888 F. Supp. 2d 317
E.D.N.Y2012Background
- Plaintiffs, ten former Poly Prep students and two attendees, allege extensive sexual abuse by coach Foglietta (1966–1986).
- They claim Poly Prep and administrators knew of prior accusations and concealed them, creating a long-running cover-up.
- Foglietta died in 1998; he was protected from direct action, but Poly Prep remains defendant alongside trustees and staff.
- Allegations include misleading publications, failures to investigate, and improper responses to complaints from the 1960s–1990s.
- Partial discovery established a Settlement of limited scope; plaintiffs filed Third Amended Complaint alleging RICO, Title IX, and state-law claims.
- Court grants in part and denies in part motions to dismiss; equitable tolling/estoppel issues to be resolved separately.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| RICO enterprise and pattern | Poly Prep cannot be the enterprise; Williams/Harman/Novello etc. form the enterprise. | Poly Prep cannot be a RICO person; only named individuals constitute the enterprise. | RICO enterprise limited to individuals; some plaintiffs may proceed against specific individuals. |
| RICO injury and causation | Contributors suffered injury to property; others suffered personal injuries not RICO injuries. | Personal injuries are not injuries to business or property; most plaintiffs lack RICO injury. | Only Culhane and Henningsen have cognizable RICO injuries; others lack standing. |
| Title IX retroactivity and limitations | Restoration Act applies retroactively; Title IX claims timely under federal accrual rules. | Grove City retroactivity narrowed; Restoration Act retroactive; accrual still a limiting factor. | Restoration Act retroactively applies; Title IX claims timely under discovery/avoidance principles; accrual analyzed under federal law. |
| Fraud/estoppel and statute of limitations | Fraudulent concealment tolls accrual; equitable estoppel applies to toll the limits period. | Equitable estoppel cannot revive time-barred claims without justifiable reliance and diligence. | Fraudulent concealment tolls accrual for Title IX; equitable estoppel issues to be resolved for remaining claims. |
| Res judicata Paggioli bar | Extrinsic fraud in Paggioli should vitiate preclusion. | Intrinsic fraud in state judgment; res judicata applies to bar relitigation of Paggioli’s claims. | Paggioli’s 2006 dismissal bars state-law claims arising from that action; federal claims considered separately. |
Key Cases Cited
- Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479 (Supreme Court 1985) (elements of a RICO claim: conduct, enterprise, pattern, and racketeering activity)
- Grove City Coll. v. Bell, 465 U.S. 555 (Supreme Court 1984) (instrumental scope of Title IX before Restoration Act)
- Leake v. Long Island Jewish Med. Ctr., 869 F.2d 130 (2d Cir. 1989) (Restoration Act retroactivity for pending cases)
- Landgraf v. USI Film Prod., 511 U.S. 244 (Supreme Court 1994) (retroactivity analysis: clear congressional intent and retroactive effects)
- Keating v. Carey, 706 F.2d 377 (2d Cir. 1983) (fraudulent concealment; accrual tolling concepts)
- Pearl v. City of Long Beach, 296 F.3d 76 (2d Cir. 2002) (fraudulent concealment and accrual timing in limitations)
- Zumpano v. Quinn, 6 N.Y.3d 666 (N.Y. Ct. of App. 2006) (equitable estoppel and accrual in NY context; continuing duty and timeliness)
- Cada v. Baxter Healthcare Corp., 920 F.2d 446 (7th Cir. 1990) (fraudulent concealment as tolling doctrine (cited for tolling analysis))