Award and Decision – The decision is made after all of the
parties complete their presentations and the arbitrators close the record. Arbitrators
will attempt to make a final decision within 30 days after they close the
record and are not required to write opinions or provide reasons for their
decision. You may request an opinion from the arbitrator, but make sure that
request is in writing before the hearing date. The arbitrator
takes all of the information into consideration and makes a decision. An award
is written to summarize the hearing and gives the decision and all parties are
notified at the same time. The award will also include the arbitrator’s reasons
for the decision.
If you win the award, expect to be paid
within 30 days from when the parties were notified of the decision. The
other party will pay you directly, usually by sending you a check in the amount
specified by the arbitrator. Brokers and FINRA member firms must pay
arbitration awards within 30 days of receipt, unless a motion to vacate is
filed in court.
Remember that it is your responsibility to prepare
yourself for the arbitration hearing. Arrange for any witnesses and/or evidence
to be available for presentation at the time of the hearing. You must inform
the other party of the witnesses you have and provide copies of anything you
plan to use at the hearing as evidence at least 20 calendar days before the
start of the hearing. You will also need to bring enough copies of each item
for each arbitrator and one for FINRA.
It is important to be well organized and have outlined
and practiced what you want to say. Arbitrators appreciate cases that are
concise and well focused and free from repetitive and irrelevant information.
Most arbitration cases end with a settlement between
the parties either through direct negotiation or through mediation. In recent
years, parties agreed on a resolution in about 60 percent of all cases. Other
cases are withdrawn or closed before the process begins.
What happens if your brokerage firm goes out of
business or you win arbitration and you don’t get paid? Brokers must pay
arbitration awards within 30 days of receipt, unless they file in court a
motion to vacate. Interest is due from the date of the award, if the broker
doesn’t pay the reward within the 30 day period or the broker files a motion to
vacate the award and the motion is denied.
If
needed, the arbitrators can decide on another type of paying interest. For
instance, the arbitrators can say that the interest is due from an earlier or
later date. The interest is the legal rate in the state in which the award was
made, unless the arbitrators set a different rate.
If you haven’t been paid within 30 days of receipt of
the award, you should notify the State Revenue Office (SRO) that issued the
award. Under the Constitution, Rules, and Bylaws of the SROs, the membership or
registration of an organization can be suspended or canceled if the company
does not comply with an arbitration award, unless the member has made a timely
motion to vacate or modify the award. Check with your SRO for its specific
practices and standards.
Federal
and state laws also enforce arbitration awards. For instance, under the Federal
Arbitration Act, a party has one year from when the award was issued to confirm
the award. The arbitration award is turned into a court judgment that can be
forced like any other judgment.
copyright Brad Richdale TM 2010 all rights reserved
blog by Bradford Richdale
copyright Brad Richdale TM 2010 all rights reserved
blog by Bradford Richdale
