Originally From:
Securities Arbitration: Practice and Forms - Looseleaf
Securities Arbitration: Practice and Forms - Electronic
CHAPTER 7 - Preview Page
Pre-Hearing Matters
§ 7.01 Selection of Arbitrators
[1]—Neutral List Selection System
The Neutral List Selection System (NLSS), implemented by the NASD in November, 1998, and substantially revised in 20041 allows the parties to an arbitration a significant amount of control over who will hear their claim. NLSS software generates, for each party, lists of arbitrators in a neutral, random process.
The software selects arbitrators by sorting through four (4) basic factors. These are: classification as a public or non-public arbitrator, geographic location of the hearing, any conflict that may exist with a
party and the arbitrator’s placement in the rotation of panelists.2 If the parties request, expertise in a subject matter may be added to the selection criteria.3
NLSS selects panelist by rotation. Two lists are generated: Public and Non-Public. Accordingly, once selected (either by the software or by staff selection in certain cases), the arbitrator’s name goes to the
bottom of the appropriate list. This occurs even if the panelist is stricken from the panel or if the matter is settled. However, if not selected due to lack of requested expertise or conflict, the arbitrator’s name stays on top of the rotation to be selected for a future matter.
Chapter 7 - Pre-Hearing Matters
§ 7.01 Selection of Arbitrators
[1] Neutral List Selection System
[2] List Selection Process
[3] Deciding Whether to Strike an Arbitrator
[4] Disqualification Due to Conflict of Interest or Bias
[5] Replacement Procedure for Disqualification or Other Disability
of Arbitrators
[6] Claims Where Both Parties Are Members
[7] Employment Claims
§ 7.02 Discovery
[1] Relative Informality of Discovery in Arbitration
[2] Discovery Generally
[3] Document Production
[4] Information Requests
[5] Depositions
[6] Subpoena Process
[7] Admissibility
[8] Non-Compliance and Sanctions
§ 7.03 The Importance of the Discovery Guide Documents and Additional
Documents
[1] Documents Helpful to Claimants
[a] New Account Forms/Customer Agreements
[b] Account Statements
[c] Confirmations
[d] Order Tickets
[e] Time & Sales Volume Reports
[f] Commission/Wage Runs
[g] Exception Reports/Activity Runs
[h] Contra-Side Transaction Reports
[i] Discretionary Forms/Powers of Attorney
[j] Option Agreements/Risk Disclosure Statements
[k] Prospectuses
[1] Documents Regarding the Broker
[m] SRO Documents
[n] Compliance/Administrative Manuals
[o] Correspondence and Telephone Records
[p] Account Analyses
[q] Holding/Posting Pages
[r] Blotters
[s] Calendar/Appointment Book
[t] Margin Records
[u] Computers
[v] Witnesses
[2] Documents Helpful to Respondents
[a] Other Brokerage Accounts
[b] Tax Returns
[c] Bank Accounts
[d] Diaries, Notes or Correspondence
[e] Telephone Records
[f] Other Litigations/Arbitrations
[g] Other Investments/Documents
[h] Financial/Business Periodicals
[i] Account Analysis
[3] Documents with Respect to Experts
[4] Other Sources of Information: The Internet
§ 7.04 Initial Pre-Hearing Conference
§ 7.05 Pre-Hearing Motions
[1] Motion to Dismiss
[2] Motion for More Definite Statement
[3] Motion to Join, Consolidate or Sever
[4] Motion for Change of Venue
[5] Motion to Compel Discovery
[6] Motion to Preclude Defenses
§ 7.06 Location of Hearings
W. Reece Bader is a Partner in the Frankfurt office of Orrick and is a member of the Securities Litigation/Regulatory Group. Prior to moving to the Frankfurt office in 2008, Mr. Bader was located in the firm's Paris, Washington, D.C, Silicon Valley, New York and San Francisco offices. He has concentrated his practice in the area of securities and futures litigation since 1970. He has extensive experience, including substantial jury and non-jury trial work in broker-dealer litigation including securities, commodities and public finance. He also handles appellate matters and has represented the Securities Industry Association as amicus curiae in broker-dealer litigation. He has acted as lead defense counsel in complex class actions involving initial public offerings and derivative suits, both on behalf of underwriters, companies and officers and directors. He also regularly represents broker-dealers and individuals in both SEC and SRO enforcement actions. Mr. Bader has argued cases before the D.C., Second, Third, Ninth and Federal Circuits. He serves as an arbitrator for FINRA, NYSE and NFA, and the Center for Public Resources (Distinguished Neutrals Panel). He is a former member of the National Arbitration and Mediation Committee of the NASDR, past Co-Chair of the Securities Litigation Committee, and past Co-Chair of the Alternative Dispute Resolution Committee of the ABA’s Litigation Section. Mr. Bader is a frequent lecturer and panelist for such organizations as the Practising Law Institute, ALI/ABA, FINRA and the Securities Industry and Financial Markets Association.
