03.31.09
Let Me Count the Ways
You want to sue your broker for your portfolio’s poor performance? To me, that’s like suing your bartender for your hangover, unless there’s fraud involved (the bartender putting gin in your beer without you knowing it). Still, the courts recognize a slew of potential causes of action that all presume a measure of poor performance: negligence and breach of fiduciary duties (claims that boil down to suitability: “you sold me a stock that wasn’t suitable to my situation”), lack of disclosure, breach of contract (though, interestingly, no reported Michigan decision sets forth the elements of a breach of contract claim against a broker), misrepresentation, and even churning (fraudulent over-trading to inflate commissions).
If you think your broker spiked your beer, see a professional.
