Preview
FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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In the Matter of the Application of Petition Index No.
RBC WEALTH MANAGEMENT, a division of RBC
CAPITAL MARKETS, LLC,
Petitioner,
VERIFIED PETITION
Pursuant to CPLR Article 75 to Confirm Arbitration TO CONFIRM ARBITRATION
Award AWARD
- against -
DAVID WEIGEL,
Respondent.
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Petitioner RBC Wealth Management, a division of RBC Capital Markets, LLC (“RBC”),
through its counsel Dorsey & Whitney LLP, alleges as follows in support of its Verified Petition
to Confirm Arbitration Award pursuant to CPLR 7510 and the Federal Arbitration Act.
PARTIES
1. At all relevant times, Petitioner is a limited liability company organized
and existing under the laws of the State of Minnesota, with its principal place of business located
in New York.
2. Upon information and belief, at all relevant times, Respondent David
Weigel (“Weigel”) has been a citizen and resident of New York County.
JURISDICTION AND VENUE
3. The Court has jurisdiction over this proceeding under CPLR 7502.
4. Venue in the County of New York is proper pursuant to CPLR 7502
because it is the county in which Weigel resides and the underlying arbitration was held within
the County of New York.
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STATEMENT OF FACTS
5. RBC is broker-dealer and member firm of the Financial Industry
Regulatory Authority (“FINRA”).
6. From approximately December 2013 to August 17, 2020, RBC employed
Weigel as a financial advisor at a branch office located in Manhattan. At all relevant times,
Weigel was an associated person as defined by FINRA.
7. Both RBC and Weigel are subject to FINRA Rules, including its
requirement that disputes arising among FINRA members and associated persons must be
arbitrated. FINRA Rule 13200(a) provides, “Except as otherwise provided in the Code, a dispute
must be arbitrated under the Code if the dispute arises out of the business activities of a member
or an associated person and is between or among: Members; Members and Associated Persons;
or Associated Persons.”
8. As is customary within the financial services industry, in order to assist an
employee’s transition to a new firm and as a recruitment and retention inducement, the employee
often receives a loan secured by a Promissory Note. The loan is generally immediately due and
payable in full in the event the employee leaves for any reason prior to the maturity date. Under
such a circumstance, the employee is obliged to repay the outstanding balance of the loan, plus
accrued interest.
9. Weigel received five such loans from RBC, and he subsequently failed to
repay the outstanding principal on those loans following his resignation from RBC on August 17,
2020.
10. On or about December 16, 2020, RBC filed an arbitration claim with the
FINRA Dispute Resolution Services office. (See Exhibit A.) The next day, FINRA served the
Statement of Claim on Weigel. On February 22, 2021, Weigel signed and filed a uniform
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submission agreement in which he agreed to submit the dispute “to arbitration in accordance
with FINRA By-Laws, Rules, and Code of Arbitration Procedure.” (See Exhibit B.)
11. On July 21, 2021, FINRA appointed Jeffrey Alan Helewitz (Chairperson),
Josefa Antonia Sicard-Mirabal, and Josian Antonie as the three-member arbitration Panel (the
“Panel”).
12. The Panel held an initial prehearing conference on November 11, 2021,
and it held subsequent prehearing conferences on December 7, 2021; March 2, 2022; May 5,
2022; and May 19, 2022. The full three-member Panel was present for all of the prehearing
conferences except for the session held on March 2, 2022 at which only the Chairperson was
present.
13. Following discovery, the Panel held an evidentiary hearing at FINRA’s
offices in Manhattan on June 12 and 13, 2022 at which the parties called witnesses, introduced
evidence, and made arguments. Attorney David Robbins represented Weigel during the
evidentiary hearing and for the entirety of the proceeding. The Panel closed the hearing on June
13, 2022.
14. On July 8, 2022, the Panel issued a binding and final arbitration award
(the “Final Award”) in favor of RBC. (See Exhibit C.) The Panel’s Final Award included
$1,117,656.38 in compensatory damages for unpaid principal, $78,563.02 in accrued interest,
$5,173.61 in costs, and $215,854.85 in reimbursable attorneys’ fees, for a total monetary award
of $1,417,247.86. (Id.) The Panel further awarded RBC post-judgment interest accruing at
varying amounts and ordered Weigel “to return to [RBC] all of [RBC’s] confidential material in
[Weigel’s] possession.” (Id.)
15. Because Weigel failed to honor the Final Award, RBC now respectfully
urges this Court to confirm the Final Award and to enter judgment in conformity with it.
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16. No previous application has been made for the relief sought herein.
17. A copy of a proposed Order Confirming Arbitration Award is being
submitted herewith.
FIRST CAUSE OF ACTION
(CONFIRMATION)
18. Petitioner repeats and re-alleges Paragraphs 1 through 17, above, as if
fully set forth herein.
19. This Petition is brought within one year after delivery of the Final Award
to Petitioner and Respondent.
20. The Final Award has not been vacated or modified upon any ground
specified in Sections 10 or 11 of the Federal Arbitration Act or CPLR 7511.
21. By reason of the foregoing, Petitioner is entitled to an order confirming
the Final Award pursuant to Section 9 of the Federal Arbitration Act.
WHEREFORE, Petitioner respectfully requests that, pursuant to CPLR 7510 and the
Federal Arbitration Act, this Court
(a) Enter an Order confirming the Final Award in its entirety;
(b) Direct entry of judgment in favor of Petitioner and against Respondent for
$1,417,247.86 together with additional interest provided by the Final
Award in the amount of $57.91 per diem as accrued since June 16, 2022
and continuing until paid;
(c) Post-judgment interest pursuant to CPLR 5003; and
(d) Award RBC such other relief as this Court deems just and proper.
Dated: September 6, 2022 DORSEY & WHITNEY LLP
By: /s/Elizabeth R. Baksh___________
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Elizabeth R. Baksh
51 West 52nd Street
New York, New York 10019
(212) 415-9200
Attorney for Petitioner
RBC Wealth Management, a division of RBC
Capital Markets, LLC
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VERIFICATION
STATE OF MINNESOTA )
)ss:
COUNTY OF HENNEPIN )
Casey Jarchow, being duly sworn, deposes and says:
I am a Director and Senior Counsel of RBC Capital Markets, LLC, the petitioner
in this proceeding. I am authorized to sign this Verification on behalf of RBC Capital Markets.
LLC. I have read the foregoing Petition To Confirm Arbitration Award and know the contents
thereof, and the same is true as to my knowledge, except to those matters stated to be alleged
upon information and belief, and as to those matters I believe them to be true.
C sey J chow
Sworn to before me this
7.-6 day of Au1ust 2022
Notary PWlic
JENNIFERJO H FRANCIS
9
NotaryPublic
My o is Expires
January31, 2023
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Preview
FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK ------------------------------------ X In the Matter of the Application of Petition Index No. RBC WEALTH MANAGEMENT, a division of RBC CAPITAL MARKETS, LLC, Petitioner, VERIFIED PETITION Pursuant to CPLR Article 75 to Confirm Arbitration TO CONFIRM ARBITRATION Award AWARD - against - DAVID WEIGEL, Respondent. ------------------------------------X Petitioner RBC Wealth Management, a division of RBC Capital Markets, LLC (“RBC”), through its counsel Dorsey & Whitney LLP, alleges as follows in support of its Verified Petition to Confirm Arbitration Award pursuant to CPLR 7510 and the Federal Arbitration Act. PARTIES 1. At all relevant times, Petitioner is a limited liability company organized and existing under the laws of the State of Minnesota, with its principal place of business located in New York. 2. Upon information and belief, at all relevant times, Respondent David Weigel (“Weigel”) has been a citizen and resident of New York County. JURISDICTION AND VENUE 3. The Court has jurisdiction over this proceeding under CPLR 7502. 4. Venue in the County of New York is proper pursuant to CPLR 7502 because it is the county in which Weigel resides and the underlying arbitration was held within the County of New York. 1 of 6 FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 STATEMENT OF FACTS 5. RBC is broker-dealer and member firm of the Financial Industry Regulatory Authority (“FINRA”). 6. From approximately December 2013 to August 17, 2020, RBC employed Weigel as a financial advisor at a branch office located in Manhattan. At all relevant times, Weigel was an associated person as defined by FINRA. 7. Both RBC and Weigel are subject to FINRA Rules, including its requirement that disputes arising among FINRA members and associated persons must be arbitrated. FINRA Rule 13200(a) provides, “Except as otherwise provided in the Code, a dispute must be arbitrated under the Code if the dispute arises out of the business activities of a member or an associated person and is between or among: Members; Members and Associated Persons; or Associated Persons.” 8. As is customary within the financial services industry, in order to assist an employee’s transition to a new firm and as a recruitment and retention inducement, the employee often receives a loan secured by a Promissory Note. The loan is generally immediately due and payable in full in the event the employee leaves for any reason prior to the maturity date. Under such a circumstance, the employee is obliged to repay the outstanding balance of the loan, plus accrued interest. 9. Weigel received five such loans from RBC, and he subsequently failed to repay the outstanding principal on those loans following his resignation from RBC on August 17, 2020. 10. On or about December 16, 2020, RBC filed an arbitration claim with the FINRA Dispute Resolution Services office. (See Exhibit A.) The next day, FINRA served the Statement of Claim on Weigel. On February 22, 2021, Weigel signed and filed a uniform 2 2 of 6 FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 submission agreement in which he agreed to submit the dispute “to arbitration in accordance with FINRA By-Laws, Rules, and Code of Arbitration Procedure.” (See Exhibit B.) 11. On July 21, 2021, FINRA appointed Jeffrey Alan Helewitz (Chairperson), Josefa Antonia Sicard-Mirabal, and Josian Antonie as the three-member arbitration Panel (the “Panel”). 12. The Panel held an initial prehearing conference on November 11, 2021, and it held subsequent prehearing conferences on December 7, 2021; March 2, 2022; May 5, 2022; and May 19, 2022. The full three-member Panel was present for all of the prehearing conferences except for the session held on March 2, 2022 at which only the Chairperson was present. 13. Following discovery, the Panel held an evidentiary hearing at FINRA’s offices in Manhattan on June 12 and 13, 2022 at which the parties called witnesses, introduced evidence, and made arguments. Attorney David Robbins represented Weigel during the evidentiary hearing and for the entirety of the proceeding. The Panel closed the hearing on June 13, 2022. 14. On July 8, 2022, the Panel issued a binding and final arbitration award (the “Final Award”) in favor of RBC. (See Exhibit C.) The Panel’s Final Award included $1,117,656.38 in compensatory damages for unpaid principal, $78,563.02 in accrued interest, $5,173.61 in costs, and $215,854.85 in reimbursable attorneys’ fees, for a total monetary award of $1,417,247.86. (Id.) The Panel further awarded RBC post-judgment interest accruing at varying amounts and ordered Weigel “to return to [RBC] all of [RBC’s] confidential material in [Weigel’s] possession.” (Id.) 15. Because Weigel failed to honor the Final Award, RBC now respectfully urges this Court to confirm the Final Award and to enter judgment in conformity with it. 3 3 of 6 FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 16. No previous application has been made for the relief sought herein. 17. A copy of a proposed Order Confirming Arbitration Award is being submitted herewith. FIRST CAUSE OF ACTION (CONFIRMATION) 18. Petitioner repeats and re-alleges Paragraphs 1 through 17, above, as if fully set forth herein. 19. This Petition is brought within one year after delivery of the Final Award to Petitioner and Respondent. 20. The Final Award has not been vacated or modified upon any ground specified in Sections 10 or 11 of the Federal Arbitration Act or CPLR 7511. 21. By reason of the foregoing, Petitioner is entitled to an order confirming the Final Award pursuant to Section 9 of the Federal Arbitration Act. WHEREFORE, Petitioner respectfully requests that, pursuant to CPLR 7510 and the Federal Arbitration Act, this Court (a) Enter an Order confirming the Final Award in its entirety; (b) Direct entry of judgment in favor of Petitioner and against Respondent for $1,417,247.86 together with additional interest provided by the Final Award in the amount of $57.91 per diem as accrued since June 16, 2022 and continuing until paid; (c) Post-judgment interest pursuant to CPLR 5003; and (d) Award RBC such other relief as this Court deems just and proper. Dated: September 6, 2022 DORSEY & WHITNEY LLP By: /s/Elizabeth R. Baksh___________ 4 4 of 6 FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 Elizabeth R. Baksh 51 West 52nd Street New York, New York 10019 (212) 415-9200 Attorney for Petitioner RBC Wealth Management, a division of RBC Capital Markets, LLC 5 5 of 6 FILED: NEW YORK COUNTY CLERK 09/06/2022 01:51 PM INDEX NO. 653224/2022 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 09/06/2022 VERIFICATION STATE OF MINNESOTA ) )ss: COUNTY OF HENNEPIN ) Casey Jarchow, being duly sworn, deposes and says: I am a Director and Senior Counsel of RBC Capital Markets, LLC, the petitioner in this proceeding. I am authorized to sign this Verification on behalf of RBC Capital Markets. LLC. I have read the foregoing Petition To Confirm Arbitration Award and know the contents thereof, and the same is true as to my knowledge, except to those matters stated to be alleged upon information and belief, and as to those matters I believe them to be true. C sey J chow Sworn to before me this 7.-6 day of Au1ust 2022 Notary PWlic JENNIFERJO H FRANCIS 9 NotaryPublic My o is Expires January31, 2023 6 of 6