Legal Question in Business Law in New York

I went to a brokerage house in New York with 2 old stock certificates wanting to know if they were valid so i could sell them...The broker there said one certificate was valid the other wasn't. He took the valid certificate and gave me a receipt and returned the invalid certificate to me..With that I opened an account and 4 week later sold the stock shares and deposited the money in my checking account ($482.00).. This was during Christmas time and I spent the money. Two weeks later the corporate risk department of the brokage house informed me that the certificate was not valid and I made an unsolicited sale.. They informed me if I didn't return the money it would go to collections and my credit could be ruined..Not wanting to risk my credit being affected.. I paid the money back ..but the cost me $1300 in total costs..I feel the brokerage house made an error and share some if not all of the responsiblity..I'd like to take them to small claims court to recoup my money the threats they made..Is this worthwhile or in other words do I have a case?


Asked on 7/10/10, 2:32 pm

1 Answer from Attorneys
Locksley Wade Law Office of Locksley O. Wade

You should double-check the service and sales agreement you have with this brokerage house. The standard practice in the industry is for such dispute can be addressed solely through binding private arbitration and not in a court of law.

Read more
Answered on 7/11/10, 5:32 am


Related Questions & Answers

More Business Law questions and answers in New York