If my broker dispute is handled in mediation, will the decision be considered binding?
Mediation is a voluntary dispute resolution process that is non-binding.
The mediator is a neutral third-party who will facilitate negotiations
between you and the brokerage firm; however, he or she will not be the
one to make a final decision. The mediator may provide an evaluation of
the claims and defenses and may also recommend a settlement to both sides
but cannot force either party to accept the recommendation.
Since the mediation process is non-binding, most brokerage firms will not
pay the full value of the claims in a mediation session unless a formal
FINRA arbitration claim is also pending. Mediation and arbitration can
occur on parallel tracks so that if an acceptable compromise is not reached
during mediation, the formal arbitration process can continue and move
toward a final hearing (which will result in a binding determination of
During final arbitration hearing, you will have the chance to show an impartial
panel of arbitrators evidence that backs your claim. You can also bring
in witnesses. Once the panel reaches their decision, which is known as
an award, it is considered final and binding.
Attempting to resolve a broker dispute on your own is not advisable. The
brokerage firm will try to limit their liability and will hire sophisticated
lawyers who are well-versed in the intricacies of the securities laws
Out attorney Chad Kohler put together this video giving more information
on what to expect during a mediation.
For a free case evaluation, contact an experienced
securities arbitration attorney at Meyer Wilson, LPA by calling toll-free (888) 390-6491 or filling out our