we need to look at the state's long-arm statute as a basis for personal jurisdiction
Even if it satisfies the long-arm statute?
Exercise of PJ must be constitutional
Constitutional limits of PJ?
The constitution requires that there be sufficient contacts between the defendant and the forum state such that exercise of PJ would not offend traditional notions of fair-play and substantial justice
1. Purposeful availment
Relatedness of Claim to Contact?
1. Claim related to D's contacts in the forum state (specific jurisdiction)
2. Systematic and Continuous activity so that D is "essentially at home" in the forum state (general jurisdiction)
Fairness (Personal jurisdiction)?
2. state's interest
3. other factors (P's interests, judicial system's interests, shared interests of both states)
Federal courts use notice pleading, so the complaint must put the defendant on notice of the claims against him.
Complaint should contain?
1. Short statement of the grounds for the court's jurisdiction
2. the claim that the pleader is entitled to relief
3. And a demand for relief
Involuntary Dissolution of Corporation
Court in equity has no power to dissolve a corporation, but most state laws allow courts to dissolve a corporation pursuant to a shareholder's action if:
1. the directors became DEADLOCKED in the management of the corporation,
2. the directors are committing FRAUD or ILLEGAL acts,
3. or if the corporate assets are being WASTED by the directors
Redemption of stock
Redemption occurs when the corporation purchases outstanding shares pursuant to its articles.
Repurchase of stock/"buy back"
Repurchase of shares can be at the request of a stockholder
Repurchase of shares is not allowed if the corporation is insolvent. Source of the repurchase can only come from surplus.
However, these limitations no longer apply in most states. Permissible, as long as the corporation remains solvent after the buyback.
Duty of loyalty
Requires the directors act in the best interest of the corporation, and not for the benefit of a director.
Any profit realized by a director, officer, or 10% shareholder from any purchase and sale within 6 months must be returned to the corporation
The shareholder must have owned 10% stock BEFORE both its purchase and sale.
It is unlawful for any person by the use of interstate commerce to
1) use a scheme to defraud,
2) make any untrue statement (or omission) of material fact, or
3) engage in any fraud in connection with the purchase or sale of any security.
If defendant did not personally trade the stock, he cannot be directly liable under Rule 10b5. However, he can be vicariously liable under a tipper theory.
The govt can prosecute under 10b5 for:
1) trading on market information
2) in breach of duty of trust and confidence owed to the source of the information.
A person will be deemed to owe a duty of trust and confidence when the person receives information from a parent unless the recipient can prove that he had no reason to know that the information was confidential.
Business records exception & police reports
Generally police reports are not admissible against a criminal defendant under the business records exception. Some jurisdictions admit police reports if they contain only routine info rather than observations and opinions of officers. A police report may be admissible against a criminal defendant under the business records exception as long as the sources of information for entries in the record indicate the record's trustworthiness. A police report must have an independent ground of admissibility to establish the truth of the assertions contained within it.
Official record exception & police reports
FRE, police report not admissible as an official record in a criminal prosecution
CA, does not automatically reject police observations in criminal cases. CA judges use the trustworthiness requirement to reject police reports that seem unreliable.
Prop 8 Bolstering
Under prop 8, both the prosecutor and the defendant may bolster a witness' credibility before it has been attacked.
Present State of Mind (then-existing state of mind) exception?
A statement of a declarant's then-existing state of mind, emotion, sensation, or physical condition is admissible.
Motion to strike -- who can move?
FRE - only by opposing counsel
CA - counsel for any party can move to strike, even your own witness
Both: court has the discretion to allow a witness' nonresponsive answer if it is relevant to an issue in the action and not otherwise barred by some exclusionary rule.