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Understanding the recovery process
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If you have been a victim of broker misconduct, in order to proceed with a claim to
recover your losses, there must be a forum where you can obtain a judgment or award.
Traditionally, that has been in a court of law, but that has changed over the last
number of years.
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Arbitration
Ever since the United States Supreme Court decision in Shearson/American Express
Inc. v. McMahon, 482 U.S. 220 (1987), in which the Court ruled that if a customer
of a brokerage firm has a dispute with his/her broker and signed a form agreeing to
arbitration, the complaint generally must be resolved through arbitration. Virtually
all brokerage firms include arbitration clauses in account opening documents.
Investors retain rights to use the court system in some situations, but for the most
part are limited to arbitration. Because arbitration proceedings are different than
court proceedings, it is important to make sure that your attorney completely understands
the arbitration process and its rules. At Heiner Law Offices, our sole practice is
representing our clients in securities arbitration and court cases.
While there are drawbacks to arbitration proceedings, there are also some benefits for the
investor:
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Arbitration proceedings are less expensive and time consuming than court proceedings.
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Brokerage firms often settle before the arbitration hearing begins.
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Decisions made by arbitration panels are final. There are very limited instances
where a court will vacate an arbitration award. This will save the investor from a
lengthy and costly appeals process.
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If a decision is made in the investor’s favor, the brokerage firm has thirty days to
pay what is owed.
In order to get a fair hearing, the composition of the arbitration panel is critical.
There are generally three arbitrators that will decide the case. The parties’ attorneys
have important input on the panel composition.
Arbitration pools in certain venues are
limited, and some arbitrators earn their living sitting on panels that decide cases, which
can make them reluctant to issue an award against a major brokerage firm. Heiner Law Offices
has extensive experience with arbitration panels and has a close
network of practicing claimant attorneys across the United States in every major
jurisdiction. As a result, we are in a unique position to help the claimant
choose a fair panel to decide your case.
In order for the arbitration panel to understand exactly what occurred in your
accounts or to present complex securities analysis, sometimes it is necessary to
retain experts to be witnesses at the hearing or to prepare financial analysis of
your accounts. Heiner Law Offices has worked with and has access to an
extensive array of the most qualified experts in the United States, with expertise
specifically geared toward your issues.
Depositions under oath are generally prohibited in arbitration, as well as extensive
motion practice, which make arbitration less stressful. We will be there for you during
the entire process, to keep you informed and answer all your questions until your
case is resolved.
Despite arbitration being the likely forum to resolve your dispute,
Heiner Law Offices has also successfully represented clients in securities lawsuits in state and
federal courts, before juries and judges, both in the initial action and to defend
arbitration awards. Contact us for a free consultation.
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