The Investors’ Control of Their Investment Advisers. Who Has the Final Word?

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel discusses an emerging issue affecting financial advisers—when a client may exercise control over the actions of the adviser. Frankel relates the story of an investment adviser that did not follow the client’s orders to cease certain investments, at a cost of almost $5 million to the client. As Frankel explains, the Securities and Exchange Commission (SEC) got involved, resulting in the investment adviser’s settlement for a significant payment to the client and other conditions.

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State v. Counihan

Docket: 2017AP002265-CR

Opinion Date: February 13, 2020

Judge: Ann Walsh Bradley

Areas of Law: Civil Rights, Criminal Law

The Supreme Court modified the decision of the court of appeals affirming Appellant's judgment of conviction and the denial of her motion for postconviction relief and affirmed as modified, holding that Appellant appropriately raised her challenge to the circuit court's use of previously unknown information during sentencing and that there was no due process violation in this case. On appeal, Appellant claimed, among other things, that the circuit court denied her due process at sentencing by failing to provide her with notice that it would consider previously unknown information first raised by the court at sentencing. The State responded that Appellant forfeited her direct challenge to the previously unknown information considered at sentencing because she failed to object at the sentencing hearing. The court of appeals affirmed. The Supreme Court affirmed as modified, holding (1) where previously unknown information is raised by the circuit court at a sentencing hearing a defendant does not forfeit a direct challenge to the use of the information by failing to object at the hearing; and (2) Appellant's due process rights were not violated by the circuit court's use of the previously unknown information.

Choinsky v. Germantown School District Board of Education

Docket: 2018AP000116

Opinion Date: February 13, 2020

Judge: Ann Walsh Bradley

Areas of Law: Insurance Law

In this insurance coverage duty-to-defend dispute the Supreme Court affirmed the decision of the court of appeals affirming the circuit court's judgment denying the motion for attorney fees filed by the Germantown School District Board of Education and Germantown School District (collectively, the School District), holding that the School District's insurers (Insurer) did not breach the duty to defend the School District in a lawsuit brought by retired employees. In seeking attorney fees, the School Board argued that its Insurer should pay all of the attorney fees incurred by the School District in the underlying lawsuit as a remedy for its breach of the duty to defend the School District. The Supreme Court held (1) the Insurer's initial denial of the School District's tendered claim did not breach its duty to defend when the Insurer followed a judicially preferred method for determining coverage; (2) a delay in payment of liability attorney fees alone does not mean an insurer breached its duty to defend; and (3) the four-corners rule applies in determining whether a duty to defend exists but does not preclude a court's consideration of certain factors in assessing whether an insurer breached its duty to defend.