What types of damages can be awarded in a securities arbitration case?
In a securities arbitration case in Texas, there are various types of damages that can be awarded to the claimant. These damages are designed to compensate the claimant for any losses suffered due to the misconduct of the respondent. The most common type of damages awarded in securities arbitration cases is compensatory damages. These damages are aimed at restoring the claimant to the same position he or she was in before the misconduct took place. This can include restitution of any losses suffered, such as money lost from investments or interest on any loans taken out to fund the investments. Another type of damages that may be awarded are consequential damages, which are designed to reimburse the claimant for any additional losses suffered due to the respondent’s misconduct. Generally, these damages cover expenses or losses that were not direct consequences of the respondent’s actions, such as attorney’s fees or the cost of hiring an expert witness. Finally, exemplary damages may be awarded if the misconduct was particularly egregious. These damages are designed to punish the respondent for their actions and can be quite substantial. In sum, a securities arbitration case in Texas can potentially include compensatory, consequential, and exemplary damages. All of these damages are meant to reimburse the claimant for any losses suffered due to the respondent’s misconduct.
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