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How do I know I have a claim?
If you are unsure you have a claim or you know you have a claim, but are unsure how to proceed, it is recommended you contact an attorney. If you would like to contact our office you may do so by calling us at (440) 333-9270 or by emailing Brian P. Biggins, Esq. at biggins@en.com. Once you have contacted an attorney, he or she will evaluate your case and determine whether it is worthwhile to proceed.
How does the case proceed?
The process begins when one party files a statement of claim. The opposing party then has an opportunity to respond. Thereafter, both sides will attempt to come to a settlement agreement. If the parties fail to settle, the case will go to arbitration.
What is arbitration?
Securities Arbitration is moderated by private, impartial parties who have a particular knowledge of the securities industry. This avoids unnecessary and expensive litigation in the courts and helps to facilitate a better outcome for the parties. The National Association of Securities Dealers (NASD) is the forum for securities arbitration.
The arbitration process has some similarities to court proceedings. There is an exchange of pleadings and request for information. After preparation, there is a hearing before the arbitration panel, which will eventually render a decision. This decision has the binding effect of a court order.
Do I have to arbitrate?
Most contracts between brokerage firms and investors include an arbitration clause. This clause requires arbitration regarding disputes that arise from investment practices. If there is no arbitration clause in the contract the investor may file in civil court.
How long will this process take?
Most cases are resolved within 2 ½ years. Cases may, however, be resolved faster depending on many factors including opposing counsel's availability, arbitrators' availability, and whether the case is settled or goes to arbitration.
How much will the entire process cost?
The client is responsible for all costs and litigation expenses expended on the
client's behalf for any items or services reasonably
necessary to properly prepare the case for presentation.
These costs generally include, but are not limited to, costs for the filing
fee to the NASD, photocopying, postage, costs of travel, and incidental travel
expenses, and expert and investigative fees. The cost of filing a statement of
claim with the NASD ranges anywhere from $25.00 - $1,800.00, depending on the amount of relief requested.
In some cases, the attorney will also charge a retainer fee. Finally, if the attorney
is successful, the attorney will take a contingency fee for the services.
What is a retainer fee?
If a client's case is extremely voluminous and/or complicated an attorney may charge the client a nonrefundable retainer fee in order to have an expert evaluate the case.
How much is the retainer fee?
The retainer fee may range anywhere from $1,250.00 - $2,800.00.
What is a contingency fee?
A contingency fee is the lawyer's payment for services rendered. A contingency is a percentage of the attorney recovers for the client and is dependent on a successful outcome of the case. A contingency fee gives the attorney the incentive to recover the highest possible amount for the client because the higher the recovery, the higher the attorney's contingency fee and, in the event the attorney recovers nothing, the attorney receives nothing. In other words, a contingency fee protects the client from paying excessive attorney's fees for an undesirable outcome.
What percentage of the recovery is the contingency fee?
The percentage of the contingency fee is usually 33 1/3% of the amount recovered if the case is settled at least 45 days prior to arbitration. If the case is not settled at least 45 days prior to arbitration, the contingency fee will be 40% of the amount recovered.
What do I do now that I know more about securities arbitration?
If you believe you may have a claim, contact our office by phone at (440) 333-9270 or toll free 1-877--927-8256 or email
Brian P. Biggins, Esq. at biggins@en.com for a free consultation. We look forward to hearing from you.
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