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United Republic Insurance v. Chase Manhattan Bank

Citation: 40 F. App'x 630Docket: No. 01-9107

Court: Court of Appeals for the Second Circuit; July 17, 2002; Federal Appellate Court

Narrative Opinion Summary

The decision of the district court is affirmed. Plaintiff-Appellant URIC, a Texas corporation in receivership, appealed the dismissal of its First Amended Complaint and the denial of its cross-motion to amend the complaint, which occurred on August 21, 2001, in the Northern District of New York, presided over by Judge David N. Hurd. URIC brought six claims against the involved banks for breach of fiduciary duty, fraud, constructive fraud, negligence, fraudulent conveyance, and conversion, seeking to recover $14,000,000 lost on an investment related to loans between URIC and its parent company. On appeal, URIC contested the dismissal of all claims except for negligence, which was dismissed based on statute of limitations. The appellate court affirms the district court's decisions, citing substantially the same reasoning as the lower court. The judgment is thus upheld.

Legal Issues Addressed

Affirmance of District Court Judgment on Appeal

Application: The appellate court affirmed the district court's dismissal of all claims except for negligence, thereby upholding the lower court's judgment.

Reasoning: The decision of the district court is affirmed. The appellate court affirms the district court's decisions, citing substantially the same reasoning as the lower court.

Denial of Leave to Amend Complaint

Application: The district court's denial of URIC's cross-motion to amend its complaint was upheld by the appellate court.

Reasoning: Plaintiff-Appellant URIC, a Texas corporation in receivership, appealed the dismissal of its First Amended Complaint and the denial of its cross-motion to amend the complaint, which occurred on August 21, 2001, in the Northern District of New York, presided over by Judge David N. Hurd.

Dismissal of Claims for Breach of Fiduciary Duty, Fraud, Constructive Fraud, Fraudulent Conveyance, and Conversion

Application: The district court dismissed URIC's claims against the involved banks for breach of fiduciary duty, fraud, constructive fraud, fraudulent conveyance, and conversion, and this dismissal was upheld on appeal.

Reasoning: URIC brought six claims against the involved banks for breach of fiduciary duty, fraud, constructive fraud, negligence, fraudulent conveyance, and conversion, seeking to recover $14,000,000 lost on an investment related to loans between URIC and its parent company. On appeal, URIC contested the dismissal of all claims except for negligence, which was dismissed based on statute of limitations.

Statute of Limitations Bar to Negligence Claim

Application: URIC's claim for negligence was dismissed by the district court because it was barred by the statute of limitations, and this basis for dismissal was not contested on appeal.

Reasoning: On appeal, URIC contested the dismissal of all claims except for negligence, which was dismissed based on statute of limitations.