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Securities
Breach of Fiduciary Duty
Breach of Contract

King Credit Shelter Trust, Edwin King, Trustee Bypass Trust of the Allderdice 1990 Living Trust DTD 9/5/01, Charlene Allderdice Trustee

Published: Mar. 26, 2011 | Result Date: Feb. 18, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-04009 Arbitration –  Expungement Granted

Court

FINRA


Attorneys

Claimant

Jonathan W. Evans
(Jonathan W. Evans & Associates)


Respondent

Kathleen S. Adams


Facts

King Credit Shelter Trust and Bypass Trust of the Allderdice 1990 Living Trust DTD 9/5/01 (collectively, the Trusts) entered into arbitration with UBS Financial Services Inc. regarding investment in Fannie Mae Preferred Stock.

Contentions

CLAIMANTS' CONTENTIONS:
The Trusts alleged breach of fiduciary duty, breach of contract, negligent misrepresentation, failure to supervise, and violation of securities law.

RESPONDENT'S CONTENTIONS:
UBS denied the allegations, asserting various affirmative defenses.

Damages

The Trusts sought compensatory damages of $125,000.

Result

The expungement recommendation was granted by the majority of the panel (2-1).

Other Information

ARBITRATORS: Kenneth E. Owen, Thomas W. Gregory, Karen A. Lockwood.


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