Facts

The claimant alleged that the respondent committed breach of fiduciary duty, fraudulent concealment, willful misconduct, unjust enrichment/constructive trust, breach of partnership agreement, accounting, negligence, interference with prospective business advantage, as well as civil conspiracy.

The claimant contended that she and the respondents created a partnership geared to change American Express Financial Advisors Inc. 401(k) retirement accounts owned by specific workers whose employers' business was going out of business to IRA accounts, which were to be held by American Express Financial Advisors Inc.

The claimant contended that respondents withheld from her the chance to serve as Team Lead and conspired to prevent her from obtaining her share of the partnership business, revenue, income, and assets.

The respondents denied allegations not specifically admitted in the answer and asserted various defenses.

Damages

The claimant demanded $50,000 in compensatory damages, an unknown amount of consequential damages, $50,000 for punitive damages, an order declaring that the respondents are required to hold the sum of money claimant was owed in trust, along with the sum that respondents were unjustly enriched. The claimant further demanded an order to dissolve the purported partnership and sought an accounting of the partnership's business from its start until judgment was entered, a settlement of the account between the parties, and a judgment favoring claimant for reimbursement of owed monies, as well as costs and attorney fees. The respondents asked for the claim to be dismissed completely, and for a finding of fact on claims of forgery, costs, and attorney fees.

Result

American Express Financial Advisors Inc. (n/k/a Ameriprise Financial Services) was determined to be at fault and was required to compensate the claimant in the amount of $15,000 for compensatory damages. Further, the respondent was found liable for attorney fees totaling $55,000. The claims against Windawi and Maxwell were dismissed; claimant was required to compensate Windawi for $25,000 in attorney fees and Maxwell for $10,000 in attorney fees. In addition, all requests for punitive damages were rejected.

Other Information

On July 12, 2007, the claimant filed a motion to dismiss the arbitration proceedings. On July 16, the respondents filed the same motion. On July 18, the claimant moved to withdraw the previous request and the next day the respondents filed a motion to dismiss the entire claim. On July 20, the claimant responded to this motion and later filed additional submissions. On October 12, at a pre-hearing conference, the panel heard oral arguments in relation to the motion to dismiss. Subsequently, the panel decided to issue an order rejecting the motion to dismiss. No credible evidence was discovered in testimony to verify a charge of unlawful conduct by respondents Louis Windawi and Clinton Maxwell, as well as claims of willful misconduct, forgery, and other regulatory violations. ARBITRATORS: Elizabeth A. Copley, Robert B. Moran, James M. Goldberg.