1. Permanently enjoin Oppco and Savoy and anyone action in concert with them, from directly or indirectly soliciting any customer or client of EPC to transfer their business from EPC to any other person or entity, effective immediately;2. Permanently enjoin Oppco and Savoy to return all of EPC's proprietary information, whether in original, copied, computerized, handwritten, or in any other form, including but not limited to all confidential client and financial information - including all copies thereof to EPC;3. Permanently enjoin Oppco and Savoy from retaining, using, or disclosing any of EPC's proprietary information and from contacting EPC's clients and prospective clients or any other clients whose identities Savoy learned as a result of his employment with EPC, including but not limited to for the purpose of inviting, encouraging, or requesting the transfer of any client's business from EPC to Oppenheimer;4. Permanently enjoin Oppco and Savoy from further misappropriation of any of EPC's trade secrets and confidential proprietary information;5. Permanently enjoin Oppco and Savoy from destroying, erasing, or otherwise making unavailable for further proceedings in this matter, any records or documents (including data or information maintained in computer files or other electronic storage media) in their possession or control which were obtained from, or contain information derived from any of EPC's clients, or which relate to any of the events alleged in the Statement of Claim;6. Permanently enjoin Oppco and Savoy from continued interference with EPC's client relationships and probably future business relationships from which EPC reasonably expected financial benefit;7. Order Oppco and Savoy to produce to EPC all communications, including call logs, emails, and correspondence between Oppco and Savoy and EPC's clients and client prospects
SIDE BAR: The FINRA Arbitration Decision references a "Consented to Restraining Order entered on June 24, 2015 before the United States District Court for the District of Connecticut." As such, I infer that the FINRA arbitration was preceded by some action in federal court whereby a Restraining Order was implemented prior to the deliberations of the FINRA Arbitration Panel. Frankly, this procedural aspect of the parties' dispute should have been set forth with a bit more clarity in the FINRA Arbitration Decision.
After considering the pleadings, the testimony and evidence presented at the hearing,and the post-hearing submissions, the Panel has decided in full and final resolution of the issues submitted for determination as follows:
1. On consent of the parties the Consented to Restraining Order entered on June 24, 2015 before the United States District Court for the District of Connecticut is made permanent as follows:
a. Oppenheimer is permanently enjoined, along with its agents, employees, and representatives, from i) using or disclosing in any way any of the documents, electronically stored information and storage media that Oppenheimer obtained directly or indirectly from EPC ("Proprietary Information") to solicit EPC Customers, and ii) furnishing to anyone (other than to its attorneys, experts, the arbitrators in this matter, regulators or pursuant to lawful process to any duly constituted court)and any of the Proprietary Information;
b. Oppenheimer is permanently enjoined, along with its agents, employees,and representatives from soliciting, or attempting to solicit, directly or indirectly any customer Savoy served or whose name became known to Savoy while in the employ of EPC, providing that nothing herein shall prevent Oppenheimer from properly servicing any customer account inexistence as of June 22, 2015;c. Oppenheimer is directed, along with its agents, employees, and representatives to segregate and permanently sequester any and all documents concerning EPC clients that Oppenheimer cannot purge pursuant to its regulatory obligations, other than documents or information produced or obtained during discovery this matter, which remain subject to the Confidential Agreement entered ion [sic] or about December 18, 2015;d. Oppenheimer is directed, along with its agents, employees, and representatives, to preserve all documents and electronically stored information relevant to or discoverable in this FINRA arbitration as required by FINRA and SEC rule and regulations.
2. Oppenheimer is liable for and shall pay to EPC compensatory damages in the amount of $128,574.00.3. Oppenheimer is liable for and shall pay to EPC attorneys' fees in the amount of $200,000.00. The Panel granted attorneys' fees on the basis that both parties made the request.4. Oppenheimer is liable for and shall pay to EPC costs in the amount of $35,000.00.5. EPC is liable for and shall pay to Oppenheimer $250,000.00 for sanctions assessed against EPC.6. Oppenheimer's award in the amount of $250,000 is offset to EPC's award. As such, Oppenheimer is liable for and shall pay to EPC in the amount of $363,574.00 minus $250,000.00 awarded to Oppenheimer, for a net amount of $113,574.00.7. By letter dated January 16, 2018, Anderson Kill PC ("Anderson Kill"), counsel of record for the hearing and former firm of the lead counsel for EPC, notified Oppenheimer that Anderson Kill is asserting "any and all available statutory and common law liens" arising from the failure of EPC to pay Anderson Kill "in full for legal services rendered and disbursements incurred in the course of the representation" of EPC. Anderson Kill contends its purported lien attaches to "a verdict, report, determination, decision, judgment or final order in EPC's favor, and the proceeds therefore in whatever hands they may come". Oppenheimer disputes the validity of said lien, and the Panel has neither been asked to, nor did it, determine the validity of the lien. To protect Oppenheimer from the possibility of a double recovery, or being subject to inconsistent claims, Oppenheimer shall not be required to pay the final award in this matter pursuant to Article VI, Section 3 of the FINRA By-Laws or FINRA rules (including Rules 9554 and 13904), and no interest shall accrue on the Award, until i) thirty days after Anderson Kill notifies counsel for Oppenheimer in writing that it has released the aforesaid lien, and any and all claims associated therewith, with prejudice, or ii) thirty days after Oppenheimer receives this Award, or iii) thirty days after the Award is confirmed in a final, non-appealable judgment, whichever may occur last.8. Any and all claims for relief not specifically addressed herein, including punitive and treble damages, are denied.
Plaintiff Euro Pacific Capital Inc. ("Euro Pacific", the "Firm" or "Plaintiff"), by and through its attorney, brings this complaint for temporary and preliminary relief pending arbitration on the merits against Steven Savoy ("Savoy") and Oppenheimer & Co. Inc. ("Oppenheimer") (collectively, "Defendants"), in connection with Savoy's unlawful misappropriation and continued use of Euro Pacific's confidential proprietary information and unlawful solicitation of Euro Pacific clients to transfer their accounts to his new employer, Oppenheimer, in violation of his common-law and contractual obligations to Euro Pacific. Upon information and belief, Oppenheimer is complicit in Savoy's violations of his contractual obligations and misappropriation of Euro Pacific's confidential proprietary information. Taken together, Defendants' conduct constitutes an egregious breach of contract, misappropriation of trade secrets, tortious interference with business relations, unfair competition, slander per se, and civil conspiracy. . . .