BrokeAndBroker: Dead Man Talking -- Customer dies in middle of FINRA Arbitration
In a Statement of Claim filed in March 2009 and amended thereafter, Craig Kneisly as the Successor Trustee of the Alf Co., Inc. Retirement Trusts and as Trustee of the Marietta Kneisly Trust sought betweeen $100,000 to $500,000 in compensatory damages, rescission, and other damages and costs as a result of alleged unauthorized investments in the DVS group for Claimants' accounts. Among the specific causes of action were unauthorized trading, breach of contract, and negligence.In the Matter of the Arbitration Between Craig Kneisly as the Successor Trustee of the Alf Co., Inc. Retirement Trusts and as Trustee of the Marietta Kneisly Trust, Claimants, versus Morgan Keegan & Co., Inc., Respondent (FINRA Arbitration 09-01592 September 9, 2010). Respondent generally denied the allegations and asserted affirmative defenses.
On June 12, 2009, after the claim was filed, Robert Kneisly passed away and Claimants sought to amend the Statement of Claim to replace the deceased with Craig Kneisly. Respondent Morgan Keegan then moved to bar testimony or evidence regarding statements by Robert Kneisly pursuant to the Tennessee Dead Man's Statute and federal and state rules of evidence. Claimants argued that formal rules of evidence to not apply in FINRA arbitrations and that the motion to bar the deceased's testimony or evidence were improper.
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