N.Y. Appeals Court Vacates Summary Judgment to Broker MF Global in $141 Million Coverage Dispute

NEW YORK —A New York appeals court has vacated in part a grant of summary judgment to commodities broker MF Global Inc. in a coverage case, finding issues of fact as to whether a trader who caused the company to sustain a $141 million loss was an “employee” as defined by the excess bonds.

On July 16, the New York Appellate Division, 1st Department, upheld the trial court’s finding that MF Global sustained a “direct loss,” but ordered further discovery into whether the trader was under the company’s control and supervision.

MF Global Inc. is a commodities futures broker that …