Logourl black
From our private database of 14,000+ case briefs...

Diamond v. Oreamuno

New York Court of Appeals
248 N.E.2d 910 (N.Y. 1969)


Facts

Management Assistance, Inc. (MAI) financed computer installations through sale-and-leaseback arrangements. Under the arrangements, MAI would maintain the computers. Due to a lack of capacity, MAI asked the computer manufacturer to maintain the machines. This increased MAI’s expenses and reduced its net earnings. This information was not available to the public. Oreamuno and Gonzalez (defendants), MAI’s chairman and president, respectively, had this information. The defendants sold a large amount of MAI stock before the news came out, and the stock price fell significantly. The defendants had held the securities for more than six months before they sold them. Diamond (plaintiff), a shareholder of MAI, brought a derivative action against Oreamuno and Gonzalez, alleging a breach of fiduciary duties and seeking to compel an accounting for the profits on the sales they realized using their privileged position and inside information. The defendants moved to dismiss the complaint for failure to state a claim, arguing that there was no injury to MAI, and thus the corporation should not recover the profits. The defendants further argued that the federal regulatory scheme preempted state law in this area. The motion was denied.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Fuld, 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, please start your free trial or log in.

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 175,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.