LAW 110 Chapter Notes - Chapter Gargallo-v-merrill-lynch: Res Judicata, Counterclaim, Subject-Matter Jurisdiction
Document Summary
A brokerage firm sued a client for failure to pay debts relating to a margin account. After the client filed a counterclaim against the brokerage firm, the presiding court dismissed the counterclaim with prejudice due to the client"s failure to comply with court"s discovery orders. Miguel gargallo (defendant), opened a margin brokerage account with the plaintiff, merrill, lynch (plaintiff), in: defendant maintained the account until 1980 when he incurred losses resulting in a debt owed to plaintiff for ,000. When the obligation was not paid, plaintiff filed suit for collection in the franklin county, ohio, court of common pleas. In response, defendant filed a counterclaim against plaintiff, alleging that plaintiff caused his losses through negligence, misrepresentations, and churning. Due to a history of discovery difficulties, the state court dismissed defendant"s counterclaim with prejudice, for refusal to comply with plaintiff"s discovery requests and the court"s discovery orders.
