Facts

Wells Fargo Advisors LLC, formerly known as Wachovia Securities LLC, filed an arbitration claim against Christopher Bleuher in relation to promissory notes executed by him as part of his employment with Wells Fargo on March 20, 2009 and June 1, 2010. Bleuher also counter-claimed.

CLAIMANT'S CONTENTIONS:
Claimant alleged that respondent breached the promissory notes, and breached a free-fronting agreement. Wells Faro denied Bleuher's counterclaims.

RESPONDENT'S CONTENTIONS:
Bleuher denied the allegations and asserted defenses against them. In his counter-claim, Bleuher asserted constructive termination, unconscionability, breach of contract, breach of covenant of good faith and fair dealing, California Labor Code violations, California Business and Professions Code Section 17200 violations, intentional interference with prospective business advantage, unjust enrichment, quantum meruit, accounting and equitable relief.

Damages

Claimant sought $1,037,375 on the first note, $200,019 on the second note, $90,446 on the fee-fronting agreement, and interest on each. Bleuher sought $1.5 million in actual damages. In response to the counterclaim, Wells Fargo sought $1,327,839.

Result

The parties reached an agreement, which the arbitration panel entered. Wells Fargo was granted $1,037,375, plus interest, on the first note, $200,019, plus interest, on the second note, $90,446 for commissions it advanced but respondent did not earn, $6,000 in filing fees, and $32,614 in attorney fees and expenses.

Other Information

The parties then entered a confidential settlement. According to respondent, the stipulated award merely secures payment in the event of default, and in no way reflects the amount the parties actually settled for. ARBITRATORS: William E. Winfield, Edward J. Costello, Jr. and Kattiarine Reed Coleman.