- 5 - should serve as a clear and unambiguous message to Golub that the courts are not to be used as vehicles for harassment. The Kidder Peabody Litigation By 1981, approximately the time he instituted the litigation discussed above, petitioner had opened a brokerage account with Kidder, Peabody & Co., Inc. (Kidder Peabody). He also entered into an agreement with Kidder Peabody enabling him to deal in “put” and “call” options. Kidder Peabody agreed to extend credit to petitioner, enabling him to trade on margin. Pursuant to a “Customer’s Agreement”, petitioner agreed that Kidder Peabody could hold the assets in his account as security for all liabilities that petitioner owed to Kidder Peabody. Under the agreement, Kidder Peabody had “the right at any time without notice to apply any cash or credits” in petitioner’s account “to payment of any * * * debit balances or other obligations” of petitioner. In 1986 or 1987, petitioner began to complain that Kidder Peabody had engaged in unauthorized trades in his account. On March 20, 1987, George C. Cabell, vice president and associate general counsel of Kidder Peabody, wrote to petitioner and explained: What has occurred is that you have failed to respond to margin maintenance calls made in connection with positions in your account with the result that positions in the account had to be liquidated to satisfy the maintenance calls. * * *Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011