M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

Tuesday, December 4, 2007

Genesco: The Scope of Trial

Last week and as I previously predicted, the judge in the Genesco Tenn. trial issued an order that the trial next week will be on both the fraud and MAC claims.  In addition, the Judge ruled that she would not rule on Genesco's motion to dismiss the fraud claims until after trial as there is no time and this is otherwise a fact-specific inquiry which depends upon the intent of the parties.  I am not sure that this is a big defeat for Genesco.  The Judge likely does not want to delay resolution of this dispute.  And,  at a time so close to trial, she is likely loathe to simply throw out the fraud claims without hearing the factual evidence. 

The Judge also ordered that if she did rule in favor of Genesco's claims she would hold a separate trial on the damages remedy.  I think this is a smart move.  She is clearly aware of the N.Y. action and the effect an negative ruling will have on Finish Line.  So, I don't think this is adverse to Finish Line or is something to be overly read into -- it just means she knows the stakes.  Both parties are lucky to have  this Judge deciding this dispute. 


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