Margo E. K. Reder

Punitive Damages Are a Necessary Remedy in Broker-Customer Securities Arbitration Cases

The two primary legal doctrines in this Article, punitive damages and securities arbitration, each have produced highly publicized close decisions resulting in inconsistent and contentious litigation. The issues raised by this litigation were joined in the case Mastrobuono v. Shearson Lehman Hutton, Inc., recently decided by the United States Supreme Court. Mastrobuonos result has enormous financial implications for securities firms and their customers, as well as other industries which arbitrate their disputes.