In FINRA arbitration, the arbitrators are the decision-makers who hold the power to influence case outcomes significantly. Unlike traditional court systems where judges are assigned, parties in FINRA arbitration have a say in the composition of the arbitration panel. This unique feature underscores the importance of arbitrator selection in crafting a winning strategy. Bakhtiari & Harrison, a premier nationwide law firm specializing in securities disputes, excels at selecting arbitrators who are well-suited to their clients’ cases.
Bakhtiari & Harrison is a premier nationwide law firm, focused on representing clients resolving securities industry related disputes through arbitration and state and federal court litigation by FINRA lawyer.
This article delves into the importance of arbitrator selection, the factors that influence the process, and how Bakhtiari & Harrison approaches this critical aspect of FINRA arbitration.
The Importance of Arbitrator Selection in FINRA Arbitration
1. Influence on Decision-Making
Arbitrators bring their backgrounds, experiences, and perspectives to the decision-making process. The outcome of a case often depends on how well the arbitrators understand and evaluate the evidence and arguments presented.
2. Unique Case Needs
Each securities dispute is different, with unique facts, legal issues, and emotional elements. The selection of arbitrators who can appreciate the nuances of a specific case is vital to achieving favorable results.
3. Avoiding Potential Bias
Arbitrator bias—whether conscious or unconscious—can affect the fairness of the process. The ability to research and exclude arbitrators with potential conflicts of interest or predispositions is critical.
The FINRA Arbitrator Selection Process
FINRA arbitration allows parties to select arbitrators through a structured process:
1. Arbitrator List Generation
FINRA provides parties with a list of potential arbitrators, typically consisting of:
- Public Arbitrators: Individuals with no ties to the securities industry.
- Non-Public Arbitrators: Professionals with experience in the securities industry, such as brokers, compliance officers, or investment advisors.
2. Review and Research
Parties have an opportunity to review the arbitrators’ profiles, which include details about their:
- Professional background.
- Prior arbitration experience.
- Disclosures of potential conflicts of interest.
3. Strikes and Ranking
Both parties can strike arbitrators they find unsuitable and rank the remaining ones in order of preference. FINRA then appoints the panel based on mutual rankings.
How Bakhtiari & Harrison Excels in Arbitrator Selection
1. In-Depth Arbitrator Research
Bakhtiari & Harrison conducts extensive research into the professional histories and arbitration records of potential arbitrators. Their analysis includes:
- Previous rulings and awards.
- Published writings or public comments.
- Patterns of decision-making in similar cases.
This research ensures that the firm selects arbitrators who are likely to be impartial and capable of understanding the complexities of the case.
2. Tailored Arbitrator Profiles
The firm customizes its approach to arbitrator selection based on the specifics of each case:
- For Investors: Preference for public arbitrators who may empathize with investor losses.
- For Financial Professionals: Focus on arbitrators with industry knowledge who can appreciate the complexities of compliance and trading.
3. Anticipating Opponent Strategies
Bakhtiari & Harrison evaluates how opposing parties might approach arbitrator selection and develops strategies to counteract potential advantages. For example, the firm may prioritize striking arbitrators who have a history of siding with large financial institutions.
4. Utilizing Advanced Tools
The firm leverages sophisticated tools and databases to analyze arbitrator performance, ensuring that their selection decisions are data-driven and evidence-based.
5. Open Communication with Clients
Bakhtiari & Harrison involves clients in the arbitrator selection process by:
- Explaining the profiles of potential arbitrators.
- Discussing the strategic implications of various choices.
- Ensuring that the client’s preferences and concerns are considered.
The Role of Arbitrator Composition
The composition of the arbitration panel can significantly impact the case’s trajectory:
1. Diverse Perspectives
A balanced panel with diverse expertise—such as one public arbitrator and two non-public arbitrators—ensures a well-rounded evaluation of the case.
2. Case Complexity
For complex securities disputes, arbitrators with a deep understanding of financial instruments and industry practices are invaluable.
3. Emotional Elements
In cases involving emotional appeals, such as claims of elder abuse or unsuitable investments, public arbitrators may be more sympathetic to the claimant’s position.
Real-World Applications: Arbitrator Selection in Action
Case Study 1: Investor Recovery in a Fraud Dispute
Bakhtiari & Harrison represented an investor defrauded by a broker. The firm strategically selected public arbitrators with experience in investor protection cases. This approach resulted in an empathetic panel that awarded full restitution to the client.
Case Study 2: Defense Against Allegations of Negligence
A financial advisor accused of negligence relied on Bakhtiari & Harrison’s expertise in selecting a panel with non-public arbitrators familiar with industry standards. The arbitrators recognized the advisor’s adherence to compliance protocols, leading to a favorable decision.
Advantages of Bakhtiari & Harrison’s Arbitrator Selection
- Experience in Securities Law
The firm’s deep knowledge of securities law and FINRA regulations enables them to anticipate how arbitrators might interpret complex legal issues. - Proven Strategies
Bakhtiari & Harrison’s track record demonstrates their ability to leverage arbitrator selection to their clients’ advantage. - Client-Centered Approach
By involving clients in the selection process, the firm ensures that their concerns and objectives are prioritized. - Adaptability
Whether representing claimants or respondents, the firm tailors its selection strategies to align with the case’s unique dynamics.
Conclusion
Arbitrator selection is one of the most critical components of a successful FINRA arbitration strategy. Bakhtiari & Harrison’s meticulous approach, grounded in research, client collaboration, and legal expertise, ensures that their clients benefit from an impartial and knowledgeable panel. With their unparalleled ability to navigate the complexities of arbitrator selection, Bakhtiari & Harrison continues to deliver outstanding results in securities disputes. Contact the firm today to learn how their expertise can support your case.