Thank you for sharing!

Your article was successfully shared with the contacts you provided.
2ND CIRCUIT CLARIFIES ARBITRATION POLICIES NEW YORK � The Second Circuit U.S. Court of Appeals has clarified the standard under which a lower court can vacate an award made in arbitration. A three-judge panel said many trial courts in the circuit have wrongly applied language in one of its decisions by delving into the facts presented at arbitration. Second Circuit case law does not allow a district court judge to set aside an award based on “manifest disregard of the facts” by an arbitration panel, the court said in an opinion by Judge Rosemary Pooler. “We recognize only the doctrine of manifest disregard of the law, which doctrine holds that an arbitral panel’s legal conclusions will be confirmed in all but those instances where there is no colorable justification for a conclusion,” the panel said in Wallace v. Buttar, 03-7158. The issue arose when Daljit and Paramjit Buttar prevailed in arbitration on a claim against securities trader Robert Winston and three others connected with Montrose Capital Management. The traders were found jointly and severally liable for $1.1 million in compensatory damages and $604,805 in punitive damages for Winston’s trading in the stocks of Skynet and CNF Technologies. � New York Law Journal CITIGROUP SHAREHOLDER SUIT IS DISMISSED NEW YORK � In the latest round of litigation involving Enron and WorldCom, Southern District Judge Laura Swain has dismissed a class action against Citigroup alleging that the financial giant failed to adhere to its risk management policies. It is welcome news for Citigroup, which paid $2.65 billion earlier this year to settle charges arising from claims that its brokerage arm, Salomon Smith Barney, had recommended WorldCom’s stock although it knew of the company’s financial troubles. In re Citigroup, Inc. Securities Litigation, 02 Civ. 5779, one of several cases over Citigroup’s financial relationship with Enron and WorldCom, was brought by Milberg Weiss Bershad & Schulman on behalf of Citigroup’s investors. Its central allegation rested on Citigroup’s risk management policies disclosed in its public findings. The plaintiffs said Citigroup failed to live up to the policies to an extent constituting fraud. Judge Swain, however, saw nothing more than potential mismanagement in the accusations. An allegation of fraud, she held, required references to specific misconduct. Because plaintiffs failed to deliver ample specifics, she dismissed the action. � New York Law Journal

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.