White v. Salomon Smith Barney, Inc., 2001 Cal. App. LEXIS 2844 (Cal. App., 1Dist., 11/30/01) A broad arbitration provision covering one account of a client may be construed to cover disputes arising in other accounts. The Whites opened ten brokerage accounts with SSB and subsequently brought suit against SSB with […]
Securities arbitration refers to the alternative dispute resolution process to resolve claims between broker firms and their customers and employees. FINRA operates the largest arbitration forum in the United States for the resolution of these disputes.
While no one can be forced to give up their rights to a trial in court, virtually all agreements between investors and their stockbrokers include mandatory arbitration agreements, and every registered stock broker is required to arbitrate their disputes with their customers and firms.
Our site has been providing information regarding securities arbitration since 1995, starting with Overview of the Securities Arbitration Process. We update the site on a regular basis and invite you to explore our commentary and links, and to ask questions.
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]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives Dingell and Markey Comments on GAO Report Urge Changes in Employment Arbitration Mandatory Arbitration Criticized; Arbitrator Qualifications and Ratings Questioned In a letter to SEC Chairman William H. Donaldson and to the two SRO […]
Linden vs. American Express Financial Advisors – since forcing Claimant to give up her rights under California law, court vacates order compelling arbitration. Linden v. American Express Financial Advisors, Inc., No. CIV 205839 (Cal. Super. Ct., Ventura Cty., 9/25/02). Agreement to Arbitrate * Enforceability * Equitable Doctrine (Impossibility; Impracticality; Unconscionability). […]
Since no one ever agrees, let’s make the time period 5 days – NASD Staff Under a proposal submitted to the SEC on March 3, NASD will allow only 5 days for parties to agree on the selection of a chairperson, as opposed to the 15-day period in Rule 10308(c)(5). […]
]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives Failure to Follow Procedure May Be Grounds for Vacatur But only if the moving party preserved its objections during the arbitration process BROOK v. PEAK INTL., No. 01-50339 (5th Cir.., 6/13/02). The underlying arbitration, […]
A non-summary suspension proceeding for non-payment of an Award recently concluded with the suspension of a broker–dealer who is currently challenging the Award before the Ninth Circuit. Baraban Securities, nka Interfirst Capital Corporation, was held liable by a Portland-based Arbitration Panel for $53,400 in compensatory damages in February 2000 […]
American Heritage Life Ins. Co. vs. Orr, No. 01-60678 (5th Cir, 6/16/02) Consolidated appeals of orders compelling arbitration produce an appellate Opinion on two issues of importance in arbitration: appealability and forum costs. Appealability: In the action below, the district court decided a motion to compel arbitration in an independent […]
]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives Arbitrator Removal Proposals for Removal of Arbitrators Contemplated ARBITRATOR REMOVAL: What do you do when an Arbitrator on your Panel has a clear conflict and all routes to remove him/her have proved fruitless? Under […]
Castelein vs. Corporate Securities Group CASTELEIN v. CORPORATE SECURITIES GROUP, INC., NASD ID #99-04213 (Charlotte, NC). Our copy of the Award does not reflect an issue date, but the decision, we understand, was rendered this month. The decision refers to the brokers criminal plea agreement in federal court, in assessing […]
Clause preventing customer from speaking to regulators is void as against public policy By John M. Baker, Esq. California Court Rules Confidentiality Clause Invalid In a decision that will surprise few securities lawyers, a California appellate court has refused to enforce a confidentiality clause in a settlement agreement that […]