Fed. Sec. L. Rep. P 97,508 Samuel Mihara v. Dean Witter & Co., Inc. And George Gracis

On April 26, 1974, Samuel Mihara filed this action in United States District Court for the Central District of California. He alleged both federal statutory and Califor nia common law fiduciary duty claims arising from the handling of Mihara’s securities accounts by defendants. Specifically, plaintiff alleges that the defendants, Dean Witter & Company and its account executive, George Gracis, engaged in excessive trading or “churning” in plaintiff's securities account, and purchased “unsuitable” securities which did not conform to Mihara’s stated investment objectives. Plaintiff sought relief under Section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) and Rule 10b-5 promulgated thereunder, as well as for breach of fiduciary duties. Plaintiff sought both compensatory and punitive damages, and demanded a jury trial.

On February 2,1978, after a jury trial, a verdict was entered for Mihara and against the defendants on both the Rule 10b-5 claim and the State breach of fiduciary duty claim. Compensatory damages in the amount of $24,600 were awarded to Mihara, a punitive damages award of $66,666 was assessed against Dean Witter & Company, and a $2,000 punitive…