Is there a limitation on the amount of damages that can be awarded in a securities arbitration case?

Yes, there is a limitation on the amount of damages that can be awarded in a securities arbitration case in Alabama. The limitation varies depending on the type of claim being made and the amount of damages sought. In a civil action, the maximum award that can be obtained is limited to the “greater of $100,000, or the amount of actual damages proven.” If the arbitration involves a claim for damages concerning a security offering under the Alabama Securities Act, the maximum award that can be obtained is limited to the “greater of $1 million, or three times the amount of damages proven.” In addition to the statutory limits on damages, the amount of damages that can be awarded in arbitration is also affected by the rules of the arbitration forum chosen. For example, the FINRA Code of Arbitration Procedure, which is used for certain securities arbitrations, contains a limitation of $2.5 million for individual damages awards, including punitive damages and costs. Finally, when assessing damages in a securities arbitration case, the arbitrators must consider the facts of the case, including any mitigating factors, and the ability of the wrongdoer to pay the award. This means that even if the maximum award for a particular type of claim is high, the award may be reduced depending on the facts of the case.

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