Ronald Eckerman and Carol J. Eckerman, personally and on behalf of the Carol J. Eckerman Trust dated November 10, 1999 v. Sll Investments Inc., Patricia E. Monat, Monat Wealth Management, Monat Financial Services and National Planning Holdings Inc.
Published: Jul. 4, 2014 | Result Date: Jun. 13, 2014 | Filing Date: Jan. 1, 1900 |Case number: 12-04043 Arbitration – Expungement
Facts
Ronald Eckerman and Carol Eckerman, personally, and on behalf of the Carol J. Eckerman Trust dated November 10, 1999 filed a complaint against Sll Investments Inc., Patricia Monat, Monat Wealth Management, Monat Financial Services and National Planning Holdings Inc., in connection with the recommendation and purchase of Direct INvest-246 Omni Way sponsored TIC investment as part of an IRC Section 1031 Exchange. Respondents, with the exception of National, filed a counter-claim against claimants.
Contentions
CLAIMANTS' CONTENTIONS:
Claimants contended that respondents' recommendation to invest in the subject investment was inappropriate for their investment objectives. They asserted causes of action for breach of fiduciary duty and constructive fraud, fraud and deceit, unfair sales practices, breach of contract, negligence and negligent misrepresentation, and declaratory relief.
RESPONDENT/CROSS-CLAIMANTS' CONTENTIONS:
Respondents denied claimants' allegations, and asserted various affirmative defenses. They asserted causes of action for breach of contract, express indemnity, and equitable indemnity. All causes of action related to claimants' allegations that they breached their duties or made material representations in executing the investment.
Damages
Claimants requested $1,272,348 in compensatory damages and unspecified amounts for exemplary/punitive damages, interest, attorney fees and costs, and other relief. Respondents mirrored claimants' requested relief.
Result
The FINRA Panel lacked jurisdiction over National, which was not a FINRA Member Firm. On or about Feb. 6, 2014, the parties reached a settlement in principle. Monat subsequently filed a motion for expungement. Claimants concurred in Monat's request for expungement. As such, the Panel recommended the expungement of Monat's records. In light of the parties' settlement, terms of which were not disclosed, the Panel dismissed claimants' claims and respondents' counterclaims, and denied the requested relief.
Other Information
ARBITRATORS: Bruce Brown, Alain Frecon and Evonne A. Hurst
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