FINRA Attorney Fee Award Upheld by State Court

Representing Investors Nationwide

According to a June 27, 2011 article in the New York Law Journal, Investment firm International Capital & Management Co. must pay more than
$300,000 in attorney’s fees after withdrawing claims in an arbitration against failed investment banking firm Bear Stearns & Co. (now JP Morgan Securities).

The judge in the case held hat, even though the contract did not provide for a fee award FINRA, both parties had effectively agreed to let FINRA award fees simply by requesting them in their Claim and Answer.

Although attorney fee awards are somewhat rare in arbitration, this recent ruling provides some hope for Claimants trying to get whole after losing money due to negligence or fraud by their broker or brokerage firm.