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In this shareholder-derivative action, Shareholders of The Western Union Company averred several of Western Union’s Officers and Directors breached their fiduciary duties to the company by willfully failing to implement and maintain an effective anti-money-laundering-compliance program (AML-compliance program), despite knowing of systemic deficiencies in the company’s AML compliance. The Shareholders didn’t make a pre-suit demand on Western Union’s Board of Directors to pursue this litigation, and the district court found no evidence that such demand would have been futile. The district court thus dismissed the case, reasoning that the Shareholders’ obligation to make a pre-suit demand on the Board was not excused. The Tenth Circuit concurred with the district court's decision to dismiss, and affirmed. View "City of Cambridge Retirement v. Ersek" on Justia Law

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Defendants ultimately filed two motions based on Federal Rule of Civil Procedure 59(e). The motions were decided by different judges. After the first judge denied the first motion, he retired and the court reassigned the case to another judge. Defendants then filed their second motion, reurging or elaborating on what they had argued in their prior motion. This time, the second judge granted the motion. The Tenth Circuit determined the motion as presented was an improper Rule 59(e) motion because it had simply rehashed arguments from the first motion. Because the motion was improper, the district court erred in granting it. The Court therefore reversed. View "Nelson v. Board of County Commissioners" on Justia Law

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Medicine Park Telephone Company appeals the Oklahoma Corporation Commission's denial of its application for reimbursement from the Oklahoma Universal Services Fund for reasonable investments and expenses incurred in providing primary universal service to its customers. The FCC created the Interstate Common Line Support (ICLS) program, which was paid from the federal Universal Service Fund. ICLS was available to, among others, rural incumbent carriers and was designed to help such carriers recoup some of the high fixed costs of providing telephone service in areas with fewer customers while also ensuring that their subscriber line charges remained affordable to their customers. Effective January 1, 2012, the FCC changed its rules to limit the operations expenses that may be included in an ICLS calculation. The FCC did not, however, eliminate the legal requirement that Medicine Park and other carriers of last resort continue to provide such services. After its federal ICLS support was eliminated by FCC order, Medicine Park submitted an application for reimbursement to recover losses because of its mandate; he PUD Administrator ultimately recommended that Medicine Park receive a lump-sum payment of $309,016.90 for calendar year 2014, and monthly recurring payments of $25,751.41, to begin January 1, 2015. Despite the recommendation from the PUD Administrator and the outside consulting firm independently hired by PUD to assist in the process, the Commission rejected the Administrator's final determination. By a vote of 2-1, following a two-day hearing on the merits, the Commission denied Medicine Park's application in full. The Commission found that Medicine Park included requests for reimbursement of expenses and investments that were not incurred entirely for the provision of primary universal services, that the Administrator did not determine whether Medicine Park's rates for primary universal services were reasonable and affordable, that the company did not seek alternative funding, and that recurring funding should not be awarded. Although the Commission was not bound by the Administrator's recommendation, the Oklahoma Supreme Court found the record reflected ample evidence with which to support the Administrator's determination. The Administrator, the independent expert hired by PUD to provide a neutral investigation, and one dissenting Commissioner all agreed that Medicine Park was entitled to funding, albeit at a reduced rate of its initial request. The Commission's wholesale denial of any funding was in error. View "Medicine Park Telephone Co. v. Oklahoma Corporation Comm." on Justia Law

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After plaintiff filed suit against defendant for injuries arising out of a car accident, he attempted to serve defendant by having a local sheriff's deputy leave a copy of the summons and complaint with defendant's father, who then handed them to defendant hours later. The Eighth Circuit reversed the district court's dismissal of the action and held that Minnesota recognizes "secondhand service." The court held that a simple intent to deliver the document to the intended recipient was all that was required, especially because the would-be process server must also know that a summons was being served. In this case, defendant intentionally delivered the papers to his daughter with knowledge of their contents. Accordingly, the court remanded for further proceedings. View "Michaud v. Davidson" on Justia Law

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Plaintiff, while a director of a nonprofit public benefit corporation called Wildlife Waystation, filed suit against defendants alleging claims of self-dealing and misconduct. The trial court sustained defendants' demurrers to the complaint, which claimed that plaintiff no longer had standing when the Waystation board of directors removed her as a director. The Court of Appeal reversed and held that plaintiff did not lose standing to maintain this action when Waystation removed her as a director. Rather, she had standing under Corporations Code sections 5233, 5142, and 5223 at the time she instituted this action, and her subsequent removal as director did not deprive her of standing. The court also held that the trial court erred in sustaining the demurrer without leave to amend for failing to join the Attorney General as a indispensable party and notifying the Attorney General of the action. Accordingly, the court remanded with instructions. View "Summers v. Colette" on Justia Law

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Plaintiffs, operators of a gas purification plant, filed suit against its insurer, Ace, after the insurer denied coverage for damage caused by broken metal brackets that secured crucial components. The Ninth Circuit affirmed the district court's application of Washington law and its discovery sanctions against plaintiffs. However, the panel reversed the district court's grant of summary judgment in favor of the insurer and held that there was a triable issue of fact as to whether the insurer was prejudiced by plaintiffs' remedial actions, whether plaintiffs' loss was fortuitous, whether the policy's Boiler and Machinery endorsement applied to independently confer coverage for plaintiffs' losses, whether the Endorsement's "accident" coverage applied, and whether a 16 month shutdown was consistent with the exercise of due diligence and dispatch. View "Ingenco Holdings, LLC v. ACE American Insurance Co." on Justia Law

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WildEarth Guardians appealed after the United States Forest Service published a 2014 environmental assessment (“EA”) to the Tennessee Creek Project, and subsequently issued a Decision Notice and Finding of No Significant Impact. The Service undertook the project for a stated purpose of protecting from insects, disease, fire, improvement of wildlife habitat and to maintain watershed conditions. One of the conclusions in the EA determined none of these actions would adversely impact the Canadian lynx. WildEarth Guardians alleged the EA failed to adequately assess the Project’s effects on lynx and by failing to prepare an environmental impact statement (EIS). The district court upheld the agency action. The Tenth Circuit affirmed the Agency’s actions, finding the Service satisfied its National Environmental Policy Act (NEPA) obligations when it reasonably concluded in its EA that under a worst-case scenario the lynx would not be adversely affected by the Project and reasonably concluded that an EIS was not necessary. View "WildEarth Guardians v. Conner" on Justia Law

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The Second Circuit affirmed the district court's dismissal of plaintiff's complaint with prejudice as a sanction for misrepresenting his litigation history. The court held that district courts may conduct limited inquiries into whether a litigant's fear of imminent danger under 28 U.S.C. 1915(g) is plausible. In this case, the district court did not err by concluding that plaintiff's claim of imminent danger was "without foundation" where plaintiff's explanation for why he was in imminent danger was both circular and completely conclusory. Furthermore, plaintiff unquestionably received adequate notice, and had an opportunity to be heard, before the district court dismissed his action. View "Shepherd v. Commissioner Annucci" on Justia Law

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This case presented two issues for the Court of Appeals' review: (1) whether the nonmarital biological child of an absentee father who never openly held her out as his own have standing under Code of Civil Procedure section 377.60 to sue for his wrongful death if she failed to obtain a court order declaring paternity during his lifetime?; and (2) if she did not have standing, did section 377.60 violate the state or federal equal protection clauses? Upon the specific facts of this case, the Court concluded the child did not have standing, and there was no equal protection violation. "We cannot imagine the Legislature intended to confer wrongful death standing on a child who had no relationship whatsoever with the decedent to the exclusion of the decedent’s other family members with whom he did have a relationship." View "Stennett v. Miller" on Justia Law

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The Second Circuit vacated the district court's dismissal of plaintiff's complaint, based on forum non conveniens grounds, alleging claims for damages under federal and state law in connection with a ʺgoing private mergerʺ by which certain controlling defendants purchased American Depositary Shares (ADSs) from Dangdang's minority shareholders. The court held that the district court abused its discretion by failing to consider the forum selection clause contained in the relevant documents and its impact on the forum non conveniens analysis. The court rejected defendants' claim that plaintiffs waived their reliance on the forum selection clause by failing to raise the issue in the district court. The court also held that remand to the district court was necessary for the district court to consider the scope and enforceability of the forum selection clause. View "Fasano v. Li" on Justia Law