When dealing in securities, questions will, at some point, arise over the cause of investment losses. It happens. If there is a concern that the losses resulted from actions not related to standard market fluctuations, legal action may be taken against the party or parties responsible. Securities litigation is not easy or inexpensive to get through. Do Colorado residents have an alternative to litigation when faced with a securities problem?
The short answer to this question is yes. Litigation is and should be a last resort. Settling cases out of court is ideal; however, there are some cases that really do need an outside party to weigh in on the matter. This is where arbitration comes into play.
Arbitration involves both parties arguing their cases before one or more arbitrators. Once each side has presented its case, the arbitrators will review the information and issue a ruling on the matter. It is, in a sense, an informal trial of sorts. It will not take as long to get through as traditional litigation, and it generally costs less than taking a case to court.
To start arbitration, it is necessary for the complaining party to send notice of intent to arbitrate. This notice must include one’s grounds for filing the dispute. After the opposing party has a chance to respond to the complaint, arbitrators can be chosen and a hearing date set.
Is arbitration the right way to go in order to settle a securities matter? It really depends on the issues with which one is dealing. Sometimes, securities litigation cannot be avoided. However, in Colorado and elsewhere, arbitration is becoming the more common method of tackling securities disputes.