Panel Acted in Manifest Disregard of Law, 1st Circuit Rules

BOSTON - An arbitration panel acted in manifest disregard of the law when it dismissed certain claims with prejudice without first imposing lesser sanctions as required by the National Association of Securities Dealers Inc., the 1st Circuit U.S. Court of Appeals ruled June 27. Kashner Davidson Securities Corp. v. Mscisz, No. 07-1231 (1st Cir.).

At issue was a NASD arbitration between Steven Mscisz, Mark Mscisz, and Lynda Mscisz and Kashner Davidson Securities Corp. In the course of resolving the contract and securities dispute, the arbitration panel dismissed several of the Msciszes' counterclaims against Kashner and third-party claims against Kashner.