Award FINRA Office of Dispute Resolution. Hearing Site: Miami, Florida Citigroup Global Markets, Inc. Michael R. Averett

Size: px

Start display at page:

Download "Award FINRA Office of Dispute Resolution. Hearing Site: Miami, Florida Citigroup Global Markets, Inc. Michael R. Averett"

Jonah Hunt
5 years ago
Views:

1 Award In the Matter of the Arbitration Between: Claimant Christian S. Gherardi Case Number: vs. Respondents Hearing Site: Miami, Florida Citigroup Global Markets, Inc. Michael R. Averett Nature of the Dispute: Associated Person vs. Member and Associated Person REPRESENTATION OF PARTIES For Claimant Christian S. Gherardi: Ethan A. Brecher, Esq., Law Office of Ethan A. Brecher, LLC, New York, New York. For Respondents Citigroup Global Markets, Inc. ( Citi ) and Michael R. Averett: Ira G. Rosenstein, Esq., Jack Beauchamp, Esq. and Dalisi Carasco, Esq., Morgan, Lewis & Bockius LLP, New York, New York. CASE INFORMATION Statement of Claim filed on or about: April 6, Christian S. Gherardi signed the Submission Agreement: February 23, Statement of Answer filed by Respondents on or about: June 3, Citi signed the Submission Agreement: August 16, Michael R. Averett signed the Submission Agreement: June 3, Motion to Bar Witness filed by Claimant on or about: May 12, CASE SUMMARY In the Statement of Claim, Claimant asserted the following causes of action: defamation on his Central Registration Depository ( CRD ) Form U5; tortious interference with prospective economic relations; wrongful termination and/or breach of contract and/or promissory estoppel; violation of the common law of securities arbitration; and tortious interference with contractual relations. The causes of action relate to Claimant s termination of employment with Respondent Citi. Unless specifically admitted in their Statement of Answer, Respondents denied the allegations made in the Statement of Claim and asserted various affirmative defenses.

2 Arbitration No Award Page 2 of 6 RELIEF REQUESTED In the Statement of Claim, Claimant requested: compensatory damages in an amount no less than $16,500, for lost earnings; unspecified punitive damages; expungement of defamatory Form U5 language on his CRD records; interest; costs; attorneys fees; a declaration that the non-solicitation clause in the Citi Employee Handbook is unenforceable as to him; and such other relief as the Panel deemed just and proper. In the Statement of Answer, Respondents requested Claimant s claims be dismissed in their entirety and that the Panel award any and all relief deemed appropriate. OTHER ISSUES CONSIDERED AND DECIDED The Arbitrators acknowledge that they have each read the pleadings and other materials filed by the parties. On or about May 12, 2017, Claimant filed a Motion to Bar witness wherein he asserted that a witness should not be permitted to attend the hearing as Respondent s representative since she was to testify on Respondent Citi s case, and requested an Order barring the witness from attending the hearing as Respondent Citi s corporate representative. The Panel issued a directive that deferred ruling on the Motion until the evidentiary hearing. At the outset of the hearing, the Panel denied the Motion. The parties present at the hearing have agreed that the Award in this matter may be executed in counterpart copies or that a handwritten, signed Award may be entered. AWARD After considering the pleadings, the testimony and evidence presented at the recorded in-person hearing, and the post-hearing submissions, the Panel has unanimously decided in full and final resolution of the issues submitted for determination as follows: 1. Claimant s claims are denied in their entirety as to Respondent Michael R. Averett. 2. Respondent Citi is liable for and shall pay to Claimant the sum of $3,452, in compensatory damages under the claim of wrongful termination. 3. Respondent Citi is liable for and shall pay to Claimant the sum of $150, for lost quarter trailers. 4. Respondent Citi is liable for and shall pay to Claimant the sum of $395, for deferred compensation. 5. Respondent Citi is liable for and shall pay to Claimant interest on the above stated lost quarter trailers and deferred compensation sums at the Florida

3 Arbitration No Award Page 3 of 6 statutory rate per annum from January 2, 2016, through and including the date the Award is paid. 6. Respondent Citi is liable for and shall reimburse Claimant in the amount of $750.00, representing the non-refundable portion of the filing fee previously paid by Claimant to. 7. Other than forum fees which are specified below, the parties shall each bear their own costs and expenses incurred in this matter. 8. The Panel recommends the expungement of the Termination Explanation in Question 3 of Claimant CHRISTIAN S GHERARDI s (CRD# ) Form U5 - filed on January 4, 2016, by Respondent Citigroup Global Markets Inc. (7059), and maintained by the CRD. The Panel recommends the Termination Explanation be changed to read: Terminated without cause. The Reason for Termination shall remain the same. These recommendations are made with the understanding that, Claimant CHRISTIAN S. GHERARDI (CRD# ) must obtain confirmation of this Award from a court of competent jurisdiction before the CRD will execute the expungement directive. These recommendations shall apply to any subsequent disclosures concerning this event. The registration records are not automatically amended to include the changes indicated above. Claimant CHRISTIAN S. GHERARDI must forward a copy of the court order to FINRA s Registration and Disclosure Department for review. 9. Any and all claims for relief not specifically addressed herein, including Claimant s requests for punitive damages and attorneys fees, are denied. FEES Pursuant to the Code of Arbitration Procedure, the following fees are assessed: Filing Fees assessed a filing fee* for each claim: Initial Claim Filing Fee =$ 2, *The filing fee is made up of a non-refundable and a refundable portion. Member Fees Member fees are assessed to each member firm that is a party in these proceedings or to the member firm(s) that employed the associated person(s) at the time of the event(s) giving rise to the dispute. Accordingly, Respondent Citi is assessed the following: Member Surcharge =$ 4, Member Process Fee =$ 7,000.00

4 Arbitration No Award Page 4 of 6 Postponement Fees Postponements granted during these proceedings for which fees were assessed or waived: July 17 19, 2017, postponement by parties =$ 1, Total Postponement Fee =$ 1, The Panel has assessed $ of the adjournment fee to Claimant. The Panel has assessed $ of the adjournment fee jointly and severally to Respondents. Discovery-Related Motion Fee Fees apply for each decision rendered on a discovery-related motion. Two (2) decisions on discovery-related motions on the papers with one (1) $200.00/decision =$ Claimant submitted two (2) discovery-related motions Total Discovery-Related Motion Fees =$ The Panel has assessed the total discovery-related motion fees of $ to Respondent Citi. Hearing Session Fees and Assessments The Panel has assessed hearing session fees for each session conducted. A session is any meeting between the parties and the arbitrator(s), including a pre-hearing conference with the arbitrator(s) that lasts four (4) hours or less. Fees associated with these proceedings are: One (1) pre-hearing session with a single $450.00/session =$ Pre-hearing conference: April 3, session Two (2) pre-hearing sessions with the $1,500.00/session =$ 3, Pre-hearing conferences: August 15, session December 1, session Seventeen (17) hearing $1,500.00/session =$25, Hearing Dates: May 15, sessions May 16, sessions May 17, sessions May 18, sessions May 19, sessions November 14, sessions November 15, sessions November 16, sessions

5 Arbitration No Award Page 5 of 6 November 17, session Total Hearing Session Fees =$28, The Panel has assessed the total hearing session fees of $28, to Respondent Citi. All balances are payable to and are due upon receipt.

6 February 28, 2018

7 February 28, 2018

8 February 28, 2018

Award FINRA Office of Dispute Resolution. Hearing Site: New York, New York First Republic Securities Company, LLC

Award FINRA Office of Dispute Resolution In the Matter of the Arbitration Between: Claimant Christopher Herridge Rusk Case Number: 16-03411 vs. Respondent Hearing Site: New York, New York First Republic