NEW YORK–LAWFUEL – Supreme Court News – Law Jobs –Barry Lax of the Lax Law Firm, counsel for Paul Fitzgerald, Ex-CEO of Josephthal & Co., Inc., a broker/dealer that was purchased by Fahnestock & Co., Inc., in the fall of 2001, issued the following statement:
On February 14, 2007, Judge Carol Edmead of the New York State Supreme Court entered judgment against Oppenheimer & Co., Inc. (formally known as Fahnestock & Co., Inc.) in the amount of $456,161.82 from Judge Edmead’s earlier decision confirming a NYSE Arbitration Panel Award rendered against Oppenheimer and Fahnestock in August 2006.
On December 3, 2004, Mr. Fitzgerald filed an arbitration claim against Oppenheimer and Fahnestock in the NYSE based on their alleged breach of Mr. Fitzgerald’s employment contract. Mr. Fitzgerald had executed an employment agreement with Josephthal, which Oppenheimer and Fahnestock failed to honor after the purchase of Josephthal in the end of 2001 despite specific and detailed representations to do so. After five (5) days of hearings, the NYSE Arbitration Panel confirmed Mr. Fitzgerald’s claims, and rendered a final award against Oppenheimer and Fahnestock in the amount of $445,175.00 in August 2006. Though NYSE arbitration proceedings are binding on the parties, Oppenheimer failed to remit payment of the award amount, and therefore, Mr. Fitzgerald was forced to move to compel judgment on the award, which was granted by Judge Edmead.
Barry Lax, counsel for Mr. Fitzgerald, stated, “It was a hard fought and contentious arbitration with the understanding that even if Mr. Fitzgerald were successful, Oppenheimer would do everything in its power to delay payment. I expect that Oppenheimer will file a Notice of Appeal despite that fact that 9% interest is accruing daily on the award and Oppenheimer’s very limited chance for a successful appeal.”
The Lax Law Firm is a full service law firm specializing in arbitration and litigation in the banking and brokerage industry.