Facts

Claimants Anne Wauters, Camilla Rogers, and the Suzanne Rogers Special Needs Trust filed a claim against respondents White Pacific Securities Inc. (WPS), Patrick Nelson, Eric Groth, M. Sean McCandless, Robert Angle, Peilee Liu, and Arthur Quintero. The claims stemmed from the acquisition of real estate investments in Southfork & Co., Orchard Hills, which was a division of Southfork, DBSI, Woodlark Capital, and Evergreen REIT.

CLAIMANTS' CONTENTIONS:
Claimants alleged misrepresentations of material facts and/or omissions of material facts, breach of fiduciary duty, negligence, unsuitable investments, financial abuse, federal securities law violations, and failure to supervise according to respondeat superior.

RESPONDENTS' CONTENTIONS:
The WPS respondents and respondent Groth rejected the allegations of misconduct.

Damages

Claimants sought rescission, restitution, $606,400 in compensatory damages, interest, punitive or exemplary damages, costs, attorney fees, and treble damages. The WPS respondents sought dismissal of the claims against Orchard Hills, severance or dismissal of the claims against McCandless and Groth, a more definite statement of facts, dismissal of the claimants' claims with prejudice, and costs.

Result

The arbitration panel dismissed the claims against respondent Liu. In addition, the panel ordered WPS, Nelson, Angle, and Quintero to pay Wauters $130,000, along with $200,000 to Rogers, $680,000 to the Suzanne Rogers Special Needs Trust, $55,800 in attorney fees, $7,127 in costs, $1,500 in legal retainer fees, $37,482 in expert witness fees, and $600 as reimbursement of the non-refundable portion of the claimants' filing fees.

Other Information

ARBITRATORS: Fred D. Butler, J.D., Mary Margaret Bush, Paul J. Dubow. Respondent M. Sean McCandless, Pro se, Sacramento. Respondent Eric W. Groth, pro se, Sacramento.