Facts

Jean Robinson, claimant, sued Wedbush Morgan Securities Inc., Torrey Pines Securities Inc., and Christopher Olson, respondents. Claimant's causes of action related to the recommendation and purchase of unsuitable securities. According to claimant, Olson, while working at Torrey Pines and Wedbush, engaged in unauthorized trading of claimant's account, such as trading on margin and investing in stocks that were unsuitable for claimant due to her age and investment objectives. Claimant stated that despite these actions by Olson, Torrey Pines and Wedbush did not take any action to protect her account by following the rules imposed by NASD or SEC.

CLAIMANT'S CONTENTIONS:
Claimant alleged the following causes of action: unauthorized trading; suitability; churning; breach of fiduciary duty; and failure to supervise.

RESPONDENTS' CONTENTIONS:
Respondents denied claimant's claims and asserted the following affirmative defenses: claimant failed to state a claim upon which relief could be granted; the statute of limitations on each cause of action had expired; claimant's own acts were the proximate cause of the alleged harm; any damages were caused by actions of others excluding respondents; claimant did not mitigate her damages; her claims were barred by the doctrines of waiver, laches, and estoppel; claimant authorized each transaction; respondent acted in good faith; and claimant's claims were barred by the assumption of risk.

Damages

With respect to Torrey Pines and Olson, claimant requested $71,718.99 in actual/compensatory damages and $215,156.97 in exemplary/punitive damages. In regards to Wedbush and Olson, claimant requested $15,998.85 in actual/compensatory damages and $47,996.55 in exemplary/punitive damages.

Result

The Panel determined that claimant's claims were denied and dismissed with prejudice. The parties had to bear their own costs and expenses, and any relief not specifically enumerated was denied with prejudice.

Other Information

Respondent Wedbush did not file a properly executed Uniform Submission Agreement but was required to submit to arbitration pursuant to the Code. Having answered the claim, and appeared at the hearing, Wedbush was bound by the determination of the Panel on all issues submitted. On July 12, 2007, the Panel granted claimant's request to file an Amended or Supplemental State of Claim. ARBITRATORS: James P. O'Donnell, public arbitrator, presiding chair; Herbert S. Bratt, public arbitrator; Susan H. Schleisner, non-public arbitrator.