Government
Losses Mounting for Former New Canaan Fund Manager
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In a strongly worded rebuke, a U.S. district judge last week dismissed a New Canaan man’s complaint against the American Arbitration Association in connection with a $7.8 million award against him. Judge Naomi Reice Buchwald of the Southern District of New York said the complaint filed by town resident Gregory Imbruce amounted to a “thinly veiled attempt” to strip the AAA of its immunity—a key defense to Imbruce’s claim that the AAA committed breach of contract, unjust enrichment and fraud, among other violations. The plaintiffs in the case are Imbruce and five companies in which Imbruce himself is the sole member, according to the court order (embedded below). Imbruce accused the AAA of wrongfully allowing his adversaries to pay tardily an administrative fee in the arbitration. That, in turn, allowed the adversaries in Imbruce’s claim to assert a monetary damages claim, resulting in the multi-million dollar civil theft award against him.