Sterling Casualty Insurance Company, H&H Agency Inc., D&H Claims Services Inc. v. Bear Stearns & Co. Inc. nka J.P. Morgan Securities Inc., CIBC World Markets Corp., Wachovia Securities LLC, Oppenheimer & Co. Inc., Michael Horaney
Published: Jan. 24, 2009 | Result Date: Dec. 19, 2008 | Filing Date: Jan. 1, 1900 |Case number: 07-01108 Arbitration – $138,200
Court
Arbitration Forum
Attorneys
Claimant
David J. Darnell
(Callahan & Blaine, APLC)
Alton G. Burkhalter
(Burkhalter, Kessler, Clement & George LLP)
Respondent
G. Thomas Fleming III
(Jones, Bell, Abbott, Fleming & Fitzgerald LLP)
Robert J. Girard
(Girard Bengali APC)
Mitchell J. Albert
(Albert & Will LLP)
Neal S. Robb
(Keesal, Young & Logan)
Facts
The claimants alleged that respondents violated the Insurance Code, as well as the NASD and NYSE rules of excessive trading, churning, suitability, and supervision. They also alleged breach of fiduciary duty. Each claim related to insurance company account transactions. The respondents denied all claims.
Damages
In the statement of claim, claimants requested out of pocket damages of $33 million and expectation damages from a properly allocated portfolio of more than $10 million from the four different brokerage firms and one broker. Prior to hearing, claimants entered into settlements with three of the brokerage firms, respondents CIBC World Markets Corp., Wachovia Securities and Bear Stearns & Co. The terms of the settlements are confidential. At the hearing, claimants requested damages ranging between $2,496,518 and $4,264,817 against respondents Oppenheimer & Co. Inc. and Michael Horaney. These respondents sought dismissal of the claims.
Result
The arbitration panel held respondents Michael Horaney and Oppenheimer & Co. Inc. liable and awarded the claimants $138,200.
Other Information
ARBITRATORS: Elliot Finkel, Thanayi J. Lindsey, Kenneth J. Rosenblum.
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