FINRA Settlement Shaves 2/3rds off Employee Promissory Note

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 Let's All Settle Down: Former Employer and Employee Work It Out At the Last Minutehttp://www.brokeandbroker.com/index.php?a=blog&id=399 Following former associated person Jonathan Ted Marcu’s termination of his employment,  a dispute arose concerning the repayment of a promissory note (Note) and monies owed; and, as a result, his former employer, SMH Capital, Inc., filed a FINRA Arbitration Statement of Claim against Marcu. In the Matter of the Arbitration Between SMH Capital Inc., Claimant, versus Jonathan Ted Marcu, Respondent (FINRA Arbitration 08-04963, May 3, 2010).  Claimant SMH sought $112,500 in compensatory damages with interest at the rate of 5%, reasonable attorneys’ fees, expenses, and costs.  Loading for Bear? Respondent Marcu denied the allegations and asserted affirmative defenses including: 

  • Claimant failed to state a claim upon which relief could be granted;
  • Claimant rendered Respondent contractually unable to perform under any employment agreement and/or the Note;
  • Claimant affirmatively committed acts that constructively discharged Respondent from further performance under the Note and made him unable to perform without breaching the Note;
  • Respondent was fraudulently induced into entering into an employment agreement and the Note;
  • Claimant is stopped from enforcing the Note as a result of its acts, commissions, representations, and course of conduct, and for maintaining a position inconsistent with one which it had previously taken;
  • Claimant was barred from recovering attorneys’ fees or costs;
  • Respondent was entitlted to a set-off for losses incurred as a result of Claimant’s conduct
  • Claimant breached the covenant of good faith and fair dealing in any agreement and/or promissory note;
  • Claimant failed, in the conduct of its business, to observe high standards of commercial honor and just and equitable principles of trade as required under FINRA Rule 2110; and
  • Claimant failed to attach any agreement and/or promissory note to its Statement of Claim.

TO READ THE INTERESTING RESOLUTION OF THIS CASE -- WHICH RESULTED IN A NEARLY 67% DISCOUNT FOR RESPONDENT -- VISIT:http://www.brokeandbroker.com/index.php?a=blog&id=399  

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