Logourl black

Denny v. Carey

United States District Court for the Eastern District of Pennsylvania
72 F.R.D. 574 (E.D. Pa. 1976)


Facts

The plaintiff brought a class action suit against defendants on behalf of all individuals who purchased First Pennsylvania Corporation (First Penn) securities. The plaintiff alleged that the defendants made false and fraudulent statements in an attempt to hide First Penn’s financial condition. Specifically, the plaintiff alleged that First Penn: included as income interest accruals when borrowers had already defaulted; sold foreclosed properties at not arm’s length terms to avoid reporting a loss on the properties; failed to account for certain uncollectibles in real estate loans; and hid loan defaults by entering into modifications with borrowers. The defendants filed a motion to dismiss for failure to state a claim based on Rule 9(b) of the Federal Rules of Civil Procedure, arguing that the 9(b) standard is a “rigorous” one. Rule 9(b) provided that when a plaintiff alleges fraud or mistake he must plead the circumstances of that fraud or mistake specifically, but may plead conditions of the defendant’s mind such as intent or knowledge generally.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision. To access this section, start your 7-day free trial of Quimbee for Law Students.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, start your 7-day free trial of Quimbee for Law Students.

Holding and Reasoning (Lord, III, C.J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, start your 7-day free trial of Quimbee for Law Students.

Here's why 90,000 law students rely on our case briefs:

  • Reliable - written by law professors and practitioners not other law students.
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your class - works on your mobile and tablet.
  • 12,195 briefs - keyed to 164 casebooks.
  • Uniform format for every case brief.
  • Written in plain English - not in legalese and not just repeating the court's language.
  • Massive library of related video lessons - and practice questions.
  • Ability to tag case briefs in an outlining tool.
  • Top-notch customer support.
Start Your Free Trial Now