Our managing partner - Gail Boliver - is a member of the Public Investors Arbitration Bar Association (PIABA), an organization of attorneys representing investors in disputes with the securities industry. Mr. Boliver is an experienced securities attorney who has also written articles in the PIAB A Law Journal and other publications.
Recognized as one of the most experienced securities and investment attorneys in Iowa and Nebraska, he has in-depth knowledge of the rules of law and policies that affect investors in disputes with stockbrokers, brokerage firms, and other financial professionals. Using this knowledge he is able to assist clients in obtaining the best possible results in securities litigation.
There are a number of factual, procedural and legal issues that an investor or institution must consider before deciding whether to file an arbitration claim or lawsuit for violations of federal or state securities law, common law, or other regulatory or industry standard violations. Investors and their lawyers should consider issues such as the evidence supporting their claims, potential defenses that the Respondents could raise, and damages. An experienced securities lawyer at Boliver & Bidwell Law Firm can evaluate your circumstances and help you determine whether to proceed.
Jurisdiction and Venue
Most brokerage firms require, by contract, resolution of disputes through arbitration. The securities industry has one forum for presenting financial disputes. The Financial Industry Regulatory Authority (FINRA) operates a nationwide arbitration forum. Each state has a site where arbitrations are held. In Nebraska, arbitrations are conducted in Omaha. In Iowa, arbitrations are conducted in Des Moines.
FINRA arbitrations are governed by rules which guide practitioners from claim commencement through the final hearing.
Case Evaluation and Submission
First, examine the issues which are in dispute. Gather as much information as possible for an evaluation of the feasibility of your case. We can help with this important decision. Your case will take time and money to prepare and present. You want to carefully evaluate the merits of your case.
Second, if you decide to proceed, FINRA requires that you sign a submission agreement which states that you accept the process of arbitration and agree to follow the rules of the forum.
Discovery
After a case is filed and a response is received from the Respondent(s), the case enters the process known as discovery. During this phase, both sides exchange extensive documents and information. FINRA provides a Discovery Guide which gives guidance as to the mandatory and applicable documentary disclosures. In many cases, additional documentation is necessary and will be requested. This process is ongoing and will often continue throughout the pendency of your case.
Defenses
A typical defense is to argue that the "market" is the culprit or cause of losses to the investor. In defective product cases, this is untenable. In a portfolio suitability case, the defense is typically exposed when one shows the defense reliance on "market" includes only the equity portion.
Arbitration
A typical arbitration hearing is conducted in a hotel conference room. The arbitration will be decided by a single arbitrator if the claim for damages is initially less than $100,000. If the claim for damages is initially more than $100,000, the matter will be decided by three (3) arbitrators. One of the three arbitrators will be an industry arbitrator.
Congress is currently considering whether the arbitration system is fair to aggrieved investors. Under one current proposal to improve the fairness of the process, the industry arbitrator would be eliminated.
Damages
An arbitration Claimant will ask for compensation or damages which were sustained as a result of improper investment advice.
A typical claim for damages would include a calculation based upon the difference between the Claimants improper portfolio, and one that would have been more suitable, or proper. This damage calculation subjects the Claimant(s)' asserted damages to market conditions.
In some cases, a damage request of rescission is appropriate if the investor was directed to a certain defective or inappropriate investment.
The evaluation of damages is an important step in evaluating the case prospects.
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
