Facts

Claimant Igor Zey was an independent contractor and registered representative of respondent AXA Advisors, LLC (AXA). Zey was permitted to resign his independent contractor agreement in September 2007. In accordance with FINRA rules and instructions, AXA Advisors filed a Form U5 disclosing the circumstances surrounding Zey's resignation.

Zey initiated a FINRA arbitration against AXA Advisors asserting defamation, libel, breach of contract, tortuous interference with prospective economic advantage, and breach of the covenant of good faith and fair dealing, and requesting expungement of the publicly available U5 statement and seeking compensatory and punitive damages.

CLAIMANT'S CONTENTIONS:
Zey claimed that AXA set forth false information on his FINRA Form U5 and that AXA refused to pay him vested renewal commissions and consideration.

RESPONDENT'S CONTENTIONS:
AXA claimed that all of Zey's assertions were without merit. AXA contended that the Form U5 filed with FINRA was truthful and accurately disclosed the circumstances surrounding Zey's resignation, that all if its statements concerning Zey were truthful and accurate, that it did not breach any contract or interfere with Zey's economic advantage, and that in any event the Form U5 was absolutely protected from the action because it was constitutionally protected conduct. AXA requested that the Statement of Claim be dismissed.

Damages

Zey requested compensatory damages of $779,676, punitive damages, prejudgment interest, attorney fees, an assessment of all forum fees, and an order expunging a 2007 Form U5 filed by AXA. AXA claimed dismissal of all claims, costs, and attorney fees.

Result

The panel found that AXA was liable for $107,762 in compensatory damages. Zey's request for expungement was expressly denied and AXA's motion to strike the Statement of Claim was moot.

Other Information

ARBITRATORS: Laurent C. Vonderweidt, James P. Murphy, Susan Gans-Smith.