Facts

Claimants Freeman N. Harris and Dorothy J. Harris asserted causes of action for unsuitability and failure to adequately disclose surrender charges and adverse tax consequences against Respondents Wells Fargo Investments LLC and Donovan L. Hilsabeck. The claimants' allegations concerned the purchase of three annuities. Unless specifically admitted in the Answer, the respondents denied the allegations of wrongdoing stated in the claimants' Statement of Claim.

The respondents asserted defenses were for failure to allege facts sufficient to constitute a cause of action, waiver, estoppel, ratification, failure to mitigate, laches, assumption of risk and that the claims were barred by the applicable statute of limitations.

Damages

The claimants requested $13,089.83 in surrender charges (paid and payable), $10,000 in punitive damages, increased income tax liabilities according to proof, pre-judgment interest at a rate of $3.58 per day from Dec. 18, 2002, reimbursement of NASD filing fees, assessment of forum fees to the respondents, and costs, including attorney fees. The respondents requested dismissal of the claimants' Statement of Claim in its entirety, as well as costs.