Opinion ID: 735522
Heading Depth: 2
Heading Rank: 1

Heading: Matt Nilson

Text: 19 Matt Nilson invested $284,754 in partnerships. In June 1993, he initiated an arbitration against PSI. Hearings were held in December 1994; the arbitration was then adjourned until January 1995, and later rescheduled for December 1995 at PSI's request. 20 Nilson's office staff received notice of the class action on or around October 23, 1995, one week before the opt out deadline of October 30. When the notice was received, Nilson himself was travelling abroad, and was scheduled to return for the arbitration hearings in early December. His staff, under the mistaken belief that no action need be taken until December 15, 1995, did not contact Nilson or his attorney. No opt out was timely filed. 21 On November 7, 1995, after the opt out deadline, PSI contacted Nilson's lawyer to find out whether Nilson had opted out. Informed that Nilson had not done so, PSI stated its intention to move for a stay of arbitration. On November 8, 1995, Nilson's counsel--who had timely opted other clients out of the class--sent a request for exclusion to the claims administrator. 22 On November 16, 1995, Nilson moved for permission to file an untimely exclusion request, so that he could continue his individual arbitration. The district court denied the motion at a hearing on November 29, 1995, emphasizing that Nilson's attorney had timely opted out on behalf of another client, and that the failure to opt out on Nilson's behalf could therefore be construed as a deliberate choice. 23 We conclude that the district court did not abuse its discretion in denying Nilson's request for a late opt out. Regardless of what Nilson's lawyer may or may not have done on behalf of other clients, Nilson failed to demonstrate that his own neglect was excusable: notice was timely sent to his office, which simply ignored it. Nilson's pending arbitration does not excuse his failure to opt out. The release (provided as a part of the notice) cautioned that anyone who had pending your own claim or action against any person or entity in connection with an investment in any of the Partnerships should check with a lawyer to determine whether that action would be affected. Nilson, or those he entrusted with his affairs while he was out of the country, chose not to do so.