Facts

Michael and Carole Smith, along with NNN Parkway Corporate Plaza 10 LLC, filed a complaint against Berthel Fisher & Company Financial Services Inc. and John Notman, related to claimants' investments in two tenant-in-common transactions that were promoted by Triple Net Realty.

CLAIMANTS' CONTENTIONS:
Claimants asserted claims for violation of standards of reasonable basis suitability under the NASD and FINRA Rules and just and equitable principles of trade under FINRA Rule 2010. They also alleged fraud, misleading statements, misleading omissions of material information under NASD Rule 2210(d)(1)), and just and equitable principles of trade under FINRA Rule 2010, breach of fiduciary duty, negligent misrepresentation, negligence, breach of contract, and breach of the covenant of good faith and fair dealing.

RESPONDENTS' CONTENTIONS:
Respondent denied the allegations and asserted various affirmative defenses. Respondent also moved to dismiss, arguing that the matter was outside of the eligibility period for FINRA arbitrations.

Result

The FINRA Panel ruled that the matter was no longer eligible for arbitration. As such, the Panel dismissed the case.

Other Information

Claimants were dismissed without prejudice and have filed their claim in state court. ARBITRATORS: Carol Ann Jensen, William Ziering, Arocles Aguilar FILING DATE: July 1, 2014