FINRA Arbitration motions: Sever, Consolidate, & Amend

Prehearing Conference

FINRA Arbitration motions: Sever, Consolidate, & Amend

The following motions can be made within a FINRA Arbitration.  These particular motions involve modifying the original claim.

Motion to Amend a Claim

FINRA Rule 12309 provides that parties may amend their pleadings, including adjustments to their damage requests, up until the time FINRA staff appoints a panel. Once a panel is appointed, parties may only amend their pleadings if the panel grants a motion to amend the pleading. However, once the ranked arbitrator lists are due to FINRA, no party may amend a pleading to add a new party to the arbitration until a panel has been appointed and the panel grants a motion to add the party.

Motion to Consolidate Claims

FINRA Rule 12312 provides that one or more claimants may join multiple claims together in the same arbitration if the claims contain common questions of law or fact and:

  • the claims assert any right to relief jointly and severally; or
  • the claims arise out of the same transaction or occurrence, or series of transactions or occurrences.

FINRA Rule 12313 provides that one or more parties may name one or more respondents in the same arbitration if the claims contain any questions of law or fact common to all respondents and:

  • the claims are asserted against the respondents jointly and severally; or
  • the claims arise out of the same transaction or occurrence, or series of transactions or occurrences.

Before the panel’s appointment, FINRA staff may consider a party’s motion to consolidate claims. After its appointment, the Arbitration panel may reconsider the decision to consolidate the claims based on a party’s motion.

Motion to Sever Claims

Under FINRA Rules 12312 and 12313, parties may request that a claim be heard separately from another claim. Arbitrators will refer to the FINRA standards to Consolidate Claims before determining whether the claims can be appropriately consolidated.

Ken Strongman, MediatorAbout the Author: Ken Strongman (www.kpstrongman.com) has years of experience and a growing national reputation as a mediator and arbitrator.  He has successfully resolved more than a thousand disputes in the fields of construction defects, real estate, intellectual property, and employment.  He is also a Mediator and Arbitrator for FINRA.

© 2020 Ken Strongman. All Rights Reserved. Please do not copy or repost without permission.

By Ken Strongman

As a full-time, Mediator and Arbitrator since 2004, Ken’s overarching purpose is to leave the disputing parties in a better position than when they came to him. Ken works to unite people into purposeful and unified directions, actions, and efforts by getting under surface appearances. By doing so, he facilitates the parties in developing their unique solutions. Disputes addressed include business, securities, construction defects, real estate, intellectual property, employment, environment, energy, and trusts & estates.