Doe v. The Trump Corporation, No. 20-1228 (2d Cir. 2021)Annotate this Case
Anonymous plaintiffs filed a putative class action against The Trump Corporation, Donald J. Trump, and various members of his family, asserting claims for racketeering in violation of 18 U.S.C. 1962(c), conspiracy to conduct the affairs of a racketeering enterprise in violation of 18 U.S.C. 1962(d), dissemination of untrue and misleading public statements in violation of California law, unfair competition in violation of California law, unfair and deceptive trade practices in violation of Maryland and Pennsylvania law, common-law fraud, and common-law negligent misrepresentation. Plaintiffs contend that defendants fraudulently induced them to enter into business relationships with non-party appellant, ACN, by making a series of deceptive and misleading statements. The district court denied both defendants and ACN's motions to compel arbitration.
The Second Circuit affirmed, concluding that (1) defendants may not compel plaintiffs to arbitrate their dispute on equitable estoppel grounds; and (2) the district court may not compel arbitration as to ACN's discovery dispute because the court lacked an independent basis for subject-matter jurisdiction over the parties' dispute. The court considered defendants and ACN's remaining arguments on appeal and concluded that they are without merit.