Important Differences between FINRA Arbitration and Court

Arbitration is intended to be a more cost efficient and time efficient way to resolve disputes, as compared to a court proceeding. To achieve these efficiencies, arbitration is more streamlined than court litigation. One way that the time frame is shortened is that arbitration results are binding. Whereas parties in a court case can appeal the result they get at the trial court level, arbitration awards generally are final and cannot be appealed. The lack of appeals often eliminates years from the time length of a case.

Another way that FINRA arbitration achieves efficiencies is by eliminating certain procedures that exist in court, including the lack of most motions to dismiss, the lack of motions for summary judgment, and the general lack of depositions. The lack of these procedural burdens makes arbitration faster and less expensive than court. The lack of these procedures also provides fewer opportunities for brokerage firms to defeat an investor’s claims before the final hearing (the trial stage of a FINRA arbitration).

Notwithstanding the lack of certain court procedures, FINRA arbitration has its own set of procedural rules than can be difficult to navigate if you are unfamiliar with the process. Brokerage firms typically hire skilled defense counsel to represent them in FINRA arbitrations and investors would be unwise to attempt to pursue their claims without the guidance of an experienced FINRA arbitration attorney.

Contact Us Today

Dimond Kaplan & Rothstein’s FINRA arbitration lawyer have represented investment fraud and stockbroker misconduct victims for more than 20 years. Our lawyers also have served on FINRA’s rules committee and have in-depth knowledge and understanding of the FINRA arbitration process. We represent investment loss clients from our office in Miami, West Palm Beach, Los Angeles, and New York. If you believe a stockbroker or a brokerage firm or Wall Street fraud caused your investment losses, contact a DKR investment fraud lawyer for a free case evaluation.

EN   ES   PT     

Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182