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REDINGTON v. TOUCHE ROSS & CO.

Nos. 428, 494, Dockets 77-7183, 77-7186.

612 F.2d 68 (1979)

Edward S. REDINGTON, as Trustee for the liquidation of the business of Weis Securities, Inc., and Securities Investor Protection Corporation, Plaintiffs-Appellants, v. TOUCHE ROSS & CO., Defendant-Appellee.

United States Court of Appeals, Second Circuit.

Decided December 11, 1979.

Attorney(s) appearing for the Case

Hughes, Hubbard & Reed, New York City (James B. Kobak, Jr., John W. Schwartz and Melinda J. Roberts, New York City, of counsel), for plaintiff-appellant Edward S. Redington, as Trustee for the liquidation of the business of Weis Securities, Inc.

Rosenman, Colin, Freund, Lewis & Cohen, New York City (Arnold I. Roth, Arthur S. Linker, and Alan L. Doochin, New York City, of counsel), for defendant-appellee Touche Ross & Co.

Before LUMBARD, MULLIGAN and TIMBERS, Circuit Judges.

LUMBARD, Circuit Judge:

This case presents us with the task of reconciling the jurisdictional provisions of the Securities Investor Protection Act ("SIPA") of 1970, 15 U.S.C. § 78aaa et seq.,1 and the Bankruptcy Act, as amended, in the context of an attempt by the Trustee of a brokerage house in SIPA liquidation to maintain in federal court a suit for negligence, malpractice, breach of warranty and breach of contract against...

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