Ex-Smith Barney exec wins hefty claim against Merrill

Merrill Lynch's broker-dealer subsidiary has lost a $3.94 million arbitration claim by a former top real estate banker who left the firm last year.

Merrill Lynch’s broker-dealer subsidiary was ordered to pay a $3.94 million arbitration claim to a former top real estate banker who left the firm last year.
Mark R. Patterson, who joined Merrill Lynch & Co. Inc. from rival Smith Barney in 2005, sued Merrill last year for $15 million in damages, alleging breach of contract and breach of covenant of good faith and fair dealing, according to the Financial Industry Regulatory Authority Inc. award. The claim specifically named Merrill Lynch Pierce Fenner & Smith, the unit that acts as an umbrella for Merrill broker-dealers.
As is typical, the award did not give specific reasons for the three arbitrators’ decision, nor did it give details of the conflict between Mr. Patterson and Merrill.
Mr. Patterson led a team of seven bankers when he left Smith Barney five years ago, according to published reports.
The arbitrators decided to award Mr. Patterson $3.67 million in compensatory damages and $276,000 in interest.
“There was disagreement about the amount due on his departure, and the arbitration process has resolved that disagreement,” said William Halldin, a Merrill Lynch spokesman.