Monday, March 2, 2009

FINRA Raises Limit for Single Arbitrator Cases

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

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