Facts

Lehman Brothers Holdings Inc. filed suit against Gregory Weiss, alleging causes of action for breach of contract and unjust enrichment. The causes of action related to repayment of a promissory note executed by Weiss.

Weiss filed a counterclaim and asserted causes of action for misrepresentations and omissions, loss of income, unpaid, unvested or other forfeited compensation and benefits, prorata loan forgiveness, unreimbursed expenses, and loss on a Lehman investment. The causes of action related to Weiss's termination of employment with Lehman.

Damages

Lehman requested outstanding principal and interest in the amount of $872,432 through the date of the statement of claim, plus interest accruing at a rate of $124 per day, as well as costs of collection including attorney fees. Weiss requested no less than $570,000 on his counterclaim.

Result

The arbitration panel found that Weiss was liable to Lehman and awarded Lehman $785,714 in compensatory damages. The panel also found that Lehman was liable to Weiss and awarded Weiss $61,379 in compensatory damages. Weiss's award was offset to Lehman's award, for a net amount due to Lehman of $724,335. Weiss was also liable for interest in the net amount of $105,072 and attorney's fees in the amount of $75,272.

Other Information

ARBITRATORS: Nancy Hutt, Gary H. Kahn, Edward J. Harkins.