EXPLAINED AWARD: WILCZYNSKI v. AEGIS CAPITAL CORP., FINRA ID #17-01664 (Washington, DC, 7/17/18). The Six-Year Eligibility Rule (FINRA Rules 12206 and 13206) is unique to securities arbitration and, yet, invites comparisons to statutes of limitations and considerations of whether or not tolling might apply. To resolve these issues, the only potential sources of “precedent” (non-binding […]

In this two-part survey, the latest in our series on 2017 Awards, we focus on the broker-dealers (BDs) with the largest number of Awards issued that year; in this first part, we pay special attention to Customer-Member (CM) Awards of the top four BDs and, since this is the third year in the row that […]

How much of the forum costs each party must pay is a matter for the discretion of the Arbitrators. Our second annual analysis of cost assessments in Customer-Member Awards (see SAA 2016-21 (May 31) for the original survey) once again reveals a decided tendency to favor customer claimants. A few words of explanation are in […]

JONES v. AMERICAN PORTFOLIOS FINANCIAL SERVICES, INC., FINRA ID #17-01414 (Baltimore, MD, 4/13/18). This 20-page Award, involving a broker who became a beneficiary of his client’s Will, discusses at length both the claim itself and various issues that arose in the course of the proceedings. The Estate of Addie Belle Jones brought this claim against […]

In the first part of our survey on punitive damages (see SAA 2018-13 (Apr. 4)), we took a “forest-level” look at this type of relief, focusing on request frequency and success rate and looking at how the statistics compared to prior years; in this final installment, we look at some of the notable “trees.” As […]

In this somewhat delayed follow-up to our earlier survey of the “Top Awards of 2017” (SAA 2018-06 (Feb. 7)), we turn to punitive damages, the “brass rings” of the arbitration carousel. We present our findings in two parts. This week, we look at them holistically, we ask the following series of questions: how often are […]

FINRA’s solicitation of comments on a proposal to make expungements more difficult, which we covered in SAAs 2018-07 (Feb. 14), -08 (Feb. 21) & -09 (Feb. 28), has inspired us to check on how often expungement requests are granted under current rules. The most recent rules change on the subject was the adoption of Rule […]

GHERARDI v. CITIGROUP GLOBAL MARKETS, INC., FINRA ID #16-01001 (Miami, FL, 2/28/18). Behind almost all Awards is a story twice told – once by the claimant and the second time by the respondent, each phrased to favor the teller – but one too rarely gets a glimpse of the story from the Award itself. In […]

We continue here our analysis of FINRA’s recently-published Report, FINRA Perspectives on Customer Recovery, and share news that a Bill has been introduced in the Senate to require FINRA to implement one of the Report’s proposals. We analyzed in SAA 2018-06 (Feb. 7) this new Report, which the Authority said “is intended to encourage a […]

As we have the last two years, we take time during the first few months of this year to look back at the year ended. And, repeating the pattern we have set each time, we begin with the largest damage awards of 2017. The year began with a bang: the single largest award in the […]