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Omni Capital International v. Rudolf Wolff & Co.
United States Supreme Court
484 U.S. 97 (1987)
Omni Capital International, Ltd. and Omni Capital Corporation (“Omni”) (defendant) traded on the London Metals Exchange. In order to facilitate this practice, they enlisted the assistance of Rudolf Wolff & Co. (third party defendant), a British corporation that served as a broker, and James Gourlay (third party defendant), a British citizen who was Wolff’s representative with Omni. After the IRS refused to allow tax deductions by Omni investors due to the fact that the investments were not arm’s-length transactions, the investors (plaintiffs) sued Omni for fraud in the United States District Court for the Eastern District of Lousiana. Omni impleaded Gourlay and Wolff, alleging that they were responsible for improper trading activities. Gourlay and Wolff sought dismissal of the claims, arguing that the court lacked personal jurisdiction. The court of appeals ruled in favor of Gourlay and Wolff.
Rule of Law
Holding and Reasoning (Blackmun, J.)
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