American Business Financial Services, Inc. (ABFI), a Pennsylvania firm, sells and services loans to businesses and consumers. First Union National Bank, with its principal place of business in North Carolina, provides banking services. Alan Boyer, an employee of First Union, lives in North Carolina and has never been to Pennsylvania. In the course of his employment, Boyer learned that the bank was going to extend a $150 million line of credit to ABFI. Boyer then attempted to manipulate the stock price of ABFI for personal gain by sending disparaging e-mails to ABFIs independent accounting auditors in Pennsylvania. Boyer also posted negative statements about ABFI and its management on a stock bulletin boards and fed false information to the news media. ABFI filed a suit in a Pennsylvania state court against Boyer, First Union, and others, alleging wrongful interference with a contractual relationship, illegal stock manipulation and insider trading under federal law, among other state causes of action. Boyer filed a motion to dismiss the complaint for lack of personal jurisdiction, subject matter jurisdiction and standing to sue.
Please give your opinion on the questions below:
1 Could the state court exercise personal jurisdiction over Boyer?
2 Could the state court exercise subject matter jurisdiction over Boyer?
3 Does ABFI have standing to sue Boyer?
