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SAWTELLE v. WADDELL & REED

304 A.D.2d 103 (2003)

754 N.Y.S.2d 264

STEPHEN B. SAWTELLE, Appellant-Respondent, et al., Petitioner, v. WADDELL & REED, INC., et al., Respondents-Appellants, et al., Respondent.

Appellate Division of the Supreme Court of the State of New York, First Department.

February 11, 2003.

Attorney(s) appearing for the Case

Jeffrey L. Liddle of counsel (Michael E. Grenert on the brief; Liddle & Robinson, L.L.P., attorneys), for appellant-respondent.

Seth M. Schwartz of counsel (Susan L. Saltzstein, Timothy G. Nelson and Theodore Sonde on the brief; Skadden, Arps, Slate, Meagher & Flom LLP and Crowell & Moring LLP, attorneys), for respondents-appellants.

NARDELLI, J.P., ANDRIAS, BUCKLEY and FRIEDMAN, JJ., concur.

OPINION OF THE COURT

SULLIVAN, J.

At issue on these cross appeals from the confirmation of an arbitration award of approximately $27 million in favor of a mutual fund broker is the rationality and legality of the award of $25 million in punitive damages. The award was based on a finding that the broker's employer and certain of its representatives, in an attempt to compete with the broker after his termination, had interfered with his prospective business...

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