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Corporations Keyed to Hazen
Evanston Bank v. ContiCommodity Services, Inc.
Citation:
623 F.Supp. 1014 (N.D.Ill. 1985)Facts
Evanston Bank alleged that Conti and Thomas used the bank’s account for unauthorized trading and churned it to generate unnecessary commissions. The bank maintained that it intended only to hedge in commodities as a protection against rising interest rates, but that it got speculative trading instead. In addition, the bank alleged that it was promised that it would be charged commissions at the same rate as other facts. Conti, however, argues that the board of directors fully authorized Richard Christiansen, at that time both the chairman of the bank’s board and the bank’s chief executive officer, to handle commodities trading for the bank. Conti maintains that all of the trades followed Christiansen’s instructions on the bank’s objectives and the overwhelming majority of them were either specifically approved or later ratified by them.
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