In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in October 2011, Claimant Paul alleged that before and after his separation from employment, Respondent Allegiant Securities had failed to pay to him commissions that he had earned and had failed to reimburse expenses. Claimant ultimately sought $43,954.74 in compensatory damages plus interest, attorneys' fees, and costs. In the Matter of the FINRA Arbitration BetweenRichard W. Paul, Claimant, vs Allegiant Securities, LLC, Respondent (FINRA Arbitration 11-03915, December 7, 2012).
Respondent generally denied the allegations, asserted affirmative defenses, and filed a Counterclaim seeking $50,000 in compensatory damages plus fees and costs. Respondent, Allegiant Securities, LLC, did not file an executed Uniform Submission Agreement or appear at the final arbitration hearing but, nonetheless, having filed an Answer was bound by the decision.
A Moving Experience
Starting in December 2011, the parties embarked upon a prodigious exchange of motions, dueling motions, and the like:
RULING: Around April 2, 2012, the sole FINRA Arbitrator hearing this matter entered an Orderdenying Claimant's Motion to Strike Respondent's pleadings.
RULING: Around June 8, 2012, the Arbitrator denied Respondent's Motion to Change Hearing Venue.
RULING: Around November 29, 2012, the Arisitrator entered an Order denying Claimant'sMotion for Default Judgment to the extent that it asked for an award, but granting Claimant'sMotion for Default Judgment insofar as Respondent was prevented from introducing evidence by items that were ordered to be produced in the Arbitrator's previous October 7, 2012, Order.
The sole FINRA Arbitrator hearing this case found Respondent Allegiant Securities, LLC, liable to and ordered it to pay to Claimant Paul:
Ah yes, the trench warfare of Wall Street and its stockbrokers: The static line between owed and unpaid commissions and fees. Merrill Lynch. Wells Fargo. UBS. Goldman Sachs, Morgan Stanley. JP Morgan. Pick a firm. Any firm. Pick a day. Any day. You got yourself a lot of yelling and screaming about what a broker is owed, what the employing firm says is owed, and then a whole batch of threats about what's going to happen if the check isn't cut.