Facts

Tanya Coffeen filed an arbitration claim against D.A. Davidson & Co. and Raymond, James & Associates Inc. in relation to Coffeen's investments in Linn Energy LLC and BreitBurn Energy Partners LP.

CLAIMANT'S CONTENTIONS: Coffeen alleged that Davidson and its broker violated Montana Code Ann. Section 30-10-307. Coffeen claimed that both respondents made unsuitable recommendations, breached their duties of fair dealing, failed to observe high standards of commercial honor, and failed to reasonably supervise their brokers. Coffeen alleged that Raymond James violated the Florida Securities and Investor Protection Act. As to Davidson, Coffeen requested compensatory damages in the sum of $31,500, interest at 10 percent, attorney fees totaling $29,629.06, filing fees totaling $378, and expert witness fees totaling $2,480.63. As to Raymond James, Coffeen requested compensatory damages in the sum of $18,500, interest at 6.57 percent, attorney fees totaling $17,401.19, filing fees totaling $222, and expert witness fees totaling $1,456.87.

RESPONDENTS' CONTENTIONS: Respondents denied the allegations and requested Coffeen's claims be dismissed.

Result

The arbitrator concluded that making an award for purely equitable reasons or by converting FINRA rules that did not provide a private right of action into a private right merely because Coffeen was in arbitration would exceed the arbitrator's powers, so the arbitrator denied Coffeen's request for relief against Davidson. As to Raymond James, however, the arbitrator granted Coffeen's claim due to violation of Florida's securities statute. The arbitrator denied Coffeen's claim based on violation of FINRA rules as it did as to Davidson. The arbitrator found Raymond James was liable for $26,634 in damages, $30,000 in attorney fees, $3,937.50 in expert witness fees, reimbursement of Coffeen's $600 filing fee, $8,160.88 in statutory prejudgment interest, and post-judgment interest.

Other Information

ARBITRATOR: John Burritt McArthur.