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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Narragansett Indian Tribal Historic Preservation Office v. FERC

Court: US Court of Appeals for the District of Columbia Circuit

Docket: 19-1009

Opinion Date: February 7, 2020

Judge: Patricia Ann Millett

Areas of Law: Government & Administrative Law, Native American Law

The Narragansett Tribe petitioned for review of the Commission's order denying its motion to intervene in a natural gas pipeline certificate proceeding after the certificate to build a pipeline had issued. While the Tribe awaited the Commission's action on its pending motion to intervene and its separate motion for reconsideration of an order allowing construction to commence, the pipeline was completed. In the process, more than twenty ceremonial stone features were destroyed. The Tribe then petitioned for review seeking only an order compelling the Commission to amend its regulation so that it cannot repeat the alleged violations of the National Historic Preservation Act in the future. The DC Circuit held that the Tribe lacked standing to seek such relief because it has not shown a substantial risk that a similar disagreement between it and the Commission will recur. Accordingly, the court dismissed the petition based on lack of jurisdiction.

Herpel v. County of Riverside

Court: California Courts of Appeal

Docket: E070618(Fourth Appellate District)

Opinion Date: February 10, 2020

Judge: Raphael

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

At issue before the Court of Appeal was whether Riverside County, California could impose a tax on possessory interests in federally owned land set aside for the Agua Caliente Band of Cahuilla Indians or its members. In 1971, Court held that it could, holding in part that federal law did not preempt the tax. The tax was also upheld that year by the Ninth Circuit. Since then, the United States Supreme Court articulated a new preemption framework in considering whether states may tax Indian interests, and the Department of the Interior promulgated new Indian leasing regulations, the preamble of which stated that state taxation was precluded. Nevertheless, the Court of Appeal concluded, as it did in 1971, this possessory interest tax was valid.

In re Guardianship of Eliza W.

Court: Nebraska Supreme Court

Citation: 304 Neb. 995

Opinion Date: February 7, 2020

Judge: Papik

Areas of Law: Family Law, Native American Law

The Supreme Court reversed the order of the county court establishing a guardianship for an Indian child, holding that the guardianship proceeding was governed by the federal Indian Child Welfare Act (ICWA) and the Nebraska Indian Child Welfare Act (NICWA) and that the required showing under ICWA and NICWA was not made in this case. Grandmother sought to establish a guardianship for a Native American child over the objection of Mother. At the conclusion of the evidence at trial, the county court stated that it had found a sufficient basis for the appointment of Grandmother as the child's guardian. The court did not mention ICWA or NICWA in its written order appointing Grandmother as guardian for the child. The Supreme Court reversed and remanded the cause with directions to vacate the guardianship, holding (1) ICWA and NICWA applied to the guardianship proceeding; and (2) the guardianship proceeding failed to comply with ICWA and NICWA.