Facts

Claimants alleged fraud, conversion, breach of fiduciary duty, negligent hiring, supervision and retention of an unfit employee, and breach of contract. The dispute involved, but was not limited to, the purchase and /or sale of Great Circle Family Foods LLC stock.

Unless specifically admitted in its Answers, Respondent denied the allegations made in the Statement of Claim and asserted affirmative defenses.

In its Third-Party Claim, Respondent/ Third-Party Claimant A.G. Edwards & Sons Inc. alleged breach of contract, contractual and equitable indemnity, and violation of California Labor Code Section 2865.

Third-Party Respondent Wendy Feldman Purner did not file a Statement of Answer to Respondent / Third-Party Claimant A.G. Edwards & Sons Inc.'s Third-Party Claim.

Damages

Claimants requested unspecified general and compensatory damages, unspecified punitive damages and costs, including attorney fees, for the first cause of action for fraud, third cause of action for breach of fiduciary duty, fourth cause of action for negligent hiring, supervision, and retention of an unfit employee, and fifth cause of action for breach of contract. For the second cause of action for conversion, Claimants requested the value of the property converted, interest at the legal rate and unspecified damages for the proximate and foreseeable loss resulting from Respondents' conversion. In its Third-party Claim, Respondent / Third-Claimant A.G. Edwards & Sons Inc. requested indemnification, as well as costs and attorney fees.

Result

The Panel decided in full and final resolution of the issues submitted as follows: 1) Third-Party Respondent Wendy Feldman Purner was liable to and shall pay Respondent / Third-Party Claimant A.G. Edwards & Sons Inc. $2,050,000.00 in compensatory damages. 2) Third-Party Respondent Wendy Feldman Purner was liable to and shall pay Respondent / Third-Party Claimant A.G. Edwards & Sons Inc. $258,589.26 in attorneys fees and costs, pursuant to the Stipulation for Entry of Final Judgment Case No. 01 CV 1769 J. 3) Except as otherwise provided, the parties to bear their respective costs, including attorney fees. 4) All other relief requested and not expressly granted was denied.

Other Information

Respondent Sutro & Co. Inc. n/k/a RBC Dain Rauscher Inc. did not file with NASD Dispute Resolution a properly executed Uniform Submission Agreement but was required to submit to arbitration pursuant to the Code and, having answered the claim, was bound by the determination of the Panel on all issues submitted. Similarly, Third-Party Respondent Wendy Feldman Purner did not file with NASD Dispute Resolution a properly executed Uniform Submission Agreement but was required to submit to arbitration pursuant to the Code and was bound by the determination of the Panel on all issues submitted. Having reviewed the file and representations made on behalf of Respondent / Third-Party Claimant A.G. Edwards & Sons Inc., it was determined that Third-Party Respondent Wendy Feldman Purner was properly served with the Statement of Claim and Third-Party Claim and received due notice of the hearing. On January 28, 2004 NASD Dispute Resolution received notice that Claimants settled their claims with Respondent / Third-Party Claimant Sutro & Co. Inc. n/k/a/ RBC Dain Rauscher Inc. On April 26, 2004 NASD Dispute Resolution received notice that Claimants settled their claims with Respondent / Third-Party Claimant A.G. Edwards & Sons Inc.