We all know that defending promissory note cases for brokers is difficult. After all, those notes have been written, revised, rehashed and reworked by brokerage firm attorneys for years.As I have noted in the past, and in my near daily telephone consultations with brokers with promissory note issues, this does not mean that the broker has no defense to the note. More appropriately, the “defense” is the counterclaim. The fact is, brokers don’t simply up and leave their firms, and they do not do it on a whim. Changing firms is difficult, time-consuming, and a burden on clients. There is a disruption in the practice, and countless hours spent getting setup at the new firm and moving the clients.Brokers leave because something is wrong, and depending on what is wrong there may be a viable counterclaim which can offset all or part of the promissory note obligation. I have represented brokers who successfully prosecuted claims against their firms in a number of instances.
Read the Full Article: The Securities Law Blog: Brokers Can Win Promissory Note Cases