Jones

Jones v. Martinez CA2/6

Good Law
230 Cal. App. 4th 1248
Court of Appeal of CaliforniaOctober 2, 2014B249146California1,996 words

Opinion

Opinion

Burke, J.

Danny Jones filed this shareholder derivative action on behalf of Deckers Outdoor Corporation to recover damages he contends it suffered as a result of misconduct by Deckers’s officers and directors. The trial court sustained respondents’ (Respondents) demurrer with leave to amend but Jones elected not to file an amended complaint. Jones appeals from the resulting judgment of dismissal. Jones asserts the trial court erred by concluding Delaware law applies to bar discovery requests he served on Deckers shortly after his complaint was filed. We affirm.

FACTUAL AND PROCEDURAL HISTORY

Jones owns 1,900 shares of Deckers common stock. Respondents are current or former officers or members of Deckers’s board of directors. Deckers is a Delaware corporation based in Goleta, California, that manufactures sheepskin footwear and other apparel. Its shares are traded on the NASDAQ exchange.

On July 26, 2012, Jones commenced this shareholder derivative action against Deckers’s board of directors and officers. Jones’s complaint asserts “claims for insider trading . . . , breach of fiduciary duty, breach of the duty of honest services, and unjust enrichment” based upon allegedly false…

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