Quimbee logo
DMCA.com Protection Status

Blau v. Rayette-Faberge, Inc.

389 F.2d 469 (1968)

Case BriefRelatedOptions
From our private database of 35,600+ case briefs...

Blau v. Rayette-Faberge, Inc.

United States Court of Appeals for the Second Circuit

389 F.2d 469 (1968)

Facts

In June 1966, Isadore Blau (plaintiff), a stockholder of Rayette-Faberge, Inc. (Rayette) (defendant) hired attorney Morris Levy (plaintiff) to investigate whether insiders of Rayette had realized trading profits in Rayette securities that were recoverable by Rayette under § 16(b) of the Securities Exchange Act of 1934. Blau agreed to pay Levy a fee for any benefit realized by Rayette from Levy’s efforts. Levy discovered that Walter Niemec, an officer and director of Rayette, had several purchases and sales of Rayette stock within six-month periods, which generally would entitle Rayette to recover from Niemec any profits from those transactions. Section 16(b)’s two-year statute of limitations had already expired for one set of Niemec’s transactions, and approximately three-quarters of the limitations period had run on another set of Niemec’s transactions. On July 28, 1966, Levy sent a letter to Rayette informing Rayette of Levy’s discovery of Niemec’s trading profits and requesting that Rayette sue Niemec to recover those profits. The letter said that Blau would sue Niemec on Rayette’s behalf after 60 days, the mandatory waiting period under § 16(b), if by that point Rayette had not recovered Niemec’s profits or filed suit against Niemec. On August 4, 1996, Rayette told Levy that Rayette was investigating the matter. On September 22, 1966, Levy drafted a complaint for Blau in anticipation of filing suit once the 60-day waiting period expired. The next day, Rayette’s counsel informed Levy that Niemec agreed to pay Rayette the profits alleged in Levy’s July 28 letter, which Niemec paid on September 26, 1966. After Rayette refused Blau’s demand that Rayette pay Levy’s fees, Blau and Levy sued Rayette. The district court granted Rayette’s motion for summary judgment, and Blau and Levy appealed to the United States Court of Appeals for the Second Circuit.

Rule of Law

Issue

Holding and Reasoning (Feinberg, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 618,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 618,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 618,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 35,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership