The seminar, held at the Practising Law Institute in Manhattan on Wednesday, Sept. 27, from 9 a.m. to 5 p.m., included six segments, each featuring a lively discussion by a five-person panel including representatives of FINRA, arbitrators and customer and industry counsel. The seminar, hosted by Sandra D. Grannum, Esq., Drinker Biddle & Reath, included […]

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By Sarah G. Anderson In Colorado, an arbitration Award, even if unexplained, may, as to issues it necessarily decides, have a preclusive effect in a parallel proceeding between the parties to the arbitration and/or parties in privity with them. Charles Schwab & Co., Inc. vs. Highwater Wealth Management, LLC, No. 17-cv-00803 (D. Colo., 8/16/17). A […]

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Oral argument took place October 2nd before the Supreme Court in Epic Systems Corp. v. Lewis, 137 S.Ct. 809 (2017), the first case of the Court’s new Term. As we reported several times, the Supreme Court in January granted certiorari in three cases involving whether the Federal Arbitration Act (“FAA”) prevails over the National Labor […]

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By Ben Suter *A seven-year long securities scheme using forged or false documents and Ponzi-like payments justifies the imposition of the sophisticated means” sentencing enhancement on the broker who ran it. **A fake, nonexistent “bond” qualifies as a “security” under SEC Rule 10b-5 for “in connection with purchase or sale” purposes. USA vs. Meadows, No. […]

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While FINRA frowns on brokers who fail to pay arbitration awards and fees, a worse offense is testifying falsely during the proceeding; it can bring a permanent end to one’s career in the industry, as one broker has learned to his misfortune. According to his BrokerCheck report, Garbarino enjoyed a 35-year career as a broker […]

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After reporting on the appearance of FINRA CEO Robert Cook before a House Subcommittee last week, we thought we’d take a more intensive look at FINRA’s diversity efforts. As indicated in last week’s Arb Alert (SAA 2017-35), during the questioning of Mr. Cook, Rep. Gregory W. Meeks (D-NY) made specific reference to the Dispute Resolution […]

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By Christopher G. Lazarini The doctrine of res judicata bars a party from re-litigating issues that were or could have been asserted in an earlier action between the same parties. Morgan Stanley Smith Barney, LLC vs. Verble, No. 3:17-CV-175 (E.D. Tenn., 7/31/17). A Closed Case In 2014, Morgan Stanley sued Defendant in a FINRA arbitration […]

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Former American Arbitration Association chief Robert “Bob” Coulson passed away on September 9th at age 93. Mr. Coulson led the AAA for many years, first as Executive Vice President and then for two decades as President and CEO before retiring in 1994. Under his leadership, the alternative dispute resolution field and the Association enjoyed tremendous […]

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Florida only recently authorized arbitrators to assess attorney fees, changing a significantly more cumbersome process for obtaining that item of damages that previously required the intervention of the courts. As we explained in SAAs 2016-21 and 2013-42, under Florida case law, arbitrators were for many years prohibited from awarding attorney fees. They could rule on […]

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By Paul J. Dubow *In order to allege tortious interference arising out of the filing of a Form U-5, the plaintiff must allege specific opportunities and/or relationships with which the defendant has interfered. **A defendant is only liable for negligent misrepresentation to a person for whose guidance the information is supplied. Kollar vs. Allstate Insurance […]

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