By: Derek Hawkins//June 1, 2017//
7th Circuit Court of Appeals
Case Name: The Conway Family Trust v. Commodity Futures Trading Commission
Case No.: 16-3289
Officials: BAUER, EASTERBROOK, and SYKES, Circuit Judges.
Focus: Statute of Limitations
During October 2008 the Conway Family Trust lost some $3.6 million trading futures contracts. Contending that errors by Dorman Trading, LLC, a futures commission merchant, caused some of these losses, the Trust asked the Commodity Futures Trading Commission to order Dorman Trading to make reparation. A statute authorizes the CFTC to provide relief for losses caused by regulated persons’ violations of the Commodity Exchange Act, but only if a claim is filed within two years of its accrual. 7 U.S.C. §18(a)(1). The Trust did not present a claim until October 2011, almost three years after it had closed its ac‐ count with Dorman Trading. The Commission dismissed the claim as untimely. Within two years of its losses the Trust did make a claim for compensation—not with the Commission but with the National Futures Association, which referred it to arbitration. The panel of arbitrators awarded the Trust some $500,000 against several respondents but ruled in favor of Dorman Trading because the Trust’s contract with that entity set a one‐year time limit for financial claims. Having lost against Dorman Trading in one forum, the Trust sought a better result from the Commission and contended that the time devoted to pursuing relief through the Association should be subtracted from the two years allowed to seek relief from the Commission. The Trust labeled this request one for equitable tolling, and the Commission rejected it, observing that nothing had prevented the Trust from starting a reparations proceeding earlier.
Petition for review denied