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KOTZ v. BACHE HALSEY STUART, INC.

No. 79-3442.

685 F.2d 1204 (1982)

Sol KOTZ and Kolar, Inc., Plaintiffs-Appellees, v. BACHE HALSEY STUART, INC., Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Submission Vacated March 19, 1981.

Resubmitted June 1, 1982.

Decided September 3, 1982.

Attorney(s) appearing for the Case

Marvin Schwartz, Sullivan & Cromwell, New York City, for defendant-appellant; Arthur P. Greenfield, Craig, Greenfield & Irwin, Phoenix, Ariz., on brief.

David Palmer, Holland & Hart, Denver, Colo. (argued), for plaintiffs-appellees; David S. Shughart, II, Phoenix, Ariz., on brief.

Mark Young, Washington, D.C., amicus curiae.

Before SKOPIL and POOLE, Circuit Judges, and HALBERT, District Judge.

SKOPIL, Circuit Judge:

Defendant Bache Halsey Stuart Shields, Inc. ("Bache") appeals from a judgment against it for various acts of fraud and misconduct in connection with its management of plaintiff's investments in the commodities market. Bache argues on appeal that (1) the district court incorrectly instructed the jury as to the correct standard of care owed to the investor; (2) federal statutes preempt Arizona common law remedies, making an award of punitive damages...

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