Facts

Alejandro M. Arredondo and Elizabeth J. Arredondo filed for arbitration against Arque Capital, Ltd., Audrey Kuwabara, Michael Ning, Jamie Bennett and Phillip Rodriguez. Bennett and Rodriguez were added in an amended statement of claim. Arque Capital, Kuwabara and Ning filed a third party claim against Bennett and Rodriguez. Bennett and Rodriguez filed third party counter claims against Ning. The claims related to claimants' investment in three private placements with Argus Realty Investors, Gulf Coast Rig & Equipment LLC and Worthington LLC.

The Arredondos' claims against Bennett and Rodriguez were resolved by settlement. The only claim that went to hearing was Bennett and Rodriguez's claim against Ning for breach of the broker-dealer purchase agreement.

THIRD PARTY CLAIMANT'S CONTENTIONS:
In a third party claim, the Arque respondents alleged express indemnity and implied equitable indemnity in relation to a broker-dealer purchase agreement executed by Bennett, Rodriguez and Ning.

THIRD PARTY COUNTER-CLAIMANT'S CONTENTIONS:
Bennett and Rodriguez denied the allegations of the third party claim and instead, alleged in a third party counterclaim that Ning failed to pay consideration required under the purchase agreement. Bennett and Rodriguez claimed that Ning was liable for the balance due under the purchase agreement.

THIRD PARTY COUNTER-RESPONDENT'S

Damages

Bennett and Rodriguez sought $676,870 against Ning.

Result

The arbitration panel denied Bennett and Rodriguez's third party counterclaim against Ning. It also denied Arque Capital, Kuwabara and Ning's third party claim against Bennett and Rodriguez for amounts they might be compelled to pay as a result of damages, judgment or other awards recovered by Arredondo. The original claim by the Arredondos was dismissed as to Kuwabara and Ning. Therefore Kuwabara and Ning's indemnity claim against Bennett and Rodriguez was moot. Also, expungement requests were denied.

Other Information

ARBITRATORS: John E. Ohashi, CathyLyn Rossi and Pamela Jane Koslow.