Miley v. Oppenheimer & Co., Inc. case brief

Miley v. Oppenheimer & Co., Inc. case brief summary
637 F.2d 318 (1981)

CASE SYNOPSIS

Appellants requested review of the decision of the United States District Court for the Northern District of Texas which found that appellant excessively traded accounts to generate fees in a securities action which involved 15 U.S.C.S. §§ 77q, 78j.

CASE FACTS
Appellee investor brought an action against appellant broker to recover damages that resulted from appellant's excessive trading to generate additional fees, a practice referred to as churning. The lower court ruled in favor of appellee on the basis that appellant breached his fiduciary duty and awarded actual and punitive damages. Appellant argued on appeal that damages were improperly assessed.

DISCUSSION

• The court affirmed and ordered that damages be awarded for excess commissions and excess portfolio decline. 
• The court also held that the method used to compute damages was appropriate in the absence of the parties presenting a more appropriate method and punitive damages in the amount of tripled compensatory damages were appropriate in churning cases.

CONCLUSION
Where appellant breached its fiduciary duty and appellee was awarded damages for excess commission, excess portfolio design, and punitive damages in the amount of triple the compensatory damages in a securities churning case, the court found the damages were appropriate, and therefore affirmed the judgment.



Suggested Study Aids For Securities Regulation Law
Securities Regulation in a Nutshell, 10th (Nutshell Series)
Securities Regulation: Examples & Explanations, 5th Edition
Securities Regulations: The Essentials