Photo: Andrew Gaber, Tom Werge, Greg Corbin
Despite the tribulations and difficulties this year, Werge Law ended it on a high note. Following two weeks in a virtual arbitration final hearing, our client received a large arbitration award including attorney fees. Even better, the award was paid in full before the end of the year!
The Background
Our client Andrew Gaber, a young and talented financial advisor, built a financial practice together with a partner who had been in the industry for many more years. After the relationship soured in 2018, Andrew left the practice and started anew, while entering into negotiations for the buyout of his ownership interest in the successful company. Rather than paying the reasonable value of his share, the former partner instead falsely claimed that our client never owned any part of the business. Nevertheless, Andrew conducted his transition to working for a new company while at all times staying above-board and being very careful to not take any actions to poach clients or do anything else untoward that might later be used against him by his former partner.
The Lawsuit and Arbitration
After the former partner zeroed out Andrew’s membership interest in the company (as shown through tax filings), in October 2019, we filed suit in state court seeking recovery of the value of his interest in the company. The other side filed a motion to compel arbitration in FINRA, and the matter proceeded to be decided by a panel of three FINRA arbitrators. And although Andrew took every step he could to make sure his transition to his new employer complied by all applicable legal, ethical, and contractual standards, his former partner nevertheless brought claims for significant damages against him by alleging business interference, unfair competition, and even fraud.
The Virtual Trial
The final arbitration hearing was set for a week in August. Attorneys Tom Werge and Greg Corbin represented Andrew during the virtual trial held over Zoom. We became adept at using technology to our advantage, including setting up a trial room where we conducted the trial together with our client, equipped with microphones, lighting, a wired Internet connection, and everything necessary to ensure the hearing went smoothly from our side. But after the former partner’s lawyer kept Andrew on the stand for the first four days, the final hearing had to be continued for an additional non-consecutive week, which concluded at the beginning of October.
The Award
In early November, the arbitrators decided the matter wholly in favor of Andrew. The award was substantial, and it also included a significant sum of attorney fees. The arbitrators also dismissed all of the claims made by the other side. And the other side even paid the full amount of the award before the end of 2020! We are thrilled to have been able to help our client achieve such a successful outcome, especially after he fought so hard for the last two years to make it happen.
WBI Management et al. v. Gaber, Arbitration Award, November 5, 2020, FINRA Dispute Resolution Services #19-03430.