Hutton v. Cambridge Investment Research, Inc., FINRA Arbitration No. 16-00120 (Nov. 2, 2016)

FINRA panel dismisses the claimant’s claims as untimely and ineligible under Rule 13206.

In January 2016, the claimant filed a statement of claim, alleging damages resulting from the respondent’s loss of an electronic trade ticket that allegedly resulted in the claimant’s clients’ shares sitting in a block trading account for two months while depreciating in value. Through discovery, it was revealed that, as early as summer 2009, the claimant was aware of the event causing the alleged damages. In particular, the claimant was subject to a default judgment that had been entered in relation to an arbitration claim filed by the respondent that was partially based on the subject matter of the claimant’s current arbitration. The claimant failed to produce information that contradicted a finding that she not only knew about her potential claims, but that the events leading to those claims occurred more than six years prior to the filing of her statement of claim. Thus, pursuant to FINRA rule 13206 of the Code of Arbitration Procedure, the panel granted the respondent’s motion to dismiss, thereby dismissing the claimant’s claims as untimely and ineligible for arbitration.


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