Facts

Fidelity National Title Insurance Company filed an interpleader action concerning $500,000 in escrow. Claimant Leona Horowitz moved to compel arbitration on the Fidelity $500,000 dispute and other claims against respondents for fraudulent or voidable transfer, breach of fiduciary duty and aiding and abetting, financial elder abuse, breach of contract and unfair competition. The matter was ordered to arbitration before the American Arbitration Association.

Claimant had won a financial elder abuse judgment against certain respondents following a bench trial in a different case. That judgment was for over $4.3 million net against various defendants (after giving credits of $4.7 million in the final decision for amounts paid after the litigation was filed including a $500,000 good faith settlement obtained from respondent's accountant) on direct claims and additional amounts in excess of $4 million on derivative claims and obtained attorney's fees and awards in excess of $1.5 million.

During trial and thereafter, claimant alleged that respondents engaged in transfers of money out of judgments debtors to render judgment a nullity. Following unsuccessful collection efforts, claimant commenced contractual arbitration.

CLAIMANT'S CONTENTIONS: Claimant alleged that respondents breached a contract, committed fraudulent or voidable transfers of over $15 million, breached their fiduciary duty, aided and abetted breach of fiduciary duty, and engaged in financial elder abuse based on their disposing of assets and putting them beyond reach of claimant to prevent her from recovering.

RESPONDENT'S CONTENTIONS: Respondent denied the claims, admitting that they made the transfers but contending that they were justified in doing what they did, as the transfers were made in payment of antecedent debt.

Result

The AAA three arbitrator panel found in favor of claimant for $4,440,563 on the breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and fraudulent transfer claims. It further found that claimant could only recover once, such that this sum would be reduced by collection of any sums awarded in the other case. Both sides requested attorneys fees and neither side was awarded them.

Other Information

Respondents have filed petitions to vacate the award.

Length

12 days