Also known as: panels · panelation · jury panel
Written by attorneys — see sources below.
A group of one or more individuals appointed by a court to determine whether maintaining a derivative proceeding is in the best interests of the corporation.
Pablo Perez files a derivative suit against Precision Tools alleging breach of fiduciary duty by its directors. The corporation moves for dismissal and requests appointment of a panel. The court appoints one individual to investigate and decide if the suit serves the company's best interests.
After the court-appointed panel concludes that continuing the derivative action against Precision Tools would not benefit the corporation, Pablo Perez must prove that the panel's determination failed to meet statutory requirements. The burden shifts because the panel was formed under the court-appointment provision.
Pablo Perez files a derivative suit against Precision Tools. The corporation moves for dismissal and the court appoints a panel that recommends dismissal. On appeal the reviewing court accepts the panel recommendation after confirming statutory procedures were followed.
In September 1976, respondent David Washington committed a series of crimes over a ten-day period in the Miami area that included three brutal stabbing murders along with torture, kidnapping, severe assaults, attempted murders, attempted extortion, and theft. After his two accomplices were arrested, Washington surrendered to police and gave a lengthy statement confessing to the third criminal episode. The State of Florida indicted him for kidnapping and murder and appointed an experienced criminal lawyer to represent him. Washington waived his right to a jury trial against counsel's advice and pleaded guilty to all charges, including the three capital murder counts. In the plea colloquy he stated that he had committed a string of burglaries but had no significant prior criminal record and that he had been under extreme stress caused by his inability to support his family. Counsel spoke with Washington about his background, contacted his wife and mother by telephone, but did not seek out character witnesses or request a psychiatric examination. At the sentencing hearing before the trial judge, counsel's strategy relied primarily on the plea colloquy to convey remorse and emotional stress and argued that these factors justified sparing Washington the death penalty. Counsel successfully moved to exclude Washington's rap sheet and decided not to request a presentence report because it would have included his criminal history. The trial judge found multiple aggravating circumstances for each murder and no mitigating circumstances, sentencing Washington to death on each of the three murder counts. The Florida Supreme Court affirmed the convictions and sentences on direct appeal. Washington sought collateral relief in state court, claiming ineffective assistance of counsel on six grounds including failure to request a psychiatric report, investigate and present character witnesses, and seek a presentence investigation report. He submitted fourteen affidavits from friends, neighbors, and relatives willing to testify and two reports from a psychiatrist and psychologist. The state trial court denied relief without an evidentiary hearing, and the Florida Supreme Court affirmed. Washington then filed a petition for a writ of habeas corpus in the United States District Court for the Southern District of Florida. After an evidentiary hearing at which trial counsel testified, the District Court denied relief, concluding that although counsel made errors in judgment by failing to investigate mitigating evidence further, no prejudice resulted. The Court of Appeals for the Fifth Circuit reversed and remanded for application of a new framework it developed for analyzing ineffectiveness claims. The Supreme Court granted certiorari to consider the proper standards for judging claims of ineffective assistance of counsel in a capital sentencing proceeding.
View casePablo Perez files a derivative suit against Precision Tools. After the court appoints a panel that finds the suit would not benefit the corporation, the reviewing court accepts the panel determination and dismisses the action.
Washington has prohibited assisting suicide since its territorial days. In 1854, the first Territorial Legislature outlawed assisting another in the commission of self-murder. The current statute, Wash. Rev. Code § 9A.36.060, provides that a person is guilty of promoting a suicide attempt when he knowingly causes or aids another person to attempt suicide, and classifies it as a class C felony punishable by up to five years imprisonment and a $10,000 fine. Washington's Natural Death Act, enacted in 1979, states that the withholding or withdrawal of life-sustaining treatment at a patient's direction shall not constitute a suicide, but the state has consistently rejected efforts to legalize physician-assisted suicide, including a 1991 ballot initiative defeated by voters. The respondents in this case are four physicians who practice in Washington and treat terminally ill patients, three terminally ill patients who sought to end their lives with physician assistance and have since died, and Compassion in Dying, a nonprofit organization that counsels people considering physician-assisted suicide. The physicians declared that they would assist their patients in ending their lives if not for the assisted-suicide ban. Petitioners are the State of Washington and its Attorney General. In January 1994, the respondents filed this action in the United States District Court for the Western District of Washington. They sought a declaration that Wash. Rev. Code § 9A.36.060 is unconstitutional on its face and an injunction against its enforcement. The District Court held that the statute was unconstitutional. A panel of the Court of Appeals for the Ninth Circuit reversed that decision, but the full court sitting en banc reversed the panel and affirmed the District Court. The Supreme Court granted certiorari to review the case.
View casePablo Perez files a derivative suit against Precision Tools. The corporation obtains a court-appointed panel whose determination leads to dismissal. The panel's role under the statute is upheld on review.
In February 2002, Vincent and Liza Concepcion entered into an agreement for the sale and servicing of cellular telephones with AT&T Mobility LLC. The contract provided for arbitration of all disputes between the parties but required that claims be brought in the parties' individual capacity and not as a plaintiff or class member in any purported class or representative proceeding. The agreement authorized AT&T to make unilateral amendments, which it did to the arbitration provision on several occasions. The parties agree that the December 2006 revisions control. The revised agreement requires customers to complete a one-page Notice of Dispute form. It allows AT&T to offer settlement. It provides that AT&T must pay all costs for nonfrivolous claims. Arbitration must take place in the county where the customer is billed. For claims of $10,000 or less, the customer may choose in-person, telephone, or submission-based proceedings. The agreement preserves the right to bring claims in small claims court. It requires AT&T to pay a $7,500 minimum recovery plus twice the claimant's attorney's fees if the arbitration award exceeds AT&T's last written settlement offer. The Concepcions purchased AT&T service advertised as including free phones but were charged $30.22 in sales tax based on the phones' retail value. In March 2006, the Concepcions filed a complaint against AT&T in the United States District Court for the Southern District of California. Their suit was consolidated with a putative class action alleging that AT&T had engaged in false advertising and fraud by charging sales tax on phones it advertised as free. In March 2008, AT&T moved to compel arbitration under the terms of its contract with the Concepcions. The Concepcions opposed the motion on the ground that the arbitration agreement was unconscionable under California law because it disallowed classwide procedures. The District Court denied AT&T's motion. It described the arbitration agreement favorably in several respects. Nevertheless, the court found the provision unconscionable under the California Supreme Court's Discover Bank decision because AT&T had not shown that bilateral arbitration adequately substituted for the deterrent effects of class actions. The Ninth Circuit affirmed. It also found the provision unconscionable under California law as announced in Discover Bank. The court held that the Discover Bank rule was not preempted by the Federal Arbitration Act because the rule was simply a refinement of the unconscionability analysis applicable to contracts generally in California. The Supreme Court granted certiorari.
View casePablo Perez files a derivative suit against Precision Tools. The court appoints a panel that concludes continuation is not in the corporation's best interests, shifting the burden to Perez to show the panel failed statutory requirements.
In July 1980, respondent Jan Hannah purchased a building at 201 Featherston Street in Cleburne, Texas. Hannah intended to lease the property to Cleburne Living Center, Inc. (CLC) for use as a group home. The home would house thirteen mentally retarded men and women under constant staff supervision. The building contained four bedrooms and two baths, and CLC planned to add a half bath while complying with all applicable state and federal regulations for an Intermediate Care Facility for the Mentally Retarded. The site lay in an R-3 Apartment House District. The city's zoning ordinance permitted apartment houses, boarding houses, hospitals, and nursing homes in that district without special permission. However, the ordinance required a special use permit, renewable annually after a public hearing, for hospitals for the insane or feeble-minded. The city classified the proposed group home as a hospital for the feeble-minded and informed CLC that a permit was required. After a public hearing, the City Council voted three to one to deny the application. CLC and its prospective residents filed suit in federal district court against the city and its officials. They alleged that the ordinance and its application discriminated against the mentally retarded in violation of the Equal Protection Clause. The district court upheld the ordinance and the denial. It found that the council's decision was motivated by the residents' mental retardation yet rationally related to legitimate interests such as neighborhood safety and property values. The Court of Appeals for the Fifth Circuit reversed, holding that mental retardation is a quasi-suspect class and that the ordinance was invalid both facially and as applied. The Supreme Court granted certiorari to review the equal protection issues raised by the zoning ordinance and its application to the proposed group home.
View caseThe court appoints the panel upon motion by the corporation. The panel then evaluates whether the derivative proceeding is in the corporation's best interests.
Supporting sources
The plaintiff must prove that the requirements for dismissal have not been met. This allocation applies specifically because the panel was appointed by the court rather than by the board or a board committee.
Supporting sources
The court may dismiss the proceeding if the panel determines that maintaining it is not in the corporation's best interests, provided the panel followed proper procedures.
Supporting sources