Respondent Broker or Brokerage Firm Answers The Statement of Claim.
After being served with a Statement of Claim, a Respondent (or Defendant) broker or brokerage firm typically will file an Answer or Response admitting or denying the allegations in the Statement of Claim, and setting forth additional or different statement of the facts, and legal arguments, as to why the investor’s claims are legally or factually insufficient, why the investor’s claims ought to be denied, and/or why the investor is not entitled to relief of any kind.
Motions To Dismiss Are Disfavored
Although a broker or brokerage firm can file a motion to dismiss a Statement of Claim, such motions to dismiss are generally disfavored in arbitrations. Under a recent FINRA rule, for example, a dispositive motion can be granted before a claimant finishes presenting its case only if the parties have settled their dispute in writing; there is a “factual impossibility,” meaning the defendant could not have been associated with the conduct at issue; or, the motion could be granted under the rule that requires parties to bring arbitration claims within six years of the events at issue. Any decision to grant a dispositive motion before a claimant presents his case must be unanimous.
Respondent Broker or Brokerage Firm Must Pay Its Member Fee
Typically the respondent broker or brokerage firm named as a party to the arbitration will also be required to pay a member surcharge fee.
If You Have A Question About A Broker or Brokerage Firm’s Answer or Response To A Statement of Claim, Contact A Securities Arbitration Lawyer.
-Contact A Securities Arbitration Lawyer-
