Civil Procedure

Ross v. Bernhard — Study Notes

396 U.S. 531 (1970) (Supreme Court of the United States)

Study notes for Ross v. Bernhard: professor notes, cold call prep, exam angles, and memory aids.

Shareholders are entitled to a jury trial in derivative actions when the underlying claim is legal, despite the equitable nature of the derivative suit.
Professor Notes

In Ross v. Bernhard, the Supreme Court evaluated whether parties in a shareholder derivative action are entitled to a jury trial under the Seventh Amendment. The case is pivotal as it clarifies the interplay between legal and equitable claims in the context of derivative suits, emphasizing that while the derivative action itself is equitable, the underlying claims it represents may be legal, thus entitling plaintiffs to a jury trial. Professors often highlight the implications of this ruling for both procedural rights in derivative suits and broader questions of access to jury trials in civil litigation.

Cold Call Prep
  1. 1What is the significance of the Seventh Amendment in this case?
  2. 2Explain the distinction between legal and equitable claims as it pertains to derivative actions.
  3. 3How did the Court justify the entitlement to a jury trial?
  4. 4What are the implications of this ruling for future derivative actions?
  5. 5Discuss how this case interacts with the traditional roles of judges and juries in civil litigation.
Mnemonic Device

RAs for jury trial: Ross Allows for jury trials in derivative suits.

Distinguish From
CaseDistinction
Granfinanciera, S.A. v. NordbergGranfinanciera held that a right to jury trial existed in cases of bankruptcy, emphasizing the different contexts in which actions arise.
Tull v. United StatesTull addressed the right to jury trials in environmental injunction cases, further delineating the line between legal and equitable actions.
Donnelly v. DeckerDonnelly was concerned with equity but did not involve the derivative context, thus showing the unique procedural complexities involved here.
Policy Arguments

For the Rule

Allowing jury trials in derivative actions aligns with the principles of access to justice and the right to a fair trial, ensuring that shareholders can bring claims effectively.

Against the Rule

Opponents argue that this could undermine the efficiency and expedience of court proceedings by introducing jury trials into complex corporate disputes traditionally overseen by judges.

Class Discussion Points
  • Discuss the implications of jury trials in the context of corporate governance and shareholder rights.
  • How does this case affect the strategy of shareholders in derivative litigation?
  • Explore how this case reflects broader trends in civil procedure regarding access to the courts.
Exam Angle

In exams, the case may be presented in the context of questions about the right to a jury trial, the nature of derivative actions, and the distinction between legal and equitable remedies.

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