A federal judge has granted the Cayuga Nation's motion to dismiss most counterclaims and complaints filed against it and its federally recognized leader, Clint Halftown, by defendants in a civil RICO suit.
In a decision filed Jan. 9, Judge Brenda Sannes of the U.S. District Court, Northern District of New York, dismissed all but two of the counterclaims and all of the complaints. They stem from the nation's alleged harassment and Jan. 1 eviction of Pipekeepers Tobacco & Gas at 126 E. Bayard St. in Seneca Falls, seizure of the business's inventory and other property, and subsequent sale of that inventory.聽
A month later, Pipekeepers owner Dusty Parker opened a new location of the business at 7153 Route 90 in the town of Montezuma, next to the Circle K gas station on Routes 5 and 20. That prompted the nation to sue聽Parker and more than 10 other defendants associated with Pipekeepers, including Finger Lakes Drive-In owner Paul Meyer, who subleased Parker the Seneca Falls property and sold him the Montezuma one. The nation's governing council, led by Halftown, accused them of "racketeering activities" that stole business from the nation, and asked the court for $15 million in damages.聽
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Sannes dismissed two out of three counts of the nation's lawsuit in September, saying the nation failed to show its business or reputation had been directly damaged by the operation of Pipekeepers. The remaining count seeks $5 million from the defendants for allegedly investing income derived from "unlawful conduct to facilitate the import of contraband and other goods from across state lines."
A federal judge has dismissed two out of three counts of the Cayuga Nation's lawsuit against a Montezuma smoke shop and denied the nation's mo…
The counterclaims against the nation and complaints against Halftown, filed in August, accused them of interfering with Meyer's lease of the Seneca Falls property and sublease of that property to Parker. That cost Meyer, Parker and the other defendants customers, business opportunities and revenue, they claimed, as did the nation's seizure of inventory and other property there. A counterclaim and complaint also accused the nation and Halftown of violating the Computer Fraud and Abuse Act by seizing and hacking Pipekeepers computers and using financial and personal information on them.
The nation moved to dismiss the counterclaims on the grounds of sovereign immunity. The defendants claimed the nation surrendered that immunity when it assumed the lease of the Seneca Falls property. Sannes disagreed, noting the property is located within the boundaries of the nation's reservation, and dismissed all of the counterclaims except two: conversion and trespass to chattels.
"This case does not concern the Defendants' legal interest in 126 E. Bayard St.," she wrote. "At issue here is the Defendants' investment of proceeds of racketeering activity that occurred (there)."
Sannes did not dismiss the conversion and trespass counterclaims because the nation has yet to disprove that the defendants have a valid claim for recoupment for them. The defendants have "a plausible claim for relief" for the conversion of the cash value of the inventory allegedly seized and sold by the nation at the Seneca Falls property, the judge wrote. Meanwhile, she denied the nation's motion to dismiss the trespass counterclaim on the grounds it duplicates the conversion one because, as the defendants responded, it instead concerns the nation's alleged hacking of their computers.
All the complaints against Halftown, which were mostly the same as the counterclaims, were dismissed by Sannes on the grounds of sovereign immunity for a government official.
"Defendants offer no allegations that would allow a plausible inference that Halftown was acting in his individual capacity," the judge wrote. "The allegations regarding his role are vague."
Sannes has also ordered the parties to attempt to work through a mediator to resolve underlying litigation that remains.聽
Lake Life Editor David Wilcox can be reached at (315) 282-2245 or david.wilcox@lee.net. Follow him on Twitter .