Arbitration to recover $500 in overcharges?

[B2M]

What is the name of your state? California.

My family had two householded brokerage accounts and qualified for a discounted annual fee on the second account. The broker never told us that we were entitled to the discounted fee and we were always charged the full amount on both accounts. Now that we've discovered that we were overcharged, the brokerage won't return the overage - about $500. The brokerage agreement included an arbitration clause which I had signed. How complicated would this be to pursue? And is it worth my time?

Thank you.What is the name of your state?

[dcatz]

Even if you have indisputable evidence and a rock-solid case, you're probably better off just moving your business elsewhere.

The question about it being worth your time is sensible. It probably isn't.

Does the arbitration clause provide for recovery of attorneys' fees - you're likely to need one, even with a great case.

Will arbitration be through AAA or is another provider specified? In either event, it's likely that you'll each be required to post one-half of the minimum projected costs in advance. That sum is going to be substantially greater than $500, even if it's recoverable by the prevailing party.

[Rexlan]

Everything dcatz has said is correct; however, I have actually found the arbitration to be simple if you choose to keep it that way. There may not even be a hearing needed since it appears to be a contract interpretation.

I would opt for it and simply present the contract with little argument other than the explanation you have given here. Moving it into the arbitration procedurally will be the only difficult portion if it is not clearly defined in the contract.

My hunch is, if you in fact have a rock-solid case, is that as soon as you start the process they will give you the refund. I would also move my account/s irrespectively. I would not want to continue to deal with them at this point.

[dcatz]

I don’t think Rexlan and I are in fundamental disagreement, which only highlights the importance of reading what you signed and asking questions that you asked here to sources that can provide real answers.

Arbitration is a mini-trial, with someone in lieu of a judge rendering a decision. My response had little or nothing to do with the merits of your claim. It assumes that you agreed to an industry-chosen provider, that the provider has arbitration rules (such as paying ½ in advance, completing discovery in X days or, alternatively, having no right to discovery, submitting an arbitration brief etc. etc.). It also assumes that the brokerage house has a law firm on retainer with the ability to turn a 20 min. dispute resolution into a 2-week affair.

My response was simply a pragmatic assessment of what you’re probably stepping into. It was based on speculation, and the true answers can’t be found here. It’s a $500 claim. How much is your time worth?