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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Parker v. EnerNOC, Inc.

Docket: SJC-12703

Opinion Date: February 12, 2020

Judge: Budd

Areas of Law: Labor & Employment Law

The Supreme Judicial Court affirmed the jury's verdict awarding Plaintiff damages after finding that Defendants violated Mass. Gen. Laws ch. 149, 148, 148A & 150 (the Wage Act) but vacated portions of the trial judge's final judgment, holding that the judge erred in his determination of the portion of the award subject to trebling under the Wage Act. Plaintiff, a former employee of Defendants, argued that Defendants failed to pay her the full amount of a commission that she had earned and by terminating her when she complained about it, resulting in her losing an additional commission. The jury found that Defendants violated the Wage Act and awarded Plaintiff damages. The Supreme Court reversed in part, holding (1) the jury's verdict was supported by the evidence, and therefore, the trial court properly denied Defendants' motion for judgment notwithstanding the verdict; but (2) the full amount of the commission that would have been due to Plaintiff had she not been terminated is a "lost wage" that must be trebled pursuant to the Wage Act.