Peter,
I'm sorry to hear about your circumstances.
Buy=ins are usually defined in your new account agreement/document or probably more likely to be found in the margin agreement. I would suggest that you read it thoroughly. I have never seen a Datek document or their clearing firms' but if you fax to me at 201.475.9370, I'd take a look at it, yet I am sure you'll be able to go through it yourself.
I would assume they state they can buy-in without notice at any time. They dont want to be exposed under the most extreme circumstances. MOst clients simply sign without even reading or understanding or they read it but never think it could happen to them.
Whether it can infact happen doesnt mean it should. You should have been given a call by a broker, a support person, whomever, to tell you they had to buy it even, even if they could only give you a few minutes. Its not a matter of legal or not, its a matter of respect for your client , your most valueable asset.
Legally, unless you find wording that says they MUST give you notice, I would think you have to claim.
The real question is how much did the move from 6 1/2ish to 7 cost you and did they trade it after hours? did they make a market in the stock (check your confirm, etc)?
I continue to stress the importance of the right brokerage firm. another bad case of penny-wise pound foolish. With the right firm, you should never have these problems.
If you need any more help, contact me by email, steve@yamner.com. I do know a few attorneys that handle issus like this, yet i doubt you'll find much interest for 10grand. push the issue with datek, maybe they give you 6 3/4...
Regards,
Steve@yamner.com
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