District Judge Gregory Woods
The 2013 promissory note under which registered representative Bogar borrowed $143,199 from employer broker-dealer Ameriprise provided that the unpaid balance of the principal sum, plus accrued interest, was due and payable when Bogar’s employment ended. When Bogar’s employment ended in 2015, Ameriprise demanded payment of its loan’s outstanding balance. Bogar did not repay the loan, and after arbitration before FINRA—at which Bogar did not appear—Ameriprise was awarded $107,819 in damages, interest at 1.47 percent per annum from Dec. 7, 2015, until the award’s payment, and $2,429 in legal fees and costs. Denying Bogar’s Sept. 16, 2016, vacatur motion, the court granted Ameriprise’s Nov. 29, 2016, motion to confirm the arbitration award. In denying vacatur under 9 USC §10(a)(4) the court rejected Bogar’s claim that the arbitrator exceeded his authority by considering Ameriprise’s unjust enrichment and conversion claims in addition to its direct contract breach claim, contrary to FINRA Rule 13806. Rule 13806 applies to arbitrations involving a member’s claim that an associated person “failed to pay money owed on a promissory note.” That was precisely the nature of the dispute on which the subject award was based.