"double gotcha" in court ruling

Mark Mandel thnidu at GMAIL.COM
Wed Aug 6 20:33:14 UTC 2008


There's nothing unusual about the expression, but I was surprised and
amused to find it in the text of a legal decision. I've put it in "***
 ***". The decision is related to the self-destruction of a company
that bought the company I used to work for

http://www.masslawyersweekly.com/index.cfm/archive/view/id/444306
Massachusetts Lawyers Weekly - Corporate - In pari delicto doctrine

"[I]t is impossible to ignore the close connection between the wrong
in which New Dictaphone was a 'player' (fraudulently inducing Old
Dictaphone into a merger) and the wrong that the claim seeks to
redress (the failure of Defendants to detect that they were being
defrauded). Put another way, the fraudulent player is suing the
defrauded controlling shareholders and directors for negligently (or
even recklessly) failing to detect the fraud, a ***double gotcha***.
According to the Trustee, Defendants repeatedly hamstrung the efforts
of the outside entities it hired to perform due diligence by limiting
the time and money allotted and ignoring red flags. ... These actions,
even if wrongful, pale in comparison to the intentional fraud
perpetrated by L&H (and imputed to New Dictaphone), satisfying the
first prong of the binary paradigm governing the in pari delicto
defense.  ...

--
Mark Mandel

------------------------------------------------------------
The American Dialect Society - http://www.americandialect.org



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