Bear Stearns & Co. v. Buehler’s Empirical Analysis

Citation profile

1 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 2 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “Where there is additional involvement by the broker-dealer, a duty may be found. In Software Design [& Appl. v. Hoefer & Arnett, Inc.], the court noted that “sufficiently suspicious” circumstances may place a broker-dealer on notice that her customer is perpetrating fraud on non-customer investors. 49 Cal.App.4th [472,] 483, 56 Cal.Rptr.2d 756 [ (1996) ]. Once aware of troublesome “red flags,” the broker-dealer may have a duty which runs to non-customers to monitor and investigate any unusual account activity. Id.; see also City of Atascadero v. Merrill Lynch, 68 Cal.App.4th 445, 483-84 , 80 Cal.Rptr.2d 329 (1998) (finding trustee-investors, who had no direct contact with Merrill Lynch, could nonetheless state a claim for breach of fiduciary duty if Merrill Lynch actively participated in broker’s fraud).”

   1 later decision quote this exact passage · from the majority
   e.g. 756 F. Supp. 2d 1053 - McGraw v. Wachovia Securities, L.L.C. Ex Rel. A.G. Edwards, Inc.