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You are a lawyer representing FINRA member Freedom Investments in a case brought by a former client, Bruce Lee. When Lee opened his account with
You are a lawyer representing FINRA member Freedom Investments in a case brought by a former client, Bruce Lee.
- When Lee opened his account with Freedom, he signed an arbitration agreement in which he agreed to resolve all claims against Freedom Investments by filing a case in a court of competent jurisdiction.
- The agreement also included prohibitions against Lee's (a) filing a class action and (b) requesting punitive damages.
- The client has filed a FINRA arbitration claim against the Firm and the registered representative who handled the accounts at Freedom, Betty Ting, alleging damages of $150,000 based on claims of unsuitability, churning, breach of fiduciary duty and failure to supervise.
The case has progressed, and the parties are now seeking document discovery.
- Lee has failed to respond to Freedom's requests for documents and has not filed any objections.
- Freedom Investments has asked the arbitrators to sign a subpoena directed to the broker-dealer where Lee had his accounts prior to his opening an account at Freedom Investments.
- The subpoena is for records relating to Lee's account at that broker-dealer.
- Freedom Investments has also asked for a subpoena directed to Lee's accountant for records.
- The panel has signed the subpoena to the accountant, but the accountant is refusing to comply.
The case was tried over three days and the panel has issued an award against Freedom Investments and Betty Ting in the amount of $50,000 to Lee.
- Ting believes the award is unfounded and wants to know what her options are.
- She believes that the panel did not listen to the evidence she and Freedom Investments presented at the hearing and feels the arbitrators disliked her personally.
- Freedom Investments is also upset that the panel did not allow its expert to testify, upholding Lee's objection on the expert's qualifications.
Based on the details provided above, please answer the following questions.
- Is there a basis for Freedom Investments and Betty Ting to vacate the award? Please answer yes or no and then provide an explanation for your answer.
- Is there any recourse for Betty Ting to remove the arbitration claim from her CRD? If so, how, and what would she need to show to prevail?
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