To the unsophisticated observer, lawsuits typically appear to be about winning. After all, when someone files a lawsuit in court or proceeds with an arbitration, the point must be to vanquish their adversary. Commonsense would dictate that you don't incur the costs of litigation just for the hell of it, right? Well . . . you know . . . that's one way of looking at it.
The causes of action relate to Respondents' alleged use of proprietary information to solicit the transfer of client accounts from Claimant to Respondent Wells Fargo, upon Respondent Dupuis' termination of employment with Claimant.
Bill Singer's Comment: Not thrilled with the above explanation in the Decision because it's not clear as to whether Edward Jones "discharged" Dupuis (which is one form of "termination of employment") or whether Dupuis resigned and, by doing so, voluntarily terminated his employment. In securities industry parlance, the term "termination" technically refers to the termination of registration with a member firm and does not necessarily equate with someone being fired; hence, the derivation of the title of the Form U5: "UNIFORM TERMINATION NOTICE FOR SECURITIES INDUSTRY REGISTRATION."
a) using disclosing, or transmitting information including, all books, records, documents and information pertaining to Claimant's business activities, including but not limited to clients, clients' accounts, and the identities, addresses or other information related to said clients and accounts; and that all original documents, and copies thereof, be immediately returned to Claimant; andb) soliciting, either directly or indirectly, sales of securities and/or insurance business to or from any Edward Jones client or otherwise induce any said Edward Jones client to terminate his/her relationship with Edward Jones, for those clients to whom Respondent Dupuis provided services or about whom Respondent Dupuis has information or knowledge of confidential information or Edward Jones trade secrets arising from employment with Edward Jones for a period of one year, to expire on March 7, 2017;
a) ordering Respondents to return in no more than seventy-two (72) hours to counsel for Claimant any and all information, materials, documents, files or data, in whatever form, and any copies (including electronic files stored on any portable electronic storage medium, including but not limited to, "thumb drives," portable hard drives, DVDs, CDs or any other electronic storage device) thereof, containing, reflecting, or referring to any of Claimant's confidential, proprietary, or trade secret data or information; and . . .
On or about April 14, 2016, FINRA received notice that the court denied Claimant's request for temporary injunction. Accordingly, this case proceeded pursuant to Rules 13302 and 13402 of the Code of Arbitration Procedure for Industry Disputes (the "Code").
AwardBill Singer's Comment: Once more, I'm not particularly enamored with a disclosure in this Decision. With literally the last substantive fact presented in the Decision before presenting the Award, we are informed of the apparent prior existence of some state court action by Claimant Edward Jones seeking a temporary injunction; and we have no indication of the state in which the injunctive action was filed or of the precise court within said system.
Hearing Session Fees and AssessmentsThe Panel has assessed hearing session fees for each session conducted. A session is any meeting between the parties and the arbitrator(s), including a pre-hearing conference with the arbitrator(s) that lasts four (4) hours or less. Fees associated with these proceedings are:One (1) pre-hearing session with a single arbitrator @ $450.00/session =$ 450.00Pre-hearing conference: March 23, 2017 1 sessionOne (1) pre-hearing session with the Panel @ $1,125.00/session =$ 1,125.00Pre-hearing conference: August 15, 2016 1 sessionEight (8) hearing sessions @ $1,125.00/session =$ 9,000.00Hearing Dates: April 11, 2017 2 sessions April 12, 2017 3 sessions April 13, 2017 3 sessions ______________________________________________________________________Total Hearing Session Fees =$10,575.00The Panel has assessed the total hearing session fees of $10,575.00 to Respondent Dupuis.