The Investors’ Control of Their Investment Advisers. Who Has the Final Word?

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel discusses an emerging issue affecting financial advisers—when a client may exercise control over the actions of the adviser. Frankel relates the story of an investment adviser that did not follow the client’s orders to cease certain investments, at a cost of almost $5 million to the client. As Frankel explains, the Securities and Exchange Commission (SEC) got involved, resulting in the investment adviser’s settlement for a significant payment to the client and other conditions.

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Lateef v. City of Madera

Docket: F076227(Fifth Appellate District)

Opinion Date: February 14, 2020

Judge: Snauffer

Areas of Law: Government & Administrative Law, Zoning, Planning & Land Use

Junaid Lateef appealed a judgment entered in favor of the City of Madera (city) and the Madera City Council (city council) (collectively, respondents), which denied his petition for administrative mandamus and requests for declaratory and injunctive relief. At issue was the meaning of Madera Municipal Code section 10-3.1310(E), which set forth the minimum number of council votes required to overturn the Madera Planning Commission’s (commission) denial of an application for a conditional use permit: “A five-sevenths vote of the whole of the Council shall be required to grant, in whole or in part, any appealed application denied by the Commission.” Lateef appealed the denial of his application to the seven-member city council, which voted four-to-one to grant his appeal; however, one councilmember recused himself and another council seat was vacant. The city council denied Lateef’s appeal, ruling that he needed five votes (five-sevenths times the total membership of the council) to prevail. Arguing to the Court of Appeal, Lateef contended the city council was required to grant his appeal because the ordinance requires a five-sevenths vote of those councilmembers present and voting, and he received five-sevenths of the five votes that were cast, namely four votes. He also contended he was denied a fair trial because the recused councilmember and vacant seat were included as councilmembers when determining the number of votes needed to grant his appeal. Finding no merit to Lateef’s contentions, the Court of Appeal affirmed.