Court Opinion

ID: 9465140
Source: CourtListenerOpinion
Date Created: 2023-08-05 00:37:03.429621+00
Date Added: 2024-06-11T17:38:59.830496
License: Public Domain

GEE, Circuit Judge,
specially concurring and dissenting in part:
I find myself unable to concur in the judgment or opinion insofar as the injunction against Blatt rests on a determination that he violated Rule 10b-5 by failing to disclose to Exquisite his or Udell’s beneficial interest in the Naitove Trust. Nor can I agree that Udell committed any violation of the rule, though the injunction against him is reversed on other grounds.
There is no such thing as a floating legal duty: such obligations must be attached at each end. Blatt and Udell each owed a duty not to mislead those who sold to or bought from him. Only Exquisite did this. Exquisite had a like duty to the other minority shareholders who bought from it. I am unable, however, to translate these discrete obligations into a duty running from Blatt or Udell to the other shareholders. Hence to this extent only, I respectfully dissent from the able opinion of the court.