A National Law Journal article said that was a key finding in a recent decision by the 9 th U.S. Circuit Court of Appeals which ruled executives have to show they have a personal connection either to the material seized in the search or to the area in which the material was located to challenge the search .
The 9 th Circuit judges said in order to prevail in a seizure challenge, executives must first show:
- the item seized was personal property otherwise kept in personal space;
- the defendant had custody or immediate control of the seized item; and
- the defendant took precautions to secure the place being searched.
The appellate court noted small family-run
companies would have a different standard because daily
control by executives is broader there than in a
The ruling came in a case involving a Nevada company involving executives accused by authorities of committing Medicare fraud.
The decision in U.S. v SDI Future Health Inc . No. 07-10261 (9th Cir.) is available here .