Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

In Re: Griffin Trading Company,

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
ARGUED SEPTEMBER 16, 2011

Before EASTERBROOK, Chief Judge, and WOOD and TINDER, Circuit Judges.

Griffin Trading Company, a futures commission merchant, went bankrupt in 1998 after one of its customers, John Ho Park, sustained trading losses of several million dollars and neither Park nor Griffin Trading had enough capital to cover these obligations. This case turns on whether Farrel Griffin and Roger Griffin (whose first names we use for clarity), the partners in control of Griffin Trading, breached their fiduciary duties when they allowed segregated customer funds to be used to help cover Park’s (and thus Griffin Trading’s) losses. In deciding this question, the district and bankruptcy courts applied Illinois’s version of the Uniform Commercial Code (U.C.C.) to a series of transactions that was initiated by the margin call that spelled Griffin Trading’s downfall. They erred in doing so. We can find no reason why the transactions at is- sue–which involved banks in England, Canada, France, and Germany, but notably not Illinois–would be governed by Illinois law. This error, however, does not stand in the way of our resolution of the appeal. We find that the bankruptcy court’s first decision in this case appropriately relied on Farrel’s and Roger’s own admissions that they failed in their obligation to protect customer funds. This admission was enough to hold them liable for the entire value of the wire trans- fer. Accordingly, we reverse the district court’s most recent decision in this case and remand for further pro- ceedings.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
ThinkAdvisor LUMINARIES Awards 2024
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More
Complex Claims & Litigation Forum 2025
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More
Legalweek Leaders in Tech Law Awards 2025
March 24, 2025
New York, NY

Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives.


Learn More
Go to Events Go to Webcasts
BUSINESS LITIGATION ATTORNEY -- HARTFORD, CT

McCarter & English, LLP is actively seeking a litigation associate for its office located in Hartford, CT. One to three years of experie...


Apply Now ›
Associate Litigator

Borteck & Czapek, P.C., based in Florham Park, is a boutique estates and trusts law firm specializing in estate planning and administrat...


Apply Now ›
Gwinnett County: State Court Staff Attorney

Gwinnett County State Court is seeking an attorney to assist the Judge by conducting a variety of legal research, analysis, and document pre...


Apply Now ›
Go to Lawjobs