Customers who abuse the system, and harm their brokers. By Mark J. Astarita, Esq. These days, it seems that every major publication, and every television news show, has done, or is doing, a story on “rogue brokers” – brokers who care nothing about their customers, or their firms, or the […]
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.
Arbitrator Refusal to Hear Evidence
Refusal to Hear Evidence is Misconduct Only if Prejudice to Fair Hearing Results Woodley vs. Auerbach, Pollack & Richardson, Inc., Case NO 01-8489-CIV (SD Fla. 11-14/01) Woodley v. Auerbach, Pollak & Richardson, Inc., Case No. 01-8489-CIV-Middlebrooks (S.D. Fla., 11/14/01): An Arbitrator’s refusal to hear “pertinent and material” evidence constitutes misconduct […]
What Happens at a FINRA Arbitration Hearing?
By Mark Astarita, Esq. Past columns have touched on the arbitration hearing itself and have raised the question just what happens during an arbitration hearing. It seems that there are a wide variety of ideas on just how those proceedings take place, and there is a substantial misconception regarding the […]
The Case for Flat Fees For Defense In Securities Arbitration
The Defense of Securities Arbitration Claims Can Be Handled on a Flat Fee Basis By Mark J. Astarita, Esq. Every General Counsel at every brokerage firm that has ever been named in a securities arbitration, and every individual broker in the same situation, is aware of the cost of defending […]
Customer Claims in Arbitration
I have been representing customers and brokers in securities arbitration matters since 1982. In those 35 years I have handled over 700 securities arbitration cases. Since securities arbitration is such a large part of my practice, I also survey all of the arbitration awards that are entered in matters across […]
Compulsory Arbitration Waivers
Not just for lawyers, the Securities Law Home Page has information for every participant in the financial markets, including attorneys, paralegals, investors, entreprenuers, finders and others regarding the law of the financial markets and investments, including arbitration, NASD, NYSE and SEC rules and regulations, including those regarding churning, over trading, suitability, fraud, misprepresentation, and markups as well as corporate finance, IPOs, direct public offerings, securities law, securities regulation, commodities and related topics. Sponsored by Mark Astarita, Esq., a New York City securities attorney.
Arbitrators Are Not in Manifest Disregard of the Law Where Questions of Fact Exist
Arbitrators are not in manifest disregard of the law, where a question of fact exists that the Panel might have resolved in a number of ways First of Michigan Corp. v. Mansour, No. 228521 (Mich. App., 5/17/02). Award Challenge * Confirmation of Award * Manifest Disregard * Exceeding Powers * […]
Amount in controversy in arbitration vacature is amount of award
Motion to Vacate Jurisdiction – When filing a motion to vacate an arbitration award, the court must have jurisdiction. This case holds that for Purposes of Determining Diversity Jurisdictionthe Dollar Threshold Is the Amount of the Award, not the Amount Claimed in the Underlying Controversy ED: Mmotion to vacate an […]
Customer Pays Fidelity Full Damages on ACAT Transfer Error
Panel awards Fidelity Brokerage Full Damages on Mistaken ACAT Transfer FIDELITY BROKERAGE SERVICES, INC. v. LaVALLIE, NASD ID # 99-03918 (New York, 8/22/03). A customer who wrongly retained an over delivery of securities is held liable for the consequences, in spite of the broker-dealer’s error. Fidelity made a mistake when […]
Arbitrator Authority to Decide Jurisdiction
Poweragent, Inc. vs. Electronic Data Systems Corp. Objections to jurisdiction may be generally decided by the courts, but once the arbitrators rule, the authority cannot be challenged. POWERAGENT, INC. v. ELECTRONIC DATA SYSTEMS CORP., No. 02-17022 (9th Cir., 2/25/04). Objections to arbitral jurisdiction, i.e., arbitrability issues, may be generally decided […]
