NASD Panel Slams UBS PaineWebber for Sexual Harassment and Abuse of Arbitration Process, Says Attorney Daniel R. Solin.Business Editors PHOENIX--(BUSINESS WIRE)--Sept. 16, 2003 An NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). panel has found the Scottsdale, Arizona office of UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System PaineWebber liable for sexual harassment sexual harassment, in law, verbal or physical behavior of a sexual nature, aimed at a particular person or group of people, especially in the workplace or in academic or other institutional settings, that is actionable, as in tort or under equal-opportunity statutes. of a former broker, Sharon Knecht, according to her New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. attorney, Daniel R. Solin. Ms. Knecht had alleged that she was the victim of sexually harassing conduct by her branch manager, Gregory Glenn, and that she was subjected to a hostile work environment A hostile work environment exists when an employee experiences workplace harassment and fears going to work because of the offensive, intimidating, or oppressive atmosphere generated by the harasser. at the branch where she was employed. The tribunal awarded Ms. Knecht $215,000, which included compensation for her damages, attorney's fees and a monetary award for discovery sanctions. The Tribunal also denied PaineWebber's counterclaim for $82,000, representing the balance of a loan it had made to Ms. Knecht when she joined the branch. The tribunal explained its assessment of attorney's fees and its levy of a sanction, as follows: "The record reflects a pattern of abuse of discovery unusual in other arbitrations experienced by the members of the panel. In addition, the (PaineWebber) abused the arbitration process both by extending the hearings with redundant testimony, extended repetitive cross-examination of (Knecht) and an extensive barrage of motions, all in an apparent attempt to exhaust (Knecht's) ability to prosecute her claim. The combination of these actions caused the panel, consisting of three lawyers with more than eighty years of combined experience, to conclude that the defense provided on the behalf of (PaineWebber) constituted an abuse of the arbitration process beyond the boundaries of the zealous representation required by the canons of ethics Rules that govern the Practice of Law. The canons of ethics have been replaced by the code of Professional Responsibility which sets forth the standards of professional conduct prescribed for lawyers in their professional dealings. ." Mr. Solin, stated: "We view this decision as a complete vindication of Ms. Knecht. The comments of the tribunal concerning PaineWebber's abuse of the arbitration process are highly unusual in my experience." |
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