Opinion ID: 769834
Heading Depth: 3
Heading Rank: 2

Heading: Robert Baffa

Text: 17 In addition to finding that the imposition of Rule 11 sanctions rendered Baffa an atypical plaintiff and inadequate class representative, the district court denied certification because Baffa was no longer a member of the class and lacked standing to pursue the claim. Appellants argue that Baffa has standing to pursue this case because he has the power to continue to prosecute the action on behalf of his son, notwithstanding the fact that the account is now in Brett's name. Appellants analogize this situation to a trust, where the trustee has power to continue litigation of a claim begun while the trust was still within his control. Appellants argue that Baffa, as custodian of the account, possessed legal title to the securities and was responsible for winding up the affairs of the UGMA account, even after Brett reached the age of majority. Appellees respond that even if this argument were properly preserved below, it nevertheless fails, because in a UGMA account, unlike a trust, the minor obtains indefeasibly vested legal title to the securities by statute. Moreover, appellees argue that even if Baffa had authority to commence the lawsuit, he should have done so in his capacity as custodian on behalf of the account. Instead, Baffa brought the action on behalf of himself and all others similarly situated. In any event, appellees maintain that Baffa lacks standing to pursue legal claims related to the securities since Brett has already reached age 18. 18 We conclude that the district court properly found Baffa lacked standing because he was not a member of the class. We reject appellant's contention that Baffa could continue the action as part of his winding up responsibilities. Under New York law, [t]he structure of the UGMA is superficially analogous to a trust, with the custodian in the role of trustee. However, the minor obtains indefeasibly vested legal title to the property which is gifted in the manner prescribed by statute. . . . [T]he donor retains no rights, legal or equitable, to the conveyed property. Gordon v. Gordon, 70 A.D.2d 86, 90 (2d Dep't 1979), aff'd, 52 N.Y.2d 773 (1980). Furthermore, New York Estates Powers and Trusts Law § 7-4.4(d) provides that [t]o the extent that the custodial property is not [otherwise] expended, the custodian shall deliver or pay it over to the minor on his attaining the age of eighteen years . . . N.Y. Est. Powers & Trusts Law § 7-4.4(d) (repealed 1997). 3 Therefore, upon attaining eighteen years of age, Brett received indefeasibly vested title to the property, and his father retained no interest in the account. We find no basis in New York law for concluding that the custodian retains any power to continue administration of the account beyond the time the owner reaches the age of majority. Accordingly, we affirm the district court's denial of Baffa's motion for certification because he is not a member of the class.