]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives NYSE Award Summary – January ’02
Fourteen Awards: Three industry disputes, eleven customer disputes
One of the Customer-related Awards was against a customer, by a broker-dealer chasing an account deficit. Three were Small Claims matters and all three named Merrill Lynch as the Respondent and ML Media Opportunity Partners, LP as the product in dispute. Single Arbitrators from three different states voted no on liability.
A single Arbitrator in another case, Cantrell v. A.G. Edwards & Sons, Inc. (NYSE ID #2001-009111, Charlotte, 1/25/02) was appointed by agreement of the parties, even though the amount in dispute, $24, 603, exceeded the NYSE Small Claims jurisdictional amount of $10,000. The Award disposes of Claimants two claims separately, indicating the failure to notify claim is denied, but $12,692.56 is awarded on the failure to execute claim.
Claimant in Edwards v. Morgan Stanley (NYSE ID #2001-009006, NYC, 1/30/02) stated his case too politely, judging from a summary that complains of an unwanted sale of stock, but the Arbitrators follow suit when, in dismissing the claim, they recommend that the CRDs of individual respondents be expunged. This may not do it! If Arbitrators are going to bother ordering expungement in todays climate, they will need to direct it (not just recommend it) and justify it, per CRD guidelines, especially in customer cases.
The Arbitrators in Magid v. Prudential Securities (NYSE ID #2000-008686, Omaha, 1/25/02) were quite direct. In granting a portion of the customers claim, they directed Respondents to pay an additional and separate one-third of the awarded amount in attorneys fees, as provided in the contingent fee arrangement.
Among the ten customer-initiated cases, Claimants won monetary awards in five. The highest dollar award occurred in Majik Entp. v. Everen Securities (NYSE ID #2000-008495, 1/18/02) where a Phoenix-based Panel granted $600,000 in actual damages.
On the industry side, in a bonus case, the claiming broker won $650,000, plus two years interest at 9% (Alban-Davies v. Credit Lyonnais Securities (USA), NYSE ID #2000-008631, NYC, 1/28/02).
CIBC Oppenheimer started out to collect a promissory note from a former broker in CIBC v. Garawitz (NYSE ID #2000-008662, NYC, 12/26/01), but ended by losing on the note and paying an additional $50,000 to Respondent on a defamation claim. One of the Arbitrators dissented from the dismissal of the note claim, but he evidently concurred on the counterclaim for defamation.
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