Sutton v. Shearson Hayden Stone, Inc.’s Empirical Analysis

Citation profile

1 district ·

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 5 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “Indeed, if I were to impute to plaintiff knowledge of the alleged mishandling of his account at the hands of Pappas, as urged by defendant, these customer complaints may very well reach the threshold of materiality. To be sure, if plaintiff had his own suspicions that his account was being mishandled, these other customer complaints would have served only to bolster these fears and may have proved to be the catalyst necessary to prompt plaintiff to remove his account from Pappas’ control. At any rate, to say that under no circumstances could plaintiff prove this to be a material omission is untenable. Similarly, the question of proximate cause is sufficiently presented to withstand the instant motion. It is apparent that given plaintiff's apparent suspicions with respect to the conduct of Pappas, he could demonstrate that Shearson’s failure to disclose these additional customer complaints proximately caused the damage sustained in his portfolio.”

   1 later decision quote this exact passage · from the majority
   e.g. 687 F. Supp. 938 - Hartman v. Blinder

2. “It is true that full disclosure is at the very heart of § 10(b) and Rule 10b-5 and that they were intended to protect the investor from the harsh common law rule of caveat emptor. And, while it may be too burdensome to impose a duty upon a brokerage firm to disclose each customer complaint registered against one of its representatives, this is hardly the situation at bar. On the contrary, here we are dealing with a brokerage firm which after investigation entered into monetary settlements with its customers for the alleged wrong-doings of one of its brokers and required the broker to execute a promissory note in its favor for the amounts paid in settlement.”

   1 later decision quote this exact passage · from the majority
   e.g. In Re Catanella and EF Hutton and Co.

3. “It has long been recognized that a bargained for promise to forbear from commencing a lawsuit to collect a debt is good and valuable consideration for a reciprocal promise to pay that indebtedness.”

   1 later decision quote this exact passage · from the majority
   e.g. Quinio v. Aala