San Mateo County Transit District v. Dearman, Fitzgerald and Roberts, Inc. Larry D. Harrison Larry Williams Eric L. Witherow Vincent R. Kemendo
Opinion
Opinion
Noonan, J.
This case involves principally the narrow question of whether the district court has personal jurisdiction over Vincent R. Kem-endo in a suit brought by San Mateo County Transit District (SamTrans) under the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq. The district court held that it lacked personal jurisdiction of Kemendo and entered a Rule 54(b) judgment dismissing the action against him. We reverse and remand for trial.
PROCEEDINGS
SamTrans brought an action for securities fraud against the brokage firm of Fitzgerald, DeArman and Roberts, Inc. (FDR) and Kemendo, its Treasurer and Vice President for Administration and Budget. .Kem-endo moved to dismiss for lack of personal jurisdiction. SamTrans produced as evidence of Kemendo’s involvement in the fraud a letter dated February 29, 1988 from Eugene P. de Verges, general counsel of FDR, to the National Association of Securities Dealers responding to the latter’s inquiry about the transactions that are the object of this suit. The letter stated: “The price of these trades was approved by Mr. Vincent R. Kemendo, a Vice President of FDR.” The deposition Sam-Trans took of Eric Witherow, the salesman involved, stated that…