JUDGMENT OF THE SUPREME COURT NEW YORK COUNTY APPELLATE DIVISION RENDERED IN 2003 IN CASE 754 N.Y.S. 2d 264
Subject-Matter: Punitive damages in arbitral award.
Finding: USD 25 million was grossly excessive punitive damages and constituted manifest disregard of law, but not public policy.
Parties: Claimants: 1. Stephen B. Sawtelle (USA) 2. Hackett Associates, Inc. (USA) Respondents: 1. Waddell & Reed, Inc. (USA) 2. Torchmark Corporation (USA)
Place of Court Proceedings: New York, USA
Arbitration Proceedings: Arbitration proceedings before the National Association of Securities Dealers, USA
Applicable Law: The U.S. Federal Arbitration Act
Summary Terminated mutual fund broker (Stephen B Sawtelle) and his current employer (Hackett & Associates) filed claim with the National Association of Securities Dealers (NASD) against broker’s former employer (Waddell & Reed, Inc.) and certain of its representatives, alleging tortuous interference with business expectancy and a violation of the Connecticut Unfair Trade Practices Act (CUTPA).
Following arbitration award of approximately $27 million in favour of plaintiffs, plaintiffs commenced proceeding to confirm award. The Supreme Court, New York County, Michael Stallman, J., reduced award and confirmed it as modified, and denied defendants’ motion to vacate award of punitive damages.
Table of Contents:
1. Stephen B. Sawtelle, 2. Hackett Associates, Inc. v. 1. Waddell & Reed, Inc., 2. Torchmark Corporation, Judgment of the Supreme Court New York County Appellate Division rendered in 2003 in case 754 N.Y.S. 2D 264
SUBJECT-MATTER: Punitive damages in arbitral award.