Contents

Preface  xiii

About the Editors  xv

About the Authors  xvii

1 Pre-Suit Investigation  1
Andrea Donovan Napp
I. The Importance of Pre-Suit Investigations in Business
Torts Cases  1
A. Mapping a Litigation Strategy  2
B. Managing Client Expectations  3
C. Preparing for Early Motion Practice  4
D. Remedies  4
II. The Components of a Pre-Suit Investigation  5
A. Factual Considerations  6
1. Identification of Key Facts—Getting Started   6
(a) Preliminary Client Meeting   7
(b) The Internet and Other Sources of Facts   8
2. Development of Facts—Identifying Witnesses and
Key Players  10
(a) Witness Interviews  10
(b) Identification of Key Documents   13
B. Legal Considerations  13
1. Identification of Substantive Legal Issues   14
2. Identification of Procedural Issues   15

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3. Identification of Likely Expert Witnesses   16

4. Early Identification of Litigation Strategy   17
III. Documenting Your Efforts  17

2 Alternative Dispute Resolution  19

Hon. Steven Platt (Ret.) and Daniel P. Carter
The Decision to Employ ADR  19
I. ADR Techniques  20
II. Mediation  22
A. When, and When Not, to Mediate  22
B. Choosing a Mediator  23
C. Preparation for Mediation/Settlement Conference
vs. Preparation for Litigation or Arbitration  24
D. Conduct of the Mediation/Settlement Conference  25
E. Confidentiality and Other Ethical Considerations
and Constraints on Counsel and Mediators  25
III. Arbitration  26
A. Choosing an Arbitrator  30
B. The Type of Award  32
C. Conduct of the Arbitration  33
D. Preparing the Client for Arbitration  34
Appendix  35
State Arbitration Statutes  35

3 The Complaint  37
Daniel D. Quick
I. Define the Objectives of the Complaint  37
II. Filing the Complaint with Preliminary Relief
Requested  40
III. Arbitral Demand vs. Litigation Complaint  41
IV. Selecting the Forum  42
A. State vs. Federal  42
B. Geography  43
V. Defendants  43
VI. Additional Business Torts Pleading Issues  45

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VII. Pleading Damages and Relief Requested  45

VIII. Attachments and Confidentiality  46

4 Emergency Relief  47
Peter J. Glennon
I. What Is Emergency Relief and When Is It Necessary?  47
II. Preliminary Injunctions  49
A. Overview  49
B. Federal Rules of Civil Procedure 65  49
C. Standard to Obtain a Preliminary Injunction?  50
1. Irreparable Harm   51
2. A Likelihood of Success on the Merits   52
3. Balance of Harms   55
4. Public Interest   56
D. What Is the Process and Procedure for Obtaining
a Preliminary Injunction?  56
1. Complaint or Counterclaim   57
2. Notice  57
3. Bonds/Security  58
4. Motion Papers   59
5. Supporting Evidence   60
E. Defending Against a Motion for Preliminary
Injunction  61
1. Bad Faith   61
2. Unclean Hands   62
3. Laches  62
4. Waiver  63
F. Appealing a Preliminary Injunction  63
III. Temporary Restraining Orders  63
A. Overview  63
B. What Is the Difference Between a TRO and a
Preliminary Injunction?  64
1. Notice  64
2. Duration  65
3. Security  66

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C. What Is the Standard and Procedure for

Obtaining a TRO?  66
IV. Checklists  67
A. Preliminary Injunction Checklist (Review of
Considerations and Procedure)  67
B. TRO Checklist (Review of Considerations and
Procedure)  68

5 Motions Directed to the Complaint  69

Heath Szymczak
I. Motion to Dismiss: Overview  70
II. Disruption of Plaintiff’s Selected Forum  73
A. Disruption of the Type of Jurisdictional Forum
Selected by the Plaintiff  74
1. Motion to Dismiss for Lack of Subject Matter
Jurisdiction—Rule 12(b)(1)  76
(a) Dismissal for Lack of Justiciable Claim   77
(b) Dismissal for Lack of Federal Question   78
(c) Dismissal for Lack of Diversity Jurisdiction   78
(d) Dismissal for Lack of Supplemental Jurisdiction   80
2. Motion to Compel Arbitration   81
3. Removal to Federal Court   82
B. Disruption of the Geographic Location of the
Forum Selected by the Plaintiff  83
1. Motion to Dismiss for Lack of Personal
Jurisdiction—Rule 12(b)(2)  83
2. Motion to Dismiss for Improper Process or
Service—Rules 12(b)(4) & (5)   85
3. Motion to Dismiss for Improper Venue—Rule
12(b)(3)  85
III. Motions Aimed at the Substance of The Complaint  86
A. Motion to Dismiss for Failure to State a Claim—
Rule 12(b)(6)  86
B. Motion to Dismiss for Failure to Join a Party—
Rule 12(b)(7)  88

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C. Motion for Judgment on the Pleadings—Rule 12(c)  90

D. Motion for More Definite Statement—Rule 12(e)  90
E. Motion to Strike—Rule 12(f)  91
IV. Conclusion  91

6 Answer, Affirmative Defenses, and Counterclaims  93

Chadwick A. McTighe
I. Answers  95
A. Rule 8(b)  95
1. Straying from the Rule Carries Risk   97
2. Read and Plead Carefully   101
3. Addressing Complex Allegations—Nuance Matters   103
B. Strategic and General Considerations  104
II. Affirmative Defenses  105
A. Rule 8(c)  105
1. What Constitutes an “Avoidance or Affirmative
Defense”?  105
2. Considerations Regarding How to Plead   107
B. General Considerations  110
III. Counterclaims  111
A. Rule 13  112
1. Compulsory Counterclaims   112
2. Permissive Counterclaims   113
B. Joining Additional Parties  114
C. Pleading Requirements and Considerations  115
IV. Amending Answers, Affirmative Defenses, and
Counterclaims  115
V. Conclusion  118

7 Discovery and Depositions  119

Deborah Edney
I. Introduction  119
II. Have a Plan: Discovery Planning in Business Torts  120

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III. Admitting (and Giving Up) What You’ve Got—

Required Disclosures  122
A. Witnesses  123
B. Documents  124
C. Damages  125
D. Insurance Policies  125
E. Conclusion on Initial Disclosures  125
IV. The Paper Chase: Written Discovery  126
A. Interrogatories  126
B. Requests for Production of Documents, Tangible
Things, and Entry onto Land  128
C. Requests for Admission  130
V. A Word (or Megabyte) on E-Discovery  131
A. How Much ESI Is There?  131
B. Preservation and Litigation Holds  132
C. Get a Handle on IT  133
D. Sourcing Your ESI  133
E. Processing and Reviewing the Data  134
VI. The Meat of the Matter: Depositions  135
A. The Basics  135
B. Getting Your Witness Ready  136
C. Speaking for the Corporation  137
VII. Who Else to Invite to the Party? Third-Party
Discovery  142
VIII. Wrapping Up  144

8 Expert Witnesses  145
Nelson A.F. Mixon and Catherine M. Cameron
I. OveRVIEW  145
II. Types of Experts in Business Torts Litigation  146
A. Damages  146
1. Forensic Accountants  146
2. Business Valuation  149
3. Appraisers  152

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B. Liability Experts  154
1. Forensic Accountants/Fraud Examiners   154
2. Business Ethics/Industry Practice Experts   155
3. Other Liability Experts   155
C. Experts in Discovery Disputes  156
III. Working with Experts  157
A. When to Involve Experts  157
B. Vetting Experts’ Qualifications  158
C. Scope of an Expert’s Work  159
D. Should an Expert Prepare a Report?  160
E. Ensuring Compliance with Evidentiary Standards  161
IV. Expert Discovery  162
A. Privilege Issues  162
B. Scope of Discovery on Experts  162
C. Expert Depositions  163
V. Experts at Trial  164
A. Reliance on Experts  164
B. Presentation of Expert Opinions  165
VI. Expert Appellate Issues  166

9 Summary Judgment  167
Peter J. Boyer
I. The Modern View of Summary Judgment  167
A. Emphasis on the Role of Summary Judgment  168
B. Burden of Proof and Summary Judgment  169
II. Strategic Considerations  170
A. Timing of the Motion  170
B. Showing Your Cards  170
C. The Forum and the Judge  171
D. Expense and Cost Benefit Considerations  171
III. Practice Pointers  172
A. Understand and Follow the Applicable Court
Rules  172
B. Present a Clear and Organized Record  172

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C. Consider the Admissibility of Evidence Relied

Upon  173
IV. Summary Judgment of Business Tort Issues  174
A. The Contract Case Dressed Up as a Business Tort  175
B. Claims of Fraud or Fraud in the Inducement  175
C. Breach of Fiduciary Duty Claims  176
D. Misappropriation of Trade Secrets  176
E. Tortious Interference with Actual or Prospective
Contractual Relations  177
F. Unfair Competition and Statutory Remedies  177
G. Statutory Preemption of Claims  177
H. Statutory Claims Providing for Enhanced
Recovery and Attorneys’ Fees  178

10 Trial Preparation  179
Matthew J. O’Hara
I. Early in the Case  179
A. Themes  180
B. Exhibits  180
C. Litigation Technology  181
II. After Discovery Closes and Trial Is Scheduled  182
A. How Will You Get Your Case into Evidence?  182
1. Witnesses  182
2. Exhibits  183
B. How Will You Attack Your Opponent’s Case?  185
1. Cross-Examinations  185
2. Objections to Exhibits and Deposition Designations   187
3. Motions in Limine   188
C. Preparing to Talk to the Judge or Jury  188
D. Jury Instructions  189
III. Working with Consultants and Support Staff  190
IV. Logistics of the Trial  192

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11 Presenting the Business Torts Case to a Jury  195

David B. Graeven, PhD
I. The Importance of Case Themes in a Business Torts
Case  195
A. Tools for Building Themes  196
1. The Story Model   197
2. Attribution Theory/Choice Theme   198
3. Counterfactual Thinking  199
4. Hindsight Bias   201
B. Power of Language  201
C. Teaching Opportunities  202
II. Witnesses in a Business Torts Case  202
A. What Jurors Say About Witnesses in Business
Cases  203
1. What They Like   203
2. What They Do Not Like   203
B. Overcoming Witness Problems  204
C. Tools for Change  205
III. Voir Dire and Strategic Jury Selection in a Business
Torts Case  206
A. Questions About Business Experience  206
B. Moral and Ethical Dimensions  207
C. Strike Characteristics for a Business Torts Dispute  207
D. Use of Juror Questionnaires  209
IV. Conclusion  210

Table of Cases  211

Index  220

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