Glossary of Arbitration Terms

Answer - A respondent's written reply to a claim.

 

Arbitration/Counsel or Arbitration Administrator - The person at the sponsoring organization who handles administrative matters in arbitration proceedings.

 

Arbitrator - A person chosen to decide disputes between parties.

 

Associated Person - An associated person is any person engaged in the investment banking or securities business who is directly or indirectly controlled by a FINRA member, whether or not they are registered or exempt from registration with FINRA. An associated person includes, but is not limited to, every sole proprietor, partner, officer, director, or branch manager of any FINRA member.

 

Award - The written determination of the arbitrator(s).

 

Claim - A claim for monetary or other relief.

 

Claimant - A person making a claim.

 

Counsel - An attorney who advises and represents a party in an arbitration.

 

Counterclaim - A claim against the claimant.

 

Cross-Claim - A claim by a respondent against a co-respondent previously named by the claimant.

 

Customer - A person or entity (not acting in the capacity of an associated person or member) that transacts business with any member firm and/or associated person.

 

Filing - Delivery to the Director of Arbitration of the statement of claim or other pleadings, to be kept on file as a matter of record and reference.

 

Injunctive Relief - An order by a court directing a party to act or refrain from acting in a certain manner, usually in the form of a temporary restraining order or preliminary injunction. Under Rule 13804, parties in intra-industry cases (no public party) may seek temporary injunctive relief from a court, but must simultaneously file a Statement of Claim for permanent injunctive relief and other forms of relief in arbitration. If a court issues a temporary injunctive order, the arbitration on the underlying claim will be expedited. Rule 13804(b)(6) provides that in such cases, the party requesting an temporary injunctive relief in court must pay a $2,500 non-refundable surcharge.

 

Member Firm - The term “member firm” means any partnership, corporation or other legal entity admitted to membership in FINRA. The term "member firm" may include firms that are not members of FINRA. For more information view the FINRA Dispute Resolution list of other exchanges using FINRA's forum Web Page.

 

Panel - The arbitrator(s) who decide(s) a dispute.

 

Party - A person or broker/dealer making or responding to a claim in an arbitration proceeding.

 

Pleadings - The claim, answer, counterclaim, and/or third-party claim and/or cross-claim filed in an arbitration.

 

Respondent - The person against whom a claim is made.

 

Service - Delivery of the statement of claim or other pleadings to those parties named in the arbitration.

 

Subpoena - An order for a witness to appear at a particular time and place to testify. A subpoena for production of documents in the control of the witness is called a "subpoena duces tecum".

 

Third-Party Claim - A claim by the respondent against a party not already named in the proceeding.

 

Unspecified Damages - A claim for an unknown or undisclosed amount of money or other relief.