8:25-cv-01516•Barbosa v. Andrews
Testo completo
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK _______________________________________________ RYAN BARBOSA, Plaintiff, v. 8:25-cv-01516 (AMN/TWD) STEFAN ANDREWS, Defendant. _______________________________________________ APPEARANCES: RYAN BARBOSA Plaintiff, pro se 15224 Jefferson County Jail 753 Waterman Drive Watertown, NY 13601 THÉRÈSE WILEY DANCKS, United States Magistrate Judge REPORT-RECOMMENDATION AND ORDER I. INTRODUCTION The Clerk has sent to the Court for review a complaint submitted by pro se plaintiff Ryan Barbosa (“Plaintiff”), together with an application to proceed in forma pauperis (“IFP”). Dkt. Nos. 1, 2. Plaintiff, who is incarcerated at the Jefferson County Jail, has not paid the filing fee for this action. II. IFP APPLICATION “28 U.S.C. § 1915 permits an indigent litigant to commence an action in a federal court without prepayment of the filing fee that would ordinarily be charged.” Cash v. Bernstein, No. 1:09-CV-1922, 2010 WL 5185047, at *1 (S.D.N.Y. Oct. 26, 2010). “Although an indigent, incarcerated individual need not prepay the filing fee at the time of filing, he must subsequently Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 1 of 40
2 pay the fee, to the extent he is able to do so, through periodic withdrawals from his inmate accounts.” Id. (citing 28 U.S.C. § 1915(b); Harris v. City of New York, 607 F.3d 18, 21 (2d Cir. 2010)).1 Upon review, the Court finds Plaintiff has submitted a completed and signed IFP application, which demonstrates economic need. Dkt. No. 2. Plaintiff has also filed the inmate authorization form required in this District. Dkt. No. 3. Accordingly, Plaintiff’s IFP application is granted.2 III. COMPLAINT Plaintiff commenced this action by using the Court’s form complaint for violations of civil rights. Dkt. No. 1. Plaintiff alleges that on October 3, 2024, he was “pushed down the stairs” by defendant Stefan Andrews (“Defendant”). Id. at 5.3 His “statement of facts” reads, in full: I suffered a right elbow dislocation a right wrist broken along with my arm and 2 fractured vertabraes. A verbal issue turned violent because a Playstation was knocked over while me and another friend were play wrestling in the house who is Stefan’s childs mother led to him telling me to leave which I did but as I was he grabbed me by my collar dragged me to the stairs closed the door confronted me about the Playstation but still had me by my collar so I said get your hand off me I tried to move his hand and he slapped and pushed me 1 Section 1915(g) prohibits a prisoner from proceeding in forma pauperis where, absent a showing of “imminent danger of serious physical injury,” a prisoner has filed three or more actions or appeals that were subsequently dismissed as frivolous, malicious, or failing to state a claim upon which relief may be granted. 28 U.S.C. § 1915(g). Based upon the Court’s review of Plaintiff’s litigation history on the Federal Judiciary’s Public Access to Court Electronic Records (“PACER”) Service, it does not appear that Plaintiff has accumulated three strikes for purposes of 28 U.S.C. § 1915(g). 2 Plaintiff should note that although his IFP application has been granted, he will still be required to pay fees that he may incur in this action, including copying and/or witness fees. 3 Citations to Plaintiff’s complaint refer to the pagination generated by CM/ECF, the Court’s electronic filing system. Unless otherwise indicated, excerpts from the record are reproduced exactly as they appear in the original and errors in spelling, punctuation, and grammar have not been corrected. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 2 of 40
3 down the stairs I went down a large set of old hard wooden stairs and thru a screen door onto the porch I tried to get up on my right arm and it bent in half and I basically went in shock a friend drove me around the corner to stewarts gas station where I was picked up by an ambulance[.] Id. at 4. Plaintiff required surgery. Id. at 5. As relief, Plaintiff seeks “1 million dollars and medical bills to be paid” for his “pain and suffering”, “depression”, “mental anguish,” “inability to work”, and “permenant injury”. Id. IV. LEGAL STANDARD Pursuant to 28 U.S.C. § 1915(e), the court must dismiss an in forma pauperis complaint that is frivolous or malicious, fails to state a claim on which relief may be granted, or seeks monetary relief from a defendant who is immune from such relief. See 28 U.S.C. § 1915(e)(2)(B)(i)-(iii). Thus, even if a plaintiff meets the financial criteria to commence an action in forma pauperis, it is the court’s responsibility to determine whether the plaintiff may properly maintain the complaint that he filed in this District before the court may permit the plaintiff to proceed with this action in forma pauperis. See id. The court must also dismiss a complaint, or portion thereof, when it lacks subject matter jurisdiction. See Fed. R. Civ. P. 12(h)(3). While the law mandates dismissal on any of these grounds, the court is obliged to construe pro se pleadings liberally, Harris v. Mills, 572 F.3d 66, 72 (2d Cir. 2009), and interpret them to raise the “strongest arguments that they suggest.” Triestman v. Fed. Bureau of Prisons, 470 F.3d 471, 474-75 (2d Cir. 2006) (internal quotation marks and citation omitted, emphasis in original). A claim is frivolous when it “lacks an arguable basis either in law or in fact.” Neitzke v. Williams, 490 U.S. 319, 325 (1989), abrogated on other grounds by Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007); see also Denton v. Hernandez, 504 U.S. 25, 33 (1992) (“[A] finding of factual frivolousness is appropriate when the facts alleged rise to the level of the Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 3 of 40
4 irrational or the wholly incredible”); Livingston v. Adirondack Beverage Co., 141 F.3d 434, 437 (2d Cir. 1998) (“[A]n action is ‘frivolous’ when either: (1) the factual contentions are clearly baseless . . . or (2) the claim is based on an indisputably meritless legal theory.”). Additionally, when reviewing a complaint, a court may look to the Federal Rules of Civil Procedure. To survive dismissal for failure to state a claim, a complaint must contain a short and plain statement of the claim showing that the pleader is entitled to relief. Fed. R. Civ. P. 8(a)(2). This short and plain statement of the claim must be “plausible on its face.” Twombly, 550 U.S. at 570. “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Moreover, “[a] party must state its claims or defenses in numbered paragraphs, each limited as far as practicable to a single set of circumstances[.]” Fed. R. Civ. P. 10. Rule 10 serves “to provide an easy mode of identification for referring to a particular paragraph in a prior pleading[.]” Flores v. Graphtex, 189 F.R.D. 54, 55 (N.D.N.Y. 1999). In determining whether a complaint states a claim upon which relief may be granted, “the court must accept the material facts alleged in the complaint as true and construe all reasonable inferences in the plaintiff’s favor.” Hernandez v. Coughlin, 18 F.3d 133, 136 (2d Cir. 1994) (citations omitted). However, “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Iqbal, 556 U.S. at 678. “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 4 of 40
5 V. FEDERAL SUBJECT MATTER JURISDICTION “It is a fundamental precept that federal courts are courts of limited jurisdiction.” Owen Equip. & Erec. Co. v. Kroger, 437 U.S. 365, 374 (1978). Federal jurisdiction exists only when a “federal question” is presented, 28 U.S.C. § 1331, or where there is “diversity of citizenship” and the amount in controversy exceeds $75,000, 28 U.S.C. § 1332. See Perpetual Sec., Inc. v. Tang, 290 F.3d 132, 136 (2d Cir. 2002). Plaintiff brings this action under 42 U.S.C. § 1983, which provides in relevant part: [e]very person who, under color of any statute, ordinance, regulation, custom, or usage, of any State . . . subjects, or causes to be subjected, any citizen of the United States . . . to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured . . . . 28 U.S.C. § 1983. To state a claim under § 1983, a plaintiff must allege that the challenged conduct (1) was “committed by a person acting under color of state law,” and (2) “deprived [the plaintiff] of rights, privileges, or immunities secured by the Constitution or laws of the United States.” Cornejo v. Bell, 592 F.3d 121, 127 (2d Cir. 2010) (quoting Pitchell v. Callan, 13 F.3d 545, 547 (2d Cir. 1994)). “The purpose of § 1983 is to deter state actors from using the badge of their authority to deprive individuals of their federally guaranteed rights and to provide relief to victims if such deterrence fails.” Wyatt v. Cole, 504 U.S. 158, 161 (1992). It is well settled that “the under-color-of-state-law element of § 1983 excludes from its reach merely private conduct, no matter how discriminatory or wrongful.” Am. Mfrs. Mut. Ins. Co. v. Sullivan, 526 U.S. 40, 50 (1999) (citation and internal quotation marks omitted). A plaintiff must therefore allege facts showing that a defendant was either a state actor or a private party acting under color of state law with regard to the claim. Ciambriello v. Cnty. of Nassau, 292 F.3d 307, 323 (2d Cir. 2002); see also United States v. Int’l Broth. of Teamsters, Chauffeurs, Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 5 of 40
6 Warehousemen & Helpers of America, 941 F.2d 1292, 1295-96 (2d Cir. 1991) (“Because the United States Constitution regulates only the Government, not private parties, a litigant claiming that his constitutional rights have been violated must first establish that the challenged conduct constitutes ‘state action.’”). Private actors have been found to engage in “state action” when they are “willful participant[s] in joint activity with the State or its agents.” Adickes v. S.H. Kress & Co., 398 U.S. 144, 152 (1970) (citing United States v. Price, 383 U.S. 787, 794 (1966)). Here, Plaintiff has alleged no deprivation of rights secured by the United States Constitution or under federal law, nor has he alleged facts plausibly showing Defendant was a state actor or private party acting under color of state law in connection with his claims. Construed most generously, Plaintiff’s complaint might be found to allege state law claims for assault and battery.4 Therefore, the Court finds there is no federal subject matter jurisdiction over Plaintiff’s claims. Plaintiff’s complaint also fails to allege a basis for diversity jurisdiction under 28 U.S.C. § 1332. To establish jurisdiction under § 1332, diversity must be complete. See Cushing v. Moore, 970 F.2d 1103, 1106 (2d Cir. 1992) (“[C]omplete diversity [is required] between all plaintiffs and all defendants.”). Therefore, Plaintiff must allege that he and Defendant are citizens of different states. He has not done so. For diversity purposes, an individual is a citizen of the state where he is domiciled, which is defined as the place where the individual “has his true fixed home . . . and to which, whenever he is absent, he has the intention of returning.” Palazzo ex rel. Delmage v. Corio, 232 F.3d 38, 4 In New York, assault and battery claims are subject to a one-year statute of limitations. N.Y. C.P.L.R. § 215. Because the incident giving rise to Plaintiff’s claims occurred on October 3, 2024, Dkt. No. 1 at 1, and Plaintiff’s complaint was signed on October 8, 2025, id. at 5, it is likely that they would be subject to dismissal as time-barred. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 6 of 40
7 42 (2d Cir. 2000) (internal quotation marks and citation omitted). When a plaintiff is incarcerated, there is a rebuttable presumption that he retains his pre-incarceration domicile, rather than establishing a new domicile based on the location of his current incarceration. See Blumatte v. Quinn, 521 F. Supp. 2d 308, 312 n.3 (S.D.N.Y. 2007) (citation omitted). In addition, the plaintiff must allege to a “reasonable probability” that the claim is in excess of the sum or value of $75,000.00, the statutory jurisdictional amount. See 28 U.S.C. § 1332(a); Colavito v. N.Y. Organ Donor Network, Inc., 438 F.3d 214, 221 (2d Cir. 2006) (citation and internal quotation marks omitted). Here, Plaintiff alleges Defendant is a citizen of New York, but he does not identify the state of his pre-incarceration domicile. See Dkt. No. 1 at 2. The Court is therefore unable to determine whether Plaintiff and Defendant are citizens of different states. Assuming Plaintiff is also a citizen of New York, complete diversity would be lacking. See Seemann v. Maxwell, 178 F.R.D. 23, 24 (N.D.N.Y. 1998). In addition, while Plaintiff’s claims may involve an amount in excess of the sum or value of $75,000, he alleges few, if any, facts supporting such a contention. See Weir v. Cenlar FSB, No. 7:16-cv-8650, 2018 WL 3443173, at *12 (S.D.N.Y. July 17, 2018) (reasoning that “the jurisdictional amount, like any other factual allegation, ought not to receive the presumption of truth unless it is supported by facts rendering it plausible”) (citation omitted). Based upon the foregoing, the Court finds there is no federal subject matter jurisdiction over Plaintiff’s claims. Accordingly, the undersigned recommends dismissing the complaint without prejudice for lack of subject matter jurisdiction. See Fed. R. Civ. P. 12(h)(3); see also Hollander v. Garrett, 710 F. App’x 35, 36 (2d Cir. 2018) (holding dismissal for subject matter jurisdiction must be without prejudice); McKie v. Kornegay, No. 21-1943, 2022 WL 4241355, at *2 (2d Cir. Sept. 15, 2022) (“A dismissal for lack of subject matter jurisdiction must be without Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 7 of 40
8 prejudice, because ‘without jurisdiction, the district court lacks the power to adjudicate the merits of the case.’”). VI. LEAVE TO AMEND “Generally leave to amend should be freely given, and a pro se litigant in particular should be afforded every reasonable opportunity to demonstrate that he has a valid claim.” Matima v. Celli, 228 F.3d 68, 81 (2d Cir. 2000) (cleaned up). An opportunity to amend is not required, however, where “the problem with [the plaintiff’s] causes of action is substantive” such that “better pleading will not cure it.” Cuoco v. Moritsugu, 222 F.3d 99, 112 (2d Cir. 2000). “[L]ack of subject-matter jurisdiction is generally viewed as a substantive defect.” Planck v. Schenectady Cnty., No. 1:12-CV-0336 (GTS/DRH), 2012 WL 1977972, at *6 (N.D.N.Y. June 1, 2012). Mindful of Plaintiff’s pro se status, the undersigned recommends granting Plaintiff leave to amend. Any amended complaint, which shall supersede and replace the original complaint in its entirety, must allege claims of misconduct or wrongdoing against each named defendant which Plaintiff has a legal right to pursue, and over which jurisdiction may properly be exercised. Any amended complaint filed by Plaintiff must also comply with the pleading requirements of Rules 8 and 10 of the Federal Rules of Civil Procedure. VII. CONCLUSION WHEREFORE, it is hereby ORDERED that Plaintiff’s IFP application (Dkt. No. 2) is GRANTED. The Clerk shall provide the Superintendent of the facility, designated by Plaintiff as his current location, with a copy of Plaintiff’s inmate authorization (Dkt. No. 3) and notify the official that this action has Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 8 of 40
9 been filed and that Plaintiff is required to pay the Northern District of New York the statutory filing fee of $350.00 in installments, over time, pursuant to 28 U.S.C. § 1915; and it is further ORDERED that the Clerk shall provide a copy of Plaintiff’s inmate authorization (Dkt. No. 3) to the Financial Deputy of the Clerk’s Office; and it is further RECOMMENDED that Plaintiff’s complaint (Dkt. No. 1) be sua sponte DISMISSED without prejudice for lack of subject matter jurisdiction and with leave to amend; and it is further ORDERED that the Clerk serve a copy of this Report-Recommendation and Order on Plaintiff in accordance with the Local Rules and provide Plaintiff with copies of the unpublished decisions cited herein in accordance with Lebron v. Sanders, 557 F.3d 76 (2d Cir. 2009) (per curiam). Pursuant to 28 U.S.C. § 636(b)(1), the parties have fourteen (14) days within which to file written objections to the foregoing report.5 Such objections shall be filed with the Clerk of the Court. FAILURE TO OBJECT TO THIS REPORT WITHIN FOURTEEN (14) DAYS WILL PRECLUDE APPELLATE REVIEW. Roldan v. Racette, 984 F.2d 85 (2d Cir. 1993) (citing Small v. Sec’y of Health and Human Servs., 892 F.2d 15 (2d Cir. 1989)); 28 U.S.C. § 636(b)(1); Fed. R. Civ. P. 72. IT IS SO ORDERED. Dated: December 10, 2025 Syracuse, New York 5 If you are proceeding pro se and are served with this Report-Recommendation and Order by mail, three additional days will be added to the fourteen-day period, meaning that you have seventeen days from the date the Report-Recommendation and Order was mailed to you to serve and file objections. Fed. R. Civ. P. 6(d). If the last day of that prescribed period falls on a Saturday, Sunday, or legal holiday, then the deadline is extended until the end of the next day that is not a Saturday, Sunday, or legal holiday. Fed. R. Civ. P. 6(a)(1)(C). Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 9 of 40
Cash v. Bernstein, Not Reported in F.Supp.2d (2010) 2010 WL 5185047 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 1 2010 WL 5185047 Only the Westlaw citation is currently available. United States District Court, S.D. New York. David J. CASH, Plaintiff, v. BERNSTEIN, MD, Defendant. No. 09 Civ.1922(BSJ)(HBP). | Oct. 26, 2010. REPORT AND RECOMMENDATION 1 1 At the time the action was originally filed, the Honorable Leonard B. Sand, United States District Judge, granted plaintiff's application for in forma pauperis status based on plaintiff's ex parte submission (Docket Item 1). Although the present application seeking to revoke plaintiff's in forma pauperis status is non-dispositive, I address it by way of a report and recommendation to eliminate any appearance of a conflict between the decision of a district judge and that of a magistrate judge. PITMAN, United States Magistrate Judge. *1 TO THE HONORABLE BARBARA S. JONES, United States District Judge, I. Introduction By notice of motion dated March 4, 2010 (Docket Item 11), defendant moves pursuant to 28 U.S.C. § 1915(g) to revoke plaintiff's in forma pauperis (“IFP”) status on the ground that plaintiff has previously had at least three Section 1983 actions dismissed as frivolous, malicious or failing to state a claim upon which relief could be granted, and has not shown that he is in imminent danger of serious physical injury. Defendant further seeks an order directing that the action be dismissed unless plaintiff pays the full filing fee within thirty (30) days. For the reasons set forth below, I respectfully recommend that defendant's motion be granted. II. Facts Plaintiff, a sentenced inmate in the custody of the New York State Department of Correctional Services, commenced this action on or about January 12, 2009 by submitting his complaint to the Court's Pro Se office. Plaintiff alleges, in pertinent part, that he has “a non-healing ulcer that is gane green [sic ]” and that defendant Bernstein “did not want to treat the ulcer right” (Complaint, dated March 3, 3009 (Docket Item 2) (“Compl.”), at 3). The action was originally commenced against two defendants —Dr. Bernstein and Dr. Finkelstein. The action was dismissed as to Dr. Finkelstein because the complaint contained no allegations whatsoever concerning Dr. Finkelstein (Order dated February 18, 2010 (Docket Item 9)). On March 4, 2010, the sole remaining defendant—Dr. Bernstein—filed the current motion. Plaintiff failed to submit a response. Accordingly, on August 20, 2010, I issued an Order advising plaintiff that if he wished to oppose the motion, he must submit his opposition by September 15, 2010 and that after that date I would consider the motion fully submitted and ripe for decision (Order dated August 20, 2010 (Docket Item 15)). The only submission plaintiff has made in response to my Order is a multi-part form issued by the New York State Department of Correctional Services entitled “Disbursement or Refund Request.” 2 By this form, plaintiff appears to request that the New York State Department of Correctional Services pay the filing fee for this action. The form is marked “Denied.” 2 Plaintiff sent this form directly to my chambers, and it has not been docketed by the Clerk of the Court. The form will be docketed at the time this Report and Recommendation is issued. III. Analysis 28 U.S.C. § 1915 permits an indigent litigant to commence an action in a federal court without prepayment of the filing fee that would ordinarily be charged. Although an indigent, incarcerated individual need not prepay the filing fee at the time at the time of filing, he must subsequently pay the fee, to the extent he is able to do so, through periodic withdrawals from his inmate accounts. 28 U.S.C. § 1915(b); Harris v. City of New York, 607 F.3d 18, 21 (2d Cir.2010). To prevent abuse of the judicial system by inmates, paragraph (g) of this provision denies incarcerated individuals the right to proceed without prepayment of the filing fee if they have repeatedly filed meritless actions, unless such an individual shows that he or she is in imminent danger of serious Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 10 of 40
Cash v. Bernstein, Not Reported in F.Supp.2d (2010) 2010 WL 5185047 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 2 physical injury. See Ortiz v. McBride, 380 F.3d 649, 658 (2d Cir.2004) (“[T]he purpose of the PLRA ... was plainly to curtail what Congress perceived to be inmate abuses of the judicial process.”); Nicholas v. Tucker, 114 F.3d 17, 19 (2d Cir.1997). Specifically, paragraph (g) provides: *2 In no event shall a prisoner bring a civil action or appeal a judgment in a civil action or proceeding under this section if the prisoner has, on 3 or more prior occasions, while incarcerated or detained in any facility, brought an action or appeal in a court of the United States that was dismissed on the grounds that it is frivolous, malicious, or fails to state a claim upon which relief may be granted, unless the prisoner is under imminent danger of serious physical injury. 28 U.S.C. § 1915(g). If an inmate plaintiff seeks to avoid prepayment of the filing fee by alleging imminent danger of serious physical injury, there must be a nexus between the serious physical injury asserted and the claims alleged. Pettus v. Morgenthau, 554 F.3d 293, 298 (2d Cir.2009). Section 1915(g) clearly prevents plaintiff from proceeding in this action without prepayment of the filing fee. The memorandum submitted by defendant establishes that plaintiff has had his IFP status revoked on at least four prior occasions as a result of his repeatedly filing meritless actions. • In 2005, plaintiff commenced an action in the United States District Court for the Northern District of New York seeking to have his infected leg amputated. Nelson 3 v. Lee, No. 9:05–CV–1096 (NAM)(DEP), 2007 WL 4333776 (N.D.N.Y. Dec. 5, 2007). In that matter, the Honorable Norman A. Mordue, Chief United States District Judge, accepted and adopted the Report and Recommendation of the Honorable David E. Peebles, United States Magistrate Judge, that plaintiff had brought three or more prior actions that had been dismissed for failure to state a claim and that plaintiff's IFP status should, therefore, be revoked. 2007 WL 4333776 at *1–*2. 3 It appears that plaintiff uses the names David J. Cash and Dennis Nelson interchangeably. In his complaint in this matter, plaintiff states that the Departmental Identification Number, or DIN, assigned to him by the New York State Department of Correctional Services (“DOCS”) is 94–B–0694 (Compl. at 7). DOCS inmate account records submitted by plaintiff in connection with his application for IFP status indicate that DIN 94– B–0694 is assigned to Dennis Nelson. In addition, the DOCS form described in footnote two bears the docket number of this action, but is signed in the name of Dennis Nelson and was sent in an envelope identifying the sender as Dennis Nelson. A subsequent action has been filed in this Court in which the plaintiff identifies himself as Dennis Nelson but lists his DIN as 94–B–0694, the same DIN used by plaintiff here. Finally, plaintiff has submitted nothing to controvert the assertion in defendant's papers that David Cash and Dennis Nelson are the same person. In light of all these facts, I conclude that David Cash and Dennis Nelson are both names used by plaintiff. • In Nelson v. Nesmith, No. 9:06–CV–1177 (TJM)(DEP), 2008 WL 3836387 (N.D.N.Y. Aug. 13, 2008), plaintiff again filed an action concerning the medical care he was receiving for his left leg. The Honorable Thomas J. McAvoy, United States District Judge, accepted the Report and Recommendation of Magistrate Judge Peebles, and revoked plaintiff's IFP status and dismissed the action on the ground that plaintiff had previously commenced at least three actions that had been dismissed on the merits. 2008 WL 3836387 at *1, *7. • In Nelson v. Spitzer, No. 9:07–CV–1241 (TJM) (RFT), 2008 WL 268215 (N.D.N.Y. Jan. 29, 2008), Judge McAvoy again revoked plaintiff's IFP status on the ground that plaintiff had commenced three or more actions that constituted “strikes” under Section 1915(g) and had not shown an imminent threat of serious physical injury. 2008 WL 268215 at *1–*2. • Finally, in Nelson v. Chang, No. 08–CV–1261 (KAM)(LB), 2009 WL 367576 (E.D.N.Y. Feb. 10, 2009), the Honorable Kiyo A. Matsumoto, United Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 11 of 40
Cash v. Bernstein, Not Reported in F.Supp.2d (2010) 2010 WL 5185047 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 3 States District Judge, also found, based on the cases discussed above, that plaintiff had exhausted the three strikes permitted by Section 1915(g) and could not proceed IFP in the absence of a demonstration of an imminent threat of serious physical injury. 2009 WL 367576 at *2–*3. *3 As defendant candidly admits, there is one case in which plaintiff's leg infection was found to support a finding of an imminent threat of serious physical injury sufficient to come within the exception to Section 1915(g). Nelson v. Scoggy, No. 9:06–CV–1146 (NAM)(DRH), 2008 WL 4401874 at *2 (N.D.N.Y. Sept. 24, 2008). Nevertheless, summary judgment was subsequently granted for defendants in that case, and the complaint was dismissed. Judge Mordue concluded that there was no genuine issue of fact that plaintiff had received adequate medical care for his leg wound and that the failure of the leg to heal was the result of plaintiff's own acts of self-mutilation and interference with the treatment provided. Nelson v. Scoggy, No. 9:06–CV–1146 (NAM)(DRH), 2009 WL 5216955 at *3–*4 (N.D.N.Y. Dec. 30, 2009). 4 4 Although the form complaint utilized by plaintiff expressly asks about prior actions involving the same facts, plaintiff disclosed only the Scoggy action and expressly denied the existence of any other actions relating to his imprisonment (Compl. at 6). In light of the foregoing, there can be no reasonable dispute that plaintiff has exceeded the three “strikes” allowed by Section 1915(g) and that he cannot, therefore, proceed here without prepaying the filing fee unless he demonstrates an imminent threat of serious physical injury. Plaintiff has declined to attempt to make this showing in response to defendant's motion, and the only suggestion in the record of serious physical injury is the bare statement in the complaint that plaintiff “need[s] to go back to a wound speci [a]list before the gane green [sic ] kills [him]” (Compl. at 5). “However, unsupported, vague, self-serving, conclusory speculation is not sufficient to show that Plaintiff is, in fact, in imminent danger of serious physical harm.” Merriweather v. Reynolds, 586 F.Supp.2d 548, 552 (D.S.C.2008), citing Ciarpaglini v. Saini, 352 F.3d 328, 330 (7th Cir.2003) and White v. Colorado, 157 F.3d 1226, 1231–32 (10th Cir.1998); see also Martin v. Shelton, 319 F.3d 1048, 1050 (8th Cir.2003) (imminent danger exception to Section 1915(g) requires “specific fact allegations of ongoing serious physical injury, or of a pattern of misconduct evidencing the likelihood of imminent serious physical injury”). Given the plaintiff's history, as set forth in the cases described above, I conclude that this vague statement is insufficient to support a finding that plaintiff is in imminent danger of serious physical injury. 5 5 Plaintiff has sent me several letters describing his wound and its symptoms in detail, and I have no doubt that the wound is serious. However, in granting summary judgment dismissing an action last year based on the same allegations, Judge Mordue of the Northern District found that there was no genuine issue of fact that plaintiff's own conduct was responsible for the ineffectiveness of the treatment he was provided: Furthermore, to the extent that Nelson's medical treatment was delayed, much of the delay was due to his own refusal to cooperate with medical staff and his self-mutilations. Nelson's actions to thwart the medical treatment of his wound cannot be construed as interference or indifference by anyone else.... [T]he medical treatment Nelson received complied with constitutional guarantees as it was appropriate, timely, and delayed only by Nelson's own actions. Nelson v. Scoggy, supra, 2009 WL 5216955 at *4. Given plaintiff's total failure to respond to the pending motion and his failure to even deny that he is actively thwarting treatment of his wound, it would be sheer speculation for me to conclude that he is in imminent danger of a serious injury as a result of defendant's conduct. IV. Conclusion Accordingly, for all the foregoing reasons, I find that plaintiff has had three or more prior actions dismissed as being frivolous, malicious or failing to state a claim and that plaintiff's in forma pauperis status should, therfore, be revoked. If your Honor accepts this recommendation, I further recommend that the action be dismissed unless plaintiff pays the filing fee in full within thirty (30) days of your Honor's final resolution of this motion. V. OBJECTIONS Pursuant to 28 U.S.C. § 636(b)(1)(C) and Rule 72(b) of the Federal Rules of Civil Procedure, the parties shall have fourteen (14) days from receipt of this Report to file written objections. See also Fed.R.Civ.P. 6(a). Such objections (and Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 12 of 40
Cash v. Bernstein, Not Reported in F.Supp.2d (2010) 2010 WL 5185047 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 4 responses thereto) shall be filed with the Clerk of the Court, with courtesy copies delivered to the Chambers of the Honorable Barbara S. Jones, United States District Judge, 500 Pearl Street, Room 1920, and to the Chambers of the undersigned, 500 Pearl Street, Room 750, New York, New York 10007. Any requests for an extension of time for filing objections must be directed to Judge Jones. FAILURE TO OBJECT WITHIN FOURTEEN (14) DAYS WILL RESULT IN A WAIVER OF OBJECTIONS AND WILL PRECLUDE APPELLATE REVIEW. Thomas v. Arn, 474 U.S. 140, 155 (1985); United States v. Male Juvenile, 121 F.3d 34, 38 (2d Cir.1997); IUE AFL–CIO Pension Fund v. Herrmann, 9 F.3d 1049, 1054 (2d Cir.1993); Frank v. Johnson, 968 F.2d 298, 300 (2d Cir.1992); Wesolek v. Canadair Ltd., 838 F.2d 55, 57– 59 (2d Cir.1988); McCarthy v. Manson, 714 F.2d 234, 237– 38 (2d Cir.1983). All Citations Not Reported in F.Supp.2d, 2010 WL 5185047 End of Document © 2025 Thomson Reuters. No claim to original U.S. Government Works. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 13 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 1 KeyCite Yellow Flag Distinguished by Great American Insurance Company v. Mowforth, N.D.Cal., January 21, 2021 2018 WL 3443173 United States District Court, S.D. New York. Michael WEIR; Elaine Weir; Jennifer Stasul; Jose Francisco; Individually and on Behalf of All Others Similarly Situated, Plaintiffs, v. CENLAR FSB, d/b/a Central Loan Administration & Reporting; and Cenlar Agency, Inc., Defendants. 16-CV-8650 (CS) | Signed 07/17/2018 Attorneys and Law Firms Rick S. Cowle, The Law Office of Rick S. Cowle P.C., Carmel, New York, Counsel for Plaintiffs. Casey B. Howard, Locke Lord LLP, New York, New York, Counsel for Defendants. OPINION & ORDER CATHY SEIBEL, U.S.D.J. *1 Before the Court is the Motion to Dismiss of Defendants Cenlar FSB, d/b/a Central Loan Administration & Reporting, and Cenlar Agency, Inc. (Doc. 20.) For the foregoing reasons, Defendants' motion is GRANTED. I. BACKGROUND For purposes of this motion, I accept as true the facts, but not the conclusions, set forth in Plaintiffs' Amended Complaint. (Doc. 14 (“AC”).) A. Facts This case arises out of Defendants' conduct in servicing Plaintiffs' mortgages. Plaintiffs allege that Defendants participated in a scheme “aimed at maximizing automated fees assessed on [mortgage] borrowers' accounts who had fallen into arrears on their mortgages.” (Id. ¶ 1.) Defendants are one of the leading mortgage subservicing companies, and as of September 30, 2016, serviced approximately 2.3 million loans totaling $500 billion. (Id. ¶¶ 2, 26.) Plaintiffs bring this action on behalf of themselves and a class of similarly- situated persons, which is defined as “all persons who were charged computer-generated inspection fees by Defendants as a result of a late payment on their mortgage[s].” (Id. ¶ 39.) Plaintiffs do not know the class's exact size, but estimate that it is comprised of thousands of individuals across the United States. (Id. ¶ 41.) Named Plaintiffs Michael and Elaine Weir (the “Weir Plaintiffs”) purchased a home in Fishkill, New York, and the Security Instrument securing their mortgage with lender National City Mortgage, a division of National City Bank, was recorded on September 12, 2006. (Id. ¶ 13; Doc. 22 (“Howard Decl.”) Ex. A at 1-2.) 1 Among its terms, the Instrument provides that “Lender, and others authorized by Lender, may enter on and inspect the Property. They will do so in a reasonable manner and at reasonable times.” (Howard Decl. Ex. A at 9.) The Instrument further stipulates that in the event of default, “Lender may charge ... fees for services performed in connection with [ ] default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection, and valuation fees.” (Id. at 13.) 1 I may consider Plaintiffs' mortgage agreements because they are integral to and referenced in the Amended Complaint, as discussed further below. Named Plaintiffs Jennifer Stasul and Francisco Jorge (“Stasul/Jorge Plaintiffs”) purchased a home in Carmel, New York and the Security Instrument securing their mortgage with lender 1st Alliance Lending, LLC was recorded on June 15, 2009. (AC ¶ 20; Howard Decl. Ex. B at 1.) 2 It provides that “Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default.” (Howard Decl. Ex. B at 5.) It further provides that if the borrower misses payments, “Lender may do ... whatever is necessary to protect the value of the property and Lender's rights in the property,” and any amounts disbursed to do so “shall become an additional debt of Borrower.” (Id. at 6.) 2 The body of the Amended Complaint says Ms. Stasul's husband is Francisco Jorge. (AC ¶ 20.) The caption of the Amended Complaint lists him as Jose Francisco. (Id. at 1.) Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 14 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 2 *2 Both couples' mortgages were serviced by Defendants. (AC ¶¶ 13, 20.) Defendants are Cenlar FSB, which is alleged to be a loan servicing company, (id. ¶ 25), and Cenlar Agency, Inc., which is alleged to be a wholly owned subsidiary of Cenlar FSB and the instrumentality through which Cenlar FSB is authorized to do business in New York, (id. ¶¶ 25-28). Over the life of their loans, Plaintiffs occasionally faced financial difficulty that caused them to miss payments. (Id. ¶¶ 14, 21.) When Plaintiffs failed to make timely payments, their monthly statements reflected additional amounts owed for late fees and inspections of their property. (Id. ¶¶ 15, 22.) For example, while they were working with Defendants on a loan modification and short sale of the premises, the Weir Plaintiffs were assessed inspection fees delineated as “FEE PROPERTY INSPECT” in the amount of $16.25. (Id. ¶ 16.) They were charged three such fees between April 22 and April 23, 2015. (Id. ¶ 17.) They were also charged for “Other Fees” ranging from approximately $120.00 to $275.00 per month, without further explanation. (Id.) The Stasul/Jorge Plaintiffs, who were also working with Defendants on a short sale of the property, were assessed numerous inspection fees also labeled “FEE PROPERY INSPECT” in amounts ranging from $15.00 to $20.00. (Id. ¶ 24.) 3 Plaintiffs allege upon information and belief that Defendants did not always inspect Plaintiffs' properties, but charged them for these inspections nonetheless. (Id. ¶¶ 18, 23.) 3 Paragraph 24 of the Amended Complaint refers to “Ms. Stasul and Mr. Ferdico.” (AC ¶ 24.) This is the only reference to Mr. Ferdico in the Amended Complaint. I assume that Plaintiffs mean to refer to Mr. Jorge. Plaintiffs allege that the charges for inspections and other fees were applied through “an unjust scheme undertaken by the Defendants to maximize profit[s] by ordering repetitive, unfair and excessive property inspections which are then charged to defaulted borrowers' accounts.” (Id. ¶ 29.) Defendants manage and administer their servicing tasks with an automated computer software program called LoanSphere MSP, which was designed to, among other things, “manage borrowers' accounts and assess fees.” (Id. ¶ 31.) If a borrower defaults on a loan, LoanSphere MSP will automatically order property inspections “without regard to actual need,” (id.), and without an employee's determination that a property inspection is “reasonably necessary to protect [Defendants'] interests in the subject property,” (id. ¶ 32). The property inspections are “automatically ordered on a cyclical basis,” “regardless of whether the property has been previously inspected, deemed occupied, well-maintained and in good condition,” until the borrower is no longer in default. (Id. ¶ 33; see id. ¶ 34.) The inspections are completed by an inspector who drives by the property. (Id. ¶ 34.) Plaintiffs allege that the frequency of the property inspections is “excessive and neither reasonable nor appropriate,” (id. ¶ 33), and that Defendants “knowingly misrepresented these unreasonable and excessive inspection fees ... by portraying them as legitimate charges even though the Defendants knew that the inspections were not necessary to maintain or protect the properties or, at times, the inspections did not even occur,” (id. ¶ 36). B. Procedural History *3 Plaintiffs commenced this action on November 7, 2016. (See Doc. 1.) On March 13, 2017, Defendants filed a letter seeking a pre-motion conference to discuss their anticipated motion to dismiss. (Doc. 10.) Plaintiffs responded on April 10, 2017, (Doc. 13), and the parties appeared for a pre-motion conference to discuss the proposed motion on April 17, 2017, (Minute Entry dated Apr. 17, 2017). At that conference, the Court granted Plaintiffs leave to amend, and Plaintiffs filed their Amended Complaint on June 16, 2017, bringing seven causes of action. (Doc. 14.) Counts One and Two allege violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1962(c), (a), and Count Three alleges a conspiracy to violate RICO pursuant to 18 U.S.C. § 1692(d). Plaintiffs allege that Defendants, including their directors, employees and agents, along with their property inspection vendors, formed an association- in-fact enterprise (the “Cenlar Enterprise”), and violated § 1962(c) through mail and wire fraud in violation of 18 U.S.C. §§ 1341, 1343, by charging Plaintiffs unnecessary fees. (AC ¶¶ 48-83.) Plaintiffs further allege that the income Defendants received from their scheme was reinvested to finance the continuing racketeering activity, violating 18 U.S.C. § 1962(a) (id. ¶¶ 84-87), and that Defendants conspired to violate §§ 1962(a) and (c), (id. ¶¶ 88-93). Plaintiffs also bring claims for (1) violation of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1692e(2), (10); (2) violation of the Real Estate Settlement Procedures Act (“RESPA”), 12 U.S.C. §§ 2605, 2607; (3) violation of New York General Business Law (“N.Y. G.B.L.”) § 349(g); and (4) unjust enrichment. (AC ¶¶ 94-127.) In addition to federal question jurisdiction, Plaintiffs assert subject-matter jurisdiction under 28 U.S.C. § 1332(d)(2), known as the Class Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 15 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 3 Action Fairness Act of 2005, Pub. L. 109-2 § 7, 119 Stat. 13 (“CAFA”). (AC ¶¶ 8, 11.) Defendants filed their motion on December 15, 2017. (Doc. 20.) They argue that: (1) Plaintiffs' RICO claims should be dismissed because they fail to plausibly allege a RICO enterprise, a fraudulent misrepresentation, or an injury; (2) Plaintiffs' FDCPA claim fails because Plaintiffs have not plausibly alleged a misrepresentation or deception, or that Defendants are debt-collectors; (3) Plaintiffs' RESPA claim is barred by a one-year statute of limitations and the claim arose after the “inception of a mortgage,” taking it outside the purview of the statute; (4) the N.Y. G.B.L. § 349 claim fails because Plaintiffs have not pleaded any deceptive or misleading act and do not address a “consumer- oriented” practice; and (5) Plaintiffs' unjust enrichment claim is improper because there is a contract governing the relevant issues. (See Doc. 21 (“Ds' Mem.”).) Plaintiffs respond that they have adequately pleaded the alleged enterprise as consisting of Defendants and their inspection vendors; that, by charging Plaintiffs for “FEE PROPERTY INSPECT,” Defendants “create[d] the belief that the automatic and repetitive property inspections [were] reasonable and necessary to protect the lender's security” and that Defendants therefore fraudulently misrepresented “the true nature” of the fees as unreasonable and unnecessary to ensure the houses were occupied; and that they have adequately alleged claims under the FDCPA and N.Y. G.B.L. § 349, and for unjust enrichment. (Doc. 24 (“Ps' Opp.”) at 7, 10-11, 15-25.) 4 4 Plaintiffs fail to respond to Defendants' arguments for dismissal of the RESPA claims. “At the motion to dismiss stage, where review is limited to the pleadings, a plaintiff abandons a claim by failing to address the defendant's arguments in support of dismissing that claim.” Romeo & Juliette Laser Hair Removal, Inc. v. Assara I LLC, No. 08-CV-442, 2014 WL 4723299, at *7 (S.D.N.Y. Sept. 23, 2014); see, e.g.,Silverman v. Miranda, 116 F. Supp. 3d 289, 303 (S.D.N.Y. 2015); Bonilla v. Smithfield Assocs. LLC, No. 09- CV-1549, 2009 WL 4457304, at *4 (S.D.N.Y. Dec. 4, 2009). Because Plaintiffs failed to address Defendants' arguments, their claims under RESPA are dismissed. II. LEGAL STANDARD A. Rule 12(b)(6) Motion “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007) ). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. “While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.”Twombly, 550 U.S. at 555 (alteration, citations, and internal quotation marks omitted). While Federal Rule of Civil Procedure 8 “marks a notable and generous departure from the hyper-technical, code-pleading regime of a prior era, ... it does not unlock the doors of discovery for a plaintiff armed with nothing more than conclusions.” Iqbal, 556 U.S. at 678-79. *4 In considering whether a complaint states a claim upon which relief can be granted, the court “begin[s] by identifying pleadings that, because they are no more than conclusions, are not entitled to the assumption of truth,” and then determines whether the remaining well-pleaded factual allegations, accepted as true, “plausibly give rise to an entitlement to relief.” Id. at 679. Deciding whether a complaint states a plausible claim for relief is “a context- specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. “[W]here the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged —but it has not ‘shown’—‘that the pleader is entitled to relief.’ ” Id. (alteration omitted) (quoting Fed. R. Civ. P. 8(a) (2) ). 5 5 Plaintiffs cite the outdated “no-set-of-facts” motion to dismiss standard. (Ps' Opp. at 5.) This “no set of facts” standard was “retire[d]” by Twombly in 2007. SeeTwombly, 550 U.S. at 563. Nobody should be citing it any longer. B. Documents Properly Considered When deciding a motion to dismiss, a court is entitled to consider: Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 16 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 4 (1) facts alleged in the complaint and documents attached to it or incorporated in it by reference, (2) documents “integral” to the complaint and relied upon in it, even if not attached or incorporated by reference, (3) documents or information contained in defendant's motion papers if plaintiff has knowledge or possession of the material and relied on it in framing the complaint ..., and (5) facts of which judicial notice may properly be taken under Rule 201 of the Federal Rules of Evidence. Weiss v. Inc. Vill. of Sag Harbor, 762 F. Supp. 2d 560, 567 (E.D.N.Y. 2011) (internal quotation marks omitted). To be incorporated by reference, the complaint must make “a clear, definite and substantial reference to the documents.” DeLuca v. AccessIT Grp., Inc., 695 F. Supp. 2d 54, 60 (S.D.N.Y. 2010) (internal quotation marks omitted). “A document is integral to the complaint where the complaint relies heavily upon its terms and effect. Merely mentioning a document in the complaint will not satisfy this standard; indeed, even offering limited quotation[s] from the document is not enough.” Goel v. Bunge, Ltd., 820 F.3d 554, 559 (2d Cir. 2016) (alteration in original) (citation and internal quotation marks omitted). Defendants attach to their counsel's declaration the Weir Plaintiffs' Security Instrument, (Howard Decl. Ex. A), and the Stasul/Jorge Plaintiffs' Security Instrument, (id. Ex. B). Plaintiffs attach the same documents, (Ps' Opp. Exs. C, D), as well as affidavits from the Weir Plaintiffs and the Stasul/ Jorge Plaintiffs, (id. Ex. B). I may consider the Security Instruments because they are referenced in and integral to the Amended Complaint, (see AC ¶¶ 13, 20). SeeVaccaro v. Bank of Am., N.A., No. 13-CV-2484, 2016 WL 4926201, at *1 n.1 (S.D.N.Y. Sept. 15, 2016) (collecting cases). I cannot consider Plaintiffs' affidavits, however, as “[c]ourts ordinarily do not consider factual assertions contained in affidavits submitted in support of or opposition to a motion to dismiss.” Colliton v. Bunt, No. 15-CV-6580, 2016 WL 7443171, at *5 (S.D.N.Y. Dec. 27, 2016), aff'd, 709 Fed.Appx. 82 (2d Cir. 2018); seeFaulkner v. Beer, 463 F.3d 130, 134 n.1 (2d Cir. 2006) (collecting cases). III. DISCUSSION A. RICO Claims Plaintiffs bring claims under three RICO provisions: 18 U.S.C. § 1962(c) (Count One); 18 U.S.C. § 1962(a) (Count Two); and 18 U.S.C. § 1962(d) (Count Three). Section 1962(c) makes it unlawful for “any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeering activity or collection of unlawful debt.” 18 U.S.C. § 1962(c). To state a claim under § 1962(c), a plaintiff must plausibly allege that a defendant engaged in (1) conduct, (2) of an enterprise, (3) through a pattern (4) of racketeering activity (5) resulting in (6) injury to business or property. Anatian v. Coutts Bank (Switz.) Ltd., 193 F.3d 85, 88 (2d Cir. 1999). The requirements of § 1962(c) must be established as to each individual defendant. De Falco v. Bernas, 244 F.3d 286, 306 (2d Cir. 2001). *5 “[A] claim under § 1962(a) has two elements: (1) that the defendant received income from a pattern of racketeering activity; and (2) that the plaintiff was directly harmed by the defendant's use or investment of that income.” U.S. Fire Ins. Co. v. United Limousine Serv., Inc., 303 F. Supp. 2d 432, 448 (S.D.N.Y. 2004). The injury must come from the defendant's “investment of racketeering income in an enterprise,” not from the predicate acts alone. Ouaknine v. MacFarlane, 897 F.2d 75, 82-83 (2d Cir. 1990). Section 1962(d), known as RICO conspiracy, provides that “[i]t shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of” the RICO statute. 18 U.S.C. § 1962(d). Defendants argue that Plaintiffs' civil RICO claims fail for three primary reasons: (1) the members of the enterprise do not share a common purpose; (2) the alleged enterprise is not distinct from its alleged pattern of racketeering; and (3) Plaintiffs failed to plausibly plead a misrepresentation, which is a necessary element of mail and wire fraud. (Ds' Mem. at 6-18.) I agree, and thus all of Plaintiffs' civil RICO claims are dismissed. 6 6 Defendants raise other arguments for dismissal of Plaintiffs' RICO claims, but because the Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 17 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 5 issues regarding the pleaded enterprise and misrepresentations are dispositive, I will not discuss Defendants' remaining arguments. 1. Cenlar Enterprise A RICO “enterprise” is defined as including “any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.” 18 U.S.C. § 1961(4). As the Supreme Court has explained, [t]he enterprise is an entity, for present purposes a group of persons associated together for a common purpose of engaging in a course of conduct.... [It] is proved by evidence of an ongoing organization, formal or informal, and by evidence that the various associates function as a continuing unit.... The “enterprise” is not the “pattern of racketeering activity”; it is an entity separate and apart from the pattern of activity in which it engages. The existence of an enterprise at all times remains a separate element which must be proved .... United States v. Turkette, 452 U.S. 576, 583 (1981); accordFirst Capital Asset Mgmt., Inc. v. Satinwood, Inc., 385 F.3d 159, 173 (2d Cir. 2004). The “enterprise” is distinct from the “person[s]” who participate in the conduct of its affairs. SeeCedric Kushner Promotions, Ltd. v. King, 533 U.S. 158, 161 (2002) (“[T]o establish liability under § 1962(c) one must allege and prove the existence of two distinct entities: (1) a ‘person’; and (2) an ‘enterprise’ that is not simply the same ‘person’ referred to by a different name.”). a. Common Purpose and Distinctness Plaintiffs allege that the Cenlar Enterprise is an association- in-fact enterprise that consists of Defendants, including their directors, employees and agents, along with their property inspection vendors. (AC ¶¶ 55-62; Ps' Opp. at 11-12.) The alleged ultimate aim of the enterprise is to “maximiz[e] their profits by charging unnecessary and repeated default- related fees to Plaintiffs and [c]lass members.” (AC ¶ 58.) By Plaintiffs' account, Defendants made false and misleading statements by failing to disclose that the inspections for which they were charged were unreasonable (or perhaps not performed). (Ps' Opp. at 10-11.) Plaintiffs argue that the vendors and Defendants shared a common purpose of “maximizing profits by ordering unreasonable and unnecessary inspections and imposing excessive fees on the mortgagors who are already burdened by financial obligations they cannot meet.” (Id. at 11.) *6 As in Tardibuono-Quigley v. HSBC Mortg. Corp. (USA), No. 15-CV-6940, 2017 WL 1216925, at *6 (S.D.N.Y. Mar. 30, 2017), which is nearly factually identical to this case, Plaintiffs do “not allege that these third-party vendors own or service mortgages, developed the guidelines for imposing the default-related services, ordered any of the services, or invoiced the borrowers for the services they performed.” There, as here, “[t]he vendors' only role in the alleged enterprise was responding to the automatically-generated work orders. They had no say in when or how those services would be charged to Plaintiff.” Id. As in Tardibuono- Quigley, nothing in the Amended Complaint here suggests that the property inspection vendors “knew that [Defendants'] activities were unnecessary or in breach of contract.” Id. In fact, the vendors are mentioned in only four paragraphs of the Amended Complaint, (AC ¶¶ 57, 60, 61, 109), only two of which explain the vendors' role in the alleged enterprise, (see id. ¶¶ 60, 61). Plaintiffs allege that: Defendants control and operate the Cenlar Enterprise as they, inter alia, establish computer program guidelines that automatically order property inspections by vendors with respect to loans deemed in default without regard to whether such property inspection are necessary; send out vendors to inspect the property regardless of the necessity of said inspections; arrange the uploads of property inspection reports to the automated system; assess fees to borrowers for the unnecessary and repeated property inspections; send statements to the borrowers that are misleading as to the nature of the charged default-related fees; Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 18 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 6 collect payments from said borrowers that include inspection fees; and pay vendors for each property inspection completed using funds received from borrowers. (Id. ¶ 60.) They further allege that the LoanSphere MSP computer system “is a common communication network by which Defendants and the vendors share information,” and allow “Defendants to charge Plaintiffs and Class members unreasonable, excessive and improper fees and to gain from the resulting profits.” (Id. ¶ 61.) Nothing in these allegations suggests that the vendors were aware that the inspections might have been unnecessary, that the costs were passed on to the borrowers, or that that might breach the relevant contracts. To the contrary, Plaintiffs specifically allege that it was Defendants who created the scheme and directed the vendors to inspect properties via an automated computer system. Thus, the vendors do not plausibly share a common purpose with Defendants and cannot help form an enterprise for purposes of civil RICO. SeeTardibuono-Quigley, 2017 WL 1216925, at *6; see alsoCirino v. Bank of Am., N.A., No. 13-CV-8829, 2014 WL 9894432, at *10 (C.D. Cal. Oct. 1, 2014) (RICO claim dismissed where plaintiffs failed to plead that property preservation vendors had common purpose with bank defendant because the former “merely carry out the inspections ordered by Defendants”). Plaintiffs argue—but do not allege in their Amended Complaint—that “[t]hird party vendors have been used as the instrumentality in furtherance of the enterprise's purposes, each unjustly profiting off the backs of unsuspecting borrowers who are already experiencing financial distress.” (Ps' Opp. at 11.) A plaintiff may not amend the complaint via a memorandum of law, Fadem v. Ford Motor Co., 352 F. Supp. 2d 501, 516 (S.D.N.Y. 2005), but in any event, being an “instrumentality” does not thereby mean one shares a common purpose. Defendants allegedly used the mail in furtherance of the scheme, but that would not make the Postal Service of a member of the enterprise. Plaintiffs rely on Young v. Wells Fargo & Co., 671 F. Supp. 2d 1006 (S.D. Iowa 2009), for the proposition that an association-in-fact enterprise exists because Defendants directed the property vendors to engage in proscribed conduct. (Ps' Opp. at 11-12.) There, the court held that “[t]he Complaint sets forth that Wells Fargo and the property inspection vendors formed an association-in-fact enterprise which fulfills the statutory requirements of a RICO enterprise,” and noted that “Congress clearly intended RICO liability to extend to situations where one entity directs the formation of a RICO enterprise and then makes use of the association to further a pattern of unlawful activity.” Young, 671 F. Supp. 2d at 1028. Under this circular reasoning, one entity (e.g., Cenlar FSB) could direct the formation of a RICO enterprise (the Cenlar Enterprise) consisting of itself and third parties (the vendors) even if the latter were unaware of the purpose for which they were joined. Young quoted the Supreme Court to the effect that RICO “protects the public from those who would unlawfully use an ‘enterprise’ ... as a ‘vehicle’ through which unlawful activity is committed,” id. at 1029 (quoting Cedric Kushner Promotions, 533 U.S. at 164-65), but it then seemingly equated the vendors with the enterprise without analyzing whether they shared a common purpose with Wells Fargo, the other member of the enterprise. In so doing, it overlooked not only the common purpose requirement but also that “[t]he enterprise must consist of at least two entities, and must be more than the RICO defendant ‘referred to by a different name.’ ” Cirino, 2014 WL 9894432, at *9 (quoting Cedric Kushner Promotions, 533 U.S. at 161); cf.Tardibuono- Quigley, 2017 WL 1216925, at *7 (enterprise plausibly pleaded notwithstanding vendors' lack of common purpose because there were other alleged members—including bank and servicer—who shared common purpose in fraudulent scheme). In other words, while Plaintiffs may be right that the “[t]hird party vendors [were] used as the instrumentality in furtherance of the enterprise's purposes,” (Ps' Opp. at 11), that does not make the vendors members of the enterprise. *7 With the vendors out of the picture as enterprise members, the only remaining entities in the alleged enterprise are Cenlar FSB, Cenlar Agency, and their directors, employees and agents. (AC ¶ 57.) “Second Circuit law ... holds that a corporation acting in concert and in the ordinary course of business with its agents and employees is not a RICO enterprise, whether or not the agents are external or internal to the corporation,” even where that business is alleged to be fraudulent. In re: Gen. Motors LLC Ignition Switch Litig., Nos. 14-MD-2543, 14-MC-2543, 2016 WL 3920353, at *13 (S.D.N.Y. July 15, 2016) (collecting cases); seeU1it4less, Inc. v. Fedex Corp., 871 F.3d 199, 206 (2d Cir. 2017) (“[A] plaintiff may not circumvent the distinctness requirement by alleging a RICO enterprise that consists merely of a corporate defendant associated with its own employees or agents carrying on the regular affairs of the defendant....”) (internal quotation marks omitted), cert. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 19 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 7 denied, 138 S. Ct. 1559 (2018); Cruz v. FXDirectDealer, LLC, 720 F.3d 115, 121 (2d Cir. 2013) (corporation, chief operating officer and corporate counsel could not form enterprise because complaint merely alleged COO and counsel carried out “the regular affairs of [the corporation], such as day- to-day financial operations, including the implementation and supervision of deceptive trading practices”) (internal quotation marks omitted). And while a corporate agent or employee can be a “person” who conducts the affairs of the corporate “enterprise,” Cedric Kushner Promotions, 533 U.S. at 164, there are no allegations regarding any specific officer or employee responsible for the allegedly fraudulent acts, In re Parlamat Sec. Litig., 479 F. Supp. 2d 332, 347 (S.D.N.Y. 2007) (“[R]eference to unnamed attorneys, accountants and other agents as part of the enterprise cannot be the basis for the distinction between a corporate person and an enterprise.”) (alteration in original) (internal quotation marks omitted), and no such individual is named as a “person” conducting the affairs of the enterprise here. Further, the enterprise cannot consist of Cenlar FSB and Cenlar Agency because Plaintiffs allege that Cenlar Agency is a wholly owned subsidiary of Cenlar FSB “sharing a common office space and common officers with Cenlar [FSB].” (AC ¶ 27.) “[W]holly owned subsidiaries are not distinct from their parent company for the purposes of alleging a RICO enterprise.” Crabhouse of Douglaston Inc. v. Newsday Inc., 801 F. Supp. 2d 64, 78 (E.D.N.Y. 2011); seeCruz, 720 F.3d at 121 (wholly-owned subsidiary not distinct from enterprise consisting of itself and parent because allegations showed only two entities “operate[d] as part of a single, unified corporate structure”); Discon, Inc. v. NYNEX Corp., 93 F.3d 1055, 1064 (2d Cir. 1996) (“It would be inconsistent for a RICO person, acting within the scope of its authority, to be subject to liability simply because it is separately incorporated....”), vacated on other grounds by525 U.S. 128 (1998). 7 Thus, the alleged Cenlar Enterprise is not distinct from the alleged RICO persons, Cenlar FSB and Cenlar Agency. 8 7 If Cenlar Agency and Cenlar FSB were alleged to serve different roles within the Cenlar Enterprise, Plaintiffs might have plausibly pleaded the distinctness requirement. Cf.U1it4less, 871 F.3d at 207 (enterprise not distinct from persons in part because “no evidence show[ed] that any FedEx entity operated outside of a unified corporate structure guided by a single corporate consciousness”). Here, however, the Amended Complaint provides no allegations that Cenlar FSB and Cenlar Agency were anything other than “a unified corporate structure guided by a single corporate consciousness.” Id. Indeed, there are no allegations that Cenlar Agency acted in any role independent either from the alleged Cenlar Enterprise or Cenlar FSB, and essentially no allegations indicating Cenlar Agency's role in the scheme at all. 8 The cases upon which Plaintiffs rely do not convince me otherwise. In each of the cases, the plaintiffs plausibly pleaded that multiple entities and/or persons made up the alleged enterprise. SeeState Farm Mut. Auto. Ins. Co. v. Fayda, No. 14-CV-9792, 2015 WL 4104840, at *1, *2 (S.D.N.Y. June 18, 2015) (enterprise comprised of various entities that operated out of shared medical facility); Mayfield v. Asta Funding, Inc., 95 F. Supp. 3d 685, 699 (S.D.N.Y. 2015) (enterprise consisted of owner, his company, subsidiary, and law firm); Fuji Photo Film U.S.A., Inc. v. McNulty, No. 05- CV-7869, 2009 WL 3334867, at *3 (S.D.N.Y. Oct. 14, 2009) (reaffirming earlier holding that plaintiff had plausibly pleaded an association-in- fact enterprise consisting of defendant, company at which he held managerial positions and vendors controlled by his friends and family who cooperated among themselves) (citing Fuji Photo Film U.S.A., Inc. v. McNulty, 640 F. Supp. 2d 300, 314 (S.D.N.Y. 2009) ); Bias v. Wells Fargo & Co., 942 F. Supp. 2d 915, 941 (N.D. Cal. 2013) (Wells Fargo and affiliated entity, Premiere Asset Services, a middleman company that dealt with vendors, were members of alleged enterprise). Here, however, the only two possible members of the Cenlar Enterprise are Cenlar FSB and Cenlar Agency, and the latter is a wholly-owned subsidiary of the former. Thus, the cases Plaintiffs cite are inapposite. b. Pattern *8 Even if Plaintiffs plausibly pleaded that the Cenlar Enterprise was distinct from the alleged RICO persons, they have failed to allege that it is distinct from the pattern of fraudulent conduct. The non-existence of “an enterprise that is separate and distinct from the fraudulent ... scheme allegedly Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 20 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 8 engaged in by the Defendants ... is fatal to Plaintiffs' RICO claim.” Kottler v. Deutsche Bank AG, 607 F. Supp. 2d 447, 458-59 (S.D.N.Y. 2009). An enterprise is not separate or distinct from the fraudulent scheme if the members “came together strictly for the purpose of creating these allegedly fraudulent” schemes. Id. at 459. Plaintiffs offer no response to Defendants' argument that, even if the vendors were part of the alleged enterprise, it is not separate from the alleged fraudulent scheme. The Amended Complaint lacks even a conclusory allegation as to how the alleged enterprise has an existence apart from the pattern of racketeering activity, and there is nothing in the Amended Complaint to suggest that Cenlar and the vendors came together for some purpose other than conducting the inspections underlying the scheme. Consequently, “[t]he enterprise and the pattern in this case are one and the same,” and the lack of a separate enterprise is fatal to the RICO claims. Kottler, 607 F. Supp. 2d at 459 (dismissing RICO claim because “allegations in the Amended Complaint fall short of alleging a RICO enterprise that existed separate and apart from any pattern of racketeering activity in which the Defendants and co-conspirators engaged”); seeEaves v. Designs for Fin., Inc., 785 F. Supp. 2d 229, 263 (S.D.N.Y. 2011) (RICO claims failed where complaint did not allege association-in-fact that existed separate and apart from alleged racketeering activity); First Nationwide Bank v. Gelt Funding, Corp., 820 F. Supp. 89, 97-98 (S.D.N.Y. 1993) (dismissing RICO claim where plaintiff alleged that “at various times as early as 1985, and possibly earlier ... defendants were associated in fact for the common purpose, among others, of defrauding [plaintiff] through the loan transactions described in this complaint and other means” and that “[t]his association in fact was an ‘enterprise,’ ” because “[c]onclusory allegations that disparate parties were associated in fact ... are insufficient to sustain a RICO claim, absent allegations as to how the members were associated together in an ‘enterprise’ ”), aff'd, 27 F.3d 763 (2d Cir. 1994). Because Plaintiffs fail to plausibly allege that the property inspection vendors shared a common purpose, that the Cenlar Enterprise is distinct from the alleged RICO persons, and that the enterprise is distinct from its pattern of conduct, Plaintiffs' substantive RICO claims fail. 9 9 The claim under Section 1962(a) fails because, as discussed, the enterprise is insufficiently pleaded, and for the additional reason that Plaintiffs do not allege that they suffered any injury from Defendants' reinvestment of their racketeering income. SeeOuaknine, 897 F.2d at 82-83. With respect to Plaintiffs' RICO conspiracy claim, “Section 1962(d) prohibits any person from conspiring to violate any of the substantive provisions of subsections § 1962(a)-(c).” Crabhouse of Douglaston, 801 F. Supp. 2d at 89; see18 U.S.C. § 1962(d). To adequately plead a claim of conspiracy to violate RICO, the underlying substantive claim must also be adequately pleaded. SeeTardibuono-Quigley, 2017 WL 1216925, at *14 (RICO conspiracy claim necessarily fails where underlying substantive claim fails) (collecting cases); Crabhouse of Douglaston, 801 F. Supp. 2d at 89 (same). Accordingly, Plaintiffs' failure to plead a substantive RICO claim, as discussed above, necessarily means that their conspiracy claim is inadequately pleaded and must be dismissed as well. B. FDCPA Defendants argue that Plaintiffs do not sufficiently plead that Defendants are debt collectors within the meaning of the FDCPA. I agree. A “debt collector” is one “who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.” 15 U.S.C. § 1692a(6). Plaintiffs allege in entirely conclusory terms that Defendants are debt collectors, (AC ¶ 97), but present no facts rendering that allegation plausible. “A mortgage servicer is a ‘debt collector’ within the meaning of the FDCPA if the mortgage was in default at the time the servicer began servicing the debt,” but “where a mortgage servicer obtains a loan that is not in default, it is not a debt collector within the meaning of the FDCPA.” Zirogiannis v. Seterus, Inc., 221 F. Supp. 3d 292, 302 (E.D.N.Y. 2016) (collecting cases), reconsideration denied, No. 15-CV-5884, 2017 WL 5508725 (E.D.N.Y. Jan. 13, 2017), aff'd, 707 Fed.Appx. 724 (2d Cir. 2017) (summary order). Plaintiffs do not allege that Defendants became involved only after Plaintiffs' mortgages were in default; to the contrary, the Amended Complaint suggests that, if anything, the mortgages were serviced by Defendants from inception. (AC ¶¶ 13, 20.) Because “the Court is unable to conclude that the [Amended Complaint] contains enough facts to make it plausible that [Defendants] began servicing the [relevant mortgages] only after the [Plaintiffs'] default,” Kilpakis v. JPMorgan Chase Fin. Co., LLC, 229 F. Supp. 3d Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 21 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 9 133, 143 (E.D.N.Y. 2017) (emphasis omitted), and because it is thus not plausible that they are “debt collector[s]” within the meaning of the FDCPA, the FDCPA claim is dismissed. *9 Moreover, even if Defendants were debt collectors under the statute, the claim would still fail. The FDCPA proscribes debt collectors from using “any false, deceptive, or misleading representation or means in connection with the collection of any debt.” 15 U.S.C. § 1692e. “Congress enacted [the] FDCPA ... to eliminate abusive debt collection practices by debt collectors....” Altman v. J.C. Christensen & Assocs., Inc., 786 F.3d 191, 193 (2d Cir. 2015) (internal quotation marks omitted). “It was designed to protect consumers from unscrupulous collectors whether or not there is a valid debt.” Forman v. Acad. Collection Serv., Inc., 388 F. Supp. 2d 199, 202 (S.D.N.Y. 2005). Plaintiffs allege that Defendants violated two subdivisions of Section 1692e: (1) § 1692e(2), which prohibits a “false representation of the character, amount, or legal status of any debt; or any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt;” and (2) § 1692e(10), which makes it a violation to “use ... any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.” In considering whether a collection notice violates § 1962e, the Second Circuit applies the “least sophisticated consumer” standard. SeeClomon v. Jackson, 988 F.2d 1314, 1318 (2d Cir. 1993). This standard “ensure[s] that the FDCPA protects all consumers, the gullible as well as the shrewd.” Id. “The hypothetical least sophisticated consumer does not have the astuteness of a ... lawyer or even the sophistication of the average, everyday, common consumer, but is neither irrational nor a dolt.” Ellis v. Solomon & Solomon, P.C., 591 F.3d 130, 135 (2d Cir. 2010) (internal quotation marks omitted). The least sophisticated consumer inquiry “is to be conducted with a recognition that confusion can occur in ... myriad ... ways, such as when a letter visually buries the required validation notice, contains logical inconsistencies, fails to explain an apparent inconsistency, or presents some combination of these (or similar) vices.” Pollard v. Law Office of Mandy L. Spaulding, 766 F.3d 98, 104 (1st Cir. 2014). Plaintiffs' theory of misrepresentation is that “[b]y issuing mortgage statements to Plaintiffs and Class members, Defendants represented to the Plaintiffs and Class members that all amounts due on these statements were lawful and reasonable,” and thus Defendants “misrepresented to Plaintiffs and Class members in their monthly mortgage statements that all fees, charges and amounts due were lawful and proper.” (AC ¶ 69.) Plaintiffs identify three types of transactions they consider fraudulent: (1) charges ranging from $15.00 to $20.00 listed as “FEE PROPERTY INSPECT” for which inspections were completed, (id. ¶¶ 17, 24); (2) charges listed as “FEE PROPERTY INSPECT” for which Plaintiffs were charged but an inspection was allegedly never completed, (id. ¶¶ 18, 23); and (3) charges for “Other Fees” in amounts ranging from $120.00 to $275.00 per month, (id. ¶ 17). In the event of a default, the Weir Plaintiffs' Security Instrument permits the lender to enter on and inspect the property “in a reasonable manner and at reasonable times,” and to “charge ... fees for services performed in connection with [ ] default ... including, but not limited to, attorneys' fees, property inspection and valuation fees.” (Howard Decl. Ex. A at 9, 13 (emphasis added).) Similarly, the Stasul/ Jorge Plaintiffs' Security Instrument allows, in the event of default, property inspections and action necessary to protect the property, the costs of which “shall become an additional debt of [the] Borrower.” (Id. Ex. B at 5-6.) Few courts have considered whether charging mortgagors for allegedly unreasonable property inspections or other fees in the event of default, and accurately listing these charges on the bill, amounts to an FDCPA violation. See, e.g.,Vega v. Ocwen Fin. Corp., No. 14-CV-4408, 2015 WL 1383241, at *6 (C.D. Cal. Mar. 24, 2015); Benner v. Bank of Am., N.A., 917 F. Supp. 2d 338, 353-54 (E.D. Pa. 2013). The logic regarding misrepresentation as an element of mail or wire fraud pleaded as a predicate act for civil RICO, however, is persuasive here. With respect to the first and third categories listed above, Plaintiffs argue that “they were not expressly obligated under the mortgage agreement to pay for the inspection fees charged” because the inspections were “automatic and repetitive” and unreasonable. (Ps' Opp. at 17.) The alleged deception, according to Plaintiffs, is the charging of unreasonable fees and the failure to disclose that the fees were not reasonable and Plaintiffs were therefore not obligated to pay. (Id.) In Tardibuono-Quigley, this Court rejected in the civil RICO context an identical argument that “Defendants committed fraud by omitting a material fact, i.e., failing to disclose that the assessed fees were unnecessary,” and considered whether charges listed as “AUTO PPTY INSPEC” constituted mail or wire fraud. 2017 WL 1216925, at *3, *11. Relying on an analogous out-of-Circuit case that applied similar reasoning to RICO and FDCPA claims, the Court held that charges for property inspections did not amount to misrepresentations because the plaintiffs' Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 22 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 10 *10 “mortgage agreement explicitly authorizes property inspections and [their] monthly bill[s] while [they were] in default disclosed that [they were] charged for such inspections. While there may be a disagreement regarding the terms in the mortgage agreement, and whether the property inspections were ‘reasonable’ under the mortgage agreement, a mere disagreement does not create additional liability. The failure to concede liability in a billing statement does not then create additional causes of action. It would be absurd for [defendants] to print ‘unnecessary property inspection’ on each billing statement. There is no wrongdoing in [plaintiffs'] billing statement[s] because [defendants] did not concede breach of contract liability.” Tardibuono-Quigley, 2017 WL 1216925, at *11 (emphasis in original) (quoting Vega v. Ocwen Fin. Corp., No. 14- CV-4408, 2015 WL 1383241, at *6 (C.D. Cal. Mar. 24, 2015) ). Similarly here, Plaintiffs' statements included charges for property inspections and “Other Fees,” both of which were permitted in the event of default under the Security Instruments. Property inspections are explicitly permitted under the Security Instrument, (see Howard Decl. Ex. A at 9; id. Ex. B at 5), and the Weir Plaintiffs' instrument clearly permits other fees that are incurred as a result of default, (see id. Ex. A at 10, 13). 10 That Plaintiffs believe —perhaps justifiably so—that Defendants took advantage of those provisions in their mortgage agreements and charged for excessive and unreasonable property inspections does not mean that labeling them for what they were —property inspections and other fees—amounts to false representations. SeeTardibuono-Quigley, 2017 WL 1216925, at *13 (“Defendants did not misrepresent the nature of the fees in any billing statements....”). Nor do Plaintiffs “allege that Defendants charged borrowers any amount in excess of the cost of the inspections....” Id. Thus, without any allegations that Defendants concealed or inflated the charges for property inspection or “Other Fees,” Plaintiffs have failed to plausibly plead an FDCPA violation with respect to the property inspections that were actually performed or the “Other Fee” charges. SeeVega, 2015 WL 1383241, at *14-15 (“[E]very pending case involving property inspection fees includes allegations that the mortgage servicer concealed the fees on the billing statement.”); see alsoBenner, 917 F. Supp. 2d at 354 (dismissing § 1692e(2) claim because plaintiff's mortgage explicitly allowed for property inspections in event of default). 10 Plaintiffs allege that only the Weirs were charged “Other Fees” in amounts higher than the property inspections, (see AC ¶ 17), from which it can be inferred that the “Other Fees” were for some other charge related to default. Regarding the second category listed above—fees charged as “FEE PRPOERTY INSPECT” but for which no inspection was allegedly performed—the Amended Complaint contains insufficient facts rendering it plausible that Plaintiffs were charged for inspections that never occurred. (See AC ¶¶ 18, 23.) Plaintiffs merely repeat that “upon information and belief,” the vendors did not inspect the properties, (see AC ¶¶ 18, 75), and opine that “it is suspect whether inspections actually [took] place,” (seeid. ¶ 34), without any support aside from the fact that Defendants knew the houses were occupied because the parties were working on short sales, (id. ¶¶ 16, 24), which in Plaintiffs' view renders the inspections unnecessary or unreasonable. 11 But given that the alleged purpose of the inspections included ascertaining if the property was being maintained or had been damaged, and the likelihood that occupants who are having trouble paying their mortgage might also have trouble keeping up or repairing their property, the mere fact that the property was occupied does not alone render an inspection irrational—and surely does not show that an inspection never took place. 12 11 In their affidavits in opposition to the instant motion, the Weir Plaintiffs allege that even though they both spent most of their time at home during the relevant period, they never saw a bank representative or inspector come to their home or drive by taking pictures. (Ps' Opp. Ex. B at 2 ¶¶ 6, 9.) Similarly, the Stasul/Jorge Plaintiffs allege that an inspector came to their door once in 2015, but no other inspector has come to their property “to [their] knowledge.” (Id. Ex. B at 3-4 ¶¶ 4-5.) As previously discussed, I cannot consider these affidavits on a motion to dismiss. See supra Section II.B. Even if I could, Plaintiffs allege in their Amended Complaint that the property inspections are “mere ‘drive-by’ inspections, where the inspector drives by the property ostensibly to assess whether the house is occupied, is being maintained and has not been damaged.” (AC ¶ 34.) There are no allegations in the Amended Complaint that the inspectors were tasked with coming to the door or taking pictures of the homes, so if the inspectors were merely Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 23 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 11 driving by the homes for inspection, it is unlikely that Plaintiffs would know whether the inspections were completed or not, unless they were looking out the window all day and the inspectors' cars were somehow identifiable. 12 The closest Plaintiffs come to providing facts suggesting that inspections never took place is their allegation that the Weir Plaintiffs were charged for three property inspections on April 22 and 23, 2015. (Id. ¶ 17.) Three inspections in two days does indeed seem unnecessary and excessive, so much so that one might surmise that they did not all really occur. But the allegation is not that three inspections occurred in two days; rather it is that Defendants billed for three inspections on two dates. Given the absence of any indication that the billing date and the inspection date are necessarily the same, and given that the allegation is a one-off event which could have other plausible explanations (such as belated billing by the vendor), the allegation regarding April 22 and 23, 2015 is insufficient to nudge the allegation that the inspections did not take place “across the line from conceivable to plausible....” Twombly, 550 U.S. at 570. *11 Therefore, because Plaintiffs fail to plausibly plead a misrepresentation or that Defendants are debt collectors, their FDCPA claims are dismissed. 13 13 Even if Plaintiffs' RICO claims did not fail due to their failure to plausibly plead an enterprise, their RICO claims would fail for the same reason as their FDCPA claims—that is, for failure to plead a misrepresentation. SeeTardibuono-Quigley, 2017 WL 1216925, at *13 (“[T]he gravamen of Plaintiff's RICO claims is that HSBC Mortgage breached the Security Agreement by charging fees for unnecessary property inspections.... This conduct, however, does not amount to a RICO violation. Defendants did not misrepresent the nature of the fees in any billing statements, and Plaintiff does not allege that Defendants charged borrowers any amount in excess of the cost of the inspections....”); Vega, 2015 WL 1383241, at *6, *13 (dismissing RICO claim for failure to plead predicate act of mail or wire fraud and noting that “[w]hile there may be a disagreement regarding the terms in the mortgage agreement, and whether the property inspections were ‘reasonable’ under the mortgage agreement, a mere disagreement does not create additional liability”); see alsoBigsby v. Barclays Capital Real Estate, Inc., 170 F. Supp. 3d 568, 576 (S.D.N.Y. 2016) (“The defendants did not owe the plaintiffs some legal duty beyond the obligations contained within the contracts, and the defendants made no misrepresentation collateral or extraneous to the contract.”) (internal quotation marks omitted). C. State Law Claims 1. CAFA Ordinarily, having dismissed all federal claims, I would decline to exercise supplemental jurisdiction over the state claims. SeeKolari v. N.Y.-Presbyterian Hosp., 455 F.3d 118, 122 (citing 28 U.S.C. § 1367(c)(3) ). But Plaintiffs allege that this Court has subject-matter jurisdiction over the state claims under CAFA. (AC ¶ 11.) Defendants argue that Plaintiffs failed to plead that their claims would amount to $5 million in damages, as required under CAFA. (Ds' Mem. at 23 n.5.) Plaintiffs fail to respond to this argument in their opposition brief, and thus I could deem it abandoned. SeeRomeo & Juliette Laser Hair Removal, 2014 WL 4723299, at *7. But the Court has an “independent obligation to determine whether subject matter jurisdiction exists,” Hertz Corp. v. Friend, 559 U.S. 77, 94 (2010); seeHalperin v. Int'l Web Servs., LLC, 70 F. Supp. 3d 893, at 904-05 (N.D. Ill. 2014) (undertaking independent analysis of subject matter jurisdiction under CAFA), so I turn to the merits. “To establish federal jurisdiction under CAFA, [the party asserting jurisdiction] ‘must prove to a reasonable probability’ that (1) there is minimal diversity (meaning at least one defendant and one member of the putative class are citizens of different states); (2) the putative class exceeds 100 people; and (3) the amount in controversy is greater than $5 million.”Fields v. Sony Corp. of Am., No. 13-CV-6520, 2014 WL 3877431, at *1 (S.D.N.Y. Aug. 4, 2014) (quoting Blockbuster, Inc. v. Galeno, 472 F.3d 53, 59 (2d Cir. 2006) ). Defendants take issue with the third requirement—that Plaintiffs have proven to a reasonable probability that their claims exceed $5 million. (Ds' Mem. at 23 n.5.) *12 “[T]he claims of the individual class members shall be aggregated to determine whether the matter in controversy exceeds the sum or value of $5,000,000, exclusive of Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 24 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 12 interest and costs.” Fields, 2014 WL 3877431, at *2; 28 U.S.C. § 1332(d)(6). Courts have held that “[i]n satisfying the ‘reasonable probability’ burden, there is ‘a rebuttable presumption that the face of the complaint is a good faith representation of the actual amount in controversy,’ ” Hart v. Rick's NY Cabaret Int'l, Inc., 967 F. Supp. 2d 955, 961 (S.D.N.Y. 2014) (quoting Colavito v. N.Y. Organ Donor Network, Inc., 438 F.3d 214, 221 (2d Cir. 2006) ), and that to overcome that presumption, Defendants must show that the complaint “was so patently deficient as to reflect a legal certainty that the plaintiff could not recover the amount alleged ...,” Colavito, 438 F.3d at 221 (internal quotation marks omitted). “While the plaintiffs here did not allege a specific damages amount, that is not fatal to their jurisdictional claim.” Bigsby, 170 F. Supp. 3d at 579. Here, Plaintiffs allege that Defendants service approximately 2.3 million loans totaling $500 billion, (AC ¶ 2), and that the class—although its exact size is unknown—is likely comprised of thousands of individuals across the country, (id. ¶ 41). They provide no facts regarding what percentage of these individuals reside in New York. They seek actual damages—property inspection fees ranging from $15-20, and “other fees” ranging from $125-275 —statutory damages, punitive damages, plus interest and attorneys' fees and costs pursuant. (Seeid. ¶ 123; id. at 24-25.) Many cases state that a plaintiff can meet his burden of showing a reasonable probability that the jurisdictional amount is met through a rebuttable presumption arising from the face of the complaint, but they rely on precedent that predates Iqbal and Twombly. See, e.g.,Hart, 967 F. Supp. 2d at 961 (relying on Blockbuster, 472 F.3d 53, and Colavito, 438 F.3d 214). It seems to me that the jurisdictional amount, like any other factual allegation, ought not to receive the presumption of truth unless it is supported by facts rendering it plausible. SeeLapaglia v. Transamerica Cas. Ins. Co., 155 F. Supp. 3d 153, 155 (D. Conn. 2016) (plausibility standard “should ... equally govern the evaluation of factual allegations that support federal subject matter jurisdiction, [including] the amount in controversy”); Wood v. Maguire Auto. LLC, No. 09- CV-0640, 2011 WL 4478485, at *2 (N.D.N.Y. Sept. 26, 2011) (“[T]his face-of-the-complaint presumption is available only if the face of the complaint alleges facts plausibly suggesting the existence of claims aggregating over the jurisdictional minimum amount in controversy.”), aff'd, 508 Fed.Appx. 65 (2d Cir. 2013) (summary order) (“Wood's allegation in her complaint of $75,000 in controversy is conclusory and not entitled to a presumption of truth.”) (citing Iqbal, 556 U.S. at 681); id. (“[I]in the event the complaint does not allege, on its face, facts plausibly suggesting that the amount in controversy exceeds the jurisdictional minimum, the court need not presume that the general allegation that the amount in controversy exceeds the jurisdictional minimum constitutes a good faith representation of the actual amount in controversy.”). Here Plaintiffs have not plausibly alleged that $5 million is in controversy. They allege that Defendants service approximately 2.3 million loans, and that at least thousands of those loans are in default. If just three percent of those 2.3 million loans were in default, and the borrowers were charged property inspection fees of $16 only five times, the amount in controversy would exceed $5 million. But they have provided no information on what percentage of those borrowers are in New York and eligible to pursue the state-law claims alleged. 14 Nor have they provided information on how many times or how frequently they or other class members were charged the challenged fees. 15 So there are insufficient facts to render it plausible that the state law claims involve an amount in controversy exceeding $5 million. Accordingly, I believe the Court lacks subject-matter jurisdiction over those claims. And I decline to exercise supplemental jurisdiction over them. 14 Plaintiffs have not brought claims under the consumer protection statutes of any state other than New York, and while they do not appear to rely on any particular state law in pursuing their unjust enrichment claim, I assume they mean to bring it under New York law because the named Plaintiffs are citizens of New York. (AC ¶¶ 13, 20.) 15 At the same time, Defendants, in arguing that each individual's claim is worth $16, overlooks the fact that many borrowers are in default for months or years on end, and because the inspections are alleged to be ordered “automatically ... on a cyclical basis,” (id. ¶ 33), many borrowers are likely to have the fee imposed more than once. But because the cycle is not described, I cannot determine the number of times the fees were imposed. *13 In an excess of caution, however, and because the Second Circuit has not overruled its pre-Twombly rulings regarding the presumption to be afforded the face of the complaint, and the need for the opposing party to show to a legal certainty that the jurisdictional amount cannot be met, I Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 25 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 13 consider in the alternative the merits of the motion to dismiss the state claims. 2. N.Y. G.B.L. § 349(a) To state a claim under N.Y. G.B.L. § 349, “a plaintiff must allege: (1) the act or practice was consumer-oriented; (2) the act or practice was misleading in a material respect; and (3) the plaintiff was injured as a result.” Spagnola v. Chubb Corp., 574 F.3d 64, 74 (2d Cir. 2009); seeOswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 647 N.E.2d 741, 744 (1995). Defendants argue that Plaintiffs fail to meet the first two requirements. (Ds' Mem. at 21-23.) a. Consumer Oriented With respect to the first element, “[c]onsumer-oriented” does not mean that “the defendant committed the complained- of acts repeatedly—either to the same plaintiff or to other consumers—but instead ... that the acts or practices have a broader impact on consumers at large.” Oswego, 647 N.E.2d at 744. Courts have repeatedly held that a § 349 consumer “is one who purchase[s] goods and services for personal, family or household use.” Exxonmobil Inter-Am., Inc. v. Advanced Info. Eng'g Servs., Inc., 328 F. Supp. 2d 443, 448 (S.D.N.Y. 2004) (alteration in original) (internal quotation marks omitted); seeCruz v. NYNEX Info. Res., 703 N.Y.S.2d 103, 106 (1st Dep't 2000) (“In New York law, the term ‘consumer’ is consistently associated with an individual or natural person who purchases goods, services or property primarily for ‘personal, family or household purposes.’ ”). “ ‘Consumer-oriented’ has been defined in this circuit as ‘conduct that potentially affects similarly situated consumers.’ ” Kapsis v. Am. Home Mortg. Servicing Inc., 923 F. Supp. 2d 430, 449 (E.D.N.Y. 2013) (quoting SQKFC, Inc. v. Bell Atl. TriCon Leasing Corp., 84 F.3d 629, 636 (2d Cir. 1996) ). “Based on this standard, courts have found sufficient allegations of injury to the public interest where plaintiffs plead repeated acts of deception directed at a broad group of individuals.” New York v. Feldman, 210 F. Supp. 2d 294, 301 (S.D.N.Y. 2002) (collecting cases). Defendants argue that because the Weir Plaintiffs and Stasul/ Jorge Plaintiffs have different mortgage agreements, their claims are more akin to private contract disputes, which “ ‘would not fall within the ambit of the statute.’ ” (Ds' Mem. at 23 (quoting Oswego, 647 N.E.2d at 744).) But Plaintiffs plead that all class members have been subjected to similar deceptive conduct in that they all have been charged for unreasonable property inspection fees or other fees. Regardless of the differing nature of the Plaintiffs' Security Instruments, “[i]t is alleged that all [mortgagors] would be subject to the same practices and policies” of charging for unreasonable property inspections. White v. Fein, Such & Crane, LLP, No. 15-CV-438, 2015 WL 6455142, at *6 (W.D.N.Y. Oct. 26, 2015) (denying motion to dismiss § 349 claim because even though defendant entered into private settlement agreements with plaintiffs, defendants were alleged to subject plaintiffs to same policies and practices across class); Kapsis, 923 F. Supp. 2d at 450 (denying motion to dismiss § 349 claim because plaintiff had alleged defendant engaged in deceptive practices directed at large class of similarly situated debtors); cf.N.Y.U. v. Cont'l Ins. Co., 662 N.E.2d 763 (1995) (conduct not consumer- oriented because parties entered into non-standard policy “tailored to meet the purchaser's wishes and requirements” where purchaser was sophisticated and the agreement was heavily negotiated). Thus, at this stage, Plaintiffs have plausibly pleaded that Defendants' actions were consumer- oriented. b. Deceptive Practice *14 “Deceptive practices are acts which are dishonest or misleading in a material respect” and “are defined objectively as acts likely to mislead a reasonable consumer acting reasonably under the circumstances.” Spagnola, 574 F.3d at 74 (alteration and internal quotation marks omitted). “[A] GBL § 349 claim does not lie when the alleged deceptive practice ... was a matter explicitly disclosed in and permitted under ... [a] written agreement.” Tardibuono- Quigley, 2017 WL 1216925, at *15 (alterations in original) (internal quotation marks omitted). Defendants argue that Plaintiffs' § 349(a) claim fails because they failed to plausibly plead a deceptive practice for essentially the same reasons as their RICO and FDCPA claims fail. (Ds' Mem. at 22.) I agree. As previously discussed, supra Section III.B, Plaintiffs were charged for property inspections and other fees, which were represented as such on their billing statements. “[A] party does not violate GBL [§] 349 by simply publishing truthful information and allowing consumers to make their own assumptions about the nature of the information.” Gomez-Jimenez v. N.Y. Law Sch., 956 N.Y.S.2d 54, 59 (1st Dep't 2012); seeTardibuono- Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 26 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 14 Quigley, 2017 WL 1216925, at *15 (dismissing § 349 claims brought under theory that billing statements failed to indicate property inspection charges were unreasonable under mortgage agreements); Hines v. Overstock.com, Inc., No. 09-CV-991, 2013 WL 4495667, at *9 (E.D.N.Y. Aug. 19, 2013) (“New York courts have dismissed claims for having failed to satisfy this element where a defendant fully disclosed the terms and conditions of an alleged deceptive transaction that caused harm to the plaintiff.”); Shovak v. Long Island Commercial Bank, 858 N.Y.S.2d 660, 662-63 (2d Dep't 2008) (dismissing § 349 claim because charges, which were not per se illegal, were fully disclosed to plaintiff). Plaintiffs rely on Bauer v. Mellon Mortg. Co., 680 N.Y.S.2d 397 (Sup. Ct. N.Y. Cty. 1998), aff'd,Walts v. First Union Mortg. Corp., 686 N.Y.S.2d 428 (1st Dep't 1999), to argue that Defendants' failure to disclose that the fees were unreasonable is a deceptive practice under § 349. In Bauer, the court considered the conflict between a mortgage servicer's charges to mortgagors for private mortgage insurance (“PMI”) and a state law regulating when a lender may charge PMI. Id. at 398-99. Under New York law, “a lender may not require a mortgagor to purchase private mortgage insurance ... from an insurer designated by the lender, when the unpaid principal loan amount represents 75% or less of the property's appraised value.” Id. But defendants there—mortgage servicers—did not notify plaintiffs when their unpaid principal balance fell below this threshold set by state law, and continued to charge them for PMI. Id. at 399. The court held because defendants charged plaintiffs for fees that were plainly illegal under state law, plaintiffs had stated a claim under § 349. Id. at 401. Here, however, Plaintiffs are not arguing that the property inspection fees were per se illegal under a state or federal law; rather, they posit that the charges for property inspection fees are unreasonable under their contracts. 16 Federal courts have made a distinction between charges that are themselves illegal under state or federal law and those that may be unreasonable under a contract in determining whether a mortgage servicer's actions were deceptive under § 349. See, e.g.,Mendez v. Bank of Am. Home Loans Servicing, LP, 840 F. Supp. 2d 639, 645, 659 (E.D.N.Y. 2012) (charging allegedly unreasonable property inspection fees not deceptive under § 349 because not violative of state or federal law and mortgage agreement put no limitation other than reasonableness requirement on default-related servicing fees); Lum v. New Century Mortg. Corp., 800 N.Y.S.2d 408, 410 (2d Dep't 2005) (“no materially misleading statement [where fee,] which [was] not per se illegal, was disclosed to the plaintiff”); cf.Cohen v. JP Morgan Chase & Co., 498 F.3d 111, 126-27 (2d Cir. 2007) (allowing § 349 claim to proceed where fees alleged to violate substantive law). Thus, without any plausible allegations that the property inspection fees were per se illegal under some statute, and for the same reasons that Plaintiffs failed to plausibly plead a misrepresentation under RICO or a false representation under the FDCPA, Plaintiffs have failed to plausibly plead a deceptive practice under N.Y. G.B.L. § 349(a). 17 Accordingly, if I had subject matter jurisdiction, I would dismiss the § 349 claim. 16 While Plaintiffs argue that the unreasonable fees, along with other facts, add up to a violation of RICO, RESPA, and the FDCPA (an argument I have rejected), they do not argue that any statute explicitly outlaws such fees. 17 There perhaps could be an argument that the Security Instruments themselves violate N.Y. G.B.L. § 349 because a reasonable mortgagor may decide to enter into a mortgage agreement like those here, believing that lenders would only perform reasonable property inspections, and that the inspections for which Plaintiffs were charged—generated by a computer program— were unreasonable. SeeTardibuono-Quigley, 2017 WL 1216925, at *16. In other words, Plaintiffs might arguably claim they were tricked into entering the agreements. But Defendants here did not sign the Security Instruments and were not otherwise involved in Plaintiffs' decisions to enter into them. The Weir Plaintiffs' Security Instrument was between the Weirs and National City Mortgage, a division of National City Bank, (Howard Decl. Ex. A at 2), and the Stasul/Jorge Plaintiffs' Security Instrument was between Stasul, Jorge, and 1st Alliance Lending, LLC, (id. Ex. B at 2). Thus, Plaintiffs could not sustain a claim against the named Defendants because Plaintiffs failed to allege Defendants “had any role in the events surrounding Plaintiff[s'] decision to enter into the” Security Instruments. Tardibuono-Quigley, 2017 WL 1216925, at *16. *15 3. Unjust Enrichment To state a claim for unjust enrichment under New York law, Plaintiffs must show that “(1) the defendant was enriched; Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 27 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 15 (2) at the expense of the plaintiff; and (3) that it would be inequitable to permit the defendant to retain that which is claimed by Plaintiff.” Reynolds v. Lifewatch, Inc., 136 F. Supp. 3d 503, 524 (S.D.N.Y. 2015). “Unjust enrichment is available only in unusual situations when, though the defendant has not breached a contract nor committed a recognized tort, circumstances create an equitable obligation running from the defendant to the plaintiff.” Mahoney v. Endo Health Sols., Inc., No. 15-CV-9841, 2016 WL 3951185, at *11 (S.D.N.Y. July 20, 2016) (internal quotation marks omitted). “When a valid, enforceable contract exists, courts dismiss unjust enrichment claims because the parties' relationship is said to be governed by the terms of the contract.” Tardibuono-Quigley, 2017 WL 1216925, at *19 (collecting cases). Defendants argue that the mortgage agreements govern the same subject matter as Plaintiffs' unjust enrichment. Plaintiffs disagree and rely on In re Countrywide Fin. Corp. Mortg. Mktg. & Sales Practice Litig., 601 F. Supp. 2d 1201 (S.D. Cal. 2009), where the court held that an unjust enrichment claim could proceed because the plaintiffs alleged that defendants “engaged in a scheme to steer borrowers into subprime mortgages, which were then sold as investments in the secondary mortgage market.” Id. at 1207. The scheme alleged in Countrywide went beyond the terms of the mortgage agreements. Here, there is no dispute that the Security Instruments address property inspection and other fees that arise in the event of default. Indeed, Plaintiffs' “unjust enrichment claims are based exclusively on whether [Defendants] violated contractual terms regarding assessment of property inspection fees.” Ellis v. J.P. Morgan Chase & Co., No. 12-CV-3897, 2016 WL 5815733, at *10 n.11 (N.D. Cal. Oct. 5, 2016). Plaintiffs fail to explain how the unjust enrichment claim falls outside the confines of their Security Agreements. Benner, 917 F. Supp. 2d at 361 (“The agreement addresses numerous topics, including Defendant's ability to charge for property inspections if Plaintiff defaults—as he admittedly did—on his mortgage payments. Plaintiff has a right, of course, to challenge the reasonableness of those charges, but a theory of unjust enrichment is not the proper legal vehicle.”); Tardibuono-Quigley, 2017 WL 1216925, at *19 (dismissing unjust enrichment claim because mortgage agreements governed dispute); Ellis, 2016 WL 5815733, at *11 (same). Further, Plaintiffs have not alleged that they actually paid the fees or facts rendering it plausible that any such fees were retained by the servicer Defendants, as opposed to the lenders. 18 Therefore, if I had subject matter jurisdiction, I would dismiss Plaintiffs' unjust enrichment claim. 18 The original Security Instruments were between Plaintiffs and other lenders. It could be—although it is not alleged—that at some point the original lenders assigned their rights to Defendants. This has been true in other cases where courts have dismissed unjust enrichment claims against servicers because a contract existed between the plaintiffs and the original lender and was later assigned to defendant servicer, even though the named defendant was not a party to the original mortgage agreement. SeeEllis, 2016 WL 5815733, at *4 (loan originated with Washington Mutual and was eventually assigned to defendant); Benner, 917 F. Supp. 2d at 345-46 (loan refinanced with Allied Mortgage Group and later assigned to defendant). If this is not the case here, however, and Defendants are acting as servicers who assist with management of the mortgages but do not receive the actual fees paid by mortgagors, Defendants have not been enriched. In either situation, Plaintiffs have failed to plausibly plead an unjust enrichment claim against Defendants. IV. LEAVE TO AMEND *16 Leave to amend a complaint should be freely given “when justice so requires.” Fed. R. Civ. P. 15(a)(2). It is “within the sound discretion of the district court to grant or deny leave to amend.” McCarthy v. Dun & Bradstreet Corp., 482 F.3d 184, 200 (2d Cir. 2007). “Leave to amend, though liberally granted, may properly be denied for: ‘undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.’ ” Ruotolo v. City of New York, 514 F.3d 184, 191 (2d Cir. 2008) (quoting Foman v. Davis, 371 U.S. 178, 182 (1962) ). Plaintiffs have already amended their complaint, (Doc. 14), after having the benefit of a pre-motion letter outlining the majority of Defendants' proposed grounds for dismissal, (Doc. 10), and my observations during the April 17, 2017 conference. Plaintiffs' failure to fix deficiencies in the previous pleadings, after being provided notice of them, is alone sufficient grounds to deny leave to amend. SeeIn re Eaton Vance Mut. Funds Fee Litig., 380 F. Supp. 2d 222, 242 (S.D.N.Y. 2005) (denying leave to amend because Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 28 of 40
Weir v. Cenlar FSB, Not Reported in Fed. Supp. (2018) 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 16 “the plaintiffs have had two opportunities to cure the defects in their complaints, including a procedure through which the plaintiffs were provided notice of defects in the Consolidated Amended Complaint by the defendants and given a chance to amend their Consolidated Amended Complaint,” and “plaintiffs have not submitted a proposed amended complaint that would cure these pleading defects”), aff'd sub nom.Bellikoff v. Eaton Vance Corp., 481 F.3d 110, 118 (2d Cir. 2007) (“[P]laintiffs were not entitled to an advisory opinion from the Court informing them of the deficiencies in the complaint and then an opportunity to cure those deficiencies.”) (internal quotation marks omitted). Further, Plaintiffs have not sought to amend again or otherwise suggested that they possess facts that would cure the deficiencies identified in this opinion. Accordingly, the Court will not grant leave to amend sua sponte. SeeTechnoMarine SA v. Giftports, Inc., 758 F.3d 493, 505 (2d Cir. 2014) (plaintiff need not be given leave to amend if he fails to specify how amendment would cure the pleading deficiencies in his complaint); Gallop v. Cheney, 642 F.3d 364, 369 (2d Cir. 2011) (district court did not err in dismissing claim with prejudice in absence of any indication plaintiff could or would provide additional allegations leading to different result); see alsoLoreley Fin. (Jersey) No. 3 Ltd. v. Wells Fargo Sec., LLC, 797 F.3d 160, 190 (2d Cir. 2015) (denial of leave to amend would be proper where “request gives no clue as to how the complaint's defects would be cured”) (internal quotation marks omitted). Plaintiffs are attempting to hold Defendants liable under federal law when the gravamen of the complaint is breach of contract. See, e.g.,Tardibuono-Quigley, 2017 WL 1216925, at *11 (“[I]f Defendants charged for un[reasonable] services, they could be deemed to be in breach of the Security Agreement,” but “a breach of contract normally does not constitute the predicate act of mail or wire fraud, or any predicate act for that matter.”). Defendants state in a footnote that “[w]ere Plaintiffs to plead breach of contract, these claims would likewise fail because such inspections are authorized by the Mortgages.” (Ds' Mem. at 9 n.3.) I am not sure that the relevant contracts authorize passing on to borrowers the costs of periodic inspections if, as Plaintiffs allege, those inspections serve no purpose. And it can be a harsh, and perhaps counter-productive, practice. But Plaintiffs did not bring a breach of contract claim, nor did they bring claims against the entities with whom Plaintiffs entered into their Security Instruments. Thus, on the theories alleged in the Amended Complaint, Plaintiffs cannot sustain claims against Defendants. V. CONCLUSION *17 For the reasons stated above, Defendants' motion to dismiss is GRANTED. The Clerk of Court is respectfully directed to terminate the pending motion, (Doc. 20), and close the case. SO ORDERED. All Citations Not Reported in Fed. Supp., 2018 WL 3443173, RICO Bus.Disp.Guide 13,057 End of Document © 2025 Thomson Reuters. No claim to original U.S. Government Works. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 29 of 40
McKie v. Kornegay, Not Reported in Fed. Rptr. (2022) 2022 WL 4241355 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 1 2022 WL 4241355 Only the Westlaw citation is currently available. United States Court of Appeals, Second Circuit. Christopher MCKIE, Plaintiff-Appellant, v. Charles KORNEGAY, Irene Kornegay, Defendants-Appellees. 1 1 The Clerk of Court is respectfully directed to amend the caption as set forth above. 21-1943 | September 15, 2022 Appeal from a judgment of the United States District Court for the Eastern District of New York (Matsumoto, J.). UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the judgment of the district court is VACATED IN PART and AFFIRMED IN PART, and the appeal is DISMISSED IN PART. Attorneys and Law Firms For Plaintiff-Appellant: Christopher McKie, pro se, Brooklyn, New York. For Defendants-Appellees: William V. DeCandido, William V. DeCandido, PC, Forest Hills, New York. Present: Debra Ann Livingston, Chief Judge, Barrington D. Parker, Eunice C. Lee, Circuit Judges. SUMMARY ORDER *1 Appellant Christopher McKie, proceeding pro se, appeals from the August 2, 2021 order of the United States District Court for the Eastern District of New York (Matsumoto, J.), dismissing his claims with prejudice. McKie brought claims against the estate of Doris Dickinson, Charles Kornegay (“Charles”) in his official capacity as administrator of the estate and in his individual capacity, and Irene Kornegay (“Irene”), asserting common law tort and contract claims premised on McKie's allegation that he was entitled to estate assets. The district court found that it lacked subject matter jurisdiction because the parties were not diverse, that it would also lack subject matter jurisdiction over many claims under the probate exception to federal diversity jurisdiction, and that the complaint in any event failed to state a claim. For the following reasons, the judgment of the district court is VACATED IN PART and AFFIRMED IN PART, and the appeal is DISMISSED IN PART. We assume the parties’ familiarity with the underlying facts, the procedural history, and the issues on appeal, which we reference here only as necessary to explain our decision. I. Subject Matter Jurisdiction On appeal from a dismissal for lack of subject matter jurisdiction, we review the district court's factual findings for clear error and its legal conclusions de novo. Makarova v. United States, 201 F.3d 110, 113 (2d Cir. 2000). We “have an independent obligation to determine whether subject-matter jurisdiction exists, even when no party challenges it.” Hertz Corp. v. Friend, 559 U.S. 77, 94 (2010). Federal subject matter jurisdiction is available when a federal question is presented, or when the parties are diverse and the amount in controversy exceeds $75,000. 28 U.S.C. §§ 1331, 1332. McKie's complaint cites the statutes for both federal question and diversity jurisdiction. 2 However, McKie's brief does not identify any basis for federal question jurisdiction, and none is apparent—McKie's causes of action are state law tort and contract claims. 2 On appeal, McKie also argues that the district court should have considered whether jurisdiction existed under 28 U.S.C. §§ 1335 and 1343(a), but he fails to explain how either statute is applicable to this case. See 28 U.S.C. §§ 1343(a), 1335 (jurisdiction over certain civil rights and interpleader actions). Diversity jurisdiction requires that the case be between “citizens of different States,” 28 U.S.C. § 1332(a)(1), meaning “that there must be complete diversity, i.e., that each plaintiff's citizenship must be different from the citizenship of each defendant,” Hallingby v. Hallingby, 574 F.3d 51, 56 (2d Cir. 2009). “An individual's citizenship, within the meaning of the diversity statute, is determined by his domicile.” Van Buskirk v. United Grp. of Cos., Inc., 935 F.3d 49, 53 (2d Cir. 2019) (quotation marks and citations omitted). The diversity statute specifies that “the legal representative of the estate of a Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 30 of 40
McKie v. Kornegay, Not Reported in Fed. Rptr. (2022) 2022 WL 4241355 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 2 decedent shall be deemed to be a citizen only of the same State as the decedent.” 28 U.S.C. § 1332(c)(2). The citizenship of the estate itself is, likewise, established by the citizenship of the decedent. See Moore v. N. Am. Sports, Inc., 623 F.3d 1325, 1327 n.2 (11th Cir. 2010) (citing § 1332(c)(2)). *2 McKie does not dispute that he is domiciled in New York, nor that Dickinson was domiciled in New York when she died. Instead, he argues that the district court overlooked that he also sued Irene and Charles, both South Carolina residents, individually. However, because McKie shared citizenship with any of the defendants, the district court lacked subject matter jurisdiction. See Hallingby, 574 F.3d at 56. Having properly concluded that it lacked subject matter jurisdiction, the district court proceeded to consider the merits and dismiss the complaint with prejudice for failure to state a claim. That was error. A dismissal for lack of subject matter jurisdiction must be without prejudice, because “without jurisdiction, the district court lacks the power to adjudicate the merits of the case.” Carter v. HealthPort Techs., LLC, 822 F.3d 47, 54–55 (2d Cir. 2016). Accordingly, the district court's dismissal with prejudice of claims over which it found it lacked subject matter jurisdiction must be vacated. Nevertheless, since the district court has already issued a final judgment over the remaining claims, we cure part of the jurisdictional defect here in the interest of finality, efficiency, and economy. See United Republic Ins. Co., in Receivership v. Chase Manhattan Bank, 315 F.3d 168, 170 (2d Cir. 2003) (“Once a district court has proceeded to final judgment, considerations of finality, efficiency, and economy become overwhelming, and federal courts must salvage jurisdiction where possible.” (quotation marks and citations omitted)). To salvage jurisdiction, we dismiss the nondiverse defendants (i.e., the estate and Charles in his official capacity as administrator). See Fed. R. Civ. P. 21 (“On motion or on its own, the court may at any time, on just terms, add or drop a party.”); Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 837 (1989) (recognizing that “courts of appeals have the authority to dismiss a dispensable nondiverse party” under Rule 21); E.R. Squibb & Sons, Inc. v. Lloyd's & Cos., 241 F.3d 154, 163 (2d Cir. 2001) (“[W]here a change in parties, necessary to the existence of jurisdiction, is appropriate and is made (even on or after appeal), appellate courts have acted as if the trial court had jurisdiction from the beginning of the litigation.”). To the extent that McKie seeks damages from Charles and Irene for their personal tortious conduct, the estate and its administrator are not necessary because the case can proceed “in equity and good conscience” without them. Fed. R. Civ. P. 19(b). The Supreme Court has cautioned that the appellate courts’ authority to dismiss parties “should be exercised sparingly,” and that remand may be required to resolve factual disputes as to whether the dismissal of a nondiverse party will prejudice other parties. Newman-Green, 490 U.S. at 837. Here, Charles and Irene will only benefit from the finality of a dismissal with prejudice, and McKie and the nondiverse defendants would be in the same position whether those defendants are severed from this case or this case is dismissed in its entirety without prejudice. Still, we agree with the district court that the probate exception to diversity jurisdiction bars some of McKie's claims against Irene and Charles in their individual capacities. Under the probate exception, a federal court cannot exercise diversity jurisdiction over a complaint that seeks to (1) “administer an estate, probate a will, or do any other purely probate matter” or (2) “to reach a res in the custody of a state court.” Lefkowitz v. Bank of N.Y., 528 F.3d 102, 106 (2d Cir. 2007) (quotation marks, alterations, and emphasis omitted). The exception does not apply to actions that “seek[ ] damages from Defendants personally rather than assets or distributions from [the] estate,” even if they are “intertwine[d]” with a probate action. Id. at 107–08. We agree with the district court's analysis that McKie's claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, conversion, unjust enrichment, quantum meruit, and indebitatus assumpsit are barred by the probate exception because they essentially “seek[ ] to mask in claims for federal relief ... complaints about the maladministration of [the estate]” and “[t]o provide the relief Plaintiff seeks ... the federal court would have to assert control over property that remains under the control of the state courts.” Id. at 107. However, the probate exception does not bar McKie's claims for fraudulent misrepresentation, fraudulent concealment, and tortious interference, which seek compensatory and punitive damages from Charles and Irene in their individual capacities. *3 We therefore dismiss the estate and Charles in his official capacity from this action and proceed to consider the merits of the remaining claims against Charles and Irene in their individual capacities. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 31 of 40
McKie v. Kornegay, Not Reported in Fed. Rptr. (2022) 2022 WL 4241355 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 3 II. Merits “We review a district court's grant of a motion to dismiss de novo, accepting as true all factual claims in the complaint and drawing all reasonable inferences in the plaintiff's favor.” Altimeo Asset Mgmt. v. Qihoo 360 Tech. Co., 19 F.4th 145, 147 (2d Cir. 2021) (quotation marks and citation omitted). Upon review of the record and relevant case law, we conclude that the district court's dismissal with prejudice of the remaining claims was correct. We affirm for substantially the same reasons stated by the district court in its August 2, 2021 memorandum and order, where it considered McKie's claims for fraudulent misrepresentation, fraudulent concealment, and tortious interference. III. Denial of Leave to Amend Finally, the district court did not err in denying leave to amend. We review such denials for abuse of discretion, unless the denial is “based on an interpretation of law.” Allen v. Credit Suisse Sec. (USA) LLC, 895 F.3d 214, 227 (2d Cir. 2018) (quotation marks and citation omitted). A district court generally should not dismiss a pro se complaint without granting at least one opportunity to amend, but amendment should be denied where the complaint gives no “indication that a valid claim might be stated.” Cuoco v. Moritsugu, 222 F.3d 99, 112 (2d Cir. 2000) (citation omitted). McKie does not explicitly challenge the denial of leave to amend in his appellate brief, but he does argue that the district court erred in denying a claim for an accounting, which he had identified as a claim that might be raised in an amended complaint. Such a claim relates to the estate and its administrator, and raising it would destroy the federal courts’ diversity jurisdiction. * * * Accordingly, the district court's dismissal with prejudice is VACATED in part and we DISMISS, without prejudice, all claims against the estate of Doris Dickinson and its administrator in his official capacity and all claims against Charles and Irene Kornegay that fall under the probate exception. As to the remaining claims against Charles and Irene Kornegay in their individual capacities, we have considered all of McKie's arguments and find them to be without merit. Accordingly, we AFFIRM the judgment of the district court in remaining part to dismiss those claims with prejudice. All Citations Not Reported in Fed. Rptr., 2022 WL 4241355 End of Document © 2025 Thomson Reuters. No claim to original U.S. Government Works. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 32 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 1 2012 WL 1977972 Only the Westlaw citation is currently available. United States District Court, N.D. New York. Jason S. PLANCK, Plaintiff, v. SCHENECTADY COUNTY, et al., Defendants. No. 1:12–CV–0336(GTS/DRH). | June 1, 2012. Attorneys and Law Firms Jason S. Planck, of Counsel, Schenectady, NY, pro se. Goldberg Segalla LLP, Jonathan M. Bernstein, Esq., William J. Greagan, Esq., of Counsel, Albany, NY, for Defendants. MEMORANDUM–DECISION and ORDER GLENN T. SUDDABY, District Judge. *1 Currently pending before the Court, in this pro se civil rights action filed by Jason S. Planck (“Plaintiff”) against Schenectady County and fifteen of its legislators (“Defendants”), are the following four motions: (1) Plaintiff's motion for reconsideration of the Court's Decision and Order of February 29, 2012, denying his motion for a temporary restraining order (Dkt. No. 10); (2) Plaintiff's motion for a report from the Court regarding the status of his motion for reconsideration (Dkt. No. 30); (3) Plaintiff's motion for a preliminary injunction (Dkt. No. 4); and (4) Defendants' cross-motion to dismiss Plaintiffs' Complaint (Dkt. No. 17). For the reasons set forth below, Plaintiffs' three motions are denied; and Defendants' cross-motion is granted. I. RELEVANT BACKGROUND A. Plaintiff's Claims Generally, when construed with the utmost of special liberality, Plaintiff's Complaint asserts three civil rights claims against Defendants-one claim asserting a violation of Rehabilitation Act of 1973, and two claims asserting violations of the Americans with Disabilities Act-arising from Schenectady County's (“the County”) approval of a project labor agreement (to construct a new nursing home) that permits the hiring of only unionized construction workers, thus discriminating against qualified nonunionized construction workers with disabilities. (See generally Dkt. No. 1.) Because this Decision and Order is intended primarily for the review of the parties, and because Defendants (in their memorandum of law) accurately describe the claims and factual allegations asserted in Plaintiff's Complaint, the Court will not describe those claims and factual allegations in detail in this Decision and Order. Rather, the Court will refer the reader to pages 1 through 3 of Defendants' memorandum of law and paragraphs 2 through 4, and 7 through 44, of Plaintiff's Complaint. (Dkt. No. 17, Attach. 11, at 6–8 [attaching pages “1” through “3” of Defs.' Memo. of Law]; Dkt. No. 1, at ¶¶ 2–4, 7–44.) B. Briefing on the Parties' Motions Because the parties have demonstrated in their memoranda of law an adequate understanding of the legal arguments asserted in each other's motions, the Court need not, and does not, describe in detail those arguments in this Decision and Order. Rather, the Court will simply make two points. First, generally, in their cross-motion to dismiss, Defendants assert the following three arguments: (1) Plaintiff's Complaint should be dismissed under Fed.R.Civ.P. 12(b)(1), because (a) the Court lacks subject-matter jurisdiction over Plaintiff's challenge to the County's project labor agreement (which must be presented by Plaintiff in an Article 78 proceeding in state court), and (b) Plaintiff, who is not a qualified construction worker but merely a taxpayer, lacks standing to challenge the County's approval of the project labor agreement; (2) in the alternative, Plaintiff's Complaint should be dismissed for failure to state a claim upon which relief can be granted under Fed.R.Civ.P. 12(b)(6), because Plaintiff has failed to allege facts plausibly suggesting the elements of a claim under either Rehabilitation Act of 1973 or the Americans with Disabilities Act (particularly the element requiring that he be a qualified individual with a disability); and (3) in the alternative, Plaintiff's claims against the legislative Defendants should be dismissed for failure to state a claim upon which relief can be granted under Fed.R.Civ.P. 12(b)(6), because, based on Plaintiff's own factual allegations, those claims are either duplicative of Plaintiff's claims against the County or barred as a matter of law by the doctrine of legislative immunity. (Dkt. No. 17, Attach. 11, at 8–22 [attaching pages “3” through “17” of Defs.' Memo. of Law].) Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 33 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 2 *2 Second, in this District, when a party files a dispositive motion (such as a motion for a preliminary injunction), 1 that party is not entitled to file a surreply. N.D.N.Y. L.R. 7.1(b)(1). Furthermore, when a party files a nondispositive motion (such as a motion for reconsideration), that party is not even entitled to file a reply, without prior leave of the Court. N.D.N.Y. L.R. 7.1(b)(2). Finally, when a party files a cross-motion (such as a cross-motion to dismiss), that party is not entitled to file a reply on its cross-motion without prior leave of the Court. N.D.N.Y. L.R. 7.1(c). Even if it were permitted to file a reply, that reply may address only the party's own cross-motion, and not the opponent's original motion; otherwise, the “reply” would, in part, constitute a surreply. 2 Here, the parties have violated each of these rules, in addition to violating several filing deadlines. (Dkt. Nos. 23, 25, 31, 32; see also Text Notices filed March 9, 2012, and Apr. 2, 2012.) 3 As a result, the submissions contained in Docket Numbers 23, 25, 31 and 32 will not be considered by the Court. The Court would add only that, even if it were to consider the submissions, that consideration would not change the outcome of this Decision and Order. 1 See Odom v. Senkowski, 96–CV–0554, 1997 WL 458450, at *1 (N . D.N.Y. Aug. 7, 1997) (Pooler, D.J.) (“Because Odom's request for a preliminary injunction is a dispositive motion, the magistrate judge's recommendations require de novo review.”). 2 See Carlwood Dev. Inc. v. U.S., 10–CV–1773, 2011 WL 69374, at *1 (D.Nev. Jan. 10, 2011) (denying petitioner's motion to strike government's improper “cross-motion”—which did not “address[ ] any matters even remotely indicative of a motion for summary judgment” but rather merely responded to the matters raised by the petitioners in their opening brief-because “rather than striking any portion of the [‘cross-motion’] itself, the Court will merely construe [it] as only a response to the [petitioner's] opening brief, and not a cross- motion,” and strike the government's unauthorized reply on its improper cross-motion as “nothing more than a disingenuous attempt to get the last word”). 3 The Court notes that, on February 28, 2012, Plaintiff receive a courtesy copy of the Local Rules of Practice for this Court. (See Docket Entry dated Feb. 28, 2012; Dkt. No. 9.) II. ANALYSIS A. Motion for Reconsideration Generally, there are only three grounds upon which a district court may justifiably reconsider its previous ruling: (1) an intervening change in controlling law, (2) new evidence, or (3) a demonstrated need to correct a clear error of law or to prevent manifest injustice. U.S. v. Sanchez, 35 F.3d 673, 677 (2d Cir.1994), cert. denied, 514, U.S. 1038 (1995). Here, after carefully considering the matter, Plaintiff's motion for reconsideration is denied for each of the numerous reasons offered by Defendants in their memorandum of law: Plaintiff has not satisfied the above-described standard. (Dkt. No. 17, Attach. 11, at 15–18 [attaching pages “10” through “13” of Defs.' Memo. of Law].) The Court would add two alternative grounds for the denial of Plaintiff's motion. First, Plaintiff's motion is unsupported by a memorandum of law that is separate and apart from an affidavit, in violation of Local Rule 7.1. The Court notes that an affidavit may not contain legal argument. N.D.N.Y. L.R. 7.1(a)(2). Second, Plaintiff's motion is moot in that it seeks an order restraining Defendants from acting between a discrete time period (i.e., the time of the Court's decision on Plaintiff's motion a temporary restraining order and the time of the Court's decision on Plaintiff's motion for a preliminary injunction), which has, as of the date of this Decision and Order, already expired. Finally, the Court notes that Plaintiff's motion for reconsideration also requested oral argument, and/or an expedited decision, on Plaintiff's motion for reconsideration. That request is denied as unsupported by a showing of cause and/or moot. B. Motion for a Status Report from the Court *3 After carefully considering the matter, Plaintiff's motion for a status report from the Court is denied as unsupported by a showing of cause and/or moot. C. Motion for a Preliminary Injunction Generally, the issuance of a preliminary injunction pursuant to Fed.R.Civ.P. 65 depends on the movant's demonstration of (1) irreparable harm and (2) either a likelihood of success on Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 34 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 3 the merits, or a sufficiently serious question as to the merits of the case to make it a fair ground for litigation and a balance of hardships tipping decidedly in its favor. Tom Doherty Assoc., Inc. v. Saban Entm't, Inc., 60 F.3d 27, 33 (2d Cir.1995). Here, after carefully considering the matter, Plaintiff's motion for a preliminary injunction is denied for each of the numerous reasons offered by Defendants in their memorandum of law: Plaintiff has not satisfied the above- described standard: on the current record, Plaintiff has not established either irreparable harm or a likelihood of success on the merits. (Dkt. No. 17, Attach. 11, at 18–22 [attaching pages “13” through “17” of Defs.' Memo. of Law] .) Of particular concern to the Court is this latter deficiency (i.e., Plaintiff's failure to show a likelihood of success on the merits), which is exacerbated by the various substantive pleading defects in his Complaint. The Court would add only that, even setting aside these pleading defects, following the Court's denial of Plaintiff's motion for a temporary restraining order, Plaintiff did not supplement the record with the sufficient evidence to warrant a contrary finding. (Compare Dkt. No. 1 and Dkt. No. 4 with Dkt. No. 10 and Dkt. No. 22.) D. Defendants' Cross–Motion to Dismiss 1. Legal Standard Governing Dismissal for Lack of Subject–Matter Jurisdiction Pursuant to Fed.R.Civ.P. 12(b)(1) “It is a fundamental precept that federal courts are courts of limited jurisdiction.” Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365, 374 (1978). Generally, a claim may be properly dismissed for lack of subject-matter jurisdiction where a district court lacks constitutional or statutory power to adjudicate it. Makarova v. U.S., 201 F.3d 110, 113 (2d Cir.2000). A district court may look to evidence outside of the pleadings when resolving a motion to dismiss for lack of subject-matter jurisdiction. Makarova, 201 F.3d at 113. The plaintiff bears the burden of proving subject-matter jurisdiction by a preponderance of the evidence. Makarova, 201 F.3d at 113 (citing Malik v. Meissner, 82 F.3d 560, 562 [2d Cir.1996] ). When a court evaluates a motion to dismiss for lack of subject-matter jurisdiction, all ambiguities must be resolved and inferences drawn in favor of the plaintiff. Aurecchione v. Schoolman Transp. Sys., Inc., 426 F.3d 635, 638 (2d Cir.2005) (citing Makarova, 201 F .3d at 113). The Court notes that challenges to a litigant's standing are properly raised on a motion for lack of subject-matter jurisdiction. See Alliance for Envtl. Renewal, Inc. v. Pyramid Crossgates Co., 436 F.3d 82, 88–89 & n. 6 (2d Cir.2006) (“Although we have noted that standing challenges have sometimes been brought under Rule 12(b)(6), as well as Rule 12(b)(1), ... the proper procedural route is a motion under Rule 12(b)(1).”); A.C. v. Mattingly, 05–CV–2986, 2007 WL 894268, at *3 (S.D.N.Y. March 20, 2007) (“The argument of lack of standing is properly raised under Rule 12(b)(1).”). 2. Legal Standard Governing Dismissal for Failure to State a Claim Upon Which Relief Can Be Granted, Pursuant to Fed.R.Civ.P. 12(b)(6) *4 It has long been understood that a dismissal for failure to state a claim, pursuant to Fed.R.Civ.P. 12(b)(6), may be based on either or both of two grounds: (1) a challenge to the “sufficiency of the pleading” under Fed.R.Civ.P. 8(a) (2); or (2) a challenge to the legal cognizability of the claim. Jackson v. Onondaga County, 549 F.Supp.2d 204, 211, nn. 15–16 (N.D.N.Y.2008) (McAvoy, J., adopting Report– Recommendation on de novo review) [citations omitted]. With regard to the first ground, Fed.R.Civ.P. 8(a)(2) requires that a pleading contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2) [emphasis added]. By requiring this “showing,” Fed.R.Civ.P. 8(a)(2) requires that the pleading contain a short and plain statement that “give[s] the defendant fair notice of what the plaintiff's claim is and the grounds upon which it rests.” Jackson, 549 F.Supp.2d at 212, n. 17 [citations omitted]. The main purpose of this rule is to “facilitate a proper decision on the merits.” Id. at 212, n. 18 [citations omitted]. 4 4 See also Simmons v. Abruzzo, 49 F.3d 83, 86 (2d Cir.1995) ( “Fair notice is that which will enable the adverse party to answer and prepare for trial, allow the application of res judicata, and identify the nature of the case so it may be assigned the proper form of trial.”) [citation omitted]; Salahuddin v. Cuomo, 861 F .2d 40, 42 (2d Cir.1988) (“[T]he principle function of pleadings under the Federal Rules is to give the adverse party fair notice of the claim asserted so as to enable him to answer and prepare for trial.”) [citations omitted]. The Supreme Court has long characterized this pleading requirement under Fed.R.Civ.P. 8(a)(2) as “simplified” and “liberal,” and has repeatedly rejected judicially established pleading requirements that exceed this liberal requirement. Id. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 35 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 4 at 212, n. 20 [citations omitted]. However, even this liberal notice pleading standard “has its limits.” Id. at 212, n. 21 [citations omitted]. As a result, numerous Supreme Court and Second Circuit decisions exist holding that a pleading has failed to meet this liberal notice pleading standard. Id. at 213, n. 22 [citations omitted]; see also Ashcroft v. Iqbal, 129 S.Ct. 1937, 1949–52 (2009). Most notably, in Bell Atlantic Corp. v. Twombly, the Supreme Court reversed an appellate decision holding that a complaint had stated an actionable antitrust claim under 15 U.S.C. § 1. Bell Atlantic Corp. v. Twombly, 127 S.Ct. 1955 (2007). In doing so, the Court “retire[d]” the famous statement by the Court in Conley v. Gibson, 355 U.S. 41, 45–46 (1957), that “a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Twombly, 127 S.Ct. at 1968–69. Rather than turning on the conceivability of an actionable claim, the Court clarified, the “fair notice” standard turns on the plausibility of an actionable claim. Id. at 1965–74. The Court explained that, while this does not mean that a pleading need “set out in detail the facts upon which [the claim is based],” it does mean that the pleading must contain at least “some factual allegation [s].” Id . at 1965 [citations omitted]. More specifically, the “[f]actual allegations must be enough to raise a right to relief above the speculative level [to a plausible level],” assuming (of course) that all the allegations in the complaint are true. Id. [citations omitted]. 5 5 See also Iqbal v. Hasty, 490 F.3d 143, 157–58 (2d Cir.2007) ( “[The Supreme Court] is not requiring a universal standard of heightened fact pleading, but is instead requiring a flexible ‘plausibility standard,’ which obliges a pleader to amplify a claim with some factual allegations in those contexts where such amplification is needed to render the claim plausible.” ). *5 As have other Circuits, the Second Circuit has recognized that the clarified plausibility standard that was articulated by the Supreme Court in Twombly governs all claims, including claims brought by pro se litigants (although the plausibility of those claims is to be assessed generously, in light of the special solicitude normally afforded pro se litigants). 6 It should be emphasized that Fed.R.Civ.P. 8's plausibility standard, explained in Twombly, was in no way retracted or diminished by the Supreme Court's decision (two weeks later) in Erickson v. Pardus, in which (when reviewing a pro se pleading) the Court stated, “Specific facts are not necessary” to successfully state a claim under Fed.R.Civ.P. 8(a)(2). Erickson v. Pardus, 127 S.Ct. 2197, 2200 (2007) [citation omitted; emphasis added]. That statement was merely an abbreviation of the often-repeated point of law—first offered in Conley and repeated in Twombly—that a pleading need not “set out in detail the facts upon which [the claim is based]” in order to successfully state a claim. Twombly, 127 S.Ct. 1965, n. 3 (citing Conley, 355 U.S. at 47) [emphasis added]. That statement did not mean that all pleadings may achieve the requirement of “fair notice” without ever alleging any facts whatsoever. Clearly, there must still be enough fact set out (however set out, whether in detail or in a generalized fashion) to raise a right to relief above the speculative level to a plausible level. 7 6 See, e.g., Jacobs v. Mostow, 271 F. App'x 85, 87 (2d Cir. March 27, 2008) (in pro se action, stating, “To survive a motion to dismiss, a complaint must plead ‘enough facts to state a claim to relief that is plausible on its face.’ ”) [citation omitted] (summary order, cited in accordance with Rule 32.1[c][1] of the Local Rules of the Second Circuit); Boykin v. KeyCorp., 521 F.3d 202, 215– 16 (2d Cir.2008) (finding that borrower's pro se complaint sufficiently presented a “plausible claim of disparate treatment,” under Fair Housing Act, to give lenders fair notice of her discrimination claim based on lenders' denial of her home equity loan application) [emphasis added]. 7 For example, in Erickson, the Supreme Court held that, because the plaintiff-prisoner had alleged that, during the relevant time period, he suffered from hepatitis C, he had alleged facts plausibly suggesting that he possessed a sufficiently serious medical need for purposes of an Eighth Amendment claim of inadequate medical care. Erickson, 127 S.Ct. at 2199–2200. Expressed differently, the Court held that such a plaintiff need not also allege that he suffered an independent and “substantial injury” as a result of the termination of his hepatitis C medication (a requirement that had been imposed by the district court). This point of law is hardly a novel one, which is presumably why the Erickson decision was relatively brief. Prior to the Supreme Court's decision, numerous decisions, from district courts within the Second Circuit alone, had found that suffering from hepatitis Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 36 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 5 C constitutes having a serious medical need for purposes of the Eighth Amendment. See, e.g., Rose v. Alvees, 01–CV–0648, 2004 WL 2026481, at *6 (W.D.N.Y. Sept. 9, 2004); Verley v. Goord, 02–CV– 1182, 2004 WL 526740, at *10 n. 11 (S.D.N.Y. Jan. 23, 2004); Johnson v. Wright, 234 F.Supp.2d 352, 360 (S.D.N.Y.2002); McKenna v. Wright, 01–CV– 6571, 2002 WL 338375, at *6 (S.D.N.Y. March 4, 2002); Carbonell v. Goord, 99–CV–3208, 2000 WL 760751, at *9 (S.D.N.Y. June 13, 2000). The important thing is that, in Erickson, even the pro se plaintiff was required to allege some sort of fact. In reviewing a complaint for dismissal under Fed.R.Civ.P. 12(b)(6), the court must accept the material facts alleged in the complaint as true and construe all reasonable inferences in the plaintiff's favor. This standard is applied with even greater force where the plaintiff alleges civil rights violations and/or where the complaint is submitted pro se. However, while the special leniency afforded to pro se civil rights litigants somewhat loosens the procedural rules governing the form of pleadings (as the Second Circuit has observed), 8 it does not completely relieve a pro se plaintiff of the duty to satisfy the pleading standards set forth in Fed.R.Civ.P. 8, 10 and 12. 9 Rather, as both the Supreme Court and Second Circuit have repeatedly recognized, the requirements set forth in Fed.R.Civ.P. 8, 10 and 12 are procedural rules that even pro se civil rights plaintiffs must follow. 10 Stated more plainly, when a plaintiff is proceeding pro se, “all normal rules of pleading are not absolutely suspended.” Jackson, 549 F.Supp.2d at 214, n. 28 [citations omitted]. 8 Sealed Plaintif v. Sealed Defendant # 1, No. 06– 1590, 2008 WL 3294864, at *5 (2d Cir. Aug. 12, 2008); see also Traguth v. Zuck, 710 F.2d 90, 95 (2d Cir.1983). 9 See Prezzi v. Schelter, 469 F.2d 691, 692 (2d Cir.1972) (extra liberal pleading standard set forth in Haines v. Kerner, 404 U.S. 519 [1972], did not save pro se complaint from dismissal for failing to comply with Fed.R.Civ.P. 8); accord, Shoemaker v. State of Cal., 101 F.3d 108 (2d Cir.1996) (citing Prezzi v. Schelter, 469 F.2d 691) [unpublished disposition cited only to acknowledge the continued precedential effect of Prezzi v. Schelter, 469 F.2d 691, within the Second Circuit]; accord, Praseuth v. Werbe, 99 F.3d 402 (2d Cir.1995). 10 See McNeil v. U.S., 508 U.S. 106, 113 (1993) (“While we have insisted that the pleadings prepared by prisoners who do not have access to counsel be liberally construed ... we have never suggested that procedural rules in ordinary civil litigation should be interpreted so as to excuse mistakes by those who proceed without counsel.”); Faretta v. California, 422 U.S. 806, 834, n. 46 (1975) (“The right of self-representation is not a license ... not to comply with relevant rules of procedural and substantive law.”); Triestman v. Fed. Bureau of Prisons, 470 F.3d 471, 477 (2d Cir.2006) (pro se status “does not exempt a party from compliance with relevant rules of procedural and substantive law”) [citation omitted], accord, Traguth v. Zuck, 710 F.2d 90, 95 (2d Cir.1983); cf. Phillips v. Girdich, 408 F.3d 124, 128, 130 (2d Cir.2005) (acknowledging that pro se plaintiff's complaint could be dismissed for failing to comply with Rules 8 and 10 if his mistakes either “undermine the purpose of notice pleading [ ]or prejudice the adverse party”). Finally, a few words are appropriate regarding what documents are considered when a dismissal for failure to state a claim is contemplated. Generally, when contemplating a dismissal pursuant to Fed.R.Civ.P. 12(b)(6) or Fed.R.Civ.P. 12(c), the following matters outside the four corners of the complaint may be considered without triggering the standard governing a motion for summary judgment: (1) documents attached as an exhibit to the complaint or answer, (2) documents incorporated by reference in the complaint (and provided by the parties), (3) documents that, although not incorporated by reference, are “integral” to the complaint, or (4) any matter of which the court can take judicial notice for the factual background of the case. 11 Moreover, in the Second Circuit, a pro se plaintiff's papers in response to a defendant's motion to dismiss for failure to state a claim may be considered as effectively amending the allegations of his complaint-to the extent those papers are consistent with the allegations in the complaint. 12 11 See Fed.R.Civ.P. 10(c) (“A copy of any written instrument which is an exhibit to a pleading is a part thereof for all purposes.”); L–7 Designs, Inc. v. Old Navy, LLC, No. 10–573, 2011 WL 2135734, at *1 (2d Cir. June 1, 2011) (explaining that conversion from a motion to dismiss for failure to state a claim to a motion for summary Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 37 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 6 judgment is not necessary under Fed.R.Civ.P. 12[d] if the “matters outside the pleadings” in consist of [1] documents attached to the complaint or answer, [2] documents incorporated by reference in the complaint (and provided by the parties), [3] documents that, although not incorporated by reference, are “integral” to the complaint, or [4] any matter of which the court can take judicial notice for the factual background of the case); DiFolco v. MSNBC Cable L.L.C., 622 F.3d 104, 111 (2d Cir.2010) (explaining that a district court considering a dismissal pursuant to Fed. R. Civ. 12(b)(6) “may consider the facts alleged in the complaint, documents attached to the complaint as exhibits, and documents incorporated by reference in the complaint.... Where a document is not incorporated by reference, the court may neverless consider it where the complaint relies heavily upon its terms and effect, thereby rendering the document ‘integral’ to the complaint.... However, even if a document is ‘integral’ to the complaint, it must be clear on the record that no dispute exists regarding the authenticity or accuracy of the document. It must also be clear that there exist no material disputed issues of fact regarding the relevance of the document.”) [internal quotation marks and citations omitted]; Chambers v. Time Warner, Inc., 282 F.3d 147, 152 (2d Cir.2009) (“The complaint is deemed to include any written instrument attached to it as an exhibit or any statements or documents incorporated in it by reference.”) (internal quotation marks and citations omitted); Int'l Audiotext Network, Inc. v. Am. Tel. & Tel. Co., 62 F.3d 69, 72 (2d Cir.1995) (per curiam) (“[W]hen a plaintiff chooses not to attach to the complaint or incorporate by reference a [document] upon which it solely relies and which is integral to the complaint,” the court may nevertheless take the document into consideration in deciding [a] defendant's motion to dismiss, without converting the proceeding to one for summary judgment.”) (internal quotation marks and citation omitted). 12 See Drake v. Delta Air Lines, Inc., 147 F.3d 169, 170 n. 1 (2d Cir.1998) (per curiam) (“[W]e deem Drake's complaint to include the facts contained in his memorandum of law filed in response to Delta's 1996 motion to dismiss.”); Gill v. Mooney, 824 F.2d 192, 195 (2d Cir.1987) ( “In his affidavit submitted in opposition to defendants' motion to dismiss, Gill asserts that Mooney's actions amounted to deliberate and willful indifference. Liberally construed under pro se pleading standards, Gill's allegations against Mooney involve more than ordinary lack of due care for the prisoner's interests or safety, ... and therefore state a colorable claim under the Eighth and Fourteenth Amendments.”) (internal quotation marks and citation omitted); Donhauser v. Goord, 314 F.Supp.2d 119, 212 (N.D.N.Y.) (Sharpe, M.J.) (“[I]n cases where a pro se plaintiff is faced with a motion to dismiss, it is appropriate for the court to consider materials outside of the complaint to the extent they “are consistent with the allegations in the complaint.”) (collecting district court cases), vacated on other grounds, 317 F.Supp.2d 160 (N.D.N.Y.2004) (Hurd, J.). 3. Analysis *6 After carefully considering the matter, and applying the above-described legal standard, Plaintiff's motion for a preliminary injunction is denied for each of the three alternative reasons offered by Defendants in their memorandum of law. See, supra, Part I.B. of this Decision and Order (summarizing those reasons). The Court would add only two points. First, although Plaintiff attaches 97 pages of exhibits in his opposition to Defendants' motion to dismiss for failure to state a claim, and a 23– page memorandum of law, the Court either (1) does not construe the allegations in those documents as consistent with the allegations in Plaintiff's Complaint or (2) finds the allegations in those documents to be insufficient to rescue the pleading defects contained in Plaintiff's claims. Second, although Plaintiff appears to now largely hinge his claims on Olmstead v. L.C. ex rel. Zimring, 527 U.S. 581 (1999), and/or Fed.R.Civ.P. 23, the Court finds that reliance to be misplaced. (Dkt. No. 22, Attach. 1, at 4–8 .) 4. Whether Dismissal Should Be With or Without Prejudice Generally, when a district court dismisses a pro se action sua sponte, the plaintiff will be allowed to amend his action. See Gomez v. USAA Fed. Savings Bank, 171 F.3d 794, 796 (2d Cir.1999). However, an opportunity to amend is not required where the plaintiff has already been afforded the opportunity to amend. 13 Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 38 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 7 13 Shuler v. Brown, 07–CV–0937, 2009 WL 790973, at *5 & n. 25 (N.D.N.Y. March 23, 2009) (McAvoy, J., adopting Report–Recommendation by Lowe, M.J.) (“Of course, an opportunity to amend is not required where the plaintiff has already amended his complaint.”), accord, Smith v. Fischer, 07– CV–1264, 2009 WL 632890, at *5 & n. 20 (N.D.N.Y. March 9, 2009) (Hurd, J., adopting Report–Recommendation by Lowe, M.J.); Abascal v. Hilton, 04–CV–1401, 2008 WL 268366, at *8 (N.D.N.Y. Jan. 130 2008) (Kahn, J., adopting, on de novo review, Report–Recommendation by Lowe, M.J.); see also Yang v. New York City Trans. Auth., 01–CV–3933, 2002 WL 31399119, at *2 (E.D.N.Y. Oct. 24, 2002) (denying leave to amend where plaintiff had already amended complaint once); Advanced Marine Tech. v. Burnham Sec., Inc., 16 F.Supp.2d 375, 384 (S.D.N.Y.1998) (denying leave to amend where plaintiff had already amended complaint once); cf. Foman v. Davis, 371 U.S. 178, 182 (1962) (denial of leave to amend not abuse of discretion movant has repeatedly failed to cure deficiencies in pleading). Moreover, an opportunity to amend is not required where the defects in the plaintiff's claims are substantive rather than merely formal, such that any amendment would be futile. As the Second Circuit has explained, “[w]here it appears that granting leave to amend is unlikely to be productive, ... it is not an abuse of discretion to deny leave to amend.” Ruffolo v. Oppenheimer & Co., 987 F.2d 129, 131 (2d Cir.1993) (citations omitted). 14 This rule applies even to pro se plaintiffs. See, e.g., Cuoco, 222 F.3d at 103; Brown, 1997 WL 599355 at * 1. 14 Accord, Brown v. Peters, 95–CV–1641, 1997 WL 599355, at *1 (N.D.N.Y. Sept. 22, 1997) (Pooler, J.) (“[T]he court need not grant leave to amend where it appears that amendment would prove to be unproductive or futile.”) (citation omitted); see also Foman v. Davis, 371 U.S. 178, 182 (1962) (denial not abuse of discretion where amendment would be futile); Cuoco v. Moritsugu, 222 F.3d 99, 112 (2d Cir.2000) (“The problem with Cuoco's causes of action is substantive; better pleading will not cure it. Repleading would thus be futile. Such a futile request to replead should be denied.”) (citation omitted); Cortec Indus., Inc. v. Sum Holding L.P., 949 F.2d 42, 48 (2d Cir.1991) (“Of course, where a plaintiff is unable to allege any fact sufficient to support its claim, a complaint should be dismissed with prejudice.”) (citation omitted); Health–Chem Corp. v. Baker, 915 F.2d 805, 810 (2d Cir.1990) ( “[W]here ... there is no merit in the proposed amendments, leave to amend should be denied”). Here, the Court finds that the pleading deficiency in Plaintiff's claims are substantive and not merely formal. As an initial matter, lack of subject-matter jurisdiction is generally viewed as a substantive defect. 15 Even if the Court did possess subject-matter jurisdiction over Plaintiff's claims, the pleading defects in those detailed claims still appear substantive. For example, it does not appear to the Court that granting Plaintiff leave to amend his claims would likely be productive. Setting aside the fact that he has failed to correct those defects despite having had months in which to do so, the fact remains that he appears to insist on asserting nonactionable claims, rendering any amendment futile. (See generally Dkt. No. 22, Attach. 1.) As a result, the Court declines to afford Plaintiff an opportunity to amend his Complaint prior to dismissal. 15 See U.S. ex rel. Phipps v. Comprehensive Comty. Dev. Corp., 152 F.Supp.2d 443, 455 (S.D.N.Y.2001) (“[I]t is not appropriate to grant Phipps's request [for leave to amend the Complaint] because the Court has determined that it does not have subject matter jurisdiction over this action.”); Chan v. Reno, 916 F.Supp. 1289, 1302 (S.D.N.Y.1996) (“An amendment is considered futile if the amended pleading fails to state a claim or would be subject to a successful motion to dismiss on some other basis. As will be discussed herein, [the proposed amended complaint] ... presents a non-justiciable claim and fails to present this Court with subject matter jurisdiction. Therefore, because [the proposed amended complaint] would be subject to a successful motion to dismiss ..., amendment would be futile.”). However, because Defendants argued persuasively that Plaintiff should have presented his challenge to the County's project labor agreement in an Article 78 proceeding in state court, the Court dismisses Plaintiff's claims against the County without prejudice to refiling in state court within thirty (30) days of this Decision and Order. 16 Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 39 of 40
Planck v. Schenectady County, Not Reported in F.Supp.2d (2012) 2012 WL 1977972 © 2025 Thomson Reuters. No claim to original U.S. Government Works. 8 16 The Court notes that, in addition, it expresses no opinion as to the merits of any claim, arising in the future, that Plaintiff may or may not bring pursuant to Olmstead v. L.C. ex rel. Zimring, 527 U.S. 581 (1999). *7 ACCORDINGLY, it is ORDERED that Plaintiff's motion for reconsideration of the Court's Decision and Order of February 29, 2012, denying his motion for a temporary restraining order (Dkt. No. 10) is DENIED; and it is further ORDERED that Plaintiff's motion for a report from the Court regarding the status of his motion for reconsideration (Dkt. No. 30) is DENIED; and it is further ORDERED that Plaintiff's motion for a preliminary injunction (Dkt. No. 4) is DENIED; and it is further ORDERED that Defendants' cross-motion to dismiss Plaintiffs' Complaint (Dkt. No. 17) is GRANTED; and it is further ORDERED that Plaintiff's Complaint (Dkt. No. 1) is DISMISSED with prejudice EXCEPT for his claims against Schenectady County, which are DISMISSED without prejudice to refiling in state court within THIRTY (30) DAYS of this Decision and Order. The Court hereby certifies, for purposes of 28 U.S.C. § 1915(a) (3), that any appeal taken from this Decision and Order would not be taken in good faith. All Citations Not Reported in F.Supp.2d, 2012 WL 1977972 End of Document © 2025 Thomson Reuters. No claim to original U.S. Government Works. Case 8:25-cv-01516-AMN-TWD Document 6 Filed 12/10/25 Page 40 of 40
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