Lutz v. Chitwood (In Re Donahue Securities, Inc.)

MEMORANDUM DECISION GRANTING DEFENDANTS’ MOTION TO DISMISS CLAIMS FOR NEGLIGENCE, BREACH OF FIDUCIARY DUTY AND NEGLIGENT SUPERVISION ASSERTED BY SIPC

JEFFERY P. HOPKINS, Bankruptcy Judge.

This adversary proceeding arises under the Securities Investor Protection Act of 1970 (“SIPA”) following the consolidated liquidation of Donahue Securities, Inc. (“DSI”) and S.G. Donahue & Company, Inc. (“SGD”). See 15 U.S.C. § 78aaa, et seq. Plaintiff, the SIPA trustee, Douglas L. Lutz, on behalf of the Securities Investor Protection Corporation (“SIPC”), as subrogee of customer claims it has paid, and in his…