Banc of America Investment Services Inc. v. Arthur Castro
Published: Sep. 20, 2008 | Result Date: Aug. 1, 2008 | Filing Date: Jan. 1, 1900 |Case number: 07-01487 Arbitration – $217,000
Facts
The claimant asserted that the respondent was in breach of provisions on two promissory notes, dated Dec. 12, 2003 and Jan. 20, 2005 respectively. The respondent rejected these assertions. The respondent claimed a number of causes of action in return, consisting of wrongful termination in defiance of public policies, wrongful custody of accounts and commissions, conversion of personal property, and unjust business customs. Claimant denied respondent's assertions.
Damages
The claimant demanded $72,600 for the principal balance claimant was entitled to pursuant to the first note, along with $9,562 in interest accrued. Furthermore, the claimant demanded $143,338 for the principal balance claimant was entitled to pursuant to the second note, along with $18,108 in interest accrued. Claimant also sought attorney fees of $32,022, plus $8,882 in costs. The respondent demanded a rejection of claimant's statement of claim and requested that 91 percent of the total amount due under the notes be offset from a potential award in light of transfers of certain assets from his former employer to the claimant. The respondent further demanded that the total of his unpaid earnings and commission be compensated. In a counter-claim, the respondent demanded compensatory damages, exemplary damages, attorney fees, and costs. At the end of the hearing, respondent demanded $227,047 in compensatory damages as well as reputational damages.
Result
Respondent was found at fault and required to pay claimant $207,000 in compensatory damages and $10,000 in attorney fees according to provisions in the promissory notes. The respondent's counterclaim was rejected.
Other Information
On July 9, 2008, claimant brought a motion for sanctions/motion to bar and preclude. On July 14, respondent filed an opposition to claimant's motions. On July 16, the claimant provided support for its motion. Ruling on the motion was set. At that hearing, the panel rejected claimant's motion. Also, respondent released his claims for commissions on three changeable life insurance policies and for damages pertaining to preservation of two IRAs, on which dismissal was contingent upon on the conveyance of the IRAs to respondent and his spouse. ARBITRATORS: Susan B. Gans Smith and Basil Lewis.
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