Kearney v. Salomon Smith Barney, Inc., 39 Cal. 4th 95 (2006)
Several California clients of SSB filed a class action lawsuit against the company seeking damages and injunctive relief based upon SSB?s practice of recording telephone conversations without their clients? knowledge. The Court of Appeal dismissed the lawsuit after applying Georgia law. The California Supreme Court however reversed that decision holding that the failure to apply California law impaired California?s interest in protecting the right of privacy that the state affords its resident. The Supreme Court also concluded that the application of Georgia law placed California businesses at an unfair disadvantage in comparison to their out-of-state competitors.

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