Facts

Daniel Cohen and the Daniel L. Cohen 1980 Irrevocable Trust filed a complaint against Fidelity Brokerage Services LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., and National Financial Services LLC, in connection with claimants' investments into the Cohen Family Partnership and other unspecified common stock and bonds.

COMPLAINANTS' CONTENTIONS:
Claimants asserted claims for negligence, breach of fiduciary duty, fraud, breach of written contract, and breach of oral contract.

RESPONDENTS' CONTENTIONS:
Respondents denied complainants' allegations, and asserted various affirmative defenses. Respondents later filed separate motions to dismiss the action, arguing that complainants' claims were ineligible under Rule 12206 of the Code of Arbitration Procedure.

Damages

Complainants sought compensatory damages, rescission of all contracts, punitive damages, emotional distress damages, fees and costs, and other relief, relating to their investments into the Cohen Family Partnership and other unspecified common stock and bonds.

Result

The FINRA Panel denied respondents' motions to dismiss. Claimants decided to dismiss National from the action with prejudice. Claimants also dismissed the cause of action based on an alleged breach of written contract against Fidelity only. At the conclusion of complainants' case in chief, Fidelity and Merrill made separate oral motions to dismiss under Rule 12504(b) of the Code of Arbitration Procedure. Ultimately, however, the panel granted the remaining respondents' motion to dismiss on the ground that complainants failed to produce any credible evidence to support any of their substantive allegations. Complainants filed a motion for reconsideration, which was opposed by respondents and was denied by the panel. Accordingly, the panel dismissed all claims against Fidelity and Merrill Lynch, in its entirety.

Other Information

ARBITRATORS: Kenneth E. Owen, W. Alex King and Peggy Jane Fisher