Obashi Investment Ltd. v. Tibet Pharma., Inc—civil / securities—reversal—Hardiman

In a rare certified interlocutory appeal, the Third Circuit today held that, as a matter of law, non-voting board observers affiliated with an insurer’s placement agent were not similar to directors for purposes of Section 11 of the Securities Act and therefore were not subject to suit under that provision.

Joining Hardiman was Scirica; Cowen dissented. Arguing counsel were A. Neil Hartzell of Boston and Michael Tremonte of New York for the appellants and Laurence Rosen of the Rosen Law Firm for the appellees.

Tennessee Gas Pipeline Co. v. Permanent Easement for 7.053 Acres—civil—reversal—Greenaway

From the introduction of today’s majority opinion:

On interlocutory appeal, this case now presents us with a single legal issue: whether state law or federal law governs the substantive determination of just compensation in condemnation actions brought by private entities under the [Natural Gas Act]. Because federal law does not supply a rule of decision on this precise issue, we must fill the void with a common law remedy. In doing so, we opt to incorporate state law as the federal standard. Accordingly, we will reverse the District Court’s order reaching the opposite result.

Joining Greenaway was Ambro. Chagares dissented, acknowledging that the “Supreme Court may well agree when it considers this legal issue” and that other courts’ holdings support it but arguing that the contrary outcome was compelled by a 1943 Supreme Court case. Arguing counsel were Elizabeth Witmer of Saul Ewing for the gas company and John Stieh of Levy Stieh for the landowners.