Facts

William F. Garland filed a complaint against SDR Capital Management Inc., Charles Schwab & Co. Inc., Arthur C. Rutzen Jr., Dale B. Low, Benjamin D. Wilson, Eric T. Salz, Samuel V. Berger. The allegations involved activity in Garland's Schwab brokerage account from 2000 through 2004, and investments in BEA Systems and Siebel Systems. The dispute was submitted to arbitration.

CLAIMANT'S CONTENTIONS:
The claimant alleged breach of contract, violation of just and equitable principles of trade, unsuitability omissions and misrepresentations of material fact, violation of margin requirements, failure to supervise, breach of fiduciary duty, fraud, and violation of California Corporations Code Sections 25401 and 25504.1.

RESPONDENTS' CONTENTIONS:
Respondents SDR, Rutzen, Low, Wilson, Salz, and Berger denied the allegations of wrongdoing and asserted various affirmative defenses. Respondent Schwab also denied the allegations and asserted that it owed no duties to claimant.

Damages

The claimant requested damages, attorney fees, costs, punitive damages, treble damages, and such further action deemed proper. The respondents requested dismissal of claimant's claim and costs.

Result

The claimant dismissed respondents Salz and Berger with prejudice. Respondent Rutzen passed away and was removed as a party. The parties reached a stipulated agreement whereby all claimant's claims were dismissed, with prejudice. The arbitration panel recommended expungement of all reference to this matter from respondent Salz and respondent Berger's CRD records. The parties each bore their respective costs.

Other Information

ARBITRATORS: Sterling N. Frost, Chairman, Public Arbitrator; Peter Kessel, Public Arbitrator; Bradley C. Mitchell, Non-Public Arbitrator.