Facts

Morgan Stanley Smith Barney LLC and Morgan Stanley Smith Barney FA Notes Holdings LLC filed a complaint against Philip Bugay, concerning promissory notes Buyay executed while he worked with Morgan Stanley. Bugay, in turn, filed a counterclaim against Morgan Stanley.

CLAIMANTS' CONTENTIONS:
Claimants asserted causes of action for breach of promissory note dated Jan. 15, 2009 and breach of promissory note dated Jan. 15, 2010.

RESPONDENT'S CONTENTIONS:
Respondent denied the allegations and asserted various affirmative defenses.

In respondent's counterclaim, he asserted causes of action for breach of covenant of good faith and fair dealing.

Damages

Morgan Stanley sought to recover the principal amount of $6,555, plus interest on the first note and $82,686, plus interest on the second note. Bugay, meanwhile, sought no less than $100,000 in damages on his counterclaim.

Result

The parties eventually reached a confidential settlement. The FINRA Panel subsequently entered an award of $124,007 plus interest against Bugay. Among other things, Bugay's counterclaim was also dismissed with prejudice.

Other Information

ARBITRATORS: Steven J. Feldman, Yvonne B. Burke, Marvin B. Karelitz.