Securities Law News Update, From the Securities Law Home Page

   

]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives Manifest Disregard Requires Conscious Ignorance of the Law

Ninth Circuit Reiterates Principle

Spicuzza v. Securities Services Network, Inc., 2002 U.S. App. LEXIS 4155 (9th Cir., 3/11/02).

Manifest Disregard * Award Challenge * Confirmation of Award.

Reiterating familiar principles regarding the manifest disregard doctrine, the Ninth Circuit holds that a party seeking to vacate an arbitration Award failed to establish that the arbitrators understood the governing legal principles and consciously ignored them.

In this unpublished Opinion, the Ninth Circuit affirms the district court’s denial of Gail Spicuzza’s motion to vacate an arbitration Award in favor of Securities Services Network, Inc. (NASD ID #99-02351, Seattle, 6/12/00). Spicuzza contended that the arbitration Award was in manifest disregard of the explicit statutory language of the Hawaii Blue Sky Law, which she claimed requires a finding that SSN’s rescissionary offer was insufficient. The Ninth Circuit reiterates the well-established principles that an Award will not be set aside unless it manifests a complete disregard of the law and that it is insufficient to demonstrate that the arbitrators may have failed to understand the law. Instead, Spicuzza was required to demonstrate that the governing principle was well-defined, explicit and clearly applicable, and that the arbitrators recognized the applicable law and ignored it. She failed to do so and lost. (L. Hest) (SLC Ref. No. 02-13-01)


Copyright 2000-2002 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to help@sacarbitration.com. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com


Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article. 


Return to The Securities Law Home Page 

Visit Beam & Astarita, LLC, securities arbitration, regulation and litigation attorneys

]]> ]]>