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 the current SRO Rules (e.g., NYSE Rule 610), the Director of Arbitration “may remove an arbitrator based […]
Arbitration
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 stockbroker 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.
Prefer to talk by phone? Call Mark Astarita at 212-509-6544 with any questions regarding securities law, enforcement and arbitration.
Appeal Does Not Extend Time to Pay
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 (Viersen v. […]
NASD Online Arbitration Filings for Analyst Cases
Analyst Conflict Cases Set for Online Filings at NASD Arbitration Introduction on online system moved up to accomodate analyst cases. [Ed. This was originally posted in 2003 and is presented for historical reference] NASD has submitted a rule revision to the SEC which would amend its claim filing rules to […]
Customer Receives $12 Million in Arbitration Against Banking Unit
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 […]
Court Strikes Confidentiality Provision in Customer Settlement Agreement
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 […]
Punitive Damages in Arbitration
The issue of whether arbitrators should be permitted to award punitive damages in arbitration has been a hot issue in securities arbitration since the dawn of securities arbitration. In some states most notably New York, where the vast majority of arbitrations are held — the law always prohibited punitive damages […]
NASD Gets Tough On Discovery
NASD Gets Tough on Discovery A warning to firms and customers. Discovery issues have always been a hot topic in all litigation matters, and arbitration is no different. Parties continually complain that the other side is not producing documents, and while the dispute is often caused by an unreasonable demand, […]
Fight Back Revisited
A recurring problem in civil litigation is the filing of claims by plaintiffs which lack merit, or are which are filed for purposes other than to address a grievance or a wrong. The problem is particularly acute in the securities arbitration arena, where in addition to the cost, expense and […]
$1 Arbitration Award plus punitive damages amended
After remand from court, arbitrators correct their award to comply with the applicable statutes. ALLISON v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., NASD ID No. 01-05877 (Tampa, 2/26/04). The Arbitrators issued an amended Award in this case, because the first time, when they tried to give the Claimant $1.00 […]
Securities Arbitration
Guide To Securities Arbitration When you finish reviewing the sites of “consultants” who want to help you sue your broker, visit the real securities law site – The Securities Law Home Page. Written, maintained, and supervised by a Wall Street securities attorney, you will get straight information on the law […]
