Court Opinion

ID: 9461928
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:28:03.662263+00
Date Added: 2024-06-11T17:37:19.701917
License: Public Domain

ENGLAND, Justice
(concurring specially).
I would answer both certified questions in the negative on the narrow grounds (i) that Florida law requires an allegation of corporate damage as a predicate to the maintenance of a shareholder’s derivative suit,1 and (ii) that an action for civil damages must allege more than merely speculative damages.2 In this case plaintiffs’ allegation of damage is to the effect that Lum’s, Inc. sustained immeasurable damages as a result of open market transactions in its stock by defendant-tippee investor, acting on inside information furnished by defendant-tipped stockbroker. It is speculative at best to find corporate financial loss in' the market price depression occasioned by these transactions.3

. Decisions of the Florida district courts of appeal are conclusive on questions of Florida law when not in conflict with other decisions of this Court. Fla.Const., art. V, §§ 4(b)(1) and 3(b)(3); Ansin v. Thurston, 101 So.2d 808 (Fla. 1958). There being no decisions of this Court on the elements of a shareholder’s derivative suit, their identification in decisions of the district courts of appeal are determinative. Conlee Constr. Co. v. Cay Constr. Co., 221 So.2d 792 (4th Dist.Ct.App.Fla. 1969) (dictum); Nelson v. Miller, 212 So.2d 66 (3d Dist.Ct.App.Fla. 1968); Palma v. Zerbey, 189 So.2d 510 (3d Dist.Ct.App.Fla. 1966), cert. denied, 200 So.2d 814 (Fla. 1967); Citizens Nat’l Bank v. Peters, 175 So.2d 54 (2d Dist.Ct.App.Fla.1965); Maro-nek v. Atlantis Hotel, Inc., 148 So.2d 721 (3d Dist.Ct.App.Fla. 1963); James Talcott, Inc. v. McDowell, 148 So.2d 36 (3d Dist.Ct.App.Fla. 1962).

. See Gilliland v. Mercantile Inv. & Holding Co., 147 Fla 613 3 So.2d 148 (1941).

. The speculative nature of possible corporate damage is compounded by the fact that trading in the company’s stock was suspended on the very afternoon of defendant’s sales for a company announcement, which proved to be the “t¡PPed” news of reduced corporate eamtugs.