Non-summary suspension proceeding for non-payment of an Award recently concluded with the suspension of a broker–dealer who is currently challenging the Award before the Ninth Circuit. Baraban Securities, nka Interfirst Capital Corporation, was held liable by a Portland-based Arbitration Panel for $53,400 in compensatory damages in February 2000 (Viersen v. […]
Case Law
Control person liability requires culpable participation.
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 […]
Arbitrators Have Power to Dismiss Claims Before Hearing – Case Briefs
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 […]
Defendants Win Leveraged Advisory Fees Case
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 Agreements and Enforcement
To Compel Arbitration, Must Prove Knowing Acceptance of the Agreement This time, merely proving that the agreement was signed was not enough. Braga v. VMR Capital Markets, No. B144584 (Cal. App., 2Dist., 2/13/02). Arbitration Agreement * Contractual Issues (Mutual Assent) * Waiver * State Law, Applicability of * FAA (Section2). […]
Attempt to Void Settlement
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 […]
