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Thursday, February 21, 2008

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JH

This is an interesting issue, and I'm not aware of any other cases that directly address it. I do think that although this case holds that an "unlawful" violation can be based on out-of-state law, the circumstances where that could happen may be limited. For example, if the conduct at issue would be illegal under Florida law but occurred entirely in California and had no impact in Florida, I would think that a court would not allow an "unlawful" claim to be asserted with Florida law as a predicate.

But in this particular case, where the defendant was a Delaware corporation that allegedly violated Delaware corporate law in a way that had an effect in Claifornia, basing an "unlawful" claim on the conduct does not seem that anomalous. But I'm not sure that the holding would necessarily apply to other factual situations.

It's worth noting that the discussion of remedies in Process Specialties v. Sematech is outdated, but that should have no impact on its "unlawful" holding.

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