Prior NASD Disciplinary Proceedings Cannot Be Used at Trial Markowski v. Attel Bank Intl., Ltd., No. 3D98-3336 (Fla. Dist. Ct., 3Dist., 6/14/00): On appeal from a bench trial, Defendant Markowski challenges the judgment below. In this matter, Attel Bank sought to enforce and collect on a promissory note executed […]
Tag: Arbitration
Customer Not Beneficiary of Clearing Agreement
Customer Not Beneficiary of Clearing Agreement Hossain vs. Rauscher Pierce Refsnes Hossain v. Rauscher Pierce Refsnes, Inc., Case No. 97-1380 (D. Kan., 5/15/00): A customer of an introducing broker is not a third party beneficiary of a clearing agreement between an introducing and clearing broker. Hossain claimed to be a […]
Mistake of Law is Not Disregard of Law
California Court upholds arbitration award Baraban Securities, Inc. v. Viersen & Watts, Case No. CV 00-02931 (WJR) (C.D. Calif., 4/18/00): Baraban alleges manifest disregard of the law in its petition to vacate the underlying NASD Award (NASD ID #97-02538, Portland, OR, 2/23/00), claiming that the claims were encompassed by a […]
Refusal to Grant Adjournment
Third Time is not a charm Whale Securities Co., L.P. v. Godfrey, No. 565 (App. Div., 1Dept., 4/4/00): When SAC summarized the decision below, 10 SAC 9(16), we set out the facts in detail and posed the question: “How would you decide?” The question at hand, whether the Arbitrators engaged […]
Arbitrators Award $750,000 for Annuity Sold to 96 year old
Danks vs. Merrill Lynch DANKS v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., NASD ID #01-06242 (Boca Raton, 1/22/03). On claims relating to the propriety of a single, large investment by a 96 year-old decedent, a three-person Panel grants compensatory damages of $606,682, plus pre-judgment interest of $143,318. The say-nothing […]
Fraud in Execution of Agreement is Defense in Arbitration
Fraud In Execution of Arbitration Agreement is Defense to Confirmation of Award Even if the appellant did not move to vacate or object to the arbitration proceeding. Trading Direct v. LaRusso, 2002 Conn. Super. LEXIS 480 (Conn. Super., 2/7/02). Agreement to Arbitrate * Appealability * Award Challenge * Collateral Attack […]
Eligibility and Attorney Fee Awards Under Review
Courts accept cases dealing with Eligibility and Attorney Fee Awards ELIGIBILITY AND ATTORNEY FEES UNDER REVIEW: The Florida Supreme Court is reviewing its position on the awarding of attorney fees in arbitration and the effect of the six-year eligibility provision on a litigant’s claims. Barron Chase v. Moser was accepted […]
Broad Arbitration Agreement Covers All Accounts by Owner
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 […]
Clearing Firm’s Arbitration Agreement Includes Claims Against Introducing Firm
Hirshenson v. Spaccio, Case No. 5D00-2145 (Fla. App., 11/30/01). Appealability – Arbitrability ? Breadth of Agreement ? Scope of Agreement – State Statutes Interpreted (Fla. Stats. Ch. 517) ? State Law, Applicability of. Customer’s fraud claims against introducing broker, including claims under Florida Securities Act, are subject to arbitration under […]
Forcing Customers to Waive Rights Has Consequences
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). […]
