OMNI CAPITAL INT’L V. RUDOLF WOLFF & CO

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OMNI CAPITAL INT’L V. RUDOLF WOLFF & CO Powered By Docstoc
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OMNI CAPITAL INT’L V. RUDOLF WOLFF & CO., US Court of Appeals, 5th Circuit, 1987. History: Original complaints were consolidated in District Court; Wolff/Gourlay moved to dismiss claims against them for lack of personal jurisdiction and securities law claims failed to state causes of action; District Court said it could exercise personal jurisdiction over Wolff/Gourlay after examining the extent of Wolff’s/Gourlay’s contacts w/the U.S.; then decided it lacked personal jurisdiction over them b/c of LA’s 5th Circuit then said federal courts must based their personal jurisdiction on a federal statute or rule Facts: Omni hired Rudolf to handle trades on an investment program involving commodity-futures trades on the London Metals Exchange; IRS disallowed income tax deductions claimed by participants in Omni’s investment program b/c the program’s trades on the London Metals Exchange weren’t bona fide arm’s-length transactions; Gourlay is Wolff’s rep Issue(s): Whether District Court can exercise personal jurisdiction over Wolff/Gourlay. Holding: District Court cannot exercise personal jurisdiction over Wolff/gourlay b/c it is not in CEA or LA long-arm statute Analysis: Article III does not limit a court’s personal jurisdiction Before a federal court can exercise personal jurisdiction, service of summons must be satisfied; absent consent, there must authorization for service of summons on defendant


				
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