Facts

Greg and Karla Biddle filed an arbitration claim against Wells Fargo Clearing Services in relation to a second line of credit that was opened.

CLAIMANTS' CONTENTIONS: Claimants claimed that respondent opened a second credit line with more money than they had requested, and when the market entered a downturn respondent terminated their credit line and claimants brokerage accounts were liquidated in order to pay down the credit line, which in turn wiped out their life savings.

Claimants asserted causes of action for fraud/unsuitability, deceptive practices, breach of fiduciary duty, negligence, and unjust enrichment.

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

Damages

Claimants sought compensatory damages of $100,000, pre- and post-judgment interest at 10% per annum, punitive damages, and reasonable attorney fees.

Result

The arbitrator determined that claimants' claims should be dismissed pursuant to Code Rule 12206.