Kirsch v. Traber

A Nevada district court’s order denying a motion dismiss was not a final judgment on the issue of demand futility. Therefore, it was proper for the district court to accord preclusive effect to a subsequent final judgment from a foreign court.In this case involving whether a Nevada district court’s order denying a motion to dismiss constituted a final judgment on the issue of demand futility, the Supreme Court held (1) Nevada hereby applies the definition set forth within section 13 of the Restatement (Second) of Judgments, and under the Restatement, a judgment is final within the context of issue preclusion if it is “sufficiently firm” and “procedurally definite” in resolving an issue; and (2) in the instant case, the district court’s order denying Respondents’ motion to dismiss reserved for future determination the issue of demand futility, and therefore, the district court properly held that its prior order did not prohibit it from according preclusive effect to the subsequent order of the federal court. View "Kirsch v. Traber" on Justia Law