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Action Alleging Unconstitutional Taking of Lottery Prize, and Banking Law Matter

By FindLaw Staff on September 27, 2010 | Last updated on March 21, 2019

In Carver v. City of N.Y., No. 09-2053, an action by a recipient of public assistance against New York City for constitutional violations and violations of the minimum wage laws based on the city's interception of a lottery award to plaintiff, the court affirmed the dismissal of the action in part where, in asserting his takings and substantive due process claims, plaintiff alleges that he was injured by the taking of his lottery prize; and in asserting his equal protection claims, he alleged that he was injured by the discriminatory taking of his lottery prize on the basis of his status as a public-assistance recipient, but these injuries were caused solely by the state and not the city.

NML Capital v. Repub. of Argentina, No. 09-2707, an action to recover principal and interest owed by the Republic of Argentina on certain Floating Rate Accrual Notes, the Second Circuit certified the following questions to the New York Court of Appeals: (a) Is a bond provision requiring the issuer of the bond to make, on dates certain, bi-annual interest payments on principal "until the principal hereof is paid" properly construed as an obligation to pay interest for so long as the principal is outstanding, including after the date of maturity? (b) Is a bond provision requiring the issuer of the bond to make, on dates certain, bi-annual interest payments on principal "until the principal hereof is paid" properly construed as an obligation to pay interest for so long as the principal is outstanding, including after acceleration? (c) If either of the foregoing questions is answered in the affirmative, does that obligation provide a valid basis for awarding statutory interest under N.Y. C.P.L.R. section 5001(a) on post-maturity or post-acceleration interest payments that came due but were never paid? 

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