UTICA, N.Y. – In a peculiar bankruptcy matter where the creditors wanted to get out of the case, a Northern District judge has held that they must remain in order to preserve potential subrogation claims of third parties.
In re: James P. Hammond, 00-65516, stems from a dispute between a stockbroker and his clients and a flurry of claims and counterclaims. It involves James P. Hammond, a stockbroker for more than 27 years who had stints with Paine Weber Inc., Prudential Securities Inc. and First Albany Corp. It also involves several of Mr. Hammond’s clients, who alleged that while at Paine Weber and Prudential, the broker engaged in various acts of fraud and negligence with regard to their investments. And it also involves Mr. Hammond’s counterclaim alleging defamation.
