Court Opinion

ID: 9537555
Source: CourtListenerOpinion
Date Created: 2023-08-07 07:19:49.899281+00
Date Added: 2024-06-11T14:56:46.492276
License: Public Domain

*22OAKS, Justice
(dissenting in part):
I concur in the opinion and judgment of the Court, except the last three paragraphs.
I dissent from the holding that the client contracts are investment contracts. In substance, the client contracts concerned a money management service PAC performed for the businesses who contracted with them. The interest PAC paid on the funds used in the performance of its services was incidental to the main purpose of the contracts, just like the interest paid on client balances in stock brokers’ accounts. Contracts covering what are predominantly service relationships should not be “investment” contracts for purposes of the Securities Act.