What is arbitration?

 

Arbitration is a quick, effective and inexpensive way of recovering your investment losses, without the anxiety, stress and expense of taking your broker or brokerage house to court. It is an informal hearing of your claim by a third party called an arbitrator. You can think of it as a type of informal “mini-trial”.

 

Who is the Arbitrator?

The arbitrator is neutral, impartial, and independent and has the relevant legal qualifications, technical expertise and practical experience to hear and make a decision on your case. Often arbitrators are retired judges or senior lawyers. The arbitrator acts as a “judge and jury”, and after hearing all the evidence and arguments presented by both sides, makes a final and binding decision, which cannot usually be appealed.[1]  The arbitrator’s decision and award has the same force and effect as an order from a Supreme Court judge. The arbitrator has the discretion of awarding the costs of the arbitration hearing to the winning party.

 

What are Arbitration Hearings Like?

Arbitration hearings are usually informal affairs. They are often held in offices or boardrooms or other mutually convenient locations. An arbitration hearing may also be held via a conference call or even in writing if both parties agree. The usual strict rules of court procedure are relaxed, and evidence that may not be admissible in a court case is often admissible in arbitration hearings. Also, in arbitration, there are not the many procedural stalling and delaying opportunities that are available in the traditional court system.

 

The IIROC Arbitration Program

IIROC have contracted with the ADR Chambers to be their sole providers of arbitration services for clients of members of IIROC. Arbitration for securities issues against an IIROC member is compulsory for IIROC members to attend. They cannot refuse to go to arbitration to resolve your investment loss claim. The IIROC arbitration program is available to all IIROC member firms and their clients in Ontario, New Foundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick, Manitoba, Saskatchewan Alberta, British Columbia, the North West and Yukon Territories and Nunavut. The ADR chambers are a national alternative dispute resolution organization completely independent of IIROC.

 

Who should use the Arbitration Process?

 

·                    Anyone who has lost money as a result of the negligence, misconduct, misrepresentation, mismanagement or fraud of their financial advisor, and has not been able to recover their losses from their brokerage house/ financial institution.

·                    Anyone who wants their investment loss claim to be finalized quickly and does not want to wait for years and years, sometimes as much as five years, by suing through the courts.

·                    Anyone who does not want to spend upwards of $120,000 on legal fees by taking their brokerage house to court.

 

The Statute of Limitations

 

The Statute of Limitations applies to arbitration hearings and in general the statute states that anybody, who has a claim, must bring such a claim within two years after first becoming aware of such claim or when they should have become aware of such claim. In this regard you should consult a lawyer to determine whether you have still got time to file an arbitration claim or whether your claim is time barred by the Statute of Limitations.

 

 

How much does it Cost?

 

·                    There is a filing fee of $450 that must be filed with the ADR Chambers to start the arbitration process. This amount will be credited to your share of the total arbitration cost and fee.

·                    The arbitrator’s fees of $350 per hour.

·                    Room rental of $250 per day.

These arbitration costs shall in principal be divided equally between the parties however the arbitrator may in his discretion, modify the allocation of arbitration costs between the parties

·                  Your representative fees.

 

Who are we, and how can we help with your arbitration claim?

 Who are we?

·                  MacGold Direct Inc has been helping investors for over 15 years recover their investment losses caused by their broker’s negligence, misconduct, mismanagement misrepresentation or fault. Have a look at the rest of our website www.macgold.com   which will give you more information about MacGold and the services we provide to “burnt investors”

 

Why should you use our services?

 

 

Generally

We case manage your arbitration claim from start to finish, doing everything necessary to get you a favourable result or settlement.

 

Specifically

1.                We are experts in securities litigation.

 

2.                We guide you through the arbitration process and focus on reducing your emotional stress.

 

3.                We have skilled advocacy in investment loss recovery cases, and are experienced and skilled in arbitration cases.

 

4.                Robert Goldin, during his years of legal practice, was a successful, experienced legal litigator.

 

5.                We have an in-depth knowledge and experience of the rules and regulations of the securities industry.

 

6.                We ensure that each aspect of your case is fully developed.

 

7.                Many issues raised at arbitration are extremely complex and it is essential to have someone in your corner who knows the ins and outs of securities legislation, the arbitration process, what arbitrators consider important and usual defenses raised by brokerage houses.

8.                We are expert settlement negotiators and represent you at all settlement discussions.

9.                We can decide whether it may be more advantageous for you to have your arbitration claim (with the other parties consent) converted to mediation (with an ADR appointed mediator, who is usually a retired Supreme Court judge or senior lawyer).

 

10.           We help you formulate your claim.

 

11.           We file your arbitration claim with the ADR Chambers.

 

12.           We attend and represent you at all preliminary pre arbitration meetings with the arbitrator and the representatives of your brokerage house.

 

13.           If there are procedural matters arising before the hearing on which the parties are unable to reach an agreement, we represent you at such preliminary hearing before the arbitrator for a decision.

 

14.           If the other side makes a similar procedural application to the arbitrator we represent you at such hearing.

 

15.           We interview any witnesses and take their statements.

 

16.           We prepare a book of all relevant documents of your case and serve it on the other side and file it with the ADR Chambers.

 

17.           We peruse your brokerage house’s book of documents to ensure that all relevant documents are disclosed and if not, we then make an application to the arbitrator for an order compelling delivery of the missing documents.

 

18.           We obtain an expert witness to help bolster your case and arrange for him to provide us with an expert’s report which is then served on the other party as well as on the arbitrator.

 

19.           We consider the other side’s expert report.

 

20.           We prepare you for the arbitration hearing.

 

21.           At the arbitration hearing we argue your case before the arbitrator, then cross examine the brokerage houses witnesses including their expert witness.

 

22.           We get a written judgment and discuss it with you.

 

 

Can you Represent Yourself in an Arbitration Hearing?

Yes you can. However it is generally not recommended unless the case is too small to justify hiring a representative. NASD now FINRA’s (in the US) statistics suggest that investors with representation fare better than those investors who represent themselves. Often the brokerage house is represented by the best lawyers money can buy. Representing yourself against these high powered, tier one lawyers, is akin to a lamb being led to the slaughter.

 

Bottom Line: Our advice to you is ---- either consider using our services, or someone else’s services ---- BUT DON’T GO IT ALONE!