Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Eastern Trading Co. v. Refco, Inc.

Trial judge did not err by instructing the jury on the defense of ratification in a foreign partnership's suit alleging fraud against a brokerage firm where there was evidence the partnership was aware of the managing partner's "speculative propensities" and history of financial mismanagement, yet left him solely in charge of the firm's commodities trading and did nothing to monitor his trading activities.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

Posner, Circuit Judge. Eastern Trading Company, a partnership located in Dubai that trades gold and silver bullion in large quantities, brought this suit against two commonly owned corporations – Refco, Inc., a Chicago commodities broker, and Refco Capital Corporation – charging fraud and related misconduct in violation of the Commodity Exchange Act, 7 U.S.C. sec.sec. 1a et seq., and the common law of Illinois. The defendants counterclaimed for breach of contract. The jury brought in a verdict for the defendants on the main claim and a judgment for Refco, Inc. of $14 million on the counterclaim, the judge having dismissed Refco Capital Corporation as a counterclaimant before the trial. Eastern appeals. Refco (as we’ll refer to Refco, Inc., the broker, except when discussing its affiliate) cross-appeals, seeking an award of attorneys’ fees, as provided for in its commodity trading contract with Eastern, the basis for the successful counterclaim. The issues that we need to resolve are primarily ones of general law rather than of anything peculiar to the Commodity Exchange Act or Illinois law. In view of the jury verdict, Refco gets the benefit of the doubt on disputable facts.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
Complex Claims & Litigation Forum 2025
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More
Legalweek Leaders in Tech Law Awards 2025
March 24, 2025
New York, NY

Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives.


Learn More
Legalweek New York 2025
March 24, 2025 - March 27, 2025
New York, NY

Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms.


Learn More
Go to Events Go to Webcasts
Commercial Real Estate/Transactional Attorney (Experienced)

Boutique Law Firm in Englewood Cliffs, NJ is seeking an Experienced Commercial Real Estate/Transactional Attorney for a full-time position. ...


Apply Now ›
Litigation Attorney (Experienced)

Boutique Law Firm in Englewood Cliffs, New Jersey is seeking a Litigation Associate NJ Bar admission required. NY admission a plus but is no...


Apply Now ›
Attorney

AttorneyJob Code: LEP023Pay Grade: NFLSA Status: ExemptLegal UnitJob Description:This position reports directly to the Chief Legal Officer, ...


Apply Now ›
Go to Lawjobs