The Law of the Financial Markets Monday, May 17, 2021
The Supreme Court ruled [June 5, 2017] that claims for disgorgement brought by the SEC are governed by a five-year statute of limitations. The Court’s unanimous opinion in Kokesh v. SEC, No. 16-529, slip op. at 5 (U.S. June 5, 2017) (Sotomayor, J.), held that disgorgement, as it is applied […]
Benasra vs. Mitchell, Silberberg & Knupp, No. B147537 (Cal. App., 2/13/02) The favored mechanism for dealing with disqualification of counsel in an arbitration proceeding must be for the arbitrators to decide the issue. When Plaintiff looked across the arbitration table and saw former counsel representing the other side, he […]
Courts accept cases dealing with Eligibility and Attorney Fee Awards ELIGIBILITY AND ATTORNEY FEES UNDER REVIEW: The Florida Supreme Court is reviewing its position on the awarding of attorney fees in arbitration and the effect of the six-year eligibility provision on a litigant’s claims. Barron Chase v. Moser was accepted […]
Crotser vs. Smith Barney & Co., Inc., NO 228226 (Mich. App., 4/30/02) Appealability * Scope of Agreement * Arbitration Agreement * Competing Agreements. A futures account agreement does not encompass claims relating to separate consulting services provided by the FCM. Plaintiff entered into an agreement with a predecessor firm (Hutton) […]
Control person liability does not lie unless the controlling person was, in some meaningful sense, a culpable participant in the fraud. General deficiencies in supervision, are insufficient, liability requires culpability regarding specific trades and misrepresentations. Wallace v. Buttar, 02 Civ. 4297(RWS) (S.D.N.Y. 1/8/03). Appealability * Award Challenge * Vacatur of […]
Reed vs. Mutual Service Corp – California – 2003 Reed v. Mutual Service Corp., 2003 Cal. App. LEXIS 395 (Cal. App., 2Dist., 2/21/03). Award Challenge * Confirmation of Award * Exceeding Powers * Arbitrator Bias/Evident Partiality * Timeliness Issues (Eligibility) * Waiver * Arbitrator Authority, Scope of * Res Judicata […]
Preferred Stock Proceeds Used in Calculation of Advisory Fees Not Fraud By John M. Baker, Esq. Federal Judge Debevoise of the District of New Jersey recently granted summary judgment to defendants in a case alleging that including preferred stock proceeds in the calculation of mutual fund advisory fees violates the […]
Arbitration Panel Orders Return of Settlement Payment, and Awards Nothing. WEINBERG v. BEAR STEARNS & CO., INC., NYSE ID #2000-008216 (Los Angeles, 10/18/00): Recently confirmed, this Award presents an unusual outcome in a “two-bites-of-the-apple” scenario. According to the “Case Summary” section of the Award, Israel and Molly Weinberg entered into […]
