027.pdf

41603298v2 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK TEALA DAVIES, Plaintiff, v. DARREN K. INDYKE and RICHARD D. KAHN, as executors of the ESTATE OF JEFFREY E. EPSTEIN, Defendants. Case No. 1:19-cv-10788 (GHW) (DCF) DEFENDANTS’ MEMORANDUM OF LAW IN SUPPORT OF THEIR MOTION TO DISMISS PLAINTIFF’S COMPLAINT TROUTMAN SANDERS LLP 875 Third Avenue New York, New York 10022 Tel: 212-704-6000 Fax: 212-704-6288 Attorneys for Defendants Case 1:19-cv-10788-GHW-DCF Document 27 Filed 02/28/20 Page 1 of 14 TABLE OF CONTENTS Page 41603298v2 -i- PRELIMINARY STATEMENT ................................................................................................... 1 STATEMENT OF ALLEGED FACTS ......................................................................................... 2 A. Plaintiff Alleges Torts Occurring Over 15 Years Ago In New York And Other Jurisdictions, Starting When She Was Age Seventeen ................................ 2 ARGUMENT ................................................................................................................................. 2 A. Legal Standard: Plaintiff’s Legal Conclusions, Labels And Formulaic Recitations Of The Elements Of Her Causes Of Action Are Insufficient To State A Claim ......................................................................................................... 2 B. Most Of Plaintiff’s Claims Expired Many Years Ago........................................... 3 C. Plaintiff’s Claim For Punitive Damages Fails As A Matter Of Law ..................... 4 1. Banks factor one: previously, USVI courts favorably cited the Restatement section that precludes punitive damages against estates. ........................................................................................................ 7 2. Banks factor two: a majority of U.S. jurisdictions do not permit an award of punitive damages based on the wrongful acts of a decedent. .................................................................................................... 7 3. Banks factor three: Post-Banks, USVI courts have favorably applied Restatement Section 908 to questions regarding punitive damages...................................................................................................... 8 CONCLUSION .............................................................................................................................. 9 Case 1:19-cv-10788-GHW-DCF Document 27 Filed 02/28/20 Page 2 of 14 ii 41603298v2 TABLE OF AUTHORITIES Page(s) Cases Ashcroft v. Iqbal, 556 U.S. 662 (2009) ...................................................................................................................2 Banks v. Int’l Rental & Leasing Corp., 55 V.I. 967 (V.I. 2011) ......................................................................................................6, 7, 8 Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) ...................................................................................................................2 Blissett v. Eisensmidt, 940 F. Supp. 449 (N.D.N.Y. 1996) ............................................................................................6 Booth v. Bowen, No. CIV. 2006-217, 2008 WL 220067 (D.V.I. Jan. 10, 2008) ..................................................7 Brandy v. Flamboyant Inv. Co., Ltd., 24 V.I. 249 (V.I. Terr. Ct. 1989) ................................................................................................8 Crabtree v. Estate of Crabtree, 837 N.E.2d 135 (Ind. 2005) .......................................................................................................7 Davis v. Christian, 46 V.I. 557 (D.V.I. App. Div. 2005) ..........................................................................................8 Gov’t of Virgin Islands v. Connor, No. S. CT. CIV. 2013-0095, 2014 WL 702639 (V.I. Feb. 24, 2014) ........................................6 Graham v. Henderson, 224 F.R.D. 59 (N.D.N.Y. 2004).................................................................................................6 Hamilton v. Dowson Holding Co., 51 V.I. 619 (D.V.I. 2009)...........................................................................................................7 Isaac v. Crichlow, 63 V.I. 38, 2015 V.I. LEXIS 15 (V.I. Super. Ct. 2015) .............................................................8 Jaramillo v. Providence Wash. Ins. Co., 117 N.M. 337 (N.M. 1994) ........................................................................................................6 Kunica v. St. Jean Fin., No. 97 Civ. 3804, 1998 U.S. Dist. LEXIS 11867 (S.D.N.Y. July 29, 1998) (Sweet, J.)...................................................................................................................................4 Case 1:19-cv-10788-GHW-DCF Document 27 Filed 02/28/20 Page 3 of 14 iii 41603298v2 Lohr v. Byrd, 522 So. 2d 845 (Fla. 1988).........................................................................................................6 Pappas v. Hotel on the Cay Time-Sharing Ass’n, 69 V.I. 3 (U.S.V.I. Super. Ct. 2015) ..........................................................................................8 Poindexter v. Zacharzewski, No. 18-14155, 2018 U.S. Dist. LEXIS 189861 (Nov. 5, 2018 S.D. Fla.) .................................6 Powell v. Chi-Co’s Distrib., No. ST-13-TOR-14, 2014 V.I. LEXIS 21 (U.S.V.I. Super. Ct. Apr. 3, 2014) ..........................8 Purdy v. Consumers Distrib. Co., 648 F. Supp. 980 (S.D.N.Y. 1986) (Cedarbaum, J.) ..................................................................4 Simons v. Marriott Corp., No. 92 Civ. 3762 (SWK), 1993 U.S. Dist. LEXIS 14365 (S.D.N.Y. Oct. 12, 1993) ..........................................................................................................................................5 SJB v. N.Y.C. Dep’t of Educ., No. 03 Civ. 6653, 2004 U.S. Dist. LEXIS 13227 (S.D.N.Y. July 14, 2004) (Buchwald, J.) ............................................................................................................................4 St. Thomas House, Inc. v. Barrows, 15 V.I. 435 (V.I. Terr. Ct. 1979) ................................................................................................8 Starr Indem. & Liab. Co. v. Am. Claims Mgmt., No. 14-cv-0463-JMF, 2015 U.S. Dist. LEXIS 60272 (S.D.N.Y. May 7, 2015)........................5 The Cookware Co. (USA), LLC v. Austin, No. 15 Civ. 5796, 2016 U.S. Dist. LEXIS 177691 (S.D.N.Y. Dec. 8, 2016) (Batts, J.) ....................................................................................................................................4 Thomas v. Rijos, 780 F. Supp. 2d 376 (D.V.I. 2011) ............................................................................................8 Whitley v. Bowden, No. 17-CV-3564 (KMK), 2018 WL 2170313 (S.D.N.Y. May 9, 2018) ...................................3 Statutes EPTL § 11-3.2 (a)(1)........................................................................................................................5 Fla. Stat. § 95.11 (3)(O) ...................................................................................................................4 Fla. Stat. § 95.11(7)..........................................................................................................................4 N.M. Stat. § 37-1-8 ..........................................................................................................................4 Case 1:19-cv-10788-GHW-DCF Document 27 Filed 02/28/20 Page 4 of 14 iv 41603298v2 N.M. Stat. § 37-1-30 ........................................................................................................................4 New York Estates, Powers and Trusts Law ..................................................................................