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 class action lawsuit and that they were barred by statutes of limitations and the six-year eligibility rule.
In the compensatory damages award of $53,406.48, the Court finds signs that the amount is in line with the damages arising from the Land & Cattle investment plus interest. Land & Cattle was not part of the class action BSI refers to. Similarly, an issue of fact existed concerning whether an investment on the six-year cusp was made before or after the six-year period, which means the question lies within the Arbitrators discretion to decide.
The running of the statute of limitations also pivots on a factual question of constructive notice.
Nothing in the record suggests that the arbitration panel recognized the correct statutory period of limitations and then chose to ignore it . At most, Baraban demonstrates that the arbitration panel made an error in the law.
(SAC Ref. No. 2000-12-001)
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