Come see outstanding lawyers argue a real summary judgment motion in a hotly contested business case! The Circuit Court for Baltimore City, Honorable Judge Albert Matricciani presiding, will sit in session at the University of Maryland School of Law Ceremonial Court Room, Monday, March 27, 2006 beginning at 9:00am. The Court will hear motions for summary judgment in Devetter v. Alex Brown Management Services, Inc (Case No: 24-C-03-007514), a dispute involving the alleged mismanagement of certain securities. Exceptional advocates (many alums!) represent the parties on both sides of the case. This court visit will be of special interest to students in business law and securities courses, students in trial planning and advocacy courses, to students in the LAWR sequence working on pre-trial motions and to students working on the Journal of Business & Technology Law. The attorneys will be available after the hearing for questions and discussion.
This case is part of Maryland's Business and Technology Case Management Program. Maryland is a national leader in the business and technology courts movement, being among the first courts systems in the country to establish a business and technology case track. Lawyers in Maryland can seek to have complex civil cases involving business and/or technology issues designated to the program. These cases are especially assigned to a judge who has received specialized training on business and technology matters. Prior orders and court opinions related to this case may be found at the Court's webpage by clicking here.
The School of Law's new Journal of Business and Technology Law will feature case notes and analysis on cases from business and technology courts around the country.Case Synopsis
In this action, plaintiffs are 17 investors in the Alex Brown Exchange Fund, L.P., a Delaware limited partnership created to provide risk management and other investment services for holders of highly concentrated and illiquid securities portfolios. Each plaintiff contributed securities of a minimal value of $1,000,000 in 1997. Plaintiffs allege mismanagement of the fund and failure to make timely disclosure to investors of liquidity problems, the ability to hedge and an over concentration in technology stocks. In the spring of 2000, plaintiffs allege that the stock market hit its peak and began to drop precipitously. By the time this case was filed in October of 2003, plaintiffs allege that they had lost essentially all the value of their investments in the fund.
Defendants are the fund's general partner, Alex Brown Mgmt. Svcs., Inc.; its placement agent and custodian, Deutsche Bank Securities, Inc.; the members of the fund's management committee; the fund's sub-advisor, DC Investment Partners, LLC; and the managing members of DCIP.
Plaintiffs are seeking compensatory damages of up to 83.5 Million Dollars, punitive damages of up to 334 Million Dollars and disgorgement of all management fees, on claims of fraud, negligent misrepresentation and breaches of fiduciary duty.Procedural Posture
The original complaint was filed on 10/17/03. A motion to dismiss was granted on 05/11/04, with leave to amend. A first amended complaint was filed and a motion to dismiss it was denied on 11/15/04. A second amended complaint was filed on 12/21/05. The Court appointed a Special Discovery Master on 09/01/05 and, upon his recommendation, entered a first Discovery Order on 10/17/05, which is available on the Court's web page. The parties have filed motions in limine and a pre-trial conference will be conducted on 03/14/06. The summary judgment hearing is scheduled for 03/27/06 and trial is currently scheduled to begin on 04/11/06 and continue for 4 to 6 weeks.Briefs
Paul D. Bekman
Salsbury, Clements, Bekman, Marder & Adkins, LLC<
Rosenberg Martin Funk Greenberg, LLP
William C. Carmody
Rachel S. Black
Marc M. Seltzer
Sussman Godfrey, LLP
Edward J. Hutchins, Jr.Counsel for Defendants Alex Brown Management Services, Inc. and Deutsch Bank Securities, Inc.
Stacey A. Moffet
Eccleston & Wolf
Paul A. Alexis
Boult, Cummings, Conners & Berry, PLC
Andrew Jay GrahamCounsel for Defendants Gary Fearnow, Bruns Grayson, Rachard Hale, E. Robert Kent, Jr. and Truman Semans
Geoffrey H. Genth
Catherine M. Manofsky
Kramon & Graham, P.A.
Christopher P. Hall
John M. Vassos
Morgan, Lewis & Bockius, LLP
Steven F. Barley
Mark S. Saudek
Hogan & Hartson, LLP