Facts

Lehman Brothers Holdings Inc (LBHI) filed suit against Kevin Kramer, asserting causes of action for breach of contract and unjust enrichment. The causes of action related to a promissory note executed by Kramer.

Kramer filed a counterclaim, asserting causes of action for unpaid commissions, unpaid vacation, lost income, misrepresentations, and omissions.

Damages

LBHI requested outstanding principal and interest in the amount of $456,919, plus interest accruing at the rate of $38 per day.

Result

The arbitration panel determined that Kramer was liable and would pay LBHI compensatory damages of $428,571 in principal, $86,213 in attorney's fees, plus interest of 3 percent on $344,777 from Sept. 15, 2008 through the date of payment totaling $38,965 through the date of the award. LBHI was liable to Kramer for compensatory damages for his counterclaim for $83,795. Kramer's award was an offset to LBHI's award, and reduced by the amount Kramer is liable to LBHI.

Other Information

ARBITRATORS: Audrey H. Ruben, Robert B. Hansohn, Karen A. Lockwood.