Why You Should Hire An Attorney When Pursing Recovery In Arbitration Against A Brokerage Firm

Law Blog

After losing a large amount of money in your brokerage account, you will be able to pursue compensation if you know that your broker is at fault. However, you will not want to pursue this type of claim without first speaking to a securities law attorney.

Arbitration is Required 

If your broker is at fault for you losing a lot of money, your best option is to pursue recovery in arbitration. This is because you are not allowed to sue a broker in court and this is your only option to seek redress. You can find this requirement in the account form under the "arbitration clause" in most cases. 

The Importance of Hiring a Securities Law Attorney

As you do this, you can choose to be represented by a securities law attorney. This is a very good idea because the brokerage firm you will take legal action against will likely have their own lawyers working for them.

The lawyers who work for the brokerage firm will likely be full-time defenders against claims such as yours and will know how to work every rule to the advantage of their clients. Therefore, you will also need an attorney who will be able to make a strong enough case.

Your Attorney Likely Only Represents Investors

A securities law attorney must comply with specific rules and regulations. In many states, a securities law attorney who represents investors will not be allowed to also represent brokers. Therefore, you won't have to worry about your securities law attorney having a bias in favor of the broker.

It's Difficult to Appeal an Arbitration Decision

Courts usually prefer arbitration to handle a case in court because most courts are backlogged. Also, arbitration services are often considered just as fair to a consumer as what you would experience in a courtroom.

Therefore, if the arbitration service makes a decision, it will usually be considered final and you will have a difficult time appealing your case. If you would like to be compensated, it's essential that you work with a securities law attorney so you can win your arbitration case.

The Process of Filing a Claim

Your attorney will begin the process by helping you file a statement of claim. This is a document that will include a list of all the facts relevant to your case and your claim. The brokerage firm will respond to your claim. Then, you will choose the arbitrators and will eventually attend the arbitration hearing. During this hearing, your securities law attorney will represent you.


18 February 2022

injured at work? what do you do now?

Were you injured at work and fighting to get the workers compensation that you have paid into each year? Sometimes, getting those payments can be very difficult. What do you do when an employer fights the claim? Do you need a lawyer to help you through the process? How will you pay for a lawyer if you cannot even pay your electric bill? You are probably as lost as I was when I went through the process. Fortunately, you can learn from my experience with the system and find the answers to many of the questions that you have about filing a workers comp claim and fighting the system when it is denied.