Gerald D. Hosier, individually, and as trustee of the Gerald D. Hosier, U/A/D 10/4/99; Brush Creek Capital LLC; Jerry Murdock Jr. v. Citigroup Global Markets Inc.
Published: Jun. 25, 2011 | Result Date: Apr. 18, 2011 | Filing Date: Jan. 1, 1900 |Case number: 09-03297 Arbitration – $54,105,600
Court
FINRA
Attorneys
Claimant
Ryan K. Bakhtiari
(Aidikoff, Uhl & Bakhtiari)
Philip M. Aidikoff
(Aidikoff, Uhl & Bakhtiari)
Respondent
H. Nicholas Berberian
(Neal, Gerber & Eisenberg LLP)
Facts
Gerald Hosier, Brush Creek Capital LLC, and Jerry Murdock entered into arbitration with Citigroup Global Markets Inc. regarding multiple investments in various municipal bond hedge funds.
Contentions
CLAIMANT'S CONTENTIONS:
Hosier, Brush Creek, and Murdock alleged breach of fiduciary duty, breach of contract, constructive fraud, unsuitability, failure to supervise, and respondeat superior.
RESPONDENT'S CONTENTIONS:
Citigroup denied the allegations, asserting various affirmative defenses.
Damages
The Net Out of Pocket (NOP) loss in this case as presented to the panel was $26,893,945 and the market adjusted damages were $34,058,948.
Result
The panel awarded full market adjusted damages plus $17,000,000 in punitives, $3,000,000 in attorney fees, $33,500 in expert witness fees, $13,168 in court reporter costs, and assessed forum fees of $26,100 against respondents.
Other Information
ARBITRATORS: Malcolm T. Cleland, Marc H. Schtul, Patricia M. Vondra.
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