Reliance Not Required
In an interesting decision, the Tennessee Supreme Court has held that reliance is not an element of a private cause of action under the Tennessee Securities Act. The case is a great read if you're into that sort of thing. And, really, when you have Justice Koch tracing the evolution of the securities laws from 1285 and the reign of Edward I through the Tennessee General Assembly's adoption of the Act, what would you rather do on a Friday afternoon than read Green v. Green?
The Court rejected the parties' attempts to rely on the federal securities laws for their arguments as to why reliance was or was not an element. Rather, the Court applied the familiar rules of statutory interpretation to reach the conclusion that reliance is not an element.
An interesting and important decision for all of us that litigate business cases.
Happy reading!
