Sol Kotz and Kolar, Inc. v. Bache Halsey Stuart, Inc.
Opinion
Opinion
Skopil, J.
Defendant Bache Halsey Stuart Shields, Inc. (“Bache”) appeals from a judgment against it for various acts of fraud and misconduct in connection with its management of plaintiff’s investments in the commodities market. Bache argues on appeal that (1) the district court incorrectly instructed the jury as to the correct standard of care owed to the investor; (2) federal statutes preempt Arizona common law remedies, making an award of punitive damages improper; (3) the damage award was not supported by the evidence; and (4) alleged bias on the part of the trial judge requires a new trial. We reject all of Bache’s arguments and affirm.
FACTS
Sol Kotz owned Kolar, Inc., an Arizona business engaged in aircraft scrap and sal vage. In early 1976 Kotz made his first commodities investments through his account with Bache. Upon the insistence of his account executive at Bache, Stanley Katcher, Kotz’ initial investments in copper futures were closed out and silver futures were purchased. Although Kotz explained to Katcher that he had no experience or background in silver futures, Katcher and Paul Singleton of Bache’s New York office urged him to invest heavily in silver.