The plaintiff discount broker sought summary judgment to recover the debit balance arising from liquidation of the defendant's naked put and call positions after a margin crisis.
The defendant alleged she remained in equity, received insufficient notice, should have been allowed to post additional margin, and that the broker realized on the positions improvidently, and she counterclaimed for profits she said would have been earned had the positions been held longer.
The court held that the contractual documents authorized liquidation, that a broker was not required to become a co-speculator with its customer, and that the defendant adduced no expert evidence to show any surviving duty of care was breached.
Finding no serious issue to be tried, the court granted judgment to the plaintiff, dismissed the counterclaim, and awarded prejudgment interest and costs.
