Arbitration Process
Arbitration is a method of having a dispute between two or more parties resolved by impartial persons who are knowledgeable in the securities areas in controversy. Those persons are called arbitrators. Arbitration of disputes with broker-dealers has long been used as an alternative to the courts because it is a prompt and inexpensive means of resolving complicated issues. Most arbitrations are conducted by the dispute resolution arm of the Financial Industry Regulatory Authority (FINRA).
Arbitration hearings are scheduled usually between 12 and 24 months after the claim is filed. The hearing location is usually at a FINRA location that is closest to the residence of the investor. Hearings are typically held in a conference room with the parties, their attorneys, and the panel of arbitrators present. Parties present their opening arguments, call witnesses, testify, cross-examine each other’s witnesses, and with permission of the panel, conduct redirect examination. The arbitrators also can ask questions of each witness. Finally each side makes their closing argument. The arbitration panel typically rules on the matter shortly after the hearing (between 1-15 days). FINRA forwards the award to each party. When a broker or broker-dealer is ordered to pay they must do so within 30 days of the arbitration award or risk severe disciplinary action.
There are certain laws governing the conduct of an arbitration proceeding that must be considered by those planning to use arbitration to resolve the dispute. Most importantly, perhaps, is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should recognize, too, that in choosing arbitration as a means of resolving a dispute, they generally give up their right to pursue the matter through the courts.
Cost for Arbitration
Our legal fees are set on a case by case basis. Our firm accepts cases on the following terms: a contingency fee basis; a contingency fee basis with an up-front retainer which is credited towards any recovery made; flat fee (for small cases) and hourly.
When you arbitrate there will be a filing fee and deposit based on the size of your claim. FINRA arbitration filing fees run anywhere from $425 for a claim between $10,000 to $25,000 to $1,800 for a claim in excess of $1 million. For those with an economic hardship, FINRA may waive or reduce the filing fee. After filing the Statement of Claim and engaging in discovery with the brokerage firm, it may be necessary to retain an expert in the securities field to perform a damage or investment loss analysis and/or testify at a mediation and/or final arbitration hearing. These experts charge an hourly or flat rate.
The costs and expenses are separate and apart from the attorneys' fees. The firm may advance some or all of the costs; however, if there is a settlement and/or judgment amount, then the firm will be reimbursed the costs it has advanced the client from the proceeds of the settlement or award.
Return to Securities Arbitration & Litigation
Arbitration hearings are scheduled usually between 12 and 24 months after the claim is filed. The hearing location is usually at a FINRA location that is closest to the residence of the investor. Hearings are typically held in a conference room with the parties, their attorneys, and the panel of arbitrators present. Parties present their opening arguments, call witnesses, testify, cross-examine each other’s witnesses, and with permission of the panel, conduct redirect examination. The arbitrators also can ask questions of each witness. Finally each side makes their closing argument. The arbitration panel typically rules on the matter shortly after the hearing (between 1-15 days). FINRA forwards the award to each party. When a broker or broker-dealer is ordered to pay they must do so within 30 days of the arbitration award or risk severe disciplinary action.
There are certain laws governing the conduct of an arbitration proceeding that must be considered by those planning to use arbitration to resolve the dispute. Most importantly, perhaps, is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should recognize, too, that in choosing arbitration as a means of resolving a dispute, they generally give up their right to pursue the matter through the courts.
Cost for Arbitration
Our legal fees are set on a case by case basis. Our firm accepts cases on the following terms: a contingency fee basis; a contingency fee basis with an up-front retainer which is credited towards any recovery made; flat fee (for small cases) and hourly.
When you arbitrate there will be a filing fee and deposit based on the size of your claim. FINRA arbitration filing fees run anywhere from $425 for a claim between $10,000 to $25,000 to $1,800 for a claim in excess of $1 million. For those with an economic hardship, FINRA may waive or reduce the filing fee. After filing the Statement of Claim and engaging in discovery with the brokerage firm, it may be necessary to retain an expert in the securities field to perform a damage or investment loss analysis and/or testify at a mediation and/or final arbitration hearing. These experts charge an hourly or flat rate.
The costs and expenses are separate and apart from the attorneys' fees. The firm may advance some or all of the costs; however, if there is a settlement and/or judgment amount, then the firm will be reimbursed the costs it has advanced the client from the proceeds of the settlement or award.
Return to Securities Arbitration & Litigation
