U.S. District Court, Western District of New York Case Summaries:

Daily Record (Rochester, NY), Apr 18, 2008

U.S. District Court, Western District of New York

Punitive Damages

Fiduciary Duty

Balta v. The Ayco Co.

04-CV-6164 CJS

Judge Siragusa

Background: This decision concerns a motion for summary judgment by the defendants. The plaintiffs in this diversity action are suing their former financial advisors for money damages sustained following a series of losses in the stock market. The plaintiffs, a mother and her two sons, owned several million dollars' worth of assets invested under the auspices of the defendant, who provided them with investment advisory services. One of the sons was a friend of defendant's staff attorney, who provided investment advice. The plaintiffs asserted claims for breach of contract, breach of fiduciary duty, aiding and abetting a breach of fiduciary duty and constructive fraud.

Ruling: The defendant's motion for summary judgment is granted solely as to the plaintiff's claim for punitive damages with the remaining claims to be considered at a later date.

K. Wade Eaton of Chamberlain D'Amanda for the plaintiff, and Amy Levine Fici of Ward, Norris, Heller & Reidy LLP for the defendant.