Craig Reager v. First Union Securities nka Wachovia Securities, LLC
Published: Jan. 19, 2005 | Result Date: Oct. 8, 2004 | Filing Date: Jan. 1, 1900 |Case number: BC266902 Arbitration – $503,000
Court
Case Not Filed
Attorneys
Plaintiff
Stephen M. Harris
(Law Offices of Stephen M. Harris PC)
Defendant
Sheryl Lyn Skibbe
(Seyfarth Shaw LLP)
Facts
According to the Claimant: The claimant was a securities broker employed by First Union Securities. In September 2000, he began to focus his marketing activities on 529 College Savings Programs. The plaintiff contended that he was encouraged to do so by his supervisor. On Nov. 19, 2001, he was placed on a 90-day probation based on insufficient production. He protested and claimed that the probation contradicted representations and assurances that he could focus on the 529 Programs and not worry about immediate revenue production. His supervisor then demanded on Nov. 27 that the claimant sign a promissory note for $24,000 within 48 hours or be fired. The claimant was fired on Nov. 29 when he refused to sign the promissory note. The claimant claimed that he was fraudulently induced to focus on the 529 programs and that he was wrongfully terminated in violation of public policy for refusal to sign the note. He argued that the promissory note would have required the claimant to repay wages; the sums in the promissory note were advances against commissions not wages; the advances were only repayable out of future commissions not out of all sums to be paid in the future, as the promissory note provided. The claimant also maintained that the note illegally set off alleged debts from wages owed; that the note contained an unlawful confession of judgment clause; the note was an unlawful wage assignment and that it constituted an unlawful restraint on the claimant to pursue his profession. The respondents denied all wrongdoing.
Settlement Discussions
The defense offered $100,000 which was susequently reduced to $25,000 by a statutory offer shortly before the arbitration. The claimant served a statutory offer to compromise for $442,700 prior to arbitration and demanded to settle upon the close of evidence for $500,000.
Damages
The claimant was awarded a total of $503,000 in damages.
Injuries
The claimant claimed emotional distress, loss of income, loss of commission income and punitive damages.
Result
The claimant was awarded $503,000 at a three-man panel of Laurie J. Butler, Herbert Murez and Montgomery Griffen of National Association of Securities Dealers.
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