Question

3. Charlie Company is headquartered in Wisconsin. Charlie's auditors are headquartered in Minnesota. Jeffrey lives in Bloomington, Indiana but works in Chicago, Illinois. Based on a tip from his boss, Jeffrey calls his stockbroker (Dustin, who has offices in Chicago) and instructs him to purchase 1,000 shares of Charlie Company despite never having requested or reviewed Charlie Company's financial statements. Charlie Company is traded on the New York Stock Exchange and the transaction takes place 15 minutes later on the floor of the exchange.

Charlie Company declared bankruptcy three months later and Jeffrey lost his entire investment. Jeffrey sued Charlie Company's auditors for ordinary negligence.

The trial is scheduled for hearing in Madison, Wisconsin. Before the opening of the trial, the attorney for the auditors objects to the trial being held in Wisconsin, since the transaction between Jeffrey and Dustin took place in Illinois. The attorney asks that the trial be moved to Illinois.

Required:

A. Why would the attorney ask for the trial to be moved?

B. What defense would you raise if you were the auditors' attorney?

Answer 1

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