Decisions in Criminal, Breach of Fiduciary Duty, and Class Action Matters - U.S. Third Circuit
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Decisions in Criminal, Breach of Fiduciary Duty, and Class Action Matters

In Official Comm. of Unsecured Creditors of Allegheny Health, Educ. & Research Found. v. Price WaterhouseCoopers, LLP, No. 07-1397, the Third Circuit dealt with a now bankrupt nonprofit company's committee's action against a financial auditing company for breach of contract, professional negligence, and aiding and abetting a breach of fiduciary duty.  In remanding the district court's grant of the defendant's motion for summary judgment, the court held that Pennsylvania law requires an inquiry into whether the third party dealt with the principal in good faith. 

Greene v. Palakovich, No. 07-2163, concerned a challenge to the district court's denial of defendant's petition for habeas relief for his convictions for second degree murder, robbery, and conspiracy.  In affirming the denial, the court held that, "clearly established federal law" should be determined as of the date of the relevant state court decision, and here, the Supreme Court decision that defendant wishes to rely on, Gray v. Maryland, 523 U.S. 185 (1998), had not yet been decided at the time of the relevant state court decision.   

Sheinberg v. Sorensen, No. 08-4148, concerned plaintiffs' action against companies affiliated with their, now bankrupt, former employer, alleging violations of the Fair Labor Standards Act and other claims.  In vacating the district court's denial of plaintiffs' motion to recertify, the court held that the district court not only failed to follow Rule 23(g) but also failed to apply the alternative standard it identified for determining the adequacy of counsel to the facts before it.   

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