Successful Arbitration for Financial Advisory Firm

Secured favorable outcome for our client, a financial advisory firm, in a two-phase arbitration. Phase one involved interpretation and application of a lowest contractual fee schedule provision in a subadvisory agreement. After a six-day hearing, an arbitration panel awarded award our client over $750,000; rejected a request by our opponent for $680,000; and found that our client was the prevailing party for purposes of a fee award. Phase two addressed alleged violations of confidentiality and noncompete provisions, for which the opponent sought more than $17.5 million in damages. The arbitration panel rejected the confidentiality claim and awarded less than $95,000 on the noncompete claim, amounting to just 0.5 percent of the damages requested.