Facts

Claimant Wan Yu Luo filed suit in connection with her financial advisor, Li-Lin Hsu. Respondents filed a third party claim against Hsu, asserting causes of action for equitable indemnity and implied indemnity.

CLAIMANT'S CONTENTIONS: Claimant contended that respondents failed to notify her that Hsu, her financial advisor, was on suspension because of repeated violations of company policy and applicable law. She also claimed that Hsu misappropriated her funds.

Claimant asserted causes of action for breach of contract, breach of fiduciary duty, breach of the covenant of good faith and fair dealing, intentional misrepresentation/concealment, negligent misrepresentation/concealment, and negligent retention, training and supervision.

RESPONDENTS' CONTENTIONS: Respondents denied claimants' allegations and asserted various affirmative defenses. They also argued that Hsu concealed her actions so that respondents could not have reasonably discovered them.

Damages

Claimant sought $805,370 in damages.

Result

The arbitration panel found that Hsu was liable to respondents in the amount of $675,000.

Other Information

ARBITRATORS: Kirtley M. Thiesmeyer, presiding chairperson; Richard M. Norman; Lorraine Woodwark.