Arbitration

Securities arbitration refers to the alternative dispute resolution process to resolve claims between broker firms and their customers and employees. FINRA operates the largest arbitration forum in the United States for the resolution of these disputes.

While no one can be forced to give up their rights to a trial in court, virtually all agreements between investors and their stockbrokers include mandatory arbitration agreements, and every registered stockbroker is required to arbitrate their disputes with their customers and firms.

Our site has been providing information regarding securities arbitration since 1995, starting with Overview of the Securities Arbitration Process. We update the site on a regular basis and invite you to explore our commentary and links and to ask questions.

Prefer to talk by phone? Call Mark Astarita at 212-509-6544 with any questions regarding securities law, enforcement and arbitration.

Analysis Arbitration

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 […]

Arbitration

SICA Arbitration Report Released

The “News & Updates” Section of the NYSE Arbitration WebSite (www.nyse.com/arbitration) displays the Eleventh Report (2001) of the Securities Industry Conference on Arbitration. SICA periodically releases a Report, which is addressed to the Securities and Exchange Commission, as a way of formally apprising the Commission and the public of its […]

Arbitration Brokers Investors

Selling Away Claims Denied in Arbitration

Firm Still Must Pay $32,000 In Forum and Related Fees ROBINSON v. FIRST ALLIED SECURITIES, INC., NASD ID #99-04441 (Pittsburgh, 9/25/01): This “selling away” case involved thirteen separately filed arbitrations that were consolidated for pre-hearing and hearing purposes. By the time of the hearing, the broker had declared bankruptcy, leaving […]

Compel FINRA arbitration by non-customer
Analysis Arbitration

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 […]

Arbitration

NYSE Arbitration Award Summaries, May 2002

A summary of the 18 awards issued in May NYSE AWARDS, 5/02: Among the customer-initiated matters that concluded at the New York Stock Exchange in May were 10 ML Media-related Awards, a stipulated Award granting expungement, one small claims arbitration, and 7 others. The seven Customer-Member claims split 3-4 in […]