Patrick McGinn and Frances McGinn Husband and Wife v. Merrill Lynch, Pierce, Fenner & Smith, Inc., and Mark S. Hengesteg

ARNOLD, Circuit Judge.

Patrick and Frances McGinn brought this action against Merrill Lynch, Pierce, Fenner & Smith, Inc., and one of its brokers. The principal theory of recovery asserted was that defendants had “churned” the plaintiffs’ commodities futures account by engaging in excessive trading in order to generate commissions — a violation of Section 4b(A) of the Commodity Exchange Act, 7 U.S.C. § 6b(A). The jury returned a verdict for plaintiffs in the amount of $17,505, representing commissions on transactions found to be “churned.” Following the trial, the Court held that defendant…