Facts

Claimant Teresa Valdez, as an individual and owner of the Teresa Valdez IRA, filed an arbitration claim against Respondent E*TRADE Securities LLC and asserted causes of action for breach of contract; negligence; negligent failure to supervise; and breach of fiduciary duty. Claimant asserted the aforementioned causes of action for related various unspecified securities.

CLAIMANT'S CONTENTIONS: Claimant contended Respondent E*TRADE Securities LLC's predecessor-in-interest breached the contract between Claimant and Respondent, engaged in negligence and negligently failed to supervise it's employees with regard to Claimant's IRA plan and related various unspecified securities.

RESPONDENT'S CONTENTIONS: Respondent denied Claimant's allegations, and contended Claimant had actual knowledge of the occurrences that led to her claims, such as Claimant's use of an identical form of IRA Distribution Request to properly withdrawn IRA funds. Respondent further filed a motion to dismiss Claimant's claims in their entirety, and asserted various affirmative defenses.

Result

The panel of arbitrators granted Respondent's motion to dismiss on the grounds that Claimant had actual and/or constructive knowledge of the events that led to her claims. The panel also dismissed the claims because Claimant's assertions for breach of contract, negligence, and breach of fiduciary duty were untimely filed more than six years after Claimant had actual and/or constructive knowledge of the events that gave rise to the claims.

Other Information

ARBITRATORS: Alan Stamm, presiding chairperson, Susan B. Gans-Smith, Daniel A. Seiver.