For cases filed after March 30, 2009, FINRA has raised the threshold for a three arbitrator panel to $100,000.
I am not so sure this is a wise decision. While I understand that the single arbitrator will be "chair-qualified" there are plenty of "chair-qualified" arbitrators with little or no experience. For a case where the damages are $90,000, I think I want the benefit of three arbitrators.
Watch for the number of cases with inflated damage claims to get inflated. That $90,000 case is going to have a damage claim of $125,000 to avoid this change.
FINRA Notice 09-13
I am not so sure this is a wise decision. While I understand that the single arbitrator will be "chair-qualified" there are plenty of "chair-qualified" arbitrators with little or no experience. For a case where the damages are $90,000, I think I want the benefit of three arbitrators.
Watch for the number of cases with inflated damage claims to get inflated. That $90,000 case is going to have a damage claim of $125,000 to avoid this change.
FINRA Notice 09-13
