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 The Securities Law Forums
 Arbitration
 FINRA Ban On Motions To Dismiss
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| Author | Topic: FINRA Ban On Motions To Dismiss |
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Mark Astarita Administrator |
posted 04-08-2008 03:10 AM
  
FINRA is proposing to ban virtually all motions to dismiss in arbitration proceedings. The net effect will be a huge benefit to claimaints and their attorneys, as every brokerage firm, and every broker, who is sued in arbitration will be forced to spend time and money conducting discovery and preparing for a hearing. Has FINRA been completely taken over by investors? See: http://seclaw.blogspot.com/2008/04/comments-due-on-finras-proposed-ban-of.html ------------------ IP: Logged |
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tradedesk New User |
posted 05-22-2008 02:43 PM
I worked at Liberty Plaza in NY. And those Arb rooms are always packed. Not for Profit? Id say not. FINRA Arbitration brings in millions. No way they permit dismissals. A short story, I was named in an arbitration once. However, the dates of the claim were outside my employ. When I submitted an answer asking that the claim be dismissed since I was not employed at the time of the event, The claimant was permitted to amend their complaint to include an overlap of the time of my employ. I was forced to pay the fee, and once I had been questioned, all claims were withdrawn by the claimant, with prejudice. They simply named me to compel me to testify. FINRA is a fraud. IP: Logged |
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Mark Astarita Administrator |
posted 05-31-2008 04:29 AM
A couple of points. First, with 4,000 arbitrations a year across the country, FINRA Dispute Resolution certainly takes in a bunch of money, but it also spends a bunch of money to administer all of those hearings in all of those cities. In fact, the last time I looked, FINRA Dispute Resolution lost money. As to dismissals and money, almost all of the money that comes from the actual hearings is paid to the arbitrators, so FINRA does not profit from the actual hearings. AND, FINRA has to pay for the hearing room. FINRA gets most of its fees up front. If money were the motivation, FINRA would encourage cases to be dismissed! As to your circumstance, there are a number of legitimate reasons for the case to have gone the way it did, but what fee were you charged for filing an answer? There is no fee for an associated person to file an answer in a FINRA arbitration. There is a fee for the FIRM to pay, but not the broker, and that fee is paid when the firm is named in the case, regardless of whether it is dismissed. ------------------ IP: Logged |
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