Hiring An Attorney

Securities arbitration is a complex, esoteric area of law, and substantially different than traditional court litigation. So when seeking representation, the first question you should ask is whether the attorney has handled securities arbitration cases in the past. If the answer is no, you may not want to let that attorney experiment with your case. Ask whether the attorney has handled arbitration complaints similar to your case. Find out if he or she has securities industry experience (i.e., experience working for a brokerage firm or for a regulatory organization like the NASD or SEC). Because brokerage firms have the deep pockets to hire the best defense attorneys money can buy, it is imperative that you find an attorney with extensive experience in the securities field and in securities arbitration.

Avoid Non-Attorney Representation At All Costs

Hire only a licensed attorney with experience in this area. Non-attorney representatives, who are generally unregulated, often do more harm to investors than unethical stockbrokers and brokerage firms.

Tasks Your Attorney Will Perform

We cannot speak for all attorneys who represent investors, but we can tell you how our firm approaches a case of potential broker negligence, misconduct or fraud. Our intent is to represent our clients against brokers and investment firms in securities arbitration and litigation, and to do so with insightful, comprehensive and ethical advocacy. Maddox Hargett & Caruso, P.C. will conduct a detailed evaluation of:

• the losses that have been sustained in your brokerage account;
• those losses in regard to the prevailing market conditions during the appropriate time frames;
• the activity in your brokerage account and the commissions charged to your account;
• the pattern of trading in your account;
• the securities recommended and sold to you; and
• whether the investments recommended in your account were suitable for you.

Most importantly, Maddox Hargett & Caruso, P.C. can present our findings in securities arbitration and litigation in a professional and persuasive manner, in an effort to maximize the potential for recovery of some or all of your losses. This will be done in conjunction with our analysis of the various state and federal securities laws that apply. Maddox Hargett & Caruso, P.C. will also recommend the retention of appropriate expert witnesses when necessary. We will prepare the necessary exhibits, do the needed legal research, and prepare each witness in our best effort to present your claims effectively in securities arbitration or litigation.

Use the top toolbar menu to explore our web site. Or contact us directly, via e-mail or by telephone at 1.800.505.5515.

Hire only a licensed attorney with experience in securities law.

Fees And Expenses

There are a variety of ways that a securities arbitration attorney can be compensated.

Probably the most advantageous, from the investor's perspective, is a contingency fee agreement. Under such an arrangement, the attorney will earn a legal fee only if an award or settlement is received and the money is collected. When working together on this basis, the attorney and investor's interests are aligned in that the attorney has as much of an incentive to recover investment losses as the investor. A typical contingency fee is one third to forty percent of the amount recovered.

Some law firms or attorneys do not have the financial backing or the desire to take cases on a contingency basis. These attorneys take cases on an hourly basis, often with an up-front retainer. The client will be charged based on the number of hours the attorney works on the case, with the investor usually billed on a monthly or quarterly basis. Hourly rates for securities attorneys vary from $200 an hour too as high as $500 per hour, with top attorneys charging considerably more.

The Cost of Arbitrating

Three major out-of-pocket expenses are normally associated with a securities arbitration dispute.

First, there is a non-refundable filing fee, due when the investor submits a Statement of Claim. These fees will vary depending on the amount in dispute, but typically run from $1,000 to $1,800. (In the arbitration award, the panel may order one party to reimburse another for all or part of any filing fee paid.) And, at the time of the hearing, the balance of hearing session fees, not less than $50 or more than $1200 for each hearing session, will be due.

The second major expense for arbitration, mediation or settlement, will be the attorney fees. As previously discussed, these fees can be based on an hourly amount or can be based on a contingency fee arrangement. The hours an attorney spends on a case can vary greatly, depending on its complexity.

The third expected expense occurs if you decide to use an expert witness or witnesses. An expert witness is one with specialized knowledge and credentials, whose testimony at the hearing could shed light on the issues. Expert witnesses must be compensated for the time they spend reviewing your case and giving testimony at the hearing; they are paid by the hour. Your attorney may recommend calling an expert witness, and together you will decide whether it would be worthwhile to incur that cost. The total fees for an expert witness normally range from $2,000 to as high as $10,000, depending on the scope of their involvement. These would be paid by the client and would not be part of a contingency arrangement.

Finally, routine office expenses such as copy charges, long distance telephone fees and overnight courier are billed to the client.

Privacy

We understand that the financial information clients share with us is confidential, and must be fastidiously safeguarded. Legally, the protection offered by “attorney-client privilege” takes effect once you formally engage an attorney in a specific matter. At Maddox Hargett & Caruso, P.C. it is our policy to also respect the privacy of any information you impart to us during an initial inquiry or consultation.

Top of Page