Helping Investors Protect Their Rights

Should You Pursue Arbitration Or Court In Broker Misconduct Cases?

In most cases involving investors and broker or investment advisor misconduct, the question of whether to seek arbitration or go to court is moot because most account agreements require that you resolve any disputes through the arbitration process. Thus, the only real decision in most cases is where, and before what board that arbitration hearing takes place.

California securities arbitration lawyer, Jeffrey A. Feldman, represents clients from throughout California and across the county in arbitration and securities litigation. As your attorney, he can review the facts of your situation and help you to decide which potential forum is the most appropriate for your individual case.

Most securities arbitration hearings are handled by the Financial Industry Regulatory Authority Dispute Resolution (FINRA-DR) but there are other alternatives such as the NYSE or Chicago Board Options Exchange (CBOE) that may be better options in some cases. In fact, any self-regulating organization (SRO) to which your broker or brokerage belongs can hear your case in arbitration.

In cases where no arbitration clause exists and litigation is also an option, the question of whether arbitration or court is the right place for your case must be addressed. The advantages of securities arbitration include:

  • Time-saving (arbitration hearing typically within one year)
  • Less discovery
  • No depositions
  • More economical

The primary disadvantage of arbitration is that there is a very limited range of potential appeals, which can also be the primary advantage when you prevail in arbitration. Conversely, litigation’s primary advantage over arbitration is that you do have the right to appeal adverse decisions.

Contact The Law Offices Of Jeffrey A. Feldman Today

For a free consultation about your case and to discuss which of these options is best for you, complete an online contact form.

Handling Securities-Related Disputes, Arbitration, and Litigation
in California and Nationwide—Call 415-413-8955

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The Law Offices of Jeffrey A. Feldman