March 11, 2018

Recent Result: $12 million FINRA Arbitration Claim Dismissed

Keesal, Young & Logan shareholders Terry Ross, Stacey Garrett and associate Ashley Impelliteri obtained an order dismissing a $12 million FINRA claim because it was ineligible for arbitration.  After an all-day hearing, the San Diego-based arbitrators determined that the claim had been filed more than six years after the events giving rise to the claim and therefore was ineligible for arbitration.  FINRA Rule 12206(a).

This case was unusual because it began in probate court in 2009 and – the broker dealers thought – was resolved there in 2011.   Two years later, in 2013, the claimant initiated a FINRA arbitration, which led to a court bench trial and permanent injunction of the arbitration because the claimant lacked standing.  Later, the claimant acquired standing and initiated a second FINRA arbitration, which ultimately was dismissed on eligibility grounds.  The panel therefore did not reach the other grounds for dismissal (settlement and res judicata). The registered representatives’ application for expungement relief is pending and will be resolved later in 2018.  Jennifer Marun, as Administrator of the Estate of Elian Eduardo Marun v. UBS Financial Services Inc., Citigroup Global Markets Inc., et al., FINRA Case No. 16-01856 (Order dismissing case dated 11/15/2017).