2012 Dispute Resolution Statistics

Summary Arbitration Statistics December 2012

New Case Filings through December:

2010 5,680
2011 4,729
2012 4,299
2012 vs 2011 -9%

Number of Cases Closed through December:

2010 6,241
2011 6,099
2012 4,877
2012 vs 2011 -20%

Turnaround Time1 (in months) through December:

  Overall Hearing Decisions Simplified Decisions
2010 12.7 15.0 6.3
2011 14.1 15.7 6.4
2012 14.4 16.6 7.1
2012 vs 2011 2% 6% 11%

1 The timing of the arbitration process is heavily influenced by Code of Arbitration Procedures time limits, the parties, and the panel.

Summary Mediation Statistics December 2012

Mediation Cases in Agreement through December:

2010 823
2011 659
2012 572
2012 vs 2011 -13%

Mediation Cases Closed through December:

  Cases Closed Percent Settled
2010 954 81%
2011 783 80%
2012 776 79%
2012 vs 2011 -1%  

Turnaround Time (in Days) through December:

2010 99
2011 98
2012 100
2012 vs 2011 2%

 

Arbitration Cases Filed

Year Cases
1997 5,997
1998 4,938
1999 5,608
2000 5,558
2001 6,915
2002 7,704
2003 8,945
2004 8,201
2005 6,074
2006 4,614
2007 3,238
2008 4,982
2009 7,137
2010 5,680
2011 4,729
2012 4,299

 

Arbitration Cases Served by Controversy Involved

Type of Controversy1 2008 2009 2010 2011 2012
Margin Calls 64 128 83 80 68
Churning 212 306 270 236 245
Unauthorized Trading 248 478 397 288 313
Failure to Supervise 1,029 2,691 2,372 2,007 1,657
Negligence 1,602 3,405 2,698 2,249 1,941
Omission of Facts 1,201 2,453 1,941 1,603 1,355
Breach of Contract 1,658 2,802 2,184 1,904 1,573
Breach of Fiduciary Duty 2,836 4,206 3,162 2,589 2,216
Unsuitability 1,181 2,473 1,974 1,619 1,354
Misrepresentation 2,005 3,408 2,601 2,102 1,769

1 Each case can be coded to contain multiple controversy types. Therefore the columns in this table cannot be totaled to determine the number of cases served in a year.

Security Types Involved in Arbitration Cases

Type of Security1 2008 2009 2010 2011 2012
Corporate Bonds 163 373 239 179 124
Certificates of Deposit 31 71 41 31 31
Mutual Funds 1,069 1,556 863 652 392
Options 149 275 161 161 151
Common Stock 773 1,367 862 838 736
Limited Partnerships 33 73 80 104 70
Annuities 236 300 208 172 147
Preferred Stock 115 481 232 197 112
Variable Annuities 47 123 279 212 220
Derivative Securities 801 607 228 54 8
Auction Rate Securities 299 276 149 80 58

1 Each case can be coded to contain multiple security types. Therefore the columns in this table cannot be totaled to determine the number of cases served in a year.

Arbitration Cases Closed by Year

Year Cases
1997 5,880
1998 5,484
1999 4,767
2000 5,473
2001 5,582
2002 5,957
2003 7,278
2004 9,209
2005 9,043
2006 7,212
2007 5,345
2008 3,757
2009 4,571
2010 6,241
2011 6,099
2012 4,877

How Arbitration Cases Close

Cases Decided by Arbitrators 2008 (% of Cases) 2009 (% of Cases) 2010 (% of Cases) 2011 (% of Cases) 2012 (% of Cases)
After Hearing 721 (19%) 839 (18%) 1,143 (19%) 1,065 (18%) 895 (19%)
After Review of Documents 176 (5%) 310 (7%) 258 (4%) 211 (3%) 182 (4%)
Total 897 (24%) 1,149 (25%) 1,401 (23%) 1,276 (21%) 1,077 (22%)
Cases Resolved by Other Means 2008 (% of Cases) 2009 (% of Cases) 2010 (% of Cases) 2011 (% of Cases) 2012 (% of Cases)
Direct Settlement by Parties 1,779 (47%) 2,170 (47%) 3,139 (51%) 2,998 (50%) 2,414 (50%)
Settled Via Mediation 384 (10%) 322 (7%) 590 (10%) 594 (10%) 502 (10%)
Withdrawn 421 (11%) 598 (13%) 621 (10%) 708 (12%) 428 (9%)
All Others1 279 (7%) 358 (8%) 377 (6%) 464 (8%) 394 (8%)
Total 2,863 (76%) 3,448 (75%) 4,727 (77%) 4,764 (79%) 3,738 (78%)

1 All Other reasons for closed includes cases closed by: Stipulated Award, Bankruptcy of Critical Party; Uncured Deficient Claim; Forum Denied; Stayed by Court Action, etc. Note cases counted as closed in this report do not include those cases that closed and were then reopened.

Results of Customer Claimant Arbitration Award Cases

Year Decided All Customer Claimant Cases Decided (Hearings & Paper) Percentage Decided of All Customer Claimant Cases Closed Percentage (and Number) of Cases Where Customer Awarded Damages1
2007 671 18% 37% (245 cases)
2008 474 20% 42% (199 cases)
2009 669 21% 45% (304 cases)
2010 882 20% 47% (415 cases)
2011 670 16% 44% (297 cases)
2012 570 18% 45% (255 cases)

1 Percentage of customer claimant award cases reflects only instances in which investors as claimants recovered monetary damages or non-monetary relief.

Comparison of Results of All-Public Panels and Majority Public Panels in Customer Claimant Cases

Year Decided1 Cases Decided by All-Public Panels2 Percentage (and Number) of Cases Decided by 3 Public Arbitrators Where Customer Awarded Damages Cases Decided by Majority-Public Panels3 Percentage (and Number) of Cases Decided by 2 Public Arbitrators and 1 Non-Public Arbitrator Where Customer Awarded Damages
2011 13 54% (7 cases) 17 18% (3 cases)
2012 99 49% (49 cases) 111 33% (37 cases)

1 An all-public option for arbitration panels was implemented on Feb 1, 2011. Statistics reflect cases heard with awards from that point forward.

2 Three public arbitrators.

3 Two public arbitrators and one non-public arbitrator.

Arbitrators by Type

This report lists all available arbitrators by Non-Public and Public Type.

Arbitrator Type Total
Public 3,589
Non-Public 2,870
Total 6,459