Cho Ex Rel. Situated v. City of N.Y.

910 F.3d 639
CourtCourt of Appeals for the Second Circuit
DecidedDecember 11, 2018
DocketDocket 18-337-cv; August Term, 2018
StatusPublished
Cited by141 cases

This text of 910 F.3d 639 (Cho Ex Rel. Situated v. City of N.Y.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cho Ex Rel. Situated v. City of N.Y., 910 F.3d 639 (2d Cir. 2018).

Opinion

Gerard E. Lynch, Circuit Judge:

This case requires us to consider the application of the Rooker - Feldman doctrine where plaintiffs complain of injuries flowing from settlement agreements that were "so-ordered" by state-court judges. Plaintiffs-Appellants Sung Cho, Nagle Washrite LLC (Cho's business entity), David Diaz, and Jameelah El-Shabazz appeal from a judgment in the United States District Court for the Southern District of New York (Andrew L. Carter, Judge ) dismissing their complaint. Plaintiffs-Appellants are all individuals or businesses that were subject to eviction based on New York City's Nuisance Abatement Law, N.Y.C. Admin. Code §§ 7-701 et seq ., and had agreed to settle eviction proceedings brought by the City, rather than to litigate the nuisance charges. Defendants-Appellees are the City of New York, New York City Mayor Bill de Blasio in his official capacity, the New York City Police Department, New York City Police Commissioner James P. O'Neill in his official capacity, the New York City Law Department, and Zachary W. Carter, Corporation Counsel for the City of New York, in his official capacity (collectively, the "City"). The district court dismissed plaintiffs' claims for lack of subject matter jurisdiction, concluding that they were barred by the Rooker - Feldman doctrine. Cho v. City of N.Y. , 2018 WL 401512 (S.D.N.Y. Jan. 12, 2018).

The single question on appeal is whether the district court's Rooker - Feldman ruling was erroneous. Plaintiffs argue that only one of Rooker - Feldman 's four requirements is met and that therefore the case should proceed. Essentially, they maintain that Rooker - Feldman should not bar jurisdiction where, as here, plaintiffs' alleged injuries were merely ratified by the state-court judgments rather than caused by them.

As explained below, we agree that plaintiffs complain of injuries that were merely ratified by the state-court judgments, and not, as required by Rooker - Feldman , caused by them. Since Rooker - Feldman bars district court jurisdiction only when all four of its requirements are met, it was *642 therefore error for the district court to dismiss for lack of jurisdiction.

Accordingly, we VACATE the judgment of the district court and REMAND this case to the district court for further proceedings.

BACKGROUND

This appeal arises out of events that occurred when plaintiffs were charged with violating New York City's Nuisance Abatement Law, N.Y.C. Admin. Code §§ 7-701 et seq. (the "Ordinance"). 1 The plaintiffs entered into settlement agreements with the City rather than defend themselves in court; each one of their agreements was subsequently "so-ordered" in state court. They now bring claims in federal court under 42 U.S.C. § 1983 .

Enacted in 1977 to address concerns that various illegal activities were "detrimental to the health, safety, and welfare of the people of the city and of the businesses thereof and visitors thereto," the Ordinance allows the City to close a residence or business for up to one year when it can show, by a preponderance of the evidence, that certain enumerated offenses - such as drug crimes, stolen property offenses, prostitution, or obscenity - occurred on the premises. Id. §§ 7-701, 7-703. The Ordinance further allows the City's Corporation Counsel to bring an action in state court to permanently enjoin public nuisances and to enjoin the person or persons "conducting, maintaining, or permitting the public nuisance" from so doing. Id. § 7-706. Furthermore, at the time of the events that transpired here, the Ordinance allowed the City to initiate an eviction action by obtaining an order closing the premises in an ex parte proceeding if it could show "by clear and convincing evidence" that one of the enumerated nuisances is "being conducted, maintained or permitted" on any given property, without prior notice or opportunity to be heard. Id. § 7-710 (2016). 2 These temporary closing orders functioned, practically, as eviction notices. Once such an action was initiated, a hearing would be held within three business days, at which hearing the court would decide whether the premises should remain closed throughout the course of litigation. Id.

At the time of the relevant events, the Ordinance allowed for the issuance of a temporary closing order regardless of the culpability of the defendant residents and business owners. See, e.g. , City of New York v. Castro , 160 A.D.2d 651 , 559 N.Y.S.2d 508 , 509 (1st Dep't 1990). Thus, the actions were frequently referred to as "no-fault evictions." 3 The complaint alleges that in practice the Ordinance allowed the City to easily obtain temporary closing orders and that each of the plaintiffs discovered *643 they were evicted without notice, months after any alleged criminal activity occurred on their premises.

More specifically, the named plaintiffs allege the following: Sung Cho, a laundromat owner, claims that the NYPD conducted sting operations on his premises in which it used his laundromat to sell purportedly stolen electronics on two separate occasions. Cho claims that several months after these sting operations, he received a notice evicting him from his business and imposing $1,000 per day in civil fines. A hearing was scheduled, but Cho settled with the City the day before, understanding that even if he was able to prove that neither he nor his employees had any involvement with the alleged criminal conduct, his innocence would not provide a defense against the injunction.

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910 F.3d 639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cho-ex-rel-situated-v-city-of-ny-ca2-2018.