Facts

Claimant Piper Jaffray & Co. filed a claim against its former employee, Lawrence Kipp. Respondent then filed a counter-claim against claimant. The parties submitted their dispute to NASD arbitration.

CONTENTIONS:
Claimant alleged that respondent owed a balance on a promissory note. Respondent denied the allegation and asserted various defenses. In his counterclaim, he alleged fraud by intentional misrepresentation, negligent misrepresentation, breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, and constructive discharge of his employment with claimant. Claimant denied respondent's allegations and asserted various affirmative defenses.

Damages

Claimant requested $172,337.20 in compensatory damages, interest at 5.07 percent from Feb. 17, 2004, and costs. Claimant also requested dismissal of respondent's counterclaim. Respondent requested dismissal of claimant’s claims, over $2 million in compensatory damages, unspecified punitive and exemplary damages, and costs.

Result

Respondent was found liable to claimant for $195,870 in compensatory damages and interest. Claimant was found liable to respondent for $230,000 in compensatory damages. The parties each bore their respective costs.

Other Information

Arbitrators were William J. Petzel and John T. Collentine.