Ahluwalia v. St. George's University, 626 F. App'x 297

Plaintiff Nitesh Ahluwalia, a student at St. George’s University School of Medicine, alleges he was unfairly expelled and filed a four-count complaint against SGU LLC, University Support Services (USS), and fellow student Danielle Rosen.
District court dismissed the complaint under Fed. R. Civ. P. 12(b)(6); Ahluwalia appealed dismissal of breach of contract, negligent hiring/training/supervision, and tortious interference claims, and the denial of leave to amend.
Complaint incorporated by reference the School’s U.S. Department of Education Eligibility and Certification Approval report, showing corporate structure: SGU LLC wholly owns SGU Ltd., which wholly owns the School.
Ahluwalia alleged USS acted as agent of the School and that School administrators (including Dean Rao) acted arbitrarily/bad faith in expelling him; he alleged Rosen sought his expulsion.
District court dismissed claims against SGU LLC and USS for lack of plausible contractual relationship, dismissed negligent supervision claims because acts were within scope of employment and no notice of employees’ propensity, and dismissed Rosen interference claim for failure to plead intent to cause contractual breach.
District court denied leave to amend; Ahluwalia did not specify facts that would cure pleading defects. Court of Appeals affirmed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Ahluwalia plausibly alleged a contract with SGU LLC or USS	Contract existed with the entity operating the School; named defendants are proper parties	Corporate documents show SGU Ltd. (not SGU LLC) and the School are the contracting entities; USS was an agent for a disclosed principal	Dismissed — no plausible allegation that SGU LLC or USS were contracting parties; parent/subsidiary and disclosed-agent rules apply
Whether negligent hiring/training/supervision claim is viable	School failed to supervise and hire properly causing harm	School employees acted within scope of employment; no notice of propensity; named entities not shown to employ actors	Dismissed — acts within scope of employment, no notice alleged, and attribution to named defendants not pleaded
Whether Rosen tortiously interfered with contract	Rosen induced Ahluwalia's expulsion and intended to interfere with contractual protections	Rosen sought expulsion but did not induce or intend breach of contractual procedures	Dismissed — complaint fails to allege Rosen caused or intended to cause a breach of the contract/procedures
Whether district court abused discretion by denying leave to amend	Plaintiff said he could cure defects and sought leave to replead	Plaintiff did not specify factual amendments that would cure deficiencies	Denied — plaintiff failed to identify specific facts that would cure pleading defects

Sewell v. Bernardin, 795 F.3d 337 (2d Cir. 2015) (standard for Rule 12(b)(6) review)
Bldg. Indus. Elec. Contractors Ass’n v. City of New York, 678 F.3d 184 (2d Cir. 2012) (consideration of documents incorporated by reference or upon which complaint relies)
Lotes Co. v. Hon Hai Precision Indus. Co., 753 F.3d 395 (2d Cir. 2014) (standard for reviewing denial of leave to amend)
Sheridan Broad. Corp. v. Small, 19 A.3d 331 (N.Y. App. Div. 2005) (parent not liable for subsidiary contract obligations absent veil-piercing)
Weinreb v. Stinchfield, 19 A.3d 482 (N.Y. App. Div. 2005) (agent of disclosed principal not party to contract absent clear intent to be bound)
Sagal-Cotler v. Bd. of Educ., 20 N.Y.3d 671 (N.Y. 2013) (scope-of-employment includes acts done in doing employer's work, even if irregular)
Riviello v. Waldron, 47 N.Y.2d 297 (N.Y. 1979) (scope-of-employment test)
TechnoMarine SA v. Giftports, Inc., 758 F.3d 493 (2d Cir. 2014) (plaintiff must specify how amendment would cure defects)
Alvord & Swift v. Stewart M. Muller Constr. Co., 46 N.Y.2d 276 (N.Y. 1978) (tortious interference requires intentional inducement of breach)
Giuffre Hyundai, Ltd. v. Hyundai Motor Am., 756 F.3d 204 (2d Cir. 2014) (issues not developed on appeal are abandoned)