After appealing an arbitration award, Raymond James Financial Services (RJF) recently paid close to $1.8 million to a former client in Texas, according to an attorney representing the investor on Wednesday.
Appeals of arbitration awards are “extremely rare,” said Tracy Pride Stoneman of the Stoneman Law Firm in Denver, who issued a press release and represented the plaintiff, Hurshel Tyler, now 87. The Dallas judge ruling on the case dismissed the appeal and confirmed the arbitration award on Oct. 12, giving Raymond James 30 days to pay it, Stoneman says.
“Raymond James continues to believe that the award in this matter is a miscarriage of justice,” said Robert M. Rudnicki, vice president and director of litigation for Raymond James, in a statement.
According to Rudnicki, the Tylers had gains of more than $800,000 during the period of time they had accounts with Raymond James and “suffered losses when they transferred their accounts to another broker-dealer.”
“Raymond James believes the panel erroneously held Raymond James responsible for those losses,” Rucknicki explained. “Notwithstanding that fact, Raymond James has determined, after reviewing the anticipated time and resources necessary to continue to fight what we still believe to be an erroneous award, to put the matter behind us and move forward.”
The focus of the case was Raymond James branch office manager Paul Davis, who led the firm’s independent-advisor office in Amarillo, Texas, before leaving the firm in 2006.