497 F. App'x 171
3d Cir.2012Background
- Rader opened an investment account with ShareBuilder on Jan 2, 2009, agreeing the Account Agreement would be governed by Washington law and indemnify ShareBuilder for inaccuracies.
- On Jan 5, 2009, Rader bought 280 Cisco shares online, indicating funds would come from a savings account; ShareBuilder funded the purchase with its own capital and would seek reimbursement later.
- ShareBuilder could not access the savings account because the provided account number was incorrect; four transfer requests from Jan 5–8 also failed due to incorrect details.
- On Jan 12, 2009, after selling Cisco shares, ShareBuilder offset the amount owed and eventually disbursed $19,589.35 to Rader’s corrected U.S. Bank account.
- Following miscommunications, ShareBuilder unilaterally terminated Rader’s account on Jan 23, 2009 and disbursed about $6,000 remaining in the account.
- Rader filed four federal lawsuits in May 2009; the District Court granted ShareBuilder’s motions for summary judgment and awarded $378,260.55 in fees and costs, which Rader appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether summary judgment against Rader on contract claims was proper | Rader asserts genuine issues of material fact exist | ShareBuilder proves the Agreement governs and liability stems from inaccuracy | Affirmed summary judgment; contract liability sustained |
| Whether libel, slander, and privacy claims are barred by privilege | Rader contends civil claims survive | Delaware absolute litigation privilege bars them | Claims rejected as barred by privilege |
| Whether the district court properly dismissed attempts to recuse or disqualify the judge | Rader alleged judicial disqualification due to conflicts | No sufficient basis for recusal or disqualification | Disqualification or recusal denied; no abuse of discretion |
| Whether the counterclaim summary judgment and fees award were proper | Rader challenges the amount and basis for fees | Washington law governs and indemnification clause supports award | Judgment in ShareBuilder’s favor on counterclaim affirmed; fees upheld |
Key Cases Cited
- Barker v. Huang, 610 A.2d 1341 (Del. 1992) (absolute privilege for defamation claims in litigation context)
- Phillips v. County of Allegheny, 515 F.3d 224 (3d Cir. 2008) (de novo review standard for mixed questions of law and fact)
- Viera v. Life Ins. Co. of N. Am., 642 F.3d 407 (3d Cir. 2011) (standard of review for certain summary-judgment rulings)
- Budget Blinds, Inc. v. White, 536 F.3d 244 (3d Cir. 2008) (abuse-of-discretion review for default and related rulings)