Richard A. Hingley, individually and as trustee of the Richard A. Hingley 1989 Trust and on behalf of the Richard A. Hingley IRA, and as successor trustee of the Louise P. Shetley Trust UAD 9/13/95 v. Crown Capital Securities L.P., Eric William Kuchel, Harold Glen Kuchel
Published: Sep. 13, 2014 | Result Date: Aug. 22, 2014 | Filing Date: Jan. 1, 1900 |Case number: 12-02885 Arbitration – $277,468
Court
FINRA
Attorneys
Claimant
Respondent
Brandon S. Reif
(Reif Law Group PC)
Craig R. Bockman
(Jones Bell)
Facts
Richard Hingley, individually and as trustee of the Richard A. Hingley 1989 Trust and on behalf of the Richard A. Hingley IRA, and as successor trustee of the Louise P. Shetley Trust UAD 9/13/95 filed a complaint against Crown Capital Securities L.P., Eric Kuchel, and Harold Kuchel, related to claimants' investments in Grubb & Ellis Healthcare REIT, G-REIT, USA Self Storage REIT, CNL Senior Housing REIT, NNN Value Fund REIT, Inland Western and Inland American REITs.
Contentions
CLAIMANTS' CONTENTIONS:
Claimants asserted causes of action for unsuitability, misrepresentation and omission of material fact, breach of fiduciary duty, failure to supervise, and elder abuse.
RESPONDENTS' CONTENTIONS:
Respondents denied claimants' allegations, and asserted various affirmative defenses. Respondents also sought the expungement of Eric Kuchel and Harold Kuchel's records.
Damages
Claimants estimated their loss in excess of $2 million. Plaintiffs requested recovery of their losses, disgorgement of respondents' revenue, damages for lost opportunity, pre- and post-judgment interest, treble damages for elder abuse, costs and fees, and other relief.
Result
In November 2013, claimants dismissed all claims against Harold Kuchel with prejudice, and all claims against Eric Kuchel without prejudice. In July 2014, claimants dismissed the claims of Louise P. Shetley Trust with prejudice. Later, the FINRA Panel granted Crown Capital and Eric Kuchel's motion to dismiss with respect to the remaining claimants' claim for elder abuse, but denied it with respect to the remaining claims. Ultimately, the Panel found Crown Capital and Eric Kuchel jointly and severally liable to remaining claimants in the amount of $277,468 in compensatory damages. It then denied Eric Kuchel's request for expungement. The Panel likewise denied Harold Kuchel's request for expungement due to his inaction. The Panel denied any and all relief not specifically addressed, including claimants' request for treble damages.
Other Information
ARBITRATORS: Peter H. Daly, Michelle Judy Brant and Michael Lancaster Garcia
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