Frequently Asked Questions Of An Investment Fraud Lawyer Or Securities Litigation Attorney.

Below are several questions that have been asked of our investment fraud lawyer or securities litigation attorney during the securities arbitration process. We hope these questions and answers will help you learn more about securities litigation and how our experienced attorneys can help you. If you have other questions we can answer for you, please call 1-800-557-5565 or request a free online consultation.

Question 1. What is arbitration?
Question 2. What is an "arbitration clause?"
Question 3. How does arbitration work?
Question 4. Who sponsors or conducts the arbitration proceedings?
Question 5. How much does it cost to request an arbitration?
Question 6. Are there other costs involved?
Question 7. How does your firm recover its fee?
Question 8. What are my chances of winning my case?
Question 9. What are some common abuses?

View Our Arbitration Glossary

Question 1. What is arbitration?

top of page

Answer 1. This is a broad topic and is covered in its own section.

      Click here for a definition of arbitration and arbitration procedures.

Question 2. What is an "arbitration clause?"

top of page

Answer 2. A boilerplate arbitration clause is contained within virtually every brokerage agreement. This clause basically requires that you resolve any disputes you might have with your broker, investment advisor and/or financial planner through binding arbitration rather than through the State and/or Federal Court system.

Question 3. How does arbitration work?

top of page

Answer 3. Arbitration is much like a judicial trial except that instead of having a judge and jury rule on your claims, your claims are resolved by a panel of one to three arbitrators. The arbitrators will hear and weigh the arguments and evidence presented by the parties and then render a binding decision. Arbitration panels generally include at least one "industry" person and two non-industry persons. Such persons may include attorneys, accountants, retired judges, bankers, brokers and other professionals. Unlike judicial proceedings, arbitration generally does not involve the more expensive aspects of litigation such as depositions, motions or appeals. It is usually much faster and less expensive than pursuing your remedies through the civil courts. For more information on arbitration, click on the "What is Arbitration?" button located on the left side of your screen.

Question 4. Who sponsors or conducts the arbitration proceedings?

top of page

Answer 4. The three main sponsoring organizations for resolving investor disputes are (1) the American Arbitration Association, (2) the New York Stock Exchange, and (3) the National Association of Securities Dealers, Inc. ("NASD")

Question 5. How much does it cost to request an arbitration?

top of page

Answer 5. Each sponsoring organization determines what fees it deems reasonable for filing, administrative and hearing fees. The average filing fee with the NASD is roughly $1200.00. The greater the amount of your claim(s), the greater your filing and administrative fees will be. If your case settles, a portion of this fee may be returned.

Question 6. Are there other costs involved?

top of page

Answer 6. Although we do not charge anything for an initial consultation, you should expect to incur expenses related to the preparation of your case regardless of whether your case will be heard by an arbitrator or a judge. Commonly incurred fees include those arising from the preparation of damage exhibits and the retention of expert witnesses, as well as routine expenses such as mailing and copying costs.

Question 7. How does your firm recover its fee?

top of page

Answer 7. Taylor, Dunham & Burgess, L.L.P. generally prosecutes investor grievances via a contingency fee agreement. In sum, if you do not recover, we do not receive a fee. If you do recover any portion of your claim, you are responsible for remitting a percentage of the amount recovered to Taylor, Dunham & Burgess, L.L.P. after expenses have been deducted. We also prosecute investor matters on an hourly basis when it best suits our clients' needs.

Question 8. What are my chances of winning my case?

top of page

Answer 8. Unfortunately, there is no correct answer to this question. Each case will ultimately depend on its own unique set of facts. Notwithstanding, we can tell you that according to the Securities Arbitration Commentator, a periodical which studies and records securities arbitration statistics, 80% of all customer cases settle in favor of the investor prior to the rendering of an arbitration award. Over half of the remaining 20% that do not settle prior to arbitration result in an award to the customer. While Taylor, Dunham & Burgess, L.L.P. cannot guarantee you success in your claim, we can tell you that we generally will not accept a case unless we believe there is merit to the client's claim and that some monetary recovery is warranted.

Question 9. What are some common abuses?

top of page

Answer 9. This is a broad topic and is covered in its own section.

Click here to continue.

For an investment fraud lawyer or Texas securities litigation attorney, call Taylor, Dunham & Burgess at 1-800-557-5565 or visit www.attorneysforinvestors.com.