By Mark J. Astarita, Esq. In its most expansive definition, a hedge fund is a private investment fund, usually structured as limited partnership, managed by the general partner who makes the investment decisions and collects a management and incentive fee. The investors in the fund are the limited partners, who […]
Analysis
Investment Advisers Act of 1940
The Investment Adviser Act of 1940 is the statute that provides the regulations for the registration and oversight of individuals and corporations who are not brokers or dealers, but who provide investment advice to the public. Need more information? The Investment Advisers Act of 1940 Rules and Regulations under the […]
Settling the Matter
More brokers and firms are being forced to settle customer claims, particularly where the claim is less than the total arbitration expense. Settling the Matter By Mark J. Astarita, Esq. In June, we addressed how to avoid customer disputes. This month, we jump ahead to how to resolve them, either […]
U-4 Arbitration Agreement Does Not Supercede Eariler, Broader Agreement
Bailey vs. Chase Securities, Inc., et al, 01-Civ-7222 (AGS), 2002 U.S. Dist. LEXIS 7788 (SDNY 5/1/02) Employment Discrimination * ADEA * SRO Rules (NASD Rule 10201) * Consolidation Issues (Bifurcation) * Arbitration Agreement (Form U-4) * Employment Agreement * Competing Agreements * Waiver * Prejudice to Party. The Form U-4 […]
Stay of Non Arbitrable Claims is Discretionary
Stay of Non-Arbitrable Claims is Discretionary Where Arbitrable Claims Exist Baggesen vs. American Skandia Life Assurance Corp. Baggesen v. American Skandia Life Assurance Corp. & Securities America, Inc., 2002 U.S. Dist. LEXIS 23411 (D. Mass, 12/5/02). FAA (§ 3) * Agreement to Arbitrate * Stay of Litigation * Scope of […]
Subpoena Power Not Available for Discovery
Arbitral Supoena Power Does Not Provide for Pre-Hearing Production by Non-Parties Hay Group, Inc. vs. EBS Acquisition Corp., Third Circuit HAY GROUP, INC. v. E.B.S. ACQUISITION CORP., No. 03-1161/1162 (3rd Cir., 3/12/04). In arbitrations subject to the Federal Arbitration Act, arbitral subpoena power does not extend to requiring pre-hearing production […]
Employment exclusion reviewed
Supreme Court and Arbitration – 2002 SUPREME COURT & ARBITRATION: The U.S. Supreme Court heard argument in the Circuit City v. Adams case on Monday, concerning Section 1s contract of employment exclusion. The Ninth Circuit gave a broad reading to the exclusionary provision in the decision below, holding that […]
State Laws Aimed At Arbitration Contracts Preempted
State Laws Aimed At Arbitration Contracts Preempted BRADLEY v.HARRIS RESEARCH, INC., No. 00-16021 (9th Cir., 12/28/01): Chem-Dry is a well-known provider of carpet cleaning services and HRI is a Utah corporation that franchises these outlets. HRI granted a Chem-Dry franchise to the Bradleys in 1983 and, in the Franchise Agreement, […]
Use of “Prior Bad Act” Evidence Causes Reversal of Award
Prior NASD Disciplinary Proceedings Cannot Be Used at Trial Markowski v. Attel Bank Intl., Ltd., No. 3D98-3336 (Fla. Dist. Ct., 3Dist., 6/14/00): On appeal from a bench trial, Defendant Markowski challenges the judgment below. In this matter, Attel Bank sought to enforce and collect on a promissory note executed […]
Mistake of Law is Not Disregard of Law
California Court upholds arbitration award Baraban Securities, Inc. v. Viersen & Watts, Case No. CV 00-02931 (WJR) (C.D. Calif., 4/18/00): Baraban alleges manifest disregard of the law in its petition to vacate the underlying NASD Award (NASD ID #97-02538, Portland, OR, 2/23/00), claiming that the claims were encompassed by a […]