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Arbitration Details

CITIGROUP GLOBAL MARKETS INC NFA ID: 0002026

An NFA Arbitration claim is a futures or forex related dispute involving a customer and an NFA Member (or employee) or Associate. It is not a regulatory action.
NFA only discloses information concerning arbitration cases that have been decided by an arbitration panel. NFA does not release the names of parties who have settled their parts in the cases. Furthermore, NFA does not report or release information on cases that closed before January 1, 1990, cases that are still pending, or cases that were settled, withdrawn or rejected. Therefore, the number of NFA Arbitration Decisions reflects the total number of claims filed in NFA Arbitration that were decided by an arbitration panel. These decisions may have been decided in favor of the Claimant or Respondent.
Effective January 1, 2000, NFA discloses the names of persons who represent parties in NFA customer arbitration proceedings if the matters were decided by an arbitration panel. As of the same date, customers may no longer ask NFA to keep their identities confidential.

Case Summary
 Case No.FiledDecision DateProduct
 97ARB0001501/21/199704/01/1998Futures (Domestic Exchange)
Summary of Parties
 CustomersMembersRepresentatives
• JAMES L DUTTON•  CITIGROUP GLOBAL MARKETS INC
• RANDALL W HUNT
• JOSEPH DEHNER
• WILLIAM HOHAUSER
Proceeding Details
 Panel TypeNumber of ArbitratorsProceeding TypeLocation (City, State)
 NON-MEMBER3HEARINGDETROIT, MI
Summary of Awards and Claims
 Type Claim Amount Counter Claim 3rd Party Claim Cross Claim
 
Compensatory
Punitive
Treble
Interest
Attorney Fees
Costs
 Claim Award
$214,000.00$11,160.00
$0.00$0.00
$0.00$0.00
NA$0.00
NA$0.00
NA$1,500.00
 Claim Award
$0.00$0.00
$0.00$0.00
$0.00$0.00
NA$0.00
NA$0.00
NA$0.00
 Claim Award
$0.00$0.00
$0.00$0.00
$0.00$0.00
NA$0.00
NA$0.00
NA$0.00
 Claim Award
$0.00$0.00
$0.00$0.00
$0.00$0.00
NA$0.00
NA$0.00
NA$0.00
Summary of Issues
A. CLAIMANT'S CAUSES OF ACTION: 1. VIOLATIONS OF NFA COMPLIANCE RULES 2-2, 2-4, 2-8, 2-29 AND 2-30 2. UNSUITABLE RECOMMENDATIONS 3. MISREPRESENTATION 4. NEGLIGENT ADVICE 5. BREACH OF FIDUCIARY DUTY 6. UNAUTHORIZED TRADING 7. FAILURE TO TIMELY EXECUTE TRADES AND 8. NEGLIGENT SUPERVISION.

B. RESPONDENTS' DEFENSES: 1. NO VIOLATIONS OF ANY NFA COMPLIANCE RULES, CERTAINLY NONE WHICH PROXIMATELY CAUSED ANY DAMAGE TO CLAIMANT; 2. PURSUANT TO THE COMMODITY EXCHANGE ACT, THERE IS NO RECOGNIZED CAUSE OF ACTION FOR "UNSUITABLE" RECOMMENDATIONS; 3. RESPONDENTS MADE NO MISREPRESENTATIONS OF ANY MATERIAL FACT TO CLAIMANT; 4. RESPONDENTS DID NOT ENGAGE IN ANY UNAUTHORIZED TRADING AT ANY TIME; 5. RESPONDENTS DID NOT GIVE ANY "NEGLIGENT ADVICE," IF THAT REPRE- SENTS A CAUSE OF ACTION; 6. RESPONDENTS DID NOT BREACH ANY ALLEGED FIDUCIARY DUTY PURPORTED- LY OWED TO CLAIMANT; AND 7. SMITH BARNEY DID NOT FAIL TO SUPERVISE RANDALL W. HUNT, WHICH IS ALSO NOT RECOGNIZED AS A CUASE OF ACTION.

THE CLAIMANT FAILED TO SUSTAIN THE BALANCE OF HIS CLAIMS AGAINST THE RESPONDENTS AND THEY ARE HEREBY DISMISSED, WITH PREJUDICE. INTEREST SHALL BE CALCULATED ON $11,160 AT A RATE OF TEN PERCENT (10%) PER ANNUM FROM AND INCLUDING AUGUST 9, 1996 UNTIL THE DATE OF PAYMENT. THE COST AWARD TO MR. DUTTON REPRESENTS A REALLOCATION OF THE FILING AND HEARING FEES PAID TO NFA BY BOTH SIDES SO THAT THE COST OF THE ARBITRATION IS BORNE EQUALLY. THE PARTIES SHALL BEAR THEIR RESPECTIVE ATTORNEYS' FEES AND COSTS EXCEPT AS PROVIDED FOR ABOVE. SMITH BARNEY AND RANDALL W. HUNT ARE JOINTLY AND SEVERALLY LIABLE FOR THE TOTAL AMOUNT OF THE AWARD.

 
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