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The Fourth Appellate District has overturned a Superior Court decision that denied two San Diego brokers a judgment of almost $5 million.

In 2008, Wall Street's Morgan Stanley had recruited Todd Vitale and John Paladino from UBS Securities. According to the court, the firm had promised that Vitale would become a branch manager within a year and Paladino would take over Vitale's book of brokerage business. But neither happened and the pair sued for breach of oral and written contract.

Superior Court ruled against the two brokers, agreeing with Morgan Stanley that one of the arbitrators had not revealed conflicts of interest. Judge Richard Huffman, writing for the appellate court, agreed that an arbitrator did not make certain disclosures, but that the arbitrator's impartiality couldn't be questioned. Huffman noted that Morgan Stanley had asked the same arbitrator to sit on three other arbitration panels.

A spokesperson for Morgan Stanley told the publication Investment News that the firm disagrees with the appellate court's judgment and is considering how to proceed.

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Comments

Burwell July 4, 2014 @ 9:46 a.m.

It was that horrible judge, Lisa Guy-Schall, that overturned the arbitrators decision that awarded $5 million to Vitale and Paladino. Guy-Schall was arrested drunk while driving the wrong direction on the freeway. Now the Appeals Court has confirmed, as have many appeals courts, what a horrible judge Guy-Schall is. She sure ain't no Oliver Wendell Holmes.

http://articles.chicagotribune.com/2012-09-18/business/sns-rt-us-morganstanley-courtbre88h1bb-20120918_1_arbitration-court-case-disclosure-rules

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Don Bauder July 4, 2014 @ 10:41 a.m.

Burwell: The Chicago Tribune story adds details. I do not know of Guy-Schall's driving record. Best, Don Baude

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Visduh July 5, 2014 @ 7:51 a.m.

She stood for reelection in June, and even though opposed, was reelected. The Mill endorsed her, in spite of her driving problems.

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Don Bauder July 5, 2014 @ 2:15 p.m.

Visduh: The U-T will endorse any judge who fights for the rights and enhances the wealth of the top 1 percent. Best, Don Bauder

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jnojr July 7, 2014 @ 1:55 p.m.

Always get promises in writing...

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Don Bauder July 7, 2014 @ 4:15 p.m.

jnojr: Yes, but they sued for breach of oral AND written contract. Best, Don Bauder

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