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FINRA Arbitration

When two companies disagree, the last thing they want is to get stuck in a never-ending legal battle. Lawsuits can drag on for years and drain both parties’ finances, not to mention the impact on their business relationship. That’s where arbitration comes in as a faster, more efficient solution.

Arbitration presents companies with a quick and confidential means of resolving business disputes, allowing them to continue business operations while ensuring that all parties receive a just outcome.

Consult a contract lawyer before drafting a contract with an arbitration clause for dispute resolution. If you’re facing an arbitration claim initiated by an investor or brokerage dealer, hire an arbitration lawyer for a strong defense. At My RIA Lawyer, we defend arbitration cases across various platforms, from FINRA to AAA and JAMS. We understand that you have a lot on the line and need a vigorous defense to prove that you are not at fault. Contact us today to discuss your case.

What is a FINRA arbitration?

Arbitration is a conflict resolution method that disputing parties can use to resolve their issues rather than leaving their fate to the courts. This process requires mutual consent from both parties and is typically specified in the original contract.

Unlike court proceedings, arbitration allows for the choice of applicable laws, venue, and language, making it an attractive option for international disputes. Additionally, arbitration proceedings are confidential, ensuring that the case details remain private and avoiding any potential negative effects on the parties’ public image.

Arbitration can resolve legal disputes, and its decisions can be enforced like regular judgments. It’s commonly used in business-to-business contracts, especially in the financial services industry. The arbitrators render a binding decision, but an appeal may sometimes be pursued, though on a very limited basis.

Arbitration as a dispute resolution method can be applied to almost any situation where legal action may be taken. The decisions reached during arbitration can be enforced through the courts in the same way as a regular judgment. Although applicable to a wide range of legal disputes, arbitration is most commonly utilized in business-to-business (B2B) contracts, particularly in the context of international trade.

Common Reasons for Arbitration

Our FINRA arbitration lawyers defend clients against various claims.

Common customer claims include:

  • Churning
  • Fraud
  • Failure to diversify investments
  • Material misrepresentation
  • Negligence
  • Breach of fiduciary duty

Common intra-industry claims include:

  • Failure to pay promissory note
  • Breach of non-solicit agreement
  • Breach of non-compete agreement
  • Breach of partnership agreement
  • Fraud
  • Breach of contract
  • Breach of duty of loyalty and care

Defending Against Claims: How Our FINRA Lawyers Can Help You

Your arbitration attorney will evaluate the claim, review the evidence, and build a defense. Often, claims are submitted without wrongdoing by the advisor or firm. Instead, investors become upset after losing money and want someone to blame.

They hope they will get a settlement if they file a claim. In other cases, claimants have weak claims with little evidence.

There are numerous defense options, and we will discuss the best strategy for your case after reviewing the evidence. Our arbitration lawyer can also help you choose arbitrators for your case. After the claim is filed, you will receive a list of arbitrators.

Because our team has so much experience in securities arbitration, our attorneys can help you select arbitrators most likely to be sympathetic to your defense. We can strike up to four arbitrators from the list and then rank the remaining arbitrators. This will put you in the position to reach the desired outcome during the arbitration.

Contact us today to learn how our arbitration attorneys can help you defend yourself against the claim.

What to Expect During the Arbitration Process

The arbitration procedure generally involves:

  1. Arbitrators are usually selected through a mutual agreement between the parties involved.
  2. Cases are presented by both parties to a panel of arbitrators or a single arbitrator based on the nature of the case.
  3. Each side is allowed to present evidence, call witnesses, and provide testimony in a manner comparable to that of a court case.
  4. If the claim is for more than $100,000, your arbitration hearing will occur in person, with one of the arbitrators serving as the chair.
  5. If you are defending yourself against a small claim, arbitration can occur in person, over the phone, or by submitting documents.
  6. The arbitrators will listen to the evidence and render a decision.

Unlike mediation, the decisions made during arbitration are final. Although the court might agree to vacate the award in some circumstances, there is no formal appeal process. Because it’s challenging to change the outcome of the decision, hiring a FINRA lawyer is vital.

Benefits of Arbitration

Arbitration has become one of the most preferred conflict resolution techniques in recent years due to the multitude of advantages that come with its usage.

Here are some of the significant benefits of arbitration:

  • A less confrontational atmosphere: In arbitration, parties are often encouraged to collaborate on a resolution rather than engage in a combative legal process. This is particularly beneficial if you want to maintain a healthy business relationship with the other company.
  • Confidentiality: The privacy offered by arbitration allows for disputes to be resolved without inviting public scrutiny, which may be particularly advantageous to companies seeking to protect their reputations.
  • Cost savings: Compared to litigation, arbitration is a far less expensive option. Although parties are still required to pay for legal representation and the cost of arbitrators, the more efficient arbitration process often leads to fewer billable hours, making it a more affordable option in the long run. Additionally, because arbitration typically takes less time to resolve than a court case, parties can save on expenses such as travel and lodging.
  • Speed: Arbitration is generally straightforward, with the average case resolved within a year of filing. This contrasts litigation, where a similar case could take several years to decide.
  • Flexibility: Arbitration procedures are more flexible than court procedures (for instance, evidence and witness list matters can be addressed through a simple phone call), allowing parties to schedule hearings and other matters according to availability. In contrast, court procedures are often inflexible, taking much longer to settle, and courts offer little scheduling flexibility.

Contact an Arbitration Lawyer at My RIA Lawyer Today

Hiring competent FINRA arbitration lawyers is critical when undergoing arbitration. While arbitration isn’t as complex as going to trial, there are still complicated regulations and laws that you must navigate. Also, the other side is likely to have legal representation.

If you go in alone, you will have trouble presenting compelling evidence to defend yourself against the claim. This is especially true when there is anger and other emotions involved. Our arbitration lawyer at My RIA Lawyer will move beyond emotions and use facts and evidence to support your defense. Don’t settle for less in your case. Contact us today to begin building your case.

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We get it – you need answers, and you need them now. That’s where we come in, offering a blend of big-firm resources with the kind of personal attention you’d expect from a smaller one.

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What's the difference between arbitration and mediation?

Arbitration and mediation are two procedures for resolving disputes outside the court system, but they are different. Both are intended to avoid the need for formal litigation, but they differ in terms of their approach.

Mediation is a negotiation between parties that is not binding, and the mediator serves primarily as a facilitator. Mediation does not always result in a specific, binding solution to the dispute. In contrast, arbitration operates more like an informal court, with the arbitrator serving as a judge. The decision made in arbitration is typically final and binding.

Even though arbitration and mediation are designed to resolve conflicts swiftly and confidentially, only arbitration can result in a binding outcome that one or more parties may not agree with completely.

Should all contracts contain arbitration clauses?

It’s important to consider the potential downsides of mandatory arbitration clauses, such as limited appeal options, lack of transparency, and potential bias in favor of larger parties.

You should also consider the nature of the dispute, the likelihood of it arising, and the relationship between the parties before deciding whether or not to include an arbitration clause in the contract. Ultimately, the decision should be based on the specific circumstances and the parties’ needs and preferences.

What is mandatory arbitration?

Contracts today often include mandatory arbitration clauses that require any disputes to be resolved through arbitration instead of the court system. This clause forces both parties to waive their right to bring the dispute to court, having instead agreed to resolve their conflict through arbitration. The parties have already consented to arbitration as an alternative dispute resolution method.

However, including these mandatory clauses in contracts has sparked much debate since they often favor the party with more power, particularly involving employees or consumers.

Mandatory arbitration clauses that preclude class action are also unenforceable. This has led to rejecting certain consumer contracts containing such clauses.


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“It’s important that you look at your legal provider and who it is you have invested in to protect your business, so there are a few things you should be asking your lawyer. First, do they know what the heck you’re doing? Do they know the services you provide? The fees you’re charging? Do they understand securities? One of the problems I see when there is a legal action or when there’s an enforcement action, is that so many of you are going to attorneys that have ZERO securities experience! You’re going to, God forbid, a general practitioner!! That’s not the kind of lawyer you want, you want a securities attorney! You want them to understand your business.

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