Understanding Awards [Securities Dispute Resolution]: Key Insights and Implications
Definition & Meaning
An award in the context of securities dispute resolution refers to the formal decision made by a panel of arbitrators after they have reviewed the evidence and heard testimony from the involved parties. This decision is documented in a written format known as an "award." The award typically outlines which party prevailed and specifies any damages awarded. Awards are generally concise and may not include detailed reasoning to minimize the risk of being overturned if appealed.
Legal Use & context
Awards are primarily used in arbitration, a method for resolving disputes outside of court. This process is common in various legal areas, including securities, commercial contracts, and employment disputes. Users can often manage their arbitration cases using legal templates available through resources like US Legal Forms, which can help in drafting necessary documents and understanding procedural requirements.
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A financial advisor and a client enter arbitration over a disputed investment strategy. After hearing both sides, the arbitrators issue an award stating the advisor must pay the client $50,000 in damages for losses incurred due to negligence.
(Hypothetical example) In a dispute between two companies regarding a breach of contract, the arbitral panel awards one company $100,000 and orders the other to fulfill their contractual obligations.