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What is 'business judgement rule' aff defense?


Casper
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4 minutes ago, Casper said:

I'm looking at OC cases on my county courts website, and one lawyer used 'business judgement rule' among other defenses and it seems to have worked.  the OC dismiseed, but without prejudice?

 

I looked up the definition and it doesn't make much sense.

What was the cause of action against the defendant?  If it was the average credit card lawsuit, it sounds like attorney just threw in every defense, even ones that inapplicable, he could find.

“The business judgment rule in Texas generally protects corporate officers and directors, who owe fiduciary duties to the corporation, from liability for acts that are within the honest exercise of their business judgment and discretion.”

https://www.txcourts.gov/media/989197/120045.pdf

The business judgment rule would not apply to normal credit card lawsuits.

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This is the old kitchen sink approach. 
 

Back in the old days there was lots of stuff on the internet telling people to defend themselves in civil cases with every affirmative defense known to mankind. 
 

I did they a few times.  It never worked for me. 
 

Arbitration did work. 
 

It could be that this particular JDB is only after the low hanging fruit.  Once a law firm is involved, they aren’t low hanging fruit.  Some JDBs will drop the case then.  Others won’t  

 

Maybe this particular lawyer follows the kitchen sink approach.  Since he got the desired outcome, he may get positive reinforcement for the kitchen sink approach  

 

 

 

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5 hours ago, BV80 said:

The business judgment rule would not apply to normal credit card lawsuits.

Would it apply if the card was opened for a now defunct business and the person sued gave a personal guarantee on the account when opened?

2 hours ago, Casper said:

An OC account.  I wonder why they dismissed without prej?  They may have struck a deal or something. 

Chances are high they reached a settlement.  If the debt is paid as part of that settlement regardless of amount agreed on, the dismissal with our without prejudice doesn't matter as the debt no longer exists after payment.

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56 minutes ago, Clydesmom said:

Would it apply if the card was opened for a now defunct business and the person sued gave a personal guarantee on the account when opened?

I’m thinking it would not apply.  The business judgment rule protects officers and directors from business decisions that may gave a negative effect on the company.  I don’t see how that would apply to someone who who promised to pay a credit card account.  

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  • 7 months later...
  • 2 weeks later...

The definition that you looked at is interpreted differently everywhere and in different cases has its own weight and meaning. In our state, this concept is of great importance in the case of theft of property, and therefore our court does not have the right to reject this concept. There is revenue tracking software that can determine the number of sales made by a company, and if this application reveals a failure in the company, then they can open a trial in which this definition is used. I do not know how it is accepted in your state there, but we have all cases of theft very strictly judged. I hope that everything will be fine with you and OC will accept your application!

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