What happens if a party fails to comply with a securities arbitration award?

In Florida, if a party fails to comply with a securities arbitration award, the aggrieved party may request that the court enforce the award by filing a petition in the circuit court. The court may grant a writ of execution if the securities arbitration award is not paid. In addition, the court may award attorney’s fees, costs, and interest to the prevailing party. Once the court has enforced the award, the non-compliant party may be subject to contempt of court proceedings. Contempt of court proceedings could include fines, jail time, or a combination of fines and jail time, depending on the state. The aggrieved party may also be able to pursue civil litigation against the non-compliant party. This could include filing a lawsuit or garnishing the non-compliant party’s wages. The non-compliant party may also face disciplinary action from the Financial Industry Regulatory Authority (FINRA). FINRA is responsible for administering the securities arbitration process and may take disciplinary action against a party who fails to comply with an arbitration award. Depending on the severity of the violation, the non-compliant party could face sanctions ranging from a warning letter to a permanent suspension from the securities industry. In addition, the non-compliant party may also face charges from the Securities and Exchange Commission (SEC) for violations of securities law. The SEC can file a civil complaint against the non-compliant party for failing to comply with a securities arbitration award. Depending on the severity of the violation, the party may face financial penalties and possible criminal prosecution. In short, failing to comply with a securities arbitration award in Florida can have serious consequences, including legal action from the court, FINRA, or the SEC.

What happens if a party fails to comply with a securities arbitration award?

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