In a recent FIRNA arbitration decision, a firm suffered a set back when it was unable to recover damages on a promissory note. 

One of the interesting facets of this particular case is that, at the hearing, the member firm amended it damage claim to nearly $100,000 more than the number in its statement of claim.  Although the firm believed that it had the information to support its claim, the sole FINRA arbitrator denied the claim in its entirety.

Unfortunately, the FINRA arbitrator – keeping with FINRA procedure – did not disclose the reasons for rejecting this claim.  One wonders if it will, ultimately, start a trend with FINRA arbitrators.  Distinguished securities attorney, David Robbins, represented the broker in this action, and his skills in obtaining such a result speak for themselves.  However, time will tell if David’s success will be replicated.