Mediation Services

FINRA arbitration and securities litigation in federal or state courts can often pose tremendous uncertainty for all of the parties concerned. The true value of a given case or stringent adherence to legitimate theories can sometimes be lost on a panel. The process of getting to and completing a FINRA arbitration or a trial almost always involves considerable time and expense, particularly in terms of attorney's fees, adding costs that may ultimately be unnecessary and that may further distort the case's value. Parties may have unrealistic expectations about the case, and emotions can run high, which can be a detriment to effectively resolving often complex securities law issues.

The right mediator, experienced in the securities business and compliance issues, and a skilled veteran in litigating these cases, can very often achieve more cost-efficient results for parties on both sides of FINRA arbitrations or securities actions filed in state or federal court, often eliminating significant costs and much of the uncertainty associated with these proceedings. What makes someone the "right" mediator for a given case is the ability not only to quickly discern the relative merits of the positions taken by each side, but also to communicate that insight in a manner that is dispassionate and unbiased. The right mediator may be able to get parties, whose views on the facts and the dollars involved are often with radically different, to see things more realistically, and resolve a matter in one day instead of several days or weeks.

Helping clients in Michigan, Florida and across the U.S. resolve complex disputes.

Seeking a Positive Result in the Most Appropriate Forum for Your Case

In recent years, particularly claimants' attorneys, those representing investors, have shared the collective impression that mediation is a forum for "industry" attorneys to put on a "show of force," or to "beat up" claimants before trial without any intent to settle. Many attorneys representing broker-dealers have had the same impression about their counterparts. Such thinking can be detrimental to both investors and to brokerage firms, as the arbitration process, known for its cost-effectiveness relative to the court system, becomes less so.

Thankfully, that viewpoint is changing. Recent FINRA statistics show that more parties are successfully mediating their disputes. From 2009 to 2010, mediation cases climbed 46 percent, and mediation cases closed for that period are up 39 percent. It is interesting to note that the number of new arbitration cases generally fell about 20 percent in number for the same period.*

The nature of FINRA arbitration cases has changed, particularly over the past three to five years. As compliance and supervisory procedures and systems improve, cases are now driven more by issues relating to particular investment products than more straightforward issues of churning or unauthorized trading. As the nature of cases grows more complex, parties need not only arbitration panels to grow in knowledge and sophistication, but that mediators do as well, perhaps more so.

A Strong Track Record of Success for Parties on Both Sides of Mediation

The Hertz Schram PC Securities Team, with attorneys who have represented investors as well as brokerage firms, and who have broad and deep experience in regulatory and compliance matters as compliance officers and general counsel, as well as more than 30 years of experience in mediating securities cases, has the "right" mediators for all types of disputes. One barometer of that quality is the fact that our former adversaries often come to us to mediate their disputes with other parties.

Call for an Initial Consultation

Contact our office today to learn more about our nationwide mediation services in a consultation with one of our Michigan securities litigation lawyers. You can reach us by calling toll free at 866-775-5987 or via e-mail.

*Statistics reported by the Financial Industry Regulatory Authority at as of February, 2011.