Shelton v. N.Y. State Liquor Authority

NYAD3 Reverses Dismissal, Finding NY Sup. Ct. Abused Discretion in Denying Motion to Amend Complaint

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The Appellate Division, Third Department, rejected defendants' arguments and determined that our clients' (the "[Plaintiffs') "assertions appear[ed] to be based on more than mere speculation inasmuch as it [could] be reasonably inferred that the conduct complained of – authorizing communication of a decision by the [NYS Liquor] Authority – would have required the direct knowledge and/or participation of at least one of the Commissioners [of the Liquor Authorioty]." Slip Op. at 7 (internal citations and quotation marks ommitted). Thus, the court determined that "the complaint [did] not merely assume ... personal involvement based on [defendants'] position of authority but instead allege[d] some direct action by the individual defendants that contributed to the alleged deprivation of constitutional rights," and, therefore, "that a claim under 42 USC § 1983 [was] stated," as Plaintiffs had alleged all along. Id. (internal citations and quotation marks ommitted). "Accordingly, [the Appellate Division] conclude[d] that Supreme Court abused its discretion in denying the [Plaintiffs'] motion to amend." Id. (internal citations and quotation marks ommitted).

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Reference Info:Decision | State, 2nd Circuit, New York | United States


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