449 F. App'x 57
2d Cir.2011Background
- Poplar Lane Farm LLC and E. Robert Fussell sue The Fathers of Our Lady of Mercy in the Western District of New York.
- The district court dismissed the complaint under Rule 12(b)(6) and denied a recusal motion.
- The dispute centers on a 1984 gas lease; the parties argue over the lease’s assignment and related obligations.
- Plaintiffs abandoned any breach of contract claim in the district court and raise new theories on appeal.
- The court analyzes whether contract governing the dispute precludes tort-like or quasi-contract claims and whether recusal arguments have merit.
- The Second Circuit affirms the district court’s judgment, concluding the contract governs the dispute and the argued alternatives fail.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether contract governs the dispute and precludes non-contractual claims | Fussell argues implied/quasi-contract, quantum meruit, etc. | Lease governs the dispute; non-contractual claims are improper recharacterizations. | Precluded; contract governs the dispute and non-contractual claims fail |
| Whether the assignment of the lease creates a bona fide dispute or precludes enforcement | Assignment is somehow invalid, creating a dispute. | No preconditions on lessee’s assignment; the lease remains valid. | Assignment did not invalidate the lease; no bona fide dispute |
| Whether the district court properly rejected preserved and unpreserved claims | Appellants raised additional theories on appeal. | Unpreserved arguments are meritless and not to be considered. | Unpreserved arguments not considered; grounds for dismissal remain |
| Whether the alleged need for recusal of judges based on Roman Catholic faith has merit | Judges must recuse themselves due to religious affiliation. | No basis for recusal; disqualification arguments are without merit. | Recusal claim rejected; no merit |
| Whether equitable claims are appropriate where damages are sought and legal remedies exist | Equitable claims should be available to plaintiffs for relief. | Equity claims are inappropriate where adequate legal remedies exist. | Not addressed as independent basis; claims fail |
Key Cases Cited
- Diesel Props S.R.L. v. Greystone Bus. Credit II LLC, 631 F.3d 42 (2d Cir. 2011) (unjust enrichment must be anchored in independent contract)
- Mid-Hudson Catskill Rural Migrant Ministry, Inc. v. Fine Host Corp., 418 F.3d 168 (2d Cir. 2005) (quantum meruit applies when no contract governs)
- Clark-Fitzpatrick, Inc. v. Long Island R.R., 70 N.Y.2d 382, 388-89 (N.Y. 1987) (quasi-contract and tort claims barred where contract covers dispute)
- Sergeants Benevolent Ass’n Annuity Fund v. Renck, 796 N.Y.S.2d 77, 19 A.D.3d 107 (1st Dep’t 2005) (negligent misrepresentation recognized in certain contexts)
- Baker v. Norman, 643 N.Y.S.2d 30 (1st Dep’t 1996) (fraud-like claims not allowed where contract governs)
- Ashcroft v. Iqbal, 129 S. Ct. 1937 (U.S. 2009) (pleading requires more than legal conclusions; not all allegations accepted as true)
- Tolbert v. Queens College, 242 F.3d 58 (2d Cir. 2001) (issues not sufficiently argued waived on appeal)
- Holtz v. Rockefeller & Co., Inc., 258 F.3d 62 (2d Cir. 2001) (special consideration for pro se litigants is not routinely granted)