Albert Bayley Hoeflich, Edward C. Hoeflich, Eric Hoeflich, REB I LLC v. Sigma Financial Corp., Joral Townsend Schmalle
Published: Jul. 4, 2014 | Result Date: Jun. 17, 2014 | Filing Date: Jan. 1, 1900 |Case number: 13-03027 Arbitration – Respondent
Facts
Albert Hoeflich and others filed for arbitration against Sigma Financial Corp. and Joral Schamelle.
Contentions
CLAIMANTS' CONTENTIONS:
Hoeflich asserted causes of action for unsuitability, breach of fiduciary duty, negligence, failure to do due diligence, negligent misrepresentation, breach of contract, material omissions and misrepresentations in connection with the sale of securities, fraud based on concealment, failure to supervise, negligent supervision, and violations of federal statutes. The causes of action related to various tenant in common real estate investments. However, according to claimants, the Hoeflichs were never given an opportunity to present a case.
RESPONDENTS' CONTENTIONS:
The respondents denied Hoeflich's allegations and asserted various affirmative defenses. Respondents filed a motion to dismiss arguing that the Hoeflich claims were not eligible for arbitration, as they had purchased the TIC's at issue more than 6 years prior to filing the claim.
Damages
Hoeflich requested $1,520,000 in compensatory damages.
Result
The panel dismissed Hoeflich's claims. The claims were dismissed solely on eligibility grounds, as there was no arbitration or introduction of any testimony.
Other Information
ARBITRATORS: Sam Antar, Susan Sangillo Bellifemine and Sirena Terr
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