The Moser decision.

• Author: Fedor, Franell
• Position: Letters

"Arbitration and Attorneys' Fees: A Pandora's Box" in the October issue misconstrued the recent decision in Moser v. Barron Chase Securities, Inc. As the attorneys for Ms. Moser, we encourage readers to read the text of the Moser decision itself before giving credence to the October article.

The Moser decision addressed a very specific, and recurring, problem in securities arbitration cases before the National Association of Securities Dealers (NASD). Contrary to the October article, Moser does not provide for a trial court to review the arbitration panel's decision on the merits. Moser does not expand the grounds for vacatur or modification of an arbitration award. Moser does not affect the finality of arbitration awards. Moser does not involve [section] 57.105 or a standard of "manifest disregard of the law."

Moser holds that if the claimant in an NASD arbitration has alleged a statutory cause of action under the Florida Securities and Investor Protection Act, the arbitration award should indicate whether the claimant prevailed on that claim. If the award does not indicate whether the claimant prevailed on his or her statutory claim, the trial court may ask the panel to state whether the claimant prevailed on that claim, so that the court can determine whether the claimant is entitled to prevailing party attorneys' fees under the act.

Although the Florida Securities and Investor Protection Act provides for prevailing party attorneys' fees for claims brought pursuant to that act, the Florida Arbitration Code does not empower the arbitration panel to award attorneys' fees. Rather, unless the parties agree to have the arbitrators determine the issue of attorneys' fees, a court must determine the issue of entitlement to, and the award of, such fees in a proceeding after the arbitration award is rendered.

NASD arbitration awards are drafted by NASD staff members, based on a form completed by the arbitration panel. Rarely does the information provided by the arbitrators state whether the claimant prevailed on his or her statutory claim. Because a claimant's case...