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Investor wins judgment

Published Oct. 16, 2005

A New York Stock Exchange arbitration panel awarded Dr. W. Brent Young, a Pasco County physician, a $60,000 judgment against E.F. Hutton & Co., now Shearson Lehman Hutton Inc., supporting his claim that the firm's Clearwater office mishandled his account in 1986 and 1987. The award reflected what Young's account would have earned if it had been well-managed, a measurement that an increasing number of lawyers use in cases involving unhappy brokerage clients.

Young said Hutton broker David A. Glover put him into unsuitable investments and traded excessively in his account to generate large commissions. He also said branch manager Harold Hill knew what Glover was doing and was negligent in his supervision.

William L. Lyman, a Clearwater attorney who represented Young, said Young's actual damages were $34,527, but that based on what a well-managed account would have earned, Young's real loss was about $62,000.

The panel of arbitrators ordered the firm to pay Young $59,800 and said Hill and Glover should pay Young $100 each. In addition, the company, Hill and Glover were ordered to pay the $6,000 cost of the arbitration proceedings. Requests for punitive damages and attorney's fees were denied. Shearson officials declined to comment.

Arbitration is a substitute for court proceedings.