Wells

ORDER GRANTING PARTIAL SUMMARY JUDGMENT

This case involves an alleged failure by an employee of defendant to execute a sell order on a specific date. Subsequently the stock in question declined in value causing plaintiffs’ alleged loss. Jurisdiction is predicated on diversity of citizenship and the existence of a federal question.

Defendant has moved for summary judgment of dismissal on the two causes of action based on diversity of citizenship on the grounds that the amount in controversy is less than $10,000. Summary judgment is sought as to the third cause of action, which is predicated upon the “suitability” rule of the National Association of Securities Dealers (N.A.S.D.), Rules of Fair Practice, Article III § 2, on the grounds that said rule cannot be the basis for a private action against a securities dealer under § 27 of the Securities and Exchange Act of 1934 (15 U.S.C. § 78aa).

DIVERSITY JURISDICTION

Defendant contends that diversity jurisdiction does not exist in the present case because plaintiffs’ damages could not have exceeded $10,000, although $14,000 actual damages are alleged in the complaint. The basis for this argument is that even if defendant failed to…