JINRO AMERICA INC. v. SECURE INVESTMENTS, INC. Case Brief

United States Court of Appeals, Ninth Circuit2001
266 F.3d 993 Evidence Contracts International Business Transactions Civil Procedure

Complete case briefs with LSD+

Every LSD.Law brief pairs a full IRAC analysis with opinion summaries at three levels of depth, written by a team of Harvard Law and MIT graduates - a quick synopsis when you are pressed for time, the complete reasoning when you need to go deep.

Adaptive Case Views

Toggle between Flash, Standard, and Expanded. Get what you need, when you need it.

Exam-Ready IRAC Format

We deliver the precise structure professors look for in exam answers.

Complex Cases, Clarified

We break down dense legal reasoning into something digestible, helping you grasp core concepts.

Case Brief Summary & Legal Analysis

3 min read

tl;dr: A Korean company sued over a business deal. The defense claimed the deal was a sham, using an “expert” who testified that Korean businesses are generally corrupt. The court reversed, finding the expert’s testimony was unreliable, ethnically biased, and inadmissible under the Federal Rules of Evidence.

Legal Significance: Establishes that expert testimony based on broad, unsupported ethnic or national-origin stereotypes is inadmissible under FRE 702 for unreliability and FRE 403 for being unfairly prejudicial, as it invites the jury to engage in impermissible guilt-by-association.

Case Facts & Court Holding

Key Facts & Case Background

Jinro America Inc., a Korean-owned corporation, sued several American defendants for breach of a written contract for the international trade of frozen chicken. The defendants contended the contract was a sham, created to conceal the parties’ true agreement: a high-risk investment scheme known as a “roll program” designed to circumvent Korean currency regulations. To support this theory, the defendants presented David Pelham as an expert on Korean business practices. Pelham, a private investigator with no formal training as a cultural or business expert, testified that Korean businesses generally engage in corrupt practices, evade currency laws, and cannot be trusted in oral agreements. He based these sweeping generalizations on his investigative work, newspaper articles, and anecdotal information. Jinro filed motions in limine to exclude Pelham’s testimony, arguing he was unqualified under Federal Rule of Evidence (FRE) 702 and that his testimony was an appeal to xenophobia, making it unfairly prejudicial under FRE 403. The district court admitted the testimony. The jury, in a bifurcated trial, found the chicken contract was a sham, leading the court to grant summary judgment for the defendants. Jinro appealed, challenging the admission of Pelham’s testimony.

Court Holding & Legal Precedent

Issue: Did the district court abuse its discretion by admitting expert testimony that generalized about the business practices and ethics of an entire national group to prove that a litigant from that group acted in conformity with the alleged stereotype?

Yes. The court reversed and remanded, holding that the expert testimony was Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in repr

Read the full analysis

The complete holding, rule, and analysis for this case are available to LSD+ subscribers.

Start 14-Day Free Trial

IRAC Legal Analysis

Premium Feature Unlock

About IRAC analysis

IRAC (Issue, Rule, Analysis, Conclusion) is the structure professors expect in exam answers. Each LSD.Law brief states the issue, the governing rule with citations, the court's application of that rule, and the conclusion - the same reasoning pattern you will use on exams and in practice.

Legal Issue

Did the district court abuse its discretion by admitting expert testimony that generalized about the business practices and ethics of an entire national group to prove that a litigant from that group acted in conformity with the alleged stereotype?

Conclusion

This case provides a strong precedent for excluding expert testimony that relies Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad

Legal Rule

Expert testimony is inadmissible under Federal Rule of Evidence 702 if it Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat n

Legal Analysis

The Ninth Circuit found the district court abused its discretion on two Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor i

Flash-to-Full Case Opinions

Summary unavailable

No flash summary is available for this opinion.