Facts

Claimants Lim Cheng Low and Lee Fang Ng sued respondents Pyramid Financial Corp. (PFC) and John Hsu alleging breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, failure to supervise, and respondeat superior relating to purchase of stocks and options.

CLAIMANTS' CONTENTIONS:
Claimants alleged that Pyramid Financial Corp. and John Hsu engaged in unauthorized and excessive trading of call options on margin.

Damages

Claimants requested compensatory damages up to $500,000 and punitive damages up to $500,000, plus interest, attorneys' fees and costs.

Result

The panel found Pyramid Financial Corp. and John Hsu jointly and severally liable, ordering them to pay Low $216,340 in compensatory damages plus 10% interest, and $72,101 in punitive damages pursuant to California Civil Code Section 3294. The panel found Pyramid Financial Corp. and John Hsu jointly and severally liable and ordered them to pay Ng $37,654 in compensatory damages plus 10% interest, and $12,551 in punitive damages pursuant to Section 3294. All claims against Fengjui Sun Hsu were denied.

Other Information

Respondent Fengjui Sun Hsu is in pro per. ARBITRATORS: Jeffrey M. Allen, James S. Martin, Homer L. Davis III.