|
|
|||
BROKER-DEALER DISPUTE OF THE WEEK |
|||
|
Ward v. Bullis, No. 20070188, 748 N.W.2d 397,
2008 N.D. LEXIS 81 (N.D., 4/25/08). Statutory
Definitions ("Agent" “Materially Aids”) * State
States Interpreted (N.D.C.C. § 10-04-17) *
Representation Issues. To be liable as an
agent under the North Dakota Securities Act, an
attorney must do more than act as legal counsel.
The attorney must actively assist in offering
securities for sale, solicit offers to buy or
actually perform the sale.
ARBITRATION UPDATE OF THE WEEK ADVANCED EQUITIES, INC. v. KAPPEL, FINRA ID #06-01261 (Chicago, 4/7/08). An ex-employee wins compensatory damages, punitive damages and attorney fees on a counterclaim for gender discrimination and other compensation claims. Denise Kappel worked at Advanced Equities, Inc. (AEI) for less than 18 months and, when she resigned, Claimant Advanced Equities sought to recover $4,056 in alleged excess advances. Perhaps, the firm anticipated a substantial fight and just wanted to establish the battleground, because Respondent Kappel answered with a barrage of counterclaims that totaled $1.4 million in compensatory damages for alleged sexual harassment, sexual discrimination and a failure to honor a verbal understanding that promised extra compensation for brokering successful business deals. Ms. Kappel also requested more than $4 million in punitive damages. After a contested motion session regarding a third-party subpoena, one pre-hearing session with a single Arbitrator, two pre-hearing sessions with the entire Panel, and 15 hearing sessions over a 5-month period, this Panel of all-Public Arbitrators ruled, sustaining the Title VII claims, among others. AEI lost its bid for the advances and was assessed compensatory damages of $280,328 “for breach of employment agreement.” Separately, AEI was ordered to pay compensatory and punitive damages of $200,000 “under Title VII and pursuant to Mastrobuono v. Shearson Lehman Hutton, Inc…” and $80,000 in attorney fees “pursuant to Title VII….” Ms. Kappel paid only the filing fee of $200. AEI must pay member fees, forum fees, and other fees totaling $27,040. (ed: AEI has obtained new counsel for the post-Award proceedings in the Northern District of Illinois (Eastern Div., #08 CV 1991.). Ms. Kappel moved to confirm immediately and AEI counter-petitioned to modify the Award and oppose the confirmation motion. AEI claims a “material miscalculation” of the Title VII damages because AEI has fewer than 200 employees and $200,000 is the “statutory maximum” for firms with 200-501 employees. The proper amount is $50,000. Because of errors in the demonstrative exhibit the Panel relied upon in rendering the breach of contract damages, that amount should be either $169,213.20 or $201,754.20. Those changes mean the attorney fee award should be modified to $20,000.) (SAC Ref. No. 2008-23-02, 6/18/08)
As the authority on securities arbitration, SAC's data and expertise are regularly utilized by the top financial publications. Our Award Database provides essential support for surveys conducted annually by Smart Money and Kiplinger's. SAC's authoritative staff is frequently quoted in The New York Times, The Wall Street Journal, Securities Week, Barron's, Dow Jones, Bloomberg, and others. The General Accounting Office, recognizing the usefulness and accuracy of our data, has chosen to use SAC services for its second study of customer-initiated cases in securities arbitration. Here's what the press and our customers have to say about SAC products. "…the best source of information about the results of Wall Street arbitration cases." "…highly useful in the defense of arbitrations." "Thank you for your research regarding attorney fees and interest. The database information and case law you sent targeted the relevant issues, helping us to assess the risks involved in the case and ultimately to reach a satisfactory settlement. Your knowledge of the material is invaluable, and I certainly look forward to working with you again." "By encouraging arbitrators to read [the Commentator], the practitioners (and SAC) would assist in developing and maintain a better informed cadre of arbitrators, which is bound to serve the interests of those who appear before us and the industry which we all serve."
|
|||
|
Copyright © 2008 Securities Arbitration Commentator,
Inc. All rights reserved. |