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CONFIDENTIAL

Dec. 14, 1996

Securities
Broker Negligence
Limited Partnership Interests

Confidential

Settlement –  $0

Judge

William Fieldman

Lous R. Eglash

Robert Schouweiler

Court

L.A. Superior


Attorneys

Plaintiff

Timothy D. McGonigle
(Law Offices of Timothy D. McGonigle APC)


Defendant

Ronald S. Kravitz
(Miller Shah LLP)

Jeffrey K. Compton
(Markun, Zusman, Freniere & Compton LLP)


Experts

Plaintiff

Mason Dinehart
(technical)

Defendant

John D. Maine
(technical)

Alfred Monahan
(technical)

Facts

From December 1987 through April 1991, the claimants, five related adults and their profit sharing plan, collectively invested $640,000 in various real estate limited partnership from December 1987 through April 1991. The claimant's investments were purchased through the respondent broker-dealer. The partnerships ceased paying distributions in June 1991 and ultimately lost their entire value. The claimants brought this action against the respondent based on fraud, misrepresentation, negligence, breach of fiduciary duty, and violation of federal securities laws.

Settlement Discussions

The claimants made a settlement demand for $410,000. The respondent made no settlement offer.

Damages

The claimants initially requested damages in the amount of $800,000 reduced to $639,111 at the time of hearing, together with interest from the date of loss, punitive damages, costs and attorney's fees.

Other Information

The award was reandered approximately six months after the case was filed. The five-day arbitration was held in October 1996 before Lous R. Eglash, chairman, Robert Schouweiler and William Fieldman of the NASD resulting in the reported award.


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