Rosen Capital Partners LP, Rosen Capital Institutional LP v. Merrill Lynch Professional Clearing Corp.
Published: Sep. 24, 2011 | Result Date: Jun. 30, 2011 | Filing Date: Jan. 1, 1900 |Case number: 09-03094 Arbitration – $63,655,200
Facts
Rosen Capital Partners LP and Rosen Capital Institutional LP (collectively, Rosen) entered into arbitration with Merrill Lynch Professional Clearing Corp., regarding unexpected margin calls and a trading freeze, which caused losses in two hedge funds.
Contentions
CLAIMANT'S CONTENTIONS:
Rosen alleged breach of contract, breach of good faith and fair dealing, as well as breach of reasonable commercial standards of fair dealing, fraud, and negligence.
RESPONDENT'S CONTENTIONS:
Merrill Lynch denied the allegations, asserting various affirmative defenses.
Damages
Rosen sought $77.7 million in damages.
Result
The arbitration panel awarded Rosen $63,665,202 in compensatory damages plus prejudgment interest of 9% accruing from Oct. 7, 2008.
Other Information
ARBITRATORS: Arthur T. Berggren, Holly Banafsheh, Katharine R. Coleman.
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