Facts

Claimants Kathleen Pomeroy, The Pomeroy family Trust, The Pomeroy Bypass Trust, and The Marital Deduction Trust brought an action against respondent Charles Schwab & Co. Inc. stemming from the administration of a trust account and investment in the Schwab California Tax-Free Yield Plus fund.

CLAIMANTS' CONTENTIONS:
Claimants alleged breach of contact and warranties, promissory estoppel, state securities statute violations, state fraud statute violations, California consumer legal remedies action violation, elder abuse statue violations, intentional misrepresentation of material fact, unjust enrichment, breach of fiduciary duty, and breach of duty of good faith and fair dealing.

RESPONDENT'S CONTENTIONS:
Respondent rejected the allegations of misconduct.

Damages

Claimants sought between $500,000 and $1 million in damages. Respondent sought dismissal of the claims.

Result

The arbitration panel awarded claimants $604,094 in compensatory damages, plus interest at the rate of 7 percent. Further, claimants received $150,000 in attorney fees and $14,850 in costs.

Other Information

ARBITRATORS: Jane Bradley, Mary Margaret Bush, William A. Husa.