In re Turner Enterprises Litigation: Appeal of Kentucky Attorney General , 521 F.2d 775 (1975)

Does a District Court, in deciding a class action, have authority to enjoin the prosecution of a similar case in state court?

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The Court of Appeals ruled that the state court action should be allowed to continue, because the parties to the state court action could opt out of the federal class action without prejudicing the federal proceeding. The Kentucky Attorney General had filed a case against Glen W. Turner enterprises alleging violations of Kentucky's consumer protection acts. The District Court had stayed the state action, claiming that it would be prejudicial to any settlement of the Federal action. The Appeals court overturned the District court judge because the Kentucky class members in the federal action were allowed to opt out of the class, and the was no finding that enforcement of a Kentucky judgment would be unduly prejudicial to the federal action.

The full case and summary are also available at: http://www.mlmlegal.com/legal-cases/InreTurnerEnterprisesLitigationAppealofKentuckyAttorneyGeneral.php

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Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates, Securities Updates

Reference Info:Federal, 6th Circuit, Kentucky | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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