Shani Davis 11/23/16 Fred Stern & Company, Inc. (Ultramares Corporation v. Touche et al.) Fred Stern & Company, Inc. was a company in which self-serving attitude prevailed. In March 1924, Stern took a $100,000 loan from a finance company, Ultramares Corporation. Touche, Niven & Company had been Stern’s independent audit since 1920 and issued an audit report which allowed them to take out a loan. Touche knew that Stern intended to use the audit reports to retrieve external debt financing but was unaware of the banks or finance companies that received the audit reports. Fred Stern & Company declared bankruptcy by January 1925. Stern’s accountant who only identified himself as Romberg in court records, covered Stern’s bankrupt status from the …show more content…
The Plaintiff counsel demonstrated that just by looking at the invoices, one would have revealed that they were fake. The invoices lacked shipping numbers, customer order numbers, and other information. The court ruled that given the suspicious nature of the large December sales entry recorded by Romberg, the court stated that Touche should have especially reviewed the December sales invoices. Touche auditors found many errors, while company’s inventory, that collectively caused the inventory account to be overstated by more than $300,000, an overstatement of 90%. The juror’s rules that the company’s attorney failed to establish that the audit firm had intentionally fooled Ultramares. Regarding the negligence charge, the jury ruled in favor of Ultramares and ordered Touche to pay the company damages of $186,000. However, the judge overturned the jury’s ruling explaining his decision, that the jury overlooked the long-standing legal doctrine that only a party in privity could sue and recover damages resulting from a defendant’s negligence. Ultramares’ lawyers quickly appealed the trial judge’s decision. In a 3 to 2 vote, the appellate division decided that the trial judge erred in reversing the jury’s verdict on the negligence
United States v. Clemons Parties: The United States of America(Plaintiff) v. Eugene Milton Clemons and Dedrick Germond Smith(Defendants) Facts: In the case of Eugene Milton and Dedrick Smith verses the United State, the defendants are charged with murdering George Douglas Althouse. George Althouse was a Special Agent with the Drug Enforcement Administration(DEA).
As I mentioned earlier not everyone is aware of what The Family and Medical Leave Act is, what the law is for, and how it can be or should be used when they should if the company where they work employs more than 50 people. By law employers are supposed to inform all employees about FMLA. In the case of Jeffrey Angstadt verses Staples Contract and Commercial, Inc. Angstadt was wrongfully fired because he did not know about the FMLA and could not balance his work responsibilities and taking care of his ill wife.
The Court of Appeal ordered the trial court to reconsider its decision on Knoller’s motion for retrial in light of its definition of implied malice. Knoller appealed the Court of Appeal’s
In the Pankratz Implement Company v. Citizens National Bank case. Rodger House purchased a tractor through and implement dealer. He financed it through them the finance company secures the loan with the tractor being used as collateral. During the process the customer’s name was spelled incorrectly on the financing paperwork. The original dealer gave the security and interest of the note over to another creditor Citizens National Bank.
The summary judgment in the trial court for the manager was reversed and remanded. The court ruled that the decision the trial court made regarding the claim Ellison made about intentional infliction of emotional distress was valid and
As forewoman of the jury we believe that Mr. Harmon was the look out for the robbery. Two witnesses stated that Mr. Harmon was to go into the drugstore before the robbery was supposed to happen and see if there were any cops or probable witnesses to the crime that ended Mr. Nesbitt’s life. Mr. Harmon’s own journal he stated that he participated in the robbery. These reports of the actions lead us to the conclusion that Mr. Harmon participated in the crime.
The court cases Goldberg and Wheeler do not stand for the proposition that only welfare benefits for people in extreme circumstances are entitled to pre-termination hearings. However, this is one situation where cutting off benefits with little or no notice could affect the well-being of the family or person. Any programs that offer they type of assistance people rely on to survive could benefit from pre-termination hearings, not just the welfare program. Welfare is one of the main public assistance programs, although I think housing assistance and food stamps might fall into the welfare category, they are also in need of a pre-termination hearing. In the Goldberg and Wheeler cases, California and New York did not want to give anyone a hearing
In the case Lindner Fund v. Abney there was a corporation located in Phoenix, Arizona called Texscan Corporation. This company was audited by Coopers & Lybrand (Cooper) in which reviewed financial records. One of the investors of Texscan was Lindner Funds and after receiving and reviewing the audited financial material from Texscan, Lindner Funds made the decision to invest in Texscan. But there was an unknown reason Texsca, suffered financial difficulties and Lindner suffered as well.
Memorandum To: Attorney of Jennifer Lawson From: Jackson Biegler Date: October 7, 2017 Re: Greene’s Jewelry Wholesale v. Jennifer Lawson for Breach of Contract Application of the Law to the Facts Greene’s defense should build its case around precedence and law while being shielded by public policy. Greene’s defensive position is precise and to the point, as Greene’s is in the process of suing Ms. Lawson for her part in breach of confidentiality for contacting Howell shortly after being fired from their company. Ms. Lawson offered to work for Howell, a direct competitor of Greene’s and provided Howell with confidential information about Ever-gold.
In the audit, if there is any allegation of possible frauds or illegal acts, the auditor has to make further investigations to support his or her preliminary conclusion. However, the scope of the independent investigation is not sufficient or the evidence concerning possible frauds or illegal acts is absent, the engagement team might take the following actions. According to AU 317.08, the auditor might inquire the management and audit committee of Jersey Johnnie’s Surfboard Inc. about its compliance with laws and regulations, and its knowledge of violations or possible violations of laws or regulations. Moreover, the auditor might make inquiries of the management concerning the company’s policies relative to the prevention of illegal acts and
In the retrial, the jury again favored for
The jury also decided that the retailer did not violate the express warranty associated with the Shopsmith tool. They would go on to rule that the manufacturer wasn’t liable for any breach in or breakdown of warranty. The courts submitted to the jury only the cause of action alleging breach of implied warranties against the retailer and the causes of action alleging negligence and breach of express warranties against the manufacturer. Eventually the verdict would come out in favor of the retailer instead of Greenman. That verdict would be reversed in the Greenman v. Manufacturer.
General Motors resulted to a $50 million jury award to Harvey “in compensatory damages and an additional $100 million in punitive damages”. This enormous jury judgments may be interpreted as a ‘deep pocket’ jury bias against rich defendants (e.g. corporations, governments, and wealthy individuals) that are disproportionate to the observable liability of the parties concerned. Vidmar (217) defined as “a large judgment without much concern for the legal technicalities” wherein “the jury system seems to show a desire for punitive [action] and retribution above and beyond the degree of injury”. If this bias exists in the tort system, it constitutes an ethical problem because the tort system supposedly must uphold the principle of factuality: “liability should be based on a factual determination that the defendant failed to meet certain standards” (MacCoun “Is There a ‘Deep-Pocket’ Bias in the Tort System?” 1). It also promotes two objectives: just compensation and deterrence against future harms (1).
Litigation outcomes in the tort system are substantially correlated to the merits of the claims brought. Hyman and Silver summarize multiple studies supporting the proposition that the current tort system awards injured parties based on the merits of their claim The summary of the research revealed that those injured by actual malpractice were usually compensated, those not injured usually did not receive compensation “…the malpractice system does not sort cases perfectly, but perfection is an unrealistic standard." (Hyman & Silver, 2015) The jumbo-verdicts argument is not supported for two reasons. First, actual verdicts are often not an accurate representation of the amount paid by the losing party.
If an extensive set of questions is required, then the treatment of employees (Specialists in this case) varied too much to form a true class action lawsuit. The Appellate court also stated that the case seemed to focus less on how to classify tasks, and company policies and instead more on the different tasks that each specialist performed; which did not pertain to a class action lawsuit. Mies then faulted the court on not considering that in order for a Specialist to be exempt they must regularly exercise discretion and independent judgment. She then again faulted the court for not considering whether every specialist could not, and did not perform this independent work because of policies put in place by Sephora that govern all aspects of the store. The trial court explained that the resolution of this issue would have to focus less on Sephora’s policies and more on the individual Specialists declarations.