Litigation
Chapters in this video
- 0:00 The pre-dispute arbitration agreement and why Carla cannot sue
- 1:52 The three exceptions: class actions, no agreement, statutory claims
- 2:19 Why Riley the Rep and industry participants are locked into arbitration
- 3:08 Class actions: the biggest exam trap on litigation versus arbitration
- 3:34 Speed, discovery, evidence, and the appeal comparison
- 5:22 Cost, decision maker, public record, and the punitive damages myth
- 6:26 Rapid-fire exam recap
What this video covers
- Why class action claims, the absence of a predispute arbitration agreement, and certain statutory claims are the three paths that land a securities dispute in court instead of arbitration
- Why industry participants (firms and registered representatives) generally cannot pursue litigation for disputes covered by Financial Industry Regulatory Authority (FINRA) arbitration rules
- How discovery, rules of evidence, speed, cost, and public record differ between litigation and FINRA arbitration
- Why the right to appeal a decision is full and real in court but extremely limited in arbitration, with almost no appeal on the merits
- Why punitive damages are available in both venues, and the trap of assuming only courts can award them
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