanded the district court's order of sanctions because it was in serious tension with the Court's holding and because the district court was mislead by defendants' submissions in awarding such severe sanctions. View "Virginia Properties, LLC v. T-Mobile Northeast LLC" on Justia Law

by
To vacate an arbitration award on the ground that the award was fraudulently procured, the petitioner must demonstrate the fraud was material to the award. There must be a nexus between the alleged fraud and the decision made by the arbitrators. The petitioner, however, need not demonstrate that the arbitrators would have reached a different result. In this case, Odeon brought a petition to vacate an arbitral award involving claims arising out of the termination of one of its employees. Odeon alleged that the arbitrators engaged in misconduct and acted in manifest disregard of the law, and then sought to amend its petition to assert fraud as an additional ground for vacatur. The Second Circuit held that Odeon failed to establish that the employee's alleged perjury had any impact on the arbitration award. The court also held that the district court applied the wrong legal standard in denying the employee's request for attorneys' fees where New York law provided statutory authority for the fee request. Accordingly, the court affirmed in part, vacated in part, and remanded. View "Odeon Capital Group LLC v. Ackerman" on Justia Law

by
The Second Circuit vacated the district court's order denying plaintiffs' motion for attorneys' fees and costs incurred in litigating an appeal and cross-appeal under 42 U.S.C. 1988. After the court affirmed on the merits, the district court awarded a reduced award of attorneys' fees. The court affirmed the award in a summary order, stating that each side was to bear its own costs. The district court then denied plaintiffs' motion for attorneys' fees. The court held that its reference to "costs" in the context of Federal Rule of Appellate Procedure 39 did not include attorneys' fees. Accordingly, the court remanded for further proceedings. View "Hines v. City of Albany" on Justia Law