Morgan Stanley Wins $107K in Promissory Note Arbitration
Claimant: Morgan Stanley Smith Barney, LLC & Morgan Stanley Smith Barney FA Notes Holdings, LLC
Respondent: Steven Victor Kajala
Nature of Dispute: Member and Non-Member vs. Associated Person
Overview of Allegations: Morgan Stanley alleged that Kajala breached the terms of three promissory notes, and alleged that the balances became due upon the termination of his employment with Morgan Stanley on August 14, 2015.
Damages Requested: Morgan Stanley requested $89,864 in compensatory damages, pre and post-award interest, costs, expenses, attorneys’ fees and any further relief the Arbitrator deems appropriate.
Result: The Arbitrator determined that Kajala is liable to pay Morgan Stanley $25,629 in compensatory damages and $1,401 in accrued interest for the first note, $14,625 in compensatory damages and $780 in accrued interest for the second note, $49,610 in compensatory damages and $2,982 in accrued interest for the third notes.
The Arbitrator also ruled that Kajala is responsible for reimbursing Morgan Stanley $3,000 for costs, $9,000 for attorneys’ fees and shall pay post-judgment interest on all amounts at the rate of 9% per year.