Facts

Claimants Arnold and Emma Jonas brought a claim against respondents WM Financial Services Inc. (WM), Robert Fogarty, and AIG Annuity Insurance Co. (AIG), relating to the claimants investment in an AIG annuity product named "WM Income Builder."

The panel granted AIG's motion to be dismissed from the case.

CLAIMANTS' CONTENTIONS:
The claimants alleged intentional or negligent misrepresentation, breach of contract, breach of fiduciary duty, and breach of the duty of good faith and fair dealing.

RESPONDENTS' CONTENTIONS:
The respondents denied any wrongdoing.

Damages

The claimants sought the difference of the rate of return paid by AIG and the legal rate of seven percent pursuant to California law. In addition, they sought penalties for early withdrawal of their funds, taxes paid or to be paid due to withdrawals of funds from annuities, attorney fees, costs, and punitive damages. At the close of the hearing, the claimants asked that the annuity contracts be rescinded, along with interest at seven or 10 percent interest from the date of deposit of the checks, and punitive damages.

Result

The panel found in favor of WM and Fogarty.

Other Information

ARBITRATORS: Martin Mandel, Alan Stamm, Paul F. Meyer.