Facts

Plaintiffs Douglas Beal, Marjorie Gillman, Mae Holloway, Joseph Lujan, Marylou Oliver, Barbara Padillia, Lori Palmquist, and Linda Rapella filed suit Royal Alliance Associates Inc., Richard A. McCollam, Kathleen J. Tarr, and Brent C. Wolf.

Brent Wolf was dismissed as a party before arbitration. Richard McCollam and Kathleen Tarr were dismissed as parties without prejudice before trial, and appeared as witnesses.

CLAIMANTS' CONTENTIONS:
Claimants contended that respondents violated FINRA rules regarding suitability of investments and supervision of brokers, as well as California in putting between 25-50 percent of claimants' retirement accounts in non-traded REITS, and the remainder in variable annuities.

Claimants asserted causes of action for fraud, fraud in the inducement, breach of fiduciary duty, false representations, failure to supervise, negligent misrepresentation, and recommendation of unsuitable securities and overconcentration of assets.

RESPONDENTS' CONTENTIONS:
Respondents denied the allegations and asserted various affirmative defenses.

Result

The arbitration panel found Royal Alliance liable to claimants for compensatory damages of $113,000 for Douglas Beal, $92,000 for Marjorie Gillman, $151,000 for Mae Holloway, $113,000 for Joseph Lujan, $30,000 for Marylou Oliver, $111,000 for Barbara Padilla, $199,000 for Lori Palmquist, and $296,000 for Linda Rapella.

Other Information

ARBITRATORS: Isidoro Berkman, Peter H. Daly, Mario Singleton.