Spear Leeds & Kellogg v. Bullseye Securities, Inc., No. 5435, 2002 N.Y. App. LEXIS 1563 (N.Y. App. Div., 1Dept., 2/14/02). Award Challenge * Vacatur of Award * Exceeding Powers * Manifest Disregard * Irrationality * Remand to Arbitrators * Rationale of Award. Individual claimants, as a matter of law, […]
Tag: Arbitration
Arbitrators Cannot Sanction Attorneys
After nearly 4 years, a Court vacates a $700,000 arbitrator sanction against trial counsel CIBC Oppenheimer Corp. v. Friedman, No. B141521 (Cal. App., 2Dist., 2/21/02). Agreement to Arbitrate * Vacatur of Award * State Law, Applicability of * Exceeding Powers * Sanctions (Arbitral) * Breadth of Agreement * State Statutes […]
Attorney Fee Provision in Note Works Against Brokerage Firm
BELL & STANTON v. PRUDENTIAL SECURITIES, INC., NASD ID #99-04338 (San Diego, 5/21/01): In California, a provision for attorney fees in a promissory note or agreement is deemed reciprocal, so that both sides can claim such entitlement. In this case, it seems that such a provision worked to the detriment […]
Arbitrators Must Detail Attorney Fee Awards
In Response to Florida Supreme Court Ruling, Attorney Fee Awards Provide Necessary Detail HARE & POLO TRUSTS v. GRUNTAL & CO., LLC, NYSE ID # 2000-008643 (Ft. Lauderdale, 5/17/01): In apparent response to the Moser decision on attorney fees in arbitration, arbitrators have begun stating how they have disposed of […]
NASD Relocation?
Filings Up, Staffing Increases Proposed, NASD-DR to Relocate? According to representatives of the two forums, new filings are up and are staying up. At the New York Stock Exchange, they surged 41% during 2001 and were especially high in the final quarter of the year. That increased level of activity […]
Arbitration Briefs – Procedure Fault is Grounds for Appeal
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, which Mr. Brook lost, concerned an employment dispute over severance benefits. The Employment Agreement between the […]
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 This was originally posted in 2003 and is presented for historical reference] NASD has submitted a rule revision to the SEC which would amend its claim filing rules to […]
Make Mandatory Arbitration Unenforceable
Commentary from T. Sheridan O’Keefe I have something in common with Stephen Sawtelle — a former broker from Waddell & Reed who was just awarded almost $28 million from an NASD arbitration panel (see the front page story in The Wall Street Journal, Aug. 29, 2001). You see, we both […]
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 […]
