What is 'business judgement rule' aff defense?

[Casper]

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.

[BV80]

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.

[Casper]

Yeah, that's what it was.  Just a credit card account.  Weird.

[BackFromTheDebt]

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  

 

 

 

[BV80]

31 minutes ago, BackFromTheDebt said:

This is the old kitchen sink approach. 

Exactly!  If it was an attorney that who used that approach, I’m thinking he/she is not a great attorney.

[Casper]

This was Discover card.  An OC account.  I wonder why they dismissed without prej?  They may have struck a deal or something.  I just thought it was a strange defense.

[Casper]

here we go, I went back and found it

[Clydesmom]

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.

[BackFromTheDebt]

59 minutes ago, Casper said:

here we go, I went back and found it

Classic kitchen sink.  Useless. 

[BV80]

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.  

[MouxxtyRist]

Guys it's good topic, thank you!

[alwayswinning36]

On 9/21/2021 at 3:40 PM, Casper said:

This was Discover card.  An OC account.  I wonder why they dismissed without prej?  They may have struck a deal or something.  I just thought it was a strange defense.

They dismissed without prejudice to preserve their right to refile the matter so long as they are legally able to do so. There is no other reason other than preserving that right.

[NikorMavel]

The "business judgment rule" is a legal principle that generally protects directors and officers of corporations from personal liability for their business decisions. It applies when directors or officers are accused of breaching their fiduciary duties to the company. Under the business judgment rule, courts are generally not inclined to review decisions made by directors and officers, so long as those decisions were made in good faith, with reasonable care and in the best interests of the company. The rule assumes that directors and officers act with the requisite knowledge, skill and diligence in making business decisions. But despite all the principles, it is much easier than getting caught on the Internet, on threatening sites like https://deeplab.com/security/experts-from-infoblox-identified-decoy-dog-a-threat-actor-that-was-active-the-whole-year.