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Law School Case Brief

Young v. Jones - 816 F. Supp. 1070 (D.S.C. 1992)


Fed R. Civ. P. 15a states that, as a general rule, amendment should be liberally granted.


Accountants in a Bahamian accounting firm issued an unqualified audit letter regarding the financial statement of a company. On the basis of that financial statement, investors from Texas who deposited over a half-million dollars in a South Carolina bank. Without reason, the funds deposited disappeared. The investors learned that the financial statement of the company was falsified, and the money was allegedly sent from the South Carolina Bank to the company. The investors filed suit against the Bahamian and U.S. accounting firms to recover damages for the loss of their investment. The Bahamian accounting firm moved for dismissal of the case alleging lack of personal jurisdiction, and the U.S. accounting firm moved for dismissal for failure to state a claim. The investors filed a motion to amend complaint.


Should the court grant all three motions?




The court granted all three motions because the court rules permitted the amendment of the complaint, the court lacked personal jurisdiction over the Bahamian defendant, and the complaint failed to state a claim against the defendant U.S. accounting firm.

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