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Securities
Negligence
Misrepresentation

D Vollstedt & S Vollstedt TTEE, Steve or Deborah Vollstedt Tru U/A DTD 02/12/2004, Deborah Vollstedt and Steve A. Vollstedt v. Charies Schwab & Co. Inc.

Published: Oct. 1, 2011 | Result Date: Jul. 12, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 09-06446 Arbitration –  $323,122

Court

FINRA


Attorneys

Claimant

Timothy J. Dennin

Thomas F. Shine


Respondent

Stephen Young
(Keesal Young & Logan)

Cara L. Finan


Facts

D Vollstedt & Vollstedt TEE, Steve or Deboarah Vollstedt Trust, Deborah and Steve Vollstedt (collectively, Vollstedt) entered into arbitration with Charles Schwab & Co. Inc., regarding investments in the Schwab YieldPlus Fund.

Contentions

CLAIMANT'S CONTENTIONS:
Vollstedt alleged negligence, negligent misrepresentation, breach of fiduciary duty, breach of contract, fraudulent inducement, fraud, violations of securities law, and violations of New Mexico state securities laws.

RESPONDENT'S CONTENTIONS:
Charles Schwab denied the allegations, asserting various affirmative defenses.

Damages

Vollstedt sought damages of $103,800 as well as punitive damages, interest, costs, and attorney fees. Vollstedt sought rescissionary damages under New Mexico state securities laws as well.

Result

The arbitration panel awarded Vollstedt $151,715 plus $27,264 in costs, $144,141 in attorney fees under New Mexico state securities laws, and interest.

Other Information

ARBITRATORS: Katherine M. Harmeyer, James J. Ashe, James W. Warren. Respondent has filed a petition in federal court in New Mexico to vacate the award.


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