A California appellate court has ordered Wells Fargo Advisors LLC to pay $915,000 in legal fees to
Stifel Nicolaus & Co. Inc. and
Stifel broker Chris Nielsen.
Last year, an arbitration panel ordered Wells Fargo to pay the fees, which stemmed from an unsuccessful raiding claim that A.G. Edwards Inc. brought against him and
Stifel in 2007.
A number of A.G. Edwards brokers jumped ship in the wake of the 2007 acquisition of the firm by Wachovia Securities LLC. Wachovia was later acquired by Wells Fargo.
After its arbitration loss last year, Wells Fargo appealed the decision to the California Superior Court in San Francisco, arguing that the arbitrators refused to consider or didn't see some important evidence. The court upheld the arbitration ruling.
Wells Fargo appealed again.
But in a ruling Oct. 7, the appeals court rejected the firm's claim of prejudice by the arbitration panel.
“There is no doubt that A.G. Edwards was given a full and fair opportunity to present its claim,” the court's decision said.
It wasn't immediately clear whether Wells Fargo can appeal a third time.
Lawyers who represent Mr. Nielsen and
Stifel and representatives for Wells Fargo weren't immediately available.
“I think [Wells Fargo was] grasping at straws” in appealing the case, Mr. Nielsen said.
SEVERAL DISPUTES
Mr. Nielsen, based in Grass Valley, Calif., left Wachovia in October 2007 with several A.G. Edwards brokers to set up shop for Stifel.
In its raiding complaint, A.G. Edwards said the brokers produced $1.6 million and had $220 million in client assets.
The dispute was one of several arising between A.G. Edwards and Stifel in the wake of the Wachovia takeover.
“The arbitrators in this case got it right and delivered a strong message,” said Stifel's attorney, Joe Dougherty, co-managing shareholder at Buchanan Ingersoll & Rooney PC. “Now two courts have agreed that the arbitrators' rulings should not be disturbed.”
Mr. Dougherty said that Wells Fargo could ask the California Supreme Court to review the case.
Wells Fargo spokesman Tony Mattera declined to comment.
Email Dan Jamieson at [email protected]
